Annual Report 2021
The energy for a better life.
At a Glance
Five-year summary
Sales revenues1
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 Result2
Clean CCS net income2
Clean CCS net income attributable to stockholders of the parent2
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
2021
2020
2019
2018
2017
35,555
5,065
4,870
(2,066)
2,804
2,093
5,961
3,710
2,866
16,550 23,461
3,582
3,453
(1,306)
2,147
1,678
3,536
2,121
1,624
1,050
875
603
1,478
1,258
1,686
1,026
679
22,930
3,524
3,298
(1,305)
1,993
1,438
3,646
2,108
1,594
20,222
1,732
1,486
(634)
853
435
2,958
2,035
1,624
Balance sheet total
Equity
Net debt excluding leases
Net debt including leases
Average capital employed
Cash flow from operating activities excl. net working capital effects
Cash flow from operating activities
Capital expenditure
Organic capital expenditure3
Free cash flow before dividends
Organic Free cash flow before dividends4
Return On Average Capital Employed (ROACE)
Clean CCS ROACE2
Return On Equity (ROE)
Equity ratio
Gearing ratio exluding leases
Leverage ratio
Earnings Per Share (EPS)
Clean CCS EPS2
Cash flow per share5
Dividend Per Share (DPS)6
Payout ratio
Employees as of December 31
Production
Production cost
Fuels and other sales volumes Europe7
Natural gas sales volumes
Polyolefin sales volumes7
Utilization rate steam crackers Europe7
Lost-Time Injury Rate (LTIR)
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
53,798
21,996
4,771
5,962
29,366
49,271 40,375
19,899 16,863
3,632
4,686
21,555 19,923
8,130
9,347
36,961
15,342
1,726
2,014
16,850
31,576
14,334
1,713
2,005
15,550
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
in %
in %
in %
in %
in %
8,897
7,017
2,691
2,650
5,196
4,536
10
13
13
41
22
21
2,786
3,137
6,048
1,884
(2,811)
1,273
4,264
4,056
4,916
2,251
(583)
2,119
4,223
4,396
3,676
1,893
1,043
2,495
8
5
9
40
41
32
11
11
13
42
22
22
12
13
14
42
11
12
3,871
3,448
3,376
1,636
1,681
1,862
6
14
6
45
12
12
in EUR
in EUR
in EUR
in EUR
in %
6.40
8.77
21.47
2.30
36
22,434
3.85
2.08
9.60
1.85
48
5.14
4.97
12.42
1.75
34
25,291 19,845
4.40
4.88
13.46
1.75
40
20,231
1.33
4.97
10.56
1.50
113
20,721
in kboe/d
in USD/boe
in mn t
in TWh
in mn t
in %
in mn hours
worked
486
6.67
16
196
5.93
90
463
6.58
15
164
5.95
73
487
6.61
19
137
5.59
93
427
7.01
18
114
5.27
94
348
8.79
18
113
5.06
86
0.57
0.32
0.34
0.30
0.34
1 Sales revenues excluding petroleum excise tax
2 Adjusted for special items and CCS effects; further information can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements
3 Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure excluding acquisitions and contingent considerations.
4 Organic free cash flow before dividends is cash flow from operating activities less cash flow from investing activities excluding disposals and material inorganic cash flow components
(e.g., acquisitions)
5 Cash flow from operating activities
6 2021: as proposed by the Executive Board and confirmed by the Supervisory Board, subject to confirmation by the Annual General Meeting 2022
7 As of Q1/21 the Downstream segment was split in Refining & Marketing and Chemicals & Materials. For comparison only, figures for the previous years are shown in the new structure.
Fields of Activity
Exploration & Production
In Exploration & Production, OMV explores, develops, and produces
oil and gas in its four core regions of Central and Eastern Europe,
the Middle East and Africa, the North Sea, and Asia-Pacific and
produces gas in a JV in Russia1. In 2021, daily production was 486
kboe/d (equal to 177.5 mn boe). While natural gas accounted for
59% of total production, oil and NGL flows made up 41%. At year-
end 2021, proven reserves amounted to 1,295 mn boe.
Central and
Eastern Europe2
Middle East
and Africa
North Sea
Asia-Pacific2
Russia1
Austria
Romania
Kurdistan Region of Iraq
Libya
Tunisia
United Arab Emirates
Yemen
Exploration & Production Presence2
Norway
Austria
Tunisia
Romania
Kurdistan
Region
of Iraq
Libya
Norway
Malaysia
New Zealand
Russia1
Production and oil and gas split
In %
49
149
kboe/d
51
86
kboe/d
18
82
Central and
Eastern Europe
Middle East
and Africa
47
21
89
kboe/d
53
67
kboe/d
79
59
North Sea
Asia-Pacific
96
kboe/d
Russia
100
41
486
kboe/d
Total hydrocarbon
production
Yemen
United
Arab
Emirates
Malaysia
Oil and NGL
Natural gas
New Zealand
Central and Eastern Europe
Middle East and Africa
North Sea
Asia-Pacific
Russia1
1 OMV decided to not pursue any future investments in Russia. As a result, Russia is no longer considered one of OMV's core regions.
2 In addition, OMV holds participations in exploration licenses in Bulgaria, Georgia, Australia, and Mexico.
Refining & Marketing
OMV’s Refining & Marketing business refines and markets fuels
and natural gas. It operates three inland refineries in Europe and
holds a strong market position in the areas where its refineries are
located, serving a strong branded retail network and commercial
customers. In the Middle East, it owns 15% of ADNOC Refining
and ADNOC Global Trading. The processing capacity of its
refineries amounted to around 500 kboe/d.
