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20,000 reasons
why we’re excited
about tomorrow.
OMV Aktiengesellschaft
Trabrennstraße 6–8
1020 Vienna
Austria
Tel. + 43 1 40440-0
www.omv.com
www.omv.com/socialmedia
Annual Report 2019
At a Glance
Five-year summary
Sales revenues 1
Operating Result
Profit before tax
Taxes on income and profit
Net income for the year
Net income attributable to stockholders of the parent
Clean CCS Operating Result 2
Clean CCS net income 2
Clean CCS net income attributable to stockholders of
the parent 2
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
2019
23,461
3,582
3,453
(1,306)
2,147
1,678
3,536
2,121
2018
22,930
3,524
3,298
(1,305)
1,993
1,438
3,646
2,108
2017
20,222
1,732
1,486
(634)
853
435
2,958
2,035
2016
19,260
(32)
(230)
47
(183)
(403)
1,535
1,230
2015
22,527
(1,661)
(1,909)
654
(1,255)
(1,100)
1,737
1,355
in EUR mn
1,624
1,594
1,624
995
1,148
Balance sheet total
Equity
Net debt
Average capital employed
Cash flow from operating activities
Capital expenditure
Organic capital expenditure 3
Free cash flow
Free cash flow after dividends
Net Operating Profit After Tax (NOPAT)
Clean CCS NOPAT 2
Return On Average Capital Employed (ROACE)
Clean CCS ROACE 2
Return On Equity (ROE)
Equity ratio
Gearing ratio
Earnings Per Share (EPS)
Clean CCS EPS 2
Cash flow per share 4
Dividend Per Share (DPS) 5
Payout ratio
Employees as of December 31
Production cost 6
Production
Proved reserves
Total refined product sales
Natural gas sales volumes
Lost-Time Injury Rate (LTIR)
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
in %
in %
in %
in %
in EUR
in EUR
in EUR
in EUR
in %
in USD/boe
in kboe/d
in mn boe
in mn t
in TWh
in mn hours
worked
40,375
16,863
4,686
19,923
4,056
4,916
2,251
(583)
(1,441)
2,230
2,204
11
11
13
42
28
5.14
4.97
12.41
2.00
39
19,845
6.61
487
1,332
21
137
36,961
15,342
2,014
16,850
31,576
14,334
2,005
15,550
32,112
13,925
2,969
17,943
32,664
14,298
4,038
19,972
4,396
3,676
1,893
1,043
263
2,097
2,196
12
13
14
42
13
4.40
4.88
13.45
1.75
40
20,231
7.01
427
1,270
20
114
3,448
3,376
1,636
1,681
1,013
987
2,169
6
14
6
45
14
1.33
4.97
10.56
1.50
113
20,721
8.79
348
1,146
24
113
2,878
1,878
1,868
1,081
615
(88)
1,325
2,834
2,769
2,749
(39)
(569)
(1,119)
1,522
0
7
(1)
43
21
(6)
8
(9)
44
28
(1.24)
3.05
8.82
1.20
n.m.
22,544
(3.37)
3.52
8.68
1.00
n.m.
24,124
10.58
311
1,030
31
109
13.24
303
1,028
30
110
0.34
0.30
0.34
0.40
0.27
1 Sales excluding petroleum excise tax
2 Adjusted for special items. Clean CCS figures exclude inventory holding gains/losses (CCS effects) resulting from the fuels of refineries and OMV Petrol Ofisi.
3 Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure excluding acquisitions and contin-
gent considerations.
4 Cash flow from operating activities
5 2019: as proposed by the Executive Board and confirmed by the Supervisory Board, subject to confirmation by the Annual General Meeting 2020
6 In 2016, the reported production cost was USD 11.59/boe; effective January 1, 2017, production cost excludes administrative expenses and selling and distribu-
tion costs; the 2016 production cost figure of USD 10.58/boe presented in the table has been calculated based on the new definition for future comparability.
Fields of Activity
Upstream
OMV Upstream explores for and produces oil and gas in its
five core regions of Central and Eastern Europe, the Middle
East and Africa, the North Sea, Russia, and Asia-Pacific. In
2019, daily production was 487 kboe/d (equal to 177.9 mn
boe). While gas output accounted for 57% of total produc-
tion, oil and NGL flows made up 43%. At year-end 2019,
proven reserves amounted to 1.33 bn boe.
Central and
Eastern Europe
Middle East
and Africa
North Sea
Russia
Asia-Pacific
Austria
Bulgaria
Kazakhstan
Romania
Norway
Kurdistan Region of Iraq
Libya
Tunisia
United Arab Emirates
Yemen
Australia
Malaysia1
New Zealand
Annual production per country in 2019
In kboe/d
Norway
87
Austria
24
Tunisia
4
Romania
145
Bulgaria
Exploration only
Kazakhstan
6
Russia
100
Kurdistan
Region of Iraq
9
United
Arab
Emirates
22
Libya
30
Yemen
5
Australia
Exploration only
Malaysia1
13
New Zealand
42
1 On January 31, 2019, OMV acquired a 50% interest in SapuraOMV Upstream Sdn. Bhd. In addition to the Malaysian footprint, SapuraOMV Upstream has exploration assets
in New Zealand, Australia, and Mexico.
Y
T
I
V
I
T
C
A
F
O
S
D
L
E
I
F
Downstream
Downstream Oil (incl. Petrochemicals) operates three refineries
in Austria, Germany, and Romania, and holds a 15% share in
ADNOC Refining and Trading JV. In 2019, the processing capacity
amounted to 24.9 mn t (equaling more than 500 kbbl/d).
Furthermore, OMV operates an international multibrand filling
station retail network and a high-quality commercial business.
Downstream Gas operates across the gas value chain from the
wellhead to the burner tip with a fully integrated gas business.1
It includes the Group’s power business activities, with one gas-
fired power plant in Romania.
Downstream
Oil & Gas market
Austria
Germany
Hungary
Romania
Downstream Oil market
Downstream Gas market
Belgium
Netherlands
Turkey
Bulgaria
Czech Republic
Moldova
Serbia
Slovakia
Slovenia
United Arab Emirates
Downstream presence in 2019
140 94 199
556
81
300
428
121
62
94
OMV
refineries
Number of fill-
ing stations
Equity
gas
Gas
storage
Gas
pipelines
Gas-fired
power plant
LNG
terminal
1 OMV’s gas business is operated in strict adherence to the applicable gas unbundling rules.
20,000 reasons why we’re
excited about tomorrow.
The thing that makes OMV stand out across continents
and oceans is best illustrated by the 20,000 people who
drove the company’s success in 2019. And each and every
one of them has a personal reason for being excited
about a bright future.
People who work in many corners of the globe,
sometimes in the most difficult conditions, to search
for precious resources, find, transport and refine them.
Whose dedication and ideas maintain our quality of life
and freedom of movement, day in, day out. Who work
on solutions that will give us the energy to safeguard
our future wellbeing at the same time as preserving our
planet. People who are proud of delivering the energy
for a better life – and being the energy for a better life.
We have invited some of them into the spotlight on the
following pages. We hope you will join us!
FINANCIAL CALENDAR
April 8, 2020
Trading Update Q1 2020
April 29, 2020
Results January– March 2020
July 8, 2020
Trading Update Q2 2020
July 29, 2020
Results January–June and Q2 2020
October 8, 2020
Trading Update Q3 2020
October 29, 2020
Results January– September and Q3 2020
This financial calendar represents only an
extract of the planned dates in 2020.
The complete financial calendar and confirmation
of the dates can be found at:
www.omv.com/financial-calendar
The HTML version of this annual report can be found here:
www.reports.omv.com/en/annual-report/2019
The PDF version of this annual report can be found here:
www.omv.com/annual-report-2019
2
Contents
20,000 REASONS WHY WE' RE EXCITED ABOUT TOMORROW
1 — TO OUR SHAREHOLDERS
Statement of the Chairman of the Executive Board
OMV Executive Board
Report of the Supervisory Board
OMV on the Capital Markets
2 — DIRECTORS’ REPORT
About OMV
Strategy
Sustainability
Health, Safety, Security, and Environment
Employees
OMV Group Business Year
Upstream
Downstream
Outlook
Risk Management
Other Information
3 — CONSOLIDATED CORPORATE GOVERNANCE REPORT
4 — CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
Auditor’s Report
Consolidated Income Statement for 2019
Consolidated Statement of Comprehensive Income for 2019
Consolidated Statement of Financial Position as of December 31, 2019
Consolidated Statement of Changes in Equity for 2019
Consolidated Statement of Cash Flows for 2019
Notes to the Consolidated Financial Statements
5 — FURTHER INFORMATION
Consolidated Report on the Payments Made to Governments
Abbreviations and Definitions
Contacts and Imprint
4
27
28
30
32
36
41
42
43
48
52
55
57
66
73
79
80
83
87
107
108
118
119
120
122
124
125
229
230
237
240
3
Sara Aldhaheri uses market and competition intelligence
to form the basis for OMV’s ongoing international growth.
“I’m excited about tomorrow
because our energy
knows no bounds.”
Overcoming boundaries, enhancing
performance: we have laid the framework for
success with our commitment in the growth
regions of Middle East/Africa, Russia, and Asia
Pacific. What‘s more, by going international
with our successful Downstream business
model, we have secured profitable growth
options for the future.
From drilling for gas in icy
Siberia to refining crude oil in
the deserts of Abu Dhabi – as
an oil and gas company that
is integrated along the entire
value chain, OMV is marching
towards a bright future. Our
well-balanced portfolio of
Upstream and Downstream
activities serves as a source
of strong cash flow, even in a
volatile market environment.
Vladislav Arekhov uses cutting-edge modelling tools
to forecast the flows of gas and water towards the wells
in the Siberian field of Yuzhno Russkoye.
“We are excited about tomorrow
because we‘re safeguarding
the energy supply from -50°
to +50° Celsius.”
Gabriele Omassi coordinates the OMV Downstream team
in Abu Dhabi, supporting ADNOC Refining in Ruwais as it
strives for operational improvements and further growth.
“I‘m excited about tomorrow
because we are resolutely
working on sustainable energy
solutions for the future.”
It‘s the footprint that points the way
ahead – and that’s why OMV has
founded the department New Energy
Solutions to develop solutions for a
world of lower emissions and reduced
CO2. To meet ambitious targets,
OMV is applying environmentally
sound production methods, circular
economies, and the production of
green methanol, for example.
Angelika Zartl-Klik works with a highly
qualified team on strategies, projects and
technologies for a low-carbon future at OMV.
“I’m excited about tomorrow
because our technology and
our know-how about mature
fields make us the partner of
choice worldwide.”
If you want to succeed, you have to dig deep:
OMV is among the best in the world when it
comes to using resources from mature fields
efficiently. For example, in the mature Matzen
field in Austria, we managed to increase the
production rate of wells to 55 percent by using
innovative technologies. This is practically
one-and-a-half times the industry average. This
know-how in smart oil recovery makes us an
attractive partner on the international stage.
“I’m excited about tomorrow
because our technology and
our know-how about mature
fields make us the partner of
choice worldwide.”
Reinhard Kurz has worked at
OMV for 47 years and manages
the test plants for oil production
in Gänserndorf.
Unlocking future potential: that’s
why OMV has increased its focus
on petrochemicals and is refining
valuable resources instead of
burning them. This creates
precursors for valuable products
we rely on every day like
medicines, automotive parts
or hi-fi devices. By shifting
our production focus to
petrochemicals, we are
safeguarding our competitive
positioning in the medium and
longer term as well as securing
sustainable growth.
Celine Whyte is one of around 475 trainees
per year who work at OMV and might well
shape tomorrow’s world of energy.
“I‘m excited about tomorrow
because petrochemicals hit
the right note.”
Fahad Arif, Bansri Raithatha, Leopold Lippert, and
Jose Maria Gonzales Rojas work with more than
80 colleagues from over 24 countries on maturing
resources into proven reserves. They make use
of their expertise in technology, business and
economics, geology and petrophysics everyday.
“We are excited about
tomorrow because our
growth also embraces
cultural diversity.”
It’s great when diversity becomes a matter
of course – it’s already a given with our
teams. Every employee has the chance to
explore inter national career opportunities.
And because strong cooperation requires
different approaches, OMV promotes personal
responsibility, individual development and
international collaboration.
“I’m excited about tomorrow
because I know that safety
is the top priority at OMV.”
Only a safe workplace is a good workplace:
OMV applies its HSSE strategy to prioritize
the health and safety of its employees. And
this has proven successful, with the severity
of incidents at work seeing a sharp decline
in 2019. And the tasks that safely buckled-up
experts have to do up in the air today will be
done by drones in the near future.
Isabella Hack upholds the highest safety standards
and ensures seamless production processes in
her role that includes regular inspections and
maintenance at the Schwechat Refinery.
“I’m excited about tomorrow
because our filling stations
will keep everyone moving
in the future.”
Michael Sattler coordinates
the development of business
models and strategic partner -
ships for new energy and
drive train solutions.
If you want to get off on the right foot
in the future, you’ll need a perfect
pitstop. That’s why we are turning
OMV filling stations into an all-round
hub for tomorrow’s road users. With a
comprehensive range of services and
energy for all current and future drive
technologies – from highly efficient
gasoline and diesel through to CNG,
LNG, electricity, and hydrogen.
Secure energy supply for Europe will only
be possible now and in the future with
gas: as a means of storage, as a partner
for renewables in electricity production,
and soon also as green methane. Gas will
keep the lights on even at night and when
the wind is still.
Wan-Yu Sheng is responsible for product development
in sales for the OMV Gas business as well advising on
renewable gas and managing the project portfolio.
“I’m excited about tomorrow
because we are facilitating the
energy transition with gas.”
“I’m excited about
tomorrow because
digitalization is making
us fit for the future.”
It’s good when digitalization and technological
innovation go hand in hand: that’s why we
are accelerating OMV’s digital transformation.
After all, that’s the only way to tap into every
opportunity for optimal results along the
entire value chain – from the efficient search
for valuable resources through to their
production, processing, refining and sale.
Roman Spitzer supports the development and
implementation of emerging digital technologies and
new ways of working in OMV’s Upstream business,
making it even more efficient and more secure.
“I’m excited about
tomorrow because more
female leaders are
a sign of strength.”
Tomorrow belongs to diversity: that’s why OMV’s
priorities are clear when it comes to building
talented and skilled teams for international and
inte grated growth. Our 2025 goals are corres-
pondingly ambitious: increasing the number of
women at manage ment level to 25 percent and
maintaining the percentage of managers with
international experience at 75 percent.
Amelia Rentzios is in charge of operations and maintenance
in Maui, New Zealand. Together with her strong team, she
secures the safe and reliable production and supply of gas
and conden sate to our customers.
26
TO OUR SHAREHOLDERS
27 – 40
28 — Statement of the Chairman of the Executive Board
30 — OMV Executive Board
32 — Report of the Supervisory Board
36 — OMV on the Capital Markets
OMV ANNUAL REPORT 2019 / STATEMENT OF THE CHAIRMAN OF THE EXECUTIVE BOARD
Dear Shareholders,
In the past financial year, OMV again demonstrated its strong profitability, generating the highest net
income in its history with a net income for the year of EUR 2.1 bn. And that was in an extremely challenging
market environment. The path there was difficult, but the formula is simple: We produced more and sold
more – while reducing costs. The foundation for this success is our strategy which we pursue consistently,
but above all the commitment and performance of the approximately 20,000 employees who work for
OMV around the globe.
Setting the course for the future
Whereas this report looks back, highlighting the events of the past financial year, I would also like to look
forward. In view of climate change, a serious challenge we all – politicians, the public, and enterprises –
face and for which we need to quickly develop solutions, I would like to directly address two issues. Will
the foundations for OMV’s business remain the same or will they change? Will we continue to be as success -
ful in the future as we are today? I am sure about the answer to one of these questions and convinced
about the other. For one, we can definitely assume that the conditions under which OMV does business
will change as a result of the energy transition. Fossil energy sources will play a different role in the future
than they do currently. Secondly, I am confident that OMV will actively leverage this changing environment
to our benefit. After all, we have already begun to set the stage and can also build on the great innovative
capabilities of our company.
Market performance varies
The energy transition will play out differently in various markets and segments, and progress at different
speeds. Whereas demand for fossil fuels in Europe is declining, it will increase in the growing markets of
Asia, the Middle East, and Africa. We are in an optimal position to benefit from these market opportunities
thanks to our production of oil, stakes in refineries and trading joint venture in Abu Dhabi as well as our
gas production activities in Malaysia. In addition, freight, shipping, and air traffic even in Europe will not
be able to continue without liquid fuels in the short to medium term. For this reason, we will contribute
substantially to a lower-carbon future with Co-Processing of biogenic components and the further develop-
ment of synthetic fuels.
Natural gas – quick solution and long-term complement
In addition to innovations that will be implemented in the medium to long term, we also require effective
solutions to roll out quickly during the energy transition. One of these is the increased use of natural gas in
transportation as well as in power generation, in particular, which will enable an immediate sharp reduction
in carbon emissions. However, gas is not just a short-term replacement for coal, but also the perfect long-
term complement to renewable energies. Unavoidable volatility in green energy generation can be balanced
out quickly by gas-fired power plants to provide a secure energy supply. I am convinced that natural gas
will play a key role in the energy transition. At OMV, we are addressing these issues by further gradually
increasing the share of natural gas in our portfolio.
From oil as a commodity to a high-quality product
Regardless of the fact that the importance of oil as a source of energy will decline, crude oil remains a
highly valuable raw material. Oil is a cornerstone of the chemical industry and therefore an integral building
block of our civilization, our prosperity, and our wellbeing. High-quality products we use every day – from
clothing to laptops and smartphones – and light, durable, and safe materials for the automotive and aircraft
industries use crude oil as a feedstock, as do lifesaving drugs and many other medical products. OMV’s
refineries today already feature a high level of petrochemical integration, and we will further extend the
value chain to include additional chemical activities in line with our strategy. A specific example of this
is the expansion of the petrochemical facilities at our Burghausen refinery in Germany that began last year.
An ISO C4 facility is currently being built there. From the fourth quarter of this year, high-purity isobutene,
a feedstock for key chemical products like adhesives, lubricants, and even vitamin C, will be produced there.
28
OMV ANNUAL REPORT 2019 / STATEMENT OF THE CHAIRMAN OF THE EXECUTIVE BOARD
We will extend the value
chain of oil beyond
petrochemical processing
to recycling.
RAINER SEELE
Chairman of the Executive Board
Recycling – environmental protection and business model
As with all items we use on a daily basis, the question to ask about plastics is: What should we do with it
at the end of its life cycle? OMV has developed a high-quality recycling method called ReOil® in which
waste plastics are converted into synthetic crude oil. This in turn can be processed further into fuels or basic
petrochemical components. The process involves chemical recycling without a loss of quality which allows
plastic to become a valuable raw material instead of turning into waste at the end of the product cycle. This
enables us to extend the value chain of oil beyond petrochemical processing to recycling. At the same time,
this technology shows that environmental protection and profitability can go hand in hand. It is important
evidence of the innovative strength of our industry and OMV as a company. Last year, we made considerable
progress on our ReOil® pilot plant at the Schwechat refinery and are optimistic that we can grow it into a
fully usable, economically viable, industrial-scale facility by 2025.
Making CO2 useful
The circular economy plays a key role in OMV’s planning – including with regard to CO2. We should not
demonize the CO2 molecule: we must – and can – work with it. For instance, we are researching techno-
logies for further processing CO2 into the energy source methane or methanol, an important chemical
feedstock, and making it economically viable. Moreover, we are looking into options for storing carbon
dioxide underground. The use of these technologies assumes that the legal environment supports them,
but this is not yet the case in some countries, including Austria. Nonetheless, the European Commission is
sending positive signals with the recent unveiling of its Green Deal. The Commission has acknowledged
the usefulness and potential of this technology and wishes to promote it. In our long-term strategy, we are
working on various options for using hydrogen – for transportation as well as industrial applications. I am
certain that hydrogen will be a key element in the energy mix of the future.
The conditions underlying our business will change. OMV is anticipating this and will unlock the oppor-
tunities brought about by such a shift. We will significantly expand our value chain and develop business
models that contribute to a lower-carbon future, while at the same time ensuring that our company’s
business continues to be successful. We are already setting the stage. There are 20,000 reasons to look for-
ward to the future. Thank you for your trust in OMV.
Vienna, March 11, 2020
Rainer Seele m.p.
29
Rainer Seele
Chairman of the
Executive Board,
Chief Executive Officer and
Chief Marketing Officer
“We’re excited about tomorrow because
our 20,000 employees are making OMV a
global player in line with our Strategy 2025.”
Reinhard Florey
Chief Financial Officer
Thomas Gangl
Chief Downstream
Operations Officer
Johann Pleininger
Deputy Chairman of the
Executive Board and
Chief Upstream
Operations Officer
OMV ANNUAL REPORT 2019 / REPORT OF THE SUPERVISORY BOARD
Dear Shareholders,
It is with great satisfaction that I can look back on an extraordinarily successful 2019.
OMV has achieved considerable progress in implementing its Strategy 2025. I wish to choose just two
examples, from the large number of activities, that represent key milestones on the path towards growth,
further internationalization, integration of business models, and port folio diversification. With the acqui-
sition of an interest in ADNOC Refining, completed in 2019, OMV not only significantly increased its refinery
capacity, but also established a fully integrated business model in Abu Dhabi. Furthermore, a global trading
joint venture co-founded by OMV will cover the growing demand in the Middle East, Africa, and above all
Asia from Abu Dhabi. In the Upstream Business Segment OMV successfully completed the acquisition of
a 50% share in newly established SapuraOMV in Malaysia and started producing gas for the Asian market,
thus building a strong bridge to the world’s fastest-growing markets.
The successful operative and financial performance during the past year is the basis for the continued
implementation of the strategic targets. In spite of an increasingly difficult market environment, OMV has
been able to achieve its historically highest net income for the year after tax. OMV’s strong financial
position is also reflected in the proposed record dividend of EUR 2.00 per share, by means of which you,
dear shareholders, partake in OMV’s successes.
In the following, I would like to inform you about the Supervisory Board’s work during the 2019 financial
year:
Composition of the Executive Board and Supervisory Board
A change regarding the composition of the Executive Board team occurred in the middle of last year.
Manfred Leitner, who had been in charge of the Downstream Business Segment for eight years, resigned
from his board position – which would otherwise have expired at the end of the year – for personal reasons
with effect as of July. I wish to thank Manfred Leitner on behalf of the entire Supervisory Board. He has
been instrumental in the development of the Downstream Business Segment, increased its efficiency, and
led it into Europe’s premier league. Following significant growth, this business segment has now reached
a size that made it necessary and strategically expedient to split it into the Refining & Petrochemical Opera-
tions and Marketing & Trading segments – because the oil and gas industry faces challenges that will
have a significant impact on the refinery business. In view of these changes, it is crucial that both the
production facilities and the sales and trading business receive the highest levels of attention and are led
by top management personnel. With the appointment of Thomas Gangl as member of the Executive Board
responsible for Refining & Petrochemical Operations as of July 2019, OMV gained not only a top-class expert
in the refining and petrochemicals sector, but also a long-standing expert with profound knowledge of
OMV and vital management experience on various levels of the company, which has helped to build his
excellent reputation. The Supervisory Board is delighted that we were able to fill this position on the
Executive Board from our own ranks, since this further confirms the excellent quality of our Company.
The Marketing & Trading segment will focus strongly on the changes in the energy market and the diverging
dynamics on each continent. Until the final appointment of this newly created Executive Board function,
Rainer Seele will take charge of this segment on an interim basis.
With the extension of Rainer Seele’s and Johann Pleininger’s Executive Board mandates in July respectively
September 2019, the Executive Board affirmed the composition of the executive team for the coming
years and thus satisfied an important prerequisite for the continuation of the Company’s success story.
32
OMV ANNUAL REPORT 2019 / REPORT OF THE SUPERVISORY BOARD
The successful operative
and financial performance
during the past year is
the basis for the continued
implementation of
the strategic targets.
WOLFGANG C. BERNDT
Chairman of the Supervisory Board
The composition of the Supervisory Board was also comprehensively renewed. OMV’s Annual General
Meeting on May 14, 2019, elected a total of five new members – based on the proposal of ÖBAG – to
the Supervisory Board: Thomas Schmid, Stefan Doboczky, Elisabeth Stadler, Christoph Swarovski, and
Cathrine Trattner. The candidates were selected in compliance with legal requirements and on the basis
of a large variety of criteria which, in addition to personal integrity, independence, and impartiality, included
in particular professional qualifications and broad management experience. I, Wolfgang C. Berndt, was
elected Chairman of the Supervisory Board at its constituent meeting held in the wake of the Annual General
Meeting 2019, while Thomas Schmid was elected my first Deputy Chairperson and Alyazia Ali Al Kuwaiti
my second Deputy Chairperson. There were no changes on the part of the employee representatives in 2019
compared with 2018.
Supervisory Board activities
The Supervisory Board carried out its activities during the financial year with great care and in accordance
with the law, the Company’s Articles of Association, and the Internal Rules. It oversaw the Executive
Board’s governance of OMV and advised it in decision-making processes on the basis of detailed written
and verbal reports as well as constructive discussions between the Supervisory Board and the Executive
Board. The Executive Board provided the Supervisory Board with regular, timely, and comprehensive reports
on the Company’s operations, on the general economic situation in its key markets, and the overall
business environment, as well as on the opportunities and risks to OMV’s business development.
The Supervisory Board’s activities were particularly focused, firstly, on personnel matters relating to the
Executive Board, and secondly, on the further implementation of the strategy in line with the sustainability
targets. The training program for members of the Super visory Board in 2018 was followed by another
intensive training program in 2019, featuring three events for the entire Supervisory Board as well as several
onboarding events, espe -cially for the new Supervisory Board members. Also, the annual self-evaluation
by the Supervisory Board was performed, supported by an external advisor. The results will be the basis
for activities and further trainings in 2020.
In 2018 and at the beginning of 2019, the Supervisory Board still dealt intensively with the acquisition of
the 15% interest in ADNOC Refining and the related global trading joint venture, which was completed in
mid-2019.
33
OMV ANNUAL REPORT 2019 / REPORT OF THE SUPERVISORY BOARD
The Supervisory Board, and especially I as Chairman of the Supervisory Board, attach great importance to
an intensive exchange with investors. At this year’s Corporate Governance Roadshow I, together with
Investor Relations, visited major institutional investors and proxy advisors in Frankfurt, Berlin, London, and
Vienna to discuss the governance model, the remuneration of the Executive Board, and OMV’s Sustain-
ability Strategy.
At the end of the year, the decision to sell the Maari oil field represented a further step to optimize OMV’s
portfolio. Upon completion of this transaction OMV will be a pure gas producer in New Zealand. This
underlines OMV’s strategy to produce significantly more natural gas than oil in the future in order to reduce
the carbon intensity of its product portfolio.
Activities of Supervisory Board committees
The Presidential and Nomination Committee placed particular focus on the preparation of the decisions
regarding the appointment of Thomas Gangl and the extension of Rainer Seele’s and Johann Pleininger’s
Executive Board mandates. In addition, it searched intensively for suitable candidates for the position of a
new Executive Board member for Marketing & Trading. Furthermore, it focused on the issue of long-term
Executive Board succession planning with special consideration of the diversity goals.
In 2019, the Remuneration Committee could build on the comprehensive evaluation of the Executive
Board’s remuneration system conducted in 2018. In order to meet the new requirements of the Austrian
Stock Corporation Act in connection with the implementation of the amendments to the EU Shareholder
Rights Directive, a remuneration policy for the Executive Board and the Supervisory Board was drawn up,
which will be submitted by the Supervisory Board to the 2020 Annual General Meeting for voting for the
first time. In the context of the development of the remuneration policy for the Executive Board, feedback
from investors during the aforementioned Corporate Governance Roadshow was specifically considered.
Thus, from 2020, the variable remuneration system also incorporates non-financial/ESG targets – concrete
carbon reduction and a diversity target.
In 2019, the Audit Committee looked at important topics related to accounting processes, the internal
audit program, risk management, and the Group’s internal control system. The current auditor of the OMV
Group, Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H., participated in each of the Audit Commit-
tee’s meetings, and the Supervisory Board regularly took advantage of the opportunity to discuss matters
with the auditor without the presence of the members of the Executive Board. In addition, the Audit
Committee initiated a selection procedure relating to the choice of the auditor for the 2021 financial year.
Meetings of the Portfolio and Project Committee are held regularly prior to the meetings of the Super-
visory Board. The committee used its meetings in 2019 to prepare decisions regarding key investment and
M&A projects on the basis of extensive information and intensive discussions. A strategy meeting with
the Executive Board was held again in 2019, focusing on petrochemicals and sustainability, in particular
carbon reduction and new technologies. Further details regarding the activities of the Supervisory Board
and its committees can be found in the (consolidated) Corporate Governance Report.
34
OMV ANNUAL REPORT 2019 / REPORT OF THE SUPERVISORY BOARD
Annual financial statements and dividends
Following a comprehensive audit and discussions with the auditor during meetings of the Audit Committee
and the Supervisory Board, the Supervisory Board has approved the Directors’ Report and the Consolidated
Annual Report pursuant to section 96(1) of the Austrian Stock Corporation Act as well as the Annual
Financial Statements and the 2019 Consolidated Annual Financial Statements pursuant to section 96(4) of
the Austrian Stock Corporation Act. Both the Annual Financial Statements and the Consolidated Annual
Financial Statements for 2019 received an unqualified opinion from the auditing company Ernst & Young
Wirtschaftsprüfungsgesellschaft m.b.H. The Supervisory Board also approved the (Consolidated) Cor-
porate Governance Report audited by both the Supervisory Board and the Audit Committee as well as the
(Consolidated) Report on Payments Made to Governments. The Supervisory Board found no issues during
the audits. Following the audit, the Supervisory Board accepted the Executive Board’s suggestion to jointly
propose in the Annual General Meeting distributing a dividend of EUR 2.00 per share, which corresponds
to an increase of EUR 0.25 over the previous year. The remaining amount of the net profit after the distribu-
tion will be carried forward to new account. The Supervisory Board will audit the separate consolidated
non-financial report (Sustainability Report) individually, and this report will be published separately and
after the Annual Report together with the corresponding Supervisory Board report.
Thus, the 2019 financial year was a very successful one in every respect. Regarding the overall portfolio,
important positions were adopted, which will shape OMV’s future lastingly. On behalf of the entire Super-
visory Board, I would like to thank the Executive Board and all employees for their commitment and
successful work in the 2019 financial year. I would like to give special thanks to OMV’s shareholders for
their continued trust as well as to all of OMV’s customers and partners.
Vienna, March 11, 2020
For the Supervisory Board
Wolfgang C. Berndt m.p.
35
OMV ANNUAL REPORT 2019 / OMV ON THE CAPITAL MARKETS
OMV on the Capital Markets
European equity markets surged in 2019, mainly backed by loose monetary policy. The US-China
trade conflict and the political process leading to UK’s exit from the European Union dominated
headlines during most of the year, with progress visible for both toward year-end. The OMV stock
closed the year at EUR 50.08, a 31% increase compared to year-end 2018.
Financial markets
Bouncing back from a challenging year 2018, Euro-
pean equity markets surged throughout 2019. The
reference index STOXX 600 was up 18.9% in dollar
terms, slightly underperforming the MSCI World
(+ 23.1%). All major geographical indexes rose, and
almost all sectors were up during the year. Looser
monetary policy was a significant driver behind
equity market performance globally, with the Fed
cutting interest rates three times in 2019. The Euro-
pean Central Bank also further cut the base rate into
negative territory (– 0.5%) and restarted the quanti-
tative easing program, buying EUR 20 bn in bonds
per month from November.
Despite the geopolitical tensions, stock markets per-
formed strongly in 2019. The US-China trade talks
dominated the headlines. An agreement between the
two superpowers was reached, reducing the scope
of tariffs, with China promising to increase purchases
of US goods and services. Some new tariffs were
imposed, however. In Europe, the UK-focused FTSE
250 was among the top-performing indexes in
dollar terms. Its performance was supported by
optimism around a trade deal between the European
Union and the United Kingdom, as the terms of the
UK’s exit became clearer, and uncertainty waned sig-
nificantly.
The 2019 price performance of stocks in the oil &
gas sector was depressed by the expectation that
crude oil prices would weaken through 2020. This
was due to a slowdown in global demand and grow-
ing non-OPEC production (largely from the United
States). Environmental, social, and governance (ESG)
issues were also a major topic impacting the sector,
most notably with the world’s largest sovereign
fund, Norges, set to reduce its dependency on the
oil sector by selling circa USD 6 bn worth of equity
holdings in crude producers.
At a glance
Number of outstanding shares 1
Market capitalization 1
Volume traded on the Vienna Stock Exchange
Year’s high
Year’s low
Year end
Earnings Per Share (EPS)
Book value per share 1
Cash flow per share 2
Dividend Per Share (DPS) 3
Payout ratio
Dividend yield 1
Total Shareholder Return (TSR) 4
in mn
in EUR bn
in EUR bn
in EUR
in EUR
in EUR
in EUR
in EUR
in EUR
in EUR
in %
in %
in %
2019
326.9
16.4
8.2
54.54
39.32
50.08
5.14
39.80
12.41
2.00
39
4.0
36
2018
326.7
12.5
9.1
56.24
37.65
38.25
4.40
36.44
13.45
1.75
40
4.6
(25)
2017
326.5
17.3
8.8
54.14
32.37
52.83
1.33
34.35
10.56
1.50
113
2.8
61
2016
326.4
11.0
6.0
34.78
21.45
33.56
(1.24)
33.44
8.82
1.20
n.m.
3.6
34
2015
326.4
8.5
7.1
30.46
20.70
26.13
(3.37)
35.76
8.68
1.00
n.m.
3.8
24
1 As of December 31
2 Cash flow from operating activities
3 2019: as proposed by the Executive Board and confirmed by the Supervisory Board; subject to confirmation by the Annual General Meeting 2020
4 Assuming reinvestment of the dividend
36
OMV ANNUAL REPORT 2019 / OMV ON THE CAPITAL MARKETS
OMV share price performance and volume
OMV’s share price closed the year 31% higher
compared to the previous year’s close. Assuming
dividend reinvestment, the total shareholder return
was 36%. OMV’s share price started the year at
EUR 38.25 and breached the EUR 50 threshold by
late April. After that, the price declined and
troughed at around EUR 42 in mid-June. In the
second half of the year, OMV’s stock recovered
impressively, hitting the year’s high of over EUR 54
in early November. The last two months of the year
were dominated by a slight decline, and the stock
closed at EUR 50.08 at the end of December. The
daily trading volume of OMV shares in 2019 aver-
aged 350,172 (2018: 385,176). At the end of 2019,
OMV’s total market capitalization was EUR 16.4 bn
compared to EUR 12.5 bn at the end of 2018.
OMV share price performance 2019
in EUR
60
55
50
45
40
35
30
EUR 39.32
EUR 38.25
EUR 54.54
EUR 50.08
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
OMV shares outperformed benchmark indexes and
peers markedly in a recovering market environment,
after having underperformed the market in 2018.
In 2019, the Austrian ATX gained 16%. Over the
same period, the FTSE Eurotop 100 global industry
benchmark grew by 22%, while the FTSEurofirst
E300 Oil & Gas index only increased by 5%. Mea-
sured over a five-year period, the return generated
by OMV shares outperformed index returns. An
investor who acquired OMV stock worth EUR 100
at the end of 2014 and reinvested the dividends
in additional shares saw the value of the investment
increase to EUR 270 at the end of 2019, with an
average annual return of 22%.
OMV shares: long-term performance compared with indexes
Average annual increase with dividends reinvested 1
OMV
ATX
FTSE Eurotop 100
FTSEurofirst E300 Oil & Gas
9.1%
5.4%
7.5%
6.6%
5.2%
7.8 %
22.2%
11.2%
10 years (December 31, 2009, to December 31, 2019)
5 years (December 31, 2014, to December 31, 2019)
1 Based on the Total Return Index (RI) from Datastream; compound annual growth rate method used to calculate the average annual increase with
dividends reinvested
37
OMV ANNUAL REPORT 2019 / OMV ON THE CAPITAL MARKETS
Proposed dividend of EUR 2.00 per share
for 2019
Shareholder structure
In %
On May 14, 2019, OMV’s Annual General Meeting
approved a dividend of EUR 1.75 per share for 2018
as well as all other agenda items including the
Supervisory Board elections, the Long-Term Incen-
tive Plan 2018, and the Matching Share Plan 2019.
The Executive Board will propose a dividend of
EUR 2.00 per share for 2019 at the next ordinary
Annual General Meeting on May 19, 2020, an
increase of 14% over the previous year. The dividend
yield, based on the closing price on the last trading
day of 2019, amounts to 4.0%.
Dividend policy
OMV is committed to delivering an attractive and
predictable shareholder return through the business
cycle. According to its dividend policy, OMV aims
to increase dividends every year or at least to main-
tain the level of the respective previous year.
OMV shareholder structure
OMV’s shareholder structure remained relatively
unchanged in 2019 and was as follows at year-end:
43.0% free float, 31.5% Österreichische Beteili-
gungs AG (ÖBAG, representing the Austrian govern-
ment)1, 24.9% Mubadala Petroleum and Petro-
chemicals Holding Company (MPPH), 0.4% employ-
ee share programs, and 0.2% treasury shares.
327 mn
shares
ÖBAG
MPPH/Abu Dhabi
Institutional investors
Unidentified free float
Identified retail ownership/broker-
age & trading accounts
Employee share program
Own shares
31.5
24.9
29.5
6.1
7.4
0.4
0.2
An analysis of our shareholder structure carried out
at the end of 2019 showed that institutional inves-
tors held 29.5% of OMV’s shares. At 30%, investors
from the United States made up the largest regional
group of institutional investors. The proportion of
investors from the United Kingdom amounted to
25%, while shareholders from France held 10%.
Norwegian, German, and Austrian investors held
5% each.
Geographical distribution of institutional investors
In %
29.5%
institutional
investors
United States
United Kingdom
France
Norway
Germany
Austria
Rest of Europe
Rest of World
30.2
24.8
10.0
5.2
4.9
4.6
13.6
6.5
1 With effect as of February 20, 2019, Österreichische Bundes- und Industriebeteiligungen GmbH was transformed into a joint-stock company and
renamed as Österreichische Beteiligungs AG.
38
OMV ANNUAL REPORT 2019 / OMV ON THE CAPITAL MARKETS
OMV Aktiengesellschaft’s capital stock amounts to
EUR 327,272,727 and consists of 327,272,727
no-par-value bearer shares. At year-end 2019, OMV
held a total of 542,151 treasury shares. The capital
stock consists entirely of common shares. Due to
OMV’s adherence to the one-share, one-vote prin-
ciple, there are no classes of shares that bear special
rights. A consortium agreement between the two
major shareholders, ÖBAG and MPPH, contains
arrangements for coordinated action and restrictions
on the transfer of shareholdings.
Environmental, Social, and Governance (ESG)
performance
OMV places great importance on working with ESG
rating agencies. OMV is committed to acting respon-
sibly towards the environment and society. Our
accomplishments in this regard are reflected in fur-
ther improvement of our already robust ESG per-
formance in 2019. Most notably, RobecoSAM recog-
nized OMV as an Industry Mover in its Yearbook
2019. OMV demonstrated the largest proportional
improvement in sustainability performance com-
pared to the previous year out of the top 15% of
companies in the industry. Also, OMV received the
highest “AAA” score in the MSCI ESG Ratings
assessment for the seventh year in a row. This places
OMV among the best 10% of oil and gas companies.
OMV also maintained its Prime Status in the ISS ESG
rating with a score of B –. This positions us among
the 5% best oil and gas companies in terms of ESG
performance. OMV was also recognized by CDP with
a score of A – (Leadership) in the Climate Change
category, earning us a place among the 14 best oil
and gas companies in this ranking. We were also
assigned the highest Level 4 rating for carbon man-
agement quality by the Transition Pathway Initiative.
Besides these outstanding achievements, OMV has
maintained its inclusion in several ESG indexes.
Most notably, OMV was included in the Dow Jones
Sustainability Index (DJSI World) for the second
year in a row as the only Austrian company in the
index. This sets OMV among the top 10% oil and
gas companies in terms of ESG ratings. OMV re-
ceived the highest “AAA” score from the MSCI
Global Sustainability Index for the sixth year in a
row, and was reconfirmed as a constituent of
two MSCI indexes: the ACWI ESG Leaders Index
and the ACWI SRI Index. Furthermore, OMV was
affirmed as a member of the FTSE4Good Index
Series, which is used by a wide variety of market
participants to create and assess responsible in-
vestment funds. OMV also maintained its inclusion
in the STOXX® Global ESG Leaders index, based
on OMV’s assessment by Sustainalytics, and in the
ECPI® indexes. After being reappraised by EcoVadis
– a platform analyzing the ESG performance of sup-
pliers – OMV maintained its Silver supplier status.
Good credit ratings
The OMV Group is evaluated by rating agencies
Moody’s and Fitch. On June 28 2019, Moody’s con-
firmed OMV’s A3 issuer rating with a stable out-
look. On December 19 2019, Fitch confirmed OMV’s
rating of A – with a stable outlook. The rating affir-
mations reflect OMV’s growing oil and gas output
and an improving production growth outlook fol-
lowing the recent acquisitions, as well as a strong
balance sheet and a prudent fiscal policy.
Analyst coverage
At the end of 2019, OMV was covered by 22 sell-
side financial analysts who regularly publish re-
search reports on OMV. This ensures OMV good
visibility in the financial community. At the end
of 2018, 80% of these analysts had issued a “buy”
recommendation, with the remainder advising
“hold.” As 2019 came to a close, almost 60% of the
analysts still recommended their clients to buy
OMV stock after a price gain of 31% over the year.
About one-third of analysts issued a “hold” re -
commendation, while only two analysts suggested
selling OMV shares. The average target price re-
ceded marginally from EUR 57 per share last year
to EUR 56 at the end of 2019.
39
OMV ANNUAL REPORT 2019 / OMV ON THE CAPITAL MARKETS
Investor Relations activities
Ensuring active, candid dialogue with the capital
market is a top priority at OMV. The Investor Rela-
tions department’s mission is to provide comprehen-
sive insight into OMV’s strategy and business
operations to all capital market participants, thereby
guaranteeing equal treatment of all stakeholders.
Throughout 2019, OMV was in constant dialogue
with investors and analysts in the interest of pre-
senting OMV’s progress towards completing its 2025
strategy. In addition, OMV organized two interna-
tional investor group visits in Vienna to provide in-
sight into Upstream and Downstream activities, a
group lunch for Austrian investors, as well as a sell-
side analyst lunch in London with the participation
of 20 sell-side analysts. OMV organized three gover-
nance roadshows with the Chairman of the Super-
visory Board in London, Frankfurt, and Vienna. This
established a dialogue with the governance experts
of some of the major shareholders. Finally, the Exec-
utive Board and the Investor Relations department
strengthened and deepened relationships with ana-
lysts and investors through numerous road shows
and conferences across Europe, North America, and
Asia.
40
DIRECTORS’ REPORT
41 – 86
42 — About OMV
43 — Strategy
48 — Sustainability
52 — Health, Safety, Security, and Environment
55 — Employees
57 — OMV Group Business Year
66 — Upstream
73 — Downstream
79 — Outlook
80 — Risk Management
83 — Other Information
About OMV
OMV produces and markets oil and gas, innovative energy, and high-end petrochemical solutions – in
a responsible way. OMV has a balanced international Upstream portfolio, while its Downstream
businesses feature European and Middle Eastern footprints. In 2019, Group sales amounted to
EUR 23 bn. With a year-end market capitalization of around EUR 16.4 bn, OMV is one of Austria’s
largest listed industrial companies. The majority of OMV’s roughly 20,000 employees work at its
integrated European sites.
In the Upstream Business Segment, OMV focuses on
the exploration, development, and production of oil
and gas in its five core regions of Central and Eastern
Europe, the Middle East and Africa, the North Sea,
Russia, and Asia-Pacific. At the end of 2019, OMV
had proven reserves (1P) of 1.33 bn boe and proven
and probable reserves (2P) of 2.38 bn boe. The
Reserve Replacement Rate (RRR) was 135% in 2019.
Daily production was 487 kboe/d in 2019 (2018:
427 kboe/d), which equals a total production of
178 mn boe. While gas production accounted for
57% of production, oil amounted to 43%.
The Downstream Business Segment consists of the
Downstream Oil and the Downstream Gas busi-
nesses. Downstream Oil operates three refineries in
Europe: Schwechat (Austria) and Burghausen (Ger-
many), both of which feature integrated petrochem-
ical production, and the Petrobrazi refinery (Roma-
nia). In addition OMV holds a 15% share in ADNOC
Refining, which operates the world-class Ruwais
refinery in the United Arab Emirates, among other
assets. Globally OMV’s total annual processing ca-
pacity amounts to 24.9 mn t. The total refined prod-
uct sales were 20.94 mn t in 2019 (2018: 20.26 mn t).
The retail network consists of around 2,100 filling
stations in ten countries with a strong multi-brand
market portfolio. Furthermore, OMV holds a 36%
interest in Borealis, one of the world’s largest plastics
producers.
In Downstream Gas, the natural gas sales volume
was 136.7 TWh in 2019 (2018: 113.8 TWh). OMV
owns gas storage facilities with a capacity of 30 TWh
and a 51% share in Gas Connect Austria, which
operates a 900 km natural gas pipeline network.
The Central European Gas Hub (CEGH), in which
OMV holds a 65% share is a well-established gas-
trading platform. The node in Baumgarten (Austria)
is Central Europe’s largest entry and distribution
point for Russian gas. In addition, OMV operates a
gas-fired power plant in Romania.
Our value chain
Upstream
Downstream Oil
Onshore and offshore exploration
and production
Supply
Refining
Storage
Transportation
and distribution
Domestic
Industry
Filling
stations
and
services
Petro-
chemicals
Industry
Downstream Gas
Pipeline
Storage
Pipeline
Domestic
Gas-fired
power plants
Industry
Filling
stations
and
services
42
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Strategy
The OMV Strategy 2025 builds on the proven concept of integration. Based on a balanced growth
strategy in Upstream and Downstream, the size and geographical reach of OMV will be expanded
considerably to participate in attractive growth opportunities outside of Europe. OMV strives to
substantially increase the clean CCS Operating Result to at least EUR 5 bn by 2025. Since the strategy
was introduced in March 2018, significant milestones have already been reached.
Market outlook
Global energy demand continues to grow and will
be met predominantly through traditional energy
sources.
World energy demand by primary energy sources
Natural gas will continue to be the fastest growing
major energy source among fossil fuels, supported
by a policy toward decarbonization of energy and
more stringent emissions standards. Gas demand
will grow at an annual rate of 1.4% up to 2030. This
is due to, among others, the ability of natural gas to
displace coal in the power generation sector.
15.5
16.3
Global petrochemical demand
In bn toe
14.3
2.0
0.7
3.8
3.3
4.5
2.5
0.7
3.9
3.6
4.8
2.9
0.8
3.8
3.9
4.9
2018
Renewables
Coal
2025
Nuclear
Gas
2030
Oil
Source: IEA World Energy Outlook 2019, Stated Policies Scenario
Global energy demand will continue to increase and
is expected to rise 14% by 2030, driven by GDP and
population growth. Oil and gas demand continues
to grow and will account for about 54% of global
energy demand for an additional increase of 1 bn toe.
Oil will remain the main source of primary energy in
the next decade with a share of about 30% and a
compound annual growth rate of 0.7% up to 2030.
The increase in oil consumption will mainly stem
from countries in Asia, the Middle East, and Africa.
The growth in demand for crude oil is mainly the
result of increased demand for products from the
petrochemical industry and the transportation sector
in these emerging markets. While demand for oil
products is expected to decrease in saturated mar-
kets, such as North America and Europe, the global
growth in demand beyond 2030 will come from
emerging countries.
In mn toe
425
466
331
161
110
12
49
206
145
14
60
227
160
15
64
2018
2025
2028
Ethylene
Butadiene
Propylene
Benzene
Source: IHS – Chemical Supply & Demand (2019)
The growth in global demand for petrochemical
products is closely linked to economic development.
As such, the growing petrochemicals market will
be an important consumer of oil and gas and a driver
of global oil demand. Demand for olefins such as
ethylene, propylene, butadiene, and benzene, are
expected to increase by 41% by 2028. These olefins
are considered to be the major building blocks for
the chemical industry. Their derivatives, such as
poly olefins, offer unique properties and economic
benefits, such as low material costs, as well as easy
and fast processing. Petrochemicals are increasingly
being used as a substitute for other materials due
to their advantageous characteristics. They are es-
sential for various industries, such as packaging,
construction, transportation, healthcare, pharma-
ceuticals, and electronics.
43
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
This growth will be primarily driven by Asia-Pacific,
in step with the economic development in the
region. Demand in mature markets, such as Europe,
North America, and Japan, will continue to stay
healthy and develop in line with GDP.
Naphtha, an oil derivative product, is expected to
remain the main feedstock for the petrochemical
industry. Other key feedstocks are associated gas in
the Middle East and shale gas in North America.
Strategic cornerstones – OMV set to
become bigger and more valuable
The OMV Strategy 2025 builds on the proven con-
cept of integration, which ensures strong cash flows
and resilience. OMV aims to grow both the Upstream
and the Downstream businesses. In Upstream, our
target is production and reserves growth in defined
core regions. In Downstream, OMV will expand
processing capacities and geographical reach con-
siderably. Moreover, OMV will build a strong gas
market presence in Europe. The Group will continue
to improve its performance and extend its record of
operational excellence. OMV strives to increase the
clean CCS Operating Result to at least EUR 4 bn
by 2020 (based on a Brent oil price of USD 70/bbl, a
CEGH price of EUR 20/MWh and an indicator refin-
ing margin of USD 5/bbl) and at least EUR 5 bn by
2025.The growth will be driven equally by Upstream
and Downstream, and will be achieved both organi-
cally and through acquisitions. Strategic partnerships
OMV – Strategy 2025
will remain an important lever for accessing attrac-
tive projects, with long-term perspectives and high
value creation.
Upstream
OMV’s Upstream business generates profitable
growth through its high-quality portfolio, while
remaining focused on cash generation. The target
production levels of 500 kboe/d and 600 kboe/d
in 2020 and 2025, respectively, have been recon-
firmed. Production will comprise more than 50%
natural gas in the future to improve long-term
carbon efficiency and adapt to the changing mix in
global energy demand. To ensure a Reserve Replace-
ment Rate of more than 100% (three-year average)
and an average reserve life of eight to ten years in
the long term, 1P reserves will almost double to
more than 2 bn boe by 2025. Portfolio growth will be
achieved primarily through acquisitions in low-cost,
hydrocarbon-rich regions, but also through organic
exploration and investments. Average production
costs will not exceed USD 8/boe. Strict cost manage-
ment, a focus on profitability, and prudent capital
discipline will be of the utmost importance as OMV
takes steps to reach these targets.
OMV will continue to focus its portfolio on five core
regions. Portfolio expansion is being pursued with
projects in OMV’s core regions, with particular focus
on the Middle East and Africa, Russia, and Asia-
Pacific to ensure sustainable replacement with low-
cost barrels and to improve the Company’s overall
resilience.
Leverage on proven concept of integration
Significantly internationalize
Upstream and Downstream
Build strong gas market presence in Europe
Drive operating result
44
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Strategic partnerships with the prospect of long-
term value creation will continue to be an important
pathway for OMV for accessing material volumes of
oil and gas reserves. Working together with selected
national oil companies as well as with strong inter-
national oil companies supports OMV’s expansion in
its core regions and bolsters the Group’s techno-
logical capabilities, while also minimizing operational
and financial risks.
OMV Upstream is planning to invest between
EUR 1.3 and 1.7 bn annually in organic growth and
operations until 2025. OMV’s budget for exploration
and appraisal activities is EUR 350 mn in 2020.
In order to safeguard revenue and profitability in
Europe, OMV will increase the share of our refiner-
ies’ production sold through captive sales channels
from 47% in 2017 to 55% by 2025. This will ensure
resilience and a refinery utilization rate of over 90%
in the long term, which is well above the average in
Europe. The retail business will increase fuel sales
in the premium and discount segments. The number
of discount stations will be expanded in Austria,
Germany, and Slovenia. The focus of the premium
retail network is on increasing the market share
of the MaxxMotion premium product, growing the
non-oil business, as well as developing additional
customer-oriented retail products and services.
Building on OMV’s strong expertise as one of
Europe’s leading refiners, the Group strives to ex-
port its successful European refining and petro-
chemical business model to international growth
markets. By 2030, fuel demand is expected to
grow significantly in Asia as well as in the Middle
East and Africa. Petrochemicals demand is set to
increase in all regions, especially in Asian markets.
Overall, Asia will absorb more than 90% of the
growth in global oil demand. Thus, OMV aims to
nearly double its refining capacity and increase
its petrochemical capacity by 2025 compared to
2018, establishing one to two core regions outside
Europe.
Upstream – strategic achievements
Since the announcement of the OMV Strategy 2025
in March 2018, we have made major progress in
implementing our strategy. The 2019 highlights are
summarized below:
Generated strong earnings with a clean
Operating Result of EUR 2.0 bn
Gas production increased to 57% of the total
portfolio
Production costs reduced to USD 6.6/boe
Production increased to 487 kboe/d in 2019
and reached the 500 kboe/d mark in the fourth
quarter of 2019
Developed Asia-Pacific into a core region
Increased footprint in the Middle East and
Africa region
Three-year average Reserve Replacement Rate
increased to 166%
1P reserves base increased to 1.3 bn boe
at year-end
Downstream Oil
In Downstream Oil, OMV will further strengthen its
competitive position in Europe. OMV will modify
its European refining assets by reflecting expected
demand changes and shifting to higher-value prod-
ucts. By 2025, up to EUR 1 bn will be invested in the
refineries in Austria, Germany, and Romania. More
than 50% of the investments will be used to expand
OMV’s position in the petrochemical sector. The
three sites will continue to be operated as one inte-
grated refinery system, optimizing asset utilization
and maximizing margins through the exchange of
intermediate products. OMV is well positioned to
capture the benefits of marine fuel market changes
in 2020 as a result of new regulations issued by
the International Maritime Organization (IMO). OMV
has a low heavy fuel oil yield of 2% with flexibility
to further reduce it. Western refineries will become
heavy-fuel-oil-free by 2025.
45
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Downstream Oil – strategic achievements
Since the announcement of the OMV Strategy 2025
in March 2018, we have made major progress in
implementing our strategy. The 2019 highlights are
summarized below:
Strong contribution to Group financials with a
clean CCS Operating Result of EUR 1.7 bn
Built strong refining and petrochemical position
in UAE by acquiring 15% in ADNOC Refining,
which operates the fourth-largest refinery in the
world, and a new trading joint venture, ADNOC
Global Trading
Increased share of refineries’ production sold
through captive sales channels to 49% supported
by storage tank acquisitions and an increased
number of discount filling stations
Achieved utilization rate of the refineries of 97%
Plastic to oil, ReOil®: facility for production of
synthetic crude oil from waste plastic developed
from the R&D phase into a pilot project integrated
into OMV’s refinery
Downstream Gas
European demand for natural gas is expected to
remain stable until 2030, with upside potential of
30 bcm primarily driven by a switch from coal to
natural gas in power generation. In the same time
period, European natural gas production is rapidly
declining, causing a growing supply gap that needs
to be filled. In this environment, OMV will become
the leading integrated supplier with a strong market
presence from Northwest to Southeast Europe.
By 2025, OMV gas sales will grow to more than
20 bcm, thereby aiming at a 10% market share
in Germany, Europe’s largest gas market. OMV will
increasingly market natural gas from OMV’s own
Upstream production as well as imported gas vol-
umes. OMV’s integrated position in the European
market will be strengthened by rising equity gas
volumes from projects in Norway and Romania and
long-term supply contracts with Gazprom.
With an increasing supply gap in Europe, higher
volumes of natural gas will be imported. The Nord
Stream 2 pipeline, which is close to completion is
advantageous for OMV’s gas strategy. This pipeline
will secure and increase consistent and reliable
long-term gas supplies to Europe and the Central
European Gas Hub in Baumgarten, Austria.
Downstream Gas – strategic achievements
Since the announcement of the OMV Strategy 2025
in March 2018, we have made progress in imple-
menting our strategy. The 2019 highlights are sum-
marized below:
Gas sales in Germany and the Netherlands
significantly increased, reaching an average
market share of 4% in Germany and more
than 2% in the Netherlands in 2019
Successful market entry in Belgium
Growing cooperation on LNG with Gazprom
aiming for 1.2 bcm in 2020
Record volumes of 754 TWh traded at CEGH
Finance
OMV’s value-driven finance strategy aims to enable
growth, drive performance, and reward shareholders.
A set of strategic and financial criteria are taken
into account when making an investment decision.
Growth will be achieved on a robust financial base,
with solid long-term targets forming the foundation
of OMV’s finance strategy. As part of its growth
strategy, OMV aims to increase the clean CCS Oper-
ating Result to at least EUR 4 bn by 2020 (based
on a Brent oil price of USD 70/bbl, a CEGH price of
EUR 20/MWh and an indicator refining margin of
USD 5/bbl) and to at least EUR 5 bn by 2025. Fol-
lowing a tremendous turnaround period since 2016,
OMV’s cash generation increased to more than
EUR 4 bn in 2019 and has the potential to exceed
EUR 5 bn in the medium term. The growth will be
supported by a strong financial framework focused
on returns and cash flow. OMV’s profitable growth
strategy aims for a ROACE of at least 12% in the
medium to long term, a positive free cash flow after
dividends, and a growing clean CCS net income
attributable to stockholders. At the same time, the
gearing ratio without leases will be kept at or below
30% in the long term. A strong investment grade
rating is also part of OMV’s financial framework.
46
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT OMV’s strategy pursues profitable growth. The
main financial cornerstones are the following:
ROACE target of at least 12% in the medium
and long term
Positive free cash flow after dividends
Grow clean CCS net income attributable to
stockholders
Increase clean CCS Operating Result to
at least EUR 5 bn by 2025
Increase cash flow generation 1 to
above EUR 5 bn in the medium term
Long-term gearing ratio without leases ≤30%
Competitive shareholder return with
progressive dividend policy
Maintain a strong investment grade rating
OMV targets attractive shareholder returns and aims
to increase dividends every year or to at least main-
tain them at the respective previous year’s level.
Further growth will be enabled through organic and
inorganic investments. For the period 2020 to 2025,
OMV plans to make annual investments averaging
EUR 2.0 to 2.5 bn. In the last years, a number of
acquisitions in Upstream and Downstream have sub-
stantially strengthened the portfolio and its profit-
ability.
OMV’s capital allocation priorities are as follows:
1. Organic CAPEX
2. Dividends
3. Debt reduction
4. Acquisitions
In 2019, important milestones for the achievement
of long-term financial objectives were reached:
Clean CCS Operating Result at EUR 3.5 bn
despite a weaker market environment
Clean CCS net income attributable to stock-
holders rose to EUR 1.6 bn
Cash generation 1 increased to EUR 4.3 bn
Clean CCS ROACE of 11%
Dividend Per Share of EUR 2.00 proposed 2;
increase of 14% compared to the previous year
Strong balance sheet maintained, with a gearing
ratio of 28%, despite the payment of the major
acquisition of a 15% share in ADNOC Refining
and Trading JV as well as the first-time adoption
of IFRS 16 Leases
Fitch Ratings confirmed OMV rating of A-, out-
look stable, following the ADNOC Refining trans-
action
1 Cash flow from operating activities excluding net working capital effects
2 As proposed by the Executive Board and confirmed by the Supervisory Board; subject to confirmation by the Annual General Meeting 2020
47
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Sustainability
OMV responsibly delivers affordable energy for a sustainable supply: the energy for a better life.
Sustainable business behavior is crucial for OMV to create and protect value in the long term, to
build trust-based partnerships, and to attract customers as well as the best employees, investors,
and suppliers.
Carbon Efficiency: OMV focuses on improving
the carbon efficiency of its operations and product
portfolio. OMV is fully committed to acting on cli-
mate change mitigation and responsible resource
management. OMV targets:
Reduce the carbon intensity of OMV’s opera-
tions 2 by 19% by 2025 (vs. 2010)
Reduce the carbon intensity of OMV’s product
portfolio 3 by 4% by 2025 (vs. 2010)
Achieve zero routine flaring and venting of
associated gas by 2030
Innovation: OMV’s innovation efforts focus on
optimizing production, exploring high-end petro-
chemical solutions, developing innovative energy
solutions, and embracing digital technologies.
Innovation is facilitated by investment and part-
nerships in research and development of innova-
tive technological solutions. OMV targets:
Develop ReOil® into commercially viable,
industrial-scale process (unit size of ~ 200,000 t
per year)
Raise the share of sustainable feedstock
co-processed in the refineries to ~ 200,000 t
per year by 2025
Increase the recovery factor in the CEE region
in selected fields by 5 to 15 percentage points
by 2025 through innovative Enhanced Oil
Recovery methods
For more information, see Upstream (page 66) and
Downstream (page 73).
OMV’s approach to sustainability
In the era of energy transition, the goal of OMV’s
business is to provide “oil & gas at its best.” The
growing demand for energy and accelerating climate
change pose immense challenges for the energy
sector. The key lies in finding the balance between
climate protection efforts, affordable energy, and
reliable supply. This means producing and using oil
and gas as sensibly and responsibly as possible to
safeguard the energy supply. We pledge to conduct
our business responsibly by protecting the environ-
ment, aiming to be an employer of choice, and
creating long-term value for our customers, share-
holders, and society.
In line with the sustainable approach to the busi-
ness, OMV has developed the Sustainability Strate-
gy 2025 as an integral part of OMV’s Corporate
Strategy 2025. The Strategy includes 15 measurable
targets set in the five focus areas: Health, Safety,
Security, and Environment (HSSE); Carbon Efficien-
cy; Innovation; Employees; Business Principles
and Social Responsibility. For a lower-carbon future,
OMV will invest up to EUR 500 mn by 2025 in
innovative energy solutions such as ReOil® and Co-
Processing and will implement carbon efficiency
measures.
Health, Safety, Security, and Environment
(HSSE): Health, safety, security, and protection
of the environment have top priority in all activ-
ities. Proactive risk management is essential for
realizing OMV’s HSSE vision of “ZERO harm –
NO losses.” OMV targets:
Achieve zero work-related fatalities
Stabilize Lost-Time Injury Rate 1 at below
0.30 (per 1 million working hours)
Keep leading position for Process Safety Event
Rate 2
For more information, see Health, Safety, Security, and
Environment on page 52.
1 Lost-Time Injury Rate is the frequency of injuries leading to lost working days, relative to one million working hours of employees and contractors.
2 See Abbreviations and Definitions for definition of a Process Safety Event (PSE).
3 CO2 equivalent emissions produced to generate a certain business output using the following business-specific metric (Upstream: t CO2 equivalent/toe
produced, Refineries: t CO2 equivalent/t throughput, Power: t CO2 equivalent/MWh produced) consolidated to an OMV Group Carbon Intensity Opera-
tions Index, based on weighted average of business segments’ carbon intensity
4 OMV carbon intensity of product portfolio measures the CO2 equivalent emissions generated through usage of OMV’s products sold to third parties
in t CO2 equivalent/toe sold.
48
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Employees: OMV is committed to building and
Carbon efficiency performance
retaining a talented expert team for international
and integrated growth. The focus of its diversity
strategy is on gender and internationality. OMV
targets:
Increase share of women at management
level 1 to 25% by 2025
Keep high share of executives with inter-
national experience 2 at 75%
For more information, see Employees on page 55.
Business Principles and Social Responsibility:
OMV strives to uphold equally high ethical stan-
dards at all locations. OMV is a signatory to the
United Nations (UN) Global Compact, fully com-
mitted to the UN Guiding Principles on Business
and Human Rights, and aims to contribute to the
UN’s 2030 Agenda for Sustainable Development.
OMV targets:
Promote awareness of ethical values and prin-
ciples: conduct in-person or online business
ethics training courses for all employees
Assess Community Grievance Mechanism
of all sites against UN Effectiveness Criteria 3
by 2025
Conduct human rights training courses for
all employees exposed to human rights risks 4
by 2025
Increase the number of supplier audits
covering sustainability elements to > 20 per
year by 2025
OMV recognizes climate change as one of the most
important global challenges. OMV integrates risks
and opportunities related to climate change impacts
into the development of the Company’s business
strategy and the planning of operational activities.
In this regard, OMV aims to reduce its carbon foot-
print in an effort to mitigate the impact of its oper-
ations and product portfolio on climate change.
OMV implements measures aimed at optimizing its
operational processes, increasing energy efficiency,
reducing flaring and venting, and reducing methane
emissions through leakage detection and improve-
ment of asset integrity. For example, as a result of
the Upstream Energy Efficiency Program at OMV
Petrom, 36 gas-to-power (G2P) and combined heat
and power (CHP) plants have been installed so far,
resulting in a reduction in annual greenhouse gas
emissions of 130,000 t. We will continue phasing
out routine flaring and venting as soon as possible,
but no later than by 2030, as part of OMV’s com-
mitment to the World Bank’s “Zero routine flaring
by 2030” initiative.
A cornerstone of our climate strategy is increasing
the share of natural gas in our product portfolio.
