Theh CEO of Austria’s state owned OMV, Gerhard Roiss, resigned Wednesday as the company overhauls its management and operations after three straight years of falling profits.
Roiss, 62, will stay on with OMV until June 30, 2015. He was appointed CEO in 2011 and has worked in a variety of positions at the company since 2004.
The reasons behind his resignation were not disclosed.
The company is currently searching for a new CEO.
Roiss’s resignation follows the exit of OMV’s exploration and production chief Jaap Huijskes in September.
Austrian chancellor Werner Faymann said the company has mishandled the management shakeup.
“Chaotic conditions aren’t helping anybody. There must be order,” Faymann said.
Government officials are also unhappy with the contract termination fees that will have to be paid out to Rossi.
“This was handled unprofessionally,” Austria’s finance minister Hans Joerg Schelling said.
Officials from the OeIAG, the state agency that manages the government’s stake in OMV, said the company is facing multiple challenges as the long term strategy it devised in 2011 fails to meet the current demands of the market.
OMV’s shares have fallen by more than 30 percent this year.
In 2013, the company’s operating profit fell for the third straight year.
As part of the restructuring plan, OMV will integrate its gas and power business into its refining and marketing businesses.
The newly merged groups will operate as OMV’s downstream segment and will be headed by executive board member Manfred Leitner as of January 1.
The company is also winding down its involvement in unstable regions such as Libya and Yemen and turning its exploration efforts to the North Sea and the Black Sea, Bloomberg said.