Fuels & Gas
Fuels
Austria
Germany1
Hungary
Romania
Refining & Marketing presence
Bulgaria
Czech Republic
Moldova
Serbia
Slovakia
Slovenia2
United Arab Emirates
Netherlands
Belgium
Germany1
303
Austria
434
Slovenia2
119
Serbia
Bulgaria
63
94
Gas
Belgium
Netherlands
Turkey
141
Czech
Republic
100
Slovakia
204
Hungary
561
Romania
69
Moldova
OMV
refineries
Number of
filling stations
Gas-fired
power plant
LNG
terminal
Equity
gas
CEGH
Gas
storage
Turkey
United
Arab
Emirates
1 OMV has agreed to sell 285 filling stations to EG Group. The closing of this transaction is expected in 2022.
2 OMV has agreed to sell its business in Slovenia to MOL Group. The closing of this transaction is expected in 2022.
Chemicals & Materials
In Chemicals & Materials, OMV, through its subsidiary Borealis,
is one of the world’s leading providers of advanced and circular
polyolefin solutions with total polyolefin sales of 5.9 mn t in 2021,
and a European market leader in base chemicals, fertilizers and
plastics recycling. The company supplies services and products to
customers worldwide through Borealis and its two important joint
ventures: Borouge (with ADNOC, based in the UAE and Singapore)
and Baystar™ (with TotalEnergies, based in the US).
Chemicals & Materials presence1
United Kingdom
Germany
Austria
France
Spain
Finland
Sweden
Netherlands
Belgium
Russia
Poland
Czech Republic
Slovakia
Hungary
Romania
Croatia
Serbia
Bulgaria
Italy
Greece
Turkey
United
States
Mexico
Morocco
Egypt
China
Japan
South
Korea
Singapore
Vietnam
Malaysia
Thailand
India
Indonesia
South Africa
United
Arab
Emirates
Colombia
Brazil
Chile
Argentina
1 Chemicals & Materials presence comprises OMV’s petrochemicals presence as well as the production plants, sales offices, and logistics hubs of Borealis and Borouge.
FINANCIAL CALENDAR
April 8, 2022 Trading Update Q1 2022
April 29, 2022 Results January–March 2022
July 8, 2022 Trading Update Q2 2022
July 28, 2022 Results January–June and Q2 2022
October 10, 2022 Trading Update Q3 2022
October 28, 2022 Results January–September and Q3 2022
▸ This financial calendar represents only
an extract of the planned dates in 2022.
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/2021
▸ The PDF version of this annual report can be found here:
www.omv.com/annual-report-2021
6
Contents
9 1 — TO OUR SHAREHOLDERS
10
14
16
20
Interview with the Chairman of the Executive Board
OMV Executive Board
Report of the Supervisory Board
OMV on the Capital Markets
25 2 — DIRECTORS’ REPORT
26
27
35
40
43
46
56
62
68
75
76
80
About OMV
Strategy
Sustainability
Health, Safety, Security, and Environment
Employees
OMV Group Business Year
Exploration & Production
Refining & Marketing
Chemicals & Materials
Outlook
Risk Management
Other Information
85 3 — CONSOLIDATED CORPORATE GOVERNANCE REPORT
97 4 — CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
98
108
109
110
112
114
115
Auditor’s Report
Consolidated Income Statement for 2021
Consolidated Statement of Comprehensive Income for 2021
Consolidated Statement of Financial Position as of December 31, 2021
Consolidated Statement of Changes in Equity for 2021
Consolidated Statement of Cash Flows for 2021
Notes to the Consolidated Financial Statements
227 5 — FURTHER INFORMATION
228
236
239
Consolidated Report on the Payments Made to Governments
Abbreviations and Definitions
Contacts and Imprint
7
8
TO OUR SHAREHOLDERS
9 – 24
10 — Interview with the Chairman of the Executive Board
14 — OMV Executive Board
16 — Report of the Supervisory Board
20 — OMV on the Capital Markets
OMV ANNUAL REPORT 2021 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
“Transformation through Innovation”
A conversation with Alfred Stern, Chairman of the Executive Board and CEO of OMV
▸ More information is available in the video by Alfred Stern in our online report
www.reports.omv.com/en/annual-report/2021
Mr. Stern, we are conducting this interview in difficult and sorrowful times. As we speak, war is being
waged in Ukraine.
This saddens me and our employees as well. The war in Ukraine is a tragic and threatening situation that means
great suffering for many people. Our deepest sympathy goes out to all who are directly or indirectly victims of this
war. We reject all forms of violence and war and are deeply convinced that freedom and wellbeing for people can
only exist in peace.
OMV has had business relations with Russia for a long-standing period. How are you dealing with it now?
We have carefully considered our involvement in Russia and then made a clear decision that from now on Russia
is no longer a core region for OMV. This means that we will no longer pursue any future investments in Russia.
For this reason, we have also immediately ended all negotiations regarding a potential participation in blocks
4A/5A of the Achimov-Formation in the Urengoy gas and condensate field. Furthermore, we have initiated a strate-
gic review of our existing stake in the Yuzhno Russkoye gas field in Western Siberia. Here we will consider all op-
tions, including a divestment or exit. In addition we recognize for this asset, as well as for our receivables from
Nord Stream 2 AG, a value adjustment.
Mr. Stern, if we turn to the topic of further development and take a look into the future. The mission of
companies like OMV has always been to supply energy. What is OMV’s future mission?