Based on our Upstream production project pipeline,
we will increase the share of natural gas in our
Upstream portfolio to 65% by 2025. In 2019, the
Larak gas development project came on stream
in Malaysia, and the Nawara gas development and
pipeline project in Tunisia is foreseen to start pro-
duction in 2020. The divestment of the Maari oil field
shifts OMV in New Zealand to a gas-only producer
and eliminates 280,000 t of greenhouse gas emis-
sions per year from OMV Upstream operations. This
reinforces OMV’s strategy of placing the focus on
natural gas production rather than oil.
Additionally, OMV extended the Russian natural gas
supply contracts until 2040. The higher share of
natural gas in OMV’s overall product portfolio will
contribute to the reduction of the product portfolio’s
carbon intensity. In 2019, we also began selling
climate-neutral gas to our customers, offsetting
greenhouse gas emissions through projects certified
by the Verified Carbon Standard and the Gold
Standard, such as Bulgaria’s Saint Nikola wind farm.
1 Management level: executives and advanced career level
2 More than or equal to three years of living and working abroad
3 Legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, based on engagement and dialog
4 1,059 employees in corporate functions managing human rights risks as well as the corresponding functions in countries with elevated human rights risk
49
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT In addition to increasing the share of natural gas
products, we also focus on lower carbon/higher
value-added petrochemicals, and alternative fuels
such as hydrogen and electro mobility options.
In 2019, OMV and AustroCel Hallein GmbH signed
a multi-year agreement to supply advanced bio-
ethanol. The fuel components will be derived exclu-
sively from spruce-based cellulose, which is a scrap
material in the sawmill industry. The sustainable
source material of these fuel components leads them
to be classified as “advanced biofuels.” In future
they will be added to OMV gasoline to fulfill legal
additive requirements for reducing the carbon
intensity of fuels.
In 2019, OMV achieved an outstanding CDP Climate
Change score of A – (Leadership) for the fourth time
in a row. With its CDP Climate Change score, OMV
is among fourteen companies in the global oil
and gas sector that achieved a leadership score and
among the top five companies across all sectors in
Austria.
Business principles and social
responsibility performance
Business ethics and compliance
OMV has a Code of Business Ethics in place that
applies to all employees. A dedicated cross-regional
compliance organization, consisting of 34 compli-
ance experts, ensures that OMV standards are con-
sistently met across the Group. In 2019, 11,144
employees participated in online training on business
ethics. In addition, 514 employees attended class-
room trainings on business ethics. The “Integrity
Platform” provides an anonymous whistleblower
mechanism for OMV employees and external stake-
holders, such as suppliers, that they can use to
report issues of non-compliance with legal regula-
tions, the Code of Business Ethics, or other internal
guidelines of the OMV Group.
Supplier compliance
OMV has a Code of Conduct in place that ensures
suppliers support OMV’s principles. It also mitigates
supply chain risks such as forced labor, slavery,
corruption, and human trafficking. All suppliers are
obliged to comply with the content of the Code
of Conduct. In 2019, OMV performed a comprehen-
sive assessment in terms of the environmental,
social, and governance (ESG) performance of six
suppliers and conducted twelve audits that include
sustainability elements. OMV will follow the defined
road map and plans to perform more than ten
audits including sustainability elements in 2020.
Human rights
Following the UN Guiding Principles on Business and
Human Rights, OMV considers human rights to
be an important aspect of our risk management ap-
proach which is integrated into our decision- making
processes. In 2019, we conducted five human
rights risk assessments at country level to evaluate
OMV’s human-rights-related activities in existing
operations and assess any human rights risk in po-
tential future operations. A total of 9,241 employees
received training on human rights topics through
the e-learning tool and in-person training sessions
(2018: 243). As professional training is essential to
ensure compliance with our human rights commit-
ment, we have set ourselves the goal of training,
by 2025, all employees who are highly exposed to
human rights topics, such as security, human
resources, procurement, and community relations
managers. By 2019, 82% of the target group was
trained. In addition, an internal awareness campaign
on human rights was implemented. No incidents
of human rights violations (child labor, harm to indig-
enous people, or discrimination) were reported in
2019 (2018: 0).
Community relations and development
OMV maintains an active partnership with local
communities in all countries in which the Company
does business and is committed to adding value
to these societies. As part of OMV’s stakeholder di-
alog, we have implemented community grievance
mechanisms at all operating sites. In 2019, OMV
registered 1,196 grievances (2018: 1,058) from the
community grievance mechanism. All of the griev-
ances were handled in accordance with OMV’s lo-
calized Community Grievance Management (CGM)
procedures, which stipulate a stringent approach to
systematically receiving, documenting, addressing,
50
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT and resolving grievances in all of the countries where
we operate. OMV’s Sustainability Strategy 2025
has set the goal of aligning the CGM system at all
sites with the Effectiveness Criteria of the United
Nations Guiding Principles. We are implementing
this target by conducting assessments that include
reviews of management processes and consulta-
tions with internal and external stakeholders. The
assessments result in recommendations and tailored
action plans to improve grievance management at
site level. The action plans are implemented by local
management and monitored by the Corporate func-
tion. In 2019, the CGM assessments in Romania and
Austria were finalized and the assessment at the
Burghausen refinery in Germany was conducted. The
assessments are performed by an independent third-
party consulting firm. The sites already assessed
represent 96% of all registered grievances at OMV
in 2019.
For more information about OMV’s Environmental,
Social, and Governance (ESG) ratings and the indices
in which OMV is included, see OMV on the Capital
Markets.
For management approaches and performance
details for all material topics, see the stand-alone
OMV Sustainability Report 2019. This report also
serves as the separate consolidated non-financial
report of OMV Aktien gesellschaft in accordance
with section 267a of the Austrian Commercial
Code (UGB).
51
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
Health, Safety, Security, and Environment
Health, safety, security, and protection of the environment are key values at OMV. The integrity
of OMV’s operating facilities, loss prevention, proactive risk management, and acting on climate
change mitigation are essential for reaching OMV’s HSSE vision of “ZERO harm – NO losses.”
HSSE strategy
To achieve this vision, the OMV Group’s HSSE
Strategy 2025 was established as an integral part of
the OMV Sustainability Strategy. The HSSE Strate-
gy focuses on the cross-functional goals of strong
HSSE commitment and leadership, increased effi-
ciency and effectiveness of HSSE processes, man-
agement of HSSE risks, and skilled people, as well
as subject matter goals in the areas of
Health: Improve the ability to work through
integrated health management.
Safety: Build on sustainable safety for people
and plants.
Security: Protect people and assets from
emerging malicious intentional threats.
Environment: Minimize the environmental
footprint throughout the entire lifecycle.
Health, safety, and security
In 2019, the combined Lost-Time Injury Rate (LTIR)
for OMV employees and contractors was 0.34
(2018: 0.30), and our combined Total Recordable
Injury Rate (TRIR) was 0.95 (2018: 0.78). We had
no work-related fatalities.
In Upstream, our combined efforts resulted in an
LTIR of 0.43 (2018: 0.38). The Nawara project and
our SapuraOMV Malaysian operations completed
the year without a lost-time injury (LTI). However,
we had 21 High Potential Incidents (HiPos) which
could have resulted in serious or even fatal injuries
under slightly different circumstances. We continued
to focus on our safety culture program, including
several detailed workshops in Romania and a safety
culture baseline assessment in New Zealand. We
conducted five global contractor performance meet-
ings, which all had a significant HSSE component.
At Hub level, contractor and supplier management
continued to offer opportunities for HSSE improve-
ment through auditing and review.
Downstream’s HSSE performance was outstanding
in 2019 and further improved the LTIR to 0.22
(2018: 0.25). The severity of work accidents in terms
of lost workdays was reduced significantly, by more
than half, compared to 2018. Special emphasis was
placed on contractor management, process safety
assessments and improvement measures, and train-
ing on various emergency and crisis management
scenarios.
OMV Group safety performance
In mn hours worked
Company
Lost-Time Injury Rate
Total Recordable Injury Rate
Contractors
Lost-Time Injury Rate
Total Recordable Injury Rate
Total (Company and contractors)
Lost-Time Injury Rate
Total Recordable Injury Rate
2019
2018
0.51
1.26
0.27
0.81
0.34
0.95
0.29
0.88
0.31
0.74
0.30
0.78
Employees’ well-being and health are the foundation
for successful company performance as they are
core elements of ensuring the ability to work. In
2019, OMV continued its long tradition of offering
healthcare and preventive health programs, such as
cardiovascular disease prevention programs, cancer
awareness sessions, vaccinations, first aid courses,
work-life balance awareness sessions, and health
hours, which go far beyond local legal requirements.
52
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT During 2019, a number of key safety-related activi-
ties took place:
Environmental management
The life-saving rules titled “Protect Your and Your
Colleagues’ Lives” were rolled out Group-wide
to all employees and contractors to help prevent
severe workplace incidents. Trainings, booklets,
videos, and info screens were provided for this
purpose.
The Group-wide Safety Culture Program was
continued with a focus on hazard awareness
workshops and employee engagement in iden-
tifying hazards and managing risks. More than
15,000 HSSE walk-arounds provided opportu-
nities for dialog on site between the workforce
and management.
Contractor HSSE management is key to OMV
Group’s safety performance. It starts in the early
phases of procurement. For this reason, the
internal regulations framework was reviewed,
and HSSE requirements were formally inte-
grated into the updated source-to-contract pro-
cess and other business processes.
A new HSSE reporting tool was set up and rolled
out on time. The system will further support the
sharing of lessons learned from safety reports and
incident investigations, and will provide up-to-
date analytical features.
A still unstable geopolitical environment combined
with enduring regional conflicts resulted in the 2019
security emphasis remaining on the Middle East
and North Africa. Notwithstanding the challenges of
operating securely in Yemen, Libya, and Tunisia, the
threat of terrorist attacks on mainland Europe and
elsewhere further validate OMV’s travel security
procedures governing all company travelers. In addi-
tion to the enduring terrorist threat, other threats
such as political extremism, organized crime, and
asymmetric cyber threats remain very credible.
The Resilience Standard on incident, emergency,
crisis, and business continuity management was
updated. Resilience capabilities were further
improved in 2019, e.g., by training on various sce-
narios and reviewing the corresponding plans.
Due to the nature of its operations, OMV has an
impact on the environment. The Group strives to
minimize that impact at all times, particularly in
terms of spills, energy efficiency, greenhouse gas
(GHG) emissions, as well as water and waste man-
agement. OMV strives to optimize processes to use
natural resources as efficiently as possible and to
reduce emissions and discharges.
OMV is strongly committed to climate change miti-
gation and responsible resource management, and
has set targets to reduce its carbon footprint. The
principal targets are to reduce the carbon intensity
of OMV’s overall operations by 19% and the carbon
intensity of products by 4% by 2025, both compared
with 2010. This will be achieved by improving
energy efficiency across all operations, implementing
GHG emission reduction projects, and increasing
the share of natural gas and petrochemical products
in our product portfolio.
To address future challenges, we have set up two
new departments. “Carbon Management” will focus
on reducing the GHG emissions of our existing
assets and finding further opportunities. “New
Energy Solutions” will develop small- and large-
scale, low-carbon technologies for energy supply,
for mobility, and for industry. This unit will connect
to OMV’s core competencies and maintain a direct
link to the existing business.
In 2019, there was one major hydrocarbon spills
(level 3 out of five levels. 2018: two). The total vol-
ume of hydrocarbon spilled was 56,641 liters
(2018: 36,874 liters). OMV continued to improve its
oil spill response preparedness and capabilities.
Key environmental actions and achievements in
2019:
Achieved for the fourth time in a row a CDP
Climate Change A – leadership score
Continued to implement our commitments as
endorser of the World Bank’s “Zero routine flaring
by 2030” initiative and developed routine flaring
and venting phase-out plans and methane emis-
sions reduction plans
53
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Continued to reduce the carbon footprint of our
operations by, e.g., commissioning two new
gas-to-power plants, which use previously flared/
vented gas in OMV Petrom Upstream, and
installing photovoltaic cells at another ten retail
filling stations in Romania.
Validated three GHG emission reduction projects
(LTS Boldeşti, G2P Gornet, OMV South Tunisia
Gas Valorization Project) according to ISO 14064-2
and verified a reduction of GHG emissions total-
ing 209,242 t of CO2eq
Continued the OMV Petrom Pipeline Integrity
Management Program to reduce number and
volume of oil spills
Continued to implement projects to reduce energy
consumption in refineries, such as advanced
condensate recovery and reuse, and an enhanced
firing system in the cogeneration plant in Petro-
brazi
Continued to modernize water stations and dis-
tribution systems in OMV Petrom Upstream,
such as the Săcuieni Water Station in the Munte-
nia Asset and the rehabilitation of the industrial
water distribution system in four parks in Suplac
Continued to upgrade facilities with state-of-the-
art technologies to reduce environmental impact
and increase operational efficiency, such as the
modernization of the Arad fuel storage in Romania
Supported biodiversity projects in New Zealand,
such as the partnership with Rotokare Scenic
Reserve Trust to reintroduce the endemic hihi bird
(stitchbird) and the partnership with Ngāti Koata
and the Department of Conservation for the
Moawhitu lake and wetland regeneration project
54
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
Employees
We know that it is our roughly 20,000 employees who turn our strategy into results and success.
We are proud of the result we have achieved together. Trust and pride in the organization fuel our
employees’ energy and determination to tackle challenges and to focus on innovative solutions to
make us even stronger.
OMV’s People Strategy
We continue to build on our strategic priorities to
unlock our organization’s full potential and to
strengthen the foundation for growth and success:
Strengthen leadership capability
Focus on culture and performance
Increase organizational agility
Ensure OMV remains a great place to work
Highlights of 2019
The development of our people was at the core of
our human resources agenda in 2019. We broadened
the leadership development opportunities we offer
by adding leadership refreshment and leadership
essential courses. We also expanded our selection
of training courses in functional, technical, and
business skills available to all. Our belief in contin-
uous learning as a driver of success is reflected
in our development approach, which ensures that
people can grow in their jobs. Our experts are a
key pillar of our organization. To foster their career
development, we launched the Expert career path.
The Group-wide calibration of job evaluations and
the introduction of a standardized job title system
provides further clarity and consistency. It estab-
lishes the foundation necessary for employees to
take ownership of their own careers. The associated
salary bands position us competitively in our indus-
try. The “Thx for doing great!” recognition program
received an HR award for linking principle-led
behavior and the company purpose, and for foster-
ing a feedback culture.
In September, we launched our Digital Academy to
prepare for OMV’s digital transformation. The Acad-
emy offers more than 250 courses covering every-
thing from basic digital and function-specific digital
skills to leadership skills. All of this is intended to
equip our people to thrive in a digital world. The
courses are structured in bite-size lessons that can
be completed anywhere, anytime.
Number of training participants 1,2,3
Austria
Romania/rest of Europe
Middle East and Africa
Rest of the world
Total
2019
3,579
11,317
715
712
16,323
2018
2,682
11,091
435
410
14,618
Money spent on training per region 1,2,3
in EUR
Austria
Romania/rest of Europe
Middle East and Africa
Rest of the world
Total
2019
2,722,418
4,836,744
381,065
330,999
2018
2,643,692
3,895,112
144,238
385,599
8,271,226 7,068,641
1 Excluding conferences and trainings for external employees
2 Number of employees who received at least one training
3 Excluding Gas Connect Austria GmbH, Avanti GmbH, DUNATÀR
Köolajtermék Tároló és Kereskedelmi Kft., and SapuraOMV Upstream
Sdn. Bhd.
Our organizational structure is a key enabler of orga-
nizational agility. Splitting Downstream into the
Refining & Petrochemical Operations and Marketing
& Trading divisions aligns OMV’s organizational
structure consistently with the value chain. It also
ensures our readiness to tackle strategic challenges
in the future. Finance, IT, and Employee Services
were centralized to further streamline our organiza-
tional structure and to reduce interfaces.
The integration of the businesses acquired in New
Zealand and Malaysia made the OMV family even
more international and provides additional career
and learning opportunities.
55
Diversity
Work-life balance is a key driver of gender diversity.
In 2019, we were certified as a family-friendly
employer in Austria in recognition of the opportuni-
ties we offer to facilitate combining career and par-
enthood. In addition to our well-established OMV
daycare, we also offer summer camps to school
children. Participation rates tell us that childcare
during school holidays is highly appreciated.
The percentage of women in the Group is about
26%, of which 19.6% are in advanced management
and executive positions. We have defined clear
actions to reach our goal of increasing this share to
25% by 2025. Providing dual career opportunities
and tailored development plans for female talent
supports this ambition. Within our Leadership Pro-
grams, the proportion of women was 26% in 2019.
Employee key figures
At the end of 2019, OMV employed 19,845 persons
in 24 countries. Compared with 2018, the number of
employees decreased by 1.9%. This decrease, in
combination with our results clearly shows an
increase in the efficiency and productivity of our
people year by year.
Employees 1
Employees by region
Austria
Romania/rest of Europe
Middle East and Africa
Rest of world
Total number of employees
Diversity
Female
Male
Female Senior Vice Presidents 2
Number of nationalities 2
2019
2018
3,965
14,219
686
975
19,845
3,632
15,232
683
684
20,231
in %
in %
in %
26
74
16
77
26
74
17
74
1 As of year end
2 Excluding Gas Connect Austria GmbH, Avanti GmbH, DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft., and SapuraOMV Upstream Sdn. Bhd.
56
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT OMV Group Business Year
In the year 2019, OMV recorded a clean CCS Operating Result of EUR 3.5 bn despite the challenging
market environment. This remarkable result was driven by strong results in both Upstream and
Downstream business segments and strict cost discipline. In 2019, the operating cash flow amounted
to EUR 4.1 bn. Following the payment of the highest dividend in OMV history, an organic free cash
flow after dividends of EUR 1.3 bn was achieved, which contributed to finance major acquisitions in
2019 such as the 15% stake in the ADNOC Refining business and the 50% interest in SapuraOMV.
Business environment
The global economic cooldown beginning in 2018
continued throughout 2019. Economic research
institutes were forced to retract their forecasts sev-
eral times during the year. Global economic output
increased by 2.9%, 0.7 percentage points less than
in 2018. Growth in developing and emerging econ-
omies (+3.7%) led industrialized countries (+1.7%),
a gap that grew even larger in 2019 than it had been
in recent years. Global trade volume increased
minimally, by 1.0%, being the weakest growth in
ten years. This was attributable mainly to escalating
trade conflicts, heavier sanctions, and a drop in
commodities prices. The result was a negative effect
on investments and industry, whereas services
and private consumption saw growth remain stable
nearly throughout the entire year.
Despite a significant reduction in the foreign trade
volume with China and stalled exports, the econom-
ic situation in the United States proved relatively
robust. As in the previous year, private consumption
rose by 2.9%, remaining the key pillar of the econ-
omy. This enabled a GDP growth of 2.3%. China’s
economy grew at a pace of 6.1% after 6.6% in
the prior year. In the eurozone, where GDP growth
slowed from 1.9% to 1.2%, high-risk geopolitical
issues and unresolved Brexit questions put the
brakes on more positive economic development.
Private consumption (+1.1%) and exports (+2.4%)
grew more slowly than in the previous year.
The economic environment in Central and Eastern
European countries (GDP growth of between 2.3%
and 4.9%) continued to be favorable. However, this
trend only partlially compensated for the minimal
increase in economic output by major EU countries
(GDP growth of between 0.2% and 1.3%). Growth
in the EU-28 was 1.5% overall, just below the aver-
age for the industrialized countries.
In Germany, sectors dependent on demand from
abroad were particularly hard hit by the downturn.
Exports only grew by +0.9%. The country’s GDP
growth of 0.6% was well below the average for the
last ten years of 1.3%. Key sectors, such as the
automotive and steel industries, suffered sales
declines of 5% to 10%. However, private and public-
sector consumption grew by 1.6% and 2.5%, respec-
tively, which was faster than in 2018. In terms of
investments, this growth shifted to the construction
industry (+3.8%), while investments in equipment
were almost stagnant.
Austria experienced a delay in the onset of the down-
turn in the international economic climate. The
country’s GDP growth was 1.7%. Unlike in previous
years, exports rose by 2.8%, somewhat slower than
imports. The industrial production index was up
1.6%, and investments stayed at a relatively high
level, growing 3.4%. Consumption by private house-
holds increased by 1.3%, while growth was only
0.6% in the public sector. This contributed to the
generation of a notable budget surplus of 0.6% of
GDP for the first time.
In 2019, Romania was one of the few EU countries
that was able to bump up its economic output year
over year. Its GDP growth of 4.1% was mainly the
result of domestic consumption. In the first six
months of 2019, it was also supported by intensive
economic activity in the course of the Romanian
presidency of the Council of the European Union.
The slight drop in industrial production, the current
account deficit of 5.5% in relation to GDP, and the
high rate of inflation of 3.9% compared with other
EU countries dulled the economic picture.
Global oil demand rose by 0.8%, or 0.8 mn bbl/d,
to a new record high level of 100.1 mn bbl/d in 2019.
Whereas demand by the OECD member states de-
clined by 0.3 mn bbl/d, or 0.6%, it rose in non-OECD
countries by 1.1 mn bbl/d, or 2.1%. Asian countries
accounted for more than 80% of this growth in de-
mand.
57
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT In 2019, global oil production increased by 0.2%,
or 0.2 mn bbl/d, to 100.5 mn bbl/d. The market was
oversupplied, and inventories were built up by
0.4 mn bbl/d. The United States put an additional
1.7 mn bbl/d (+11%) of oil on the market and there-
fore more than compensated for the lower pro-
duction levels of other non-OPEC countries. Other
major influences on the supply side were the sanc-
tions-related decline in Iran’s production totaling
1.2 mn bbl/d as well as the decrease in Venezuela’s
oil production and the reduction in Saudi Arabia’s
production by 0.5 mn bbl/d, respectively. In contrast,
Iraq, the United Arab Emirates, Nigeria, and Libya
were able to expand oil production. All told, how-
ever, the production volume of the OPEC countries
declined 6%, or 1.9 mn bbl/d, to 30.0 mn bbl/d,
with market coverage (including 5.5 mn bbl/d NGL)
also down to 35%.
Against the backdrop of geopolitical tensions, oil
prices rose by around 50% from the start of the year
to mid-May 2019, reaching the high for the year at
nearly USD 75/bbl. After that, the economic slow-
down, higher than expected US production, and the
extension of the market cooperation agreement by
the OPEC alliance covering 24 countries were strong
stabilizing forces on prices in the summer. An attack
on Saudi production facilities in mid-September
caused a loss of capacity of 5.7 mn bbl/d and price
spikes, but thanks to fast repairs, these factors influ-
enced market developments only briefly. In early
December, the decision by the OPEC alliance to ex-
pand its oil production cut from 1.2 to 1.7 mn bbl/d
dispelled fears of pending overproduction and sup-
ported the price level.
In 2019, the price of Brent crude stood at an aver-
age of USD 64.30/bbl, nearly 10% below the prior-
year level. The price displayed volatility of around
50% over the course of the year. The EUR/USD
exchange rate fluctuated between 1.15 and 1.09.
Using the annual average of 1.12, the appreciation
of the US currency against the euro is calculated
at 5% in 2019. Due to these opposing trends, the
prices of key products traded on the Rotterdam
market for mineral oil products changed only mini-
mally.
Austrian energy demand likely increased by more
than 1% in 2019 and therefore compensated for the
decline in 2018. Demand for the primary energy
source oil rose by around 1.5%, while demand for
natural gas grew by 2.4%. Gas-fired power plants
generated 17% more electricity. The market for space
heating saw surplus demand of less than 1% due
to weather conditions, and industrial consumption
increased only slightly as well, in response to eco-
nomic conditions. Domestic natural gas production
dropped by 9% to 10 TWh. Net imports grew to
121 TWh, covering not only 90% of the market
demand of almost 100 TWh, but also building up
storage levels to a record high of 94 TWh. At
the end of the year, natural gas storages were 97%
filled, compared with 64% in the previous year.
Sales of mineral oil products in the Central and
Southeast European countries relevant to OMV rose
by around 2.9% to about 150 mn t in 2019. In
Austria, the market volume reached 11.4 mn t, with
demand for fuels up 0.6% and demand for heating
oils stagnant. Total sales in Germany climbed by
2.8 mn t to over 98 mn t. Fuel sales grew moderately
by 0.7% and heating oil sales increased sharply by
nearly 13%. Romania posted the strongest growth
in Eastern Europe thanks to sales growing by more
than 5%.
58
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Crude price (Brent) – monthly average
In USD/bbl
90
85
80
75
70
65
60
55
50
45
40
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sept.
Oct.
Nov.
Dec.
Brent price 2019
Brent price 2018
In Downstream, net special items amounted to
EUR 31 mn (2018: EUR (219) mn) and were mainly
related to temporary hedging effects (EUR 135 mn),
largely offset by environmental provisions at OMV
Petrom in the amount of EUR (43) mn and impair-
ments of assets of EUR (30) mn.
In Corporate and Other, net special items amounted
to EUR (24) mn in 2019 (2018: EUR (26) mn). Posi-
tive CCS effects of EUR 110 mn (2018: EUR 27 mn)
were recognized in 2019.
The OMV Group’s reported Operating Result slight-
ly rose to EUR 3,582 mn (2018: EUR 3,524 mn).
The net financial result improved to EUR (129) mn
(2018: EUR (226) mn). With a Group tax rate of
38% (2018: 40%) the net income amounted to
EUR 2,147 mn (2018: EUR 1,993 mn). The net in-
come attributable to stockholders was EUR 1,678 mn
compared to EUR 1,438 mn in 2018. Earnings Per
Share increased to EUR 5.14 compared to EUR 4.40
in 2018.
Financial review of the year
Consolidated sales increased by 2% to
EUR 23,461 mn. Higher Upstream sales volumes,
following OMV’s acquisitions in New Zealand,
Malaysia and the United Arab Emirates, were par-
tially offset by unfavorable market environment
developments. The clean CCS Operating Result
slightly decreased from EUR 3,646 mn in 2018 to
EUR 3,536 mn. The Upstream result went down to
EUR 1,951 mn (2018: EUR 2,027 mn), whereas in
Downstream the clean CCS Operating Result slight-
ly rose from EUR 1,643 mn to EUR 1,677 mn in
2019. In 2019, the clean Group tax rate was 38%
(2018: 39%). The clean CCS net income was nearly
flat at EUR 2,121 mn (2018: EUR 2,108 mn). The
clean CCS net income attributable to stockholders
amounted to EUR 1,624 mn (2018: EUR 1,594 mn).
The clean CCS Earnings Per Share were EUR 4.97
(2018: EUR 4.88).
Net special items of EUR (64) mn were recorded in
2019 (2018: EUR (149) mn). In Upstream, net special
items in 2019 amounted to EUR (71) mn (2018:
EUR 95 mn). In 2019, net special items were mainly
related to the re-evaluation of the redetermination
payment in the Yuzhno Russkoye field (EUR (58) mn)
and the negative impact triggered by the reclassi-
fication of marginal fields in Romania to held for
sale following a divestment process (EUR (46) mn),
partially offset by temporary hedging effects of
EUR 53 mn.
59
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Key financials
Sales revenues 1
Clean CCS Operating Result 2
Clean Operating Result Upstream
Clean CCS Operating Result Downstream 2
Clean Operating Result Corporate and Other
Consolidation: elimination of inter-segmental profits
Clean Group tax rate 2
Clean CCS Net income 2
Clean CCS net income attributable to stockholders 2,3
Clean CCS EPS 2
Special items
thereof Upstream
thereof Downstream
thereof Corporate and Other
CCS effects: inventory holding gains/(losses)
Operating Result Group
Operating Result Upstream
Operating Result Downstream
Operating Result Corporate and Other
Consolidation: elimination of inter-segmental profits
Net financial result
Group tax rate
Net income
Net income attributable to stockholders
Earnings Per Share (EPS)
Cash flow from operating activities
Free cash flow before dividends
Free cash flow after dividends
Organic free cash flow before dividends
Organic free cash flow after dividends
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
in EUR mn
in EUR mn
in EUR
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
in EUR mn
in EUR mn
in EUR
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
2019
23,461
3,536
1,951
1,677
(67)
(25)
38
2,121
1,624
4.97
(64)
(71)
31
(24)
110
3,582
1,879
1,847
(91)
(54)
(129)
38
2,147
1,678
5.14
4,056
(583)
(1,441)
2,119
1,261
2018
22,930
3,646
2,027
1,643
(21)
(3)
39
2,108
1,594
4.88
(149)
95
(219)
(26)
27
3,524
2,122
1,420
(47)
28
(226)
40
1,993
1,438
4.40
4,396
1,043
263
2,495
1,715
Δ
2%
(3)%
(4)%
2%
(220)%
n.m.
(1)
1%
2%
2%
n.m.
n.m.
n.m.
n.m.
n.m.
2%
(11)%
30%
(93)%
n.m.
43%
(2)
8%
17%
17%
(8)%
n.m.
n.m.
(15)%
(27)%
1 Sales excluding petroleum excise tax
2 Adjusted for special items; clean CCS figures exclude fuels’ inventory holding gains/losses (CCS effects) resulting from the fuels of refineries
3 After deducting net income attributable to hybrid capital owners and net income attributable to non-controlling interests
Special items and CCS effect
In EUR mn
Clean CCS Operating Result
Special items
thereof: Personnel restructuring
thereof: Unscheduled depreciation
thereof: Asset disposal
thereof: Other
CCS effect
Operating Result
More details on special items and CCS effects can
be found in Note 4 – Segment Reporting – of the
Consolidated Financial Statements.
60
2019
3,536
(64)
(34)
(39)
5
4
110
3,582
2018
3,646
(149)
(40)
51
3
(164)
27
3,524
Δ
(3)%
n.m.
n.m.
n.m.
n.m.
n.m.
n.m.
2%
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Notes to the income statement
Sales Revenues
In EUR mn
Sales to third parties
Upstream
Downstream
thereof Downstream Oil
thereof Downstream Gas
Corporate and Other
Total
Intersegmental sales
Upstream
Downstream
thereof Downstream Oil
thereof Downstream Gas
thereof intrasegmental elimination Downstream
Corporate and Other
Total
Total Sales (not consolidated)
Upstream
Downstream
thereof Downstream Oil
thereof Downstream Gas
thereof intrasegmental elimination Downstream
Corporate and Other
Total
Sales of the Upstream Business Segment increased
by 12%, impacted mainly by the new acquisitions
in Abu Dhabi, New Zealand and Malaysia. Increase
in the Downstream Business Segment was mainly
driven by higher quantities sold in Downstream Oil,
amounting to 55% of the total not consolidated
sales, partially offset by the decrease of sales in
Downstream Gas. After the elimination of the
intersegmental sales, total sales revenues to third
parties increased by 2% to EUR 23,461 mn. Sales
to third parties split by geographical areas can be
found in the Notes to the Consolidated Financial
Statements (Note 4 – Segment Reporting).
2019
2018
∆
2,583
20,874
15,039
5,835
4
23,461
2,170
20,756
14,707
6,049
4
22,930
3,656
84
46
141
(103)
341
4,081
3,386
74
48
166
(139)
335
3,795
6,239
20,958
15,085
5,976
5,556
20,830
14,755
6,215
(103)
345
27,542
(139)
339
26,725
19%
1%
2%
(4)%
(8)%
2%
8%
14%
(4)%
(15)%
26%
2%
8%
12%
1%
2%
(4)%
26%
2%
3%
% of
Group
total
11%
89%
64%
25%
0%
100%
90%
2%
1%
3%
(3)%
8%
100%
23%
76%
55%
22%
0%
1%
100%
Other operating income decreased to EUR 315 mn
in 2019 (2018: EUR 517 mn). In 2019 OMV agreed
to sell its 69% interest in Maari field, New Zealand
and this led to the reclassification of the assets
and liabilities to “held for sale”, which triggered a
pre-tax write-up amounting to EUR 34 mn. 2018
was impacted by reversals of past impairments in
Romania and Norway due to significant improve-
ment of operating performance (EUR 105 mn). Fur-
thermore, a gain of EUR 52 mn related to the dis-
posal of the Upstream companies active in Pakistan
and a gain on disposal of the subsidiary OMV Tunisia
Upstream GmbH amounting to EUR 39 mn contrib-
uted to the 2018 income.
Income from equity-accounted investments
amounted to EUR 386 mn (2018: EUR 391 mn) and
mainly reflected the 36% share of the result from
the Borealis Group amounting to EUR 314 mn (2018:
EUR 327 mn).
61
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Purchases (net of inventory variation), which
include the cost of goods and materials used for
conversion into finished or intermediary products
as well as goods purchased for reselling, as
well as inventory changes and write-offs, totaled
EUR (13,608) mn (2018: EUR (14,094) mn).
Other operating expenses totaled EUR (322) mn
in 2019 (2018: EUR (485) mn). 2018 included a loss
on the divestment of OMV Samsun Üretim Sanayi ve
Ticaret A.Ş. of EUR (150) mn. Research and devel-
opment (R&D) expenses, which are included in
Other operating expenses, amounted to EUR (49) mn
(2018: EUR (40) mn).
The net financial result improved significantly to
EUR (129) mn (2018: EUR (226) mn), mainly as a
result of an improved foreign exchange result and
higher interest income. Dividend income amounted
to EUR 5 mn (2018: EUR 20 mn).
In EUR mn
In EUR mn
In EUR mn
in %
2019
(1,207)
(100)
(1,306)
38
2018
(1,007)
(298)
(1,305)
40
2019
23,461
315
386
(13,608)
(1,695)
(496)
(2,337)
(1,892)
(229)
(322)
3,582
(129)
(1,306)
2,147
75
393
1,678
2018
22,930
517
391
(14,094)
(1,594)
(392)
(1,827)
(1,749)
(175)
(485)
3,524
(226)
(1,305)
1,993
78
477
1,438
Δ
2%
(39)%
(1)%
(3)%
6%
26%
28%
8%
31%
(34)%
2%
(43)%
0%
8%
(3)%
(18)%
17%
Income taxes
Current taxes
Deferred taxes
Taxes on income and profit
Effective tax rate
The Group’s effective tax rate decreased slightly to
38% (2018: 40%). For further details, please refer to
Note 12 – Taxes on income and profit – of the Con-
solidated Financial Statements.
Summarized income statement
In EUR mn
Sales revenues
Other operating income
Net income from equity-accounted investments
Purchases (net of inventory variation)
Production and operating expenses
Production and similar taxes
Depreciation, amortization and impairment charges
Selling, distribution and administrative expenses
Exploration expenses
Other operating expenses
Operating Result
Net financial result
Taxes on income and profit
Net income for the year
thereof attributable to hybrid capital owners
thereof attributable to non-controlling interests
Net income attributable to stockholders of the parent
62
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Cash flow performance
Cash flow from operating activities amounted to
EUR 4,056 mn, down by EUR (340) mn compared
to 2018, significantly impacted by negative working
capital effects.
Cash flow from investing activities showed an
outflow of EUR (4,638) mn in 2019 compared to
EUR (3,353) mn in 2018, containing a cash outflow
of EUR (460) mn related to the acquisition of a
50% interest in the new company SapuraOMV and
a cash outflow of EUR (2,095) mn related to the
acquisition of a 15% stake in the ADNOC Refining
business (including related transaction costs and
FX hedging impacts). 2018 included the acquisition
of a 20% stake in an offshore concession in Abu
Dhabi that led to an outflow of USD (1.5) bn and the
acquisition of Shell’s Upstream business in New
Zealand that led to a cash outflow of EUR (350) mn.
Cash flow from investing activities in 2019 included
a cash outflow of EUR (113) mn related to the
financing agreements for the Nord Stream 2 pipe-
line project (2018: EUR (275) Mio).
Free cash flow declined to EUR (583) mn (2018:
EUR 1,043 mn).
Cash flow from financing activities showed an
outflow of EUR (484) mn compared to EUR (975)
mn in 2018. In 2019 the issuance of bonds totaling
EUR 1.3 bn was only partially offset by repayments
of long-term debt, while in 2018 the issuance of
new bonds was more than offset by the repayment
of long-term debt.
Free cash flow after dividends decreased to
EUR (1,441) mn in 2019 (2018: EUR 263 mn).
Capital Expenditure (CAPEX)
CAPEX in 2019 amounted to EUR 4,916 mn (2018:
EUR 3,676 mn), mainly driven by the acquisitions of
a 15% stake in the ADNOC Refining business as
well as the Sapura Upstream business in Malaysia.
Upstream CAPEX decreased to EUR 2,070 mn
(2018: EUR 3,075 mn), mainly as major acquisitions
in New Zealand and Abu Dhabi took place in 2018,
partially offset by an increase in CAPEX due to the
acquisition in Malaysia in 2019. Moreover, the
Upstream Business Segment invested mainly in field
redevelopments, drilling and work-over activities
in Romania as well as in field developments in Abu
Dhabi and Norway.
Downstream CAPEX increased to EUR 2,774 mn
(2018: EUR 576 mn), of which EUR 2,687 mn are
attributable to Downstream Oil (2018: EUR 506 mn)
and EUR 87 mn to Downstream Gas (2018:
EUR 70 mn), mainly related to the acquisition of the
ADNOC Refining business.
In the Corporate and Other segment, CAPEX
amounted to EUR 72 mn (2018: EUR 25 mn).
Capital expenditure 1
In EUR mn
Upstream
Downstream
thereof Downstream Oil
thereof Downstream Gas
Corporate and Other
Total capital expenditure
+/– Changes in the consolidated Group and other adjustments
– Investments in financial assets and acquisition of non-controlling interest
Additions according to statement of non-current assets
(intangible and tangible assets)
+/– Non-cash changes
Cash outflow due to investments in intangible assets and property,
plant and equipment
+ Cash outflow due to investments, loans and other financial assets
+ Acquisitions of subsidiaries and businesses net of cash acquired
Investments as shown in the cash flow statement
2019
2,070
2,774
2,687
87
72
4,916
(10)
(2,155)
2018
3,075
576
506
70
25
3,676
(86)
(4)
∆
(33)%
n.m.
n.m.
25%
191%
34%
88%
n.m.
2,751
(594)
3,585
(393)
(23)%
(51)%
2,158
2,265
460
4,883
3,193
305
357
3,855
(32)%
n.m.
29%
27%
1 Includes acquisitions as well as equity-accounted investments and other interests; adjusted for capitalized decommissioning costs, exploration
wells that have not found proved reserves, borrowing costs and other additions that by definition are not considered capital expenditure
63
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT The reconciliation of total capital expenditures to
additions according to the statement of non-current
intangible and tangible assets (for details, see
Note 14 – Intangible assets – and Note 15 – Property,
plant and equipment) mainly relates to additions,
which by definition are not considered to be capital
expenditures, as well as investments in financial
assets and changes in the consolidated Group.
The difference between the additions shown in the
statement of non-current assets and the investments
reported in the cash flow statement partially arise
from additions to intangible and tangible assets that
did not affect investing cash flows during the period
(including accrued liabilities arising from invest-
ments, new right of use assets, decommissioning
and capitalized borrowing costs). In addition, cash
outflows due to investments in financial assets as
well as the acquisition of subsidiaries and busi-
nesses are included in the overall investments shown
in the cash flow statement.
Statement of financial position
Summarized statement of financial position (condensed)
In EUR mn
Assets
Non-current assets
Intangible assets and property, plant and equipment
Equity-accounted investments
Other non-current assets
Deferred tax assets
Current assets
Inventories
Trade receivables
Other current assets
Assets held for sale
Equity and liabilities
Equity
Non-current liabilities
Pensions and similar obligations
Lease liabilities
Bonds and other interest-bearing debts
Decommissioning and restoration obligations
Other provisions and liabilities
Deferred tax liabilities
Current liabilities
Trade payables
Lease liabilities
Bonds and other interest-bearing debts
Provisions and other liabilities
Liabilities associated with assets held for sale
Total assets/equity and liabilities
2019
2018
Δ
28,950
20,642
5,151
2,470
686
11,248
1,845
3,042
6,360
177
16,863
13,961
1,111
934
5,882
3,872
1,031
1,132
9,395
4,155
120
688
4,432
156
40,375
24,896
18,432
3,011
2,695
759
12,017
1,571
3,420
7,026
47
15,342
11,917
1,096
—
4,909
3,673
1,508
731
9,680
4,401
—
843
4,436
22
36,961
16%
12%
71%
(8)%
(10)%
(6)%
17%
(11)%
(9)%
n.m.
10%
17%
1%
n.m.
20%
5%
(32)%
55%
(3)%
(6)%
n.m.
(18)%
0%
n.m.
9%
Total assets increased by EUR 3,414 mn to
EUR 40,375 mn.
Intangible assets and property, plant and equip-
ment were mainly impacted by the acquisition of a
50% stake of the issued share capital in SapuraOMV
Upstream Sdn. Bhd., on which more details are
provided in Note 3 – Changes in group structure –
of the Consolidated Financial Statements. In addi-
tion to this, the first time adoption of IFRS 16 Leases
standard lead to an increase of property, plant and
equipment (see Note 2 – Accounting policies, judge-
ments and estimates – of the Consolidated Financial
Statements for further details). Equity-accounted
investments increased by EUR 2,141 mn, mainly
64
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT attributable to the acquisition of a 15% stake in the
ADNOC Refining business (see Note 3 – Changes
in group structure – of the Consolidated Financial
Statements). Proportional net income from equity-
accounted investments was largely balanced by
distribution of dividends. Decreased derivatives posi-
tion was the main factor for the decrease in other
non-current assets, while it was partially offset by
additional drawdowns under the financing agree-
ments for the Nord Stream 2 pipeline project.
Current assets decreased by EUR 770 mn and
amounted to EUR 11,248 mn as of December 31,
2019, mainly as a result of a decreased cash and
cash equivalents position following the acquisitions.
Assets held for sale increased by EUR 130 mn,
mainly related to the reclassification to “held for
sale” of a 69% interest in Maari field, located in
New Zealand’s offshore Taranaki Basin and 40 mar-
ginal oil and gas fields in Romania.
Equity (including non-controlling interest) rose
by 10% in comparison to 2018. The equity ratio
remained unchanged to 2018 and stood at 42%.
Non-current decommissioning and restoration
obligations increased by EUR 199 mn, mainly
resulting from the acquisition of SapuraOMV
Upstream Sdn. Bhd. and reassessment effects.
Lease liabilities for previously unrecognized oper-
ating lease commitments were first recognized in
2019 due to the first time adoption of the new stan-
dard IFRS 16 Leases and amounted to EUR 706 mn
(see Note 2 – Accounting policies, judgements and
estimates – of the Consolidated Financial State-
ments for further details). Current and non-current
bonds and other interest bearing debts increased
by EUR 818 mn to EUR 6,570 mn, primarily related
to the issuance of bonds in 2019 totaling EUR 1.3 bn,
partially compensated by the repayment of a EUR
500 mn bond. Current- and non-current other
liabilities decreased mainly due to a lower deriva-
tives position and the reclassification of previous
finance lease liabilities to lease liabilities upon the
implementation of IFRS 16. Deferred tax liabilities
increased to EUR 1,132 mn (2018: EUR 731 mn)
mainly due to the acquisition of a 50% stake of the
issued share capital in SapuraOMV Upstream Sdn.
Bhd., for which more details are provided in Note 3
– Changes in group structure – of the Consolidated
Financial Statements. Liabilities associated with
assets held for sale increased by EUR 134 mn,
mainly related to the reclassification to “held for
sale” of a 69% interest in Maari field, located in
New Zealand’s offshore Taranaki Basin and 40 mar-
ginal oil and gas fields in Romania.
Gearing ratio
Gearing ratio
Bonds
Lease liabilities
Liabilities on finance leases
Other interest-bearing debts
Debt
Cash and cash equivalents 1
Net debt
Equity
Gearing Ratio
1 Including cash and cash equivalents that were reclassified to assets held for sale.
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
2019
5,802
1,053
—
769
7,624
2,938
4,686
16,863
28
2018
5,007
—
288
745
6,040
4,026
2,014
15,342
13
Δ
16%
n.m.
n.m.
3%
26%
(27)%
133%
10%
15
65
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Upstream
In the Upstream Business Segment, OMV continued to reshape its portfolio in line with the focus on
improved asset base quality and reserves growth in 2019. Production reached a new record at more
than 500 kboe/d in the fourth quarter 2019. Production costs fell below USD 7.0/boe, while the one-
year Reserve Replacement Rate reached 135% at year-end.
At a glance
Clean Operating Result
Special items
Operating Result
Capital expenditure1
Exploration expenditure
Exploration expenses
Production cost
Total hydrocarbon production
Total hydrocarbon production
Total hydrocarbon sales volumes
Proved reserves as of December 31
Average Brent price
Average realized crude price 2
Average realized gas price 2
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in USD/boe
in kboe/d
in mn boe
in mn boe
in mn boe
in USD/bbl
in USD/bbl
in USD/1,000 cf
2019
1,951
(71)
1,879
2,070
360
229
6.61
487
178
169.3
1,332
64.21
61.66
4.08
2018
2,027
95
2,122
3,075
300
175
7.01
427
156
148.7
1,270
71.31
62.13
4.72
∆
(4)%
n.m.
(11)%
(33)%
20%
31%
(6)%
14%
14%
14%
5%
(10)%
(1)%
(14)%
Note: The net result from the equity-accounted investment in Pearl and Severneftegazprom (“SNGP,” operator of the Yuzhno Russkoye natural gas
field) is reflected in the Operating Results.
1 Capital expenditure including acquisitions, notably the acquisition of Shell‘s Upstream business in New Zealand for USD 579 mn in Q4/18 and a
50% interest in SapuraOMV for USD 540 mn in Q1/19
2 Average realized prices include hedging effects.
Financial performance
The clean Operating Result decreased from
EUR 2,027 mn to EUR 1,951 mn in 2019. There
were adverse effects resulting from higher depre-
ciation of EUR (382) mn, mainly related to OMV’s
acquisitions in New Zealand (Q4/18), the United
Arab Emirates (Q2/18), and Malaysia (Q1/19), as
well as higher production in Norway. Net market
effects had a negative impact of EUR (80) mn,
resulting from lower average realized oil and gas
prices. This was partially offset by lower hedging
losses and positive FX effects. Gains resulting from
improved operational performance amounted to
EUR 386 mn and were mainly a consequence of
OMV’s acquisitions in New Zealand, the United
Arab Emirates, and Malaysia, as well as higher Nor-
wegian output. These effects were negatively im-
pacted by a natural production decline in Romania
and the sale of OMV’s Upstream assets in Pakistan
in Q2/18. In 2019, OMV Petrom contributed
EUR 599 mn to the clean Operating Result com-
pared to EUR 693 mn in 2018.
Net special items amounted to EUR (71) mn in
2019 (2018: EUR 95 mn). The Operating Result
decreased to EUR 1,879 mn (2018: EUR 2,122 mn).
Production cost excluding royalties decreased
by 6% to USD 6.6/boe as a result of higher produc-
tion coupled with a positive FX development. At
OMV Petrom, production cost decreased by 3% to
USD 10.9/boe.
Total hydrocarbon production rose by 60 kboe/d
to 487 kboe/d, primarily due to the acquisitions in
New Zealand, the United Arab Emirates, and Malay-
sia, as well as higher production in Norway. This
was partially offset by lower production in Romania
and the divestment of the Upstream operations in
Pakistan in Q2/18. In addition, production from the
Libyan El Sharara field was shut in at the beginning
of 2019 and only resumed in March. Average pro-
duction in Libya was 16 kboe/d in Q1/19, compared
to an average of around 35 kboe/d in the remaining
quarters. OMV Petrom’s total production went down
by 8 kboe/d to 152 kboe/d, mainly due to natural
66
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
decline. Total sales volumes improved by 14% to
169.3 mn boe (2018: 148.7 mn boe), mainly as a
result of the acquisitions in New Zealand, the United
Arab Emirates, and Malaysia. These contributions
were partially offset by lower sales in Romania and
the divestment of the Upstream operations in
Pakistan in Q2/18.
In 2019, the average Brent price decreased by
10% to USD 64/bbl. The Group’s average realized
crude price declined by 1%. This was mainly due
to hedging losses in 2018. The average realized gas
price in USD/1,000 cf went down by 14% caused
by warmer than-expected winter temperatures,
above- average storage levels all across Europe, and
a doubling of LNG imports to Europe. Realized gas
prices in 2019 were impacted by a realized hedging
loss of EUR (51) mn.
Capital expenditure including capitalized E&A
was EUR 2,070 mn in 2019 (2018: EUR 3,075 mn).
This also included the payment of USD 540 mn for
the purchase of the 50% interest in SapuraOMV in
Q1/19. In 2018, capital expenditure including capi-
talized E&A was mainly related to the acquisition of
a 20% stake in two offshore oil fields in the United
Arab Emirates from ADNOC for USD 1.5 bn in Q2/18
and the acquisition of Shell’s Upstream business
in New Zealand for USD 579 mn in Q4/18. In 2019,
organic capital expenditure was primarily directed
to projects in Romania, Norway, and the United Arab
Emirates. Exploration expenditure increased by
20% to EUR 360 mn and was mainly related to activ-
ities in Romania, Norway, and Austria.
Production
Romania 2
Austria
Kazakhstan 2
Norway
Libya
Tunisia
Pakistan 3
Yemen
Kurdistan Region
of Iraq
United Arab
Emirates
New Zealand
Malaysia 2
Russia
Total
2019
2018
Oil and NGL
in mn bbl
Natural gas 1
in mn boe
in bcf
Total
in mn boe
Oil and NGL
in mn bbl
Natural gas 1
in mn boe
in bcf
Total
in mn boe
24.1
4.0
2.1
16.6
11.1
0.8
–
1.8
156.2
29.2
1.8
90.0
–
3.2
–
–
0.9
14.2
28.9
4.9
0.3
15.0
0.5
–
–
2.4
8.1
4.6
2.1
–
76.1
–
65.2
15.5
218.0
593.2
–
10.9
2.6
36.3
101.8
53.0
8.9
2.4
31.6
11.1
1.4
–
1.8
3.3
8.1
15.5
4.7
36.3
177.9
24.6
4.3
2.2
17.1
10.9
1.3
0.1
1.1
168.7
30.9
1.7
60.9
–
2.9
7.0
–
31.2
5.2
0.3
10.1
–
0.5
1.2
–
55.8
9.4
2.5
27.3
10.9
1.8
1.3
1.1
0.9
11.6
1.9
2.8
1.8
2.1
–
–
66.5
–
16.0
–
218.4
518.2
–
2.7
–
36.4
89.5
1.8
4.8
–
36.4
156.0
1 To convert gas from cf to boe, the following conversion factor was applied in all countries: 1 boe = 6,000 cf; except for Romania, where the following
factor was used: 1 boe = 5,400 cf.
2 The figures above include 100% of all fully consolidated companies.
3 The upstream business in Pakistan was divested on June 28, 2018.
67
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Portfolio developments
In 2019, OMV made considerable progress with the
implementation of the OMV Strategy 2025. OMV
grew and strengthened its Upstream portfolio by
improving the quality of the asset base and through
growing its reserves. On January 31, 2019 a 50%
stake was secured in the newly formed company
SapuraOMV. In June, the purchase price for OMV’s
interest in the Achimov formation was agreed with
Gazprom. The portfolio has been further optimized
with the agreed divestment of the 69% stake in the
Maari oil field in New Zealand, the exit from Mada-
gascar in September, and the streamlining of the
Upstream portfolio in Romania.
Central and Eastern Europe
Portfolio optimization continued in Romania with the
divestment of nine marginal fields on March 1, 2019.
The cumulative oil and gas production of these
fields is approximately 1,000 boe/d. In January 2020,
OMV Petrom signed an agreement to sell 40 onshore
oil and gas fields in Southern Romania, together
producing 1,700 boe/d.
In 2019, drilling activities were sustained at a high
level with a peak of 13 active rigs in OMV Petrom’s
operated licenses in November. A total of 100 new
wells and sidetracks were completed by the end of
2019, maintaining a stable trend compared to pre-
vious years. Among these are three shallow offshore
wells that were drilled in the XVIII Istria block of the
Romanian Black Sea as well as two deep (> 4,000 m)
high-potential exploration wells. The 4461 Totea
South exploration well was tested in April 2019, and
OMV Petrom started production with an initial rate
of approximately 4,000 boe/d at the beginning of
October.
Middle East and Africa
For the Middle East and Africa portfolio, 2019 was
a year of consolidation following the multiple acqui-
sitions and divestments that took place in 2018 in
order to renew and improve the quality of the asset
base. Portfolio optimization continued in 2019 with
the end of operations in Madagascar, as Sub-Saha-
ran Africa no longer fits the Company’s strategic
direction.
In the United Arab Emirates, OMV and ADNOC
signed technical evaluation agreements on the
Shuwaihat and North-West offshore licenses in
April 2019. In July 2019 the Ghasha concession,
in which OMV holds a 5% stake, was expanded
with the addition of the Shuwaihat field area.
North Sea
On February 6, 2019, OMV Norge received the
“Explorer of the Year” award for the Hades and Iris
discoveries. In June 2019, two memorandums of
understanding were signed with Equinor on collab-
oration on the Norwegian continental shelf. These
relate to the Hades/Iris discovery and the Wisting
development. In October 2019, an appraisal well
was completed in the Iris discovery, and recover-
able reserves are now estimated between 33 and
57 mn boe gross. In 2020, another well is planned
to further appraise the Hades discovery.
Russia
In June 2019, OMV signed an amendment agree-
ment to the basic sale agreement, which stipulates
a purchase price of EUR 905 mn for the potential ac-
quisition of a 24.98% interest in the Achimov 4A/5A
phase development in the giant Urengoy gas and
condensate field. Signing of the transaction is ex-
pected in the first half of 2020.
Additionally, OMV continued to strengthen its stra-
tegic partnership with Gazprom by signing a memo-
randum on LNG cooperation and expanding the
companies’ multifaceted partnership in the areas of
science, technology, education, culture, and sports.
Asia-Pacific
In line with OMV’s strategy of forming partnerships
with major players in high-growth regions, OMV and
Sapura Energy Berhad (“Sapura Energy”) entered
into an agreement on January 31, 2019, to form a
strategic partnership. Under the agreement, OMV
acquired a 50% stake in the newly established com-
pany SapuraOMV Upstream Sdn. Bhd. for a con-
sideration totaling USD 540 mn subject to customary
closing adjustments. The parties agreed on an
additional consideration of up to USD 85 mn, mainly
linked to the resource volume in Block 30 in Mexico
at the time the final investment decision for a poten-
tial field development is made. Both parties have
also agreed to refinance the existing inter-company
debt of USD 350 mn. The new entity SapuraOMV
Upstream Sdn. Bhd. and its subsidiaries are fully
con solidated in OMV’s financial statements. It is
a major independent oil and gas company based in
68
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Malaysia with strong growth prospects consisting
of sizeable discovered resources and a strong port-
folio of exploration prospects. In 2019, SapuraOMV
was awarded “APAC Company of the Year” and
received the platinum award in the Offshore
Self-Regulation (OSR) Excellence Awards 2019.
In addition, the Shell New Zealand assets acquired
were successfully integrated with OMV’s existing
business in that country in 2019. In line with the
strategy, OMV is working to redevelop and optimize
the Maui and Pohokura assets acquired from Shell.
Consequently, OMV completed several well inter-
ventions in the Pohokura field during 2019 to safe-
guard future production. Major infill drilling cam-
paigns on both assets were also developed during
2019, with execution planned to start in 2020.
In November 2019, OMV New Zealand signed an
agreement to sell its 69% share of the Maari field
in the offshore Taranaki Basin effective January 1,
2019. Closing is subject to regulatory approvals, and
operatorship is expected to be transferred in mid-
2020. Average production of the asset in 2019 was
5 kboe/d net to OMV (in 2018: 5 kboe/d). With this
transaction, OMV New Zealand will become a pure
gas/condensate producer, reducing the carbon emis-
sions of the product portfolio by over 280,000 t/a.
Key projects
Neptun (Romania, OMV 50%)
In cooperation with ExxonMobil as the operator,
OMV Petrom continued the assessment of the com-
mercial and economic viability of the Neptun Deep
project in the Romanian Black Sea. Amendments
of the fiscal and regulatory framework were under
public debate during 2019, however, by the end of
the year, these haven’t materialized and the legis-
lative environment did not provide the necessary
prerequisites for a multibillion investment decision.
OMV Petrom remains keen to see the Black Sea
resources developed and will therefore continue the
dialogue with the authorities to unlock the way
forward. The cumulative production from Neptun
Deep is estimated at 125-250 mn boe (net to OMV).
Other major projects (Romania, OMV 100%)
In 2019, around EUR 120 mn were invested in the
modernization, extension, and construction of new
oil and gas processing facilities and pipelines.
In July 2019, OMV Petrom commissioned the Hure-
zani gas treatment plant following an investment
of approximately EUR 50 mn in 2017. The project
includes the construction of a gas treatment facility
with a maximum capacity of 37 kboe/d of natural
gas, which separates natural gas from condensate.
Pipelines were built over a 12 km distance as part
of the same investment.
Nawara (Tunisia, OMV 50%)
At the end of 2019, the OMV-operated onshore
Nawara gas condensate field development project
was 99% complete. Throughout the year, project
progress was impacted in an overall challenging
operating environment by a combination of several
factors: social unrest, project complexity, and con-
tractor performance. The pipeline was completed by
April, while both the gas treatment plant in Gabes
and the central processing facility are nearly final-
ized. Gas-in was achieved at the gas treatment
plant in October 2019, with commissioning still in
progress. The project will unlock South Tunisia’s
gas resources and supply gas, LPG, and condensate
to the Tunisian market. Peak production is expected
to reach around 10 kboe/d (OMV share).
Umm Lulu and SARB (UAE, OMV 20%)
Umm Lulu and Satah Al Razboot (SARB) are two off-
shore oil fields situated in the shallow waters of
Abu Dhabi. Pipelines connect both fields to dedicat-
ed processing, storage, and loading facilities on
Zirku Island. In 2019, work progressed significantly
towards the completion of the Umm Lulu bridge-
linked offshore platforms, with all modules success-
fully installed and undergoing commissioning. Full
field start-up is expected in 2020, with development
drilling to continue until 2023. Production start-up
of the Umm Lulu and SARB fields was achieved in
September 2018 and reached an average level of
22 kboe/d in 2019. Production from the concession
area is expected to increase to 215 kboe/d (43 kboe/d
net to OMV) by 2023.
Khor Mor (KRI, OMV 10%)
The Pearl consortium (OMV 10% share) develops,
processes, and transports natural gas from Khor
Mor, a major gas condensate field located in the
Kurdistan Region of Iraq. The consortium plans
to increase production by drilling new wells and by
expanding the facilities. OMV’s final investment
69
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT decision for the first 42 kboe/d train and the drilling
of five infill wells was made in October 2019. The
resulting additional gas production will be intro-
duced into the existing Pearl-operated gas pipeline
to support domestic gas demand.
Gullfaks (Norway, OMV 19%)
At the Equinor-operated Gullfaks field, six platform
wells were re-drilled and completed in 2019 with
the goal of increasing production from mature wells.
A rig specially designed to perform efficient drilling
operations on subsea developments drilled and
completed four wells. The Gullfaks and Snorre oil
and gas platforms will be the first in the world to
be partially supplied with energy from a floating
offshore wind farm, thus reducing CO2 emissions by
more than 200,000 t/a. The Norwegian authorities
approved plans to inject water in the producing Shet-
land/Lista formation in June 2019. Subsequently,
drilling of the first horizontal injection/production
well pair started in mid-2019.
Gudrun (Norway, OMV 24%)
Production from the existing wells in the Equinor-
operated Gudrun field continued at a high level,
although the field is experiencing a natural decline.
During 2019, the license group approved an im-
proved oil recovery program, which includes three
new infill wells and a project to start water injection
in the main reservoir called Gudrun Phase 2, which
involves five wells. In total, eight new wells have
been approved for drilling on Gudrun. Drilling activ-
ities commenced with the Rowan Stavanger drilling
rig in November 2019. Production from two of the
new wells is expected to start during the first half
of 2020. Water injection is planned to commence
during the first quarter 2021.
Edvard Grieg (Norway, OMV 20%)
The Lundin Petroleum-operated Edvard Grieg off-
shore oil field produced above expectations due to
the extended production plateau and high facility
uptime. Further resource maturation is planned via
an infill drilling program in 2020, targeting undrained
areas of the Edvard Grieg field. In 2019, the Norwe-
gian government approved a project that will allow
electrification of the Edvard Grieg platform from
the shore, which will reduce CO2 emissions. In addi-
tion, work is also ongoing to tie back two disco-
veries in nearby licenses (Solveig and Rolvsnes) to
Edvard Grieg as the host facility.
Aasta Hansteen (Norway, OMV 15%)
After some successful testing, the Aasta Hansteen
platform was able to increase its gross production
capacity by around 12% in Q2/19. Production
at Snefrid Nord, the first subsea tie-back to Aasta
Hansteen which was discovered in 2015, came
online in September 2019.
Wisting (Norway, OMV 25%)
The Wisting discoveries are located in the Barents
Sea. In June 2019, OMV signed a memorandum
of understanding with Equinor on collaboration on
the Norwegian continental shelf. OMV handed over
operatorship of the development to Equinor in
December, resuming operatorship at first oil. The
project will be developed by an integrated team
staffed by both companies under the lead of Equinor.
The recoverable resources in PL537 were estimated
at around 440 mn barrels of oil in 2018, compared
to 350 mn barrels in 2017.
Yuzhno Russkoye (Russia, OMV 24.99%)
Phase 1 of the drilling campaign to sustain pla -
teau production at the Gazprom-operated Yuzhno
Russkoye gas field was concluded in 2019. Twelve
additional production wells targeting the field’s
Turonian layer were brought on stream. Phase 2
started at the end of 2019. In addition, the operator
initiated a project to investigate the potential of the
field’s deeper Lower Cretaceous layers.
SK408 (Malaysia, OMV 40%)
In Malaysia, developing Phase 1 of the SK408 gas
license was the main focus in 2019. The GoLaBa
fields (Gorek, Larak, and Bakong) will be developed
as three separate wellhead platforms tied back to
an existing processing facility and to a nearby LNG
plant. Production began at Larak in December
2019. Bakong and Gorek will follow in 2020. This
will increase production in Malaysia to more than
30 kboe/d in 2020. The development of the Jerun
field is planned to be executed as Phase 2 of the
SK408 development with production scheduled to
start in 2023.
Maui A Crestal Infill (New Zealand, OMV 100%)
The final investment decision to execute a six-well
development from the Maui A platform in the
Taranaki Basin in New Zealand was made in Octo-
ber 2019. Platform pre-works began in 2019, with
rig mobilization planned in the second quarter 2020
and first gas expected in the third quarter 2020.
Drilling will continue in 2021.
70
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Exploration and appraisal highlights
Reserves development
Proved reserves (1P) as of December 31, 2019, in-
creased to 1,332 mn boe (thereof OMV Petrom 2:
504 mn boe). With a one-year Reserve Replacement
Rate (RRR) of 135% (2018: 180%), a value of over
100% has now been achieved four years in a row.
The three-year RRR reached 166% (2018: 160%).
The increase in proved reserves is mainly attributed
to the acquisition of the stake in SapuraOMV in
Malaysia. Further significant revisions followed suc-
cessful drilling and development activities and a
positive production performance in Russia, Norway,
and New Zealand.
Proved and probable reserves (2P) increased
to 2,378 mn boe (thereof OMV Petrom 2: 786 mn boe)
mostly due to the acquisition in Malaysia and
successful development activities in the Ghasha
concession in the United Arab Emirates.
Innovation and new technologies
OMV’s Upstream strategy is to apply state-of-the-
art technologies developed in-house to well-main-
tained assets, to pilot these technologies, and to
promote rapid global implementation. The current
focus of research and development is on improving
recovery rates and the lifetimes of mature fields.
This should enable highly efficient exploration for
new oil and gas deposits, even in challenging envi-
ronments.
OMV applies various enhanced oil recovery methods,
which are part of the Smart Oil Recovery 3.0 pro-
gram (SOR 3.0). This enables OMV to increase ulti-
mate oil recovery by up to 15 percentage points in
selected fields and thus extend the field life. In 2019,
five horizontal wells were drilled by OMV Austria
to support this initiative. In total, about 300 kboe of
incremental oil was produced by OMV Austria using
SOR by the end of 2019. Eight additional horizontal
wells are scheduled for 2020/2021. Oil rates could
be significantly increased compared to conventional-
ly produced saltwater re-injection. In 2019, further
prog ress was made on rolling out SOR projects in
various fields in Austria and Romania.
In 2019, OMV completed the drilling of 13 explora-
tion and appraisal wells 1 in five different countries,
eight of which were successful, including one that
has already started production.
In Austria, OMV finalized one exploration well in
2019. The drilling of one additional well was still
ongoing at year-end and is expected to be finalized
in the first quarter 2020.
In Romania, OMV Petrom finalized three exploration
wells, two of which discovered gas. The two deep
exploration wells Băicoi (finalized in 2018) and Băr-
bătești (drilled in 2019) will be tested in the first half
of 2020. The Totea South well has already been in
production since October 2019.
In Tunisia, OMV drilled and successfully tested the
Shalbia 1 exploration well in 2019.
In Norway, seven exploration and appraisal wells
were finalized, four of which were successful. One
highlight was the OMV operated high-pressure,
high-temperature Iris appraisal well in the Norwegian
Sea. Another appraisal well in the Hades discovery
is planned for 2020.
In New Zealand, OMV started a drilling campaign
on November 30, 2019. One exploration well was
finalized in 2019. This campaign will continue
through 2020 with a further three exploration wells
planned in the Taranaki Basin and one in the Great
South Basin.
