July 8 (Reuters) - Austrian energy group OMV

expects the Borouge-Borealis merger to have a positive effect of

120 million euros ($140.8 million) on its second-quarter

operating result before special effects, it said as part of a

trading update on Tuesday.

After nearly two years of negotiations, Abu Dhabi National

Oil Company (ADNOC) and OMV agreed in March to merge their

polyolefin businesses to create a chemicals powerhouse, Borouge

Group International, with a $60 billion enterprise value.

OMV also said it expected a 400 million euro hit on its

adjusted operating cash flow from higher taxes in Romania and

Norway compared to the first quarter.

"In the second quarter of 2025, net working capital effects

are currently expected to be positive amounting to a

low-triple-digit million euro amount," it added.

OMV recorded lower average energy prices in the second

quarter, as average natural gas prices fell by 23%

quarter-on-quarter and average realized crude oil price declined

9% to $66.2 per barrel, it said.

($1 = 0.8521 euros)