OMV will continue to develop and grow, and in doing so, pursue the clear goal of becoming a leader in sustainable
fuels and chemicals as well as high-quality materials. That means that the OMV of tomorrow will be an innovative
company that provides people with the circular resources needed for a better life in these modern times. And even
further in the future, OMV will be a company with net-zero greenhouse gas emissions, a goal we aim to achieve by
2050 at the latest.
To restate the question, how long can OMV afford to keep pursuing the same business model?
Not a single day, if you look at it rationally. Even though we cannot radically change our business model immedi-
ately, we must act today and push it in the right direction. The new OMV Strategy 2030 is our first step toward
more sustainability. We will implement this strategy quickly so that we can benefit optimally from the opportunities
offered by the energy and sustainability transition. I am certain that this transformation of our Company will meet
with positive feedback from shareholders, the capital market, customers, and, last but not least, our employees.
If you first look back and then into the future – what kind of OMV do you see?
Looking back, I see a successful company that has performed very well over many decades in the market and has
also prepared very well for the future recently. Looking forward, I see an innovative company that is actively driv-
ing the shift toward more sustainability. I see a company that provides circular resources and products essential
for our prosperity and a better life for all of us.
10
OMV ANNUAL REPORT 2021 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
»
The OMV of tomorrow
will be an innovative
company that provides
people with the circular
resources needed for a
better life in these
modern times.
ALFRED STERN
Chairman of the Executive Board
What does “very well prepared for the future” mean specifically?
The past fiscal year underscores the financially and technologically strong position we have built. In 2021, we gen-
erated record earnings. This was thanks to first-rate performance by the Exploration & Production business, to sta-
ble earnings in Refining & Marketing, and especially to robust growth in Chemicals & Materials. The figures speak
for themselves: We are taking the right approach. In addition, we consistently carried out the divestment program
we announced in connection with the Borealis acquisition. We have successfully sold our shares in Gas Connect
Austria, the E&P business in Kazakhstan, oil fields in Malaysia, and our 25-percent interest in the Wisting oil field
in Norway. With this move and the support of our strong results, we were able to reduce our leverage to 22 per-
cent in the past year.
And OMV’s technological strength?
At its core, it is our employees’ extensive knowledge of working with hydrocarbons as well as renewable raw mate-
rials and recyclates. We are able to find the best solutions along the entire value chain, a major asset for the fu-
ture. And, to name just one innovation, OMV and Borealis were early adopters with the foresight to begin gaining
experience in the mechanical and chemical recycling of plastics. This enabled us to establish a very strong jump-
ing-off point for a future leadership position in the circular economy, which will play a key role going forward. The
circular economy makes it possible to protect the environment and continue to enjoy the advantages of high-qual-
ity plastics at the same time. And that is precisely what will be needed. After all, plastics are essential, particularly
during the energy transition. Think about heavy-duty cables, solar panels and wind turbines, and capacitors and
semiconductors – none of these would be possible without high-quality plastics. It is exactly for this purpose that
we offer tailored solutions as a global technological leader in this field.
How would you describe OMV in 2030 in one sentence? OMV is ...
... a leader in innovative sustainable fuels, chemicals, and materials, heading toward net zero and leveraging the
energy transition as a business opportunity for sustained growth. In the area of sustainable fuels and chemicals as
well as high-quality materials and the circular economy in particular, we will be entering a new successful phase of
our company history and acting as a role model for transformation in the industry.
OMV must also have a vision for 2040.
Yes, that is correct. By 2040, we hope to have established a sustainable, circular business model in the Group.
And we are thinking beyond that as well. By 2050, we want to achieve net-zero greenhouse gas emissions. That
also means that we are pursuing the goal of no longer producing oil and gas as an energy source by 2050.
11
OMV ANNUAL REPORT 2021 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
How do you envision the road to OMV 2030?
Of course, this will mean changes in all of our businesses. In Exploration & Production, we have to incrementally
move toward lower-carbon business activities. That means we will increase the share of natural gas in our portfolio
as a transition fuel, but at the same time pursue sustainable energy solutions in which we can leverage our exper-
tise and assets. These include geothermal energy as well as technologies for storing and utilizing CO2 and other
gases.
OMV already has refineries that count among the most advanced and efficient in Europe. What direction
will they take?
Our motto is “sustainable fuels.” In the Refining & Marketing business, we will first focus more intensely on using
biogenic components in fuels and for chemical feedstock. We will also work on synthetic fuels and raw materials in
the longer term. As of 2023, a pilot plant at our Schwechat refinery in Austria will use a catalyst we developed in-
house to produce propanol from formerly unused glycerin, a waste product. We already supply wholesale custom-
ers with EcoMotion diesel, which reduces greenhouse gas emissions by 20 to 25 percent thanks to its renewable
content. Along with Austrian Airlines, we will cut carbon emissions by more than 80 percent with sustainable jet
fuel. These are all key steps on our path toward a more sustainable business model.
And in Chemicals & Materials?
After expanding the crackers at our Burghausen site in Germany, we will produce additional ethylene and propyl-
ene for the Bavarian Chemical Triangle starting in the third quarter of 2022. We are already successfully operating
a new ISO C4 plant in Burghausen, in which we manufacture high-purity isobutene for the production of adhesives
and vitamin C. Our propane dehydration plant in Kallo, Belgium, in which Borealis is investing around EUR 1 bil-
lion, will go online next year with a capacity of 750,000 tons.