OMV participated in two 3D seismic surveys com-
pleted in 2019, one in Austria and one in Mexico.
In Austria, OMV completed Phase 2 of the Schön-
kirchen 3D seismic survey in April. The 1,500 km²
study area represents the largest-ever seismic survey
in onshore Europe. Initial geological interpretation
work is already being carried out. In July, Sapura-
OMV completed a 3D offshore seismic survey cov-
ering an area of 450 km² offshore Mexico. The
consortium plans to drill the first exploration well
in 2021. OMV Petrom is currently performing a 3D
seismic survey in Romania covering 1,350 km².
Exploration and appraisal expenditures increased
to EUR 360 mn in 2019 (2018: EUR 300 mn).
The increased spend reflects higher activity, an
improved success rate, and OMV Petrom’s higher
equity share in some Romanian projects.
1 Six of which were operated by OMV.
2 OMV Petrom covers Romania and Kazakhstan.
71
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT The two Upstream laboratories OMV Tech Center
& Lab and OMV Petrom Upstream Laboratories
(ICPT) continue to strengthen their partnership for
work on the SOR projects in Romania. The ex-
change aims to use the knowledge and experience
gained from the Austrian SOR projects by the Tech
Center & Lab in recent years.
OMV has made great strides in developing new
technologies and improving the operational perfor-
mance of produced water treatment processes.
In a series of field pilots aiming to produce saltwater
that is optimally suited for re-injection, OMV was
able to identify innovative flotation and filtration
technologies which can also effectively treat chal-
lenging emulsions.
Increasingly complex reservoir fluid conditions are
resulting in faster degradation of pipelines and pro-
cessing equipment. To address this, OMV Upstream
is growing its expertise in the application of nano-
technology products. Promising Austrian pilots to
prevent paraffin deposition in well bores and to
reduce wear in sucker rod pumps were extended to
fields in Romania.
Significant progress has been made with the con-
struction of the OMV Innovation & Technology
Center (ITC) in Austria. The opening is expected to
take place as planned in the first quarter 2020.
Adding to existing collaboration with leading inter-
national universities, OMV started joint initiatives
with the Gubkin Russian State University of Oil and
Gas in Moscow.
Digitalization
With DigitUP, an umbrella program that was
launched in late 2018 for Upstream digitalization
initiatives, OMV targets to become one of the
global digital frontrunners in the Upstream industry.
One key area focuses on improving the efficiency of
exploration and development projects by simulating
the subsurface assets in 3D models (“Digital Twins”).
This shortens the project lifecycle from twelve to
four months, and it raises the efficiency of laboratory
measurement efforts. In another project, a tank
inspection drone was successfully piloted and is now
ready for deployment. The drone is equipped with
ultrasonic measuring tools that generate 3D models
and contours of the wall thickness of the tanks.
This new method lowers the risk exposure of service
personnel and cuts inspection time and costs by
25%. Moreover, the newly integrated well delivery
system is now fully functional in two exploration
wells in Libya, reducing the time spent on pre-drill
planning by 30%. Efficiency improvements were
also achieved in the drilling process through an
improved real-time drilling data system, which has
already been implemented on 21 rigs resulting in
168 interventions that have led to estimated savings
of EUR 1.5 mn in 2019.
To fully leverage the potential of these initiatives,
OMV Upstream has begun to upgrade the data
infrastructure to increase flexibility, security, and
performance globally. Thanks to cloud technology,
over 400 users are now able to access 1.6 peta-
byte of geological data and 170 applications online
from any device around the world in a highly secure
environment. This lays the foundation for high-
performance computing, which will reduce the sim-
ulation runtime by a factor of 10.
72
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Downstream
OMV’s Downstream business consists of Downstream Oil and Downstream Gas. Downstream Oil
has three refineries in Central and Eastern Europe, two of which have strong petrochemical inte-
gration. In 2019, Downstream expanded in the Middle East with a 15% share in ADNOC Refining and
a new Trading JV. OMV operates a retail network of approximately 2,100 filling stations in Europe.
Downstream Gas is active along the entire gas value chain. Natural gas sales volumes amounted to
137 TWh.
At a glance
Clean CCS Operating Result 1
thereof Downstream Oil
thereof Downstream Gas
Special items
CCS effects: inventory holding gains/(losses) 1
Operating Result
Capital expenditure 2
Downstream Oil KPIs
OMV indicator refining margin 3
Ethylene/propylene net margin 3,4
Utilization rate refineries
Total refined product sales
thereof retail sales volumes
thereof petrochemicals
Downstream Gas KPIs
Natural gas sales volumes
Net electrical output
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in USD/bbl
in EUR/t
in mn t
in mn t
in mn t
2019
1,677
1,495
182
31
139
1,847
2,774
4.44
433
97%
20.94
6.53
2.34
2018
1,643
1,439
204
(219)
(4)
1,420
576
5.24
448
92%
20.26
6.33
2.41
∆
2%
4%
(11)%
n.m.
n.m.
30%
n.m.
(15)%
(3)%
5
3%
3%
(3)%
in TWh
in TWh
136.71
3.40
113.76
5.06
20%
(33)%
Note: The net result from the equity-accounted investments in ADNOC Refining and Trading JV as well as PARCO is reflected in the Operating Results.
1 Current Cost of Supply (CCS): clean CCS figures exclude special items and inventory holding gains/losses (CCS effects) resulting from the fuels of
refineries.
2 Capital expenditure including acquisitions, notably the acquisition of a 15% stake in ADNOC Refining and a Trading JV to the amount of USD 2.43 bn
in Q3/19.
3 Actual refining and petrochemical margins realized by OMV may vary from the OMV indicator refining margin, ethylene/propylene net margin, as well
as from the market margins due to factors including different crude slate, product yield, operating conditions, or feedstock.
4 Calculated based on West European Contract Prices (WECP) with naphtha as feedstock
Financial performance
The clean CCS Operating Result rose slightly from
EUR 1,643 mn to EUR 1,677 mn in 2019 mainly
following a higher result in Downstream Oil, partially
offset by a lower Downstream Gas result.
The Downstream Oil clean CCS Operating Result
increased in 2019 by EUR 56 mn to EUR 1,495 mn.
The increase was mainly driven by a strong con tri-
bution from the commercial and retail businesses,
partially offset by lower indicator refining and
petro chemical margins. The OMV indicator refining
margin decreased by 15% from USD 5.2/bbl to
USD 4.4/bbl. Decreased naphtha and gasoline mar-
gins could not be offset by higher heavy fuel oil
margins. Lower feedstock costs, a result of lower
crude prices, positively impacted the refining margin.
The utilization rate of the refineries came in at a
very high rate of 97% in 2019. In 2018, the utilization
rate was at 92%, reflecting the planned six-week
turnaround at the Petrobrazi refinery. At 20.9 mn t,
total refined product sales increased by 3%. The
retail business contribution improved, driven by
higher margins and slightly increased sales volumes.
In the commercial business, margins and sales
volumes also went up compared to 2018. The com-
mercial business benefited in 2019 from a tight
supply situation following a refinery outage of a
competitor and the Druzhba pipeline crude oil con-
tamination. OMV Petrom contributed EUR 327 mn
(2018: EUR 286 mn) to the clean CCS Operating
Result of Downstream Oil. In 2019, the contribution
from ADNOC Refining and Trading amounted to
EUR 8 mn. The result was positively impacted by
one-off effects. The Trading JV is currently in the
set-up phase.
73
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT The clean CCS Operating Result of the petrochemi-
cals business decreased by 12% to EUR 241 mn
(2018: EUR 275 mn). While the ethylene/propylene
net margin softened, the butadiene and benzene
net margins went down considerably. Borealis’ con-
tribution to the clean Operating Result declined by
13% to EUR 314 mn (2018: EUR 360 mn). A positive
impact stemming from a settlement agreement
regarding the Finnish tax cases was more than off-
set by negative inventory valuation effects and
weaker integrated polyolefin margins. The perfor-
mance of the fertilizer business improved due to
lower gas prices.
The Downstream Gas clean CCS Operating Result
declined from EUR 204 mn to EUR 182 mn in 2019,
mainly caused by a weaker power result. The con-
tribution from Gas Connect Austria decreased from
EUR 102 mn in 2018 to EUR 97 mn. In 2018, the
result had benefited from an insurance payment re-
lated to the Baumgarten incident and increased
contributions from participations that could not be
fully offset by higher transportation revenues in
2019. Natural gas sales volumes grew by 20% to
136.7 TWh (2018: 113.8 TWh). A successful market
offensive raised volumes in Germany and the Nether-
lands. While volumes also grew in Romania, the
quantity sold in Turkey decreased sharply. Net elec-
trical output dropped from 5.1 TWh to 3.4 TWh in
2019, following an unfavorable market environment
in Romania. In addition, the divestment of the
Samsun power plant in Q3/18 negatively impacted
net electrical output. OMV Petrom contributed
EUR 60 mn (2018: EUR 77 mn) to the clean CCS
Operating Result of Downstream Gas.
The 2019 result reflects net special items of
EUR 31 mn (2018: EUR (219) mn) and were mainly
related to unrealized commodity derivatives. In
2018, net special items were mainly related to the
divestment of the Samsun power plant and a partial
impairment of the Borealis fertilizer business. CCS
effects of EUR 139 mn were booked due to rising
crude prices in 2019. The Downstream Operating
Result increased significantly from EUR 1,420 mn
to EUR 1,847 mn in 2019.
Capital expenditure in Downstream amounted to
EUR 2,774 mn (2018: EUR 576 mn) and included
capital expenditure related to IFRS 16 to the amount
of EUR 66 mn. Capital expenditure in Downstream
Oil was EUR 2,687 mn (2018: EUR 506 mn) and
included the acquisition of a 15% stake in ADNOC
Refining and a Trading joint venture to the amount
of USD 2.43 bn. In 2019, organic capital expendi-
ture is predominantly related to investments in the
European refineries and the retail business.
Downstream Oil
Downstream Oil operates along the entire oil value
chain: In Europe, it processes equity and third-party
crude and other feedstock in three highly compet-
itive inland refineries with an annual capacity of
17.8 mn t. These are located in Schwechat (Austria),
Burghausen (Germany), and Petrobrazi (Romania).
In Austria and Germany, OMV is forward integrated
into petrochemicals, with Borealis (OMV stake: 36%)
as a key customer. Total annual petrochemical pro-
duction, including Romania, amounts to a capacity
of 2.5 mn t. In 2019, Downstream Oil expanded
in the Middle East with a 15% share in ADNOC
Refining and a new Trading joint venture, thus estab-
lishing a strong integrated position in Abu Dhabi.
Furthermore, OMV markets refined products to com-
mercial customers in Europe as well as through its
retail network of approximately 2,100 filling stations.
Total refined product sales amounted to 20.9 mn t.
Refining including product supply and sales
In 2019, the refining margin weakened compared
to the previous year. Refining economics came
under pressure in the first half of the year due to
very weak light distillate markets suffering from
an oversupply situation. A slight rebound was seen
in the third quarter as middle distillate markets
improved. However, rising crude prices at the end
of the year again added pressure and led to lower
average refining margins than in 2018. Despite the
year-on-year decline, the refining economics were
still healthy, supported by strong demand for middle
distillates after some logistical issues in Europe in
2018. This kept inland premia at high levels in 2019.
In 2019, the overall utilization rate of OMV’s Euro-
pean refineries reached an extraordinary level of 97%
74
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT (2018: 92%). The high processing flexibility of feed-
stock, allowing the use of more than 200 different
types of crude oil in OMV’s western refineries, con-
tributed to a strong Downstream Oil result thanks
to optimal feedstock sourcing.
The regional proximity of the three European sites
allows OMV to operate them as one integrated refin-
ery system. Intermediate feedstocks are exchanged
between the refineries in order to optimize product
flows and maximize returns. This system allows
OMV to strategically align investments, fully capi-
talize on the flexibility created by shifting output
toward high-value products, and leverage economies
of scale.
In the petrochemical business, sales volumes were
marginally lower compared to 2018 as the result of
a cracker outage in Burghausen early September.
Average petrochemical margins were slightly below
the 2018 average due to weak Q4/19 margins. This
reflected lower global GDP growth rates. Butadiene
margins were impacted by declining demand in
the automotive industry, as the primary use for buta-
diene is in the production of Styrene Butadiene
Rubber (SBR), which is mainly used in the manufac-
ture of automobile tires. Benzene oversupply and
a weak demand environment, which had persisted
since Q2/18, continued into Q1/19 and brought
margins under heavy pressure. Margins gradually
recovered during Q2/19 and Q3/19 as supply tight-
ened amid planned and unplanned European cracker
shutdowns and reduced import pressure from other
regions.
Retail
The strong performance in the retail business
increased further in 2019 and proved once again to
be a stable outlet for refinery products and a strong
cash generator. Total sales increased by 3% to
6.5 mn t, equivalent to approximately 8 bn liters. The
average throughput increased to 3.88 mn liters
(+3% vs. 2018) on the back of strong performance
in all key markets and a favorable market environ-
ment. At the end of the year, the network comprised
2,075 filling stations (2018: 2,064). OMV continues
to focus on its successful multi-brand strategy with
a planned further expansion in Germany based on
an agreement with Aldi Süd. The OMV brand is posi-
tioned as a premium brand, with VIVA representing
a strong shop, gastronomy, and service offering.
The Avanti brand of unmanned filling stations rep-
resents the discount segment, while the Petrom
brand represents value for money. This strategy has
continued to deliver great results, and profitability
per site has increased as well. Sales of OMV’s pre-
mium MaxxMotion-brand fuels have reached an
all-time high at approximately 800 mn liters, proving
the premium-quality advantage even in a generally
higher fuel price environment. The non-fuel business,
such as the VIVA convenience stores and car wash-
es, continued to perform very well, contributing 6%
more net margin growth than in 2018. The focus on
the high-quality products and services in the pre-
mium filling station network remains one of OMV’s
key differentiators. Our new VIVA private-label
products such as VIVA iced coffee and snacks con-
tributed to an improved retail result as well.
Annual refining capacities
In mn t
Schwechat (Austria)
Burghausen (Germany)
Petrobrazi (Romania)
ADNOC Refining (United Arab Emirates)
Total
1 Equivalent to OMV‘s 15% share in ADNOC Refining
Borealis
Borealis’ contribution to the clean Operating Result
declined by 13% to EUR 314 mn (2018: EUR 360 mn).
The 2019 result was driven by a weak polyolefins
market in Asia, leading to a significantly lower con-
tribution by Borouge to Borealis’ financial result.
Satisfactory integrated polyolefin margins in Europe
and a recovery in the fertilizer market mostly have
offset this negative impact.
9.6
3.8
4.5
7.11
24.9
On June 7, 2019, the Finnish and Austrian tax au-
thorities reached an agreement on two cases regard-
ing the taxation of Borealis Technology Oy and
Borealis Polymers Oy. The dispute was resolved
through a Mutual Agreement Procedure (MAP)
between Finland and Austria. Borealis welcomes
the agreement, which finally eliminates double
taxation.
75
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Bayport Polymers (Baystar), the 50/50 joint venture
between Total and Novealis Holdings (50/50 joint
venture between Borealis and NOVA Chemicals),
held its official groundbreaking ceremony for the
construction of a new 625,000 t per year Borstar®
polyethylene unit at its production site in Pasadena,
Texas. Start-up is anticipated in 2021.The state-
of-the-art Borstar technology, which will be used in
North America for the first time, will allow Baystar
to produce enhanced polyethylene products for the
most demanding applications. Baystar is also build-
ing a steam cracker in Port Arthur, Texas, with a
capacity of 1 mn t per year. The new cracker will
process ethane, which is abundantly available and
competitively priced in the United States. It will
supply feedstock for its existing 400,000 t per year
polyethylene units as well as the new Borstar® poly-
ethylene unit in Pasadena.
In addition, Borealis and NOVA Chemicals an-
nounced in January 2020 that they have reached an
agreement for Borealis to buy NOVA Chemicals’
50% ownership interest in Novealis Holdings. Com-
pletion of the acquisition is subject to customary
regulatory approvals and other conditions. It is not
subject to any financing conditions. The parties
expect the transaction to close in the first half of
2020.
On September 9, Borealis held the groundbreaking
ceremony for its new, world-scale propane de-
hydro genation (PDH) plant. Located at the existing
Borealis production site in Kallo, Belgium, the new
facility will have a targeted production capacity of
750,000 t of propylene per year, making it one of
the largest and most efficient plants of its kind in
the world. With a total of around EUR 1 bn invested
in the course of the project, the investment is the
largest ever made by Borealis in Europe. It under-
scores the company’s commitment to its operations
on the Continent, and to being the supplier of choice
to its European customers.
Downstream Gas
Downstream Gas operates a fully integrated gas
business across the gas value chain from the well-
head to the burner tip. 1 It includes the Group’s
power business activities with one gas-fired power
plant in Romania.
Supply, marketing and trading
OMV markets and trades natural gas in nine Euro-
pean countries as well as in Turkey. In 2019, natural
gas sales volumes amounted to 136.7 TWh (2018:
113.8 TWh), which is an increase of 20%. The foun-
dation for growing gas sales activities is a well-diver-
sified supply portfolio which consists of equity gas
and a variety of international suppliers. In addition
to mid- and long-term activities, short-term acti-
vities at the main international hubs complement
OMV’s dynamic supply portfolio.
OMV Gas Marketing & Trading GmbH’s (OMV Gas)
sales activities are focused on the large industry and
municipality segments. OMV Gas has a local pres-
ence in Austria, Germany, Hungary, the Netherlands,
and Belgium. External sales in these countries
amounted to 87.3 TWh, an increase of 34% com-
pared with 2018. Italy, Slovenia, and France are
covered by origination activities. This is a substantial
achievement given the challenging market environ-
ment. Margins remained under pressure due to the
competitive and increasingly volatile European gas
market situation. This situation is expected to also
continue in the future. In Germany, OMV Gas plans
to achieve a market share of 10% by 2025, a target
that is well on track. In 2019, sales had reached
40.1 TWh, an increase of 58% over the previous year
and a market share of 4%.
In Romania, OMV Petrom gas and power activities
achieved a good operational result, reflecting the
optimization of products and customer portfolios,
which compensated a weaker power business
performance triggered by deteriorated market con-
ditions. In the context of a still volatile regulatory
framework as well as declining domestic gas de-
mand, the natural gas sales volumes to third parties
reached 47.2 TWh in 2019, representing an increase
1 OMV’s gas business is operated in strict adherence with the applicable gas unbundling rules.
76
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT of 21% versus last year and were supported by sig-
nificant third party supply volumes to complement
the lower equity gas production. In Romania, the
net electrical output decreased to 3.4 TWh in 2019
(2018: 3.8 TWh), with the Brazi power plant cover-
ing approximately 6% of Romania’s electricity pro-
duction (same percentage as in 2018), while also
being an important player on the power balancing
market.
In 2019, OMV Gas also substantially improved the
capacity utilization of the Gate regasification termi-
nal. Besides operating a growing LNG spot business,
OMV Gas has entered into important mid-term
LNG deals, under which a number of LNG cargoes
will be delivered to Europe. These LNG cargoes
will provide an additional source of gas to meet
OMV’s ambitious sales growth targets in Northwest
Europe, while further enhancing the security of
supply for OMV’s geographically diverse supply port-
folio. The LNG business supports the strategy of
portfolio integration of supply, marketing, and trad-
ing business in the West, the East, and Turkey.
Gas logistics
OMV runs gas storage facilities in Austria and Ger-
many with a storage capacity of 30 TWh. Addition-
ally, OMV holds a 65% stake in the Central European
Gas Hub (CEGH), an important gas trading hub in
Central and Eastern Europe. OMV’s subsidiary Gas
Connect Austria operates an approximately 900 km
long high-pressure natural gas pipeline network in
Austria.
At around 575 TWh, actual entry/exit transportation
volumes in Eastern Austria (Regelzone Ost) were the
highest they have been in the past six years. Par-
ticularly the Baumgarten (entry) and Mosonmagyar-
óvár (exit) interconnection points were utilized at
high levels in 2019.
The storage market was characterized by high cus-
tomer demand and an increased market price level
due to higher summer/winter spreads as well as
higher volatility. At the European hubs, summer/
winter spreads reached levels significantly above
previous years. After a relatively high filling level at
the end of last winter, Austrian storage facilities
were utilized even above design capacity in the
fourth quarter due to the high customer demand.
At the Central European Gas Hub, 754 TWh of nat-
ural gas were nominated at the Virtual Trading Point
(VTP) in 2019, an increase of 14% compared with
2018. This volume corresponds approximately to
eight times Austria’s annual gas consumption. On
the PEGAS CEGH Gas Exchange Market, 163 TWh
were traded in Austria in 2019, an increase of 23%
versus last year. Both results are all-time highs in
the history of CEGH. The PEGAS CEGH Gas Market
was integrated into EEX Gas as of January 2020.
OMV is a financing partner of the Nord Stream 2
proj ect. In 2019, OMV provided funds of
EUR 113 mn, bringing OMV’s total current pay-
ments under the financing agreements for Nord
Stream 2 to EUR 712 mn.
Innovation and new technologies
OMV actively explores alternative feedstock, tech-
nologies, and fuels with the aim of developing a
well-diversified, competitive future portfolio. Efforts
and resources focus on the production of sustain-
able biofuels and advanced fuels, future energy for
transportation, and innovative solutions to improve
the carbon footprint of our products.
OMV is systematically developing new technolo-
gies, such as Co-Processing to improve the quality
and stability of fuels with biogenic components.
Traditionally, the biogenic component is blended
into the fuel after production. Co-Processing intro-
duces the biogenic feedstock as early as the produc-
tion process. This concept enables OMV to pro -
duce transportation fuels from various biogenic feed-
stock, such as domestic rapeseed oil, used cook ing
oil, or algae oil using existing refinery plants. In
2019, OMV continued its development efforts in the
field of Co-Processing of renewable feedstock
through additional testing in laboratories and pilot
plants. The focus was on fine-tuning the technical
concept in terms of product quality, biogenic yields,
and utility consumption.
77
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT OMV is also active in the production of advanced
fuels that are not in direct competition with food.
Therefore, OMV is collaborating with Verbund AG on
the UpHy project to demonstrate the production
of green hydrogen for use in the mobility sector and
in the refining process. Within this strategic part-
nership, options for using green hydrogen to hydro-
genate CO2, for reducing carbon emissions from
industrial facilities, and for producing synthetic fuels
and chemicals (power-to-X) are also being evalu-
ated. In addition, OMV participates in various funded
research projects with external partners, e.g., enzy-
matic conversion of CO2 and hydrogen to alcohols
and subsequent refining to bio-jet fuel in collabo-
ration with TU Wien (Vienna University of Technol-
ogy). Others are the liquefaction of biowaste to bio-
based crude oil together with Montanuniversität
Leoben or the pyrolysis of biowaste to bio-oil as part
of a European Research project.
At the beginning of 2018, the European Commission
introduced the new Circular Economy Package with
the aim of increasing the recycling rates for plastics
and minimizing the release of plastics into the envi-
ronment. Refinery post-consumer and post-industrial
plastics are already being recycled into synthetic
crude oil in a pyrolysis process in OMV’s ReOil® pilot
plant at the Schwechat refinery (a proprietary OMV
technology). This synthetic crude can be processed
into any desired refinery product. Completion of
the mechanical aspects of the pilot plant with a ca-
pacity of 100 kg/h was reached at the end of 2017.
In 2019, OMV operated and further improved the
pilot plant to prepare the next scale-up steps to in-
dustrial scale.
OMV is actively involved in the development of alter-
native fuels for major mobility applications in order
to stay abreast of market developments relating to
reducing emissions.
OMV holds 40% of SMATRICS, Austria’s largest
e-mobility provider. SMATRICS currently operates
461 charging points at 165 publicly accessible lo-
cations. SMATRICS is also an enabler of e-mobility
and offers complete B2C and B2B service packages.
OMV also works with IONITY – High-Power Charg-
ing. This is available at seven OMV locations with
more planned in the near future. With the OMV
e-mobility card, ROUTEX customers can seamlessly
use their fuel of choice.
Compressed natural gas (CNG) and liquefied natural
gas (LNG) can reduce CO2 and particulate emissions
from vehicles by 20% and 90%, respectively. To
exploit this potential, OMV is conducting a strategic
evaluation on LNG as an alternative fuel for heavy-
duty vehicles. Initial activities with industrial partners
to increase utilization of the existing CNG network
in Austria have commenced.
As a pioneer in hydrogen mobility, OMV currently
operates five hydrogen filling stations in Austria and
is a joint venture partner of H2 MOBILITY, whose
goal is to operate a Germany-wide hydrogen filling
station network by the end of 2023. Several initia-
tives for the production and use of hydrogen are
being promoted by OMV across a number of sectors.
These are aimed at unlocking the potential of the
fuel and positioning OMV accordingly.
78
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Outlook
Market environment
Downstream
For 2020, OMV expects the average Brent oil price
to amount to USD 60/bbl (2019: USD 64/bbl).
The average realized gas price is anticipated to be
lower in 2020 compared to the previous year (2019:
EUR 11.9/MWh).
Group
In 2020, organic CAPEX (including capitalized explo-
ration and appraisal expenditure and excluding
acquisitions) is projected to come in at EUR 2.4 bn
(2019: EUR 2.3 bn).
Upstream
OMV expects total production to be around 500 kboe/d
in 2020 (2019: 487 kboe/d), depending on the secu-
rity situation in Libya. Organic CAPEX for Upstream
(including capitalized exploration and appraisal
expenditure and excluding acquisitions) is anticipated
to come in at around EUR 1.6 bn in 2020 (2019:
EUR 1.6 bn). In 2020, the exploration and appraisal
expenditure is expected to total EUR 350 mn (2019:
EUR 360 mn).
In 2020, the refining indicator margin is expected to
be above USD 5/bbl (2019: USD 4.4/bbl). The petro-
chemical margins are anticipated to come in slightly
below EUR 400/t (2019: EUR 433/t). Total refined
product sales are forecasted to be on a similar level
to 2019 in 2020 (2019: 20.9 mn t). In OMV’s mar-
kets, retail and commercial margins are predicted to
be slightly lower in 2020 than those in 2019. There
is no major turnaround planned for our refineries in
Europe in 2020. Therefore, the utilization rate of the
European refineries is expected to be around 95%
(2019: 97%).
Natural gas sales volumes in 2020 are projected to
be above 2019 levels (2019: 137 TWh). Natural gas
sales margins will likely at least reach the prior-year
level.
The outbreak of coronavirus (COVID-19) and the
efforts to contain it are expected to affect the global
economy and, as a result, to have an impact on
prices and demand of oil products and crude oil;
however, as it is not possible to quantify it at this
moment, such impact is not included in the outlook
above.
For information about the longer-term outlook, see
Strategy (page 43).
79
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Risk Management
Like the oil and gas industry as a whole, OMV is exposed to a variety of risks – including market and
financial risks, operational risks, and strategic risks. The Group’s risk management processes focus
on identification, assessment, and evaluation of such risks and their impact on the Group’s financial
stability and profitability. The objective of these activities is to actively manage risks in the context
of the Group’s risk appetite and defined risk tolerance levels.
It is OMV’s view that the Group’s overall risk is sig-
nificantly lower than the sum of the individual risks
due to its integrated nature and the fact that various
risks partially offset each other. The balancing
effects of industry risks, however, can often lag or
weaken. OMV’s risk management activities there-
fore focus on the net risk exposure of the Group’s
existing and future portfolio. The interdependencies
and correlations between different risks are also
reflected in the Company’s consolidated risk profile.
Risk management and insurance activities are
centrally coordinated at the corporate level by the
Treasury and Risk Management department. This
department ensures that well-defined and consistent
risk management processes, tools, and tech -
niques are applied across the entire organization.
Risk owner ship is assigned to the managers who
are best suited to oversee and manage the respec-
tive risk.
The overall objective of the risk policy is to safeguard
the cash flows required by the Group and to main-
tain a strong, investment-grade credit rating in line
with the Group’s risk appetite.
Enterprise Wide Risk Management
The process is facilitated by a Group-wide IT system
supporting the established individual process steps:
risk identification, risk analysis, risk evaluation, risk
treatment, reporting, and risk review through con-
tinuous monitoring of changes to the risk profile. The
overall risk resulting from the bottom-up risk man-
agement process is computed using Monte Carlo
simulations and compared against planning data.
This is further combined with a top-down approach
from the senior management view to capture the
risks coherent with the strategy. The process also
includes companies that are not fully consolidated.
Twice a year, the results from this process are con-
solidated and presented to the Executive Board
and the Audit Committee. In compliance with the
Austrian Code of Corporate Governance, the effec-
tiveness of the EWRM system is evaluated by the
external auditor on an annual basis. The key non-
financial and financial risks identified with respect
to OMV’s medium-term plan are:
Financial risks including market price risks and
foreign exchange risks
Operational risks, including all risks related to
physical assets, production risks, project risks,
personnel risks, IT risks, HSSE and regulatory/
compliance risks
Non-financial and financial risks are regularly iden-
tified, assessed, and reported through the Group-
wide Enterprise Wide Risk Management (EWRM)
process.
Strategic risks arising, for example, from changes
in technology, climate change, risks to reputa-
tion, or political uncertainties, including sanctions
The main purpose of the OMV Group’s EWRM pro-
cess is to deliver value through risk-based manage-
ment and decision-making. The assessment of
financial, operational, and strategic risks helps the
Group leverage business opportunities in a system-
atic manner. This ensures that OMV’s value grows
sustainably. Since 2003, the EWRM system has
helped enhance risk awareness and improve risk
management skills across the entire organization,
including subsidiaries in more than 20 countries. The
OMV Group is constantly enhancing the EWRM
process based on internal and external requirements.
A cross-functional committee chaired by the OMV
Group CFO with senior management members
of the OMV Group – the Risk Committee – ensures
that the EWRM process effectively captures and
manages material risks across the OMV Group.
Financial Risk Management
Market price and financial risks arise from volatility
in the prices of commodities including the market
price risks from European Emission Allowances,
foreign exchange (FX) rates, and interest rates. Also
of importance are credit risks, which arise from
the inability of a counterparty to meet a payment or
delivery commitment. As an oil and gas company,
OMV has a significant exposure to oil and gas prices.
Substantial FX exposures include the USD, RON,
NOK, NZD, and RUB. The Group has a net USD long
position, mainly resulting from oil production sales.
The comparatively less significant short positions in
RON, NOK, NZD, and RUB originate from expenses
in local currencies in the respective countries.
80
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Management of market price risk, FX risk,
European Emission Allowances
Analysis and management of financial risks arising
from foreign currencies, interest rates, commodity
prices, European Emission Allowances, counterpar-
ties, liquidity, and insurable risks are consolidated
at the corporate level. Market price risk is monitored
and analyzed centrally in respect of its potential
cash flow impact using a specific risk analysis model
that considers portfolio effects. The impact of finan-
cial risks (e.g., market prices, currencies) on the
OMV Group’s cash flow and liquidity are reviewed
quarterly by the Risk Committee, which is chaired
by the CFO and comprises the senior management
of the business segments and corporate functions.
In the context of market price risk and FX risk, the
OMV Executive Board decides on hedging strategies
to mitigate such risks whenever deemed necessary.
OMV uses financial instruments for hedging purpos-
es to protect the Group’s cash flow from the poten-
tial negative impact of falling oil and gas prices in the
Upstream business.
In the Downstream business, OMV is especially
exposed to volatile refining margins and inventory
risks. Corresponding hedging activities are under-
taken in order to mitigate those risks. Those include
margin hedges as well as stock hedges. In addition,
Emission Compliance Management ensures a bal-
anced position of emission allowances by selling the
surplus or covering the gap.
Management of interest rate risk
To balance the Group’s interest rate portfolio, loans
can be converted from fixed to floating rates and
vice versa according to predefined rules. OMV reg-
ularly analyzes the impact of interest rate changes
on interest income and expense from floating rate
deposits and borrowings. Currently the effects of
changes in interest rates are not considered to be a
material risk.
Management of credit risk
Significant counterparty credit risks are assessed,
monitored, and controlled at the Group and seg-
ment level using predetermined credit limits for all
counterparties, banks, and security providers. The
procedures are governed by guidelines at the OMV
Group and OMV Petrom level.
Operational risks
The nature of OMV’s business operations exposes
the Group to various health, safety, security, and
environment (HSSE) risks. Such risks include the
potential impact from natural catastrophes as well
as process safety and personal security events.
Other operational risks comprise risks related to
the delivery of capital projects or legal/regulatory
non- compliance. All operational risks are identified,
analyzed, monitored, and mitigated following the
Group’s defined risk management process.
Control and mitigation of assessed risks takes place
at all organizational levels using clearly defined risk
policies and responsibilities. The key Group risks
are governed centrally to ensure the Group’s ability
to meet planning objectives through corporate
directives, including those relating to health, safety,
security, environment, legal matters, compliance,
human resources, and sustainability.
OMV puts a special focus on five Sustainability
Strategy areas: HSSE, Carbon Efficiency, Innovation,
Employees, Business Principles, and Social Re-
sponsibility. OMV Executive Board members regu-
larly (at least quarterly) discuss present and up-
coming environmental, climate, and energy-related
policies and regulations; related developments in
the fuels and gas market; the financial implications
of CO2 emissions-trading obligations; the status of
innovation project implementation; and progress on
achieving sustainability-related targets. OMV focuses
on assessing the potential vulnerabilities of the
company to climate change (e.g., water deficiency,
droughts, floods, landslide), the impact of the com-
pany on the environment, and the mitigation actions
that will ensure a successful transition to a low
carbon environment (e.g., carbon emission reduction,
compliance with new regulatory requirements).
As OMV’s activities rely on information technology
systems, the Group may experience disruption due
to major cyber events. Security controls are there-
fore implemented across the Group to protect infor-
mation and cyber assets that store and process
information. IT-related risks are assessed, monitored
regularly, and managed actively with dedicated
information and security programs across the orga-
nization.
Through systematic staff succession and develop-
ment planning, Corporate Human Resources targets
suitable managerial staff to meet future growth
requirements in order to mitigate personnel risks.
81
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Strategic risks
OMV operates and has financial investments in
countries that are subject to political uncertainties,
in particular Libya, Kazakhstan, Yemen, Russia,
Malaysia, and Tunisia. Possible political changes
may lead to disruptions and limitations in production
or an increased tax burden, restrictions on foreign
ownership, or even nationalization of property. How-
ever, OMV has extensive experience in managing
the political environment in emerging economies.
Political developments in all markets where OMV
operates are observed continually. Country-specific
risks are assessed before entering new countries. In
addition, the potential impact of the Brexit scenario
on OMV Group companies was undertaken, which
showed that there is no significant impact expected.
OMV also evaluates the risk of potential US or EU
sanctions and their impact on planned or existing
operations. The aim here is to stay in full compli-
ance with all applicable sanctions. In particular, risks
due to US sanctions on the Nord Stream 2 project
and on OMV’s activities in Russia are regularly as-
sessed and monitored. The financing agreements for
the pipeline project Nord Stream 2 are not affected
by the US sanctions.
OMV regularly evaluates the Group’s exposure to
climate-change-related risks in addition to the
market price risk from European Emission Allow-
ances. Such risks comprise the potential impact
from acute or chronic events like more frequent ex-
treme weather events or systemic changes to our
business model due to a changing legal framework
or substitution of OMV’s products due to changing
consumer behavior. OMV recognizes climate change
as a key global challenge. We thus integrate the
related risks and opportunities into the development
of the Company’s business strategy. Measures that
we implement to manage or mitigate such risks are
set out in the relevant sections of this report, partic-
ularly in Sustainability and Strategy.
For further details on risk management and the use
of financial instruments, please refer to Note 28 of the
Consolidated Financial Statements.
For further details on climate-change-related risks and
their management, see the OMV Sustainability Report
2019.
For further details on health, safety, security, and
environmental risks, please refer to the chapter Health,
Safety, Security, and Environment in the Directors’
Report (page 52).
82
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT Other Information
Information required by section 243a of the
Unternehmensgesetzbuch (Austrian Commer-
cial Code)
1.
2.
The capital stock amounts to EUR 327,272,727
and is divided into 327,272,727 bearer shares
of no par value. There is only one class of
shares.
There is a consortium agreement in place bet-
ween the two core shareholders, Österreichi-
sche Beteiligungs AG (ÖBAG) 1 and Mubadala
Petroleum and Petrochemicals Holding Compa-
ny L.L.C (MPPH) 2, which provides for coordi-
nated behavior and certain limitations on trans-
fers of shareholdings.
3.
ÖBAG holds 31.5% and MPPH holds 24.9% of
the capital stock.
4.
All shares have the same control rights.
5.
6.
Employees who are shareholders directly exer-
cise their voting rights at the Annual General
Meeting.
The Company’s Executive Board must consist
of two to six members. The Company’s Super-
visory Board must consist of at least six mem-
bers elected by the Annual General Meeting
and of the members nominated under section
110 (1) of the Arbeitsverfassungsgesetz (Aus-
trian Labor Constitution Act). Resolutions con-
cerning the dismissal of members of the Super-
visory Board pursuant to section 87 (8) of the
Aktiengesetz (Austrian Stock Corporation Act)
require a simple majority of the votes cast. To
approve capital increases pursuant to section
149 of the Austrian Stock Corporation Act and
alterations of the Articles of Association (except
those concerning the Company’s objects), sim-
ple majorities of the votes and capital repre-
sented in adopting the resolution are sufficient.
7. a) As the authorized capital granted by the
Annual General Meeting on May 13, 2009
expired on May 13, 2014, the Annual General
Meeting decided upon a new authorized
capital on May 14, 2014. Specifically, it autho-
rized the Executive Board until May 14, 2019
to increase the share capital of OMV with the
consent of the Supervisory Board – at once
or in several tranches – by an amount of up to
EUR 32,727,272 by issuing up to 32,727,272
new no-par value common voting shares in
bearer form in return for contributions in cash.
The capital increase can also be implemented
by way of indirect offer for subscription after
taking over by one or several credit institutions
according to Section 153 Paragraph 6 Stock
Corporation Act. The issue price and the condi-
tions of issuance can be determined by the
Executive Board with the consent of the Super-
visory Board. The Annual General Meeting also
authorized the Executive Board, subject to the
approval of the Supervisory Board, to exclude
the subscription right of the shareholders if the
capital increase serves to
(i) adjust fractional amounts or
(ii) satisfy stock options or long term incentive
plans (including matching share plans for
employees, senior employees and members of
the Executive Board/management boards of
the Company or one of its affiliates), or other
employees’ stock ownership plans.
In addition, the Supervisory Board was autho-
rized to adopt amendments to the Articles
of Association resulting from the issuance of
shares according to the authorized capital.
b) On May 18, 2016, the Annual General Meeting
authorized the Executive Board for a period of
five years from the adoption of the resolution,
therefore, until (and including) May 17, 2021,
upon approval of the Supervisory Board, to dis-
pose of or utilize stock repurchased or already
held by the Company to grant treasury shares
to employees, senior employees and/or mem-
bers of the Executive Board/management
boards of the Company or one of its affiliates,
including for purposes of share transfer pro-
grams – in particular, long-term incentive plans
including matching share plans or other stock
ownership plans – under exclusion of the gen-
eral purchasing possibility of shareholders
(exclusion of subscription rights). The authori-
zation can be exercised as a whole or in parts
or even in several tranches by the Company, by
a subsidiary (section 189a, number 7, of the
Austrian Commercial Code) or by third parties
for the account of the Company.
1 With effect as of February 20, 2019 Österreichische Bundes- und Industriebeteiligungen GmbH was transformed into a joint-stock company and
renamed as Österreichische Beteiligungs AG.
2 With effect as of February 13, 2019 all shares in OMV previously held by International Petroleum Investment Company were transferred to Mubadala
Petroleum and Petrochemicals Holding Company L.L.C.
83
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
c) On May 14, 2019 the Annual General Meeting
authorized the Executive Board to repurchase
bearer shares of no par value of the Company up
to a maximum of 5% of the Company’s nomi-
nal capital in accordance with section 65 (1) (8)
Austrian Stock Corporation Act, over a period
of 15 months from the date of adoption of the
resolution by the General Meeting, for a mini-
mum consideration per share being at the ut-
most 30% lower than the average, unweighted
stock exchange closing price over the preceding
ten trading days and a maximum consideration
per share being at the utmost 20% higher than
the average, unweighted stock exchange clos-
ing price over the preceding ten trading days,
whereby any repurchases have to be exercised
in such a way that the Company does not hold
more than 1,300,000 treasury shares at any
time. Such repurchases may take place via the
stock exchange or a public offering or by other
legal means and for the purpose of share trans-
fer programs, in particular Long Term Incentive
Plans including Matching Share Plans, Equity
Deferrals or other stock ownership plans. The
Executive Board was further authorized to can-
cel stock repurchased or already held by the
Company without further resolution of the Gen-
eral Meeting and the Supervisory Board was
authorized to adopt amendments to the Articles
of Association resulting from the cancellation
of shares. The authorization can be exercised as
a whole or in parts and also in several tranches
by the Company, by a subsidiary (Section 189a
Number 7 Commercial Code) or by third parties
for the account of the Company and shall be
exercised always in such a manner that it is to
the benefit and in the best interest of the Com-
pany.
8.
OMV has issued perpetual hybrid notes in the
amount of EUR 2,000 mn which are subordi-
nated to all other creditors. According to IFRS,
the net proceeds of the hybrid notes in the
amount of EUR 1,987 mn are fully treated as
equity because the repayment of the principal
and the payments of interest are solely at the
discretion of OMV.
On December 7, 2015, OMV issued hybrid
notes with an aggregate size of EUR 1,500 mn,
in two tranches of EUR 750 mn each with the
following interest payable:
(i) The hybrid notes of tranche 1 bear a fixed in-
terest rate of 5.250% until, but excluding,
December 9, 2021, which is the first call date
of tranche 1. From December 9, 2021, until,
but excluding, December 9, 2025, hybrid notes
of tranche 1 will bear interest according to a
reset interest rate to be determined according to
the relevant five-year swap rate and an addi-
tional margin of 4.942% and, from December 9,
2025, with an additional step-up of 1% per
annum.
(ii) The hybrid notes of tranche 2 bear a fixed inter-
est rate of 6.250% until, but excluding, De-
cember 9, 2025, which is the first call date of
tranche 2. From December 9, 2025, tranche 2
will bear interest according to a reset interest
rate to be determined according to the relevant
five-year swap rate and an additional margin
of 5.409%, with an additional step-up of 1% per
annum.
Interest is due and payable annually in arrears
on December 9 of each year, unless OMV
elects to defer the relevant interest payments.
The outstanding deferred interest must be paid
under certain circumstances, in particular, if
the General Meeting of OMV resolves upon a
dividend payment on OMV shares.
On June 19, 2018 OMV issued a hybrid bond
with a size of EUR 500 mn. The hybrid bears a
fixed interest rate of 2.875% until, but exclud-
ing, June 19, 2024. From June 19, 2024 until,
but excluding, June 19, 2028 the hybrid notes
will bear interest at a rate according to the
relevant five-year swap rate and an additional
margin of 2.335% per annum and, from June 19,
2028, with an additional step-up of 1% per
annum. Interest is due and payable annually in
arrears on June 19 of each year, unless OMV
elects to defer the relevant interest payments.
The outstanding deferred interest must be paid
under certain circumstances, in particular, if
the General Meeting of OMV resolves upon a
dividend payment on OMV shares.
The hybrid notes outstanding as of Decem -
ber 31, 2019 do not have a scheduled maturity
date and they may be redeemed at the option
of OMV under certain circumstances. OMV has,
in particular, the right to repay the hybrid notes
at certain call dates. Any accrued unpaid inter-
est becomes payable when the bond is re-
deemed. In the case of a change of control,
OMV may call the hybrid notes for redemption
84
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
or else the applicable interest rate will be sub-
ject to an increase according to the terms and
conditions of the hybrid notes.
9.
The material financing agreements to which
OMV is a party and bonds issued by OMV con-
tain typical change of control clauses.
10. There are no agreements between the Company
and members of the Executive Board and
Supervisory Board or employees regarding the
payment of compensation in the event of a
public takeover bid.
11. The most important elements of the internal
control and risk management system regarding
the accounting process are the following:
Governance for the internal control system is
defined by internal corporate regulations (ICS
Directive and its Annexes). Corporate Internal
Audit controls the compliance with these prin-
ciples and requirements through regular audits,
based on the annual audit plan approved by
the Audit Committee of the Supervisory Board,
or through ad hoc audits.
The results of those audits are presented to
the Audit Committee of the Supervisory Board.
For the main “end-to-end” processes (e.g. pur-
chase-to-pay, order-to-cash), Group-wide Mini-
mum Control Requirements are defined. Based
on a defined time plan, the implementation
and the effectiveness are being monitored. The
establishment of Group-wide standards for
the preparation of annual and interim financial
statements by means of the corporate IFRS
Accounting Manual is also regulated by an in-
ternal corporate regulation. The Group uses a
comprehensive risk management system. The
essential processes of the financial reporting
system have been identified and analyzed. In
addition, the effectiveness of the risk manage-
ment system is regularly evaluated by external
auditors. The results of the evaluation are
reported to the Audit Committee of the Super-
visory Board.
12. In accordance with section 267a (6) of the
Commercial Code, a separate consolidated
non- financial report will be issued.
Subsequent events
Please refer to Note 37 in the Consolidated Financial
Statements.
Vienna, March 11, 2020
The Executive Board
Rainer Seele m.p.
Johann Pleininger m.p.
Reinhard Florey m.p.
Thomas Gangl m.p.
Chairman of the
Executive Board,
Chief Executive Officer
and Chief Marketing
Officer
Deputy Chairman
of the Executive Board
and Chief Upstream
Operations Officer
Chief Financial Officer
Chief Downstream
Operations Officer
85
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT
86
OMV ANNUAL REPORT 2019 / DIRECTORS’ REPORT CONSOLIDATED CORPORATE
GOVERNANCE REPORT
87 – 106
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Consolidated Corporate Governance Report
OMV, as a publicly listed company with its headquarters in Austria, is dedicated to the principles of
sound corporate governance and has always sought to comply with best practice in corporate
governance to ensure responsible management and control of the OMV Group, a high level of trans-
parency for every stakeholder and, ultimately, the sustainable and long-term creation of value.
Austrian law, the Articles of Association, the Inter-
nal Rules for the corporate bodies and the Austrian
Code of Corporate Governance (ACCG) provide
the core legal framework for OMV’s corporate gover-
nance. OMV adheres to the ACCG issued by the
Austrian Working Group for Corporate Governance.
The code is publicly accessible at www.corporate-
governance.at. OMV’s compliance with the ACCG
was last evaluated externally by independent advi-
sors in 2018. The report on the evaluation is available
at www.omv.com and confirms that OMV con-
formed to all of the compulsory “comply or explain”
rules (the “C-rules”) and also all of the recommended
rules (the “R-rules”). As for C-rules 27 and 28,
explanations concerning the variable remuneration
plans are provided in the remuneration report as
last year. The next external evaluation is scheduled
to be carried out for the 2020 financial year.
For OMV Petrom S.A., a company consolidated in
the OMV Group and the shares of which are pub licly
listed on the Bucharest Stock Exchange as well
as on the London Stock Exchange, the relevant
Corporate Governance Report can be found at
www.omvpetrom.com/en/about-us/corporate-
governance-aboutus.
In accordance with the recommendation in the
AFRAC opinion on the Corporate Governance
Report, the Corporate Governance Report of the
parent company and the consolidated Corporate
Governance Report are combined in one report.
Executive Board
Rainer Seele, * 1960
Date of initial appointment: July 1, 2015
End of the current period of tenure: June 30, 2022
Chairman of the Executive Board, Chief Executive
Officer and Chief Marketing Officer
Responsible for the overall management and
coordination of the Group as well as Marketing &
Trading
Rainer Seele received his PhD in chemistry at the
University of Göttingen and subsequently had
senior appointments at the BASF Group where in
2000 he first became a member of the executive
board and then later chairman of the executive
board at WINGas GmbH. From 2009 until 2015, he
was chairman of the board of directors of Winters-
hall Holding GmbH.
Functions in major subsidiaries of the OMV Group
Company
OMV Petrom S.A.
Borealis AG
OMV Refining &
Marketing GmbH
OMV Gas & Power
GmbH
Function
President of the Supervisory
Board
Deputy Chairman of the
Supervisory Board
Managing Director
(since July 1, 2019)
Managing Director
(since July 1, 2019)
88
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Johann Pleininger, * 1962
Date of initial appointment: September 1, 2015
End of the current period of tenure: August 31,
2023
Deputy Chairman of the Executive Board and
responsible for the Business Segment Upstream
Chief Upstream Operations Officer
Johann Pleininger started his professional career
at OMV in 1977 and later studied mechanical and
economic engineering. During his time at OMV, he
held various senior positions. From 2007 to 2013,
he was an Executive Board member of OMV Petrom
in Bucharest, responsible for Exploration & Produc-
tion. Prior to his appointment as Executive Board
member of OMV, he was the Senior Vice President
responsible for the core Upstream countries Roma-
nia and Austria as well as for the development of
the Black Sea region.
Reinhard Florey, * 1965
Date of initial appointment: July 1, 2016
End of the current period of tenure: June 30, 2021
Chief Financial Officer
Responsible for Finance
Reinhard Florey graduated with a degree in mechan-
ical engineering and economics from the Graz
University of Technology while also completing his
music studies at the University of Fine Arts. He
started his career in corporate consulting and strat-
egy consulting. From 2002 to 2012, he worked in
different positions worldwide for Thyssen Krupp AG.
Until June 2016, he was CFO and Deputy CEO of
Outokumpu Oyj.
Member of the Supervisory Boards of Wiener Börse
AG and CEESEG Aktiengesellschaft
Functions in major subsidiaries of the OMV Group
Company
OMV Petrom S.A.
OMV Petrom Global
Solutions SRL
Central European Gas
Hub AG
Function
Member of the
Supervisory Board
President of the
Supervision Body
Deputy Chairman of the
Supervisory Board
(until June 12, 2019)
Member of the Supervisory Board of FK Austria
Wien AG
Functions in major subsidiaries of the OMV Group
Company
OMV Petrom S.A.
OJSC Severnefte -
gazprom
Sapura OMV Upstream
Sdn. Bhd.
OMV Exploration
& Production GmbH
OMV Austria Exploration
& Production GmbH
Function
Member of the
Supervisory Board
(since August 10, 2019)
Member of the Board of
Directors
Deputy Chairman
(since January 31, 2019)
Managing Director
Chairman of the
Supervisory Board
89
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Thomas Gangl, *1971
Date of initial appointment: July 1, 2019
End of the current period of tenure: June 30, 2022
Executive Board member responsible
for Refining & Petrochemical Operations
Manfred Leitner, *1960
Date of initial appointment: April 1, 2011
As of June 30, 2019, Manfred Leitner resigned
as Executive Board member responsible for the
Business Segment Downstream.
Chief Downstream Operations Officer
Thomas Gangl began his OMV career in 1998 as a
process engineer at the Schwechat refinery after
studying process engineering at the Vienna Univer-
sity of Technology and mechanical engineering at
the University of Salford (Manchester). In 2011, he
became General Manager of OMV Deutschland
GmbH and Site Manager in Burghausen. He was
appointed Site Manager in Schwechat in 2014
and took over the role of Senior Vice President of
the Refining & Petrochemicals Business Unit with
responsibility for all three OMV refineries in 2016.
On July 1, 2019, Thomas Gangl became the Exe-
cutive Board member responsible for Refining &
Petrochemical Operations.
Functions in major subsidiaries of the OMV Group
Company
OMV Petrom S.A.
Borealis AG
OMV Refining &
Marketing GmbH
Function
Member of the Supervisory
Board (since July 1, 2019)
Member of the Supervisory
Board (since July 3, 2019)
Managing Director
(since July 1, 2019)
After receiving a degree in commerce from the
Vienna University of Economics and Business
Administration, Manfred Leitner joined OMV in
1985. After working for two years in the Finance
Department of the Exploration & Production busi-
ness unit, he became Head of Finance at OMV’s
branch in Tripoli, Libya. Following his return to
Austria, he was in charge of the Controlling Depart-
ment within Exploration & Production until 1997.
He then moved to the Refining & Marketing Busi-
ness Segment, where he led the Planning and
Controlling Department until 2002. He was Senior
Vice President for Downstream Optimization &
Supply from 2003 until 2011.
Functions in major subsidiaries of the OMV Group
Company
OMV Petrom S.A.
Borealis AG
OMV Supply & Trading
Limited
OMV Gas & Power
GmbH
OMV Refining &
Marketing GmbH
Central European Gas
Hub AG
GAS CONNECT
AUSTRIA GmbH
OMV Gas Storage
GmbH
OMV Gaz İletim A.Ş.
Function
Member of the Supervisory
Board (until June 30, 2019)
Member of the Supervisory
Board (until July 3, 2019)
Chairman of the Supervisory
Board (until June 30, 2019)
Managing Director
(until June 30, 2019)
Managing Director
(until June 30, 2019)
Chairman of the Supervisory
Board (until June 12, 2019)
Chairman of the Supervisory
Board (until June 30, 2019)
Chairman of the Supervisory
Board (until March 25, 2019)
Chairman of the Board of
Directors (until June 28, 2019)
OMV Enerji Ticaret A.Ş. Chairman of the Board of
Directors (until June 28, 2019)
Working practices of the Executive Board
The approval requirements, responsibilities of indi-
vidual Executive Board members, decision-making
procedures and the approach to conflicts of interest
are governed by the Internal Rules of the Executive
Board. The Executive Board holds meetings at least
every two weeks to exchange information and issue
decisions on all matters requiring plenary approval.
Remuneration report
The remuneration report gives an overview of the
overall remuneration packages provided to Execu-
tive Board members and explains the remuneration
guidelines. OMV differentiates between fixed and
variable compensation elements but also between
monetary and non-monetary components.
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OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Executive Board remuneration guidelines 2019
Compensation
Element
Base Salary
Annual Bonus
(Cash Bonus and
Equity Deferral)
Long-Term
Incentive Plan
Benefits
Retirement
Benefits
Description
Purpose & Link to Strategy
Shareholder Alignment
Salary levels take into account
the responsibilities and per-
formance of each member of
the Executive Board, the situ-
ation of OMV, and common
levels of remuneration at Euro-
pean Oil & Gas companies of
comparable size as well as
comparable Austrian compa-
nies. Compensation is set at a
competitive level.
Performance is measured
based on annual criteria. The
award is defined as a Target
Annual Bonus in euros, in the
Executive Board service con-
tracts and is capped at 180%
(150% +/– 20% Sustainability
Multiplier). 2/3 of the Annual
Bonus is paid in cash and 1/3
is allocated in shares (Equity
Deferral) that are required to
be held for three years after
vesting.
A Performance Share Plan is
employed. The number of
shares that vest depends on
the achievement of financial
performance criteria as well
as the relative Total Share-
holder Return. The number of
shares awarded is capped at
200% of the Target Long-
Term Incentive in euros, as
stated in the Executive Board
service contracts. The Super-
visory Board has the discre-
tion to adjust the overall tar-
get achievement through a
HSSE malus (HSSE = Health,
Safety, Security, and Environ-
ment)..
Executive Board members
receive a company car and
are eligible for accident insur-
ance. No additional health
coverage aside from the Aus-
trian public health system.
Defined contribution pension
schemes are granted using a
pension fund. Available capi-
tal in the pension fund deter-
mines the pension level.
Retirement age is the Austrian
statutory retirement age.
Provide a fixed level of earnings
reflecting the scale and com-
plexity of the business and the
roles and responsibilities of
each Executive Board member,
ensuring competitiveness with
the market.
Competitive compensation to
attract, retain and motivate the
most qualified managers in the
Oil & Gas industry to lead the
Company in the best interests
of shareholders.
Provide variable compensation
based on annual financial and
non-financial performance cri-
teria that are relevant to OMV’s
strategy and the Oil & Gas in-
dustry. Performance is mea-
sured against financial targets
and sustainability criteria, in-
cluding indicators pertaining to
health, safety, security and en-
vironment.
Promote medium- and long-
term value creation at OMV.
Performance is measured
against key criteria linked to
OMV’s strategy and shareholder
return. The plan also seeks to
prevent inappropriate risk-tak-
ing as well as long-term reten-
tion and ownership of Executive
Board members.
Performance criteria are closely
linked to OMV’s strategy, en-
sure pay for performance and
foster an equity culture. The
Equity Deferral serves – in addi-
tion to LTIP – as a long-term
compensation instrument for
the members of the Executive
Board, promoting retention
and alignment with shareholder
interests at OMV. Payouts are
subject to clawback provisions.
Align interests of Executive
Board and shareholders, en-
sure pay for performance and
foster an equity culture by
granting OMV shares subject
to performance criteria focus-
ing on financial and operation-
al performance and increase in
value compared to other Euro-
pean Oil & Gas companies. De-
tails on the criteria are report-
ed in the Annual Report.
Grants are subject to malus
and clawback provisions.
Provide benefits in line with
common market practice to
attract and retain Executive
Board members.
Part of a competitive compen-
sation package to attract and
retain the most qualified Exec-
utive Board members.
The rules governing defined
contribution retirement benefits
are systematically in line with
those offered to OMV employ-
ees, ensuring that compensa-
tion packages are aligned with
common market practice in
Austria.
A pension fund is used to limit
the risks borne by OMV. Pen-
sion benefits depend solely on
the available capital in the pen-
sion fund. Annuitization into a
life-long pension is in accor-
dance with the pension fund’s
approved business plan.
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OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Executive Board remuneration guidelines 2019
Compensation
Element
Shareholding
requirement
Payout cap
Description
Purpose & Link to Strategy
Shareholder Alignment
Shares equal to 200% of the
Base Salary for the CEO,
175% for the Deputy CEO and
150% for other Executive
Board members, which must
be accumulated within five
years after the respective ini-
tial appointment as Executive
Board member.
In addition to the caps de-
fined for the Annual Bonus
and the Long-Term Incentive
Plan, a cap on total annual
compensation is applied
for each Executive Board
member.
Provide long-term alignment
of interests by putting
Exe cutive Board members’
personal assets at stake.
Align interests of Executive
Board and shareholders by pro-
moting the sustainable and
long-term development of the
Company and preventing inap-
propriate risk-taking.
Absolute caps to avoid unin-
tended remuneration levels
and ensure social acceptance
of Executive remuneration
payouts and limits the risk
borne by OMV.
Align interests of Executive
Board and shareholders by pro-
moting the sustainable and
long-term development of the
Company and preventing inap-
propriate risk-taking.
The Executive Board members of OMV are employed
under local Austrian terms and conditions, and sala-
ries are therefore expressed in euros (gross). Their
employment contracts are concluded with OMV
Aktiengesellschaft and governed by Austrian law.
The remuneration of OMV’s Executive Board mem-
bers is aimed to be at competitive levels and
includes a strong performance-related component.
Competitive pay levels are ensured through regular
external benchmarking against peer groups, such as
European Oil & Gas companies and relevant Austrian
industrial companies.
Long-term shareholder and stakeholder interests
are reflected in performance-related remuneration,
which includes both short- and long-term elements.
The Executive Board’s performance is assessed
against financial and non-financial criteria. Specific
projects related to the implementation of OMV’s
strategy are also taken into account.
Pursuant to C-rules 27 and 28 of the ACCG, measur-
able performance criteria are defined in advance
for the variable remuneration components. Given the
industry-inherent volatility of commodity prices
and market conditions, political country risks as well
as increased safety exposure, the variable remu-
neration plans give the Supervisory Board and the
Remuneration Committee, certain room for adjust-
ments in line with the general practice in the Oil &
Gas industry to amend the threshold, target and
maximum levels in case of significant changes in
major external factors (e.g. oil price) as well as to
determine the achievement of certain criteria. Any
adjustments are always in line with relevant factors
and within disclosed maximum limits.
Structure of Executive Board Remuneration
The Executive Board remuneration consists of fixed
and variable compensation elements as well as
benefits. Each Executive Board member receives a
remuneration package comprising a Base Salary,
an Annual Bonus (a portion of which is paid out in
OMV shares and required to be held for three
years), a Long-Term Incentive Plan (LTIP), pension
contributions and non-cash benefits.
The majority of Executive Board members’ target
compensation is granted in the form of variable
compensation elements. For the financial year 2019,
variable elements comprised between 65% and
73% of Executive Board members’ target compensa-
tion (variance is due to higher target LTIP level for
the Chairman). In line with Austrian law and require-
ments set forth by the ACCG, a majority of variable
compensation is based on multiyear performance.
For the financial year 2019, between 35% to 49% of
the target compensation is oriented towards long-
term performance, either through the LTIP or the
deferred portion of the Annual Bonus (Equity Defer-
ral) which required to be held for three years.
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OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Overview of the Executive Board's compensation
Remuneration Component
Share of Total Target Remuneration
In %
Performance-
related
remuneration
Non-performance-
related
remuneration
Long-Term Incentive
Plan (LTIP)
Annual Bonus
(Equity Deferral)
Annual Bonus
(Cash Bonus)
Base
salary
49
24
27
37
30
33
35 – 36
29 – 32
33 – 35
Benefits
Pension
contributions
Chairman
Deputy
Chairman
Board
members
Non-performance-related remuneration
Performance-related remuneration
Base salary
The fixed base remuneration of Executive Board
members is paid monthly as a salary. The employ-
ment contracts stipulate payment of the fixed
remuneration in 14 payments per year.
Benefits
Executive Board members receive a company car
and are eligible for an accident insurance. Health
coverage for Executive Board members is provided
under the Austrian public social insurance system.
Pension contributions
All members of the Executive Board are entitled to
defined contribution pension payments, thus limiting
the risks borne by OMV. The Company pays the
contributions into a pension fund (APK-Pensions-
kasse AG). The actual amount of the company pen-
sion depends on the amount of available capital
in the pension fund. Annuitization is in accordance
with the pension fund’s approved business plan.
The retirement age for all Executive Board members
is the Austrian statutory retirement age.
Annual bonus
The Annual Bonus rewards financial performance,
operational excellence and sustainable corporate
development at OMV. For each financial year, the
Supervisory Board defines a set of performance
criteria. At maximum, the payout can amount to
180% (150% +/– 20% Sustainability Multiplier) of
the Target Annual Bonus defined in the Executive
Board service contracts.
The actual amount depends on the achievement of
financial and operational targets. Additionally, the
Sustainability Multiplier can be applied to the over-
all performance at the Supervisory Board’s discre-
tion based on a predefined set of criteria. In case of
major changes in external factors (e.g. oil price)
the Supervisory Board can adjust the target levels of
the performance criteria. The performance criteria
applied in the financial year 2019 are described in
detail below.
The payout of the Annual Bonus is split between a
Cash Bonus (2/3), which is paid in the following
financial year, and an Equity Deferral (1/3), which is
awarded in OMV shares to be held for a period of
three years (holding period). The shares are awarded
net of taxes in the following financial year and are
to be transferred to a trustee deposit managed by
OMV, for the duration of the holding period. The
Equity Deferral serves – in addition to LTIP – as a
long-term compensation instrument for the mem-
bers of the Executive Board, promoting retention
and alignment with shareholder interests at OMV.
93
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Annual Bonus 2019
Target
Annual Bonus X
Financial and
operational target
achievement
X
Modifiers
Sustainability
Multiplier (0.8 -1.2)
=
Cash Bonus
(2/3)
Financial Targets
Modifier
Equity Deferral
(1/3)
T
a
r
g
e
t
A
n
n
u
a
l
B
o
n
u
s
M
a
x
.
1
8
0
%
o
f
Performance criteria are agreed at the outset of
the performance year and then assessed after the
close of that year. The performance criteria for
the financial year 2019 comprise the areas and
adjustments set out in the table below.
Performance criteria – 2019 Annual Bonus
(Cash Bonus and Equity Deferral)
The actual payout depends on the level of actual
achievement of each performance criterion, which
is determined by comparing achieved results
against defined targets and expressed as a percent-
age. The actual achievements are validated by Ernst
& Young Wirtschaftsprüfungsgesellschaft m.b.H.
Payout occurs on a straight-line basis between the
performance levels.
Criteria Weighting
40%
Level of vesting
40%
Criteria
All criteria Maximum
Performance
Target
Threshold
Below threshold
Vesting
150%
100%
50%
0%
Reported Net Income
Clean CCS ROACE 3-year
average (2017-2019)
NPV assessment of ongoing
large investments including
acquisitions based on annu-
al change
Sustainability Multiplier
with a value between 0.8
and 1.2 (corresponds to
+/– 20%) applicable to over-
all target achievement
In case of major changes in
external factors (e.g., oil
price), the OMV Supervisory
Board has the discretion
to adjust the target levels of
the performance criteria.
20%
+/– 20%
multiplier/
discre-
tionary
discre-
tionary
The Target Annual Bonus amount for each Execu-
tive Board member is defined as follows assuming
target achievement of 100%:
Target variable remuneration – Annual Bonus 2019
In EUR
Cash Bonus
Equity Deferral
1,000,000
500,000
Seele Pleininger
Florey Gangl 1
700,000 675,000 245,000
350,000 337,500 122,500
1 Pro-rated Target Annual Bonus 2019 as Mr. Gangl joined the Executive
Board effective July 1, 2019
The actual target achievements in 2019 resulted
in a Total Actual Annual Bonus of 165.5%. The Cash
Bonus component, 2/3 of the total, is to be paid
in 2020. Under the Equity Deferral, the remaining
1/3 is to be awarded in the form of OMV shares
and required to be held for a period of three years.
