What are OMV's updated 2026 European ethylene and propylene indicator margin forecasts, and how do they compare to previous guidance?

OMV has upgraded its 2026 European ethylene indicator margin forecast to 'above €600/metric ton', up from its prior outlook of 'above €550/mt'; its propylene indicator margin forecast is now 'above €500/mt', revised upward from 'above €420/mt'. The company reported that its ethylene margin averaged €569/mt in 2025 and rose to €629/mt in the first half of 2026, while its propylene margin increased from €445/mt in 2025 to €506/mt in the first half of 2026. In Q2 2026 alone, OMV’s European ethylene and propylene indicator margins reached €813/mt and €704/mt respectively — representing year-on-year increases of 38% and 51%.

What were the key drivers behind OMV’s more than doubled chemical segment earnings in Q2 2026?

OMV’s chemicals segment clean operating earnings surged to €429 million in Q2 2026 — more than double the €200 million in Q2 2025 and up from €245 million in Q1 2026 — driven primarily by significantly wider olefin and polyolefin margins due to soaring petrochemical prices, record-high contract price increases at the start of the quarter (attributed to supply constraints from Middle East conflict), and additional support from declining naphtha prices later in the quarter as tensions eased; earnings were further boosted by a strong contribution from Borouge International, the newly launched polyolefins joint venture between OMV and Abu Dhabi’s XRG PJSC, and by improved steam cracker utilization in Europe, which rose 11 percentage points year-on-year to 77% in Q2, led by higher output at the Burghausen cracker in Germany.

OMV Hikes Olefin Margins Outlook as Q2 Price Surge Boosts Chemical Earnings

Aug 1, 2026

OMV AG raised its 2026 European olefin margin forecasts after Q2 chemical earnings doubled due to record-high prices caused by Middle East supply constraints. Ethylene margins are now expected above €600/mt and propylene above €500/mt in 2026.

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