We also see strong growth in Chemicals & Materials internationally in the future. This year, Borealis plans to work
with TotalEnergies to increase the polyethylene capacity of our US joint venture Baystar to 1 million tons. In the
United Arab Emirates, we were able to announce the successful commissioning of our fifth polypropylene plant
recently. Borouge 4, a further project of our subsidiary Borealis and our partner ADNOC, involves investments of
USD 6.2 billion in a polyolefin production complex. The facility has an annual capacity of 1.4 million tons. This
plant aims to meet the growing demand for energy, infrastructure, and advanced packaging in the Middle East,
Africa, and Asia by the end of 2025.
OMV’s future in many parts of the world will depend on chemicals. Is that realistic?
We have given this a lot of thought and taken this road intentionally. Everything we have seen so far confirms the
correctness of this decision. This approach is a logical expansion of our value chain to include the opportunity to
use our entire range of expertise to help shape a sustainable circular economy. We will expand geographically and
add new, appealing products to our portfolio. The extent to which OMV is profiting from developments in the chem-
ical market is demonstrated not least by our recent results.
The factory of the future will look different than a chemical factory does today. It will close the raw material loop
and will therefore require a combination of various process technologies. Many of these will be a combination of
what we are already doing today – in our refineries on the one hand and in our chemical production facilities on
the other. For this reason, I am confident that we are well prepared for the future and will be able to utilize our ex-
pertise optimally to our advantage.
12
OMV ANNUAL REPORT 2021 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
In technological terms, plastics recycling is in its infancy. However, the fight against plastic waste is likely
to be increasingly fierce. How will you approach this?
As for the technology, we are at the forefront in mechanical as well as chemical recycling, including fields such as
Design for Recycling. The early interest shown by OMV and Borealis in this topic gives us a clear advantage out of
the blocks in various ways, such as access to plastic waste. It is also clear that we cannot let up. For this reason,
we are making every effort to work with partners to develop these technologies and processes and making sub-
stantial investments to do so.
In terms of chemical recycling, OMV will convert 16,000 tons of plastic waste per year into valuable synthetic feed-
stock for the chemical industry at a ReOil® demo plant at the Schwechat refinery starting in 2023. The next step
will kick off in 2026 with a commercially viable, full-scale industrial plant with a processing capacity of
200,000 tons. We already produce some 100,000 tons of circular materials and chemicals.
According to research, the circular plastics business will have a market potential of USD 40 to 60 billion
by the middle of this decade. Will OMV capture a healthy portion of this market?
The circular economy is one of the main pillars of our future business model. At the start, it will only represent a
small fraction of our total production volume. However, the actual success of innovations cannot be seen until the
future, of course. I am optimistic that OMV can and will play a key role in the supply of raw materials if the market
and general economic conditions develop as expected and we diligently pursue our goals.
What you are describing might well be the most far-reaching change in OMV’s history. How will you make
this shift happen? And what does it mean for OMV’s employees?
Naturally, this will result in some changes and challenges for our employees but will also provide many opportuni-
ties for development. We cannot forget that OMV has always continued to develop in recent decades and has al-
ways been open to progress. We will create the framework necessary and implement the measures required so
that everyone who wants to can also take advantage of these opportunities.
Let me again come back to our results from the past fiscal year. Our employees generated these absolute record-
high earnings under never-before-seen conditions. The effects of the COVID-19 pandemic have put enormous
strain on each and every one of us, but we nonetheless delivered this impressive performance. We can continue
to achieve great things with this team in the future. I have already expressed my thanks for this on many occa-
sions – let me do it here once again.
What factors will decide OMV’s success going forward?
Success always comes down to several factors. This certainly includes the Company’s financial strength. But the
key factor is innovation. And for this, we need our employees, their creativity, and their openness to looking at
change and seeing opportunities for new businesses.
Vienna, March 9, 2021
Alfred Stern m.p.
13
OMV Executive Board
Johann Pleininger
Deputy Chairman of the Executive Board
and Executive Officer
Exploration & Production
Alfred Stern
Chairman of the Executive Board,
Chief Executive Officer and
Executive Officer Chemicals & Materials
Elena Skvortsova
Executive Officer Marketing & Trading
Reinhard Florey
Chief Financial Officer
Martijn van Koten
Executive Officer Refining
OMV ANNUAL REPORT 2021 / REPORT OF THE SUPERVISORY BOARD
Dear Shareholders,
The past year was marked by numerous uncertainties despite economic growth. The societal effects of new coro-
navirus variants as well as supply bottlenecks and higher raw material costs put somewhat of a damper on the
global economic upswing, particularly in the second half of the year. In addition we faced increasing geopolitical
tensions which unfortunately culminated in the invasion of Ukraine in the first quarter of 2022.
In this challenging environment, the strength and robustness of OMV’s diversified portfolio and the advantages of
the expanded value chain including chemical products once again proved their value, and we were able to gener-
ate record earnings. This is only partially due to the rise in oil and gas prices. Well over half of this result stems
from the Refining & Marketing and especially the Chemicals & Materials businesses, which do not profit from high
oil and gas prices. At its core, this success is attributable to the commitment and expertise of our employees, who
optimally leveraged the many and varied market conditions – for oil and gas as well as our refinery and chemical
products.
This remarkable success and OMV’s still extremely stable financial position are also reflected in the proposed pro-
gressive dividend of EUR 2.30 per share, by means of which you, dear shareholders, partake in OMV’s suc-
cesses.