Area
Financial
Operational
target
Sustainability
Multiplier
Adjustment
of financial
targets
94
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Performance scorecard – 2019 Annual Bonus (Cash Bonus and Equity Deferral)
Criteria
Reported Net Income,
adjusted for mark-
to-market valuation
of unrealized hedges,
excluding M&A
activities
Clean CCS ROACE
3-year average
Operational target
Target achievement
before financial
targets modifier
and Sustainability
Multiplier
Target achievement
after financial targets
modifier
Sustainability Multi-
plier
Total vesting
percentage
Threshold
Target Maximum
Actual Weighting
Vesting
(% of target
Value)
in EUR mn
1,770
2,080
2,390
2,146
40%
40%
44.2%
47.5%
12.5%
in %
in EUR mn
11.8%
Decrease of
non-market
NPV by
EUR (65) mn
from
baseline
12.3%
No change
in non-
market NPV
from
base-line
12.8%
Increase in
non-market
NPV by
EUR +65 mn
over
baseline
0.8
1
1.2
262
20%
30%
121.7%
142.7%
1.16
165.5%
The targets for Reported Net Income and three-year
average Clean CCS ROACE were achieved in the
financial year 2019. The operational target, the NPV
assessment of selected large investment projects,
was achieved at maximum level. Taking into account
substantial deterioration in the market environment
as compared to the assumptions on which the
Annual Bonus was based, the Supervisory Board
made use of its discretionary power and lowered
the target levels of the financial criteria, thereby
adjusting the target achievement from 121.7% to
142.7%. A predefined set of criteria was used by
the Supervisory Board in making its discretionary
decision with respect to the Sustainability Multi-
plier. In particular, improvements in environment,
safety and sustainability and the fact that there
were no fatalities in 2019 were taken into consider-
ation in amending the target achievement related
to the Sustainability Multiplier by 1.16.
Long-Term Incentive Plan
The Long-Term Incentive Plan (LTIP) is a long-term
compensation instrument for members of the
Executive Board that promotes medium- and long-
term value creation at OMV. The plan seeks to align
the interests of management and shareholders
by granting performance-based remuneration to
management in the form of OMV shares, subject to
performance against key performance criteria linked
to the medium-term strategy and shareholder
return. The plan also seeks to prevent inappropriate
risk-taking. The grant is defined as a Target Long-
Term Incentive, as stated in the Executive Board
service contracts.
Executive Board members have received an annual
grant since the plan’s introduction in 2009. The
LTIP 2019 was approved by the Annual General
Meeting 2019.
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OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Long-Term Incentive Plan (LTIP) 2019
LTIP
grant value
Ø Share
price
January 1, 2019 –
March 31, 2019
=
Share price development
FY 2019
FY 2020
FY 2021
Granted no. of
share equivalents
Performance period
Performance criteria
Ø Share
price
January 1, 2022 –
March 31, 2022
X
Final no.
of shares
=
Payout
in cash
Final no.
of shares
=
Payout
in shares
or
or
Performance criteria are agreed at the beginning
of the three-year performance period and assessed
after the close of this period. Weightings for the
respective criteria are also established at the outset
of the performance period. For the LTIP 2019 (per-
formance period: January 1, 2019, to December 31,
2021), the following performance criteria apply:
Performance criteria – LTIP 2019
Criteria
Relative Total Shareholder Return (TSR)
Free cash flow before dividends and excl.
divestments and acquisitions 3-year average
Weighting
50%
50%
the level of the LTIP payout and, depending on the
extent of the infraction, reduce it at its discretion, if
necessary to zero.
The LTIP 2019 vests on March 31, 2022. The vesting
levels for each of the performance criteria are shown
in the table below.
Relative TSR is measured against a well-balanced
Upstream/Downstream peer group of twelve Oil &
Gas companies (Shell, BP, Total, Eni, Equinor, Lundin
Petroleum, Repsol, Galp Energia, MOL, Tupras,
Neste Oil and PKN Orlen).
The actual LTIP amount depends on the level of
vesting of each performance criterion, which is
determined by comparing achieved results against
defined targets and expressed as a percentage.
The actual achievements are validated by Ernst &
Young Wirtschaftsprüfungsgesellschaft m.b.H.
Payments will vest on a straight-line basis between
the performance levels/quartiles.
A HSSE malus (HSSE = Health, Safety, Security,
and Environment) may be applied to overall target
achievement. In situations where a severe health,
safety and security or environmental breach has
occurred, the Supervisory Board can re-examine
Level of vesting
Criteria
Free cash flow before
dividends and excl.
divestments and
acquisitions 3-year
average
Relative TSR
Performance
Vesting
Maximum
Target
Threshold
Below threshold
Maximum: at or
above 3rd quartile
(≥75th percentile)
Target: at median
(=50th percentile)
Threshold: at or
below 1st quartile
(≤25th percentile)
200%
100%
50%
0%
200%
100%
0%
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OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
The Target Long-Term Incentive amounts for each
Executive Board member is defined as follows
assuming vesting levels of 100%:
Target variable remuneration – LTIP 2019
In EUR
LTIP 2019
1,500,000
Seele Pleininger
Gangl1
Florey
500,000 387,500 177,500
The total vesting percentage for the LTIP 2017 is
96.6% of the maximum grant, and the correspond-
ing transfer of shares or cash payment will be
made in 2020. The actual achievements are re-
viewed by an independent expert.
Note 32 provides additional information on the
Long-Term Incentive Plan and the Equity Deferral
(MSP).
1 Pro-rated LTIP 2019 as Mr. Gangl joined the Executive Board effective
July 1, 2019
Performance scorecard – LTIP 2017
Criteria
Relative TSR vs. peers
Threshold
Target
at or below
1st quartile
(≤25th
percentile)
at median
(=50th
percentile)
Stretch
at or
above
3rd quartile
(≥75th
percentile)
at or
above
3rd quartile
Free Cash Flow before divi-
dends excl. divestments and
acquisitions (3-year average)
3-year average Lost Time
Injury Rate
3-year average Reserve
Replacement Rate
(calculated on 1P reserves)
Performance of divestments &
acquisitions
Total vesting percentage
in
EUR mn
1,025
1,285
1,545
2,038
0.40
0.36
0.27
0.33
60%
60%
10%
10%
10%
8.1%
100%
125%
150%
166%
10%
10%
Based on pre-defined criteria
8.5%
10%
100%
8.5%
96.6%
Actual Weighting
Vesting
(% of max.
grant value)
Shareholding requirements for members
of the Executive Board
Executive Board members are required to accumu-
late an appropriate shareholding in OMV and hold
these shares until retirement or departure from the
Company. The shareholding requirement is defined
as a percentage of the annual gross base salary:
200% for the Chairman of the Executive Board, 175%
for the Deputy Chairman of the Executive Board
and 150% for other Executive Board members. The
shareholding must be accumulated and achieved
within five years after the respective initial appoint-
ment as Executive Board member. All Executive
Board members have already fulfilled at least a part
of their shareholding requirement.
To the extent the shareholding requirement is not
fulfilled, payments from the LTIP will be automati-
cally made in the form of shares (net after tax de-
duction). If the shareholding requirement is already
fulfilled, the payout can be made either in cash or
shares. The base for the calculation of the LTIP 2019
shareholding requirement is the average closing
price of the OMV share on the Vienna Stock Ex -
change over the three-month period from January 1,
2019, to March 31, 2019 (EUR 44.64).
97
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Shareholding requirement and fulfillment for LTIP 2017
Shareholding
requirement
Fulfillment
In shares
As %
salary
In shares 1
Seele
Pleininger
Florey
Gangl
62,876
32,153 2
30,009
3,966 3
200
175
150
150
91,974
45,032
24,351
10,730
As %
require-
ment
146.28
140.06
81.15
270.55
1 On Company trustee deposits
2 The stated shareholding requirement in number of shares results from
the LTIP 2017 when Mr. Pleininger still had an obligation of 150% of his
gross annual salary; since his appointment as Deputy CEO, a
shareholding requirement of 175% applies
3 The stated shareholding requirement in number of shares results from
the Senior Management LTIP 2017, when Mr. Gangl had an obligation
of 75% of his grant level; since his appointment as Executive Board
member, a shareholding requirement of 150% applies
Clawback
Both the Equity Deferral and the LTIP are subject
to clawback regulations that, under certain circum-
stances, allow for an adjustment of outstanding
compensation and/or reclaiming of compensation
already paid out. In case of a clawback event, cash
or company shares granted under Equity Deferral
or LTIP will be reduced or may be clawed back upon
request by the Supervisory Board. The following
reasons are considered clawback events: correction
of audited financial statements due to a mistake,
material failure of risk management that leads to sig-
nificant losses, and serious misconduct by individ-
ual Executive Board members that violates Austrian
law. Furthermore, in the event any payout in cash
or transfer of shares is based on an incorrect bonus
calculation, Executive Board members are required
to return or repay the compensation received on
account such calculation errors.
Remuneration levels in 2019
Executive Board remuneration 1
In EUR
Remuneration 2019
Fixed (base salary)
Fixed (functional allowance)
Variable (Cash Bonus 2018) 3
Benefits in kind (company car,
accident insurance and reimbursed
expenses)
Total
Variable (Equity Deferral 2018;
in shares)
Fixed/variable ratio 5
LTIP 2016 (cash) 7
LTIP 2016 (in shares) 7
Seele Pleininger
750,000
0
872,200
1,100,000
1,002,000 2
1,246,000
Florey
700,000
0
841,050
Gangl
(since
July 1,
2019)
287,838
0
0
Total
Leitner
(until
June 30,
2019
349,589 3,187,427
0 1,002,000
841,050 3,800,300
12,816
44,613 4
3,360,816 1,635,201 1,585,663
13,001
6,590
83,403
294,428 1,197,021 8,073,130
6,382
14,431
19/81 6
0
60,971
10,101
23/77
1,264,963
0
9,741
27/73
0
14,595
0
100/0
9,741
11/89
44,014
21/79
0 8 1,609,984 2,874,947
0
0
75,566
1 There are discrepancies between individual items and totals due to rounding differences.
2 Rainer Seele received a payment for the interim responsibility for “Marketing and Trading” since July 1, 2019.
3 The variable components relate to target achievement in 2018, for which variable compensation was paid in 2019.
4 Including schooling costs and related taxes
5 Split of total compensation. Fixed includes base salary and benefits in kind; variable includes Cash Bonus, Equity Deferral (“share part of the Annual
Bonus”) and LTIP 2016
6 If payment for the interim role included, the fixed/variable ratio is 30/70
7 LTIP payout in cash or shares depending on fulfillment of the shareholding requirement
8 Thomas Gangl received a cash payment amounting to EUR 0.23 mn based on his Senior Manager LTIP 2016
As in the past, salaries are not subject to automatic
consumer price inflation increases but instead will
be reviewed on an annual basis together with the
performance of the Executive Board members.
98
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Pension fund contributions
In EUR
Seele
Pleininger
Florey
Gangl 1
Leitner 2
Total
275,000
187,500
175,000
71,875
87,500
796,875
1 Pro-rated pension fund contribution; Mr. Gangl joined the Executive
Board effective July 1, 2019.
2 Pro-rated pension fund contribution; Mr. Leitner resigned as member
of the Executive Board effective June 30, 2019.
Termination-related benefits
Manfred Leitner resigned as member of the Execu-
tive Board effective June 30, 2019, while his con-
tract continued for six months beyond that date. He
continued to receive payments (including benefits
in kind) under his employment contract during this
period.
Based on their former employment contracts as
Executive Board members, Gerhard Roiss, David C.
Davies, Jaap Huijskes, and Manfred Leitner received
payments in 2019. David C. Davies, Jaap Huijskes
and Gerhard Roiss received LTIP payments in 2019.
Payments to former Executive Board members
In EUR
Davies Huijskes
Roiss
Leitner 3
(since
July 1,
2019
Remuneration
entitlements
for 2019 (bo-
nus and LTIP) 1
Payments for
contractual
obligations 2
Total
247,340
415,365 3,128,947
0
0
665,511
247,340 415,365 3,128,947 665,511
0
0
1 LTIP related to target achievement in 2016–2018
2 Base salary, annual leave compensation payments, benefits in kind and
pension fund contributions
3 LTIP 2016 payments (in 2019) are reported in the table of Remuneration
levels in 2019
In accordance with C-rule 27a of the ACCG, the
employment contracts with members of the Execu-
tive Board provide that settlement payments in
the event of premature termination of such contracts
without a material breach shall not exceed the
amount set forth in the ACCG (maximum of two
years annual pay). For contracts concluded after
July 2015, settlement payments in the event of
termination within the contract period have been
reduced to 18 months’ pay and have been limited
to fixed salary only. No settlement payment is
made if the Executive Board member terminates
the contract prematurely.
Directors’ and Officers’ (D&O) insurance
OMV has obtained a Directors’ and Officers’ liability
insurance (D&O insurance) on a Group-wide basis.
The expenses are borne by the Company. This
insurance covers Executive Board members, Super-
visory Board members and other OMV employees
(officers). Coverage is provided for the statutory lia-
bility of insured persons for financial losses resulting
from wrongful acts committed while acting within
the scope of their function. For the current insurance
period, the yearly premium (including taxes) for the
entire OMV Group’s D&O insurance amounts to
approximately EUR 600,000.
Indemnity
The Executive Board and officers of direct and indi-
rect subsidiaries of OMV Aktiengesellschaft, to the
extent legally possible, are also indemnified against
claims by third parties with respect to their actions
exercised within the scope of their duties, except in
cases of willful intent or gross negligence.
Remuneration principles within the OMV Group
In order to promote and support OMV’s strategy
optimally, OMV aims to ensure competitive compen-
sation and benefits packages. OMV continuously
monitors market trends and international best prac-
tices in order to attract, motivate and retain the
best-qualified talent from around the world. OMV
strives for long-lasting employment relationships.
The base salaries are set in accordance with inter-
nationally accepted methods for determining market
levels of remuneration and comply with the relevant
legal regulations and collective agreements.
The principles applicable to Executive Board remu-
neration are applied to all employees in adapted
form. In general, OMV’s remuneration is designed
to be highly competitive within relevant labor
markets in the Oil & Gas business. This is ensured
by conducting yearly salary reviews. Furthermore,
the packages include a balanced and transparent
mix of fixed and variable, monetary and non-mone-
tary components. The base salaries are market
oriented, fair and based on the position and exper-
tise of the employee. In addition, OMV uses a
variety of compensation elements to strengthen its
position as an attractive employer in the Oil & Gas
business, for example:
Performance bonuses
Long-Term Incentive Plans
Company cars and car allowances
99
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Beyond that, the benefits portfolio is customized
for each of the countries in which OMV operates to
meet the needs of the local employees. As an
example, depending on local circumstances addi-
tional incentives may include the following:
Retirement plans
Subsidized canteen
Health centers
Kindergarten
Summer Kids Camp
Anniversary payments
Recognition program – “thx!”
(“Thank you for doing great!”)
Selected employees at senior management levels
of the Group (91 individuals) are eligible for the Long-
Term Incentive Plan. This employee group is also
eligible for bonus programs, as outlined below. In
addition, the Executive Board grants a Transfor-
mation Bonus to selected employees at senior man-
agement level of the Group, which is dependent on
the fulfillment of predefined KPIs. The successful
target achievement led to a payout in 2018, another
will potentially follow in 2021.
In 2019, approximately 4,300 managers and experts
participated in a Management by Objectives (MbO)
program that entitles the participants to a bonus
if targets are reached. OMV also provides bonus
schemes for other employee groups, which vary
from country to country. Employee representatives
are involved in designing these incentive schemes.
In all these systems, bonus payments are dependent
upon the achievement of financial and non- financial
corporate targets, as well as individual targets
agreed with each employee.
Supervisory Board
OMV’s Supervisory Board consists of ten members
elected by the General Meeting (shareholders’
representatives) and five members delegated by the
Group works council. One of the current share-
holders’ representatives was elected at the 2015
Annual General Meeting (AGM) and nine were
elected at the 2019 AGM. The members of OMV’s
Supervisory Board in 2019 and their appointments
to supervisory boards of other domestic or foreign
listed companies as well as any management func-
tions held are shown below.
Peter Löscher, * 1957
Chairman (until May 14, 2019)
Seats: Sulzer AG (Chairman), Telefonica, S. A.
Wolfgang C. Berndt, * 1942
Chairman (since May 14, 2019)
Seats: no seats in domestic or foreign listed
companies
Thomas Schmid, * 1975
Deputy Chairman (since May 14, 2019)
Seats: Verbund AG, Telekom Austria AG
Alyazia Ali Al Kuwaiti, * 1979
Deputy Chairwoman
(Executive Director Upstream & Integrated,
Mubadala Investment Company PJSC)
Seats: no seats in domestic or foreign listed
companies
Mansour Mohamed Al Mulla, * 1979
(Platform CFO Petroleum & Petrochemicals,
Mubadala Investment Company PJSC)
Seats: Aldar Properties PJSC
Elif Bilgi Zapparoli, * 1967
(until May 14, 2019)
(Global Co-Head Capital Markets & Co-Head of
APAC Global Corporate and Investment Banking,
Bank of America Merrill Lynch)
Seats: no seats in domestic or foreign listed
companies
Stefan Doboczky, * 1967
(since May 14, 2019)
(Chief Executive Officer Lenzing AG)
Seats: no seats in domestic or foreign listed
companies
Helmut Draxler, * 1950
(until May 14, 2019)
Seats: no seats in domestic or foreign listed
companies
100
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Marc H. Hall, * 1958
(until May 14, 2019)
(Managing Director, R&EM – Restructuring
& Energy Management e.U.)
Seats: no seats in domestic or foreign listed
companies
Karl Rose, * 1961
(Strategy Advisor, Abu Dhabi National Oil Company)
Seats: no seats in domestic or foreign listed
companies
Elisabeth Stadler, * 1961
(since May 14, 2019)
(Chief Executive Officer VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe)
Seats: voestalpine AG
Christoph Swarovski, * 1970
(since May 14, 2019)
(Chief Executive Officer, Tyrolit AG)
Seats: no seats in domestic or foreign listed
companies
Cathrine Trattner, * 1976
(since May 14, 2019)
Seats: no seats in domestic or foreign listed
companies
Gertrude Tumpel-Gugerell, * 1952
Seats: Commerzbank AG, VIENNA INSURANCE
GROUP AG Wiener Versicherung Gruppe, AT&S
Austria Technologie & Systemtechnik AG
Herbert Werner, * 1948
(until May 14, 2019)
(Managing Director, HCW Verkehrsbetriebe GmbH;
Managing Director, HCW Vermögensverwaltungs
GmbH)
Seats: Ottakringer Getränke AG (Deputy Chairman)
Delegated by the Group works council
(employee representatives)
Christine Asperger, * 1964
Herbert Lindner, * 1961
Alfred Redlich, * 1966
Gerhard Singer, * 1960
Angela Schorna, * 1980
More detailed information about all members of
OMV’s Supervisory Board, including their profes-
sional careers, can be obtained from OMV’s web -
site at www.omv.com > About us > Supervisory
Board.
Diversity
The main considerations in selecting the members
of the Supervisory Board are relevant knowledge,
personal integrity and experience in executive posi-
tions. Furthermore, aspects of diversity of the
Supervisory Board with respect to the international-
ity of the members, the representation of both gen-
ders, and the age structure are taken into account.
The Supervisory Board includes six women and two
non-Austrian nationals. The members of the Super-
visory Board are aged between 39 and 77.
Independence
The Supervisory Board has defined the criteria
that constitute independence (resolutions dated
March 21, 2006, and March 25, 2009). In addition
to the guidelines set out in Annex 1 of the ACCG,
the Supervisory Board has established the follow ing
criteria with regard to its members elected by the
General Meeting:
A Supervisory Board member shall not serve on
the Executive Board of an OMV Group company.
A Supervisory Board member shall not hold
stock options issued by the Company or any
affiliated company, or receive any other perfor-
mance-related remuneration from an OMV
Group company.
A Supervisory Board member shall not be a
shareholder with a controlling interest in the
meaning of EU Directive 83/349/EEC (i.e. an
interest of more than 50% of the voting rights
or a dominant influence, e.g. through the right
to appoint Board members) or represent such a
shareholder.
All members elected by the General Meeting except
Helmut Draxler and Herbert Werner, with regard
to the duration of their terms, have declared their
independence from the Company and its Executive
Board during the 2019 financial year and up to
the time of making such declarations (C-rule 53 of
the ACCG). Under C-rule 54 of the ACCG, Peter
Löscher, Wolfgang C. Berndt, Elif Bilgi Zapparoli,
Stefan Doboczky, Helmut Draxler, Marc H. Hall,
Karl Rose, Elisabeth Stadler, Christoph Swarovski,
Cathrine Trattner, Gertrude Tumpel-Gugerell and
Herbert Werner have made declarations to the effect
that they were not shareholders with a stake of
more than 10% or represented such shareholders’
interests during the financial year 2019 and up to
the time of making such declarations. Peter Löscher,
Marc H. Hall and Gertrude Tumpel-Gugerell were
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OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
nominated for election as Supervisory Board mem-
bers by the nomination committee of Österreichi sche
Bundes- und Industriebeteiligungen GmbH (“ÖBIB”)1
and, subsequently (after being so proposed by the
Presidential and Nomination Committee and the
Supervisory Board), they were elected as Super-
visory Board members. Wolfgang C. Berndt, Thomas
Schmid, Stefan Doboczky, Karl Rose, Elisabeth
Stadler, Christoph Swarovski and Cathrine Trattner
were nominated for the election as Supervisory
Board members by Österreichische Beteiligungs AG1,
which must comply with the strict independence
and incompatibility criteria of the Austrian Corpo-
rate Governance Code when nominating or appoint-
ing persons as members of the Supervisory Boards
of its affiliated companies and ensure that they
exercise their activities on the Supervisory Boards
of the affiliated companies independently of their
own interests or those of legal entities closely asso-
ciated with them.
Position and committee memberships in 2019 1
Name
Supervisory Board and
Committees 2019 1
AC
PPC
PNC
SB
Peter Löscher
C
Wolfgang C. Berndt
C
Thomas Schmid 4
DC
Alyazia Ali Al Kuwaiti DC
Mansour Mohamed
Al Mulla
Elif Bilgi Zapparoli
Stefan Doboczky
Helmut Draxler
M
M
M
Marc H. Hall
Karl Rose
Elisabeth Stadler
Christoph Swarovski
Cathrine Trattner
Gertrude Tumpel-
Gugerell
Herbert Werner
Christine Asperger
Herbert Lindner
Alfred Redlich
Angela Schorna
Gerhard Singer
M
M
M
M
M
M
M
M
M
M
M
M
M
C
C
DC
DC
M
–
–
–
–
–
–
–
–
–
–
M
–
M
–
–
DC
M
DC
DC
M
–
–
–
M
C
–
–
–
–
–
–
M
M
–
M
M
M
M
DC
–
–
–
M
–
–
DC
–
M
C
M
–
M
–
M
M
Remuneration
Term of office
for 2018 2
in EUR
80,000
44,000
–
44,600
24,438
20,000
–
40,000
30,000
34,000
–
–
–
67,110
30,000
– 5
– 5
– 5
– 5
– 5
for 2019 3
in EUR
36,712 May 18, 2016, to May 14, 2019
65,517 May 26, 2010, to 2020 AGM
44,934 May 14, 2019, to 2024 AGM
91,250 May 22, 2018, to 2024 AGM
May 22, 2018, to 2014 AGM
50,000
9,178 May 13, 2009, to May 14, 2019
12,657 May 14, 2019, to 2022 AGM
October 16, 1990,
to May 14, 2019
14,684
11,013 May 18, 2016, to May 14, 2019
34,000 May 18, 2016, to 2024 AGM
20,252 May 14, 2019, to 2022 AGM
18,986 May 14, 2019, to 2022 AGM
23,732 May 14, 2019, to 2022 AGM
53,912
11,013
May 19, 2015, to 2020 AGM
June 4, 1996, to May 14, 2019
– 5 Since January 1, 2013 6
– 5 Since June 1, 2013 6
– 5 Since June 1, 2013 6
– 5 Since March 23, 2018 6
– 5 Since September 26, 2016 6
RC
C
C
DC
DC
–
–
–
M
–
–
–
M
–
M
–
–
–
–
–
–
1 Abbreviations: SB = Supervisory Board, PNC = Presidential and Nomination Committee, PPC = Portfolio and Project Committee, AC = Audit Committee,
RC = Remuneration Committee. C = Chairman/Chairwoman; DC = Deputy Chairman/Chairwoman; M = Member; AGM = Annual General Meeting;
Members of the Supervisory Board whose term ended in the business year 2018 are not listed herein.
2 Meeting fees in the amount of EUR 400/meeting, as well as any applicable reimbursement of withholding tax, are not included therein.
3 Based on remuneration as adopted by the 2019 AGM; subject to approval by the 2020 AGM
4 In accordance with the employment contract as CEO of ÖBAG, Thomas Schmid transferred his remuneration to ÖBAG.
5 Members delegated to the Supervisory Board by the Group works coun cil do not receive remuneration but just attendance expenses.
6 Delegation by the Group works council is for an indefinite period of time; however, the employee representatives may be recalled at any time by the
delegating body.
1 With effect from February 20, 2019 Österreichische Bundes- und Industriebeteiligungen GmbH was transformed into a joint-stock company
(Aktiengesellschaft) and renamed Österreichische Beteiligungs AG.
102
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Working practices of the Supervisory Board
The Supervisory Board fulfills its duties – in par-
ticular supervising the Executive Board and advis-
ing it on strategy – by discussing the Company’s
situation and objectives during board meetings.
Decisions are also taken at these meetings, except
in urgent cases where resolutions can be taken
by circular vote. Four committees ensures that best
possible use is made of the Supervisory Board
members’ expertise. Brief descriptions of these
committees are given below (see also the Report
of the Supervisory Board for an overview of the
individual committees’ main activities in 2019).
In 2019, eight meetings of the Supervisory Board
and 24 Committee meetings were held. In several
of these meetings, the Executive Board and the
Supervisory Board discussed OMV strategy. With
exception of Elif Bilgi Zapparoli, no member of
the Supervisory Board attended fewer than half of
the meetings.
Attendance of Supervisory Board and Committee
meetings in 2019 was as follows:
Attendance of Supervisory Board and Committee
Meetings in 2019 1
Name
Peter Löscher ²
Wolfgang C. Berndt
Thomas Schmid ³
Alyazia Ali Al Kuwaiti
Mansour Mohamed
Al Mulla
Elif Bilgi Zapparoli
Stefan Doboczky ³
Helmut Draxler ²
Marc H. Hall ²
Karl Rose
Elisabeth Stadler ³
Christoph Swarovski ³
Cathrine Trattner ³
Gertrude Tumpel-
Gugerell
Herbert Werner ²
Christine Asperger
Herbert Lindner
Alfred Redlich
Angela Schorna
Gerhard Singer
SB
3/3
8/8
5/5
5/8
7/8
1/3
4/5
2/3
3/3
7/8
4/5
4/5
5/5
7/8
3/3
8/8
5/8
8/8
8/8
8/8
AC
3/3
7/7
4/4
7/7
RC
2/2
6/6
4/4
5/6
PNC PPC
2/2
3/3
1/1
5/5
1/1
5/5
2/3
6/8
7/8
3/3
3/3
2/2
2/2
2/3
3/4
6/6
2/4
4/4
7/7
3/3
5/7
7/7
7/7
3/3
2/2
8/8
8/8
3/3
3/3
2/3
1 Abbreviations: SB = Supervisory Board, PNC = Presidential and Nomination
Committee, PPC = Portfolio and Project Committee, AC = Audit Committee,
RC = Remuneration Committee
² Until May 14, 2019
³ Since May 14, 2019
Pursuant to C-rule 36, the Supervisory Board shall
discuss the efficiency of its activities annually,
in particular its organization and work procedures
(self-evaluation). In the 2019 financial year, the
Supervisory Board initiated a thorough self-evalua-
tion of its activities with external support, the
results of which will be extensively discussed with-
in the Supervisory Board in the first half of 2020.
Presidential and Nomination Committee
This committee is empowered to take decisions on
matters of urgency. The Supervisory Board may
transfer other duties and powers of approval to the
Presidential and Nomination Committee on an ad
hoc or permanent basis. In its capacity as the Nom-
ination Committee, this body makes proposals
to the Supervisory Board for the appointment or
replacement of Executive Board members and
deals with succession planning. It also makes rec-
ommendations to the General Meeting for appoint-
ments to the Supervisory Board. There were eight
meetings of the Presidential and Nomination Com-
mittee in 2019, in which discussions focused on
Executive and Supervisory Board matters.
Audit Committee
This committee performs the duties established by
section 92 (4a) Stock Corporation Act. The com-
mittee held seven meetings during the year. It pre-
dominantly dealt with preparations for the audit
of the annual financial statements, a review of the
auditors’ activities, internal audit, the internal
control and risk management systems, as well as
the presentation of the annual financial state -
ments. Gertrude Tumpel-Gugerell is the financial
expert on the Audit Committee in the meaning of
section 92 (4a) (1) Stock Corporation Act.
Auditors
The Supervisory Board monitors the auditors’ inde-
pendence and reviews a breakdown of the audit fees
and fees for additional services besides auditing
activities. In 2019, the auditors Ernst & Young Wirt-
schaftsprüfungsgesellschaft m.b.H. (including
their network in the meaning of section 271b Code
of Commerce) received EUR 3.15 mn for the
annual audit, EUR 0.71 mn for other assurance ser-
vices, EUR 0.09 mn for tax advisory services and
EUR 0.29 mn for other engagements.
Portfolio and Project Committee
This committee supports the Executive Board in
preparing complex decisions on key issues where
necessary and reports on these decisions and any
recommendations to the Supervisory Board. In
2019, three meetings of the Portfolio and Project
Committee were held.
103
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Remuneration Committee
This committee deals with all aspects of the remu-
neration of Executive Board members and with
their employment contracts. The committee’s mem-
bership does not include employee representatives.
The committee is empowered to conclude, amend
and terminate Executive Board members’ employ-
ment contracts and to take decisions on the award-
ing of bonuses (variable remuneration components)
and other such benefits to them. The Remuneration
Committee met six times during 2019. Executive
Board members were invited to attend parts of some
of the meetings of the Remuneration Committee.
hkp/// group was appointed by the Remuneration
Committee and provided remuneration advice to
the Committee, which included the development of
remuneration benchmarks with comparable com-
panies, advice on the appropriate structure and level
of Executive Board compensation in line with regu-
latory requirements and market practice as well as
support for the development of the remuneration
policy.
In 2019 hkp/// group was also appointed by OMV and
by OMV Petrom. They provided advice to OMV, in
relation to governance processes between OMV and
OMV Petrom, and to OMV Petrom, in relation to
remuneration issues of Executive and Supervisory
Board members of OMV Petrom. hkp/// group did
not advise the OMV Executive Board in matters
relating to remuneration, ensuring independence
with respect to the Austrian Code of Corporate
Governance.
Conflicts of interest and dealings by members
of the Supervisory Board requiring approval
There were no transactions requiring approval in
accordance with section 95 (5) (12) Stock Corpora-
tion Act. The Internal Rules of the Supervisory
Board contain detailed procedures for the treatment
of conflicts of interest on the part of Supervisory
Board members.
Remuneration
In accordance with the Articles of Association, the
AGM resolves the remuneration of the Supervisory
Board members elected by the General Meeting for
the previous financial year. The 2019 AGM adopted
the remuneration scale for the 2018 financial year as
shown in the table below.
Remuneration for Supervisory Board members
In EUR 1
Chairman/Chairwoman
Deputy Chairman/Chairwoman
Ordinary member
Committee Chairman/Chairwoman
Committee Deputy Chairman/Chairwoman
Ordinary Committee member
30,000
25,000
20,000
14,000
12,000
10,000
1 Meeting fees in the amount of EUR 400/meeting, as well as any applicable
reimbursement of withholding tax, are not included therein.
The amounts for the 2018 financial year were dis-
bursed to the Supervisory Board members concerned
in 2019; these were exclusive of expenses (travel and
attendance expenses).
In 2019, the Supervisory Board members’ remuner-
ation (for the 2018 financial year and including
reimbursement for withholding tax as applicable)
amounted to EUR 0.51 mn, attendance expenses for
EUR 0.10 mn and travel expenses for EUR 0.14 mn.
Employee participation
The Group works council holds regular meetings
with the Executive Board in order to exchange
information on developments affecting employees.
Furthermore, the Group works council has made
use of its right to delegate members to the Super-
visory Board (one employee representative for every
two members elected by the General Meeting).
Therefore, out of the 15 Supervisory Board mem-
bers, five members are employee representatives.
Rights of minority shareholders
General Meeting: An Extraordinary General
Meeting must be convened at the request of
shareholders holding not less than 5% of the
shares.
Agenda items must be included at the request
of shareholders holding not less than 5% of the
shares.
Shareholders holding not less than 1% of the
shares may submit resolution proposals on
all agenda items. Such resolution proposals must
be posted on the website upon request of the
respective shareholders.
Shareholders holding not less than 10% of the
shares may require an extraordinary audit in the
event of grounds for suspicion of irregularities,
or gross violations of the law or the Articles of
Association.
104
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
All shareholders having duly provided evidence
of their shareholding are entitled to attend Gen-
eral Meetings, ask questions and vote.
Election of the Supervisory Board: If elections for
two or more positions to the Supervisory Board
are held at the same General Meeting, separate
votes must be held for each position. If elections
for three or more seats on the Supervisory Board
are held at the same General Meeting, and if prior
to the vote on the last position to be assigned it
is found that at least one-third of all the votes have
been cast in favor of the same person but he or
she has not been elected, then this person must
be declared as Supervisory Board member.
Women’s Advancement and Diversity Concept
Diversity is an enormous strength that OMV active-
ly builds on now, and in the future. Consequently
OMV strives to continuously develop new initiatives
and measures that promote diversity and equal
opportunities. OMV is committed to its Group diver-
sity strategy focusing on gender and internationality.
As a company active in an industry with a strong
technical focus, it is particularly challenging for OMV
to achieve a satisfactory gender balance in all fields
of business activity. OMV is committed to support-
ing women’s advancement to managerial positions.
The strategic objective is to achieve the best diver-
sity mix at the senior management level. The aim
is to increase the proportion of women in Senior
Leadership roles, from 19.6% currently to 25% by
2025 through a number of initiatives such as mento-
ring, succession planning, specific trainings as well
as initiatives to promote a healthy work/life balance.
The proportion of women in the Group as a whole
has risen to 26% (2018: 25%), 19.6% of whom are in
management and executive positions. OMV reached
a notable share of 47% of female participants in our
new Leadership Refresher program for managers
who have been with the Group for several years. In
OMV’s Upstream integrated graduate development
program for technical skill pools, the proportion of
women was 27% in 2019 (2018: 25%). The topic of
diversity has been incorporated into all Leadership
Development programs and embedded into the OMV
People Strategy.
OMV promotes talents from different backgrounds,
thus ensuring the best mix in diverse teams. OMV
especially supports the recruitment and develop-
ment of women in technical positions.
By using gender-neutral language in OMV’s job ad -
vertisements and publishing all job advertisements
internally, together with the constant monitoring
of equality with regard to gender, age, employee
background, seniority as well as salaries, OMV
is ensuring fair treatment and contributing to equal
opportunities among men and women at all career
stages.
Female employees initiated a Diversity Network to
raise awareness of diversity topics and to boost
the careers of women in technical fields through a
collaboration site and joint activities.
OMV’s Head Office in Vienna has two company
kindergartens attended by children of OMV employ-
ees. In order to spark girls’ interest in technical
careers early on, OMV again participated in Vienna’s
Girls’ Day.
The Executive Board and Supervisory Board consider
the described measures and programs to foster the
diversity of the workforce as a key factor in strength-
ening the diversity of the internal pool of Executive
Board succession candidates. The Presidential and
Nomination Committee concerns itself at least
once a year with the identification and development
of high-potential employees. In addition to internal
succession planning, the Supervisory Board also
makes use of external recruitments in order to best
fill open Executive Board positions. When selecting
Executive Board members – be it internally or exter-
nally – special attention is given to balance gender,
age, and international experience in addition to pro-
fessional skills.
Currently, there is no women on the Executive Board
of OMV. The Executive Board members of OMV
Aktiengesellschaft are between 48 and 59 years old,
are from two different nationalities, and have
acquired extensive international management expe-
rience.
Since 2019, ÖBAG has had a legal mandate to pro-
pose candidates for the Supervisory Boards of its
shareholdings. The ÖBAG management proposal is
subject to approval by the ÖBAG presidium, before
– after submission of the proposal by the supervisory
board of OMV Aktiengesellschaft – the election by
the Annual General Meeting of OMV AG takes place.
The selection of candidates is based on various cri-
teria, particularly the candidates’ professional skills,
personal integrity, independence, and impartiality.
In addition, diversity aspects such as the representa-
tion of both genders, a balanced age distribution,
and internationality of members is taken into consid-
eration.
105
OMV ANNUAL REPORT 2019 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
At present, the Supervisory Board of OMV includes
six women, corresponding to a share of 40%. Par-
ticular focus will be given to a further strengthening
of industry-specific expertise and the internationa-
lity of Super-visory Board members in line with the
company’s strategic orientation. With members
aged between 39 and 77 years, the Supervisory
Board’s age structure is balanceded.
External evaluation of Corporate Governance
An external evaluation of OMV’s compliance with
the provisions of the ACCG is performed biennially.
For 2018, OMV engaged Mathias Ettel of the law
firm Berger Ettel Rechtsanwälte. The official ques-
tionnaire of the Austrian Working Group for Cor-
porate Governance was used for the evaluation, and
the result was that OMV is in full compliance with
the Austrian Corporate Governance Code including
all non-compulsory recommendations. The report
of the evaluation is available for download on OMV’s
website (www. omv.com).
Vienna, March 11, 2020
The Executive Board
Rainer Seele m.p.
Johann Pleininger m.p.
Reinhard Florey m.p.
Thomas Gangl m.p.
106
CONSOLIDATED FINANCIAL
STATEMENTS AND NOTES
107 – 228
108 — Auditor’s Report
118 — Consolidated Income Statement for 2019
119 — Consolidated Statement of Comprehensive Income for 2019
120 — Consolidated Statement of Financial Position as of December 31, 2019
122 — Consolidated Statement of Changes in Equity for 2019
124 — Consolidated Statement of Cash Flows for 2019
Notes to the Consolidated Financial Statements
125 — Basis of Preparation and Accounting Policies
142 — Segment Reporting
146 — Notes to the Income Statement
155 — Notes to the Statement of Financial Position
187 — Supplementary Information on the Financial Position
204 — Other Information
218 — Oil and Gas Reserve Estimation and Disclosures (unaudited)
228 — Executive Board
Key Audit Matters
Key audit matters are those matters that, in our pro-
fessional judgment, were of most significance in
our audit of the consolidated financial statements
of the fiscal year. These matters were addressed
in the context of our audit of the consolidated finan-
cial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters.
We considered the following matters as key audit
matters for our audit:
1. Purchase Price Allocation acquisition of
SapuraOMV Upstream Sdn. Bhd. and a stake
in Abu Dhabi Oil Refining Company
2. Recoverability of intangible exploration and
evaluation (E&E) assets
3. Estimation of oil and gas reserves
4. Recoverability of receivables from Romanian
State
5. Estimation of provision for decommissioning
and restoration obligations
Auditor’s Report 1
Report on the Consolidated Financial
Statements
Audit Opinion
We have audited the consolidated financial state-
ments of
OMV Aktiengesellschaft, Vienna,
and of its subsidiaries (the Group) comprising the
consolidated statement of financial position as of
December 31, 2019, the consolidated income state-
ment, the consolidated statement of comprehen-
sive income, the consolidated statement of changes
in equity and the consolidated statement of cash
flows for the fiscal year then ended and the notes
to the consolidated financial statements except for
“Oil and Gas Reserve Estimation and Disclosures
(unaudited)”.
Based on our audit the accompanying consolidated
financial statements were prepared in accordance
with the legal regulations and present fairly, in all
material respects, the assets and the financial posi-
tion of the Group as of December 31, 2019 and its
financial performance for the year then ended in
accordance with the International Financial Report-
ing Standards (IFRSs) as adopted by EU, and the
additional requirements under Section 245a Austrian
Company Code (UGB).
Basis for Opinion
We conducted our audit in accordance with the
regulation (EU) no. 537/2014 (in the following “EU
regulation”) and in accordance with Austrian Stan-
dards on Auditing. Those standards require that we
comply with International Standards on Auditing
(ISA). Our responsibilities under those regulations
and standards are further described in the “Auditor’s
Responsibilities for the Audit of the Consolidated
Financial Statements” section of our report. We are
independent of the Group in accordance with the
Austrian General Accepted Accounting Principles
and professional requirements and we have fulfilled
our other ethical responsibilities in accordance
with these requirements. We believe that the audit
evidence we have obtained is sufficient and appro-
priate to provide a basis for our opinion.
1 This report is a translation of the original report in German, which is solely valid. Publication or sharing with third parties of the consolidated financial
statements together with our auditor's opinion is only allowed if the consolidated financial statements and the directors’ report for the Group are
identical with the German audited version. This audit opinion is only applicable to the German and complete consolidated financial statements with
the directors’ report for the Group. Section 281 paragraph 2 UGB (Austrian Company Code) applies to alternated versions.
108
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
We assessed management’s purchase price allo-
cation. Specifically our work included, but was not
limited to, the following procedures:
Read the purchase agreement to gain an under-
standing of the key terms and conditions and to
assess the adequacy of the accounting treatment;
Assess the competence of external specialists
and the objectivity and independence of external
specialists, to consider whether they were
appropriately qualified to carry out the valuation;
Engage our internal valuation specialist to assist
us in the audit of the purchase price allocation
and discount rates used;
Assess the valuation model, the cash flow fore-
casts, cost approaches and the key assumptions
used in the calculation of the assets’ and decom-
missioning and restoration obligations’ fair value;
and
Assess the adequacy of the Group’s disclosures
in the financial statements.
Purchase Price Allocation for acquisition of
SapuraOMV Upstream Sdn. Bhd. and a
stake in Abu Dhabi Oil Refining Company
On January 31, 2019, OMV completed the acquisi-
tion of 50% of SapuraOMV Upstream Sdn. Bhd.
in Malaysia. The net assets acquired at January 31,
2019 amounted to EUR 287 mn and are fully
consolidated in OMV’s Group financial statements.
On July 31, 2019, OMV completed the acquisition
of 15% shares of Abu Dhabi Oil Refining Company
(ADNOC Refining). The total acquisition cost of
EUR 2,150 mn for the 15% stake is accounted pursu-
ant to IAS 28 and IFRS 3 using the equity method.
Under IFRS, an entity is required to allocate the
purchase price in recognizing assets acquired and
liabilities assumed at the acquisition date at fair
values.
The valuation of assets acquired and liabilities
assumed is judgmental and complex, requiring
significant judgement in applying forecasts and
assumptions made by management.
The principal risk relates to the initial estimates of
the fair values of the identifiable assets and decom-
missioning and restoration obligations assumed
together with the deferred taxes on acquisition in
preparing the purchase price allocation.
Given the extent of the judgment in valuing these
assets and obligations, we believe that the fair
value calculation carries significant risk of material
misstatement.
OMV management engaged an independent
expert to provide valuation support with respect to
the determination of the fair values of the assets
acquired and liabilities assumed under IAS 28 and
IFRS 3.
OMV Group’s disclosures about the acquisition of
SapuraOMV Upstream and shares in Abu Dhabi Oil
Refining Company are included in Note 3 (Changes
in group structure).
109
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS Key Audit Matter
How our audit addressed the key audit matter
Recoverability of intangible exploration and
evaluation (E&E) assets
The carrying value of intangible E&E assets
amounted to EUR 2,500 mn at December 31, 2019,
after a write off (impairment) of EUR 92 mn in 2019.
We evaluated management’s assessment of the
carrying value of intangible E&E assets performed
with reference to the criteria of IFRS 6 and the
Group’s accounting policy. Specifically, our work
included, but was not limited to, the following
procedures:
Under IFRS 6, Exploration for and Evaluation of
Mineral Resources, exploration and evaluation assets
shall be assessed for impairment when facts and
circumstances suggest that the carrying value of an
exploration and evaluation asset may exceed its
recoverable amount.
Inquire whether management has the intention
to carry out exploration and evaluation activity
in the relevant exploration area which included
the review of management’s budget and discus-
sions with senior management as to the inten-
tions and strategy of the Group;
The assessment of the carrying value requires
management to apply judgement and estimates in
assessing whether any impairment has arisen at
year end, and in quantifying any such impairment.
Read Executive Board minutes of meetings and
consider whether there were negative indicators
that certain projects might be unsuccessful;
The principal risks relate to management’s intention
to proceed with a future work program for a pros-
pect or licence, the likelihood of licence renewal,
and the success of drilling and geological analysis
to date.
Discuss with management about the status of
the largest exploration projects;
Assess whether the Group has the ability to
finance any planned future exploration and
evaluation activity;
OMV Group’s disclosures about intangible E&E
assets and related impairment testing are included
in Note 2 (Accounting policies, judgements and
estimates), Note 7 (Depreciation, amortization and
impairment charges) and Note 14 (Intangible assets).
Identify the existence of any fields where the
Group’s right to explore is either at, or close to,
expiry and review management’s assessment
whether there are any risks related to renewal
of the licence;
Review of supporting evidence where an E&E
asset has been impaired; and
Assess the adequacy of the Group’s disclosures
in the financial statements.
110
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS Key Audit Matter
How our audit addressed the key audit matter
Estimation of oil and gas reserves
Oil and gas reserves are an indicator of the future
potential of the group’s performance. Furthermore,
they have an impact on the financial statements
as they are the basis for
production profiles in future cash flow estimates
Our procedures have focused on management’s
estimation process in the determination of oil and
gas reserves. Specifically our work included, but
was not limited to, the following procedures:
Walkthrough and understand the Group’s pro-
cess and controls associated with the oil and gas
reserves estimation process;
depreciation, amortization and impairment
Test controls of the oil and gas reserves review
charges and
process;
the valuation of the financial asset related to the
reserves redetermination right out of the acqui-
sition of an interest in the Yuzhno Russkoye field
in 2017.
Analysis of the internal certification process for
technical and commercial specialists who are
responsible for oil and gas reserves estimation;
Assess the competence of both internal and
The estimation of oil and gas reserves requires
judgement and assumptions made by management
and engineers due to the technical uncertainty in
assessing quantities.
external specialists and the objectivity and inde-
pendence of external specialists, to consider
whether they were appropriately qualified to
carry out the estimation of oil and gas reserves;
The principal risk of the oil and gas reserves esti-
mate is the impact on the group’s financial state-
ments through impairment testing, depreciation &
amortization, decommissioning provision estimate
and the valuation of the financial asset related to
the reserves redetermination right.
Analyse the bi-annual report of DeGolyer and
MacNaughton (D&M) on their review of Group’s
estimated oil and gas reserves (latest report as
at July 1, 2018) and analyze the report of the
additional external specialist engaged by OMV
for one case dated February 11, 2019;
OMV Group’s disclosures about oil and gas reserves
and related impairment testing are included in
Note 2 (Accounting policies, judgements and esti-
mates), Note 7 (Depreciation, amortization and
impairment charges), Note 18 (Financial assets) and
Note 23 (Provisions).
Test whether significant additions or reductions
in oil and gas reserves were made in the period
in which the new information became available
and in compliance with Group’s Reserves and
Resources Guidelines;
Test that the updated oil and gas reserve esti-
mates were included appropriately in the Group’s
consideration of impairment, in accounting for
depreciation & amortization and the valuation of
the financial asset related to the reserves rede-
termination right; and
Assess the adequacy of the Group’s disclosures
in the financial statements.
111
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS Key Audit Matter
How our audit addressed the key audit matter
Recoverability of receivables
from Romanian State
As part of the privatization agreement regarding
OMV Petrom SA, the Group is entitled to the reim-
bursement by the Romanian State of part of wells
abandonment (decommissioning) and environ mental
costs incurred to restore and clean up areas per-
taining to activities prior to privatization in 2004.
Consequently, the Group has recorded receivables
from the Romanian State amounting to EUR 410 mn
at December 31, 2019.
The assessment of the recoverability of the receiv-
ables from the Romanian State, requires manage-
ment to make judgements and estimates to assess
the uncertainty regarding the expenditure recover-
able from Romanian State. The assessment process
considers inter alia history of amounts claimed,
documentation process and requirements, potential
arbitration proceedings.
OMV Group’s disclosures about Environmental and
Decommissioning State Receivables are included
in Note 2 (Accounting policies, judgements and esti-
mates) and Note 18 (Financial assets).
We assessed management’s estimate regarding
recoverability of the receivables from the Romanian
State. Our work included, but was not limited to,
the following procedures:
Read the stipulations of the Annex P of the pri-
vatization agreement dated July 23, 2004, related
to the acquisition by OMV Aktiengesellschaft
of shares in the National Petroleum Company
Petrom SA, as approved by Law no. 555/2004.
Annex P includes stipulations related to the obli-
gation of the seller (i.e. Ministry of Economy
and Commerce) to reimburse the Company for
historical environmental losses and abandon-
ment costs, provided certain conditions are met;
Review management’s assessment of the recov-
erability of the receivables from the Romanian
State, including the history of amounts claimed
vs. amounts accepted and reimbursed, and dis-
cuss with management about the status of the
notices of claims submitted by the Group and of
the arbitration process;
Obtained and read the independent lawyers’
assessment of the status of the Arbitration,
that was considered by the Company for the
measurement of the State Receivable;
Trace the receivables for which notices of claim
have been submitted to the respective notices
of claims;
Trace the receivables for which decommissioning
was performed but the notices of claim have not
yet been submitted to the respective decommis-
sioning costs;
Trace the receivables for which decommissioning
has not yet been performed against the respective
decommissioning provisions;
Discuss with management the estimates of timing
of collection;
Involve our valuation specialists to assist us in
the analysis of discount rates and inflation rates;
Test the mathematical accuracy of the calcula-
tion of the net present value of the receivables
recorded; and
Assess the adequacy of the Group’s disclosures
in the financial statements.
112
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS Key Audit Matter
How our audit addressed the key audit matter
Estimation of provision for decommissioning
and restoration obligations
The total provision for decommissioning and
restoration obligations amounted to EUR 3,959 mn
at December 31, 2019.
Group’s core activities regularly lead to obligations
related to dismantling and removal, asset retirement
and soil remediation activities.
The principal risk relates to management’s estimates
of future costs, discount rates and inflation rates,
which are used to project the provision for decom-
missioning and restoration obligations.
OMV Group’s disclosures about the provision for
decommissioning and restoration obligations are
included in Note 2 (Accounting policies, judgements
and estimates) and Note 23 (Provisions).
We assessed management’s annual estimation of
the provision for decommissioning and restoration
obligations. Specifically, our work included, but
was not limited to, the following procedures:
Assess the design and implementation of the
controls over the decommissioning and resto-
ration obligations estimation process;
Compare current estimates of costs with actual
decommissioning and restoration costs previous-
ly incurred. Where no previous data was avail-
able, we reconciled cost estimates to third party
support or the Group’s engineers’ estimates;
Inspection of supporting evidence for any material
revisions in cost estimates during the year;
Confirm whether the decommissioning dates are
consistent with the Group’s budget and business
plans;
Involve our valuation specialists to assist us in
the analysis of discount rates and inflation rates;
and
Test the mathematical accuracy of the decom-
missioning and restoration obligation calculation;
and
Assess the adequacy of the Group’s disclosures
in the financial statements.
113
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS Responsibilities of Management and of
the Audit Committee for the Consolidated
Financial Statements
Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements
Management is responsible for the preparation of
the consolidated financial statements in accordance
with IFRS as adopted by the EU, and the additional
requirements under Section 245a Austrian Com-
pany Code (UGB) for them to present a true and
fair view of the assets, the financial position and
the financial performance of the Group and for
such internal controls as management determines
are necessary to enable the preparation of consol-
idated financial statements that are free from mate-
rial misstatement, whether due to fraud or error.
In preparing the consolidated financial statements,
management is responsible for assessing the
Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern and using the going concern basis of
accounting unless management either intends to
liquidate the Group or to cease operations, or has
no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance
about whether the consolidated financial state-
ments as a whole are free from material misstate-
ment, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Rea-
sonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in
accordance with the EU regulation and in accor-
dance with Austrian Standards on Auditing, which
require the application of ISA, always detect a
material misstatement when it exists. Misstate-
ments can arise from fraud or error and are consid-
ered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with the EU regu-
lation and in accordance with Austrian Standards
on Auditing, which require the application of ISA,
we exercise professional judgment and maintain
professional scepticism throughout the audit.
The Audit Committee is responsible for overseeing
the Group’s financial reporting process.
We also:
identify and assess the risks of material misstate-
ment of the consolidated financial statements,
whether due to fraud or error, design and per-
form audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement
resulting from fraud is higher than for one result-
ing from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations,
or the override of internal control;
114
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS We communicate with the Audit Committee re -
garding, among other matters, the planned scope
and timing of the audit and significant audit find-
ings, including any significant deficiencies in inter-
nal control that we identify during our audit.
We also provide the Audit Committee with a state-
ment that we have complied with relevant ethical
requirements regarding independence, and to com-
municate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with the Audit
Committee, we determine those matters that were
of most significance in the audit of the financial
statements of the current period and are therefore
the key audit matters. We describe these matters
in our auditor’s report unless law or regulation pre-
cludes public disclosure about the matter or when,
in extremely rare circumstances, we determine
that a matter should not be communicated in our
report because the adverse consequences of doing
so would reasonably be expected to outweigh
the public interest benefits of such communication.
obtain an understanding of internal control rele-
vant to the audit in order to design audit proce-
dures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion
on the effectiveness of the Group’s internal
control;
evaluate the appropriateness of accounting poli-
cies used and the reasonableness of accounting
estimates and related disclosures made by man-
agement;
conclude on the appropriateness of manage-
ment’s use of the going concern basis of account-
ing and, based on the audit evidence obtained,
whether a material uncertainty exists related
to events or conditions that may cast significant
doubt on the Group’s ability to continue as a
going concern. If we conclude that a material
uncertainty exists, we are required to draw atten-
tion in our auditor’s report to the related disclo-
sures in the consolidated financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our
auditor’s report. However, future events or condi-
tions may cause the Group to cease to continue
as a going concern;
evaluate the overall presentation, structure and
content of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlying transactions and events in a manner
that achieves fair presentation;
obtain sufficient appropriate audit evidence
regarding the financial information of the entities
or business activities within the Group to express
an opinion on the consolidated financial state-
ments. We are responsible for the direction, super-
vision and performance of the group audit. We
remain solely responsible for our audit opinion.
115
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS Report on Other Legal and Regulatory
Requirements
Comments on the Director’s Report for the Group
Pursuant to Austrian Generally Accepted Account-
ing Principles, the directors’ report for the Group is
to be audited as to whether it is consistent with the
consolidated financial statements and as to whether
the directors’ report for the Group was prepared in
accordance with the applicable legal regulations.
Management is responsible for the preparation of
the directors’ report for the Group in accordance
with Austrian Generally Accepted Accounting Prin-
ciples.
We conducted our audit in accordance with Austrian
Standards on Auditing for the audit of the directors’
report for the Group.
Opinion
In our opinion, the directors’ report for the Group
was prepared in accordance with the valid legal
requirements, comprising the details in accordance
with Section 243a Austrian Company Code (UGB),
and is consistent with the consolidated financial
statements.
Statement
Based on the findings during the audit of the con-
solidated financial statements and due to the thus
obtained understanding concerning the Group and
its circumstances no material misstatements in the
directors’ report for the Group came to our attention.
Other Information
Management is responsible for the other informa-
tion. The other information comprises the informa-
tion included in the annual report and the annual
financial report (but does not include the consoli-
dated financial statements, the directors’ report
for the Group and the auditor’s report thereon).
From the other information we received the “Con-
solidated Corporate Governance Report” and the
“Consolidated Report on the Payments Made to
Government” prior to the date of this auditor’s
report. The annual report and the annual financial
report including the remaining other information
therein is estimated to be provided to us after the
date of the auditor's report. Our opinion on the
consolidated financial statements does not cover
the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read
the other information, as soon as it is available,
and, in doing so, to consider whether – based on
our knowledge obtained in the audit – the other
information is materially inconsistent with the con-
solidated financial statements or otherwise appears
to be materially misstated.
If, based on the work we have performed on the
other information that we obtained prior to the date
of this auditor’s report, we conclude that there is a
material misstatement of this other information, we
are required to report that fact. We have nothing to
report in this regard.
Additional information in accordance with
article 10 EU regulation
We were elected as auditor by the ordinary general
meeting at May 14, 2019. We were appointed by
the Supervisory Board on June 24, 2019. We are
auditors without cease since 2011.
We confirm that the audit opinion in the Section
“Report on the consolidated financial statements”
is consistent with the additional report to the audit
committee referred to in article 11 of the EU regula-
tion.
We declare that no prohibited non-audit services
(article 5 par. 1 of the EU regulation) were provided
by us and that we remained independent of the
audited company in conducting the audit.
Responsible Austrian Certified Public Accountant
The engagement partner on the audit resulting
in this independent auditor’s report is Mr. Gerhard
Schwartz, Certified Public Accountant.
Vienna, March 11, 2020
Ernst & Young
Wirtschaftsprüfungsgesellschaft m. b. H.
Gerhard Schwartz m.p.
Wirtschaftsprüfer/Certified Public Accountant
Alexander Wlasto m.p.
Wirtschaftsprüfer/Certified Public Accountant
116
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS 117
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Consolidated Income Statement for 2019
Consolidated income statement
In EUR mn
Sales revenues
Other operating income
Net income from equity-accounted investments
Total revenues and other income
Purchases (net of inventory variation)
Production and operating expenses
Production and similar taxes
Depreciation, amortization and impairment charges
Selling, distribution and administrative expenses
Exploration expenses
Other operating expenses
Operating Result
Dividend income
Interest income
Interest expenses
Other financial income and expenses
Net financial result
Profit before tax
Taxes on income and profit
Net income for the year
thereof attributable to stockholders of the parent
thereof attributable to hybrid capital owners
thereof attributable to non-controlling interests
Basic Earnings Per Share in EUR
Diluted Earnings Per Share in EUR
Note
4, 5
6
6, 16
17
7
7, 8
9
31
11, 31
11, 31
11, 31
12
13
13
2019
23,461
315
386
24,162
(13,608)
(1,695)
(496)
(2,337)
(1,892)
(229)
(322)
3,582
5
169
(304)
1
(129)
3,453
(1,306)
2,147
1,678
75
393
5.14
5.13
2018
22,930
517
391
23,839
(14,094)
(1,594)
(392)
(1,827)
(1,749)
(175)
(485)
3,524
20
117
(290)
(72)
(226)
3,298
(1,305)
1,993
1,438
78
477
4.40
4.40
118
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
for 2019
Consolidated statement of comprehensive income
In EUR mn
Net income for the year
Note
2019
2,147
2018
1,993
Exchange differences from translation of foreign operations
Gains/(losses) arising during the year, before income taxes
Reclassification of (gains)/losses to net income
Gains/(losses) on hedges
Gains/(losses) arising during the year, before income taxes
Reclassification of (gains)/losses to net income
Share of other comprehensive income of equity-accounted investments
Total of items that may be reclassified (“recycled”) subsequently to
the income statement
Remeasurement gains/(losses) on defined benefit plans
Gains/(losses) on equity investments
Gains/(losses) on hedges that are subsequently transferred to the carrying
amount of the hedged item
Share of other comprehensive income of equity-accounted investments
Total of items that will not be reclassified (“recycled”) subsequently to
the income statement
Income taxes relating to items that may be reclassified (“recycled”)
subsequently to the income statement
Income taxes relating to items that will not be reclassified (“recycled”)
subsequently to the income statement
Total income taxes relating to components of other comprehensive income
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
thereof attributable to stockholders of the parent
thereof attributable to hybrid capital owners
thereof attributable to non-controlling interests
3, 6, 9
28
16
23
18
28
16
21
21
39
39
—
(45)
(11)
(34)
(1)
28
(87)
115
195
43
152
59
(7)
282
(90)
1
95
(6)
(114)
26
9
(3)
0
(82)
10
(7)
4
(3)
2,144
1,752
75
316
(52)
(3)
(55)
144
2,137
1,587
78
472
119
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Consolidated Statement of Financial Position
as of December 31, 2019
Assets
In EUR mn
Intangible assets
Property, plant and equipment
Equity-accounted investments
Other financial assets
Other assets
Deferred taxes
Non-current assets
Inventories
Trade receivables
Other financial assets
Income tax receivables
Other assets
Cash and cash equivalents
Current assets
Assets held for sale
Total assets
Note
14
15
16
18
19
25
17
18
18
19
26
20
2019
4,163
16,479
5,151
2,414
56
686
28,950
1,845
3,042
3,121
11
297
2,931
11,248
177
40,375
2018
3,317
15,115
3,011
2,659
36
759
24,896
1,571
3,420
2,727
9
264
4,026
12,017
47
36,961
120
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Equity and liabilities
In EUR mn
Share capital
Hybrid capital
Reserves
OMV equity of the parent
Non-controlling interests
Total equity
Provisions for pensions and similar obligations
Bonds
Lease liabilities
Other interest-bearing debts
Provisions for decommissioning and restoration obligations
Other provisions
Other financial liabilities
Other liabilities
Deferred taxes
Non-current liabilities
Trade payables
Bonds
Lease liabilities
Other interest-bearing debts
Income tax liabilities
Provisions for decommissioning and restoration obligations
Other provisions
Other financial liabilities
Other liabilities
Current liabilities
Liabilities associated with assets held for sale
Total equity and liabilities
Note
22
21
23
24
24
24
23
23
24
24
25
24
24
24
24
23
23
24
24
20
2019
327
1,987
10,698
13,012
3,851
16,863
1,111
5,262
934
620
3,872
572
301
157
1,132
13,961
4,155
540
120
148
332
87
293
2,818
903
9,395
2018
327
1,987
9,591
11,905
3,436
15,342
1,096
4,468
—
441
3,673
446
924
138
731
11,917
4,401
539
—
304
349
63
355
2,806
863
9,680
156
40,375
22
36,961
121
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Consolidated Statement of Changes in Equity for 2019
Consolidated statement of changes in equity in 2019 1
In EUR mn
January 1, 2019
Net income for the year
Other comprehensive income for the year
Total comprehensive income for the year
Dividend distribution and hybrid coupon
Disposal of treasury shares
Share-based payments
Increase/(decrease) in non-controlling interest
Reclassification of cash flow hedges to balance sheet
December 31, 2019
Consolidated statement of changes in equity in 2018 1
In EUR mn
Share
capital
Capital
reserves
Hybrid
capital
Revenue
reserves
Translation of
foreign
operations
327
1,511
1,987
—
—
—
—
—
—
—
—
327
—
—
—
—
3
(8)
—
—
1,506
—
—
—
—
—
—
—
—
1,987
8,830
1,753
(79)
1,674
(673)
—
—
—
—
9,832
(809)
—
115
115
—
—
—
—
—
(694)
Share
capital
Capital
reserves
Hybrid
capital
Revenue
reserves
Translation of
foreign
operations
January 1, 2018
Adjustments on initial application of IFRS 9 and IFRS 15
Adjusted balance January 1, 2018
Net income for the year
Other comprehensive income for the year
Total comprehensive income for the year
Capital increase
Dividend distribution and hybrid coupon
Changes in hybrid capital
Disposal of treasury shares
Share-based payments
Increase/(decrease) in non-controlling interests
Reclassification of cash flow hedges to balance sheet 2
December 31, 2018
327
—
327
—
—
—
—
—
—
—
—
—
—
327
1,517
—
1,517
2,231
—
2,231
—
—
—
—
—
—
4
(11)
—
—
1,511
—
—
—
496
—
(741)
—
—
—
—
1,987
8,006
39
8,045
1,516
(87)
1,429
—
(576)
(60)
—
0
(8)
—
8,830
(838)
—
(838)
—
29
29
—
—
—
—
—
(0)
—
(809)
1 See Note 21 – OMV equity of the parent
2 The amount was mainly related to inventories that were already consumed as of December 31, 2018 and consequently recognized in the income
statement.