In the following, I would like to inform you about the Supervisory Board’s work during the 2021 financial year:
Composition of the Executive Board and Supervisory Board
On April 1, 2021, the reorganization of OMV Group approved by the Supervisory Board in February 2021 took ef-
fect. This entailed the former Refining & Petrochemical Operations business being divided into Refining on the one
hand and Chemicals & Materials on the other hand. The Executive Board team welcomed a new member on April
1, 2021: Alfred Stern, responsible for Chemicals & Materials, including our circular economy activities. He joins
OMV as a manager with extensive international experience in the chemical industry who not only ensured the ex-
cellent market positioning of Borealis’ polyolefin business but also furthered the company’s circular economy ef-
forts in recent years. Thomas Gangl, OMV’s Executive Board member responsible for Refining & Petrochemical
Operations, took the position of CEO of Borealis AG as of April 1, 2021.
The Refining business had been under the interim leadership of Elena Skvortsova, Executive Officer Marketing &
Trading, up to June 30, 2021. On July 1, 2021, Martijn van Koten took over this position as Executive Board mem-
ber. Van Koten possesses extraordinarily broad international management expertise in the refinery and chemical
business and, along with the Executive Board team, will pursue the transformation of OMV’s refinery activities.
On April 26, 2021, former Executive Board Chairman and CEO, Rainer Seele, announced that he would not ex-
tend his Executive Board contract past June 30, 2022.
In its meeting on June 1, 2021, the Supervisory Board appointed Alfred Stern as his successor in the position of
Executive Board Chairman and CEO effective September 1, 2021. Rainer Seele stepped down on August 31,
2021, by mutual agreement. On behalf of the entire Supervisory Board, I would like to thank Rainer Seele for his
service to OMV and the further development of the Company. Rainer Seele and his Executive Board team were
instrumental in reorganizing OMV’s portfolio, significantly increasing the Company’s profitability, and therefore put-
ting in place good conditions for the transformation of OMV. At the same time, he spearheaded the Borealis deal,
taking the first major, strategic step in this transformation process. In recruiting Alfred Stern, we succeeded in
bringing on board as our new Executive Board Chairman and CEO an international chemical industry executive
with substantial experience and knowledge in circular economy innovation.
In 2021, some changes were also made to the Supervisory Board. Mansour Mohamed Al Mulla stepped down ef-
fective at the end of the Annual General Meeting on June 2, 2021, and Saeed Al Mazrouei was elected his suc-
cessor serving as Second Deputy Chairman of the Supervisory Board. Following Thomas Schmid’s resignation,
Christine Catasta was elected to the Supervisory Board at the extraordinary General Meeting on September 10,
2021. She holds the position of First Deputy Chairwoman of the Supervisory Board.
There were changes on the part of the employee representatives in 2021 as well. Effective January 18, 2021, Ni-
cole Schachenhofer and Hubert Bunderla were nominated as new members of the Supervisory Board. Herbert
Lindner stepped down as of August 31, 2021, and Alexander Auer was appointed to the Supervisory Board as his
successor as of September 1, 2021.
16
OMV ANNUAL REPORT 2021 / REPORT OF THE SUPERVISORY BOARD
»
In this challenging economic
environment, the strength
and robustness of OMV’s
diversified portfolio and the
advantages of the expanded
value chain including
chemical products once
again proved their value.
MARK GARRETT
Chairman of the Supervisory Board
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 EUR 2 billion divestment program begun by OMV in 2021 continued successfully in this year: The program
involves the sale of our shares in Gas Connect Austria GmbH, our retail and commercial business in Slovenia, and
our filling stations in Germany, as well as the sale of our E&P business in Kazakhstan, oil fields in Malaysia, and
our 25-percent interest in the offshore Wisting oil field in Norway. The divestment of the Wisting oil field under-
scores OMV Exploration & Production GmbH’s strategy of increasing the share of gas over oil to reduce the car-
bon intensity of the product portfolio. Moreover, the final investment decision was made in 2021 to build a chemi-
cal recycling demo plant based on OMV’s patented ReOil® technology. This was another step in the development
of a full-scale commercial plant and an important milestone toward a circular economy and reducing CO2 emis-
sions.
In December, the Supervisory Board and Executive Board of OMV agreed the basic points of the Strategy 2030.
The details are being worked out and will be presented in the first quarter of 2022. The strategy’s aim is for OMV
to continue to grow as an integrated energy, fuel, and chemical company while becoming more sustainable and
focusing on the circular economy, ultimately achieving net-zero emissions by 2050.
On November 1, 2021, the Supervisory Board established a new Sustainability and Transformation Committee.
The Sustainability and Transformation Committee will hold its first formal meeting in 2022 and address all issues
relevant to ESG considerations, particularly the challenges of climate change. The Committee serves to support
and monitor OMV’s transformation process and transition to a more sustainable business model.
The Supervisory Board, and especially I as Chairman of the Supervisory Board, attach great importance to an in-
tensive exchange with investors. In November and December, I therefore worked with Investor Relations to hold a
number of discussions with our major institutional investors and a proxy advisor as part of our governance road-
show, which took place virtually this time due to COVID-19.
As in the past, trainings specifically designed for the Supervisory Board took place in 2021. The Supervisory
Board’s annual self-assessment, based on surveys, was supported by an external consultant. The results are
used to help decide which issues and activities to prioritize in 2022.