122
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Share of other compr.
income of equity-ac-
counted investments
Hedges
Treasury shares
OMV equity of the
parent
Non-controlling
interests
Total equity
39
—
46
46
—
—
—
—
(43)
41
26
—
(8)
(8)
—
—
—
—
(1)
18
(6)
—
—
—
—
2
—
—
—
(4)
11,905
1,753
74
1,827
(673)
5
(8)
—
(44)
13,012
3,436
393
(77)
316
(188)
—
—
287
(0)
3,851
15,342
2,147
(3)
2,144
(861)
5
(8)
287
(44)
16,863
Share of other compr.
income of equity-ac-
counted investments
Hedges
Treasury shares
OMV equity of the
parent
Non-controlling
interests
Total equity
8
—
8
—
152
152
—
—
—
—
—
—
(122)
39
(27)
3
(24)
—
55
55
—
—
—
—
—
—
(5)
26
(8)
—
(8)
—
—
—
—
—
—
3
—
—
—
(6)
11,216
42
11,259
1,516
149
1,665
496
(576)
(800)
7
(10)
(9)
(126)
11,905
3,118
0
3,118
477
(5)
472
—
(161)
—
—
—
7
0
3,436
14,334
42
14,377
1,993
144
2,137
496
(737)
(800)
7
(10)
(2)
(126)
15,342
123
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Consolidated Statement of Cash Flows for 2019
Consolidated statement of cash flows
In EUR mn
Net income for the year
Depreciation, amortization and impairments
Write-up of non-current assets
Deferred taxes
Current taxes
Income taxes paid
Tax refunds
Losses/(gains) from disposal of non-current assets and businesses
Income from equity-accounted investments and other dividend income
Dividends received from equity-accounted investments and other companies
Interest expense
Interest paid
Interest income
Interest received
Increase/(decrease) in personnel provisions
Increase/(decrease) in provisions
Other changes
Sources of funds
Decrease/(increase) in inventories
Decrease/(increase) in receivables
Increase/(decrease) in liabilities
Changes in net working capital components
Cash flow from operating activities
Investments
Intangible assets and property, plant and equipment
Investments, loans and other financial assets
Acquisitions of subsidiaries and businesses net of cash acquired
Disposals
Proceeds in relation to non-current assets
Proceeds from the sale of subsidiaries and businesses, net of cash disposed
Cash flow from investing activities
Increase in long-term borrowings
Repayments of long-term borrowings
Increase/(decrease) in short-term borrowings
Dividends paid to OMV equity holders
Dividends paid to non-controlling interests
Increase hybrid bond
Cash flow from financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Thereof cash disclosed within Assets held for sale
Cash and cash equivalents presented in the consolidated statement of
financial position
Note
7
6
12
12
6, 9
6, 18, 31
11, 31
11, 31
23
23
26
17
18, 19
24
3, 14, 15
3, 18
3
3
26
26
26
21
22
21
26
26
2019
2,147
2,430
(35)
100
1,207
(1,263)
5
(7)
(391)
354
170
(160)
(145)
63
(59)
35
(187)
4,264
(260)
372
(320)
(208)
4,056
(2,158)
(2,265)
(460)
209
36
(4,638)
1,376
(980)
(22)
(673)
(186)
—
(484)
(22)
(1,088)
4,026
2,938
7
2018
1,993
1,886
(106)
298
1,007
(831)
2
(2)
(411)
437
131
(149)
(108)
44
(54)
(8)
93
4,223
(73)
(1,041)
1,287
173
4,396
(3,193)
(305)
(357)
60
442
(3,353)
1,011
(1,805)
102
(621)
(158)
496
(975)
(22)
45
3,981
4,026
—
26
2,931
4,026
124
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements
Basis of Preparation and Accounting Policies
1 Basis of preparation
OMV Aktiengesellschaft (registered in the Austrian
Register of Companies with its office based at
Trabrennstraße 6–8, 1020 Vienna, Austria), is an
integrated, international oil and gas company with
activities in Upstream and Downstream.
These financial statements have been prepared and
are in compliance with International Financial
Reporting Standards (IFRSs) as adopted by the EU
and in accordance with the supplementary account-
ing regulations pursuant to Sec. 245a, Para. 1 of the
Austrian Commercial Code (UGB). The financial year
corresponds to the calendar year.
The consolidated financial statements are in general
based on the historical cost principle, except for
certain items that have been measured at fair value
as described in Note 2 – Accounting policies,
judgements and estimates.
The consolidated financial statements for 2019 have
been prepared in million EUR (EUR mn, EUR 1,000,000).
Accordingly, there may be rounding differences.
The consolidated financial statements comprise the
financial statements of OMV Aktiengesellschaft and
the entities it controls (its subsidiaries) as at
December 31, 2019. The financial statements of all
consolidated companies are prepared in accord-
ance with uniform group-wide accounting policies.
A list of subsidiaries, equity-accounted investments
and other investments is included under Note 38 –
Direct and indirect investments of OMV Aktien-
gesellschaft – including consolidation method,
business segment, place of business and interest
held by OMV.
The consolidated financial statements for 2019 were
approved and released for publication by the
Supervisory Board on March 11, 2020.
2 Accounting policies, judgements and estimates
1) First-time adoption of new or amended
standards and interpretations
The accounting policies adopted are consistent with
those of the previous financial year, except for the
changes as described below.
The Group has initially adopted IFRS 16 Leases
starting with January 1, 2019. The effects of this
standard are described in the following chapter.
Additionally, the Group has adopted the following
amended standards and interpretations with a date
of initial application of January 1, 2019:
► Amendments to IFRS 9 Prepayment Features
with Negative Compensation
► Amendments to IAS 28 Long-term Interests in
Associates and Joint Ventures
► Annual Improvements to IFRS Standards 2015-
2017 Cycle (amendments to IFRS 3, IFRS 11,
IAS 12 and IAS 23)
► Amendments to IAS 19 Plan Amendment,
Curtailment or Settlement
► IFRIC 23 Uncertainty over Income Tax Treat-
ments
These amendments did not have a material impact
on the consolidated financial statements of the
Group.
2) IFRS 16 Leases
This standard replaces IAS 17 and sets out new
rules for lease accounting. For the lessee’s account-
ing, IFRS 16 eliminates the classification of leases as
either operating leases or finance leases as was
required by IAS 17 and, instead, introduces a single
lessee accounting model. Applying that model,
a lessee is required to recognize right-of-use assets
and liabilities for leases in the scope of IFRS 16 and
depreciation of the right-of-use assets separately
from interest on lease liabilities in the income
statement. The right-of-use assets are depreciated
on a straight-line basis over the shorter of the
asset’s useful life and the lease term. Interest
expense is charged to profit or loss over the lease
period on the remaining balance of the lease
liability for each period. For lessors, there are minor
changes compared to IAS 17.
On transition to IFRS 16, OMV applied the practical
expedient to grandfather the assessment of which
transactions are leases. This means it applied
125
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
IFRS 16 only to contracts that were previously
identified as leases. Contracts that were not
identified as leases under the previous standard
were not reassessed for whether they are leases.
Additionally, OMV did not recognize any right-of-use
assets and lease liabilities for contracts that expire
in 2019 because they are treated as short-term
leases.
Leases to explore for and use oil and natural gas,
which comprise mainly land leases used for such
activities, are not in the scope of IAS 17 and
IFRS 16. In addition, some commitments are
covered by the exceptions for short-term and low
value leases. Consequently, right-of-use assets and
lease liabilities were not recognized for these
contracts. Moreover, non-lease components are
separated from the lease components for meas-
urement of right-of-use assets and lease liabilities.
OMV initially applied IFRS 16 on January 1, 2019,
using the modified retrospective approach for
transition, thus not restating comparative amounts
for the comparative period presented. The right-of-
use assets for previous operating leases were
measured at the date of initial application at the
amount of the lease liability, adjusted by prepaid or
accrued lease payments as well as existing onerous
contract provisions for operating leases. The lease
liabilities were measured at the present value of the
lease payments over the remaining lease term,
discounted using the incremental borrowing rate as
of January 1, 2019. The weighted average lessee’s
incremental borrowing rate applied to these lease
liabilities on January 1, 2019, was 0.94%.
The first-time application of IFRS 16 resulted in
recognizing EUR 688 mn as right-of-use assets and
EUR 706 mn as lease liabilities for previous operat-
ing leases. For leases previously classified as
finance leases the Group recognized the carrying
amount of the lease asset and lease liability before
transition as the carrying amount of the right-of-use
asset and lease liability at the date of initial applica-
tion. In the consolidated statement of financial
position, the right-of-use assets are presented
within property, plant and equipment and lease
liabilities as a separate position.
Reconciliation of future operating lease commitments as at December 31, 2018 to lease
liability as at January 1, 2019
In EUR mn
Future minimum lease payments under non-cancellable operating leases
as at December 31, 2018
less minimum lease payments for short-term leases
less minimum lease payments for low value leases
plus minimum lease payments under reasonably certain prolongation or termination options
Gross lease liability for previously unrecognized operating lease commitments
as at January 1, 2019
less discounting effect as at January 1, 2019
Lease liability for previously unrecognized operating lease commitments
as at January 1, 2019
Finance lease liability recognized as at 31 December, 2018
Lease liability recognized as at January 1, 2019
January 1, 2019
480
(27)
(2)
314
765
(60)
706
288
994
3) Amendment to IAS 12 Income taxes
The Annual Improvements to IFRS Standards 2015–
2017 Cycle included a change in IAS 12 Income
taxes, which requires that the income tax conse-
quences of dividends shall be recognized in profit or
loss, other comprehensive income or equity
according to where the entity originally recognized
those past transactions or events, which form the
basis for the dividend payments.
The hybrid capital in OMV represents equity under
IFRS and accordingly the interest payments to the
hybrid capital owners are treated as dividends. As
the profits distributed to hybrid capital owners are
tax deductible, the tax consequences according to
the new provision need to be recognized in profit or
loss, whilst in the past the tax effects of such
dividend payments were recognized directly in
equity.
Because of the tax loss situation of the Austrian tax
group (see Note 12 – Taxes on income and profit
and Note 25 – Deferred tax) the hybrid capital
interests did not lead to current tax savings but
increased the tax loss carry forwards. According to
the tax planning no deferred tax assets had been
created for tax losses carryforward for 2018 and the
years before.
126
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
4) New and revised standards not yet mandatory
OMV has not applied the following new or revised
IFRSs that have been issued but are not yet
effective. They are not expected to have any material
effects on the Group’s financial statements.
EU endorsement is still pending in some cases.
Standards and amendments
Amendment to IFRS 3 Business Combinations
Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform
Amendments to IAS 1 and IAS 8 Definition of Material
Amendments to References to the Conceptual Framework in IFRS Standards
IFRS 17 Insurance Contracts
Amendments to IAS 1 Classification of Liabilities as Current and Non-Current
IASB effective date
January 1, 2020
January 1, 2020
January 1, 2020
January 1, 2020
January 1, 2021
January 1, 2022
5) Significant accounting policies, judgements
and assumptions
Use of estimates and judgements
Preparation of the consolidated financial state-
ments requires management to make estimates
and judgements that affect the amounts reported
for assets, liabilities, income and expenses, as
well as the amounts disclosed in the notes. These
estimates and assumptions are based on histori-
cal experience and other factors that are deemed
reasonable at the date of preparation of these
financial statements. Actual outcomes could
differ from these estimates. The estimates and
assumptions having the most significant impact
on OMV Group results are highlighted below and
should be read together with the relevant notes
mentioned. Significant estimates and assump-
tions have been made particularly with respect to
oil and gas reserves, provisions for decommis-
sioning and restoration obligations, provisions
for onerous contracts and the recoverability of
intangible assets and property, plant and equip-
ment and other financial assets, which mainly
refer to the contractual position towards Gaz-
prom with regard to the reserves redetermination
of Yuzhno Russkoye field and the expenditure
recoverable from the Romanian State related to
decommissioning, restoration and environmental
obligations.
a) Business combinations and goodwill
Business combinations are accounted for using the
acquisition method. Assets and liabilities of
subsidiaries acquired are included at their fair value
at the time of acquisition. For each business
combination, the Group elects whether it measures
the non-controlling interest in the acquiree either at
fair value or at the proportionate share of the
acquiree’s identifiable net assets.
Any contingent consideration is measured at fair
value at the date of acquisition. Contingent consid-
eration classified as financial asset or liability is
subsequently measured at fair value with the
changes in fair value recognized in profit or loss.
Goodwill is calculated as the excess of the aggre-
gate of the consideration transferred, the amount
recognized for non-controlling interest and the fair
value of the equity previously held by OMV in the
acquired entity over the net identifiable assets
acquired and liabilities assumed. Goodwill is
recorded as an asset and tested for impairment at
least yearly. Impairments are recorded immediately
through profit or loss, subsequent write-ups are not
possible. Any gain on a bargain purchase is
recognized in profit or loss immediately.
b) Sales revenue
Revenue is generally recognized when control over
a product or a service is transferred to a customer.
It is measured based on the consideration specified
in a contract with a customer and excludes amounts
collected on behalf of third parties.
When goods such as crude oil, LNG, oil products
and similar goods are sold, the delivery of each
quantity unit normally represents a single perfor-
mance obligation. Revenue is recognized when
control of the goods has transferred to the custom-
er, which is the point in time when legal ownership
as well as the risk of loss has passed to the custom-
er and is determined on the basis of the Incoterm
agreed in the contract with the customer. These
sales are done with normal credit terms according
to the industry standard.
Revenue from the production of crude oil, in which
OMV has an interest with other producers, is
recognized according to the sales method. This
means that revenue is recognized based on the
actual sales to third parties, regardless of the
Group’s percentage interest or entitlement. An
127
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
adjustment of production costs is recognized at
average cost for the difference between the costs
associated with the output sold and the costs
incurred based on entitlement to output, with a
counter entry in the other assets or liabilities.
In the Downstream Oil retail business, revenues
from the sale of fuels are recognized when products
are supplied to the customers. Depending on
whether OMV is principal or agent in the sale of
shop merchandise, revenue and costs related to
such sales are presented gross or net in the income
statement. OMV is principal if it controls the goods
before they are transferred to the customer, which is
mainly indicated by OMV having the inventory risk.
At filling stations, payments are due immediately at
the time of purchase.
OMV’s gas and power supply contracts include a
single performance obligation which is satisfied
over the agreed delivery period. Revenue is
recognized according to the consumption by the
customer and in line with the amount to which OMV
has a right to invoice. Only in exceptional cases
long-term gas supply contracts contain stepped
prices in different periods where the rates do not
reflect the value of the goods at the time of delivery.
In these cases revenue is recognized based on the
average contractual price.
In some customer contracts for the delivery of
natural gas, the fees charged to the customer
comprise a fixed charge as well as a variable fee
depending on the volumes delivered. These
contracts contain only one performance obligation
which is to stand-ready for the delivery of gas over a
certain period. The revenue from the fixed charges
and the variable fees is recognized in line with the
amount chargeable to the customer. Gas and power
deliveries are billed and paid on a monthly basis.
Gas storage and gas transportation contracts
contain a stand-ready obligation for providing
storage or transportation services over an agreed
period of time. Revenue is recognized according to
the amount to which OMV has a right to invoice.
These services are billed and paid on a monthly
basis.
There are some customer contracts in OMV for the
delivery of oil and gas as well as for the provision of
gas storage and transportation services which have
a term of more than one year. In principle, IFRS 15
requires the disclosure of the total amount of
transactions prices allocated to unperformed
performance obligations for such contracts.
Contracts for the delivery of oil contain variable
128
prices based on market prices as at delivery date, as
it is common in the oil industry. For these contracts
it is, therefore, not possible to allocate the transac-
tion price to unsatisfied performance obligations.
For gas delivery and gas storage and transportation
contracts OMV applies the practical expedient
according to IFRS 15.121 (b) according to which this
information need not be disclosed for contracts
where revenue is recognized in the amount to which
the entity has a right to invoice. OMV, therefore,
does not disclose this information.
c) Other revenues
Sales and purchases of commodities are reported
net within other revenues when the forward sales
and purchase contracts are determined to be for
trading purposes and not for the final physical
delivery and therefore are in the scope of IFRS 9.
Other revenues also include an adjustment of
revenues from considering the national oil compa-
ny’s profit share as income tax in certain production
sharing agreements in the Upstream segment (see
2.5f), realized and unrealized results from hedging
of sales transactions as well as lease and rental
income.
d) Exploration expenses
Exploration expenses relate exclusively to the
business segment Upstream and comprise the
costs associated with unproved reserves. These
include geological and geophysical costs for the
identification and investigation of areas with
possible oil and gas reserves and administrative,
legal and consulting costs in connection with
exploration. They also include all impairments on
exploration wells where no proved reserves could
be demonstrated. Depreciation of economically
successful exploration wells is reported as deprecia-
tion, amortization and impairment charges.
e) Research and development
Expenditure related to research activities is recog-
nized as expense in the period in which it is
incurred. Research and development (R&D)
expenses, which are presented in the income
statement within other operating expenses, include
all direct and indirect materials, personnel and
external services costs incurred in connection with
the focused search for new insights related to the
development and significant improvement of
products, services and processes and in connection
with research activities. Development costs are
capitalized if the recognition criteria according to
IAS 38 are fulfilled.
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
f) Exploration and production sharing agreements
Exploration and production sharing agreements
(EPSAs) are contracts for oil and gas licenses in
which the oil or gas production is shared between
one or more oil companies and the host coun-
try/national oil company in defined proportions.
Exploration expenditures are carried by the oil
companies as a rule and recovered from the state or
the national oil company through so called “cost
oil” in a successful case only. Under certain EPSA
contracts the host country’s/national oil company’s
profit share represents imposed income taxes and
is treated as such for purposes of the income
statement presentation.
g) Intangible assets and property, plant and
equipment
Intangible assets and property, plant and equipment
are recognized at costs of acquisition or construc-
tion (including costs of major inspection and
general overhauls). The present value of the
expected cost for the decommissioning of an asset
after its use is included in the cost of the respective
asset when a decommissioning provision is
recognized (see 2.5s). Costs for replacements of
components are capitalized and carrying values of
the replaced parts are derecognized. Costs relating
to minor maintenance and repairs are treated as
expenses in the year in which they are incurred.
Intangible assets and depreciable property, plant
and equipment (except for oil and gas assets and a
contract-related intangible asset in Upstream, see
2.5h) are amortized or depreciated on a straight-line
basis over the useful economic life.
Useful life
Intangible assets
Goodwill
Software
Concessions, licenses, contract-related intangible assets etc.
Business-specific property, plant and equipment
Upstream
Downstream Gas
Downstream Oil
Oil and gas wells
Gas pipelines
Gas power plant
Storage tanks
Refinery facilities
Pipeline systems
Filling stations
Other property, plant and equipment
Production and office buildings
Other technical plant and equipment
Fixtures and fittings
Years
Indefinite
3–5
5–20, contract duration or unit-of
production method
Unit-of-production method
30
8–30
40
25
20
5–20
20–50
10–20
4–10
h) Oil and gas assets
Upstream activities are recorded using the success-
ful efforts method. The acquisition costs of geologi-
cal and geophysical studies before the discovery of
proved reserves form part of expenses for the
period. The costs of wells are capitalized and
reported as intangible assets until the existence or
absence of potentially commercially viable oil or
gas reserves is determined. Wells which are not
commercially viable are expensed. The costs of
exploration wells whose commercial viability has
not yet been determined continue to be capitalized
as long as the following conditions are satisfied:
► Sufficient oil and gas reserves have been
discovered that would justify completion as a
production well.
► Sufficient progress is being made in assessing
the economic and technical feasibility to justify
beginning field development in the near future.
Exploratory wells in progress at year end which are
determined to be unsuccessful subsequent to the
statement of financial position date are treated as
non-adjusting events, meaning that the costs
incurred for such exploratory wells remain capital-
ized in the financial statements of the reporting
period under review and will be expensed in the
subsequent period.
129
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
License acquisition costs and capitalized exploration
and appraisal activities are not amortized as long as
they are related to unproved reserves, but tested for
impairment when there is an indicator for a
potential impairment. Once the reserves are proved
and commercial viability is established, the related
assets are reclassified into tangible assets. Devel-
opment expenditure on the construction, installa-
tion or completion of infrastructure facilities such as
platforms and pipelines and drilling development
wells is capitalized within tangible assets. Once
production starts, depreciation commences.
Capitalized exploration and development costs and
support equipment are generally depreciated based
on proved developed reserves by applying the unit-
of-production method; only capitalized exploration
rights and acquired reserves are amortized on the
basis of total proved reserves, unless a different
reserves basis is more adequate.
Significant estimate: Oil and gas reserves
OMV Group’s oil and gas reserves are estimated
by the Group’s petroleum engineers in accord-
ance with industry standards. In addition, external
reviews are performed every two years. In 2018,
DeGolyer and MacNaughton (D&M) reviewed the
reserves as of December 31, 2017. The results of
the external review did not show significant
deviations from the internal estimates, except for
one case. In order to obtain a reasonable assur-
ance on the reserves numbers of the field with a
material deviation to D&M, OMV engaged an
independent external specialist to provide an
opinion on OMV’s approach for determining the
reserves, which was deemed appropriate.
Proved reserves are those quantities of oil and
gas, which, by analysis of geoscience and engi-
neering data, can be estimated with reasonable
certainty to be economically producible from a
given date forward, from known reservoirs, and
under existing economic conditions, operating
methods, and government regulation before the
time at which the contracts providing the right to
operate expire, unless evidence indicates that
renewal is reasonably certain.
Proved oil and gas reserves were estimated
based on a 12-month average price, unless prices
are defined by contractual arrangements.
The reserves are reassessed by the group at least
once per year. Changes to the estimates of
proved oil and gas reserves impact prospectively
the amount of depletion charged.
Oil and gas reserve estimates have a significant
impact on the assessment of recoverability of
carrying amounts of oil and gas assets of the
Group. Downward revisions of these estimates
could lead to impairment of the asset’s carrying
value and to reduced depreciation expense in the
next period.
i) Impairment of non-financial assets
Intangible assets and property, plant and equipment
(including oil and gas assets) are tested for impair-
ment whenever events or changes in circumstances
indicate that an asset may be impaired. Impairment
tests are performed on the level of cash generating
units (CGEs) which generate cash inflows that are
largely independent of those from other assets or
groups of assets.
If assets are determined to be impaired, the carrying
amounts are written down to their recoverable
amount, which is the higher of fair value less costs
of disposal or value in use.
In assessing value in use, the estimated future cash
flows are discounted to their present value using a
post-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset or CGU. The pre-tax
discount rate is determined by way of iteration. The
cash flows are generally derived from the recent
budgets and planning calculations, which are
prepared separately for each of the Group’s CGUs
to which the individual assets are allocated.
The fair value less costs of disposal is determined
on the basis of the recent market transactions, if
available. If no such transactions can be identified,
an appropriate valuation model is used.
If the reasons for impairment no longer apply in a
subsequent period, a reversal is recognized in profit
or loss. The increased carrying amount related to
the reversal of an impairment loss shall not exceed
the carrying amount that would have been deter-
mined (net of amortization and depreciation) had no
impairment loss been recognized in prior years.
Significant estimates and judgements:
Recoverability of unproved oil and gas assets
There may be cases when costs related to
unproved oil and gas properties remain capital-
ized over longer periods while various appraisal
and seismic activities continue in order to assess
the size of the reservoir and its commerciality.
130
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Further decisions on the optimum timing of such
developments are made from a resource and
portfolio point of view. As soon as there is no
further intention to develop the discovery, the
assets are immediately impaired.
Significant estimates and judgements:
Recoverability of intangible assets and property,
plant and equipment
Evaluating whether assets or CGUs are impaired
or whether past impairments should be reversed,
require the use of different estimates and as-
sumptions depending on the business such as oil
and gas prices, inflation, discount rates, reserves,
production profiles, growth rates, gross margins
and spark spreads. The key estimates and as-
sumptions used bear the risk of change due to
the inherent volatile nature of the various macro-
economic factors and the uncertainty in asset or
CGU specific factors like reserve volumes and
production profiles, which can impact the recov-
erable amount of assets and/or CGUs.
The key valuation assumptions for the recovera-
ble amounts of Upstream assets are the oil and
natural gas prices, production volumes, ex-
change and discount rates. The production
profiles were estimated based on past experi-
ence and represent management’s best estimate
of future production. The cash flow projections
for the first five years are based on the mid-term
plan and thereafter on a “life of field” planning
and therefore cover the whole life term of the
field.
The nominal oil and gas price assumptions and
the EUR-USD exchange rates are listed below:
2020
60
1.15
52
12
2019
70
1.20
58
13
2021
70
1.15
61
13
2020
70
1.20
58
13
2022
70
1.15
61
14
2021
75
1.20
63
13
2023
75
1.15
65
15
2022
75
1.20
63
14
2024
75
1.15
65
15
2023
75
1.20
63
14
In the Downstream Gas business, besides the
discount rates, the main valuation assumptions
for the calculation of the recoverable amounts
are the spark spreads for power plants and the
summer/winter spreads for gas storages.
2019
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Realized gas price (EUR/MWh)
2018
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Realized gas price (EUR/MWh)
The long-term price assumptions from 2025
onwards are derived from the price assumptions
for 2024 inflated for the remaining life of each
asset. The assumptions used for oil and gas
prices for short and medium term are based on
management’s best estimate and were con-
sistent with external sources. The long-term
assumptions were consistent with data provided
by external studies and consider long-term views
of global supply and demand.
In the Downstream Oil business, besides the
discount rates, the recoverable amounts are
mainly impacted by the indicator refinery margin
and the utilization rate in the refineries and by
the integrated margin and sales volumes in retail.
131
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
j) Assets held for sale
Non-current assets and disposal groups are
classified as held for sale if their carrying amounts
are to be realized by sale rather than through
continued use. This is the case when the sale is
highly probable, and the asset or disposal group is
available for immediate sale in its present condition.
Non-current assets and disposal groups classified
as held for sale are measured at the lower of
carrying amount and fair value less costs to sell.
Property, plant and equipment and intangible assets
once classified as held for sale are no longer
amortized or depreciated.
k) Leases
OMV as a lessee recognizes lease liabilities and
right-of-use assets for lease contracts according to
IFRS 16. It applies the recognition exemption for
short-term leases and leases in which the underly-
ing asset is of low value and therefore does not
recognize right-of-use assets and lease liabilities for
such leases. Leases to explore for and use oil and
natural gas, which comprise mainly land leases
used for such activities, are not in the scope of
IFRS 16. The rent for these contracts is recognized
as expense on a straight-line basis over the lease
term.
Non-lease components are separated from the lease
components for the measurement of right-of-use
assets and lease liabilities. Lease liabilities are
recognized at the present value of fixed lease
payments and lease payments which depend on an
index or rate over the determined lease term with
the applicable discount rate. Right-of-use assets are
recognized at the value of the lease liability plus
prepayments and initial direct costs.
OMV as a lessor entered in contracts which were
assessed as operating leases, for which fixed and
variable rent is recognized as revenue from rents
and leases over the period of the lease.
The provisions of IFRS 16 were applied retrospec-
tively without restating the figures of the compara-
tive period, which continue to be reported under the
previous accounting standard for leases IAS 17.
Differences between the lease accounting according
to IFRS 16 and IAS 17 are disclosed in Section 2 of
this note.
Significant estimates and judgements: Leases
OMV has a significant number of contracts in
which it leases filling stations. Many of those
contracts include prolongation and termination
options. Prolongation options or periods after
termination options are included in the lease
term if it is reasonably certain that the lease is
prolonged or not terminated. When determining
the lease term the Group takes into account all
relevant facts and circumstances that create an
economic incentive for shortening or prolonging
the lease term using the available options. When
assessing the lease term of leases in filling
stations for periods covered by prolongation or
termination options, the assumption was applied
that the lease term will not exceed 20 years.
Optional periods, which have not been taken into
account in the measurement of the leases, exist
mainly for office buildings and gas storage
caverns in Germany because they can only be
exercised in the distant future.
l) Associated companies and joint arrangements
Associated companies are those entities in which
the Group has significant influence, but not control
nor joint control over the financial and operating
policies. Joint arrangements, which are arrange-
ments of which the Group has joint control together
with one or more parties, are classified into joint
ventures or joint operations. Joint ventures are joint
arrangements in which the parties that share control
have rights to the net assets of the arrangement.
Joint operations are joint arrangements in which the
parties that share joint control have rights to the
assets, and obligations for the liabilities, relating to
the arrangement.
Investments in associated companies and joint
ventures are accounted for using the equity
method, under which the investment is initially
recognized at cost and subsequently adjusted for
the Group’s share of the profit or loss less dividends
received and the Group’s share of other compre-
hensive income and other movements in equity.
At each statement of financial position date,
investments in associates and joint ventures are
reviewed for any objective evidence of impairment.
If there is such evidence, the amount of impairment
is calculated as the difference between the recover-
able amount of the associate or joint venture and its
carrying amount and recognized in profit and loss.
Significant joint exploration and production
activities in the Upstream segment are conducted
through joint operations which are not structured
through a separate vehicle. For these joint opera-
tions, OMV recognizes in the consolidated financial
statements its share of the assets held and liabilities
and expenses incurred jointly with the other
132
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
partners, as well as the group’s income from the
sale of its share of the output and any liabilities and
expenses that the group has incurred in relation to
the joint operation. Acquisitions of interests in a
joint operation, in which the activity of the joint
operation constitutes a business, are accounted for
according to the relevant IFRS 3 principles for
business combination accounting (see 2.5a).
OMV recognizes allowances for expected credit
losses (ECLs) for all financial assets measured at
amortized costs. The ECL calculation is based on
external or internal credit ratings of the counterpar-
ty and associated probabilities of default. Available
forward-looking information is taken into account, if
it has a material impact on the amount of valuation
allowance recognized.
In addition, there are contractual arrangements
similar to joint operations in the Group which are
not jointly controlled and therefore do not meet the
definition of a joint operation according to IFRS 11.
This is the case when the main decisions can be
taken by more than one combination of affirmative
votes of the involved parties or where one other
party has control. OMV assesses whether such
arrangements are within or out of scope of IFRS 11
on the basis of the relevant legal arrangements such
as concession, license or joint operating agree-
ments which define how and by whom the relevant
decisions for these activities are taken. The account-
ing treatment for these arrangements is basically
the same as for joint operations. As acquisitions of
interests in such arrangements are not within the
scope of IFRS 3, OMV’s accounting policy is to treat
such transactions as asset acquisitions.
m) Non-derivative financial assets
At initial recognition, OMV classifies its financial
assets as subsequently measured at amortized cost,
fair value through other comprehensive income
(OCI) or fair value through profit or loss. The
classification depends both on the Group’s business
model for managing the financial assets and the
contractual cash flow characteristics of the financial
assets. All regular way trades are recognized and
derecognized on the trade date, i.e., the date that
the Group commits to purchase or sell the asset.
Debt instruments are measured at amortized cost if
both of the following conditions are met:
► the asset is held within the business model
whose objective is to hold assets in order to
collect contractual cash flows; and
► the contractual terms of the financial asset give
rise on specific dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
These assets are subsequently measured at
amortized cost using the effective interest method
less any impairment losses. Interest income,
impairment losses and gains or losses on derecog-
nition are recognized in profit or loss.
ECLs are recognized in two stages. Where there has
not been a significant increase in the credit risk
since initial recognition, credit losses are measured
at 12 month ECLs. The 12 month ECL is the credit
loss which results from default events that are
possible within the next 12 months. The Group
considers a financial asset to have low credit risk
when its credit risk rating is equivalent to the
definition of ‘investment grade’.
Where there has been a significant increase in the
credit risk since initial recognition, a loss allowance
is required for the lifetime ECL, i.e. the expected
credit losses resulting from possible default events
over the expected life of a financial asset. For this
assessment, OMV considers all reasonable and
supportable information that is available without
undue cost or effort. Furthermore, OMV assumes
that the credit risk on a financial asset has signifi-
cantly increased if it is more than 30 days past due.
If the credit quality improves for a lifetime ECL
asset, OMV reverts to recognizing allowances on a
12 month ECL basis. A financial asset is considered
to be in default when the financial asset is 90 days
past due unless there is reasonable and supportable
information that demonstrates that a more lagging
default criterion is appropriate. A financial asset is
written off when there is no reasonable expectation
that the contractual cash flows will be recovered.
For trade receivables and contract assets from
contracts with customers a simplified approach is
adopted, where the impairment losses are recog-
nized at an amount equal to lifetime expected credit
losses. In case there are credit insurances or
securities held against the balances outstanding,
the ECL calculation is based on the probability of
default of the insurer/securer for the in-
sured/secured element of the outstanding balance
and the remaining amount will take the probability
of default of the counterparty.
Non-derivative financial assets classified as at fair
value through profit or loss include trade receiva-
bles from sales contracts with provisional pricing
and investment funds because the contractual cash
flows do not represent solely payments of principal
and interest on the principal amount outstanding.
133
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Furthermore, this measurement category includes
portfolios of trade receivables held with an intention
to sell them. These assets are measured at fair
value, with any gains or losses arising on remeas-
urement recognized in profit or loss.
Equity instruments may be elected irrevocably as
measured at fair value through OCI if they are not
held for trading. OMV elected to classify its non-
listed equity investments which are held for
strategic purposes under this category. Gains and
losses on equity investments measured at FVOCI
are never recycled to profit or loss and they are not
subject to impairment assessment. Dividends are
recognized in profit or loss unless they represent a
recovery of part of the cost of an investment.
OMV derecognizes a financial asset when the
contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another party.
Significant estimates and judgements: Fair
value and recoverability of financial assets
The management is periodically assessing the
receivable related to expenditure recoverable
from the Romanian State related to obligations
for decommissioning and restoration costs in
OMV Petrom SA. The assessment process is
considering inter alia the history of amounts
claimed, documentation process related re-
quirements, potential litigation or arbitration
proceedings.
In 2017, as part of the acquisition of the interest in
Yuzhno Russkoye gas field, OMV took over a
contractual position towards Gazprom with
regard to the reserves redetermination. The
volume of gas reserves in Yuzhno Russkoye field
is contractually agreed and, in case the reserves
are higher or lower than what was assumed in
the agreement, either OMV could be obligated to
compensate Gazprom (but would profit in the
future from higher sales volumes) or Gazprom
could be obligated to compensate OMV. The
payment for the reserve redetermination is linked
to the actual amount of the gas reserves. The
actual volume of gas reserves in Yuzhno Russko-
ye is expected to be agreed in 2023. The estimat-
ed volume of gas reserves in the field is assumed
by OMV to be lower than the contractually
agreed volume and is based on the assessment
of the Group’s petroleum engineers (see Note 18
– Financial Assets – for more details).
n) Derivative financial instruments and hedge
accounting
Derivative instruments are used to hedge risks
resulting from changes in currency exchange rates
and commodity prices. Derivative instruments are
recognized at fair value. Unrealized gains and losses
are recognized as income or expense, except where
hedge accounting according to IFRS 9 is applied.
Those derivatives qualifying and designated as
hedges are either (i) a fair value hedge when
hedging exposure to changes in the fair value of a
recognized asset or liability or (ii) a cash flow hedge
when hedging exposure to variability in cash flows
that is attributable to a particular risk associated
with a recognized asset or liability or a highly
probable forecast transaction.
For cash flow hedges, the effective part of the
changes in fair value is recognized in other compre-
hensive income, while the ineffective part is
recognized immediately in the income statement.
Where the hedging of cash flows results in the
recognition of a non-financial asset or liability, the
carrying value of that item will be adjusted for the
accumulated gains or losses recognized directly in
OCI.
Contracts to buy or sell a non-financial item that can
be settled net in cash or another financial instru-
ment, or by exchanging financial instruments, as if
the contracts were financial instruments, are
accounted for as financial instruments and meas-
ured at fair value. Associated gains or losses are
recognized in profit or loss. However, contracts that
are entered into and continue to be held for the
purpose of the receipt or delivery of a non-financial
item in accordance with the Group’s expected
purchase, sale or usage requirements are not
accounted for as derivative financial instruments,
but rather as executory contracts.
o) Borrowing costs
Borrowing costs directly attributable to the acquisi-
tion, construction or production of qualified assets
are capitalized until these assets are substantially
ready for their intended use or sale. All other costs
of borrowing are expensed in the period in which
they are incurred.
p) Government grants
Government grants are recognized as income or
deducted from the related asset where it is reason-
able to expect that the granting conditions will be
met and that the grants will be received.
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OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
q) Inventories
Inventories are recognized at the lower of cost and
net realizable value using the average price method
for acquisition or production or the individual costs
for not interchangeable goods respectively. Costs of
production comprise directly attributable costs as
well as fixed and variable indirect material and
production overhead costs. Production-related
administrative costs, the costs of company pension
schemes and voluntary employee benefits are also
included. In refineries, a carrying capacity approach
is applied according to which the production costs
are allocated to product groups on the basis of their
relative market values at the end of the period.
In 2019, OMV ceased to apply the special account-
ing treatment, which was previously applied to
inventories held according to compulsory stock
obligations in Austria. The additional quantities in
crude oil and products held under the Austrian Oil
Stockholding Act (2013) were valued using a long-
term weighted average price method, applied on
the basis of oil equivalents. Quantities exceeding
the compulsory stocks were valued at the lower of
current production or acquisition costs and the net
realizable value. Due to a change in the business
model, this method is no longer applied to these
stock quantities but they are valued based on the
average price method taking into account lower net
realizable values. This change was treated prospec-
tively as a change in accounting estimate. This
change led to an increase in the carrying amount of
inventories and a positive impact on operating
result of EUR 92 mn.
r) Cash and cash equivalents
Cash and cash equivalents include cash balances,
bank accounts and highly liquid short-term invest-
ments with low realization risk, i.e. negligible short-
term exchange and interest risks. The maximum
maturity at the time of acquisition for such invest-
ments is three months.
s) Provisions
A provision is recorded for present obligations
against third parties when it is probable that an
obligation will occur and the settlement amount can
be estimated reliably. Provisions for individual
obligations are based on the best estimate of the
amount necessary to settle the obligation, discount-
ed to the present value in the case of long-term
obligations.
Decommissioning and environmental obligations:
The Group’s core activities regularly lead to
obligations related to dismantling and removal,
asset retirement and soil remediation activities.
These decommissioning and restoration obligations
are principally of material importance in the
Upstream segment (oil and gas wells, surface
facilities) and in connection with filling stations on
third-party property. At the time the obligation
arises, it is provided for in full by recognizing the
present value of future decommissioning and
restoration expenses as a liability. An equivalent
amount is capitalized as part of the carrying amount
of long-lived assets. Any such obligation is calculat-
ed on the basis of best estimates. The unwinding of
discounting leads to interest expense and accord-
ingly to increased obligations at each statement of
financial position date until decommissioning or
restoration. For other environmental risks and
measures, provisions are recognized if such
obligations are probable and the amount of the
obligation can be estimated reliably.
Significant estimates and judgements:
Decommissioning provisions
The most significant decommissioning obliga-
tions of the Group are related to the plugging of
wells, the abandonment of facilities and the
removal and disposal of offshore installations.
The majority of these activities are planned to
occur many years into the future, while decom-
missioning technologies, costs, regulations and
public expectations are constantly changing.
Estimates of future restoration costs are based
on reports prepared by Group engineers and on
past experience. Any significant downward
changes in the expected future costs or post-
ponement in the future affect both the provision
and the related asset, to the extent that there is
sufficient carrying amount, otherwise the provi-
sion is reversed to income. Significant upward
revisions trigger the assessment of the recovera-
bility of the underlying asset.
Provisions for decommissioning and restoration
costs require estimates of discount rates, which
have material effects on the amounts of the
provision. In case of negative interest rates a
discount rate of zero is applied. The real discount
rates applied for calculating the provision for
decommissioning and restoration costs were
between 0.0% and 3.25% (2018: 0.0% and 3.0%).
Pensions and similar obligations: OMV has both
defined contribution and defined benefit pension
plans in Austria and Germany and defined benefit
pension plans New Zealand. In the case of defined
contribution plans, OMV has no obligations beyond
payment of the agreed premiums, and no provision
135
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
is therefore recognized. The reported expense
corresponds to the contributions payable for the
period.
In contrast, participants in defined benefit plans are
entitled to pensions at certain levels and are
generally based on years of service and the
employee’s average compensation. These defined
benefit plans expose the Group to actuarial risks,
such as longevity risk, interest rate risk, inflation risk
(as a result of indexation of pension) and market
risk. Defined benefit pension obligations are
accounted for by recognizing provisions for
pensions.
Employees of Austrian Group companies whose
service began before December 31, 2002 are
entitled to receive severance payments upon
termination of employment or on reaching normal
retirement age. The entitlements depend on years of
service and final compensation levels. Entitlements
to severance payments for employees whose
service began after December 31, 2002 are covered
by defined contribution plans. Similar obligations as
entitlement to severance payments also exist in
other countries, where the Group provides em-
ployment.
Employees in Austria and Germany are entitled to
jubilee payments after completion of a given
number of years of service. These plans are non-
contributory and unfunded.
Provisions for pensions, severance payments and
jubilee payments are calculated using the projected
unit credit method, which divides the costs of the
estimated benefit entitlements over the whole
period of employment and thus takes future
increases in remuneration into account. Actuarial
gains and losses for defined benefit pension and
severance payment obligations are recognized in
full in the period in which they occur in other
comprehensive income. Such actuarial gains and
losses are not reclassified to profit or loss in
subsequent periods. Actuarial gains and losses on
obligations for jubilee payments are recognized in
profit or loss. Net interest expense is calculated on
the basis of the net defined benefit obligation and
disclosed as part of the financial result. Differences
between the return on plan assets and interest
income on plan assets included in the net interest
expense is recognized in other comprehensive
income.
Provisions for voluntary and mandatory separations
under restructuring programs are recognized if a
detailed plan has been approved by management
and communicated to those affected prior to the
statement of financial position date and an irrevo-
cable commitment is thereby established. Voluntary
modifications to employees’ remuneration ar-
rangements are recognized on the basis of the
expected number of employees accepting the
employing company’s offer. Provisions for obliga-
tions related to individual separation agreements
which lead to fixed payments over a defined period
of time are recognized at the present value of the
obligation.
Significant estimates and judgements: Pensions
and similar obligations
The projected unit credit method calculation of
provisions for pensions, severance and jubilee
entitlements requires estimates for discount
rates, future increases in salaries and future
increases in pensions. For current actuarial
assumptions for calculating expected defined
benefit entitlements and their sensitivity analysis
see Note 23 – Provisions.
The biometrical basis for the calculation of
provisions for pensions, severance and jubilee
entitlements of Austrian Group companies is
provided by AVÖ 2018 P – Rechnungsgrundlagen
für die Pensionsversicherung (Biometric Tables
for Pension Insurance) – Pagler & Pagler, using
the variant for salaried employees. In other
countries, similar actuarial parameters are used.
Employee turnover was computed based on age
or years of service respectively. The expected
retirement age used for calculations is based on
the relevant country’s legislation.
Provisions for onerous contracts: If onerous
contracts exist in which the unavoidable costs of
meeting a contractual obligation exceed the
economic benefits expected to be received under
the contract, provisions are recognized at the lower
amount of the cost of fulfilling the contract and any
potential penalties or compensation arising in the
event of non-performance.
136
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Significant estimates and judgements:
Provisions for onerous contracts
OMV concluded in the past several long-term,
non-cancellable contracts that became onerous
due to negative development of market condi-
tions. This led to the recognition of onerous
contract provisions in the Group’s financial
statements for the unavoidable costs of meeting
the contract obligations.
The estimates used for calculating the positive
contributions that partly cover the fixed costs
were based on external sources and manage-
ment expectations. For more details on the
significant provisions see Note 23 – Provisions.
Emission allowances received free of cost from
governmental authorities (EU Emissions Trading
Scheme for greenhouse gas emissions allowances)
reduce financial obligations related to CO2 emis-
sions; provisions are recognized only for shortfalls
(see Note 23 – Provisions).
t) Non-derivative financial liabilities
Liabilities are carried at amortized cost, with the
exception of derivative financial instruments, which
are recognized at fair value. Long-term liabilities are
discounted using the effective interest rate method.
u) Taxes on income including deferred taxes
In addition to corporate income taxes and trade
earnings taxes, typical upstream taxes from oil and
gas production like the country’s/national oil
company’s profit share for certain EPSAs (see 4.5f)
are disclosed as income taxes. Deferred taxes are
recognized for temporary differences.
Deferred tax assets are recognized to the extent that
it is probable that taxable profit will be available
against which the unused tax losses, unused tax
credits and deductible temporary differences can be
utilized.
Significant estimates and judgements:
Recoverability of deferred tax assets
The recognition of deferred tax assets requires
an assessment of when those assets are likely
to reverse, and a judgement as to whether or
not there will be sufficient taxable profits
available to offset the assets when they reverse.
This assessment of recoverability requires
assumptions regarding future profits and is
therefore uncertain. In OMV, this assessment is
based on detailed tax plannings which covers in
Upstream entities the whole life of field and a
five year period in the other entities.
Changes in the assumptions regarding future
profits can lead to an increase or decrease of
the amount of deferred tax assets recognized
which has an impact on the net income in the
period in which the change occurs.
Deferred tax assets and liabilities at Group level
are shown net where there is a right of set-off and
the taxes relate to matters subject to the same tax
jurisdiction.
v) Long Term Incentive (LTI) Plans and Equity
Deferral
The fair value of share-based compensation
expense arising from the Long-term Incentive Plan
(LTIP) – OMV’s main equity settled plan – is estimat-
ed using a model which is based on the expected
target achievements and the expected share prices.
For cash-settled awards, a provision based on the
fair value of the amount payable is built up over the
vesting period, so that by the end of the vesting
period the fair value of the bonus shares to be
granted is fully provided for. The provision is
remeasured at the end of each reporting period up
to the date of settlement, with any changes in fair
value recognized in profit or loss. For share settled
awards, the grant date fair value is recognized as an
expense (including income tax), with a correspond-
ing increase in equity, over the vesting period of the
awards. The amount recognized as expense is
adjusted to subsequent changes in parameters
other than market parameters. In addition, the
Equity Deferral part of the annual bonus is settled in
shares. Accordingly, the related expense is recog-
nized against equity. For share-based awards, the
award is settled net of tax to the participants.
137
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
w) Fair value measurement
The fair value is the amount for which an asset or
liability could be transferred at the measurement
date, based on the assumption that such transfers
take place between participants in principal markets
and, where applicable, taking highest and best use
into account.
Fair values are determined according to the
following hierarchy:
Level 1: Quoted prices in active markets for identical
assets or liabilities. For OMV Group this
category will, in most cases, only be rele-
vant for securities, bonds, investment funds
and futures contracts.
Level 2: Valuation technique using directly or
indirectly observables inputs. In order to
determine the fair value for financial in-
struments within Level 2, usually forward
prices of crude oil or natural gas, interest
rates and foreign exchange rates are used
as inputs to the valuation model. In addition
counterparty credit risk as well as volatility
indicators, if applicable, are taken into ac-
count.
Level 3: Valuation techniques such as discounted
cash flow models using significant unob-
servable inputs (e.g. long-term price as-
sumptions and reserves estimates).
6) Foreign currency translation
Monetary foreign currency balances are measured
at closing rates, and exchange gains and losses
accrued at statement of financial position date are
recognized in the income statement.
The financial statements of Group companies with
functional currencies different from the Group’s
presentation currency are translated using the
closing rate method. Differences arising from
statement of financial position items translated at
closing rates are disclosed in other comprehensive
income. Income statement items are translated at
average rates for the period. The use of average
rates for the income statement creates additional
differences compared to the application of the
closing rates in the statement of financial position
which are directly adjusted in other comprehensive
income.
The main rates applied in translating currencies to
EUR were as follows:
Foreign currency translation
Bulgarian lev (BGN)
Czech crown (CZK)
Hungarian forint (HUF)
New Zealand dollar (NZD)
Norwegian krone (NOK)
Romanian leu (RON)
Russian ruble (RUB)
US dollar (USD)
2019
2018
Statement of
financial
position date
1.956
25.408
330.530
1.665
9.864
4.783
69.956
1.123
Statement of
financial
position date
1.956
25.724
320.980
1.706
9.948
4.664
79.715
1.145
Average
1.956
25.671
325.300
1.700
9.851
4.745
72.455
1.120
Average
1.956
25.647
318.890
1.707
9.598
4.654
74.042
1.181
138
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
3 Changes in group structure
A full list of OMV investments as well as changes in
consolidated group can be found in Note 38 – Direct
and indirect investments of OMV Aktiengesellschaft.
Major changes in consolidated Group are described
below.
Changes in consolidated Group – Upstream
On January 31, 2019, OMV bought a 50% stake of
the issued share capital in SapuraOMV Upstream
Sdn. Bhd. for an amount of USD 540 mn (subject to
customary closing adjustments). SapuraOMV
Upstream Sdn. Bhd. and its subsidiaries are fully
consolidated because OMV has the power over the
relevant activities of these entities. Although the
day-to-day activities are basically managed jointly
by OMV and the other shareholder, OMV has
casting votes for the decisions relevant for control
such as in particular determining and approving the
annual budget and the update of the mid-term
planning.
In addition, the parties agreed to an additional
consideration of up to USD 85 mn based on certain
conditions, mainly linked to the resource volume in
Block 30, Mexico, at the time the final investment
decision is taken. No liability was recognized at the
time of acquisition. Both parties have also agreed to
refinance the intercompany debt of USD 350 mn
existing at the time of acquisition (shown in the line
“Repayments of long-term borrowings” in the cash
flow statement).
The acquisition was an additional important step in
establishing Asia-Pacific as the fifth OMV core
region. Alongside future growth in daily production
in Malaysian offshore gas fields, this transaction will
also give OMV access to exploration blocks in New
Zealand, Australia and Mexico.
Acquired net assets and goodwill calculation
The non-controlling interest in SapuraOMV Up-
stream Sdn. Bhd. is measured at its proportionate
share of the acquiree’s identifiable net assets. The
goodwill is mostly related to the deferred tax
liability recognized for the differences in book and
tax values of the assets acquired. The goodwill is
not deductible for income tax purposes. The fair
value of the net assets acquired, as well as the
goodwill calculation, are detailed in the following
tables. The fair value of the trade receivables
substantially matched their carrying amount, and all
contractual cash flows less immaterial credit loss
effects are expected to be collected. The purchase
price is still subject to customary closing adjust-
ments, however no material impact is expected.
The consideration disclosed below includes the best
estimate of the expected purchase price.
139
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Fair values acquired
In EUR mn
Intangible assets
Property, plant and equipment
Non-current assets
Inventories
Trade receivables
Other financial assets
Other assets
Cash and cash equivalents
Current assets
Total assets
Lease liabilities
Other interest-bearing debts
Decommissioning and restoration obligations
Deferred taxes
Non-current liabilities
Other interest-bearing debts
Trade payables
Income tax liabilities
Other financial liabilities
Other liabilities
Current liabilities
Total liabilities
Net assets
Non-controlling interests
Net assets acquired
Measurement of goodwill
In EUR mn
Consideration
FX hedge effect
Net assets acquired
Goodwill
In 2019, SapuraOMV contributed EUR 171 mn to
consolidated sales and EUR (36) mn to consolidated
net income of OMV Group since its inclusion. If the
acquisition had already taken place at the beginning
of the year, the calculated value of the sales and net
income contribution of SapuraOMV to the OMV
Group would have been EUR 186 mn and
EUR (39) mn, respectively.
Changes in consolidated Group – Downstream
On July 31, 2019, OMV and ADNOC, the Abu Dhabi
National Oil Company, closed the strategic equity
partnerships covering both the existing ADNOC
Refining business and a new Trading Joint Venture.
The shareholder structure for both, the ADNOC
Refining and the Trading Joint Venture, is OMV 15%,
Eni 20% and ADNOC the remaining 65%. The
purchase price for OMV amounted to USD 2.43 bn.
140
SapuraOMV
679
604
1,283
6
18
44
10
12
90
1,372
5
305
69
336
715
9
49
10
9
5
83
798
574
(287)
287
SapuraOMV
479
2
287
195
OMV has significant influence in the companies and
accounts for them using the equity method. The
purchase price including a positive FX hedging
impact of EUR 43 mn and transaction costs
amounted in total to EUR 2,150 mn and was
capitalized in the line “Equity-accounted invest-
ments” in the balance sheet. The purchase price
includes a deferred consideration of USD 60 mn
which is reflected in other short-term financial
liabilities.
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Cash flow impact of major acquisitions
The cash flow from investing activities contained
EUR 460 mn cash outflow related to the acquisition
of SapuraOMV Upstream Sdn. Bhd., reflected in the
line “Acquisition of subsidiaries and businesses net
of cash acquired” as detailed in the below table.
Net cash outflows related to the acquisition of subsidiaries and businesses
In EUR mn
Consideration paid
less cash acquired
Net cash outflows from subsidiaries and businesses acquired
The line “Investments, loans and other financial
assets” in the cash flow statement contains a cash
outflow of EUR 2,095 mn related to the acquisition
of the ADNOC Refining business.
SapuraOMV
472
(12)
460
141
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Segment Reporting
4 Segment Reporting
Business operations and key markets
For business management purposes, OMV is
divided into two operating Business Segments:
Upstream and Downstream, as well as the segment
Corporate and Other (Co&O). Each segment
represents a strategic unit with different products
and markets. Each Business Segment is managed
independently. Strategic business decisions are
made by the Executive Board of OMV. With the
exception of Co&O, the reportable segments of
OMV are the same as the operating segments.
Upstream (U/S) engages in the business of oil and
gas exploration, development and production and
focuses on the regions Central and Eastern Europe,
North Sea, Russia, Middle East and Africa and Asia-
Pacific.
The key measure of operating performance for the
Group is Clean CCS Operating Result. Total assets
include intangible assets as well as property, plant
and equipment. Sales to external customers are
split up by geographical areas on the basis of where
the delivery of goods or services is effective.
Accounting policies of the operating segments are
the same as those described in the summary of
significant accounting policies, with certain excep-
tions for intra-group sales and cost allocations by
the parent company, which are determined in accor-
dance with internal OMV policies. Management is of
the opinion that the transfer prices of goods and
services exchanged between segments correspond
to market prices. Business transactions not attribut-
able to operating segments are included in the
results of the Co&O segment.
The disclosure of special items is considered
appropriate in order to facilitate analysis of ordinary
business performance. To reflect comparable
figures, certain items affecting the result are added
back or deducted. These items can be divided into
four subcategories: personnel restructuring,
unscheduled depreciation and write-ups, asset
disposals and other.
Furthermore, to enable effective performance
management in an environment of volatile prices
and comparability with peers, the Current Cost of
Supply (CCS) effect is eliminated from the result.
The CCS effect, also called inventory holding gains
and losses, is the difference between the cost of
sales calculated using the current cost of supply
based on purchases from the most recent month
and the cost of sales calculated using the weighted
average method, after adjusting for any changes in
valuation allowances. In volatile energy markets,
measurement of the costs of petroleum products
sold based on historical values (e.g. weighted
average cost) can have distorting effects on
reported results. This performance measurement
indicator enhances the transparency of results and
is commonly used in the oil industry. OMV, there-
fore, publishes this measure in addition to the
Operating Result determined according to IFRS.
The Downstream Oil (D/S Oil) part of the Down-
stream (D/S) Business Segment refines and markets
crude, petrochemicals and other feedstock. It
operates the refineries Schwechat (Austria),
Burghausen (Germany) and Petrobrazi (Romania)
with an annual capacity of 17.8 mn t. In these
refineries, crude oil is processed into petroleum
products, which are sold to commercial and private
customers. OMV holds a strong position in the
markets located within the areas of its supply,
serving commercial customers and operating a
retail network of approximately 2,100 filling stations.
OMV holds minority stakes in various equity-
accounted refining and petrochemicals investments,
the most important being the 36% interest in
Borealis AG and the 15% participation in ADNOC
Refining (United Arab Emirates) with annual
capacity of 7.1 mn t OMV share (see Note 16 –
Equity accounted investments).
Downstream Gas (D/S Gas) operates across the gas
value chain with a successful gas sales and logistics
business in Europe. OMV is operating storage
capacities in Austria and Germany and holds a stake
in GAS CONNECT AUSTRIA GmbH which engages
in the regulated gas transportation business in
Austria. Downstream Gas activities also cover
supply, marketing and trading of gas in Europe and
Turkey and the Group’s power business activities,
with one gas-fired power plant in Romania.
Group management, financing and insurance
activities and certain service functions are concen-
trated in the Co&O segment.
142
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Segment reporting
In EUR mn
Sales revenues 1
Intra-group sales
External sales
revenues
Other operating
income
thereof write-up
of tangible and
intangible assets
Net income from
equity-accounted
investments
Depreciation and
amortization
Impairment losses
(incl. exploration &
appraisal)
Operating Result
Special items for
personnel
restructuring
Special items for
unscheduled
depreciation and
write-ups
Special items for
asset disposal
Other special items
Special items
CCS effect
Clean CCS Operating
Result
Segment assets 2
Additions in PPE/IA 3
Equity-accounted
investments
thereof
D/S Oil
thereof
D/S
Gas
U/S
D/S
2019
thereof
intraseg-
mental
Consoli-
elim. D/S
Co&O
Total
dation
OMV
Group
6,239
(3,656)
20,958
(84)
15,085
(46)
5,976
(141)
(103)
103
345
(341)
27,542
(4,081)
(4,081)
4,081
23,461
—
2,583
20,874
15,039
5,835
157
98
66
32
—
—
4
23,461
—
23,461
60
315
—
315
35
0
0
—
—
—
35
—
35
45
341
327
1,604
544
474
14
70
211
1,879
32
1,847
19
1,560
13
287
—
—
—
—
—
386
—
386
37
2,186
—
2,186
0
(91)
243
3,636
—
(54)
243
3,582
17
5
5
0
—
11
34
—
34
9
30
(1)
(65)
(31)
(3)
48
71
—
18
(2)
54
74
(139)
(139)
1,951
15,049
2,046
1,677
5,315
632
1,495
4,341
544
12
1
(119)
(106)
—
182
974
88
457
4,695
4,635
59
—
—
—
—
—
—
—
—
—
—
—
13
24
—
39
(5)
(4)
64
(139)
—
—
—
—
29
39
(5)
(4)
64
(110)
(67)
3,561
(25)
3,536
277
73
20,642
2,751
—
—
20,642
2,751
—
5,151
—
5,151
1 Including intra-group sales
2 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale
3 Excluding additions in assets reclassified to held for sale
143
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Segment reporting
In EUR mn
2018
thereof
intraseg-
mental
elim.
D/S
U/S
D/S
thereof
D/S Oil
thereof
D/S Gas
Co&O
Total
Consoli-
dation
OMV
Group
Sales revenues 1
Intra-group sales
External sales revenues
5,556
(3,386)
2,170
20,830
(74)
20,756
14,755
(48)
14,707
6,215
(166)
6,049
Other operating income
329
127
59
69
(139)
139
—
—
339
(335)
4
61
26,725
(3,795)
22,930
(3,795) 22,930
—
3,795
22,930
—
517
—
517
thereof write-up of
tangible and
intangible assets
Net income from equity-
accounted investments
Depreciation and
amortization
Impairment losses (incl.
exploration & appraisal)
Operating Result
Special items for
personnel restructuring
Special items for
unscheduled depreciation
and write-ups
Special items for asset
disposal
Other special items
Special items
CCS effect
Clean CCS Operating
Result
Segment assets 2
Additions in PPE/IA 3
Equity-accounted invest-
ments
106
1
1
40
352
327
1,231
467
398
165
2,122
3
1,420
3
1,402
11
(52)
(2)
(52)
(95)
—
4
1
(3)
216
219
4
3
1
(4)
32
33
4
2,027
13,536
3,003
1,643
4,755
558
1,439
3,798
501
—
25
69
—
18
1
—
1
184
185
—
204
957
56
428
2,582
2,509
74
—
—
106
391
—
—
106
391
20
1,718
—
1,718
0
(47)
168
3,495
—
24
40
—
28
—
—
—
—
—
168
3,524
40
(51)
(3)
164
149
(27)
(51)
(3)
164
149
—
2
—
26
—
4
(31)
(21)
3,649
141
25
18,432
3,585
(3)
3,646
—
—
18,432
3,585
—
3,011
—
3,011
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1 Including intra-group sales
2 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale
3 Excluding additions in assets reclassified to held for sale
144
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Other special items in Upstream in 2019 mainly
comprised the reassessment of reserves redeter-
mination rights related to the field Yuzhno Russkoye
partly offset by temporary hedging effects. Down-
stream other special items consisted of temporary
hedging effects in Downstream Gas partly offset by
environmental provisions in Romania in Down-
stream Oil.
2018 Other special items in Upstream included
temporary hedging effects of EUR 89 mn, gains
from divestments in Pakistan
in amount of EUR 52 mn and Tunisia in amount of
EUR 39 mn, partly compensated by special items
related to the contingent consideration from the
divestment of Rosebank and of OMV (U.K.) Limited
amounting to EUR (78) mn, mainly as a result of a
shift in the expected final investment decision. In
Downstream other special items were impacted by
divestment of the Samsun power plant in Turkey in
amount of EUR (150) mn and by the impairment of
the Borealis fertilizer business in amount of
EUR (33) mn.
Information on geographical areas
In EUR mn
Austria
Germany
Romania
Russia
New Zealand
United Arab Emirates
Malaysia
Rest of CEE 4
Rest of Europe
Rest of the world 2
Total
Not allocated assets
Segment assets
2019
2018
External
sales
Allocated
assets 1
Equity-
accounted
investments 3
External
sales
Allocated
assets 1
Equity-
accounted
investments 3
6,599
4,962
4,389
633
528
488
122
3,564
1,379
799
23,461
—
—
3,452
1,098
6,265
896
1,199
1,780
1,333
659
1,954
1,456
20,092
550
20,642
2,465
29
—
134
—
2,190
—
—
10
323
5,151
—
5,151
6,635
5,161
3,973
697
256
77
—
3,649
1,426
1,056
22,930
—
—
3,046
962
6,165
868
1,406
1,630
—
490
2,070
1,448
18,084
348
18,432
2,447
28
—
92
—
85
—
14
9
336
3,011
—
3,011
1 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale
2 Rest of world: Principally Australia, Kazakhstan, Japan, Bahrain, China, Nigeria, Libya, Pakistan, Tunisia, Yemen, Singapore, Mexico and Hong Kong
3 Equity-accounted investments are allocated based on the seat of the registered office of the parent company
4 Including Turkey
Not allocated assets contained goodwill in amount
of EUR 199 mn related to the cash generating unit
‘Sapura OMV’, EUR 26 mn (2018: EUR 29 mn)
related to the cash-generating unit ‘Refining West’
and EUR 325 mn (2018: EUR 319 mn) related to the
cash-generating unit ‘Middle East and Africa’ as
these CGUs are operating in more than one
geographical area.
145
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Notes to the Income Statement
5 Sales revenues
Sales revenues
In EUR mn
Revenues from contracts with customers
Revenues from fixed lease payments
Revenues from variable lease payments
Revenues from other sources
Sales revenues
Revenues from contracts with customers
In EUR mn
Crude Oil, NGL, condensates
Natural gas and LNG
Fuel, heating oil and other refining products
Petrochemicals
Gas storage, transmission, distribution and
transportation
Other goods and services 1
Revenues from contracts with customers
Crude Oil, NGL, condensates
Natural gas and LNG
Fuel, heating oil and other refining products
Petrochemicals
Gas storage, transmission, distribution and
transportation
Other goods and services 1
Revenues from contracts with customers
2019
22,832
17
63
548
23,461
2018
22,607
16
62
246
22,930
Upstream
Down-
stream Oil
Down-
stream Gas
Corporate
&Other
OMV
Group
1,228
876
—
—
20
24
2,148
1,181
744
—
—
11
39
1,975
1,073
5
11,161
1,768
4
887
14,897
795
4
11,130
1,981
—
843
14,754
2019
—
4,969
—
—
228
588
5,785
2018
—
5,136
—
—
207
533
5,876
—
—
—
—
—
2
2
—
—
—
—
—
2
2
2,302
5,849
11,161
1,768
252
1,501
22,832
1,976
5,884
11,130
1,981
218
1,417
22,607
1 Mainly non-oil business in Downstream Oil and power sales in Downstream Gas
146
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
6 Other operating income and net income from equity-accounted investments
Other operating income and net income from equity-accounted investments
In EUR mn
Foreign exchange gains from operating activities
Gains from fair value changes of financial assets
Gains on the disposal of businesses, subsidiaries, tangible and intangible assets
Write-up of tangible and intangible assets
Residual other operating income
Other operating income
Income from equity-accounted investments
Expenses from equity-accounted investments
Net income from equity-accounted investments
2019
2018
80
—
21
35
179
315
392
(6)
386
95
23
105
106
188
517
394
(2)
391
Gains on the disposal of businesses, subsidiaries,
tangible and intangible assets contained a gain of
EUR 11 mn relating to sales of nine marginal fields
in Romania.
In 2018, write-ups were mainly related to reversals
of past impairments recognized for oil and gas
assets in Romania (Asset VII) and Norway (Gudrun)
based on value in use calculation (EUR 105 mn).
2018 included a gain of EUR 52 mn related to the
disposal of the Upstream companies active in
Pakistan and a gain on disposal of the subsidiary
OMV Tunisia Upstream GmbH amounting to
EUR 39 mn.
Write-up of tangible and intangible assets
On November 18, 2019, OMV agreed to sell its 69%
interest in the Maari oil field, located in New
Zealand’s offshore Taranaki Basin, to Jadestone
Energy Inc. This led to the reclassification of the
assets and liabilities to “held for sale”, which
triggered a pre-tax write-up amounting to
EUR 34 mn (see Note 20 – Assets and liabilities held
for sale).
Residual other operating income 2019 contained
income related to clarification of a tax related topic
in Romania (EUR 14 mn) as well as storage income
related to Erdöl-Lagergesellschaft m.b.H. in amount
of EUR 49 mn (2018: EUR 41 mn). 2018 included
insurance income related to a damage claim for the
Brazi power plant and the gas distribution station
Baumgarten in the amount of EUR 34 mn.
Net income from equity-accounted investments
decreased slightly to EUR 386 mn and primarily
contained the contribution from Borealis amounting
to EUR 314 mn (2018: EUR 327 mn).
147
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
7 Depreciation, amortization and impairment charges
Impairment losses are part of the income statement
line “Depreciation, amortization and impairment
charges”, except for impairment losses related to
exploration and appraisal assets which are shown in
“Exploration expenses”. The following tables
provide a reconciliation to the amounts reported in
the income statement.
Depreciation, amortization and impairment losses (excluding exploration & appraisal)
In EUR mn
Depreciation and amortization
Impairment losses (excl. exploration & appraisal)
Depreciation, amortization and impairment losses (excluding exploration & appraisal)
Impairment losses (including exploration & appraisal)
In EUR mn
Impairment losses (excl. exploration & appraisal)
Impairment losses (exploration & appraisal)
Impairment losses (including exploration & appraisal)
Depreciation, amortization and impairment losses – split per function
In EUR mn
Depreciation and amortization
attributable to exploration expenses
attributable to production and operating expenses
attributable to selling, distribution and administrative expenses
Impairment losses (incl. exploration & appraisal)
attributable to exploration expenses
attributable to production and operating expenses
attributable to selling, distribution and administrative expenses
2019
2,186
151
2,337
2019
151
92
243
2019
2,186
—
1,926
259
243
92
125
26
2018
1,718
109
1,827
2018
109
59
168
2018
1,718
—
1,549
169
168
59
108
2
Impairments in Upstream
In 2019, a divestment process of 40 marginal oil and
gas fields in Romania resulted in a pre-tax impair-
ment of property, plant and equipment amounting
to EUR 36 mn. For details please see Note 20 –
Assets and liabilities held for sale.
Moreover, impairments in 2019 included unsuccess-
ful workovers and obsolete or replaced assets in
Romania (EUR 76 mn) as well as impairment losses
related to exploration and appraisal (EUR 92 mn)
which were mainly related to unsuccessful explora-
tion wells in Romania, Austria, New Zealand and
Norway.
In 2018, a sales transaction of OMV´s share in
Polarled pipeline and Nyhamna gas processing
facilities in the North Sea region was closed and
resulted in a pre-tax impairment amounting to
EUR 36 mn. Other impairments in 2018 were mainly
related to the unsuccessful workovers and obsolete
or replaced assets in Romania (EUR 58 mn),
unsuccessful exploration wells in Romania, Norway
and Bulgaria (EUR 37 mn) as well as to an impaired
exploration license in Madagascar (EUR 14 mn)
following an exit decision.
Impairments in Downstream
In 2019, the equity-accounted investment in Enerco
Enerji Sanayi Ve Ticaret A.Ş. was fully written off
following the termination of long term sales
contracts, leading to an impairment loss of
EUR 12 mn. Other impairments amounted to
EUR 20 mn and were mainly related to assets in
Downstream Oil. In 2018, there were no significant
impairments in the segment.
148
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
8 Exploration expenses
The following financial information represents the
amounts included within the Group totals relating to
exploration for and appraisal of oil and natural gas
resources. All such activities are recorded within the
Upstream segment.
Exploration for and appraisal of mineral resources
In EUR mn
Impairment losses (exploration & appraisal)
Other exploration costs
Exploration expenses
Total assets – exploration and appraisal expenditure
incl. acquisition of unproved reserves
Net cash used in operating activities
Net cash used in investing activities 1
2019
92
136
229
2,500
138
261
2018
59
115
175
1,906
133
474
1 2019 figures do not include the acquisition of SapuraOMV Upstream assets in Malaysia (see Note 3 – Changes in group structure – for more details)
and 2018 figures do not include the acquisition of Shell’s Upstream assets in New Zealand.
9 Other operating expenses
Other operating expenses
In EUR mn
Foreign exchange losses from operating activities
Losses on disposals of businesses, subsidiaries, tangible and intangible assets
Losses from fair value changes of financial assets
Net impairment losses on financial assets measured at amortized cost
Personnel reduction schemes
Research and development expenses
Residual other operating expenses
Other operating expenses
2019
2018
67
14
5
33
26
49
128
322
64
162
85
11
34
40
90
485
Losses on the disposal of businesses, subsidiaries,
tangible and intangible assets in 2018 mainly
consisted of a loss on the divestment of OMV
Samsun Elektrik Üretim Sanayi ve Ticaret A.Ş. of
EUR 150 mn.
Losses from fair value changes of financial assets
were mainly related to the negative re-evaluation of
the asset from reserves redetermination rights
related to the acquisition of interests in the Yuzhno
Russkoye field which was triggered by reserves
reassessment, partly offset by positive discounting
effects. 2018 contained a negative fair value
adjustment of EUR 88 mn which was recognized for
the financial assets related to the contingent
considerations from the divestments of Rosebank
and of OMV (U.K.) Limited, triggered by a delay
of the estimated final investment date for the
Rosebank license. For further details see Note 18 –
Financial assets.
Net impairment losses on financial assets measured
at amortized cost were mainly related to impair-
ments for receivables in Tunisia amounting to
EUR 18 mn, triggered by reassessment of future
production.
Residual other operating expenses contained
expenses relating to various digitalization initiatives
which started in 2018 and amounted to EUR 44 mn
(2018: EUR 10 mn).
149
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
10 Personnel expenses
Personnel expenses
In EUR mn
Wages and salaries
Costs of defined benefit plans
Costs of defined contribution plans
Net expenses for personnel reduction schemes
Other employee benefits
Taxes and social contribution
Personnel expenses
The total expenses for pensions included in the
costs of defined benefit plans, costs of defined
contribution plans and net expenses for personnel
reduction schemes amounted to EUR 40 mn (2018:
EUR 50 mn).
11 Net financial result
Interest income
In EUR mn
Derivatives
Discounted receivables
Loans, receivables and cash deposits
Other
Interest income
Interest income from discounted receivables
position was positively impacted by the reassess-
ment of a grant receivable from Romanian State
triggered by earlier encashment than estimated at
the end of 2018.
Interest income from loans, receivables and cash
deposits included EUR 70 mn (2018: EUR 51 mn)
Interest expenses
In EUR mn
2019
869
18
28
26
157
130
1,228
2018
788
8
25
34
134
120
1,108
2019
2018
—
24
128
17
169
8
9
98
2
117
related to the Nord Stream 2 financing agreement.
For further details see Note 18 – Financial assets.
The component Other primarily contained late
payment interest income in relation to clarification
of a tax related topic in Romania.
Financial liabilities measured at amortized cost
Non-financial liabilities
Provisions for decommissioning and restoration obligations
Provisions for jubilee payments, personnel reduction plans and other employee benefits
Provisions for pensions and severance payments
Other
Interest expenses, gross
Capitalized borrowing costs
Interest expenses
2019
2018
176
4
91
2
19
19
309
(6)
304
151
11
84
3
15
46
311
(21)
290
150
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Financial liabilities measured at amortized cost
contained interest expenses on lease liabilities
amounting to EUR 23 mn (2018: EUR 17 mn). The
increase was mainly impacted by the implementa-
tion of IFRS 16. In addition to this, a higher bond
position contributed to the negative development.
For OMV Petrom SA the unwinding expenses for
decommissioning provision are included net of the
unwinding income for related state receivables. For
further details see Note 18 – Financial assets.
The interest expenses on pension provisions were
netted against interest income on pension plan
assets amounting to EUR 8 mn (2018: EUR 7 mn).
Other interest expenses included unwinding
expenses for the Gate LNG obligation and associat-
ed transportation commitments of OMV Gas
Marketing & Trading GmbH in amount of EUR 17 mn
(2018: EUR 21 mn). For further details see Note 23 –
Provisions. 2018 contained a negative impact of
reassessment from state receivable and grant
receivable from Romanian State.
Capitalized borrowings costs applied to the carrying
value of qualifying assets and were mainly related
to oil and gas development assets in Tunisia and
Norway. The average interest rate used was 2.3%
(2018: 2.4%).
Other financial income and expense
In EUR mn
Financing charges for factoring and securitization
Net foreign exchange gain/ (loss)
Other
Other financial income and expense
The position Other was mainly related to bank
charges, while 2018 was mainly impacted by
breakage fees for early repayment of loans.
2019
2018
(31)
40
(8)
1
(31)
(11)
(30)
(72)
151
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
12 Taxes on income and profit
Taxes on income and profit
In EUR mn
Current taxes
thereof related to previous years
Deferred taxes
Taxes on income and profit
Changes in deferred taxes
In EUR mn
Deferred taxes January 1
Adjustments on initial application of IFRS 9 and IFRS 15
Adjusted deferred taxes January 1
Deferred taxes December 31
Changes in deferred taxes
Deferred taxes accounted for in equity
Changes in consolidated Group, exchange differences and other changes 1
Deferred taxes per income statement
The deferred taxes per income statement comprise the following elements:
Change in tax rate
Release of and allocation to valuation allowance for deferred taxes
Adjustments within loss carryforwards (not recognized in prior years, expired loss
carryforwards and other adjustments)
Reversal of temporary differences, including additions to and use of loss carryforwards
2019
1,207
13
100
1,306
2018
1,007
21
298
1,305
2019
28
—
28
(445)
(473)
(4)
377
(100)
5
5
16
(125)
2018
338
1
339
28
(310)
22
(9)
(298)
8
118
(17)
(406)
1 2019 included the acquisition of SapuraOMV in amount of EUR 336 mn. 2018 included the acquisition of Shell’s Upstream business in New Zealand
(EUR 117 mn) as well as the disposal of OMV’s share in Polarled pipeline and Nyhamna gas processing facilities in North Sea region (EUR (100) mn).
Taxes on income and profit accounted for in other comprehensive income
In EUR mn
Deferred taxes
Current taxes
Taxes on income and profit accounted for in other comprehensive income
2019
2018
(4)
0
(4)
53
3
55
In 2019, the deferred tax impact booked in profit or
loss related to the usage of tax loss carryforwards
was EUR 76 mn (2018: EUR 205 mn).
OMV Aktiengesellschaft forms a tax group in
accordance with section 9 of the Austrian Corporate
Income Tax Act 1988 (KStG), which aggregates the
taxable profits and losses of all the Group’s main
subsidiaries in Austria and possibly arising losses of
one foreign subsidiary (OMV AUSTRALIA PTY LTD).
Dividend income from domestic subsidiaries is in
general exempt from taxation in Austria. Dividends
from EU- and EEA-participations as well as from
subsidiaries whose residence state has a compre-
hensive mutual administrative assistance agree-
ment with Austria are exempt from taxation in
Austria if certain conditions are fulfilled. Dividends
from other foreign investments that are comparable
to Austrian corporations, for which the Group holds
a 10% investment share or more for a minimum
period of one year, are also excluded from taxation
at the level of the Austrian parent company.
In 2019 as well as in the previous year, a valuation
allowance for deferred tax assets for the Austrian
tax group was recognized. The valuation allowance
was reported in the income statement, except to the
extent that the deferred tax assets arose from
transactions or events which were recognized
outside profit or loss, i.e. in other comprehensive
income or directly in equity.
152
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
The effective tax rate is the ratio of income tax to
profit before tax. The tables hereafter reconcile the
effective tax rate and the standard Austrian corpo-
rate income tax rate of 25% showing the major
influencing factors.
Tax rate reconciliation
In %
Austrian corporate income tax rate
Tax effect of:
Differing foreign tax rates
Non-deductible expenses
Non-taxable income
Change in tax rate
Permanent effects within tax loss carryforwards
Tax write-downs and write-ups on investments at parent company level
Change in valuation allowance for deferred taxes
Taxes related to previous years
Other
Effective Group income tax rate
Tax rate reconciliation
In EUR mn
Theoretical taxes on income based on Austrian income tax rate
Tax effect of:
Differing foreign tax rates
Non-deductible expenses
Non-taxable income
Change in tax rate
Permanent effects within tax loss carryforwards
Tax write-downs and write-ups on investments at parent company level
Change in valuation allowance for deferred taxes
Taxes related to previous years
Other
Total taxes on income and profit
2019
25.0
14.7
5.0
(5.3)
(0.2)
(0.0)
(0.6)
(0.1)
(0.6)
(0.1)
37.8
2019
863
508
172
(182)
(5)
(2)
(20)
(5)
(19)
(4)
1,306
2018
25.0
16.0
5.0
(5.4)
(0.2)
0.1
(0.2)
(2.7)
1.1
0.9
39.6
2018
824
528
166
(178)
(8)
2
(6)
(90)
35
31
1,305
The Group’s effective tax rates in 2019 and 2018
were significantly impacted by high result contribu-
tions in Upstream from high tax rates fiscal regimes
such as Abu Dhabi, Norway and Libya.
Non-taxable income in 2019 and 2018 was predomi-
nantly attributable to the result contribution from
equity-accounted investments as well as to tax
incentives in Norway.
Non-deductible expenses in 2019 contained
amongst others permanent effects in depreciation,
depletion and amortization. In 2018 non-deductible
expenses were mainly impacted by permanent
effects related to FX losses reclassified (“Recy-
cling”) from the divestment of the Samsun power
plant in Turkey as well as permanent effects in
depreciation, depletion and amortization.
Other also included in 2019 and 2018 positive tax
effects on hybrid capital interest. For further details
see Note 2 – Accounting policies, judgements and
estimates.
153
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
13 Earnings Per Share
Earnings Per Share (EPS)
Earnings
attributable
to stock-
holders of the
parent
in EUR mn
2019
Weighted
average
number of
shares out-
standing
Earnings
attributable
to stock-
holders of the
parent
in EUR mn
2018
Weighted
average
number of
shares out-
standing
EPS in EUR
EPS in EUR
Basic
Diluted
1,678
1,678
326,610,239
326,863,180
5.14
5.13
1,438
1,438
326,651,395
327,145,348
4.40
4.40
The calculation of diluted Earnings per Share takes
into account the weighted average number of
ordinary shares in issue following the conversion of
all potentially diluting ordinary shares. This includes
252,941 (2018: 493,953) contingently issuable bonus
shares related to the Long Term Incentive Plans and
the Equity Deferral.
154
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Notes to the Statement of Financial Position
14 Intangible assets
Intangible assets
In EUR mn
Costs
January 1
Foreign exchange differences
Changes in consolidated Group
Additions
Transfers
Assets held for sale
Disposals
December 31
Development of amortization
January 1
Foreign exchange differences
Amortization
Impairments
Transfers
Assets held for sale
Disposals
December 31
Carrying amount January 1
Carrying amount December 31
Costs
January 1
Foreign exchange differences
Changes in consolidated Group
Additions
Transfers
Assets held for sale
Disposals
December 31
Development of amortization
January 1
Foreign exchange differences
Amortization
Impairments
Transfers
Assets held for sale
Disposals
December 31
Carrying amount January 1
Carrying amount December 31
Concessions,
software, licenses,
rights
Oil and gas assets
with unproved
reserves
Goodwill
Total
2019
2,252
20
678
254
(183)
(26)
(135)
2,860
346
2
—
92
(15)
(1)
(64)
360
1,906
2,500
2018
1,423
8
386
554
(15)
(2)
(103)
2,252
404
1
—
51
(6)
(2)
(103)
346
1,019
1,906
1,769
124
0
46
0
0
(2)
1,936
779
6
113
0
0
0
(2)
895
991
1,041
1,932
(153)
0
23
4
(34)
(3)
1,769
719
(17)
109
0
0
(30)
(2)
779
1,213
991
420
7
195
—
—
—
—
622
—
—
—
—
—
—
—
—
420
622
416
4
7
—
—
(7)
—
420
—
—
—
—
—
—
—
—
416
420
4,441
150
874
300
(183)
(27)
(137)
5,418
1,125
8
113
92
(16)
(1)
(66)
1,255
3,317
4,163
3,771
(141)
393
578
(11)
(43)
(107)
4,441
1,123
(15)
109
51
(6)
(32)
(105)
1,125
2,648
3,317
155
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Changes in consolidated group in 2019 of
EUR 874 mn were related to the acquisition of a
50% stake in SapuraOMV Upstream Sdn. Bhd. in
Malaysia. See Note 3 – Changes in group structure –
for additional details.
Intangible assets with a total carrying amount of
EUR 26 mn (2018: EUR 11 mn) were transferred to
assets held for sale and were related to OMV’s
share in the Maari field in New Zealand. For details
see Note 20 – Assets and liabilities held for sale.
Goodwill arising from business combinations has
been allocated to the following CGUs and groups of
CGUs, for impairment testing:
Goodwill allocation
In EUR mn
Middle East and Africa
SapuraOMV
Goodwill allocated to Upstream
Downstream Gas Austria
Refining West
Retail Slovakia
Refining Austria
Goodwill allocated to Downstream
Goodwill
2019
325
199
524
38
26
7
27
98
622
2018
319
—
319
38
29
7
27
101
420
In 2019, the goodwill allocated to Upstream
increased mainly due to the acquisition of a 50%
stake of SapuraOMV Upstream Sdn. Bhd. (see
Note 3 – Changes in group structure - for further
details) as well as due to positive foreign currency
differences.
In Downstream segment, the goodwill allocated to
Refining West decreased due to unfavorable foreign
exchange differences.
Goodwill impairment tests based on a value in use
calculation have been performed and did not lead
to any impairments. For the impairment test of the
goodwill allocated to Middle East and Africa, an
after-tax discount rate of 8.66% (2018: 11.19%) was
used. There is no reasonable change in the discount
rate that would lead to an impairment. Furthermore,
assuming a long term oil price of USD 60 per barrel
would also not lead to an impairment.
For details on contractual obligations for the
acquisition of intangible assets refer to Note 15 –
Property, plant and equipment.
156
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
15 Property, plant and equipment
Property, plant and equipment including right-of-use assets
In EUR mn
Land and
buildings
Oil and
gas assets
Plant and
machinery
Other
fixtures,
fittings
and
equipment
Assets
under con-
struction
Total
2019
2,774
23,033
8,691
1,953
411
36,862
620
3,394
(21)
5
164
8
2
(32)
3,520
1,607
(9)
145
13
(25)
1
(17)
0
1,714
1,787
1,806
—
23,033
(6)
588
1,668
147
(1,151)
(304)
23,974
13,060
(5)
1,442
117
10
(1,038)
(118)
(35)
13,433
9,972
10,541
3
8,694
(54)
0
239
177
(4)
(65)
8,987
5,608
(31)
366
3
(5)
(3)
(61)
(0)
5,875
3,086
3,111
65
2,018
(7)
0
162
2
(1)
(54)
2,120
1,459
(5)
122
0
(21)
(1)
(51)
(0)
1,504
559
616
—
411
(4)
10
218
(212)
(3)
(6)
415
12
0
—
6
(1)
—
(6)
—
11
399
404
688
37,550
(92)
604
2,452
123
(1,157)
(462)
39,017
21,747
(51)
2,075
139
(43)
(1,041)
(253)
(35)
22,538
15,803
16,479
Costs
January 1
Recognition of right-of-use assets
on initial application of IFRS 16
January 1, adjusted
Foreign exchange differences
Changes in consolidated Group
Additions
Transfers
Assets held for sale
Disposals
December 31
Development of depreciation
January 1
Foreign exchange differences
Depreciation
Impairments
Transfers
Assets held for sale
Disposals
Write-ups
December 31
Carrying amount January 1, adjusted
Carrying amount December 31
157
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Property, plant and equipment
In EUR mn
Costs
January 1
Foreign exchange differences
Changes in consolidated Group
Additions
Transfers
Assets held for sale
Disposals
December 31
Development of depreciation
January 1
Foreign exchange differences
Depreciation
Impairments
Transfers
Assets held for sale
Disposals
Write-ups
December 31
Carrying amount January 1
Carrying amount December 31
Land and
buildings
Oil and
gas assets
Plant and
machinery
Other
fixtures,
fittings
and
equipment
Assets
under con-
struction
2,760
(14)
3
62
17
(31)
(22)
2,774
1,556
(8)
84
1
3
(13)
(15)
(1)
1,607
1,203
1,167
20,603
192
778
2,401
(25)
(446)
(470)
23,033
12,144
109
1,091
109
(9)
(174)
(107)
(103)
13,060
8,459
9,972
2018
8,734
(62)
5
235
119
(244)
(96)
8,691
5,559
(38)
349
1
(19)
(148)
(93)
(2)
5,608
3,175
3,083
1,836
(3)
7
76
73
(4)
(30)
1,953
1,375
(3)
84
0
33
(2)
(28)
(0)
1,459
461
494
385
(2)
0
235
(173)
(11)
(24)
411
30
0
—
5
(0)
—
(23)
(0)
12
355
399
Total
34,317
111
793
3,008
11
(735)
(642)
36,862
20,663
61
1,609
117
7
(338)
(266)
(106)
21,747
13,654
15,115
The changes in the consolidated group in 2019 of
EUR 604 mn were related to the acquisition of a
50% stake in SapuraOMV Upstream Sdn. Bhd. in
Malaysia. For more details please see Note 3 –
Changes in group structure.
Disposals were mainly related to downward
revisions of estimates for decommissioning
obligations of oil and gas assets amounting to
EUR 184 mn.
OMV´s share in New Zealand’s Maari field and to
marginal oil and gas fields in Romania. For more
details please see Note 20 – Assets and liabilities
held for sale.
Oil and gas assets included a write-up of EUR 34 mn
related to the reclassification of the Maari field to
assets held for sale. For more details please see
Note 6 – Other operating income and net income
from equity-accounted investments.
Property, plant and equipment with a total carrying
amount of EUR 116 mn (2018: EUR 397 mn) were
transferred to assets held for sale, mainly related to
Further details on impairments can be found in
Note 7 – Depreciation, amortization and impairment
charges.
Contractual obligations for acquisitions
In EUR mn
Intangible assets
Property, plant and equipment
Contractual obligations
158
2019
491
852
1,343
2018
329
674
1,003
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
In 2019 and in 2018 the contractual commitments
were mainly related to exploration and production
activities in Upstream. The increase of contractual
obligations is mainly related to higher commitments
in the North Sea region.
OMV as a lessee
Right-of-use assets included mainly leases of filling
station sites and buildings as well as office build-
ings. In addition, OMV leases mainly a hydrogen
plant at Petrobrazi refinery in Romania, various
types of equipment, other land leases and vehicles.
Right-of-use assets recognized under IFRS 16
In EUR mn
Other
fixtures,
fittings
and
equipment
Land and
buildings
Plant and
machinery
50
620
670
5
81
(66)
(23)
667
29
3
33
—
18
(10)
(4)
37
1
65
66
—
79
(32)
(2)
111
January 1, 2019
Recognition of right-of-use assets on initial application of
IFRS 16
January 1, 2019 adjusted
Changes in consolidated Group
Additions
Depreciation
Other movements
December 31, 2019
Finance leases recognized under IAS 17
In EUR mn
January 1, 2018
Additions
Depreciation
Other movements
December 31, 2018
Land and
buildings
Oil and
gas assets
Plant and
machinery
Other
fixtures,
fittings
and
equipment
45
5
(2)
2
50
10
—
(1)
(9)
—
37
—
(6)
(2)
29
2
—
0
0
1
Amounts recognized in the consolidated income statement
In EUR mn
Operating result
Short-term lease expenses
thereof capitalized short-term lease expenses
Low-value lease expenses
Expenses relating to variable lease payments
Net financial result
Interest expense from lease liabilities
Net foreign exchange loss on lease liabilities
Expenses relating to variable lease payments
(EUR 9 mn) in 2019 were mainly related to rent for
leased filling stations based on actual turnover.
For information on lease liabilities please see
Note 24 – Liabilities.
Total
81
688
768
5
178
(108)
(28)
815
Total
94
5
(9)
(10)
81
2019
107
73
2
9
23
2
159
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
16 Equity-accounted investments
Material associates
OMV has a 36% (2018: 36%) interest in Borealis AG,
a provider of innovative solutions in the fields of
polyolefins, base chemicals and fertilizers. The
company is incorporated in Vienna, Austria and
operates on a global level.
OMV also holds a 15% interest in Abu Dhabi Oil
Refining Company (acquired in 2019 – see Note 3 –
Changes in group structure), registered in Abu
Dhabi, which runs a refinery hub with integrated
petrochemicals. According to the contractual
agreement between the shareholders, OMV has
strong participation rights which represent signifi-
cant influence as per IAS 28 definition.
Furthermore, OMV has a 10% interest (2018: 10%) in
Pearl Petroleum Company Limited, registered in
Road Town, British Virgin Islands, which is involved
in exploration and production of hydrocarbons in
the Kurdistan Region of Iraq.
According to the contractual agreement between
OMV and Pearl Petroleum Company Limited (Pearl),
OMV has significant influence within the meaning of
IAS 28, as unanimous consent is required for some
strategic decisions. Therefore Pearl is accounted for
using the equity method although OMV‘s share is
just 10%.
The companies are not listed on public exchanges
thus quoted market prices do not exist.
The tables below contain summarized financial
information for the material associates. Income
statement and other comprehensive income for Abu
Dhabi Oil Refining Company represent amounts
since acquisition on July 31, 2019.
Statement of comprehensive income
In EUR mn
Sales revenue
Net income for the year
Other comprehensive income
Total comprehensive income
Group’s share of comprehensive income
Dividends received
Statement of financial position
In EUR mn
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Group’s share
Goodwill
OMV Group adjustments
Group’s carrying amount of investment
2019
2018
Abu Dhabi Oil
Refining Company
Borealis
Pearl
Borealis
Pearl
8,381
67
(13)
53
8
34
8,111
873
(23)
851
306
297
390
114
—
114
11
31
8,334
907
154
1,061
382
360
2019
2018
Abu Dhabi Oil
Refining Company
Borealis
4,184
18,464
3,389
3,683
15,577
2,337
70
(297)
2,109
2,428
7,691
1,491
2,182
6,445
2,320
30
(12)
2,339
Pearl
280
1,841
61
151
1,909
191
—
132
323
Borealis
2,658
7,290
2,023
1,504
6,421
2,312
30
(22)
2,319
309
256
—
256
26
34
Pearl
327
1,733
108
38
1,914
191
—
144
336
160
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Carrying amount reconciliation
In EUR mn
January 1
Changes in the consolidated group
Exchange differences
Net income
Other comprehensive income
Reclassification of cash flow hedges
to balance sheet
Dividends and elimination of
intercompany profits
December 31
Abu Dhabi
Oil Refining
Company
—
2,150
(15)
10
(2)
2,319
—
—
314
(8)
—
(1)
(34)
2,109
(286)
2,339
2019
2018
Borealis
Pearl
Borealis
Pearl
336
—
7
11
—
—
(31)
323
2,307
3
—
327
55
(5)
(367)
2,319
329
—
16
26
—
—
(34)
336
Contingent liabilities
Borealis had two tax cases in Finland related to
Borealis Technology Oy and Borealis Polymers Oy,
which were previously mentioned in this note and
are described in detail in the OMV Consolidated
Financial Statements 2018 (Note 16 – Equity-
accounted investments). On June 7, 2019, the
Finnish and Austrian Tax Authorities reached an
agreement on two cases regarding the taxation of
Borealis Technology Oy and Borealis Polymers Oy.
The dispute was resolved through a Mutual
Agreement Procedure (MAP) between Finland and
Austria. Borealis welcomes that an agreement has
been reached which finally eliminates double
taxation.
Individually immaterial associates and joint
ventures
OMV holds 55.6% (2018: 55.6%) of Erdöl-
Lagergesellschaft m.b.H (ELG), which is holding the
major part of the emergency stock of crude and
petroleum products in Austria. In spite of holding
the majority of voting rights in the general assem-
bly, OMV does not have control over ELG. The
significant decisions on the financial and operating
policies are delegated to the standing shareholder’s
committee in which a quorum of two thirds of the
share capital is required for decisions.
OMV holds 15.53% (2018: 15.53%) in Trans Austria
Gasleitung GmbH. As unanimous consent of the
parties is required for decisions about relevant
activities and OMV has rights to the net assets of
Trans Austria Gasleitung GmbH based on the legal
structure, OMV classified it as a joint venture
according to IFRS 11.
OMV exercises joint control over Abu Dhabi
Petroleum Investments LLC (ADPI, OMV’s interest
25%) and Pak-Arab Refinery Limited (PARCO;
indirect interest of OMV amounts to 10%) and
accounts both investments at-equity. ADPI is a
holding company for its 40% interest in PARCO. As
unanimous consent of the parties is required for
decisions about relevant activities and OMV has
rights to the net assets based on the legal structure,
OMV classified the companies as joint ventures
according to IFRS 11.
Statement of comprehensive income for individually immaterial associates and joint ventures – Group’s share
In EUR mn
Sales revenue
Net income for the year
Total comprehensive income
2019
2018
Associates Joint ventures
Associates
Joint ventures
402
33
33
224
17
17
555
19
19
35
20
20
161
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Carrying amount reconciliation for individually immaterial associates and joint ventures
In EUR mn
2019
2018
Associates Joint ventures
Associates
Joint ventures
202
13
—
4
33
1
(1)
(12)
(8)
230
154
(8)
—
1
17
—
—
—
(14)
150
January 1
Exchange differences
Changes in consolidated Group
Additions and other changes
Net income
Other comprehensive income
Disposals and other changes
Impairment
Dividends
December 31
17 Inventories
Inventories
In EUR mn
Crude oil
Natural gas
Other raw materials
Work in progress: Petroleum products
Other work in progress
Finished petroleum products
Other finished products
Inventories
Purchases (net of inventory variation)
In EUR mn
Costs of goods and materials
Inventory changes
Write-downs to net realizable value and write-offs of inventories
Reversal of inventories write-down
Purchases (net of inventory variation)
214
(18)
—
—
19
0
(1)
—
(13)
202
2019
676
180
219
99
1
624
47
1,845
63
—
85
—
20
—
—
—
(15)
154
2018
401
233
206
115
3
571
43
1,571
2019
13,629
(88)
74
(6)
13,608
2018
14,100
(21)
16
(2)
14,094
162
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
18 Financial assets
Financial assets
In EUR mn
Trade receivables from
contracts with customers
Other trade receivables
Total trade receivables
Investments in other
companies
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial assets
Total other financial assets
Financial assets
Trade receivables from
contracts with customers
Other trade receivables
Total trade receivables
Investments in other
companies
Investment funds
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial assets
Total other financial assets
Financial assets
Valued at
fair value
through
other
compre-
hensive
income
Valued at
fair value
through
profit or
loss
Valued at
amortized
cost
Total
carrying
amount
thereof
short-term
thereof
long-term
2019
1,423
1,489
2,911
—
78
—
—
855
1,182
2,115
5,026
2018
1,460
1,878
3,338
—
—
78
—
—
671
1,108
1,857
5,195
1,553
1,489
3,042
24
78
284
2,391
855
1,903
5,535
8,577
1,541
1,878
3,420
21
6
78
392
2,384
671
1,833
5,386
8,806
—
—
—
24
—
284
—
—
—
308
308
—
—
—
21
—
—
392
—
—
—
414
414
1,553
1,489
3,042
—
18
255
2,237
2
611
3,121
6,163
1,541
1,878
3,420
—
—
32
258
1,983
2
452
2,727
6,147
—
—
—
24
60
30
154
854
1,292
2,414
2,414
—
—
—
21
6
46
134
401
669
1,381
2,659
2,659
131
—
131
—
—
—
2,391
—
721
3,112
3,243
82
—
82
—
6
—
—
2,384
—
725
3,115
3,197
The carrying amount of other financial assets at fair
value through profit or loss as at December 31, 2019
was EUR 3,243 mn (2018: EUR 3,197 mn). These
mainly consist of financial assets held for trading as
well as an acquired contractual position towards
Gazprom with regard to the reserves redetermina-
tion in amount of EUR 662 mn (2018: EUR 664 mn)
in connection with the acquisition of interests in the
Yuzhno Russkoye field. For further details see
Note 9 – Other operating expenses. Moreover, this
position included financial assets amounting to
EUR 59 mn (2018: EUR 61 mn) related to the
contingent considerations from the divestment of
the 30% stake in Rosebank and from the divestment
of OMV (U.K.) Limited, which are dependent on the
date when the Rosebank project coventurers will
approve the final investment decision.
163
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
In 2019, the position Loans included drawdowns
and the related accrued interests under the financ-
ing agreements for the Nord Stream 2 pipeline
project in amount of EUR 852 mn (2018:
EUR 669 mn). The drawdowns made during 2019
amounted to EUR 113 mn (2018: EUR 275 mn). For
further details see Note 11 – Net financial result.
Other sundry financial assets included expenditure
recoverable from Romanian State amounting to
EUR 410 mn (2018: EUR 378 mn) related to obliga-
tions for decommissioning, restoration and
environmental costs in OMV Petrom SA. The
receivables consisted of EUR 375 mn (2018:
EUR 341 mn) for costs relating to decommissioning
and EUR 35 mn (2018: EUR 37 mn) for costs relating
to environmental cleanup.
On March 7, 2017, OMV AG, as party in the OMV
Petrom privatization agreement, initiated arbitration
proceedings against the Romanian Ministry of
Environment, in accordance with the International
Chamber of Commerce Rules, regarding certain
claims unpaid by this ministry for cost incurred by
OMV Petrom relating to well decommissioning and
environmental restoration works. As of Decem-
ber 31, 2019, the amount in arbitration is EUR 60 mn
and the arbitration proceedings are still ongoing.
Additionally, other sundry financial assets contain
receivables towards partners in the Upstream
business as well as seller participation and com-
plementary notes in Carnuntum DAC (see Note 36 –
Unconsolidated structured entities - for further
details).
Equity investments measured at FVOCI
In EUR mn
Investment
Fair value
2019
2018
Fair value
adjustment
through OCI
Dividend
recognized
as income
Fair value
adjustment
through OCI
Dividend
recognized
as income
Fair value
Abu Dhabi Petroleum
Investments LLC 1
APK-Pensionskasse
Aktiengesellschaft
BSP Bratislava-Schwechat
Pipeline GmbH
CEESEG Aktiengesellschaft
CISMO Clearing Integrated
Services and Market
Operations GmbH
FSH Flughafen-Schwechat-
Hydranten-Gesellschaft GmbH
& Co OG
H2 Mobility Deutschland GmbH
& Co KG
Other
Equity investments measured
at FVOCI
—
3
3
5
4
2
3
4
24
—
0
—
(1)
1
1
—
1
1
—
0
—
0
0
0
—
4
5
—
2
3
6
3
2
3
3
21
21
(0)
—
3
1
0
—
(0)
26
8
0
—
0
0
0
—
6
15
1 Abu Dhabi Petroleum Investments LLC was reclassified to equity-accounted investments as of December 31, 2018.
164
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Impairment of trade receivables
In EUR mn
January 1
Adjustment on initial application of IFRS 9
January 1, adjusted
Amounts written off
Net remeasurement of expected credit losses
Foreign exchange rate differences and changes in consolidated group
December 31
Net remeasurement of expected credit losses is
mainly related to the trade receivables from
contracts with customers.
Credit Quality of trade receivables
In EUR mn
2019
2018
—
—
79
(13)
(3)
(1)
62
76
2
78
(3)
5
(0)
79
Equivalent to
external credit rating
Probability of
default
Gross carrying
amount
Risk Class 1
Risk Class 2
Risk Class 3
Risk Class 4
Risk Class 5
Total gross carrying amount
Expected credit loss
Total
Risk Class 1
Risk Class 2
Risk Class 3
Risk Class 4
Risk Class 5
Total gross carrying amount
Expected credit loss
Total
AAA, AA+, AA,
AA—, A+, A, A—
BBB+, BBB, BBB—
BB+, BB, BB—
B+, B, B—, CCC/CC
SD/D
AAA, AA+, AA,
AA—, A+, A, A—
BBB+, BBB, BBB—
BB+, BB, BB—
B+, B, B—, CCC/CC
SD/D
2019
0.07%
0.24%
1.22%
10.27%
100.00%
2018
0.08%
0.25%
1.25%
10.33%
100.00%
1,228
821
825
38
60
2,973
(62)
2,911
1,935
725
638
41
78
3,417
(79)
3,338
165
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Impairment of other financial assets at amortized cost
In EUR mn
12-month ECL
Lifetime ECL
not credit
impaired
Lifetime ECL
credit impaired
January 1
Net remeasurement of expected credit
losses
Foreign exchange rate differences and
changes in consolidated group
December 31 1
January 1
Adjustment on initial application of IFRS 9
January 1, adjusted
Amounts written off
Net remeasurement of expected credit
losses
Foreign exchange rate differences and
changes in consolidated group
December 31 1
4
1
0
5
—
3
3
(0)
0
0
4
2019
59
20
1
80
2018
54
3
57
(0)
1
3
59
158
(1)
(3)
154
170
—
170
(3)
(9)
(0)
158
Total
221
20
(2)
238
224
6
230
(3)
(8)
3
221
1 “12-month ECL” included an amount of EUR 1 mn (2018: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 14 mn (2018: EUR 15 mn)
related to expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
166
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Credit Quality other financial assets at amortized cost
In EUR mn
Equivalent to
external credit
rating
Probability
of default
12-month
ECL
Lifetime ECL
not credit
impaired
Lifetime
ECL credit
impaired
AAA, AA+, AA,
AA—, A+, A, A—
BBB+, BBB, BBB—
BB+, BB, BB—
B+, B, B—, CCC/CC
SD/D
0.07%
0.24%
1.22%
10.27%
100.00%
AAA, AA+, AA,
AA—, A+, A, A—
BBB+, BBB, BBB—
BB+, BB, BB—
B+, B, B—, CCC/CC
SD/D
0.08%
0.25%
1.25%
10.33%
100.00%
Risk Class 1
Risk Class 2 1
Risk Class 3
Risk Class 4
Risk Class 5
Total gross carrying amount
Expected credit loss 2
Total
Risk Class 1
Risk Class 2 1
Risk Class 3
Risk Class 4
Risk Class 5
Total gross carrying amount
Expected credit loss 2
Total
2019
405
1,398
221
1
0
2,024
(5)
2,020
2018
410
1,258
85
0
0
1,753
(4)
1,750
—
—
174
—
—
174
(80)
94
—
—
165
—
—
165
(59)
106
4
14
2
22
113
155
(154)
1
4
15
2
22
117
159
(158)
1
Total
409
1,412
396
22
114
2,353
(238)
2,115
414
1,273
252
22
117
2,078
(221)
1,857
1 “12-month ECL” included an amount of EUR 411 mn (2018: EUR 378 mn) and “Lifetime ECL credit impaired” an amount of EUR 14 mn (2018:
EUR 15 mn) related to expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
2 “12-month ECL” included an amount of EUR 1 mn (2018: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 14 mn (2018: EUR 15 mn)
related to expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
167
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
19 Other assets
Other assets
In EUR mn
2019
2018
Short-term
Long-term
Short-term
Long-term
Prepaid expenses
Advance payments on fixed assets
Other payments on account
Receivables from other taxes and social security
Contract assets
Emission rights
Other non-financial assets
Other assets
45
19
98
64
1
41
29
297
12
—
—
39
—
—
5
56
20 Assets and liabilities held for sale
Assets and liabilities held for sale
In EUR mn
Non-current assets
Deferred taxes
Other current assets
Cash and cash equivalents
Assets held for sale
Provisions
Deferred taxes
Liabilities
Liabilities associated with assets held for sale
Assets and liabilities held for sale – segment split
In EUR mn
Upstream
Downstream
Assets held for sale
Upstream
Downstream
Liabilities associated with assets held for sale
44
16
103
77
1
7
16
264
2019
160
—
11
7
177
138
—
18
156
2019
164
13
177
156
—
156
14
—
—
15
1
—
7
36
2018
47
0
0
—
47
22
0
0
22
2018
27
20
47
22
0
22
As of December 31, 2019, assets held for sale and
liabilities associated with assets held for sale in
Upstream consisted of a 69% interest in Maari field,
located in New Zealand’s offshore Taranaki Basin
and 40 marginal oil and gas fields in Romania.
Furthermore, assets held for sale and liabilities
associated with assets held for sale consisted of
non-core assets within Downstream Oil.
The reclassification to “held for sale” triggered a
pre-tax write-up of EUR 34 mn of the Maari field in
New Zealand (see Note 6 – Other operating income)
and an overall negative impact on operating result of
EUR 46 mn related to the marginal fields in Romania,
which included a pre-tax impairment of property,
plant and equipment (see Note 7 – Depreciation,
amortization and impairment charges).
As of December 31, 2018, assets held for sale and
liabilities associated with assets held for sale
consisted of marginal fields in Romania as well as
various non-core assets within Downstream Oil. In
2019 these marginal fields and some of the non-core
assets in Downstream Oil were sold.
168
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
21 OMV equity of the parent
Capital stock
The capital stock of OMV Aktiengesellschaft consists
of 327,272,727 (2018: 327,272,727) fully paid no par
value shares with a total nominal value of
EUR 327,272,727 (2018: EUR 327,272,727). There are
no different classes of shares and no shares with
special rights of control. All shares are entitled to
dividends for the financial year 2019, with the
exception of treasury shares held by OMV Aktien-
gesellschaft.
As the authorized capital granted by the Annual
General Meeting on May 13, 2009 expired on May 13,
2014, the Annual General Meeting decided upon a
new authorized capital on May 14, 2014. Specifically,
it authorized the Executive Board until May 14, 2019
to increase the share capital of OMV with the consent
of the Supervisory Board – at once or in several
tranches – by an amount of up to EUR 32,727,272 by
issuing up to 32,727,272 new no-par value common
voting shares in bearer form in return for contribu-
tions in cash. The capital increase can also be
implemented by way of indirect offer for subscription
after taking over by one or several credit institutions
according to Section 153 Paragraph 6 Stock Corpora-
tion Act. The issue price and the conditions of
issuance can be determined by the Executive Board
with the consent of the Supervisory Board.
Further, the Annual General Meeting authorized the
Executive Board, subject to the approval of the
Supervisory Board, to exclude the subscription right
of the shareholders if the capital increase serves to
(i) adjust fractional amounts or (ii) satisfy stock
options or long term incentive plans (including
matching share plans for employees, senior
employees and members of the Executive Board/
management boards of the Company or one of its
affiliates), or other employees’ stock ownership
plans.
In addition, the Supervisory Board was authorized
to adopt amendments to the Articles of Association
resulting from the issuance of shares according to
the authorized capital.
Capital reserves
Capital reserves have been formed by the contribu-
tion of funds into OMV Aktiengesellschaft by its
shareholders over and above the capital stock, on
the basis of their ownership relationship.
Hybrid capital
The hybrid capital recognized in equity in the
amount of EUR 1,987 mn consists of perpetual
hybrid notes which are subordinated to all other
creditors. According to IFRS, the net proceeds of the
hybrid notes are fully treated as equity because the
repayment of the principal and the payments of
interest are solely at the discretion of OMV.
On December 7, 2015, OMV issued hybrid notes with
an aggregate size of EUR 1,500 mn, in two tranches
of EUR 750 mn each with the following interest
payable:
► The hybrid notes of tranche 1 bear a fixed
interest rate of 5.250% until, but excluding,
December 9, 2021, which is the first call date of
tranche 1. From December 9, 2021, until, but
excluding, December 9, 2025, hybrid notes of
tranche 1 will bear interest according to a reset
interest rate to be determined according to the
relevant five-year swap rate and an additional
margin of 4.942% and, from December 9, 2025,
with an additional step-up of 1% per annum.
► The hybrid notes of tranche 2 bear a fixed
interest rate of 6.250% until, but excluding,
December 9, 2025, which is the first call date of
tranche 2. From December 9, 2025, tranche 2
will bear interest according to a reset interest
rate to be determined according to the relevant
five-year swap rate and an additional margin of
5.409%, with an additional step-up of 1% per
annum.
Interest is due and payable annually in arrears on
December 9 of each year, unless OMV elects to
defer the relevant interest payments. The outstand-
ing deferred interest must be paid under certain
circumstances, in particular, if the General Meeting
of OMV resolves upon a dividend payment on OMV
shares.
On June 19, 2018 OMV issued a hybrid bond with a
size of EUR 500 mn. The hybrid bears a fixed interest
rate of 2.875% until, but excluding, June 19, 2024.
From June 19, 2024 until, but excluding, June 19,
2028 the hybrid notes will bear interest at a rate
according to the relevant five-year swap rate and an
additional margin of 2.335% per annum and, from
June 19, 2028, with an additional step-up of 1% per
annum. Interest is due and payable annually in
arrears on June 19 of each year, unless OMV elects
to defer the relevant interest payments. The
outstanding deferred interest must be paid under
169
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
certain circumstances, in particular, if the General
Meeting of OMV resolves upon a dividend payment
on OMV shares.
The hybrid notes outstanding as of December 31,
2019 do not have a scheduled maturity date and
they may be redeemed at the option of OMV under
certain circumstances. OMV has, in particular, the
right to repay the hybrid notes at certain call dates.
Any accrued unpaid interest becomes payable when
the bond is redeemed. In the case of a change of
control, OMV may call the hybrid notes for redemp-
tion or else the applicable interest rate will be
subject to an increase according to the terms and
conditions of the hybrid notes.
Revenue reserves
The Group’s revenue reserves included the net
income and losses of consolidated subsidiaries and
investments included at equity, as adjusted for the
purposes of consolidation.
Treasury shares
The Annual General Meetings for the years 2000 to
2011 (with the exception of 2010) and 2019 approved
the repurchase of treasury shares. The costs of
repurchased shares have been reflected as a
reduction in equity. Gains or losses on the re-issue
of treasury shares (issue proceeds less acquisition
cost) result in an increase or a reduction in capital
reserves.
On May 18, 2016, the Annual General Meeting
authorized the Executive Board for a period of five
years from the adoption of the resolution, therefore,
until (including) May 17, 2021, upon approval of the
Supervisory Board, to dispose of or utilize stock
repurchased or already held by the Company to
grant treasury shares to employees, senior employ-
ees and/or members of the Executive Board/
management boards of the Company or one of its
affiliates including for purposes of share transfer
programs, in particular long term incentive plans
including matching share plans or other stock
ownership plans, under exclusion of the general
purchasing possibility of shareholders (exclusion of
subscription rights). The authorization can be
exercised as a whole or in parts or even in several
tranches by the Company, by a subsidiary (section
189a number 7 Austrian Commercial Code) or by
third parties for the account of the Company.
On May 14, 2019 the Annual General Meeting
authorized the Executive Board to repurchase
bearer shares of no par value of the Company up to
a maximum of 5% of the Company’s nominal capital
in accordance with section 65 paragraph 1 number
8 Austrian Stock Corporation Act, over a period of
15 months from the date of adoption of the
resolution by the General Meeting, for a minimum
consideration per share being at the utmost 30%
lower than the average, unweighted stock exchange
closing price over the preceding ten trading days
and a maximum consideration per share being at
the utmost 20% higher than the average, un-
weighted stock exchange closing price over the
preceding ten trading days, whereby any repur-
chases have to be exercised in such a way that the
Company does not hold more than 1,300,000
treasury shares at any time. Such repurchases may
take place via the stock exchange or a public
offering or by other legal means and for the purpose
of share transfer programs, in particular long term
incentive plans including matching share plans,
equity deferrals or other stock ownership plans.
The Executive Board was further authorized to
cancel stock repurchased or already held by the
Company without further resolution of the General
Meeting and the Supervisory Board was authorized
to adopt amendments to the Articles of Association
resulting from the cancellation of shares. The
authorization can be exercised as a whole or in
parts and also in several tranches by the Company,
by a subsidiary (Section 189a Number 7 Commer-
cial Code) or by third parties for the account of the
Company and shall be exercised always in such a
manner that it is to the benefit and in the best
interest of the Company.
170
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
The gains and losses recognized directly in other
comprehensive income and their related tax effects
were as follows:
Tax effects relating to each component of other comprehensive income
In EUR mn
Exchange differences from
translation of foreign ope-
rations
Gains/(losses) on hedges
Remeasurement gains/(losses)
on defined benefit plans
Gains/(losses) on equity
investments
Gains/(losses) on hedges that
are subsequently transferred to
the carrying amount of the
hedged item
Share of other comprehensive
income of equity-accounted
investments
Other comprehensive income
for the year
2019
2018
Before-tax
(expense)
income
Tax
(expense)
benefit 1
Net-of-tax
(expense)
income
Before-tax
(expense)
income
Tax
(expense)
benefit 1
Net-of-tax
(expense)
income
39
(45)
(90)
1
(0)
11
6
(0)
39
(35)
(84)
1
28
195
(114)
26
(3)
(49)
6
(6)
25
146
(108)
19
95
(12)
83
9
(3)
6
(8)2
(7)
n.a.
4
(8)
(3)
552
n.a.
199
(55)
55
144
1 Includes valuation allowances for deferred tax assets for the Austrian tax group. For further details please refer to Note 12 – Taxes on income and
profit.
2 Represent net-of-tax amounts
For 2019, the Executive Board of OMV Aktiengesell-
schaft proposed a dividend of EUR 2.00 per eligible
share, which is subject to confirmation by the
Annual General Meeting in 2020. The dividend for
2018 was paid in May 2019 and amounted to
EUR 572 mn (EUR 1.75 per share). In 2018, the
payment amounted to EUR 490 mn (EUR 1.50
per share). The interest paid for hybrid bonds
amounted in 2019 to EUR 101 mn (2018:
EUR 86 mn).
Treasury shares
January 1, 2018
Disposals
December 31, 2018
Disposals
December 31, 2019
Number of shares
772,230
(230,079)
542,151
(169,538)
372,613
Cost
EUR mn
8.5
(2.5)
6.0
(1.9)
4.1
171
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Number of shares in issue
January 1, 2018
Used for share-based compensations
December 31, 2018
Number of shares
Treasury shares
Shares in issue
327,272,727
—
327,272,727
772,230
(230,079)
542,151
326,500,497
230,079
326,730,576
Used for share-based compensations
December 31, 2019
—
327,272,727
(169,538)
372,613
169,538
326,900,114
22 Non-controlling interests
Subsidiaries with material NCI
In EUR mn
2019
Net income
allocated
to NCI
Accumula
ted NCI
372
292
80
(18)
35
4
393
3,411
3,094
318
276
133
31
3,851
2018
Net
income
allocated
to NCI
434
364
70
—
39
4
477
Accumula
ted NCI
3,279
2,974
305
—
129
29
3,436
% NCI
49%
49%
—
—
49%
—
n.a
Place of
business
n.a.
Romania
n.a.
n.a.
n.a.
n.a.
n.a.
% NCI
49%
49%
—
50%
49%
—
n.a
Subsidiary
OMV Petrom group
OMV Petrom SA
Others
SapuraOMV group
Gas Connect group 1
Other subsidiaries
OMV Group
1 Includes the result of the equity accounted investment Trans Austria Gasleitung GmbH
The proportion of ownership corresponds to the
proportion of voting rights of the non-controlling
interests (NCI) in all cases.
The main activities of the OMV Petrom group are
exploration and production of hydrocarbons (in
Romania and Kazakhstan), refining of crudes (in
Romania), marketing of petroleum products (in
Romania, Bulgaria, Serbia and Moldova) and of
natural gas as well as production and the sale of
electricity (in Romania).
On January 31, 2019, OMV bought a 50% stake of
the issued share capital in SapuraOMV Upstream
Sdn. Bhd. and its subsidiaries (see Note 3 –
Changes in group structure). SapuraOMV group is a
major independent oil and gas company based in
Malaysia with strong growth prospects consisting
of sizeable discovered resources and a strong
portfolio of exploration prospects. Apart from
Malaysia, it has access to exploration blocks in New
Zealand, Australia and Mexico.
Gas Connect Group operates a natural gas high-
pressure pipeline grid in Austria, markets transpor-
tation capacity to meet domestic natural gas
demand and supports export to Europe and acts as
distribution or market area manager throughout the
Federal territory of Austria.
172
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
The following tables summarize the financial
information relating to the individually material
subsidiary OMV Petrom SA:
Statement of comprehensive income
In EUR mn
Sales revenue
Net income for the year
Total comprehensive income
Attributable to NCI
Dividends paid to NCI
Statement of financial position
In EUR mn
Current assets
Non-current assets
Assets held for sale
Current liabilities
Non-current liabilities
Liabilities associated with assets held for sale
Statement of cash flows
In EUR mn
Operating cash flow
Investing cash flow
Financing cash flow
Net increase /(decrease) in cash and cash equivalents
OMV Petrom SA
2019
4,105
717
541
265
155
2018
3,681
831
838
410
117
OMV Petrom SA
2019
2,393
7,677
45
1,241
1,656
47
2018
2,004
7,640
27
1,259
1,437
22
OMV Petrom SA
2019
1,474
(675)
(399)
370
2018
1,379
(1,050)
(89)
240
173
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
23 Provisions
Provisions
In EUR mn
Pensions and
similar
obligations
Decom-
missioning
and
restoration
Other
provisions
1,096
(1)
—
(83)
(51)
166
(15)
—
1,111
—
—
3,736
2
69
(211)
—
503
(3)
(137)
3,959
87
63
801
(2)
0
(244)
—
302
8
—
865
293
355
Total
5,633
(2)
69
(538)
(51)
970
(9)
(137)
5,935
379
418
in New Zealand is operated by AMP Services (NZ)
Limited.
January 1, 2019
Foreign exchange differences
Changes in consolidated Group
Usage and releases
Payments to funds
Allocations
Transfers
Liabilities associated with assets held for sale
December 31, 2019
thereof short-term as of December 31, 2019
thereof short-term as of January 1, 2019
Provisions for pensions and similar obligations
The majority of pension commitments of several
Austrian OMV companies were transferred to an
external pension fund managed by APK-
Pensionskasse AG in earlier years. The pension plan
Defined benefit pension plans and obligations for severance payments
In EUR mn
Present value of funded obligations
Market value of plan assets
Provision for funded obligations
Present value of unfunded obligations
Provision for unfunded obligations
Present value of obligations of severance payments
Total
2019
840
(473)
366
499
499
141
1,007
2018
776
(413)
363
490
490
129
982
2017
729
(436)
293
463
463
135
891
2016
764
(453)
311
479
479
144
935
2015
728
(460)
268
497
497
150
915
174
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Present value of obligations
In EUR mn
Present value of obligation as of January 1
Changes in the consolidated group
Foreign exchange difference
Current service cost
Interest cost
Benefits paid
Expected defined benefit obligations as per
December 31
Actual defined benefit obligations as per
December 31
Remeasurements of the period (OCI)
thereof changes in demographic assumptions
thereof changes in financial assumptions
thereof experience adjustments
Market value of plan assets
In EUR mn
2019
2018
Pensions
Severance
Pensions
Severance
1,266
—
1
7
23
(75)
1,221
1,339
118
(25)
133
9
129
—
(1)
5
3
(11)
126
141
15
—
14
1
1,191
23
0
3
20
(74)
1,164
1,266
102
96
(5)
11
135
—
(0)
5
3
(9)
134
129
(5)
0
(7)
1
Total
436
20
7
5
(38)
(17)
2019
2018
VRG IV –
Austria
VRG VI –
Austria
New
Zealand
VRG IV –
Austria
VRG VI –
Austria
New
Zealand
Total
256
137
20
413
285
151
—
5
32
(22)
—
2
18
(16)
24
19
—
0
1
(2)
—
—
8
51
(41)
43
—
5
—
(22)
(12)
—
2
5
(17)
(5)
—
20
—
—
—
—
Market value of plan
assets as of January 1
Changes in the
consolidated group
Interest income
Allocation to funds
Benefits paid
Remeasurements of
the period (OCI)
Market value of plan
assets as of
December 31
295
159
19
473
256
137
20
413
175
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Provisions and expenses
In EUR mn
Provision as of January 1
Changes in the consolidated group
Foreign exchange difference
Expense for the year
Benefits paid
Payments to funds
Remeasurements for the year
thereof changes in demographic assumptions
thereof changes in financial assumptions
thereof experience adjustments
Provision as of December 31
Current service cost
Net interest cost
Expenses of defined benefit plans for the year
2019
2018
Pensions
Severance
Pensions
Severance
853
—
0
23
(34)
(51)
75
(25)
91
9
866
7
16
23
129
—
(1)
8
(11)
—
15
—
14
1
141
5
3
8
756
4
0
16
(35)
(5)
119
96
12
11
853
3
13
16
135
—
(0)
8
(9)
—
(5)
0
(7)
1
129
5
3
8
Underlying assumptions for calculating pension expenses and expected
defined benefit entitlements as of December 31
Capital market interest rate
Future increases in salaries
Future increase in pensions
2019
2018
Austria and Germany Romania
Austria and Germany Romania
Pensions Severance Severance
Pensions Severance Severance
1.00%
3.00%
2.00%
0.70%
3.00%
—
4.41%
4.19%
—
1.90%
3.00%
2.00%
1.60%
3.00%
—
4.75%
2.61%
—
The following actuarial assumptions for calculating
pension expenses and expected defined benefit
entitlements are considered as material and are
stress tested within the following ranges. The
increase or decrease compared to the values
accounted for defined benefit obligations in relative
deviation terms and in absolute values are as
follows:
Sensitivities - percentage change
Pensions
Severance
Sensitivities - absolute change
In EUR mn
Pensions
Severance
176
2019
Capital market interest rate
Future increases in salaries
and pensions
+0.50%
(5.93)%
(4.13)%
(0.50)%
+0.25%
6.58%
4.42%
2.71%
2.14%
(0.25)%
(2.59)%
(2.08)%
2019
Capital market interest rate
Future increases in salaries
and pensions
+0.50%
(0.50)%
+0.25%
(0.25)%
(79)
(6)
88
6
36
3
(35)
(3)
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Duration profiles and average duration of defined benefit obligations as of December 31
In EUR mn
Pensions
Severance
2019
Duration profiles
1–5 years
6–10 years
>10 years
344
49
289
39
705
54
Cash duration profiles and average duration as of December 31
In EUR mn
Pensions
Severance
Allocation of plan assets as of December 31
2019
Duration profiles
1–5 years
6–10 years
>10 years
353
52
314
55
881
145
Duration
in years
13
9
Duration
in years
14
11
Asset category
Equity securities
Debt securities
Cash and money market investments
Other
Total
2019
VRG IV –
Austria
VRG VI –
Austria
New
Zealand
VRG IV –
Austria
26.22%
59.08%
7.55%
7.15%
100.00%
26.42%
59.01%
7.03%
7.54%
100.00%
53.54%
28.95%
11.51%
6.00%
100.00%
22.14%
62.21%
6.76%
8.89%
100.00%
2018
VRG VI –
Austria
21.81%
62.48%
6.70%
9.01%
100.00%
New
Zealand
53.63%
25.41%
15.73%
5.23%
100.00%
Investment policies aim to achieve an optimal
investment portfolio structure and to ensure that
existing entitlements are covered at all times. The
investment of plan assets in Austria is governed by
section 25 Austrian Pension Fund Act and the
Investment Fund Act. In addition to these regula-
tions, the investment guidelines of APK-
Pensionskasse AG regulate the spread of asset
allocation, the use of umbrella funds and the
selection of fund managers. New categories of
investments or the employment of a wider range of
funds require the approval of the APK-
Pensionskasse AG management board. Diversifica-
tion of both equity and debt securities is global;
however, the bulk of the debt securities is EUR-
denominated or EUR-hedged.
The funds of the asset allocation and risk groups
VRG IV and VRG VI are invested in international
equity and bond funds, alternative investment
strategies (absolute return strategies, real estate
and private equity) as well as money market
investments. The long-term investment objective of
the VRG IV and the VRG VI is to outperform the
benchmarks of the risk groups (20% global equity,
65% global bonds, 5% cash, 5% alternatives, 5%
real estate) and to cover existing and future
entitlement payments of the VRGs. The assets of the
VRG IV and VRG VI are invested in such a manner as
to ensure the security, quality, liquidity and profita-
bility of the portfolio as a whole, as defined in the
Austrian Pension Fund Act section 25. The asset
allocation and the regional allocation of the VRG IV
and VRG VI can and will deviate from the bench-
mark allocation if this is in the judgment of APK and
warranted by current asset prices and/or future
expected returns. To enhance the return potential,
active strategies for all asset classes will be used
when justified by market characteristics and/or
cost/benefit considerations. The majority of the
assets of the VRG IV and VRG VI are invested in
liquid active markets for which quoted prices are
available. A smaller allocation to assets for which
only observable but not quoted prices are available
(e.g. real estate and certain absolute return strate-
gies) is allowed when the risk return profile of such
assets is believed to be favorable. Risk is managed
actively and it is generally expected that the
volatility and especially the drawdown risk of the
VRG IV and VRG VI will be lower than that of their
benchmark.
The actual returns of the individual VRGs can
deviate from the target returns on the plan assets,
177
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
due to differences in the allocation, the develop-
ments of the capital markets and costs. The
performance of the VRG IV was in 2019 13.21% and
the performance of the VRG VI was 13.28% mainly
due to significantly improved performance on debt
and equity securities market.
In 2020, defined benefit related contributions for
2019 to APK-Pensionskasse AG of EUR 3 mn are
planned.
Provisions for decommissioning and restoration obligations
Provisions for decommissioning and restoration obligations
In EUR mn
January 1, 2019
Foreign exchange differences
Changes in consolidated Group
New obligations
Increase arising from revisions in estimates
Reduction arising from revisions in estimates
Unwinding of discounting
Liabilities associated with assets held for sale
Usage, disposals and other changes
December 31, 2019
thereof short-term as of December 31, 2019
thereof short-term as of January 1, 2019
Carrying
amount
3,736
2
69
24
375
(158)
104
(137)
(55)
3,959
87
63
Changes in the consolidated Group were related to
the acquisition of Upstream assets in Malaysia.
in estimates was mainly driven by decreased
discount rates for RON, USD and NZD compared to
2018.
Net change from revisions in estimates amounted
to EUR 216 mn. The increase arising from revisions
Estimation of maturities of decommissioning and restoration obligations
In EUR mn
2019
87
323
898
1,476
889
285
1
3,959
≤1 year
1 – 5 years
5 – 10 years
10 – 20 years
20 – 30 years
30 – 40 years
>40 years
Total
178
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
A decrease of 1 percentage point in the real interest
rates used to calculate the decommissioning
provisions would lead to an additional provision of
EUR 209 mn (2018: EUR 356 mn).
The provision for decommissioning and restoration
costs included obligations in respect of
OMV Petrom SA amounting to EUR 1,401 mn
(2018: EUR 1,311 mn). Part of the obligations is to be
recovered from the Romanian State in accordance
with the privatization agreement. As of Decem-
ber 31, 2019, OMV Petrom SA held receivables from
the Romanian state related to decommissioning and
restoration costs amounting to
EUR 375 mn (2018: EUR 341 mn).
Other provisions
In EUR mn
Environmental costs
Onerous contracts
Other personnel provisions
Other
Other provisions
As at December 31, 2019 the provision for environ-
mental costs included EUR 46 mn referring to a
newly set-up provision for soil remediation in
relation to the Arpechim refinery site in Romania.
The provisions for onerous contracts were mainly
related to the Gate LNG obligation and associated
transportation commitments of OMV Gas Marketing
& Trading GmbH.
The provision for the Gate LNG obligation was
recorded in 2012 for a long-term, non-cancellable
contract for regasification capacity and storage that
became onerous due to the negative development
of market conditions for LNG terminal capacities in
Europe. The present value of the provision as at
December 31, 2019 was EUR 327 mn (2018:
EUR 340 mn). The provision represents the unavoid-
able costs of meeting the contractual obligations.
Thereby, income and costs from future purchases
and sales of LNG are taken into account, since the
regasification of LNG and subsequent sale of the
gas positively contributes to the coverage of the
fixed costs. The volume assumptions are based on
management’s best estimates of available LNG
volumes in the future. The prices are based on
forward rates, where available. If no forward prices
are available, the prices represent management’s
best estimate of future prices, derived from current
market prices or forward rates of the preceding
period. The calculation is based on an interest rate
of 3.9% (2018: 4.9%). A 50% decrease in either LNG
volumes or margin would lead to an additional
provision of EUR 189 mn. Furthermore, a 1 percent-
age point decrease in the discount rate would lead
to an additional provision of EUR 27 mn.
2019
2018
Short-term
Long-term
Short-term
Long-term
12
29
119
132
293
81
383
14
95
572
26
60
109
160
355
33
375
11
26
446
As per end of 2019, the provision for the related
non-cancellable transportation commitments of
OMV Gas Marketing & Trading GmbH amounted to
EUR 78 mn (2018: EUR 68 mn). The calculation is
based on the difference between the fixed costs for
using the capacities and the net profit from usage
expected to be generated by using the capacities.
The discount rate applied is 3.9% (2018: 4.9%).
Besides the discount rates, the key assumptions are
the gas prices at the relevant gas hubs which are
based on forward rates where available and on
management’s best estimates for the remaining
contract term.
Other personnel provisions included short-term
costs of staff reductions amounting to EUR 28 mn
(2018: EUR 30 mn).
As of December 31, 2019 a provision for a shortfall
of emission certificates in New Zealand in amount
of EUR 61 mn (including an obligation for which
emission certificates are to be received from
customers) was included in line Other.
Emissions certificates
Directive 2003/87/EC of the European Parliament
and of the European Council established a green-
house gas emissions trading scheme, requiring
member states to draw up national plans to allocate
emissions certificates. Under this scheme, affected
OMV Group companies received a total of 3,181,456
free emissions certificates in 2019 (2018: 3,213,524).
The New Zealand Government established a
greenhouse gas emissions trading scheme under
the Climate Change Response Act 2002. Under this
scheme New Zealand companies are not entitled to
179
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
OMV expects to surrender 10,819,250 emissions
certificates in 2020 for (not yet externally verified)
emissions, out of which 3,999,311 emissions
certificates are expected to be transferred to OMV
from customers in New Zealand.
receive free emission certificates. OMV has pur-
chased certificates to meet its own use liability.