17
OMV ANNUAL REPORT 2021 / REPORT OF THE SUPERVISORY BOARD
Activities of Supervisory Board committees
The Presidential and Nomination Committee placed particular focus on the preparation of the decisions regard-
ing the Executive Board mandates for the Chemicals & Materials and Refining businesses, and the position of Ex-
ecutive Board Chairman and CEO. Furthermore, it focused on the issue of long-term Executive Board succession
planning.
In 2021, the Remuneration Committee handled issues concerning the appropriateness of the amount and struc-
ture of Executive Board remuneration in line with regulatory requirements and market practice. In particular, the
contract terms for the new Executive Board members and separation agreements with the Executive Board mem-
bers stepping down were discussed and agreed.
Shareholders were for the first time presented the Remuneration Report revised to reflect the new provisions of
stock corporation law for approval at the 2021 Annual General Meeting. Since 2020, non-financial/ESG compo-
nents have been included in the variable remuneration system; their weighting was increased further in 2021. The
Remuneration Report presents an even more transparent overview of Executive Board and Supervisory Board
remuneration than before, and includes a comparison with the relative development of the Company’s income and
employee salaries.
In 2021, the Audit Committee looked at important topics related to accounting processes, the internal audit pro-
gram, risk management, and the Group’s internal control system. The current auditor of OMV Group, Ernst &
Young Wirtschaftsprüfungsgesellschaft m.b.H., participated in each of the Audit Committee’s meetings.
Meetings of the Portfolio and Project Committee are held regularly prior to the meetings of the Supervisory
Board. The committee used its meetings in 2021 to prepare decisions regarding key investment and M&A projects
on the basis of extensive information and intensive discussions.
Further details regarding the activities of the Supervisory Board and its committees can be found in the (Consoli-
dated) Corporate Governance Report.
18
OMV ANNUAL REPORT 2021 / REPORT OF THE SUPERVISORY BOARD
Annual financial statements and dividend
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 Re-
port pursuant to section 96(1) of the Austrian Stock Corporation Act as well as the Annual Financial Statements
and the 2021 Consolidated Annual Financial Statements pursuant to section 96(4) of the Austrian Stock Corpora-
tion Act. Both the Annual Financial Statements and the Consolidated Annual Financial Statements for 2021 re-
ceived an unqualified opinion from the auditing company Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.
The Supervisory Board also approved the (Consolidated) Corporate Governance Report audited by both the Su-
pervisory Board and the Audit Committee as well as the (Consolidated) Report on Payments Made to Govern-
ments. The Supervisory Board found no issues during the audits. Following the audit, the Supervisory Board ac-
cepted the Executive Board’s suggestion to jointly propose in the Annual General Meeting distributing a dividend
of EUR 2.30 per share, which corresponds to an increase of EUR 0.45 over the previous year. The remaining
amount of the net profit after the distribution 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 pub-
lished separately and after the Annual Report together with the corresponding Supervisory Board report.
On behalf of the entire Supervisory Board, I would like to thank the Executive Board and all employees for their
commitment and extremely successful work in the difficult 2021 financial year, which was marked by so much un-
certainty. 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 9, 2022
For the Supervisory Board
Mark Garrett m.p.
19
OMV ANNUAL REPORT 2021 / OMV ON THE CAPITAL MARKETS
OMV on the Capital Markets
While the COVID-19 pandemic and new virus variants heightened price volatility on stock markets in
2021, the year was also characterized by strong investor optimism about the resilience of the economy,
which fueled a recovery movement throughout the year. In line with the Brent oil price benchmark, OMV’s
stock price strongly outperformed both the sector and the wider European market and ended the year at
EUR 49.95.
Financial markets
With the MSCI World Index and STOXX 600 up by 21%
and 22% in 2021 respectively, it was a good year for
global and European equities. Growth was mainly
driven by recovering economic activity and improving
company earnings. With rising inflation failing to incite
central banks to raise interest rates, investors were
compelled to raise their risk appetite in search of higher
returns: away from fixed income, and into equities.
While the introduction of anti-COVID-19 vaccines in the
industrialized world early in 2021 eased some of the
pandemic-induced concerns about global economic
development, repeated infection surges during the year
kept influencing markets. Particularly the emergence of
the Omicron variant of the virus in November renewed
demand uncertainty, causing a price slump. However,
as with every dip during 2021, ample excess liquidity
and a “there-is-no-alternative” mindset among investors
quickly put equities back on a growth trajectory towards
the end of the year.
At a glance
As a consequence of the sharply rising underlying
energy prices, the energy sector was among the top
performing sectors during 2021, in Europe as well as in
the United States.
Energy prices increased not only on the crude oil side,
but quite remarkably also on the natural gas side.
Benchmark spot prices at European natural gas trading
hubs hit record highs several times during the year’s
second half. The reason for this increase was a combi-
nation of factors, including: low local storage levels af-
ter a longer-than-usual previous heating season, de-
clining domestic European natural gas production, lim-
ited supplies via pipeline from Russia, and intensifying
competition for LNG deliveries between European and
Asian consumers. The time lag between natural gas
benchmark prices in some European markets and hub-
based spot prices is the reason why the spot price
surge at the hubs did not fully ripple through to all local
European markets until early 2022.