Apart from purchased certificates, each sale of gas
to domestic customers in New Zealand creates an
obligation for OMV. OMV receives units of emission
certificates from customers to meet this obligation.
As of December 31, 2019, the total market value
of emissions certificates amounted to EUR 232 mn
(December 31, 2018: EUR 225 mn).
Emissions certificates
Certificates held as of January 1
Free allocation for the year
Certificates surrendered according to verified emissions for the prior year
Changes in consolidated Group
Net purchases and sales during the year
Certificates received from customers
Certificates held as of December 31
2019
2018
9,077,418
3,181,456
(9,685,184)
—
4,005,464
2,858,213
9,437,367
9,091,596
3,213,524
(7,121,633)
2,271
3,105,973
785,687
9,077,418
24 Liabilities
Liabilities 1
In EUR mn
Bonds
Other interest-bearing debts
Lease liabilities
Trade payables
Other financial liabilities
Other liabilities
Liabilities 1
2019
2018
Short-term Long-term
Total Short-term Long-term
540
148
120
4,155
2,818
903
8,684
5,262
620
934
—
301
157
7,274
5,802
769
1,053
4,155
3,120
1,060
15,958
539
304
—
4,401
2,806
863
8,913
4,468
441
—
—
924
138
5,971
Total
5,007
745
—
4,401
3,730
1,002
14,885
1 Excluding liabilities associated with assets held for sale, which are described in Note 20 – Assets and Liabilities held for sale.
Other interest-bearing debts
In EUR mn
2019
2018
Short-term Long-term
Total Short-term Long-term
Total
Other interest-bearing debts to banks
Other sundry interest-bearing debts
Other interest-bearing debts
148
—
148
473
147
620
622
147
769
157
147
304
441
—
441
598
147
745
180
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Bonds
Bonds issued
In EUR mn
US Private Placement
International corporate
bond
Nominal
Coupon
Repayment
2019
2018
Carrying
amount
December 31
Carrying
amount
December 31
EUR 300,000,000
0.031% floating
06/11/2021
301
—
EUR 500,000,000
EUR 500,000,000
EUR 500,000,000
EUR 750,000,000
EUR 500,000,000
EUR 500,000,000
EUR 1,000,000,000
EUR 750,000,000
EUR 500,000,000
EUR 500,000,000
1.75% fixed
4.375% fixed
4.25% fixed
2.625% fixed
0.75% fixed
0.00% fixed
1.00% fixed
3.50% fixed
1.875% fixed
1.00% fixed
11/25/2019
02/10/2020
10/12/2021
09/27/2022
12/04/2023
07/03/2025
12/14/2026
09/27/2027
12/04/2028
07/03/2034
Bonds issued
Bonds and other interest-bearing debts
As at December 31, 2019, OMV Group was in
compliance with all financial covenants stipulated
by the loan agreements.
Bonds and other interest-bearing debts
In EUR mn
Short-term loan financing
Short-term component of long-term financing
Total short-term
Maturities of long-term financing
2020/2019 (short-term component of long-term financing)
2021/2020
2022/2021
2023/2022
2024/2023
2025/2024 and subsequent years
Total for 2020/2019 onwards
—
519
503
752
498
495
992
749
499
495
5,802
2019
88
600
688
600
1,158
769
501
236
3,218
6,482
500
519
503
750
497
—
991
748
499
—
5,007
2018
101
742
843
742
556
855
768
500
2,230
5,651
181
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Breakdown of bonds and other interest-bearing debts
In EUR mn
Bonds and other long-term interest-bearing debts 1
Fixed rates
EUR
USD
Total
Variable rates
Total
EUR
USD
Other short-term interest-bearing debts
NZD
HUF
USD
EUR
NOK
Total
1 Including short-term components of long-term debts
2019
2018
Weighted
average
interest rate
Weighted
average
interest rate
5,559
14
5,573
753
157
910
42
33
6
4
3
88
2.12%
2.28%
2.12%
0.30%
3.66%
0.88%
1.76%
0.40%
0.50%
0.50%
3.65%
1.17%
5,386
21
5,407
147
98
245
—
58
—
43
—
101
2.29%
2.28%
2.29%
1.06%
3.05%
1.85%
—
0.38%
—
0.50%
—
0.43%
182
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Other financial liabilities
Other financial liabilities
In EUR mn
Derivative financial liabilities
Liabilities on derivatives designated and effective as hedging instrumen ts
Liabilities on other derivatives
Other sundry financial liabilities
Other financial liabilities
Derivative financial liabilities
Liabilities on derivatives designated and effective as hedging instruments
Liabilities on other derivatives
Liabilities on finance lease 1
Other sundry financial liabilities
Other financial liabilities
Short-term
Long-term
Total
2019
2018
179
28
151
122
301
535
125
410
275
114
924
2,478
237
2,241
642
3,120
2,800
348
2,452
288
641
3,730
2,299
209
2,090
519
2,818
2,265
223
2,042
14
527
2,806
1 Before the implementation of IFRS 16 as of January 1, 2019 finance lease liabilities were reported in the line ‘other financial liabilities’ in the statement
of financial position. Upon implementation of IFRS 16 lease liabilities are shown in a separate line.
The table hereafter summarizes the maturity profile
of the Group’s financial liabilities based on contrac-
tual undiscounted cash flows:
Financial liabilities (undiscounted cash flows)
In EUR mn
Bonds
Other interest-bearing debt
Lease liabilities
Trade payables
Derivative financial liabilities
Other sundry financial liabilities
Financial liabilities (undiscounted cash flows)
Bonds
Other interest bearing debts
Trade payables
Derivative financial liabilities
Liabilities on finance leases and other sundry financial liabilities
Financial liabilities (undiscounted cash flows)
≤1 year 1 – 5 years
>5 years
Total
617
154
142
4,155
2,299
519
7,886
621
308
4,401
2,265
549
8,145
2019
2,324
623
419
—
179
90
3,635
2018
2,571
448
—
535
170
3,724
3,436
—
787
—
—
92
4,316
2,432
—
—
—
428
2,859
6,378
777
1,348
4,155
2,478
701
15,836
5,624
756
4,401
2,800
1,147
14,728
183
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Other liabilities
Other liabilities
In EUR mn
Other taxes and social security liabilities
Payments received in advance
Contract liabilities
Other sundry liabilities
Other liabilities
Other taxes and social security liabilities
Payments received in advance
Contract liabilities
Other sundry liabilities
Other liabilities
Contract liabilities
In EUR mn
January 1
Foreign exchange differences
Revenue recognized that was included in the contract liability balance
at the beginning of the period
Increases due to cash received, excluding amounts recognized
as revenue during the period
December 31
The contract liabilities consisted mainly of non-
refundable prepayments of storage fees received
from Erdöl-Lagergesellschaft m.b.H., Lannach on
the basis of a long-term service contracts.
Short-term Long-term
Total
2019
—
11
142
5
157
2018
—
3
129
6
138
699
19
80
104
903
698
14
63
88
863
699
30
222
109
1,060
698
18
192
94
1,002
2019
192
(1)
2018
202
0
(78)
(72)
109
222
62
192
184
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
25 Deferred tax
Deferred taxes
In EUR mn
Intangible assets
Property, plant and equipment
Inventories
Derivatives
Receivables and other assets
Provisions for pensions and similar obligations
Provisions for decommissioning, restoration
obligations and environmental costs
Other provisions
Liabilities
Tax impairments according section 12 (3)/2 of the
Austrian Corporate Income Tax Act (KStG)
Tax loss carryforwards
Outside basis differences
Total
Netting (same tax jurisdictions)
Deferred taxes as per statement of financial
position
Intangible assets
Property, plant and equipment
Inventories
Derivatives
Receivables and other assets
Provisions for pensions and similar obligations
Provisions for decommissioning, restoration
obligations and environmental costs
Other provisions
Liabilities
Tax impairments according section 12 (3)/2 of the
Austrian Corporate Income Tax Act (KStG)
Tax loss carryforwards
Outside basis differences
Total
Netting (same tax jurisdictions)
Deferred taxes as per statement of financial
position
Deferred tax
assets total
Deferred tax
assets not
recognized
Deferred tax
assets
recognized
Deferred tax
liabilities
114
124
32
496
51
215
1,362
130
265
275
1,091
—
4,153
89
134
21
300
67
202
1,212
134
42
445
1,134
—
3,781
2019
22
68
0
—
16
144
39
0
61
—
1,011
—
1,361
2018
22
47
3
—
33
142
27
58
16
—
1,049
—
1,396
91
56
32
496
34
70
1,323
130
204
275
80
—
2,791
751
1,699
28
588
80
48
—
32
3
—
—
7
3,236
(2,105)
(2,105)
686
1,132
67
87
18
300
34
57
1,182
76
32
445
85
—
2,385
456
1,370
33
372
74
16
0
11
16
—
—
8
2,357
(1,626)
(1,626)
759
731
Deferred taxes were mainly related to different
valuation methods, differences in impairments,
write-offs, depreciation and amortization as well as
different definition of costs.
In 2019 deferred taxes were mainly impacted by the
acquisition of SapuraOMV (please refer to Note 3 –
Changes in group structure – for further details).
The overall net deferred tax asset position of tax
jurisdictions which suffered a tax loss either in
current or preceding year amounted to EUR 268 mn,
thereof EUR 260 mn is attributable to the Austrian
tax group (2018: EUR 354 mn, thereof Austrian tax
group EUR 279 mn).
185
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
As of December 31, 2019, OMV recognized tax
losses carryforward of EUR 4,179 mn before
allowances (2018: EUR 4,138 mn), thereof
EUR 351 mn (2018: EUR 192 mn) are considered
recoverable for calculation of deferred taxes.
Eligibility of losses for carryforward expires as
follows:
Tax losses carryforward
In EUR mn
2020
2021
2022
2023
2024
After 2024/2023
Unlimited
Tax losses carryforward
2019
2018
Base
amount
(before allo-
wances)
Base
amount
(before allo-
wances)
thereof not
recognized
thereof not
recognized
5
0
1
1
112
61
3,998
4,179
5
0
1
1
111
14
3,694
3,827
5
5
0
198
90
3,840
4,138
5
5
0
107
23
3,806
3,946
The majority of tax losses carryforward not recog-
nized referred to the Austrian tax group.
As of December 31, 2019, the aggregate amount of
temporary differences associated with fully consoli-
dated and equity-accounted investments for which
deferred tax liabilities have not been recognized
amounted to EUR 4,485 mn (2018: EUR 4,459 mn).
Capital gains on disposals of investments may be
realized on various levels of the Group depending
on the structuring of potential divestments. Due to
the complexity of the group and the associated tax
implications simplifying assumptions for the
calculation have been made that aim to diminish
cascade effects.
186
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Supplementary Information on the Financial Position
26 Statement of cash flows
Cash and cash equivalents
In EUR mn
Cash at banks and on hand
Short-term deposits
Cash and cash equivalents
2019
710
2,228
2,938
2018
700
3,326
4,026
In 2019, the cash balance was not entirely available
for use within OMV OF LIBYA LIMITED, EUR 33 mn
being blocked as collateral for a documentary letter
of credit.
Significant non-cash items
In 2019 as well as in 2018, non-cash additions to
fixed assets included mainly effects related to the
reassessment of decommissioning and restoration
obligations.
cial assets – and for the cash flow effect from
acquisitions to Note 3 – Changes in group structure.
Cash flow from financing activities
On June 11, 2019, OMV issued a EUR 300 mn
Eurobond with a maturity date of June 11, 2021.
On July 3, 2019, OMV issued two tranches of
EUR 500 mn Eurobonds with maturity dates of
July 3, 2025 and 2034 respectively. These transac-
tions were reflected in the line “Increase in long-
term borrowings”.
Cash flow from investing activities
For details about the cash flow effect from the Nord
Stream 2 pipeline project refer to Note 18 – Finan-
The line “Repayments of long-term borrowings”
included the repayment of a EUR 500 mn Eurobond.
Changes in liabilities arising from financing activities
In EUR mn
2019
January 1
Finance lease liability recognized as at 31 December, 2018
Lease liability for previously unrecognized operating lease
commitments as at January 1, 2019
Total impact from initial application of IFRS 16
Other
interest-
bearing
debts
745
Bonds
5,007
January 1, adjusted
5,007
745
Increase in long-term borrowings
Repayments of long-term borrowings
Increase/(decrease) in short-term borrowings
Total cash flows related to financing activities
Foreign exchange difference
Changes in consolidated group
Difference interest expenses and interest paid
Other changes
Total non-cash changes
1,287
(500)
—
787
—
—
8
—
8
89
(371)
(22)
(303)
7
314
5
—
326
Lease
liabilities
—
288
706
994
994
—
(109)
—
(109)
(2)
5
2
164 1
169
Total
5,752
288
706
994
6,746
1,376
(980)
(22)
374
5
319
15
164
503
December 31
5,802
769
1,053
7,624
1 Mainly related to new lease agreements
187
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Changes in liabilities arising from financing activities
In EUR mn
January 1
Increase in long-term borrowings
Repayments of long-term borrowings
Increase/(decrease) in short-term borrowings
Total cash flows related to financing activities
Foreign exchange difference
Reclassification of hybrid bond from equity to financial liabilities
Difference interest expenses and interest paid
Other changes
Total non-cash changes
2018
Other
interest-
bearing
debts
Finance
lease
liabilities
937
292
17
(293)
102
(175)
(35)
—
3
14
(17)
—
(11)
—
(11)
(0)
—
—
81
8
Bonds
4,757
994
(1,500)
—
(506)
—
800
(0)
—
800
Total
5,986
1,011
(1,805)
102
(692)
(35)
800
3
22
791
Coupon payment of hybrid bond before reclassification from
equity 2
(45)
—
—
(45)
December 31
5,007
745
288
6,040
1 Mainly related to new lease agreements
2 Shown in the line "Dividends paid to OMV equity holders" in the Statement of Cash Flows
The total cash outflow related to lease liabilities
amounted to EUR 131 mn.
As of December 31, 2019, the Group had available
EUR 3,250 mn of undrawn committed borrowing
facilities that can be used for future activities
without any restrictions (December 31, 2018:
EUR 3,264 mn).
As of December 31, 2019, there were EUR 238 mn
financing commitments provided to Nord Stream 2
AG for the planned additional funding of Nord
Stream 2 project (December 31, 2018: EUR 351 mn).
188
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
27 Contingent liabilities
OMV recognizes provisions for litigations if these
are more likely than not to result in obligations.
Management is of the opinion that litigations, to the
extent not covered by provisions or insurance, will
not materially affect the Group’s financial position.
Iraq. The agreement included contingent payments
to be made by OMV which are dependent on further
reserves determinations. The reserves determina-
tions will be have to be made by jointly appointed
independent expert.
The production facilities and properties of all Group
companies are subject to a variety of environmental
protection laws and regulations in the countries
where they operate. The estimated cost of known
environmental obligations has been provided in
accordance with the Group’s accounting policies.
Provisions for decommissioning and restoration are
recognized if an obligation exists at the statement of
financial position date.
Management believes that compliance with current
laws and regulations and future more stringent laws
and regulations will not have a material negative
impact on the Group’s results, financial position or
cash flows in the near future.
In Romania, with reference to the Arpechim refinery
site, a provision for soil remediation was set up
during 2019. Consequently, the related contingency,
described in detail in OMV’s Consolidated Financial
Statements 2018, is no longer applicable.
In May 2009, OMV signed an agreement with the
sellers Crescent Petroleum International Limited
(Crescent) and Dana Gas PJSC (Dana) to acquire a
10% share in Pearl Petroleum Company Limited
(Pearl), a company that operates Khor Mor and
Chemchemal gas fields in the Kurdistan Region of
In this connection, in May 2019, OMV received an
invoice from Crescent and Dana amounting to
approximately USD 241 mn and later unsubstantiat-
ed and rejected allegations of damages in an
amount of up to more than one billion USD. In view
of at the time pending independent expert determi-
nation before the International Chamber of Com-
merce (ICC) and arbitrations before the London
Court of International Arbitration (LCIA) regarding
inter alia revisions of the Field Development Plan
(FDP) of the Chemchemal gas field and a revision of
the FDP of Khor Mor, which were not approved at
joint venture level, and the deviating views between
Crescent/Dana and OMV inter alia about the size of
an oil discovery in Khor Mor, OMV rejected the
invoice. In September 2019, the independent expert
determination before the ICC was decided in favor
of OMV. Depending on further progress of the
arbitration proceedings and not yet commenced
reserve determinations, a contingent payment could
potentially arise; however, such event is not
deemed probable at this stage. Therefore, no
provision has been recognized in OMV’s Group
Financial Statements. Furthermore, at the date of
these financial statements, a reliable estimate of the
potential additional payment, if any, cannot be
made.
189
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
28 Risk management
Capital risk
OMV’s financial steering framework is built upon
the principles of operational efficiency, capital
efficiency, financing efficiency and sustainable
portfolio management. With the focus on strength-
ening OMV’s balance sheet, delivering a positive
free cash flow and growing its profitability, the
financial steering framework represents sustainable,
risk-monitored and future-oriented value creation
for OMV and its stakeholders.
OMV manages its capital structure to safeguard its
capital base in order to preserve investor, creditor
and market confidence, as well as to provide a
sustainable financial foundation for the future
operational development of the Group. OMV’s
financing strategy focuses on cash flow and
financial stability. Principal targets are a positive
free cash flow after dividends and a strong invest-
ment grade credit rating on the basis of a healthy
balance sheet and a long-term gearing ratio without
leases of below 30%.
Capital Management – key performance measures
In EUR mn (unless otherwise stated)
Bonds
Lease liabilities
Liabilities on finance lease
Other interest-bearing debts
Debt
Cash and cash equivalents 1
Net Debt
Equity
Gearing Ratio in %
1 Including cash and cash equivalents that were reclassified to assets held for sale
2019
5,802
1,053
—
769
7,624
2,938
4,686
2018
5,007
—
288
745
6,040
4,026
2,014
16,863
28
15,342
13
Liquidity risk
For the purpose of assessing liquidity risk, yearly
budgeted operating and financial cash flows of the
Group are monitored and analyzed on a monthly
basis. Thus, every month the Group generates a
forecasted net change in liquidity which is then
compared to the total month end balances of
money market deposits and loans as well as
maturities of the current portfolio and the available
liquidity reserves of the same month. This analysis
provides the basis for financing decisions and
capital commitments.
To ensure that OMV Group remains solvent at all
times and retains the necessary financial flexibility,
liquidity reserves in the form of committed credit
lines and short term uncommitted money market
lines are maintained. As of December 31, 2019, the
average weighted maturity of the Group’s debt
portfolio (excluding lease liabilities) has been 5.2
years (as of December 31, 2018: 5.0 years).
OMV Group’s operational liquidity management is
done centrally via a cash pooling system, which
enables optimum use of existing cash and liquidity
reserves to the benefit of every individual member
of cash pooling system and therefore the Group
as a whole.
Details of OMV Group’s financial liabilities are
shown in Note 24 – Liabilities.
Political Risk
OMV operates and has financial investments in
countries that are subject to political uncertainties
in particular Libya, Kazakhstan, Yemen, Russia,
Malaysia and Tunisia. Possible political changes may
lead to disruptions and limitations in production as
well as an increased tax burden, restrictions on
foreign ownership or even nationalization of
property. However, OMV has extensive experience
in managing the political environment in emerging
economies. Political developments in all markets
where OMV operates are observed continually.
Country-specific risks are assessed before entering
new countries.
An analysis to assess the potential impact of the
Brexit on OMV group companies was undertaken,
which showed that there is no significant impact
expected. OMV evaluates the risk of potential US or
EU sanctions and their impact on planned or
existing operations with the aim to stay in full
190
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
compliance with all applicable sanctions. In
particular risks due to US sanctions on the Nord
Stream 2 project and on OMV’s activities in Russia
are regularly assessed and monitored. The financing
agreements for the pipeline project Nord Stream 2
are not affected by the US sanctions.
Climate change Risks
OMV regularly evaluates the Group’s exposure to
climate-change-related risks in addition to the
market price risk from European Emission Allow-
ances. Such risks comprise the potential impact
from acute or chronic events like more frequent
extreme weather events or systemic changes to our
business model due to a changing legal framework
or substitution of OMV’s products due to changing
consumer behavior. OMV recognizes climate
change as a key global challenge. We thus integrate
the related risks and opportunities into the devel-
opment of the Company’s business strategy.
Commodity price risk – Downstream
Commodity price risk management in Downstream
refers to analysis, assessment, reporting and
hedging of market price risk exposure arising from
non-trading and trading activities, covering refining
(refinery margin, petrochemical margin, inventories
up to a defined threshold) as well as oil and gas
marketing activities (marketing margin, inventories
up to a defined threshold) and producing power
(spark spreads) in addition to proprietary trading
positions.
Limited proprietary trading activities are performed
for the purpose of creating market access within the
oil, power and gas markets. In Downstream Gas,
OTC swaps, options, futures and forwards are used
to hedge purchase and sales price risks. The aim is
to hedge the price risk on inventory fluctuations and
the differences in terms and conditions of purchases
and sales.
Market risk
Derivative and non-derivative instruments are used
to manage market price risks resulting from
changes in commodity prices, foreign exchange
rates and interest rates, which could have a
negative effect on assets, liabilities or expected
future cash flows.
In Downstream Oil, derivative instruments are used
for both hedging selected product sales and
reducing exposure to price risks on inventory
fluctuations. Crude oil and product swaps are used
to hedge the refining margin (crack spread), which
is the difference between crude oil prices and bulk
product prices.
Commodity price risk - Upstream
In order to protect the Group's result and cash flow
from the potential negative impact of falling oil and
gas prices as well as to ensure sufficient liquidity
headroom in order to enable the envisaged growth
strategy, OMV uses financial derivatives to secure
favorable oil and gas prices from time to time. When
doing so, OMV enters into derivative positions
selling forward parts of its future production,
thereby locking in future oil and gas prices and
reducing exposure to market prices in the periods
for which the hedges are concluded. OMV Group
adopts a flexible approach to monetize hedges prior
to their maturity with the aim to generate a positive
contribution to the results.
In 2019, swaps for gas volumes were entered into,
resulting in a total positive Operating result impact
of EUR 2 mn.
In 2018, the financial swaps that were concluded for
both oil and gas volumes resulted in a total
Operating result impact of EUR (219) mn (oil:
EUR (98) mn, gas: EUR (121) mn).
For these derivative instruments no hedge account-
ing was applied.
Furthermore, exchange-traded oil futures as well as
OTC contracts (contracts for difference and swaps)
are used to hedge short-term purchase and sales
market price risks.
Swaps do not involve an investment at the time the
contracts are concluded; settlement normally takes
place at the end of the quarter or month. The
premiums on options are payable when the contract
is concluded; where options are exercised, payment
of the difference between strike price and average
market price for the period takes place at contract
expiration.
The tables hereafter show the fair values of deriva-
tive financial instruments together with their
notional amounts. The notional amount, recorded
gross, is the amount of a derivative’s underlying
asset, reference rate or index and is the basis upon
which changes in the value of derivatives are
measured. The notional amounts indicate the
volume of the transactions outstanding at the year-
end and are not indicative of either the market risk
or the credit risk.
191
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Nominal and fair value of open commodity contracts
In EUR mn
2019
Fair
value
assets
Fair
value
liabilities
Nominal
2018
Fair
value
assets
Fair
value
liabilities
Nominal
7,102
284
(237)
4,284
391
(351)
56
56
4,760
6,736
11,496
3
177
78
15,084
15,342
10
10
236
82
318
1
29
5
1,992
2,028
(4)
(4)
(258)
(81)
(339)
(2)
(17)
(7)
(1,866)
(1,892)
705
705
12,282
11,063
23,345
—
329
195
16,737
17,260
39
39
1,202
202
1,404
—
15
4
905
925
(75)
(75)
(1,181)
(224)
(1,405)
—
(35)
(11)
(910)
(957)
Derivatives at FVOCI – Cash flow
hedging
Downstream Oil swaps 1
Derivatives at FVTPL
Upstream Gas swaps
Upstream
Downstream Oil futures
Downstream Oil swaps
Downstream Oil
Downstream Gas options
Downstream Gas swaps
Downstream Gas futures
Downstream Gas forwards
Downstream Gas
1 Including inefficient part of cash flow hedges
Foreign exchange risk management
OMV operates in many countries and currencies,
therefore industry-specific activities and the
corresponding foreign exchange rate risks need to
be analyzed precisely. The USD represents OMV’s
biggest risk exposure, in the form of movement of
the USD against the EUR and also against other
main OMV currencies (RON, RUB, NOK and NZD).
Movements of these currencies against the EUR are
also important sources of risk. Other currencies
have only a limited impact on cash flow and
Operating result. The transaction risk on foreign
currency cash flows is monitored on an ongoing
basis. The Group’s net position is reviewed at least
on a semiannual basis and the sensitivity is
calculated. This analysis provides the basis for
management of transaction risks on currencies.
Nominal and fair value of open currency derivatives
In EUR mn
Since OMV produces commodities that are mainly
traded in USD, OMV Group has an economic USD
long position.
FX options, forwards and swaps are used exclusive-
ly to hedge foreign exchange rate risks on outstand-
ing receivables and payables. The market value of
these instruments will move in the opposite
direction to the value of the underlying receivable
or liability if the relevant foreign exchange rate
changes.
As of December 31, the value of transactions used
to hedge foreign currency receivables and liabilities
and of transactions used to manage liquidity was as
follows:
2019
Fair
value
assets
—
35
0
Fair
value
liabilities
—
(6)
(0)
Nominal
238
1,701
65
2018
Fair
value
assets
1
16
0
Fair
value
liabilities
0
(12)
0
Nominal
—
1,525
253
Currency options (FVOCI)
Currency forwards (FVTPL)
Currency swaps (FVTPL)
192
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Cash flow hedge accounting
In the Downstream Oil Business, OMV is especially
exposed to volatile refining margins and inventory
risks. In order to mitigate those risks corresponding
hedging activities are taken, which include margin
hedges as well as stock hedges.
The risk management strategy is to harmonize the
pricing of product sales and purchases in order to
remain within an approved range of priced stocks at
all times, by means of undertaking stock hedges so
as to mitigate the price exposure. The range is a
defined maximum deviation from the target stock
level, as defined in the Annual Plan for hedging
activities.
Furthermore, in respect of refinery margin hedges,
crude oil and products are hedged separately, with
the aim to protect future margins. Endorsed
mandates are documented and defined within the
Annual plan for hedging activities.
In case of refinery margin hedges only the product
crack spread is designated as the hedged item,
buying Brent Crude Oil on a fixed basis and selling
the product on a fixed basis. The crack spread for
different products is a separately identifiable
component and can therefore represent the specific
risk component designated as hedged item. There
are limits set for the volume of planned hedged
sales to avoid over hedging.
Stock hedges are used to mitigate price exposure
whenever actual priced stock levels deviate from
target levels. Forecast sales and purchase transac-
tions for crude oil and oil products are designated
as the hedged item. Historically, Brent crude oil has
formed the largest risk component of the stock
price, however in some cases also oil products are
used for stock hedges. In such cases, Platts / Argus
product price is used as the risk component. Other
components like product crack spreads and other
local market cost components are not hedged.
The hedging relationships are established with a
hedge ratio of 1:1 as the underlying risk of the
commodity derivatives are identical to the hedged risk
components. Hedge ineffectiveness can arise from
timing differential between derivative and hedged item
delivery and pricing differentials (derivatives are
valued on the future monthly average price (or other
periods) and sales/purchases on the pricing at the date
of transaction/delivery).
Cash flow hedging – Impact of hedging on the statement of financial positions
In EUR mn
Swaps – forecast
purchase
Swaps – forecast
sales
Option — firm commitment
to acquire a business in
a business combination
Commodity price risk
Foreign currency risk
Total
Nominal Value
Below one year
More than one year
Fair value – assets
Fair value – liabilities
Cash flow hedge reserve
(before taxes)
Nominal Value
Below one year
More than one year
Fair value – assets
Fair value – liabilities
Cash flow hedge reserve
(before taxes)
thereof cost of
hedging reserve
66
41
25
6
0
6
204
204
—
—
44
(44)
—
2019
7,036
5,415
1,621
279
237
50
2018
4,080
2,336
1,744
391
304
94
—
—
—
—
—
—
—
238
238
—
1
—
(2)
(2)
7,102
5,455
1,647
284
237
55
4,522
2,778
1,744
392
348
49
(2)
193
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Above shown Fair value assets and liabilities are
presented in Line item Other financial assets and
Other financial liabilities in OMV’s Consolidated
statement of financial position.
Cash flow hedging – Impact of hedging in the statement of profit or loss and other comprehensive income
In EUR mn
Forwards, Options
—firm commitment
to acquire a
business in a
business
combination
Swaps, Forwards,
Options — firm
commitment to
acquire a business
in an at-equity
investment
Swaps –
forecast
purchase
Swaps –
forecast
sales
Commodity price risk
Foreign currency risk
Total
Gains/(losses) of the period
recognized in OCI
Hedge ineffectiveness recognized
in profit or loss
Amount reclassified from OCI to
profit or loss
Gains/(losses) of the period
recognized in OCI
Hedge ineffectiveness recognized
in profit or loss
Amount reclassified from OCI to
profit or loss
53
(14)
n.a.
(21)
(1)
—
(11)
(0)
(34)
43
(14)
152
2019
2018
(1)
—
n.a.
32
—
—
43
—
84
(14)
n.a.
(34)
(2)
52
—
—
(15)
152
For ‘Swaps – forecast purchase’ the hedge ineffec-
tiveness is included in line item ‘Purchases (net of
inventory variation)’ in OMV’s Consolidated income
statement. The hedge ineffectiveness and recycling
of ‘Swaps – forecast sales’ are both shown in line
item ‘Sales revenues’ in OMV’s Consolidated
income statement.
194
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Cash flow hedging – Impact of hedging on equity
In EUR mn
Forwards, Options
— firm commitment
to acquire a
business in a
business
combination
Swaps, Forwards,
Options — firm
commitment to
acquire a business
in an at-equity
investment
Swaps –
forecast
purchase
Swaps –
forecast
sales
Commodity price risk
Foreign currency risk
Total
Cash flow hedge reserve as of
January 1 (net of tax)
Gains/(losses) of the period
recognized in OCI
Amounts reclassified to profit or loss
Amounts transferred to cost of
non-financial item
Tax effects
Cash flow hedge reserve as of
December 31 (net of tax)
Cash flow hedge reserve as of
January 1 (net of tax)
Gains/(losses) of the period
recognized in OCI
Amounts reclassified to profit or loss
Amounts transferred to cost of
non-financial item
Tax effects
Cash flow hedge reserve as of
December 31 (net of tax)
(33)
73
53
n.a.
(4)
(12)
5
(11)
(34)
—
11
39
81
(72)
(21)
—
(132)
40
43
152
—
(50)
(33)
73
2019
2018
(1)
(1)
n.a.
2
—
—
—
30
—
(32)
0
(1)
—
39
43
n.a.
(43)
—
84
(34)
(44)
(1)
—
44
—
—
—
—
—
—
8
52
152
(163)
(10)
39
195
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Sensitivity analysis
For open hedging contracts sensitivity analysis is
performed to determine the effect of market price
fluctuations (+/–10%) on market value. The sensitivi-
ty of OMV Group’s overall earnings differs from the
sensitivity shown below, since the contracts
concluded are used to hedge operational expo-
sures.
The effect of market price fluctuations on earnings
or equity depends on the type of derivative used
and on whether hedge accounting is applied.
Market price sensitivity for derivatives to which
cash flow hedge accounting is applied is shown in
the sensitivity table for equity. Sensitivity to market
price fluctuations for all other open derivatives is
shown in the sensitivity tables for profit before tax.
Sensitivity analysis for open derivatives affecting profit before tax
In EUR mn
Upstream
Upstream Commodity Gas swaps
Downstream Oil
Downstream Oil Commodity futures
Downstream Oil Commodity swaps
Downstream Gas
Downstream Gas Commodity options
Downstream Gas Commodity swaps
Downstream Gas Commodity futures
Downstream Gas Commodity forwards
Sensitivity analysis for open derivatives affecting equity
In EUR mn
2019
2018
Market
price +10%
Market price
(10)%
Market
price +10%
Market price
(10)%
(2)
(11)
(7)
(0)
2
(1)
(37)
2
11
7
0
(2)
1
37
(40)
6
(2)
0
1
4
(51)
40
(6)
2
0
(1)
(4)
51
2019
2018
Market
price +10%
Market price
(10)%
Market
price +10%
Market price
(10)%
Downstream Oil
Downstream Oil Commodity swaps
(80)
80
26
(26)
For financial instruments, sensitivity analysis is
performed for changes in foreign exchange rates.
On Group level, the EUR-RON sensitivity not only
includes the net RON exposure versus the EUR but
also the net RON exposure versus the USD, since
the USD-RON exposure can be split into a EUR-RON
and EUR-USD exposure. The same is true for the
EUR-NOK and EUR-NZD exposure.
Sensitivity analysis for financial instruments affecting profit before tax 1
In EUR mn
EUR-RON
EUR-USD
EUR-NZD
EUR-NOK
EUR-RUB
2019
2018
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
(20)
(22)
(15)
(6)
(30)
20
22
15
6
30
(18)
(51)
(7)
(9)
(11)
18
51
7
9
11
1 Refers only to financial instruments and is not the same as the Group’s overall foreign exchange rate sensitivity in terms of operating result.
196
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Translation risk
Translation risk is also monitored on an ongoing
basis at Group level, and the risk position is
evaluated. Translation risk arises on the consolida-
tion of subsidiaries with functional currencies
different from EUR. The largest exposures result
from changes in RON, USD, RUB, NOK and NZD
denominated assets against the EUR.
Interest rate management
To facilitate management of interest rate risk,
OMV’s liabilities are analyzed in terms of fixed and
floating rate borrowings, currencies and maturities.
Appropriate ratios for the various categories are
established, and where necessary, derivative
instruments are used to hedge fluctuations outside
predetermined ranges.
Interest rate swaps can be used to convert fixed rate
debt into floating rate debt, and vice versa. As of
December 31, 2019, OMV did not have any open
position, since no interest rate swaps were entered
during the year 2019 (2018: no open position).
Interest sensitivities
OMV Group holds financial assets whose market
value would be affected by changes in interest
rates. The effect of an interest rate increase of 0.5
percentage points on the financial assets measured
FVTPL as of December 31, 2019, would have been a
EUR (12) mn reduction in the market value of these
financial assets (2018: EUR (15) mn). A 0.5 percent-
age points fall in the interest rate as of December
31, 2019 would have led to an increase in market
value of EUR 12 mn (2018: EUR 15 mn).
OMV regularly analyzes the impact of interest rate
changes on interest income and expense from
floating rate deposits and borrowings. Currently the
effects of changes in interest rate are not consid-
ered to be a material risk.
Credit risk management
The main counterparty credit risks are assessed and
monitored at Group level and Segment level using
predetermined criteria and limits for all counterpar-
ties, banks and security providers. On the basis of a
risk assessment, counterparties, banks and security
providers are assigned a credit limit, an internal risk
class and a specific limit validity. The risk assess-
ments are reviewed at least annually or on an ad-
hoc basis. The credit risk processes are governed by
guidelines at OMV Group level stipulating the
group-wide minimum requirements. The main
counterparties with contracts involving derivative
financial instruments have investment grade credit
ratings.
Credit risk is the risk that OMV Group’s counterpar-
ties will not meet their obligation under a financial
instrument or customer contract, leading to a
financial loss. The Group is exposed to credit risk
arising from credit exposures with customer
accounts receivables (see Note 18 – Financial
assets), from its operating activities as well as from
its financial activities such as financial investments,
including deposits with banks and financial
institutions (see Note 26 – Statement of cash flows),
foreign exchange transactions and other financial
instruments (see Note 18 – Financial assets).
197
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
29 Fair value hierarchy
Fair value hierarchy of financial assets including assets held for sale
In EUR mn
Carrying amount
Fair value level
At amortized
cost
At fair
value
Total
Level 1
Level 2
Level 3
Total
2,911
131
3,042
—
131
—
131
2019
—
78
—
—
855
24
—
24
78
284
2,391
—
284
2,391
855
1,182
721
1,903
n.a.
5,026
8
3,559
8
8,585
3,338
82
3,420
—
—
—
241
—
—
—
241
2018
—
—
6
—
—
—
284
2,150
—
24
—
—
—
—
24
—
284
2,391
—
—
721
721
8
2,573
—
745
8
3,559
82
—
82
—
—
78
—
—
671
21
6
—
21
6
78
—
—
—
392
2,384
—
392
2,384
671
—
1,206
—
392
1,178
—
21
—
—
—
—
—
21
6
—
392
2,384
—
1,107
725
1,833
—
—
725
725
n.a.
5,195
—
3,610
—
8,805
—
1,212
—
1,651
—
747
—
3,610
Trade receivables
Investments in other
companies designated as at
FVOCI
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial
assets 1
Net amount of assets and
liabilities associated with
assets held for sale
Total
Trade receivables
Investments in other
companies designated as at
FVOCI
Investment funds
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial
assets 1
Net amount of assets and
liabilities associated with
assets held for sale
Total
1 Other sundry receivables include an asset from reserves redetermination rights related to the acquisition of interests in the field Yuzhno Russkoye and
contingent considerations from the divestments of the 30% stake in the field Rosebank and of OMV (U.K.) Limited. Please see Note 18 – Financial
assets – for further details.
198
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Fair value hierarchy of financial liabilities
In EUR mn
Carrying amount
Fair value level
At amortized
cost
At fair
value
Total
Level 1
Level 2
Level 3
Total
Trade payables
Bonds
Lease liabilities
Other interest bearing debt
Liabilities on derivatives
designated and effective as
hedging instruments
Liabilities on other
derivatives
Other sundry financial
liabilities
Total
Trade payables
Bonds
Other interest bearing debt
Liabilities on derivatives
designated and effective as
hedging instruments
Liabilities on other
derivatives
Liabilities on finance lease
Other sundry financial
liabilities
Total
4,155
5,802
1,053
769
—
—
—
—
4,155
5,802
1,053
769
2019
—
—
—
—
—
—
—
—
—
237
237
—
237
—
2,241
2,241
266
1,976
642
12,420
—
2,478
642
14,898
—
266
—
2,213
4,401
5,007
745
—
—
—
4,401
5,007
745
2018
—
—
—
—
—
—
—
348
348
—
348
—
288
2,452
—
2,452
288
641
11,083
—
2,800
641
13,883
1,192
—
—
1,192
1,260
—
—
1,608
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
237
2,241
—
2,478
—
—
—
348
2,452
—
—
2,800
Financial assets and liabilities for which fair values are disclosed
In EUR mn
Fair Value
Fair value level
Level 1
Level 2
Level 3
Bonds
Financial assets
Bonds
Other interest bearing debt
Financial liabilities
Bonds
Financial assets
Bonds
Other interest bearing debt
Liabilities on finance lease
Financial liabilities
77
77
6,317
792
7,109
77
77
5,323
759
386
6,467
2019
5
5
6,317
—
6,317
2018
5
5
5,323
—
—
5,323
72
72
—
792
792
72
72
—
759
386
1,144
—
—
—
—
—
—
—
—
—
—
—
199
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
30 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset
only when the Group has a current and legally
enforceable right to set-off the recognized amounts
and when there is an intention to settle on a net
basis or realize the asset and settle the liability
simultaneously.
OMV enters in the normal course of business into
various master netting arrangements in the form of
International Swaps and Derivatives Association
(ISDA) agreements or European Federation of
Energy Traders (EFET) agreements or other similar
arrangements that do not meet the criteria of
offsetting in the statement of the financial position
in accordance with IAS 32.
The tables hereafter show the carrying amounts of
recognized financial assets and financial liabilities
that are subject to various netting arrangements.
The net column would be on the Group’s statement
of financial position, if all set-off rights were
exercised.
Offsetting of financial assets
In EUR mn
Derivative financial instruments
Trade receivables
Other sundry financial assets
Total
Derivative financial instruments
Trade receivables
Other sundry financial assets
Total
Offsetting of financial liabilities
In EUR mn
Financial
instruments
(gross)
Note
Amounts set
off in the
statement of
financial
position
Financial
instruments in
the statement
of financial
position (net)
Liabilities with
right of set-off
(not offset)
Net
18
18
18
18
18
18
2,676
3,056
1,903
7,634
2,776
3,451
1,837
8,065
2019
2018
2,676
3,042
1,903
7,620
2,776
3,420
1,833
8,029
—
(14)
—
(14)
—
(31)
(4)
(36)
(2,264)
(1,204)
(44)
(3,512)
412
1,838
1,858
4,108
(2,446)
(1,656)
(27)
(4,129)
330
1,764
1,806
3,900
Financial
instruments
(gross)
Note
Amounts set
off in the
statement of
financial
position
Financial
instruments in
the statement
of financial
position (net)
Assets with
right of set-off
(not offset)
Net
Derivative financial instruments
Trade payables
Other sundry financial liabilities
Total
Derivative financial instruments
Trade payables
Other sundry financial liabilities
Total
24
24
24
24
24
24
2,478
4,168
642
7,288
2,800
4,432
646
7,878
2019
2018
2,478
4,155
642
7,274
2,800
4,401
641
7,842
—
(14)
—
(14)
—
(31)
(4)
(36)
(2,288)
(1,204)
(20)
(3,512)
190
2,951
622
3,762
(2,471)
(1,656)
(2)
(4,129)
329
2,745
639
3,714
200
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
31 Result on financial instruments
Result on financial instruments
In EUR mn
Fair value changes of financial
assets and derivatives
Net impairment losses on financial
assets
Result on financial instruments
within operating result
Dividend income
Interest income
Interest expense
Expenses on the sales of trade
receivables
Impairments of financial
instruments, net
Other
Result on financial instruments
within financial result
Result on financial instruments
In EUR mn
Fair value
through profit
or loss
Amount
Equity instruments
designated as at
fair value through
other comprehen-
sive income
2019
Financial
assets at
amortized
cost
Financial
liabilities at
amortized
cost
241
(33)
208
5
169
(304)
(31)
(1)
(7)
241
—
241
—
—
—
(31)
—
—
—
—
—
5
—
—
—
—
—
—
(33)
(33)
—
152
—
—
(1)
—
—
—
—
—
—
(170)
—
—
(7)
(169)
(31)
5
151
(177)
Fair value
through profit
or loss
Amount
Equity instruments
designated as at
fair value through
other comprehen-
sive income
2018
Financial
assets at
amortized
cost
Financial
liabilities at
amortized
cost
Fair value changes of financial
assets and derivatives
Net impairment losses on financial
assets
Result on financial instruments
within operating result
(321)
(321)
(13)
—
(334)
(321)
Dividend income
Interest income
Interest expense
Expenses on the sales of trade
receivables
Impairments of financial
instruments, net
Other
Result on financial instruments
within financial result
20
117
(290)
(31)
1
(30)
—
8
—
(31)
—
—
(214)
(23)
—
—
—
20
—
—
—
—
—
20
—
(13)
(13)
—
108
—
—
1
—
—
—
—
—
—
(131)
—
—
(30)
109
(161)
201
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
The interest expense not allocated mainly referred
to the unwinding of provisions in amount of
EUR 130 mn (2018: EUR 149 mn).
32 Share based payments
Long Term Incentive (LTI) plans
LTI plans with similar conditions have been granted
to the Executive Board and selected senior manag-
ers in the Group yearly. At vesting date, shares will
be granted to the participants. The number of shares
is determined depending on the achievement of
defined performance criteria. Disbursement is made
in cash or in shares. Executive Board members and
senior managers as active participants of the plans
are required to build up an appropriate volume of
shares and to hold those shares until retirement or
departure from the Company. For senior managers,
if the LTIP eligibility lapses, but they are still in an
active employment with the company, the share-
holding requirement expires when the last LTIP is
paid out. The shareholding requirement is defined
as a percentage of the annual gross base salary, for
the Executive Board, and as a percentage of the
respective Target Long Term Incentive for the senior
managers. Executive Board members have to fulfill
the shareholding requirement within five years after
the initial respective appointment. Until fulfillment
of the shareholding requirement the disbursement
is in form of shares whilst thereafter the plan
participants can decide between cash or share
settlement. As long as the shareholding require-
ments are not fulfilled the granted shares after
deduction of taxes are transferred to a trustee
deposit, managed by the Company.
For share-based payments the grant date fair values
are spread as expenses over the three years
performance period with a corresponding increase
in shareholders’ equity. In case of assumed cash-
settlements a provision is made for the expected
future costs of the LTI plans at statement of financial
position date based on fair values.
Long Term Incentive Plans
Start of plan
End of performance period
Vesting date
Shareholding requirement
Executive Board Chairman
Executive Board Deputy Chairman
Other Executive Board members
Senior managers
Expected shares as of December 31, 2019
Maximum shares as of December 31, 2019
Fair value of plan (in EUR mn) as of
December 31, 2019 1
Provision (in EUR mn) as of December 31,
2019 1
Estimated tax payments related to equity
settled transactions (in EUR mn) 2
2019 plan
1/1/2019
12/31/2021
3/31/2022
2018 plan
1/1/2018
12/31/2020
3/31/2021
2017 plan
1/1/2017
12/31/2019
3/31/2020
200% of
annual gross
base salary
175% of
annual gross
base salary
150% of
annual gross
base salary
75% of the
respective
Target Long
Term Incentive
295,037 shares
372,732 shares
200% of
annual gross
base salary
175% of
annual gross
base salary
150% of
annual gross
base salary
75% of the
respective
Target Long
Term Incentive
169,883 shares
278,266 shares
200% of annual
gross base
salary
175% of annual
gross base
salary
150% of annual
gross base
salary
75% of the
respective
Target Long
Term Incentive
379,120 shares
422,937 shares
2016 plan
1/1/2016
12/31/2018
3/31/2019
200% of
gross base
salary
175% of
gross base
salary
150% of
gross base
salary
75% of
annual gross
base salary
—
—
15
4
2
9
5
1
20
16
2
—
—
—
1 Excluding incidental wage costs
2 This position includes estimated tax obligations of participants of the plan associated with equity settled transactions of the whole plan. This amount is
paid by OMV in cash to the tax authority on behalf of participants after vesting date.
202
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Personal investment held in shares
Active Executive Board members
Seele
Pleininger
Florey
Gangl 1
Former Executive Board members 2
Leitner
Roiss
Total — Executive Board
Other senior managers 2
Total personal investment
12/31/2019
12/31/2018
12/31/2017
12/31/2016
91,974 shares
45,032 shares
24,351 shares
10,730 shares
70,890 shares
28,511 shares
13,401 shares
—
48,435 shares
19,333 shares
8,335 shares
—
38,038 shares
12,979 shares
—
—
44,211 shares
—
216,298 shares
368,268 shares
584,566 shares
65,245 shares
—
178,047 shares
59,335 shares
—
135,438 shares
51,249 shares
81,831 shares
184,097 shares
299,997 shares
478,044 shares
256,202 shares
391,640 shares
317,840 shares
501,937 shares
1 Thomas Gangl took part in LTIP 2016, 2017 and 2018 in his position as senior manager. In 2019 he took part in LTIP as both senior manager as well as
Executive Board member.
2 Personal investment of former Executive Board members and other senior managers are only included if shares are held in the OMV trustee deposit.
Equity Deferral
The Equity Deferral serves as a long-term compen-
sation vehicle for the members of the Executive
Board that promotes retention and shareholder
alignment in OMV, combining the interests of
management and shareholders via a long-term
investment in restricted shares. The holding period
of the Equity Deferral part is three years from
vesting. The plan also seeks to prevent inadequate
risk-taking.
The Annual Bonus is capped at 180% of the target
Annual Bonus (until 2017: 200% of the annual gross
salary). One third of the Annual Bonus (until 2017:
50% of the granted Annual Bonus) is granted in
shares. The determined bonus achievement is
settled per March 31 following the period end
whereby at the statement of financial position date
the target achievements and the share price is
estimated (the latter on basis of market quotes). In
case of major changes in external factors the
Supervisory Board can adjust the threshold, target
and/or maximum levels (but not the criteria as such
nor the vesting) for the Financial Targets of the
Annual Bonus. The granted shares after deduction
of taxes are transferred to a trustee deposit,
managed by the Company, to be held for three
years.
In 2019 expenses amounting to EUR 2 mn were
recorded with a corresponding increase in equity
(2018: EUR 2 mn).
Total Expense
Expenses related to share based payment transac-
tions including long-term incentive plans as well as
equity deferral are summarized in the below table.
Expenses related to share based payment transactions 1
In EUR mn
Cash settled
Equity settled
Total expenses arising from share based payment transactions
1 Excluding incidental wage costs
2019
2018
21
4
25
6
6
12
203
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Other Information
33 Average number of employees
Average number of employees 1
OMV Group excluding Petrom Group
OMV Petrom Group
OMV Group
2019
7,407
12,720
20,127
2018
6,864
13,409
20,272
1 Calculated as the average of the month’s end numbers of employees during the year
The decrease related to OMV Petrom Group is a
result of outsourced activities and of reorganization
and restructuring programs as a consequence of
process optimization and cost efficiency measures.
The increase in the average number of employees
of OMV Group (excl. Petrom Group) was mainly
coming from the acquisition of SapuraOMV
Upstream Sdn. Bhd. on January 31, 2019 as well as
the acquisition of Shell´s Upstream business in New
Zealand in December 2018.
34 Expenses Group auditor
Expenses for services rendered by the Group
auditor (including the international network in terms
of section 271b UGB) comprised the following:
Expenses for services rendered by the Group auditor (including the inter national network)
In EUR mn
2019
2018
Group auditor
Audit of Group accounts and year-end audit
Other assurance services
Tax advisory services
Other services
Total
3.15
0.71
0.09
0.29
4.24
thereof
Ernst&Young
Wirtschafts-
prüfungsgesell-
schaft m.b.H
1.39
0.44
0.00
0.02
1.84
thereof
Ernst&Young
Wirtschafts-
prüfungsgesell-
schaft m.b.H
1.34
0.54
0.00
0.00
1.88
Group auditor
2.94
0.64
0.05
0.24
3.86
204
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
35 Related parties
Under IAS 24, details of relationships with related
parties and related enterprises not included in
consolidation must be disclosed. Enterprises and
individuals are considered to be related if one party
is able to control or exercise significant influence
over the business of the other. Österreichische
Beteiligungs AG (ÖBAG), Vienna, holds an interest of
31.5% and Mubadala Petroleum and Petrochemicals
Holding Company L.L.C., (MPPH) Abu Dhabi, holds
an interest of 24.9% in OMV Aktiengesellschaft; both
are related parties under IAS 24.
In 2019, there were following arm's-length supplies
of goods and services between the Group and
equity-accounted companies, except for gas
purchases from OJSC Severneftegazprom which are
not based on market prices but on cost plus defined
margin.
Transactions with equity-accounted investments – Sales and Receivables
In EUR mn
Borealis
Enerco Enerji Sanayi Ve Ticaret A.Ş.
Erdöl-Lagergesellschaft m.b.H.
GENOL Gesellschaft m.b.H. 1
PEGAS CEGH Gas Exchange Services GmbH
Trans Austria Gasleitung GmbH
Total
2019
2018
Sales and
other income
Trade
receivables
Sales and
other income
Trade
receivables
1,284
0
76
196
1
10
1,567
58
0
5
20
0
1
84
1,432
4
41
208
1
11
1,696
55
1
—
16
0
1
72
1 In 2019 transactions with GENOL Gesellschaft m.b.H. as well as GENOL Gesellschaft m.b.H. & Co KG are included, while 2018 transactions were only
with GENOL Gesellschaft m.b.H & Co KG (business of GENOL Gesellschaft m.b.H. & Co KG was transferred to GENOL Gesellschaft m.b.H in October
2019, see Note 38 – Direct and indirect investments of OMV Aktiengesellschaft)
Transactions with equity-accounted investments – Purchases and Payables
In EUR mn
Borealis
Deutsche Transalpine Oelleitung GmbH
Enerco Enerji Sanayi Ve Ticaret A.Ş.
EPS Ethylen-Pipeline-Süd GmbH & Co KG
Erdöl-Lagergesellschaft m.b.H.
GENOL Gesellschaft m.b.H. 1
OJSC Severneftegazprom
Trans Austria Gasleitung GmbH
Total
2019
2018
Purchases
and services
received
Trade
payables
Purchases
and services
received
Trade
payables
42
34
9
2
59
2
179
22
348
9
3
—
—
29
0
20
1
63
48
30
157
2
62
2
161
22
482
7
3
8
—
30
0
18
1
67
1 In 2019 transactions with GENOL Gesellschaft m.b.H. as well as GENOL Gesellschaft m.b.H. & Co KG are included, while 2018 transactions were only
with GENOL Gesellschaft m.b.H & Co KG (business of GENOL Gesellschaft m.b.H. & Co KG was transferred to GENOL Gesellschaft m.b.H in October
2019, see Note 38 – Direct and indirect investments of OMV Aktiengesellschaft)
205
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Dividend distributed from equity-accounted investments
In EUR mn
Abu Dhabi Oil Refining Company
Borealis AG
Enerco Enerji Sanayi Ve Ticaret A.Ş.
GENOL Gesellschaft m.b.H. & Co KG
OJSC SEVERNEFTEGAZPROM
Pearl Petroleum Company Limited
PEGAS CEGH Gas Exchange Services GmbH
Trans Austria Gasleitung GmbH
Dividend distributed from equity-accounted investments
As of balance sheet date other financial receivables
in an amount of EUR 7 mn (2018: EUR 6 mn) were
outstanding from Freya Bunde-Etzel GmbH & Co. KG.
Moreover, there was an outstanding dividend
receivable from Abu Dhabi Oil Refining Company
amounting to EUR 34 mn.
As per December 31, 2019 there were other financial
liabilities in an amount of EUR 1 mn (2018:
EUR 3 mn) with Trans Austria Gasleitung GmbH.
The balance of prepayments received, shown in line
contract liabilities, from Erdöl-Lagergesellschaft
m.b.H. amounted to EUR 170 mn at December 31,
2019 (2018: EUR 140 mn) and is related to a long-
term contract for rendering of services.
Government-related entities
Based on the OMV ownership structure, the
Republic of Austria has an indirect relationship with
OMV via ÖBAG and is therefore, together with
companies in which the Republic of Austria is a
majority shareholder, considered a related party.
2019
2018
34
297
—
1
6
31
1
14
384
—
360
1
1
10
34
0
15
422
OMV has transactions at arm´s length in the normal
course of business mainly with Österreichische Post
AG, Verbund AG, Österreichische Bundesbahnen-
Holding Aktiengesellschaft, Bundesbeschaffung
GmbH and their subsidiaries.
Via MPPH, OMV has an indirect relationship with
the Emirate of Abu Dhabi, which is, together with
the companies under control of Abu Dhabi also
considered a related party. In 2019, there were
supplies of goods and services for instance with
Compañía Española de Petróleos (CEPSA) and Abu
Dhabi National Oil Company (ADNOC). OMV
cooperates with ADNOC in several Upstream
arrangements. Furthermore, on July 31, 2019 OMV
and ADNOC closed the strategic equity partnerships
covering both the existing ADNOC Refining
business and a new Trading Joint Venture. For
further details see Note 3 – Changes in group
structure.
206
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Key management personnel compensation
Remuneration received by the Executive Board
In EUR mn
active members of the Executive
Board as of December 31, 2019
former members of the
Executive Board
Seele Pleininger
Florey Gangl 5
Leitner 6 Davies 7 Huijskes 8 Roiss 9
Total
2019
3.36
1.10
1.00 2
1.25
0.01
0.28
0.28
—
3.60
0.70
2.90
1.64
0.75
—
0.87
0.01
0.19
0.19
—
1.75
0.49
1.26
1.59
0.70
—
0.84
0.04 3
0.18
0.18
—
1.16
0.47
0.69
0.29
0.29
—
—
0.01
0.07
0.07
—
—
—
—
1.55
0.70
—
0.84
0.01
0.18
0.18
0.22 4
2.08
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8.43
3.54
1.00
3.80
0.09
0.88
0.88
0.22
0.25
0.42
3.13
12.39
0.47
1.61
—
0.25
—
0.42
—
3.13
2.13
10.26
7.23
3.58
2.93
0.37
4.03
0.25
0.42
3.13
21.92
Short term benefits
Fixed (base salary)
Fixed (functional
allowance)
Variable (cash bonus) 1
Benefits in kind
Post employment benefits
Pension fund
contributions
Termination benefits
Shared based benefits
Variable (Equity Deferral
2018)
Variable (LTIP)
Remuneration received by
the Executive Board
1 The variable components relate to target achievement in 2018, for which bonuses were paid in 2019.
2 Rainer Seele received a payment for the interim responsibility for “Marketing and Trading” since July 1, 2019.
3 Including schooling costs and related taxes
4 Manfred Leitner received an annual leave compensation payment amounting to EUR 0.22 mn.
5 Thomas Gangl joined the Executive Board effectively July 1, 2019.
6 Manfred Leitner resigned from the Executive Board effectively June 30, 2019.
7 David C. Davies resigned from the Executive Board effectively July 31, 2016.
8 Jaap Huijskes resigned from the Executive Board effectively August 31, 2015.
9 Gerhard Roiss resigned from the Executive Board effectively June 30, 2015.
207
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Remuneration received by the Executive Board
In EUR mn
active members of the Executive
Board as of December 31, 2018
former members of the
Executive Board
Seele Pleininger
Florey Leitner Davies 6 Floren 7 Huijskes 8 Roiss 9
Total
2018
Short term benefits
Fixed (base salary)
Variable (cash bonus) 1
Benefits in kind
Post employment benefits
Pension fund
contributions
Shared based benefits
2.01
1.10
0.90
0.01
0.28
0.28
2.35
1.34
0.75
0.58
0.01
0.19
0.19
0.96
1.35
0.70
0.60
0.05 5
0.18
0.18
0.53
Variable (Equity
Deferral 2017) 2
Variable (LTIP)
Remuneration received by
the Executive Board
0.80
1.55 3
0.51
0.45 4
0.53
—
1.41
0.70
0.70
0.01
0.18
0.18
2.34
0.62
1.72
0.15
—
0.15
—
—
—
2.59
0.13
2.45
—
—
—
—
—
—
1.48
—
1.48
—
—
—
—
—
—
—
—
—
—
6.26
3.25
2.92
0.09
0.81
—
1.78
—
3.30
0.81
15.32
—
1.78
—
3.30
2.59
12.73
4.64
2.49
2.06
3.93
2.74
1.48
1.78
3.30
22.40
1 The variable components relate to target achievement in 2017, for which bonuses were paid in 2018.
2 The Equity Deferral from the Annual Bonus was renamed from “Share part of the Annual Bonus” at the grant date.
3 Rainer Seele received pro-rated payout in shares for LTIP 2015 as he joined the Executive Board effectively July 1, 2015.
4 Johann Pleininger received pro-rated payout in shares and in addition cash payment amounting to EUR 0.52 mn based on the senior manager LTIP 2015.
5 Including schooling costs, moving costs and related taxes
6 David C. Davies resigned from the Executive Board effectively July 31, 2016.
7 Hans-Peter Floren resigned from the Executive Board effectively December 31, 2014.
8 Jaap Huijskes resigned from the Executive Board effectively August 31, 2015.
9 Gerhard Roiss resigned from the Executive Board effectively June 30, 2015.
Remuneration received by top executives (excl. Executive Board) 1
In EUR mn
Salaries and bonuses
Pension fund contribution
Severance benefits
Share-based benefits
Remuneration received by top executives (excl. Executive Board) 1
1 In 2019 there were 38 top executives (2018: 41).
2019
17.1
1.0
0.6
15.3
34.0
2018
23.2
1.8
0.8
21.7
47.4
The members of the Executive Board and the
members of the Supervisory Board are covered by
directors and officers liability insurance (D&O) and
criminal legal expenses insurance. A large number
of other OMV employees also benefit from these
two forms of insurance, and the insurers levy lump-
sum premiums, which are not specifically attributed
to the Board members.
See Note 32 – Shared based payments – for details
on Long Term Incentive Plans and Equity Deferral.
In 2019, remuneration expenses for the Supervisory
Board amounted to EUR 0.6 mn (2018: EUR 0.6 mn).
208
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
36 Unconsolidated structured entities
OMV is selling trade receivables in a securitization
program to Carnuntum DAC, based in Dublin,
Ireland. In 2019, OMV transferred trade receivables
amounting in total to EUR 4,805 mn to Carnuntum
DAC (2018: EUR 4,868 mn).
As at December 31, 2019, OMV held seller participa-
tion and complementary notes in Carnuntum DAC
amounting to EUR 160 mn (2018: seller participation
and complementary notes of EUR 183 mn) shown in
other financial assets. As of December 31, 2019, the
maximum exposure to loss from the securitization
transaction was EUR 108 mn (2018: EUR 150 mn).
The seller participation notes are senior to a loss
reserve and a third party investor participation. The
complementary notes are senior to seller participa-
tion notes and are of the same seniority as the
senior notes issued by the program. The risk retained
by OMV Group is insignificant and therefore the
trade receivables sold are derecognized in their
entirety. The receivables are sold at their nominal
amount less a discount. The discount was recognized
in profit or loss and amounted in total to EUR 29 mn
in 2019 (2018: EUR 30 mn). Interest income on the
notes held in Carnuntum DAC amounted to
EUR 4 mn in 2019 (2018: EUR 4 mn). In addition,
OMV received a service fee for the debtor manage-
ment services provided for the receivables sold.
37 Subsequent events
In March 2020, the Altlichtenwarth Tief 1 explora-
tion well (Austria) completed drilling. The final
results did not confirm the presence of commercial
quantities of hydrocarbons. The capitalized costs
incurred for the well amounted to EUR 27 mn as of
December 31, 2019.
USD 31 per barrel. OMV’s view is that the supply
surge, together with the massive uncertainty caused
by the coronavirus outbreak will lead to a highly
volatile market environment in the following
months.
On March 6, 2020, OPEC members and Russia failed
to agree on a cut to oil production that would have
responded to the sharp decrease in demand from
the new coronavirus outbreak. Consequently, on
March 8, 2020, oil prices dropped 30% after the
market was opened, with Brent crude reaching
On March 11, 2020, the Supervisory Board of OMV
has approved the acquisition of an additional
39% share in Borealis AG (Borealis) from Mubadala
for a purchase price of USD 4.68 bn, whereby OMV
is entitled to all dividends in relation to such
additional share in Borealis distributed after
December 31, 2019.
209
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
38 Direct and indirect investments of OMV Aktiengesellschaft
Changes in consolidated group
Name of company
Registered Office
Type of Change 1
Effective date
Upstream
SapuraOMV Upstream (Americas) Sdn. Bhd. Seri Kembangan
Seri Kembangan
SapuraOMV Upstream (Australia) Sdn. Bhd.
Mexico City
SapuraOMV Block 30, S. de R.L. de C.V.
Seri Kembangan
SapuraOMV Upstream (Mexico) Sdn. Bhd.
Nassau
SapuraOMV Upstream (Malaysia) Inc.
Seri Kembangan
SapuraOMV Upstream (NZ) Sdn. Bhd.
Seri Kembangan
SapuraOMV Upstream (Oceania) Sdn. Bhd.
Nassau
SapuraOMV Upstream (PM) Inc.
Nassau
SapuraOMV Upstream (Southeast Asia) Inc.
Nassau
SapuraOMV Upstream (Sarawak) Inc.
SapuraOMV Upstream (Holding) Sdn. Bhd.
Kuala Lumpur
SapuraOMV Upstream (Western Australia)
Pty Ltd
SapuraOMV Upstream Sdn. Bhd.
OMV (AFRICA) Exploration & Production
GmbH in Liqu.
OMV (Berenty) Exploration GmbH
OMV (Mandabe) Exploration GmbH
Perth
Seri Kembangan
Vienna
Vienna
Vienna
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
First consolidation (A)
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
January 31, 2019
First consolidation (A)
First consolidation (A)
January 31, 2019
January 31, 2019
Deconsolidation (L)
Deconsolidation (I)
Deconsolidation (I)
December 21, 2019
December 31, 2019
December 31, 2019
Downstream Oil
OMV Deutschland Services GmbH
ADNOC Global Trading LTD 2
Abu Dhabi Oil Refining Company 2
OMV Supply & Trading Italia S.r.l.
GENOL Gesellschaft m.b.H. 2
GENOL Gesellschaft m.b.H. & Co KG 2
Deutsche Transalpine Oelleitung GmbH 2
Transalpine Ölleitung in Österreich
Gesellschaft m.b.H. 2
Società Italiana per l'Oleodotto Transalpino
S.p.A. 2
Burghausen
Abu Dhabi
Abu Dhabi
Trieste
Vienna
Vienna
Munich
First consolidation
First consolidation
First consolidation (A)
First consolidation
First consolidation 3
Deconsolidation (L) 3
Increase in shares 4
July 2, 2019
July 29, 2019
July 31, 2019
July 31, 2019
October 18, 2019
October 18, 2019
December 30, 2019
Matrei in Osttirol
Increase in shares 4
December 30, 2019
Trieste
Increase in shares 4
December 30, 2019
1 “First consolidation” refers to newly formed or existing subsidiaries, while “First consolidation (A)” indicates the acquisition of a company. Companies
marked with “Deconsolidation (I)” have been deconsolidated due to immateriality, while those marked with “Deconsolidation (L)”were deconsolidated
following a liquidation process.