Number of outstanding shares1
Market capitalization1
Volume traded on the Vienna Stock Exchange
Year’s high
Year’s low
Year end
Earnings Per Share (EPS)
Book value per share1
Cash flow per share2
Dividend Per Share (DPS)3
Payout ratio
Dividend yield1
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 %
2021
327.0
16.3
10.4
55.00
32.74
49.95
6.40
47.41
21.47
2.30
36
4.6
57
2020
2019
2018
2017
327.0
10.8
9.3
50.76
16.33
33.00
3.85
42.02
9.60
1.85
48
5.6
(29)
326.9
16.4
8.2
54.54
39.32
50.08
5.14
39.80
12.42
1.75
34
3.5
36
326.7
12.5
9.1
56.24
37.65
38.25
4.40
36.44
13.46
1.75
40
4.6
(25)
326.5
17.3
8.8
54.14
32.37
52.83
1.33
34.35
10.56
1.50
113
2.8
61
1 As of December 31
2 Cash flow from operating activities
3 2021: as proposed by the Executive Board and confirmed by the Supervisory Board; subject to confirmation by the Annual General Meeting 2022
4 Assuming reinvestment of the dividend
20
OMV ANNUAL REPORT 2021 / OMV ON THE CAPITAL MARKETS
OMV share performance
OMV’s share price markedly outperformed both the
sector and the wider European equity market, closing
the year up 51%. Assuming dividend reinvestment, the
total shareholder return was 57%. OMV’s share price
started the year at EUR 33.00, with the bearish influ-
ence of COVID-19 still present. However, early 2021
saw the start of a wide-spread anti-COVID-19 vaccina-
tion effort in Europe. It sparked the optimism in the
market that helped share prices embark on a recovery
trajectory lasting throughout the year. OMV’s share
price thus never returned to the level seen in the first
week of the year, making the January 4, 2021 close of
EUR 32.74 the year’s low. Repeated lockdowns in re-
sponse to surging COVID-19 cases slowed the recov-
ery several times during the year, but none of the pre-
scribed measures exerted a similarly negative effect on
OMV’s share price as the first lockdown of March 2020.
The share reached its high for the year of EUR 55.00 at
the end of October 2021, almost in time for the first an-
niversary of the Borealis takeover. News about the
Omicron variant of the COVID-19 virus in November
caused the most severe price drop of the year -13% in
a span of 9 trading days. However, just as with the
other declines of 2021, this slump was soon made
good within a few weeks, in the latter case by early
January 2022. OMV closed the year at EUR 49.95, up
51%, broadly in line with the benchmark price develop-
ment of OMV’s main underlying commodity, that of
crude oil. The average daily trading volume of OMV
shares in 2021 was 451,538 shares (2020: 621,393). At
year-end, OMV’s total market capitalization stood at
EUR 16.3 bn, compared to EUR 10.8 bn at the end of
2020.
OMV share price performance 2021
In EUR
OMV’s share price outperformed the sector as well as
the wider market. The FTSEurofirst E300 Oil & Gas in-
dex and the FTSE Eurotop 100 global industry bench-
mark gained 21% and 23%, respectively, and the Aus-
trian ATX improved by 39%. Measured over a five-year
period, the return generated by OMV shares strongly
outperformed index returns. A EUR 100 investment in
OMV stock at year-end 2016 with continuous dividend
reinvestment in further OMV stock would have grown
by an average annual return rate of 13% to EUR 183 at
year-end 2021.
21
OMV ANNUAL REPORT 2021 / OMV ON THE CAPITAL MARKETS
OMV shares: long-term performance compared with indexes
Average annual increase with dividends reinvested1
1 Source: Bloomberg. The annualized return for the holding period is assuming dividends are reinvested at spot price.
OMV shareholder structure
OMV’s shareholder structure remained relatively un-
changed in 2021 and was as follows at year-end:
43.1% free float, 31.5% Österreichische Beteiligungs
AG (ÖBAG, representing the Austrian government),
24.9% Mubadala Petroleum and Petrochemicals Hold-
ing Company (MPPH), 0.4% employee share pro-
grams, and 0.1% treasury shares.
Shareholder structure
In %
Proposed dividend of EUR 2.30 per
share for the business year 2021
On June 2, 2021, OMV’s Annual General Meeting ap-
proved a dividend of EUR 1.85 per share for 2020 as
well as all other agenda items including the new Remu-
neration Policy for the Executive Board and Supervi-
sory Board, the Long Term Incentive Plan 2021, the
Equity Deferral 2021. Supervisory Board elections were
also held. The Executive Board will propose a dividend
of EUR 2.30 per share for 2021 at the next ordinary An-
nual General Meeting on June 3, 2022, an increase of
24% over the previous year. The dividend yield, based
on the closing price on the last trading day of 2021,
amounts to 4.6%.
Dividend policy
OMV is committed to delivering an attractive and pre-
dictable shareholder return through the business cycle.
According to its progressive dividend policy, OMV aims
to increase dividends every year or at least to maintain
the level of the respective previous year.
22
OMV ANNUAL REPORT 2021 / OMV ON THE CAPITAL MARKETS
An analysis of our shareholder structure carried out at
the end of 2021 showed that institutional investors held
30.6% of OMV’s shares. At 33%, investors from the
United States made up the largest regional group of in-
stitutional investors. The proportion of investors from
the United Kingdom amounted to 19%, while German
and French shareholders made up 11% and 7%, re-
spectively. The share of investors from Austria was 6%,
and Norwegian investors represented 4%.
Geographical distribution of institutional investors
In %
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 2021, OMV held a to-
tal of 261,326 treasury shares. The capital stock con-
sists entirely of common shares. Due to OMV’s adher-
ence to the one-share, one-vote principle, 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 ac-
tion and restrictions on the transfer of shareholdings.