2 Company consolidated at-equity
3 All assets as well as the business of GENOL Gesellschaft m.b.H. & Co KG (previously consolidated at-equity) have been transferred to GENOL
Gesellschaft m.b.H., which triggered a change of consolidation method of GENOL Gesellschaft m.b.H. from not consolidated due to immateriality to at-
equity consolidated.
4 Acquisition of additional 7.26% shares in each company, leading to a new share in each company of 32.26% (previously 25.00% shares); The acquisition
of additional interests did not lead to a change of consolidation method.
For further information on acquisitions and
disposals refer to Note 3 – Changes in group
structure.
210
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Number of consolidated companies
January 1
Included for the first time
Deconsolidated during the year
December 31
thereof domiciled and operating abroad
thereof domiciled in Austria and operating abroad
2019
2018
Full
consoli-
dation
Equity
consoli-
dation
Full
consoli-
dation
Equity
consoli-
dation
99
15
(3)
111
68
20
17
3
(1)
19
11
—
98
13
(12)
99
53
22
15
2
—
17
9
—
211
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
List of investments
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with
an interest of at least 20%
Parent
company
Type of
consoli-
dation 1
Equity
interest in %
as of
December
31, 2019
Equity
interest
in % as of
December
31, 2018
Upstream
Energy Infrastructure Limited, Wellington
Energy Petroleum Holdings Limited, Wellington (EPHNZ)
Energy Petroleum Investments Limited, Wellington (EPILNZ)
Energy Petroleum Taranaki Limited, Wellington (EPTLNZ)
ENERGY PRODUCTION ENHANCEMENT SRL, Bucharest 2
JSC GAZPROM YRGM Development, Salekhard 3
KOM MUNAI LLP, Aktau
Maui Development Limited, Wellington
OJSC SEVERNEFTEGAZPROM, Krasnoselkup
OMV Abu Dhabi E&P GmbH, Vienna
OMV Abu Dhabi Offshore GmbH, Vienna
OMV Abu Dhabi Production GmbH, Vienna
OMV (AFRICA) Exploration & Production GmbH in Liqu.,
Vienna
OMV AUSTRALIA PTY LTD, Perth (OAUST)
OMV Austria Exploration & Production GmbH, Vienna (OEPA)
OMV Barrow Pty Ltd, Perth
OMV Beagle Pty Ltd, Perth
OMV (Berenty) Exploration GmbH, Vienna 4
OMV Bina Bawi GmbH, Vienna
OMV Block 70 Upstream GmbH, Vienna
OMV East Abu Dhabi Exploration GmbH, Vienna
OMV (EGYPT) Exploration GmbH in Liqu., Vienna 2
OMV Exploration & Production GmbH, Vienna (OMVEP)
OMV EXPLORATION & PRODUCTION LIMITED, Douglas
OMV (FAROE ISLANDS) Exploration GmbH in Liqu.,
Vienna 2, 5, 6
OMV GSB LIMITED, Wellington
OMV (IRAN) onshore Exploration GmbH, Vienna
OMV Jardan Block 3 Upstream GmbH, Vienna
OMV (Mandabe) Exploration GmbH, Vienna 4
OMV Maurice Energy GmbH, Vienna
OMV Middle East & Africa GmbH, Vienna
OMV Myrre Block 86 Upstream GmbH, Vienna
OMV (Namibia) Exploration GmbH, Vienna
OMV New Zealand Limited, Wellington (NZEA)
OMV New Zealand Production Limited, Wellington (OPLNZ)
OMV New Zealand Services Limited, Wellington (OSLNZ)
OMV (NORGE) AS, Stavanger
NZEA
OPLNZ
OSLNZ
OPLNZ
PETROM
ROMAN
OMVEP
PETROM
EPTLNZ
EPILNZ
EPHNZ
NZEA
TOPNZ
OMVEP
OMVEP
OMVEP
OMVEP
OWEAFR
OMV AG
OMVEP
OAUST
OAUST
OMVEP
PETEX
OMVEP
OMVEP
OMVEP
OMV AG
OMVEP
OMVEP
NZEA
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
ONAFRU
OMVEP
NZEA
NZEA
OMVEP
C
C
C
C
NC
C
C
NC
AE
C
C
C
C
C
NC
NC
NC
C
C
C
NC
C
NC
NC
C
C
C
NC
C
C
C
C
C
C
C
C
100.00
100.00
100.00
100.00
99.99
0.01
0.00
100.00
38.75
20.00
18.75
16.25
6.25
24.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100
100
100
100
99.99
0.01
0.00
100.00
38.75
20.00
18.75
16.25
6.25
24.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
212
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft
with an interest of at least 20%
OMV OF LIBYA LIMITED, Douglas
OMV Offshore (Namibia) GmbH, Vienna (ONAFRU)
OMV Offshore Bulgaria GmbH, Vienna
OMV Offshore Morondava GmbH, Vienna
OMV Oil and Gas Exploration GmbH, Vienna
OMV Oil Exploration GmbH, Vienna
OMV Oil Production GmbH, Vienna
OMV Orient Hydrocarbon GmbH, Vienna
OMV Orient Upstream GmbH, Vienna
OMV Oystercatcher Exploration GmbH in Liqu., Vienna 2, 5, 6
OMV Petroleum Exploration GmbH, Vienna (PETEX)
OMV Petroleum Pty Ltd, Perth
OMV Proterra GmbH, Vienna
OMV Russia Upstream GmbH, Vienna
OMV Taranaki Limited, Wellington
OMV (Tunesien) Production GmbH, Vienna
OMV (TUNESIEN) Sidi Mansour GmbH, Vienna
OMV Upstream International GmbH, Vienna (OUPI)
OMV (West Africa) Exploration & Production GmbH, Vienna
(OWEAFR) 2, 5
OMV (YEMEN) Al Mabar Exploration GmbH, Vienna
OMV (Yemen Block S 2) Exploration GmbH, Vienna
OMV (YEMEN) South Sanau Exploration GmbH, Vienna
Pearl Petroleum Company Limited, Road Town
PEI Venezuela Gesellschaft mit beschränkter Haftung,
Burghausen
Petroleum Infrastructure Limited, Wellington
PETROM EXPLORATION & PRODUCTION LIMITED, Douglas
Preussag Energie International GmbH, Burghausen
SapuraOMV Upstream (Americas) Sdn. Bhd., Seri
Kembangan (SEAMMY)
SapuraOMV Upstream (Australia) Sdn. Bhd., Seri
Kembangan (SEAUMY)
SapuraOMV Block 30, S. de R.L. de C.V., Mexico City
SapuraOMV Upstream (Mexico) Sdn. Bhd., Seri Kembangan
(SEMXMY)
SapuraOMV Upstream (Malaysia) Inc., Nassau (SEMYBH)
SapuraOMV Upstream (NZ) Sdn. Bhd., Seri Kembangan
(SENZMY)
SapuraOMV Upstream (Oceania) Sdn. Bhd., Seri Kembangan
(SEOCMY)
SapuraOMV Upstream (PM) Inc., Nassau
SapuraOMV Upstream JV Sdn. Bhd., Seri Kembangan
SapuraOMV Upstream (Southeast Asia) Inc., Nassau
(SESABH)
SapuraOMV Upstream (Sarawak) Inc., Nassau
Equity
interest
in % as of
December
31, 2019
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Type of
consoli-
dation 1
C
C
C
C
C
C
C
NC
NC
NC
C
NC
NC
C
C
C
NC
C
C
C
C
NC
AE
NC
C
C
C
C
C
C
C
C
C
C
C
C
C
C
100.00
100.00
100.00
100.00
10.00
100.00
100.00
99.99
100.00
100.00
100.00
99.00
1.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Parent
company
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
NZEA
OEPA
OMVEP
NZEA
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OUPI
OMVEP
NZEA
PETROM
OMVEP
SEUPMY
SEOCMY
SEUPMY
SEMXMY
SEAMMY
SESABH
SEOCMY
SEUPMY
SEMYBH
SENZMY
SEUPMY
SEMYBH
Equity
interest
in % as of
December
31, 2018
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
10.00
100.00
100.00
99.99
100.00
213
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft
with an interest of at least 20%
Equity
interest
in % as of
December
31, 2019
Equity
interest
in % as of
December
31, 2018
Type of
consoli-
dation 1
C
C
C
C
C
AE2
NAE
AE
AE
NAE
C
C
AE2
NAE
NAE
AE
C
AE2
AE
AE1
C
AE
AE
C
NC
NAE
NC
C
C
C
C
C
C
C
C
C
100.00
100.00
50.00
100.00
100.00
25.00
33.33
15.00
15.00
47.19
100.00
100.00
32.67
3.33
26.00
50.00
32.26
48.28
51.72
40.00
20.66
55.60
100.00
29.00
51.00
49.00
100.00
25.10
99.90
0.10
100.00
90.00
10.00
100.00
100.00
100.00
99.99
0.01
100.00
100.00
100.00
100.00
25.00
33.33
47.19
100.00
100.00
32.67
3.33
26.00
50.00
25.00
48.28
51.72
40.00
20.66
55.60
100.00
29.00
29.00
51.00
49.00
100.00
25.10
100.00
99.90
0.10
100.00
90.00
10.00
100.00
100.00
99.99
0.01
100.00
100.00
Parent
company
SOUPMY
SEAUMY
OMVEP
OPLNZ
PETROM
OMVRM
OMVRM
OMVRM
OMVRM
OMVRM
FETRAT
OMVRM
OMVRM
OMV AG
OMVRM
OMVRM
OMVD
OHUN
PDYNHU
OMVRM
OMVD
OMVRM
FETRAT
OMVRM
OMVRM
OMVRM
GASTR
OMVRM
SWJS
OMVRM
PETROM
OMVRM
OMVRM
OMVRM
OMV AG
OMVD
OMVRM
OMVRM
PETROM
ROMAN
PETROM
OMV AG
SapuraOMV Upstream (Holding) Sdn. Bhd., Kuala Lumpur
(SEUPMY)
SapuraOMV Upstream (Western Australia) Pty Ltd, Perth
SapuraOMV Upstream Sdn. Bhd., Seri Kembangan (SOUPMY)
Taranaki Offshore Petroleum Company, Wellington (TOPNZ)
TASBULAT OIL CORPORATION LLP, Aktau
Downstream Oil
Abu Dhabi Petroleum Investments LLC, Abu Dhabi (ADPINV)
Aircraft Refuelling Company GmbH, Vienna
Abu Dhabi Oil Refining Company, Abu Dhabi
ADNOC Global Trading LTD
Autobahn – Betriebe Gesellschaft m.b.H., Vienna
Avanti Deutschland GmbH, Berchtesgaden
Avanti GmbH, Anif (FETRAT)
Borealis AG, Vienna
BSP Bratislava-Schwechat Pipeline GmbH, Vienna
BTF Industriepark Schwechat GmbH, Vienna
Deutsche Transalpine Oelleitung GmbH, Munich 7
DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft., Budapest
E-Mobility Provider Austria GmbH, Vienna
EPS Ethylen-Pipeline-Süd GmbH & Co KG, Munich
Erdöl-Lagergesellschaft m.b.H., Lannach
FE-Trading trgovina d.o.o., Ljubljana
GENOL Gesellschaft m.b.H., Vienna 4
GENOL Gesellschaft m.b.H. & Co, Vienna
Haramidere Depoculuk Anonim Şirketi, Istanbul
KSW Beteiligungsgesellschaft m.b.H., Vienna (SWJS)
KSW Elektro- und Industrieanlagenbau Gesellschaft m.b.H.,
Feldkirch
OMV Adriatic Marketing d.o.o., Zagreb
OMV BULGARIA OOD, Sofia
OMV Česká republika, s.r.o., Prague
OMV Deutschland GmbH, Burghausen (OMVD)
OMV Deutschland Services GmbH
OMV Hungária Ásványolaj Korlátolt Felelösségü Társaság,
Budapest (OHUN)
OMV – International Services Ges.m.b.H., Vienna
OMV PETROM Aviation SRL, Otopeni
OMV PETROM MARKETING SRL, Bucharest (ROMAN)
OMV Refining & Marketing GmbH, Vienna (OMVRM)
214
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with
an interest of at least 20%
OMV Refining & Marketing Middle East & Asia GmbH,
Vienna
OMV SLOVENIJA trgovina z nafto in naftnimi derivati,
d.o.o., Koper
OMV Slovensko s.r.o., Bratislava
OMV SRBIJA d.o.o., Belgrade
OMV Supply & Trading AG, Zug
OMV Supply & Trading Italia S.r.l., Trieste 4
OMV Supply & Trading Limited, London (OTRAD)
OMV Supply & Trading Singapore PTE LTD., Singapore
Pak-Arab Refinery Limited, Karachi
PETRODYNE-CSEPEL Zrt., Budapest (PDYNHU)
Petrom-Moldova S.R.L., Chisinau
Routex B.V., Amsterdam
Salzburg Fuelling GmbH, Salzburg
SMATRICS GmbH & Co KG, Vienna
Società Italiana per l’Oleodotto Transalpino S.p.A., Trieste 7
SuperShop Marketing GmbH, Budapest
TGN Tankdienst-Gesellschaft Nürnberg GbR, Nuremberg
TRANS GAS LPG SERVICES SRL, Bucharest
Transalpine Ölleitung in Österreich Gesellschaft m.b.H.,
Matrei in Osttirol 7
Downstream Gas
AGCS Gas Clearing and Settlement AG, Vienna
AGGM Austrian Gas Grid Management AG, Vienna
Central European Gas Hub AG, Vienna (HUB)
Enerco Enerji Sanayi Ve Ticaret A.Ş., Istanbul
Freya Bunde-Etzel GmbH & Co. KG, Bonn
GAS CONNECT AUSTRIA GmbH, Vienna (OGG)
OMV Enerji Ticaret Anonim Şirketi, Istanbul (GASTR)
OMV Gas, Marketing & Trading Belgium BVBA, Brussels
OMV Gas & Power GmbH, Vienna (OGI)
OMV Gas Marketing & Trading d.o.o., Zagreb
OMV Gas Marketing & Trading Deutschland GmbH,
Regensburg (ECONDE)
OMV Gas Marketing & Trading GmbH, Vienna (ECOGAS)
OMV Gas Marketing & Trading Hungária Kft., Budapest
OMV Gas Marketing & Trading Italia S.r.l., Milan
OMV Gas Marketing Trading & Finance B.V., Amsterdam
OMV Gas Storage Germany GmbH, Cologne (OGSG)
OMV Gas Storage GmbH, Vienna
Equity
interest
in % as of
December
31, 2019
Equity
interest
in % as of
December
31, 2018
Type of
consoli-
dation 1
C
C
C
C
C
C
C
NC
AE2
C
C
NAE
NAE
AE2
AE
NAE
NAE
100.00
100.00
92.25
99.96
99.96
0.04
100.00
100.00
100.00
100.00
40.00
100.00
100.00
20.00
33.33
40.00
32.26
50.00
33.33
92.25
99.96
99.96
0.04
100.00
100.00
100.00
100.00
40.00
100.00
100.00
20.00
33.33
40.00
25.00
50.00
33.33
80.00
Parent
company
OMVRM
OMVRM
OMVRM
PETROM
OMVRM
OMVRM
OMVRM
OMVRM
OTRAD
ADPINV
OHUN
PETROM
OMVRM
OMVRM
OMVRM
OMVRM
OHUN
OMVD
PETROM
OMVRM
AE
32.26
25.00
OGG
OGG
OGI
OGI
OGSG
OGI
OGI
ECOGAS
ECONDE
OMV AG
ECOGAS
ECOGAS
OGI
ECOGAS
ECOGAS
OFS
OGI
OGI
NAE
C
C
AE
AE
C
C
C
C
C
C
C
C
C
C
C
C
23.13
51.00
65.00
40.00
39.99
51.00
100.00
99.9
0.01
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
23.13
51.00
65.00
40.00
39.99
51.00
100.00
99.9
0.01
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
215
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft
with an interest of at least 20%
Equity
interest
in % as of
December
31, 2019
Equity
interest
in % as of
December
31, 2018
Type of
consoli-
dation 1
C
C
C
C
AE
NAE
AE2
NAE
C
C
C
C
C
NC
C
C
C
C
C
100.00
100.00
99.99
100.00
49.00
50.00
15.53
20.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
25.00
100.00
99.99
100.00
100.00
99.99
100.00
49.00
50.00
15.53
20.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
25.00
100.00
99.99
51.01
51.01
Parent
company
OGI
OGI
PETROM
OGI
HUB
OGI
OGG
PETROM
OMV AG
SNO
SNO
SNO
SNO
OMV AG
OMV AG
SNO
PETROM
OMV AG
PETROM
OMV AG
OMV Gaz Iletim A.S., Istanbul
OMV Kraftwerk Haiming GmbH, Haiming
OMV PETROM GAS SRL, Bucharest
OMV Switzerland Holding AG, Zug
PEGAS CEGH Gas Exchange Services GmbH, Vienna
South Stream Austria GmbH, Vienna
Trans Austria Gasleitung GmbH, Vienna 8
Corporate and Other
ASOCIATIA ROMANA PENTRU RELATIA CU INVESTITORII,
Bucharest
Diramic Insurance Limited, Gibraltar
OMV Clearing und Treasury GmbH, Vienna
OMV Finance Services GmbH, Vienna (OFS)
OMV Finance Services NOK GmbH, Vienna
OMV Finance Solutions USD GmbH, Vienna
OMV Insurance Broker GmbH, Vienna
OMV International Oil & Gas GmbH, Baar
OMV Petrom Global Solutions SRL, Bucharest
OMV Solutions GmbH, Vienna (SNO)
PETROMED SOLUTIONS SRL, Bucharest
Petrom
OMV PETROM SA, Bucharest (PETROM) 9
1 Type of consolidation:
C
Consolidated subsidiary
AE Associated companies accounted for at-equity
AE1 Despite majority interest not consolidated due to absence of control
AE2 Joint venture accounted at-equity
NC Not-consolidated subsidiary; shell or distribution companies of relative insignificance individually and collectively to the
consolidated financial statements
NAE Other not consolidated investment; associated companies of relatively little importance to the assets and earnings of the
consolidated financial statements
2 In liquidation
3 Economic share 99.99%
4 Type of consolidation was changed compared to 2018.
5 Company name changed compared to 2018.
6 Liquidation process was finalized as per January 9, 2020.
7 Equity interest changed compared to 2018.
8 Economic share 10.78%
9 OMV Petrom SA is assigned to the relevant segments in the segment reporting.
All the subsidiaries which are not consolidated
either have low business volumes or are distribu-
tion companies; the total sales, net income/losses
and equity of such companies represent less than
1% of the Group totals.
216
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Material joint operations (IFRS 11)
Name
Nature of activities
Operating
segment
Principal
place of
business
%
ownership
2019
%
ownership
2018
Nafoora – Augila 1
Concession 103 1
Pohokura
Neptun Deep
Nawara
Block S(2)
Onshore development of
hydrocarbon reservoirs
Onshore development and
production of hydrocarbons
Offshore production of
hydrocarbons
Offshore exploration for
hydrocarbons
Onshore development of
hydrocarbons reservoirs
Onshore development and
production of hydrocarbons
Upstream
Libya
Upstream
Upstream
Libya
New
Zealand
Upstream
Romania
Upstream
Tunisia
Upstream
Yemen
100
100
74
50
50
44
100
100
74
50
50
44
1 The percentage disclosed represents the Second Party Share. The state owned Libyan national oil corporation NOC is entitled to 88-90% of the
production (“primary split”).
Other significant arrangements
Name
Nature of activities
NC 115 1
NC 186 1
Maari 2
SK 408 3
Aasta Hansteen
Edvard Grieg
Gudrun
Gullfaks
Wisting
Sarb & Umm Lulu
Ghasha
Onshore development and
production of hydrocarbons
Onshore development and
production of hydrocarbons
Offshore production of
hydrocarbons
Offshore exploration for and
development of hydrocarbons
Offshore production of
hydrocarbons
Offshore production of
hydrocarbons
Offshore production of
hydrocarbons
Offshore production of
hydrocarbons
Offshore exploration for
hydrocarbons
Offshore development and
production of hydrocarbons
Offshore exploration
Operating
segment
Principal
place of
business
%
ownership
2019
%
ownership
2018
Upstream
Libya
Upstream
Upstream
Libya
New
Zealand
Upstream
Malaysia
Upstream
Norway
Upstream
Norway
Upstream
Norway
Upstream
Norway
Upstream
Norway
Upstream
Upstream
Abu Dhabi
Abu Dhabi
30
24
69
40
15
20
24
19
25
20
5
30
24
69
15
20
24
19
25
20
5
1 The percentage disclosed represents the Second Party Share. The state owned Libyan national oil corporation is entitled to 88-90% of the production
(“primary split”).
2 OMV does not have control nor joint control over the Maari fields as there is more than one combination of parties which ensures the necessary majority
(75%) for relevant decisions. In 2019 Maari was reclassified to “held for sale”. For further details refer to Note 20 – Assets and liabilities held for sale.
3 Part of the OMVSapura acquisition; for further details refer to Note 3 – Changes in group structure.
217
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Oil and Gas Reserve Estimation and Disclosures
(unaudited)
The following tables provide supplementary
information in respect of the Group’s oil and gas
activities. In the absence of detailed disclosure rules
in this area under IFRS, the Group has elected to
voluntarily disclose the data that would have been
required under the ASC 932 as if it was reporting
under US GAAP.
To the extent that information refers to financial
statements data, the information is based on the
primary financial statements (IFRS financial
statements).
The regional structure is presented below 1:
Romania and Black Sea
Bulgaria, Kazakhstan and Romania
Austria
Russia
North Sea
Austria
Russia
Norway and United Kingdom (until 2017)
Middle East and Africa
Iran (evaluation on hold), Kurdistan Region of Iraq, Libya, Madagascar,
Tunisia, United Arab Emirates, Yemen, Pakistan (until 2018)
New Zealand and Australia
Australia and New Zealand
Malaysia
SapuraOMV 2
1 Regions listed in the Director’s Report ‘Central and Eastern Europe’ (includes Romania and Black Sea as well as Austria) and ‘Asia-Pacific’ (includes
New Zealand and Australia as well as Malaysia) are split further in this disclosure to provide the information in a more detailed manner.
2 Includes not only Malaysia but also SapuraOMV subsidiaries in New Zealand, Australia and Mexico.
Acquisitions
On January 31, 2019, OMV acquired a 50% stake of
the issued share capital in SapuraOMV Upstream
Sdn. Bhd. As OMV has the decision power over
relevant activities, the new entity and its subsidiar-
ies are fully consolidated.
Besides future growth in daily production in
Malaysian offshore gas fields, this transaction gives
OMV access to exploration blocks in New Zealand,
Australia and Mexico.
SapuraOMV Upstream Sdn. Bdn. and its subsidiar-
ies are depicted in the Malaysia region in the
upcoming tables.
For further details on acquisitions see Note 3 –
Changes in group structure.
On April 29, 2018, OMV signed an agreement for the
acquisition of a 20% stake in the offshore conces-
sion consisting of two main fields, SARB and Umm
Lulu, in Abu Dhabi, as well as the associated
infrastructure.
On December 28, 2018, OMV completed the
acquisition of Shell’s Upstream business in New
Zealand comprising interests in Pohokura (48%) and
Maui (83.75%) as well as related infrastructure for
production, storage and transportation. Further-
more on the same date, OMV acquired from Todd
Petroleum Mining Company Limited their 6.25%
share in Maui. As a result of the transaction, OMV
obtained 100% interest in Maui field and assumed
control.
Disposals
There were no major disposals during 2019.
On June 28, 2018, the sale of the Upstream compa-
nies active in Pakistan was closed.
On December 21, 2018, the sale of OMV Tunisia
Upstream GmbH, was finalized, comprising part of
OMV’s Upstream business in Tunisia.
Non-controlling interest
As OMV holds 51% of OMV Petrom, it is fully
consolidated; figures therefore include 100% of
OMV Petrom assets and results.
On December 19, 2018, a concession agreement
was signed awarding OMV with 5% interest in the
Ghasha concession offshore Abu Dhabi comprising
the Ghasha mega project.
OMV has a share of 50% in SapuraOMV and it is
fully consolidated; figures therefore include 100% of
SapuraOMV assets and results.
218
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Equity-accounted investments
OMV holds a 10% interest in Pearl Petroleum
Company Limited (Middle East and Africa region).
The subsequent tables may contain rounding
differences.
OMV has a 24.99% interest in OJSC Severneftegaz-
prom (Russia region).
The disclosures of equity-accounted investments in
below tables represent the interest of OMV in the
companies.
Tables
a) Capitalized costs
Capitalized costs represent the sum of capitalized oil
and gas assets, including other intangible assets
and property, plant and equipment such as land,
plant and machinery, concessions, licenses and
rights.
Capitalized costs – subsidiaries
In EUR mn
Unproved oil and gas properties
Proved oil and gas properties
Total
Accumulated depreciation
Net capitalized costs
Capitalized costs – equity-accounted investments
In EUR mn
Unproved oil and gas properties
Proved oil and gas properties
Total
Accumulated depreciation
Net capitalized costs
2019
3,211
26,830
30,041
2018
2,587
24,510
27,097
2017
2,116
22,372
24,489
(15,484)
14,557
(13,961)
13,136
(13,487)
11,002
2019
2018
2017
173
315
489
(67)
421
249
202
451
(35)
417
262
157
420
(22)
397
219
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
b) Costs incurred
Costs incurred include all costs, capitalized or
expensed, during the year in the Group’s oil and gas
property acquisition, exploration and development
activities.
Romania
and Black
Sea Austria
Russia North Sea
Middle
East and
Africa
2019
New
Zealand
and
Australia Malaysia
Total
—
—
—
93
411
504
—
53
58
112
—
—
—
—
—
118
412
531
—
61
59
120
—
—
—
—
—
—
—
30
—
—
—
—
—
9
1
—
1
604
605
—
121
174
296
—
12
32
222
266
15
—
40
65
105
—
683
20
90
1,398
695
360
1,021
2,681
—
45
2018
—
1,014
788
—
1,801
—
99
210
309
—
321
12
196
1,542
386
9
10
1,193
12
—
2017
—
—
—
—
—
707
300
887
3,695
21
—
—
521
2
—
—
—
523
—
83
327
410
—
—
16
53
68
—
584
—
—
1,106
117
—
55
265
322
—
—
62
108
170
5
—
14
4
18
—
—
—
—
—
—
584
230
756
2,093
122
Costs incurred
In EUR mn
Subsidiaries
Acquisition of
proved properties
Acquisition of
unproved
properties
Exploration costs
Development costs
Costs incurred
Equity-accounted
investments
Subsidiaries
Acquisition of
proved properties
Acquisition of
unproved
properties
Exploration costs
Development costs
Costs incurred
Equity-accounted
investments
Subsidiaries
Acquisition of
proved properties
Acquisition of
unproved
properties
Exploration costs
Development costs
Costs incurred
Equity-accounted
investments
220
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
c) Results of operations of oil and gas producing
activities
The following tables represent only those revenues
and expenses which occur directly in connection
with OMV´s oil and gas producing operations. The
results of oil and gas activities should not be
equated to Upstream net income since interest
costs, general corporate overhead costs and other
costs are not allocated. Income taxes are hypotheti-
cally calculated, based on the statutory tax rates
and the effect of tax credits on investments and loss
carryforwards.
Results of operations of oil and gas producing activities
In EUR mn
Romania
and Black
Sea Austria Russia North Sea
Middle
East
and
Africa
New
Zealand
and
Australia Malaysia
Total
Subsidiaries
Sales to unaffiliated parties 1
Intercompany sales
Production costs
Royalties
Exploration expenses
Depreciation, amortization,
impairments and write-ups 2
Other costs 3
Results before income taxes
Income taxes 4
Results from oil and gas
production
Results of equity-accounted
investments
Subsidiaries
Sales to unaffiliated parties 1
Intercompany sales
Production costs
Royalties
Exploration expenses
Depreciation, amortization,
impairments and write-ups 2
Other costs 3
Results before income taxes
Income taxes 4
Results from oil and gas
production
Results of equity-accounted
investments
94
1,909
2,002
(500)
(250)
(53)
(553)
(93)
(1,449)
553
(88)
465
19
324
343
(82)
(62)
(45)
(119)
(29)
(336)
7
1
8
—
—
105
1,981
2,086
(509)
(267)
(58)
(420)
(51)
(1,304)
781
(138)
(194)
418
224
(86)
(79)
(33)
(114)
(21)
(333)
(109)
26
643
(83)
—
—
550
—
550
—
—
—
(91)
(429)
(520)
30
(5)
24
34
605
—
605
—
—
—
(90)
(406)
(496)
109
(21)
89
14
2019
891
379
1,270
527
822
1,348
(158)
—
(73)
(414)
(132)
(777)
493
(402)
(124)
(103)
(16)
(233)
(45)
(520)
828
(675)
91
153
—
11
2018
1,051
394
1,445
(156)
—
(50)
(409)
(102)
(717)
729
520
427
947
(72)
(21)
(26)
(129)
(7)
(255)
691
(549)
(474)
179
217
—
26
335
191
526
(98)
(65)
(24)
(199)
(20)
(407)
119
(25)
94
—
84
132
216
(50)
(25)
(8)
(64)
(10)
(157)
59
(21)
37
—
171
—
171
(30)
(16)
(18)
(73)
(13)
(149)
21
(28)
2,586
3,624
6,210
(991)
(496)
(229)
(1,681)
(761)
(4,159)
2,051
(1,222)
(7)
829
—
45
—
—
—
—
—
—
—
—
—
—
—
—
—
2,172
3,351
5,523
(872)
(392)
(175)
(1,226)
(598)
(3,263)
2,261
(1,178)
1,083
40
221
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Results of operations of oil and gas producing activities
In EUR mn
Romania
and Black
Sea Austria Russia North Sea
Middle
East and
Africa
2017
New
Zealand
and
Australia Malaysia
Total
Subsidiaries
Sales to unaffiliated parties 1
Intercompany sales
Production costs
Royalties
Exploration expenses
Depreciation, amortization,
impairments and write-ups 2
Other costs 3
Results before income taxes
Income taxes 4
Results from oil and gas
production
Results of equity-accounted
investments
95
1,698
1,792
(550)
(203)
(98)
(529)
(52)
(1,433)
359
(58)
300
—
(50)
382
333
(89)
(70)
(17)
(115)
(10)
(300)
32
(9)
24
—
56
—
56
—
—
—
(10)
(41)
(51)
5
(1)
4
(1)
810
316
1,126
(191)
—
(52)
(485)
(39)
(767)
359
(276)
83
—
301
258
559
(62)
(5)
(40)
(80)
(26)
(214)
345
(287)
58
108
116
137
253
(45)
(33)
(14)
(79)
(9)
(180)
72
(17)
55
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,329
2,791
4,118
(937)
(311)
(222)
(1,298)
(177)
(2,946)
1,173
(648)
524
107
1 Includes hedging effects; Austria Region includes hedging effects of centrally managed derivatives (2019: EUR 2 mn, 2018: EUR (219) mn, 2017:
EUR (72) mn).
2 Including exploration and appraisal
3 Includes inventory changes
4 Income taxes in North Sea and Middle East and Africa include corporation tax and special petroleum tax.
d) Oil and gas reserve quantities
Proved reserves are those quantities of oil and gas,
which, by analysis of geoscience and engineering
data, can be estimated with reasonable certainty to
be economically producible from a given date
forward, from known reservoirs, and under existing
economic conditions, operating methods, and
government regulation before the time at which
contracts providing the right to operate expire,
unless evidence indicates that renewal is reasonably
certain.
Proved developed reserves are those proved
reserves that can be expected to be recovered
through existing wells with existing equipment and
operating methods, or in which the costs of the
required equipment are relatively minor compared
with the cost of a new well and through installed
extraction equipment and infrastructure operational
at the time of the reserves estimate. It should be
reasonably certain that the required future expendi-
ture will be made to safeguard existing equipment
within the current budget.
Proved undeveloped reserves are those proved
reserves that are expected to be recovered from
new wells on undrilled acreage, or from existing
wells where a relatively major expenditure is
required for recompletion or substantial new
investment is required in order to safeguard or
replace ageing facilities.
222
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Crude oil and NGL
In mn bbl
Romania
and Black
Sea Austria
Russia North Sea
Middle
East and
Africa
New
Zealand
and
Australia Malaysia
Total
78.7
138.9
8.5
—
41.2
351.5
Proved developed and undeveloped reserves – Subsidiaries
January 1, 2017
Revisions of
previous estimates
Disposal
Extensions and
discoveries
Production
December 31, 2017
—
(27.3)
341.4
—
(4.6)
38.0
19.5
(2.3)
—
—
—
1.4
—
—
—
15.1
(27.5)
—
(18.7)
47.6
Revisions of
previous estimates
Purchases
Disposal
Extensions and
discoveries
Production
December 31, 2018
Revisions of
previous estimates
Purchases
Disposal
Extensions and
discoveries
Production
December 31, 2019
9.5
—
—
3.3
—
—
0.3
(26.8)
324.4
—
(4.3)
37.0
20.2
—
(3.4)
2.1
—
—
0.1
(26.1)
315.2
—
(4.0)
35.2
—
—
—
—
—
—
—
—
—
—
—
—
15.8
—
—
2.2
(17.1)
48.4
13.3
—
—
6.0
(16.6)
51.1
2.1
(3.5)
0.4
(11.2)
126.7
(1.8)
100.3
(2.4)
0.8
(15.3)
208.3
26.7
—
—
—
(21.8)
213.2
Proved developed and undeveloped reserves – Equity-accounted investments
December 31, 2017
December 31, 2018
December 31, 2019
—
—
—
—
—
—
Proved developed reserves – Subsidiaries
December 31, 2017
December 31, 2018
December 31, 2019
309.5
295.9
287.2
36.5
35.5
35.2
—
—
—
—
—
—
—
—
—
12.2
13.3
15.3
38.9
42.6
37.2
112.7
162.1
179.7
Proved developed reserves – Equity-accounted investments
December 31, 2017
December 31, 2018
December 31, 2019
—
—
—
—
—
—
—
—
—
—
—
—
12.2
13.3
14.9
(0.6)
—
—
(2.9)
5.0
1.0
6.3
—
—
(2.1)
10.2
6.0
—
—
—
(4.6)
11.6
—
—
—
5.0
9.1
7.8
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9.5
—
—
(2.1)
7.4
—
—
—
—
—
5.7
—
—
—
618.9
37.5
(33.4)
0.4
(64.8)
558.6
27.7
106.6
(2.4)
3.3
(65.6)
628.3
68.4
9.5
(3.4)
6.1
(75.2)
633.7
12.2
13.3
15.3
502.5
545.2
552.7
12.2
13.3
14.9
223
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Gas
In bcf
Romania
and Black
Sea Austria
Russia North Sea
Middle
East and
Africa
New
Zealand
and
Australia Malaysia
Total
Proved developed and undeveloped reserves – Subsidiaries
1,375.9
January 1, 2017
230.3
—
360.5
93.9
72.8
—
2,133.4
Revisions of
previous estimates
Disposals
Extensions and
discoveries
Production
December 31, 2017 1
Revisions of
previous estimates
Purchases
Disposals
Extensions and
discoveries
Production
December 31, 2018 1
Revisions of
previous estimates
Purchases
Disposals
Extensions and
discoveries
Production
24.1
(3.0)
23.0
—
—
(182.9)
1,214.1
—
(34.2)
219.1
77.4
—
—
8.6
—
—
3.5
(170.4)
1,124.7
—
(30.9)
196.8
58.2
—
(6.3)
10.1
—
—
2.2
(158.0)
—
(29.2)
December 31, 2019 1
1,020.7
177.8
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
92.8
(16.6)
—
(61.6)
375.0
110.3
—
—
4.9
(60.9)
429.4
76.0
—
—
7.4
(90.0)
422.8
(1.1)
(1.7)
1.4
(18.2)
74.3
17.3
—
(26.6)
0.3
(9.9)
55.5
9.6
—
—
—
(3.2)
61.9
5.5
—
—
(20.0)
58.4
27.1
166.1
—
—
(16.0)
235.6
145.4
—
—
—
(65.2)
315.8
Proved developed and undeveloped reserves – Equity-accounted investments
December 31, 2017
December 31, 2018
December 31, 2019
—
—
—
—
—
—
1,166.3
1,392.0
1,376.8
—
—
—
209.0
212.6
277.3
—
—
—
Proved developed reserves – Subsidiaries
141.7
120.3
December 31, 2017
December 31, 2018
1,071.9
1,026.6
December 31, 2019
923.0
110.2
—
—
—
159.7
410.6
407.8
29.2
7.3
57.4
58.4
202.3
203.2
—
—
—
—
—
—
—
—
—
—
—
144.4
(21.3)
1.4
(316.9)
1,941.0
240.7
166.1
(26.6)
8.8
(288.1)
2,041.9
—
351.2
—
299.3
351.2
(6.3)
—
(15.5)
9.5
(360.9)
335.7
2,334.7
—
—
—
—
—
1,375.3
1,604.7
1,654.1
1,460.9
1,767.1
124.0
1,825.5
Proved developed reserves – Equity-accounted investments
December 31, 2017
December 31, 2018
December 31, 2019
—
—
—
—
—
—
1,166.3
997.3
880.2
—
—
—
209.0
212.6
262.9
—
—
—
—
—
—
1,375.3
1,209.9
1,143.1
1 2019: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
2018: Including approximately 68.4 bcf of cushion gas held in storage reservoirs
2017: Including approximately 68.4 bcf of cushion gas held in storage reservoirs
224
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
e) Standardized measure of discounted future net
cash flows
The future net cash flow information is based on the
assumption that the prevailing economic and
operating conditions will persist throughout the
time during which proved reserves will be pro-
duced. Neither the effects of future pricing changes
nor expected changes in technology and operating
practices are considered.
Future cash inflows represent the revenues received
from production volumes, including cushion gas
held in storage reservoirs, assuming that the future
production is sold at prices used in estimating year-
end quantities of proved reserves (12 months
average price). Future production costs include the
estimated expenditures for production of the
proved reserves plus any production taxes without
consideration of future inflation. Future decommis-
sioning costs comprise the net costs associated
with decommissioning wells and facilities. Future
development costs include the estimated costs of
development drilling and installation of production
facilities. For all three categories year-end costs
without consideration of inflation are assumed.
Future income tax payments are calculated on the
basis of the income tax rate applicable in each of
the countries in which the Group operates. The
present cash value results from the discounting of
the future net cash flow at a discount rate of 10%
per year. The standardized measure does not
purport to be an estimate of the fair value of the
Group’s proven reserves. An estimate of fair value
would also take into account, amongst many other
factors, the expected recovery of reserves in excess
of proved reserves, anticipated changes in future
prices and costs as well as a discount factor
representative of the risks inherent in the produc-
tion of oil and gas.
225
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Standardized measure of discounted future net cash flows
In EUR mn
Subsidiaries and equity-accounted investments
Romania
and Black
Sea
Austria
Russia
North
Sea
Middle
East and
Africa
2019
New
Zealand
and
Australia Malaysia
Total
19,932
2,554
3,402
4,432
12,597
1,972
1,246
46,135
(9,156)
(1,704)
(2,779)
(2,196)
(3,398)
(1,785)
(461)
(21,480)
(2,081)
(370)
—
(527)
(563)
(325)
(36)
(3,901)
8,696
(819)
479
(21)
622
(125)
1,709
8,637
(959)
(5,188)
(138)
101
749
20,754
(178)
(7,191)
7,877
458
497
750
3,448
(37)
570
13,563
(3,918)
(47)
(117)
(286)
(1,025)
184
(126)
(5,334)
3,960
411
381
464
2,424
147
444
8,230
—
—
101
—
136
—
—
238
20,818
3,436
3,673
5,477
12,932
1,843
—
48,179
2018
(9,738)
(1,933)
(2,902)
(1,982)
(3,154)
(1,734)
—
(21,443)
(1,921)
(401)
—
(166)
(613)
(69)
9,158
(846)
1,102
771
3,329
9,164
(92)
(155)
(2,117)
(5,422)
40
61
—
—
—
(3,171)
23,564
(8,571)
8,312
1,010
616
1,212
3,742
101
—
14,993
(4,036)
(413)
(140)
(120)
(1,145)
166
—
(5,689)
4,275
597
476
1,092
2,597
267
—
—
166
—
152
—
—
—
9,304
318
Subsidiaries
Future cash inflows
Future production and
decommissioning costs
Future development
costs
Future net cash flows,
before income taxes
Future income taxes
Future net cash flows,
before discount
10% annual discount for
estimated timing of
cash flows
Standardized measure of
discounted future
net cash flows
Equity-accounted invest-
ments
Subsidiaries
Future cash inflows
Future production and
decommissioning costs
Future development
costs
Future net cash flows,
before income taxes
Future income taxes
Future net cash flows,
before discount
10% annual discount for
estimated timing of
cash flows
Standardized measure of
discounted future
net cash flows
Equity-accounted invest-
ments
226
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Standardized measure of discounted future net cash flows
In EUR mn
Subsidiaries and equity-accounted investments
Romania
and Black
Sea
Austria
Russia
North
Sea
Middle
East and
Africa
2017
New
Zealand
and
Australia Malaysia
Total
18,067
2,803
3,080
4,131
6,390
551
—
35,021
(9,927)
(1,856)
(2,176)
(1,922)
(1,346)
(489)
—
(17,716)
(1,811)
(381)
—
(273)
(418)
(24)
6,329
(447)
566
(43)
904
(223)
1,936
4,626
(677)
(2,929)
5,882
523
681
1,259
1,697
38
11
48
—
—
—
(2,907)
14,398
(4,308)
—
10,091
(2,643)
(119)
(167)
(192)
(714)
44
—
(3,790)
3,239
404
515
1,067
983
—
—
82
—
143
92
—
—
—
6,300
225
Subsidiaries
Future cash inflows
Future production and
decommissioning costs
Future development
costs
Future net cash flows,
before income taxes
Future income taxes
Future net cash flows,
before discount
10% annual discount for
estimated timing of
cash flows
Standardized measure of
discounted future
net cash flows
Equity-accounted invest-
ments
f) Changes in the standardized measure of discounted future net cash flows
Changes in the standardized measure of discounted future net cash flows
In EUR mn
Subsidiaries
Beginning of year
Oil and gas sales produced, net of production costs
Net change in prices and production costs
Net change due to purchases and sales of minerals in place
Net change due to extensions and discoveries
Development and decommissioning costs incurred during the period
Changes in estimated future development and decommissioning costs
Revisions of previous reserve estimates
Accretion of discount
Net change in income taxes (incl. tax effects from purchases and sales)
Other 1
End of year
Equity-accounted investments
1 Contains movements in foreign exchange rates vs. the EUR
2019
9,304
(3,942)
(1,810)
531
72
674
(398)
1,216
828
1,646
108
8,230
238
2018
6,300
(2,323)
4,183
2,706
133
669
(420)
983
550
(3,310)
(168)
9,304
318
2017
3,872
(1,365)
4,140
309
—
795
(536)
748
324
(1,780)
(207)
6,300
225
227
OMV ANNUAL REPORT 2019 / FINANCIAL STATEMENTS
Vienna, March 11, 2020
The Executive Board
Rainer Seele m.p.
Chairman of the Executive Board
Chief Executive Officer and
Chief Marketing Officer
Reinhard Florey m.p.
Chief Financial Officer
Johann Pleininger m.p.
Deputy Chairman of the Executive Board
and Chief Upstream Operations Officer
Thomas Gangl m.p.
Chief Downstream Operations Officer
228
FURTHER INFORMATION
229 – 240
230 — Consolidated Report on the Payments Made to Governments
237 — Abbreviations and Definitions
240 — Contacts and Imprint
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Consolidated Report on the Payments Made to Governments
Section 267c of the Austrian Commercial Code
Section 267c of the Austrian Commercial Code (UGB) requires that large undertakings and public
interest entities that are active in the extractive industry or logging of primary forests prepare the
following consolidated report on payments to governments. This section implements Chapter 10 of
EU Accounting Directive (2013/34/EU). The “Basis of preparation” paragraph provides information to
the reader about the contents of the report. This also includes information on the type of payment
for which disclosure is required and how OMV has implemented the regulations in the preparation
of the report.
Basis of preparation
Reporting entities
Under the requirements of the regulation, OMV
Aktiengesellschaft is required to prepare a consoli-
dated report covering payments made to govern-
ments for each financial year in relation to extractive
activities by itself and any subsidiary undertakings
included in the consolidated Group financial state-
ments.
Activities within the scope of the report
Payments made by the OMV Group (hereafter OMV)
to governments that arose from exploration, pro-
spection, discovery, development and extraction of
minerals, oils and natural gas deposits or other
materials within extractive activities are presented
in this report.
Government
A “government” is defined as any national, regional
or local authority of a country and includes a depart-
ment agency or entity undertaking that is controlled
by the government authority and includes national
oil companies.
In cases where a state-owned entity engages in activ-
ities outside of its designated home jurisdiction, then
it is not deemed to be a reportable governmental
body for these purposes and thus payments made
to such an entity in these circumstances are not
reportable.
Project definition
The regulation also requires payments to be reported
on a “project” basis as well as on a government
and governmental body basis. A project is defined
as the operational activities that are governed by a
single contract, license, lease, concession or similar
legal agreement and form the basis for payment lia-
bilities to the government. Where these agreements
as per the aforementioned definition are substantial-
ly interconnected, these agreements are treated for
the purpose of these regulations as a single project.
“Substantially interconnected” is defined as a set
of operationally and geographically integrated
contracts, licenses, leases or concessions or related
agreements with substantially similar terms that
are signed with a government, giving rise to pay-
ment liabilities. Such agreements can be governed
by a single contract, joint venture agreement,
production sharing agreement or other overarching
legal agreement.
There may be instances – for example, corporate
income taxes, where it is not possible to attribute
the payment to a single project and therefore
these payments are shown at the country level.
Cash and payments in kind
In accordance with the regulation, payments
have to be reported on a cash basis. This means
that they are reported in the period in which
they are paid and not in the period in which they
are accounted for on an accruals basis.
Refunds are also reported in the period in which
they are received and will either be offset against
payments made in the period or be shown as
negative amounts in the report.
Payments in kind made to a government are con-
verted to an equivalent cash value based on the
most appropriate and relevant valuation method for
each payment type. This can be at cost or market
value and an explanation is provided in the report
to help explain the valuation method. Where appli-
cable, the related volumes are also included in the
report.
Payment reporting methodology
The regulations require that payments are to be
reported where they are made to governments
by OMV. It is required that the report reflect the
substance of each transaction and activity. Based
on these requirements, OMV has considered its
reporting obligation as:
230
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Where OMV makes a payment directly to the
government, these payments will be reported in
full, irrespective of whether this is made in the
sole capacity of OMV or in OMV’s capacity as the
operator of a joint operation.
In cases where OMV is a member of a joint
operation for which the operator is a state-owned
entity (i.e. a government), payments made to
that state-owned entity will be disclosed where
it is possible to identify the reportable payment
from other cost recovery items.
Taxes
Taxes levied on income, production or profits of
companies are reported. Refunds will be netted
against payments and shown accordingly. Con-
sumption taxes, personal income taxes, sales taxes,
property taxes and environmental taxes are not
reported under the regulations. Although there is a
tax group in place, the reported corporate income
taxes for Austria relate entirely to the extractive
activities in Austria of OMV’s subsidiaries, with no
amounts being reported relating to OMV’s non-
extractive activities in Austria.
For host government production entitlements,
the terms of the agreement have to be consid-
ered; for the purpose of reporting in this report,
OMV will disclose host government entitle-
ments in their entirety where it is the operator.
Royalties
Royalties relating to the extraction of oil, gas and
minerals paid to a government are to be disclosed.
Where royalties are paid in kind, the value and
volume are reported.
Materiality
Payments made as a single payment or a series
of related payments that are below EUR 100,000
within a financial year are excluded from this
report.
Reporting currency
Payments made in currencies other than euros
are translated for the purposes of this report at the
average rate of the reporting period.
Payment types disclosed
Production entitlements
Under production sharing agreements (PSAs), the
host government is entitled to a share of the oil
and gas produced and these entitlements are often
paid in kind. The report will show both the value
and volume of the government’s pro duction entitle-
ment for the relevant period in barrels of oil equiv-
alent (boe).
The government share of any production entitle-
ment will also include any entitlements arising
from an interest held by a state-owned entity as
an investor in projects within its sovereign juris-
diction. Production entitlements arising from activi-
ties or interests outside of a state-owned entity’s
sovereign jurisdiction are excluded.
Dividends
In accordance with the regulations, dividends are
reported when paid to a government in lieu of
production entitlements or royalties. Dividends that
are paid to a government as an ordinary share-
holder are not reported, as long as the dividends
are paid on the same terms as that of other share-
holders.
For the year that ended December 31, 2019, OMV
had no such reportable dividend payments to a
government.
Bonuses
Bonuses include signature, discovery and pro-
duction bonuses in each case to the extent paid in
relation to the relevant activities.
Fees
These include license fees, rental fees, entry fees
and all other payments that are paid in consider-
ation for access to the area where extractive activi-
ties are performed.
The report excludes fees paid to a government
that are not specifically related to extractive activi-
ties or access to extractive resources. In addition
payments paid in return for services provided by a
government are also excluded.
Infrastructure improvements
The report includes payments made by OMV for
infrastructural improvements, such as the building
of a road or bridge that serves the community,
irrespective of whether OMV pays the amounts to
non-government entities. These are reported in
the period during which the infrastructure is made
available for use by the local community.
231
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Payments overview
The overview table below shows the relevant pay-
ments to governments that were made by OMV in
the year that ended December 31, 2019.
Of the seven payment types that are required by
the Austrian regulations to be reported upon,
OMV did not pay any dividends, bonuses or infra-
structure improvements that met the defined
accounting directive definition and therefore these
categories are not shown.
Payments overview
In EUR 1,000
Country
Austria
Kazakhstan
Madagascar
Malaysia
Norway
New Zealand
Romania
Tunisia
United Arab Emirates
Yemen
Total
Production
Entitlements
Taxes
Royalties
Fees
Total
181,017
26,600
16,625
14,968
400,178
48,040
219,433
13,807
47,425
77,138
258,155
787,076
70,326
39,705
63,634
159,952
8,878
100,952
7,340
450,787
118
1,031
3,691
26,308
2,328
6,387
31,015
99
80,313
9,874
161,164
97,044
17,656
3,691
261,998
402,506
118,061
410,400
22,784
228,690
94,352
1,657,182
No payments have been reported for Libya for the
year 2019 as OMV was not the operator.
On November 30, 2017, OMV acquired a stake
of 24.99% in OJSC Severneftegazprom (SNGP).
As SNGP is an associated company and therefore
accounted for using the equity method in OMV
Group Consolidated Financial Statements it does
not meet the definition of a reporting entity in the
context of the Austrian Commercial Code.
On January 31, 2019, OMV and Sapura Energy
Berhad closed the agreement to form a strategic
partnership. The new entity, SapuraOMV Upstream
Sdn. Bhd., and its subsidiaries are fully consoli-
dated in OMV’s Group financial statements.
232
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Payments by country
Payments by country
In EUR 1,000
Austria
Governments
Federal Ministry for Digital
and Economic Affairs
Federal Ministry of Finance
Federal Ministry for Sustainability and Tourism
Total
Projects
Lower Austria
Total
Kazakhstan
Governments
State Revenue Committee
Training centers universities
Licenced Research
and Development Organisations
Total
Projects
Tasbulat
Komsomolskoe
Total
Production
Entitlements
Taxes
Royalties
Fees
Total
70,326
26,600
26,600
70,326
26,600
26,600
70,326
70,326
70,326
26,600
118
97,044
97,044
97,044
118
118
118
118
16,625
16,625
5,967
10,658
16,625
1 Financing of various expenses with regard to university training centers as agreed within the concession agreement
2 Various expenses with regards to research and development works
Madagascar
Governments
Office des Mines Nationales
et des Industries Stratégiques
Total
Projects
Explorations
Total
247
305 1
16,872
305
479 2
1,031
479
17,656
797
234
1,031
6,764
10,892
17,656
3,691
3,691
3,691
3,691
3,691
3,691
3,691
3,691
233
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Payments by country
In EUR 1,000
Malaysia
Governments
Petroliam Nasional Berhad
Ketua Pengarah Hasil Dalem Negeri
Petronas Carigali SDN BHD
Total
Projects
Block PM323/PM329
Block PM318
Block AAKBNLP
Block SK408/SK310
Payments not attributable to projects
Total
Production
Entitlements
Taxes
Royalties
Fees
Total
94,368 1
39,705 3
24,530
86,649 2
181,017
137,137 4
43,880 5
181,017
14,968
14,968
39,705
24,907 6
14,798 7
4,904
6,504
3,448
112
14,968
1,778
26,308
20,020
748
3,089
2,451
39,705
26,308
1 Includes payments in kind for 1,706,019 bbl of crude oil valued using the average monthly price per boe
2 Includes payments in kind for 2,652,414 bbl of crude oil valued using the average monthly price per boe
3 Includes payments in kind for 1,138,911 bbl of crude oil valued using the average monthly price per boe
4 Includes payments in kind for 2,182,255 bbl of crude oil valued using the average monthly price per boe
5 Includes payments in kind for 2,176,178 bbl of crude oil valued using the average monthly price per boe
6 Includes payments in kind for 395,205 bbl of crude oil valued using the average monthly price per boe
7 Includes payments in kind for 743,706 bbl of crude oil valued using the average monthly price per boe
Norway
Governments
Oljedirektoratet
Skatteetaten
Miljodirektoratet
Total
Projects
Gulfaks
Gudrun
Norway Exploration Projects
Payments not attributable to projects
Total
New Zealand
Governments
Inland Revenue
Maritime Safety Authority
Ministry of Business and Innovation
Environmental Protection Authority
Total
Projects
Maari
Maui
Pohokura
New Zealand exploration projects
Payments not attributable to projects
Total
234
400,178
400,178
44
44
400,090
400,178
48,040
63,634
48,040
63,634
14,295
4,804
44,535
48,040
48,040
63,634
2,306
12
10
2,328
2,322
6
2,328
10
5,969
408
6,387
133
515
5,739
6,387
158,603
14,968
88,427
261,998
186,968
7,252
3,089
64,577
112
261,998
2,306
400,190
10
402,506
44
44
2,322
400,096
402,506
48,040
10
69,603
408
118,061
14,428
4,804
44,535
515
53,779
118,061
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Payments by country
In EUR 1,000
Romania
Governments
State budget
Local councils
National Agency for Mineral Resources (ANRM)
National Company of Forests
CONPET SA
National Authority for Electricity Regulation
(ANRE)
Offshore Operations Regulatory Authority
(ACROPO)
Total
Projects
Onshore production zones
Onshore Joint Ventures
Offshore Black Sea
Payments not attributable to projects
Total
Tunisia
Governments
Receveur des Finances
Receveur des Douanes
Entreprise Tunisienne d’Activités Pétrolières
Tresorerie Generale de Tunisie
Total
Projects
South Tunisia
Total
Production
Entitlements
Taxes
Royalties
Fees
Total
219,433
159,952
219,433
159,952
4,123
2,200
13,777
90
379,385
4,123
2,200
13,777
90
9,912
9,912
913
31,015
913
410,400
121,544
1,281
37,127
159,952
20,138
965
9,912
31,015
141,682
1,281
58,727
208,710
410,400
20,635
198,798
219,433
13,167
640
13,807
13,807
13,807
6,606 1
2,272
8,878
8,878 1
8,878
99
99
99
99
13,266
640
6,606
2,272
22,784
22,784
22,784
1 Includes payments in kind for 115,900 bbl of crude oil valued using the average monthly price per boe
In Tunisia where OMV is not the operator, it’s pro-
portional contribution to the host government’s
royalties for 2019 would have been EUR 1.52 mn
for 26,595 bbl of crude oil valued using the average
monthly price per boe.
235
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Payments by country
In EUR 1,000
United Arab Emirates
Governments
Abu Dhabi National Oil Company (ADNOC)
Emirate of Abu Dhabi – Finance Department
Total
Projects
Umm Lulu and SARB
United Arab Emirates exploration projects
Total
Yemen
Governments
Ministry of Oil & Minerals
Total
Projects
Block S2
Block 86
Total
Production
Entitlements
Taxes
Royalties
Fees
Total
47,425
47,425
100,952
100,952
80,313
80,313
80,313
148,377
228,690
47,425
100,952
47,425
100,952
828
79,485
80,313
149,205
79,485
228,690
77,138 1
77,138
77,138 1
77,138
7,340 2
7,340
9,874
9,874
94,352
94,352
7,340 2
7,340
6,511
3,363
9,874
90,989
3,363
94,352
1 Payments in kind for 1,354,213 BOE valued at prices set by the Yemen Crude Oil Marketing Directorate
2 Payments in kind for 128,853 BOE valued at prices set by the Yemen Crude Oil Marketing Directorate
Vienna, March 11, 2020
The Executive Board
Rainer Seele m.p.
Johann Pleininger m.p.
Reinhard Florey m.p.
Thomas Gangl m.p.
Chairman of the
Executive Board,
Chief Executive Officer
and Chief Marketing
Officer
Deputy Chairman
of the Executive Board
and Chief Upstream
Operations Officer
Chief Financial Officer
Chief Downstream
Operations Officer
236
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Abbreviations and Definitions
A
ACC
Austrian Commercial Code
ACCG
Austrian Code of Corporate Gov-
ernance
AGM
Annual General Meeting
B
bbl
Barrel (1 barrel equals
approximately 159 liters)
bbl/d
Barrels per day
bcf
Billion standard cubic feet
(60 °F/16 °C)
bcm
Billion standard cubic meters
(32 °F/0 °C)
bn
Billion
boe
Barrel of oil equivalent
boe/d
Barrel of oil equivalent per day
C
CAPEX
Capital Expenditure
capital employed
Equity including non-controlling
interests plus net debt
cbm
Standard cubic meters
(32 °F/0 °C)
cf
Standard cubic feet
(60 °F/16 °C)
CCS/CCS effects/inventory
holding gains/(losses)
Current Cost of Supply; inven-
tory holding gains and losses
represent the difference between
the cost of sales calculated using
the current cost of supply and
the cost of sales calculated using
the weighted average method
after adjusting for any changes
in valuation allowances in case
the net realizable value of the
inventory is lower than its cost.
In volatile energy markets, mea-
surement of the costs of petro-
leum products sold based on
historical values (e.g. weighted
average cost) can have distort-
ing effects on reported results
(Operating Result, net income,
etc.). The amount disclosed as
CCS effect represents the differ-
ence between the charge to the
income statement for inventory
on a weighted average basis
(adjusted for the change in valu-
ation allowances related to net
realizable value) and the charge
based on the current cost of
supply. The current cost of supply
is calculated monthly using data
from supply and production sys-
tems at the Downstream Oil lev-
el
CEE
Central and Eastern Europe
CEGH
Central European Gas Hub
CGU
Cash generating unit
Clean CCS Operating Result
Operating Result adjusted for
special items and CCS effects.
Group clean CCS Operating
Result is calculated by adding
the clean CCS Operating Result
of Downstream Oil, the clean
Operating Result of the other
segments and the reported con-
solidation effect adjusted for
changes in valuation allowances,
in case the net realizable value
of the inventory is lower than its
cost
Clean CCS EPS
Clean CCS Earnings Per Share
is calculated as clean CCS net
income attributable to stock-
holders divided by weighted
number of shares
Clean CCS net income
attributable to stockholders
Net income attributable to stock-
holders, adjusted for the after
tax effect of special items and
CCS
Clean CCS ROACE
Clean CCS Return On Average
Capital Employed is calculated
as NOPAT (as a sum of current
and last three quarters) adjusted
for the after-tax effect of special
items and CCS, divided by aver-
age capital employed (%)
Co&O
Corporate and Other
E
ECL
Expected credit losses
EPS
Earnings Per Share;
net income attributable to stock-
holders divided by total weighted
average shares
237
K
N
kbbl/d
Thousand barrels per day
n.a.
Not available
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
EPSA
Exploration and Production
Sharing Agreement
equity ratio
Equity divided by balance sheet
total, expressed as a percentage
EU
European Union
EUR
Euro
F
kboe
Thousand barrels of oil
equivalent
kboe/d
Thousand barrels of oil
equivalent per day
km2
Square kilometer
FVOCI
Fair value through other
comprehensive income
FVTPL
Fair value through the statement
of profit or loss
KPI
Key Performance Indicator
KStG
Austrian Corporate Income
Tax Act
L
LNG
Liquefied Natural Gas
LTIR
Lost-Time Injury Rate
per million hours worked
M
min
Minute
mn
Million
MPPH
Mubadala Petroleum
and Petrochemicals Holding
Company L.L.C
MW
Megawatt
MWh
Megawatt hour
FX
Foreign exchange
G
G2P
Gas-to-power
GDP
Gross Domestic Product
gearing ratio
Net debt divided by equity,
expressed as a percentage
H
HSSE
Health, Safety, Security, and
Environment
I
IASs
International Accounting
Standards
IFRSs
International Financial
Reporting Standards
238
NCI
Non-controlling interests
n.m.
Not meaningful
net assets
Intangible assets, property, plant
and equipment, equity-accounted
investments, investments in oth-
er companies, loans granted to
equity-accounted investments,
total net working capital, less
provisions for decommissioning
and restoration obligations
net debt
Interest-bearing debts including
bonds and finance lease
liabilities less liquid funds
(cash and cash equivalents)
net income
Net operating profit or loss
after interest and tax
NGL
Natural Gas Liquids; natural
gas that is extracted in liquid
form during the production
of hydrocarbons
NOK
Norwegian krone
NOPAT
Net Operating Profit After Tax;
Net income
+ Net interest related to
financing
– Tax effect of net interest
related to financing
NOPAT is a KPI that shows the
financial performance after tax,
independent of the financing
structure of the company.
NZD
New Zealand dollar
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
O
OCI
Other comprehensive income
OECD
Organisation for Economic
Cooperation and Development
RON
New Romanian leu
RRR
Reserve Replacement Rate;
total changes in reserves
excluding production, divided by
total production
ÖBAG
Österreichische Beteiligungs AG
RUB
Russian ruble
P
S
payout ratio
Dividend per share divided by
earnings per share, expressed
as a percentage
Pearl
Pearl Petroleum Company
Limited
Q
Q1, Q2, Q3, Q4
First, second, third, fourth
quarter of the year
R
ROACE
Return On Average Capital
Employed; NOPAT divided by
average capital employed
expressed as a percentage
ROE
Return On Equity; net income/
loss for the year divided by
average equity, expressed as a
percentage
ROFA
Return On Fixed Assets, EBIT
divided by average intangible and
tangible assets expressed as a
percentage
sales revenues
Sales excluding petroleum
excise tax
Special items
Special items are expenses and
income reflected in the financial
statements that are disclosed
separately, as they are not part
of underlying ordinary business
operations. They are being
disclosed separately in order to
enable investors to better under-
stand and evaluate OMV Group’s
reported financial performance
T
t
Metric ton
toe
Metric ton of oil equivalent
TSR
Total Shareholder Return
TWh
Terawatt hour
U
UAE
United Arab Emirates
USD
US dollar
239
OMV ANNUAL REPORT 2019 / FURTHER INFORMATION
Contacts and Imprint
OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna, Austria
Tel. + 43 1 40440-0
info@omv.com
www.omv.com
OMV Petrom S.A.
Strada Coralilor 22, sector 1
013329 Bucharest, Romania
Tel. + 40 372 161930
Fax + 40 372 868518
investor.relations.petrom@petrom.com
Investor Relations
Florian Greger
OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna, Austria
Tel. + 43 1 40440-21600
Fax + 43 1 40440-621600
investor.relations@omv.com
Publisher
OMV Aktiengesellschaft, Vienna
Concept and design
klar. & Erdgeschoss & Schreibkraft, Vienna
Photos
Andreas Jakwerth
Pages 24/25: Keith Finnerty
Notes
Produced inhouse with FIRE.sys
240
Further publications
OMV Factbook
www.omv.com/factbook
OMV Sustainability Report
www.omv.com/sustainability-report
Notes:
Figures in the tables and charts may not add up due to
rounding differences. Differences between percentages are
displayed as percentage points throughout the document.
In the interest of a fluid style that is easy to read,
non-gender-specific terms have been used in the notes
chapter of this annual report.
Disclaimer regarding forward-looking statements
This report contains forward-looking statements. Forward-
looking statements usually may be identified by the use of
terms such as “outlook,” “believe,” “expect,” “anticipate,”
“intend,” “plan,” “target,” “objective,” “ estimate,” “goal,” “may,”
“will” and similar terms, or by their context. These forward-
looking statements are based on beliefs, estimates and
assumptions currentlyheldbyandinformationcurrently
availableto OMV.Bytheirnature,forward-lookingstate-
ments are subject to risks and uncertainties, both known
and unknown, because they relate to events and depend on
circumstances that will or may occur in the future and are
outside the control of OMV. Consequently, the actual results
may differ materially from those expressed or implied by the
forward-looking statements. Therefore, recipients of this
report are cautioned not to place undue reliance on these
forward-looking statements. Neither OMV nor any other
person assumes responsibility for the accuracy and
completenessof anyoftheforward-lookingstatements
contained in this report. OMV dis -
claimsanyobligationanddoesnotintendto updatethese
forward-looking statements to reflect actual results, revised
assumptions and expectations, and future developments
and events. This report does not contain any recommenda-
tion or invitation to buy or sell securities in OMV.
241
OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna
Austria
Tel +43 1 40440-0
www.omv.com
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