Environmental, Social, and Governance
(ESG) performance
OMV continued to be rated as best in class in various
ESG ratings in 2021. OMV received an AAA, the high-
est score, in the MSCI ESG Ratings assessment for the
ninth 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 ranks us among the 5% best oil and gas com-
panies in terms of ESG performance. In the Sus-
tainalytics ESG Risk Rating, OMV scored a 26.7 (me-
dium risk), putting us in the top 5th percentile of oil and
gas producers. In 2021, OMV received a Platinum
medal in the annual EcoVadis rating for the first time,
placing OMV among the top 1% of all 75,000 compa-
nies rated globally by Ecovadis. OMV was also recog-
nized by CDP with a score of A– (Leadership) in the
Climate Change category, earning us a place among
the 20 best oil and gas companies in this ranking.
Besides these outstanding achievements, OMV has
maintained its inclusion in several ESG indexes. Most
notably, OMV was included in the Dow Jones Sustaina-
bility™ Index (DJSI World and DJSI Europe) for the
fourth year in a row as the only Austrian company in
the index. OMV attained a score in the 94th percentile
in S&P Global’s Corporate Sustainability Assessment
(CSA), the basis of the DJSI, in 2021. The DJSI World
represents the top 10% of the largest 2,500 companies
in the S&P Global Broad Market Index based on long-
term economic, environmental, and social factors. OMV
was included in several other S&P indexes, such as the
S&P Europe 350®, which is based on the SAM CSA
(like the DJSI). OMV is included in many MSCI indexes,
such as the prestigious ACWI ESG Leaders Index and
the ACWI Low Carbon Leaders Index. Furthermore,
OMV maintained its position in the FTSE4Good Index
Series, which is used by a wide variety of market partic-
ipants to create and assess responsible investment
funds. OMV was additionally included in the Euronext
V.E Eurozone 120 index (based on its ratings by V.E,
an affiliate of Moody’s) and maintained its inclusion in
the STOXX® Global ESG Leaders index (based on
OMV’s assessment by Sustainalytics).
23
OMV ANNUAL REPORT 2021 / OMV ON THE CAPITAL MARKETS
Solid credit ratings
Investor Relations activities
Even during the COVID-19 pandemic, ensuring active,
candid dialogue with the capital market remains a top
priority at OMV. Running investor meetings virtually via
video conference has become a standard by now. By
mastering this innovation, the Investor Relations de-
partment fulfilled its mission to provide comprehensive
insight into OMV’s strategy and business operations to
all capital market participants, thereby guaranteeing
equal treatment of all stakeholders. In this way, OMV’s
Executive Board was able to continue the constant dia-
logue with investors and analysts in Europe, North
America, and Asia throughout 2021, regardless of the
restrictions imposed to control the pandemic.
OMV Group is evaluated by rating agencies Moody’s
and Fitch. On July 7, 2021, Moody’s confirmed OMV’s
A3 issuer rating while raising the outlook to stable on
the back of recovering refining activity, following the
easing of COVID-19-induced mobility restrictions. On
March 13, 2020, Fitch confirmed OMV’s rating of A–
and revised the outlook to negative. Fitch confirmed
this rating in August 2020.
Analyst coverage
At the end of 2021, OMV was covered by 21 sellside fi-
nancial analysts who regularly publish research reports
on the Company. This ensures OMV good visibility in
the financial community. While the share of “sell” rec-
ommendations remained 0%, the share of “buy” recom-
mendations decreased sightly to 62%, compared to
68% at year-end 2020. This is mainly due to the strong
performance of the share price during 2021. A “hold”
recommendation was issued by 38% of analysts. Fol-
lowing the share price development, the average target
price for OMV increased to EUR 59.83 at the end of
2021, from EUR 34.49 per share a year earlier.
24
DIRECTORS’ REPORT
25 — 84
26 — About OMV
27 — Strategy
35 — Sustainability
40 — Health, Safety, Security, and Environment
43 — Employees
46 — OMV Group Business Year
56 — Exploration & Production
62 — Refining & Marketing
68 — Chemicals & Materials
75 — Outlook
76 — Risk Management
80 — Other Information
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
About OMV
OMV produces and markets oil and gas as well as chemical products and solutions in a responsible way
and develops innovative solutions for a circular economy. In 2021, Group sales amounted to EUR 36 bn.
With a year-end market capitalization of around EUR 16 bn, OMV is one of Austria’s largest listed
industrial companies. The majority of its roughly 22,400 employees work at its integrated European sites.
In Exploration & Production, OMV explores, develops,
and produces oil and gas in its four core regions of
Central and Eastern Europe, the Middle East and Af-
rica, the North Sea, and Asia-Pacific and produces gas
in a JV in Russia1. Daily production was 486 kboe/d in
2021 (2020: 463 kboe/d). While natural gas accounted
for 59% of total production, liquids amounted to 41%.
In Refining & Marketing, OMV operates three refineries
in Europe, Schwechat (Austria) and Burghausen
(Germany), both of which feature integrated
petrochemical production, and the Petrobrazi refinery
(Romania). In addition, OMV holds a 15% share in
ADNOC Refining and in ADNOC Global Trading.
OMV’s total global processing capacity amounts to
around 500 kbbl/d. Fuels and other sales volumes in
Europe were 16.3 mn t in 2021 (2020: 15.5 mn t) and
the retail network consists of around 2,100 filling
stations2. The natural gas sales volume was 196.4 TWh
in 2021 (2020: 164.0 TWh). OMV owns gas storage
facilities with a capacity of 30 TWh, holds a 65% share
in the Central European Gas Hub (CEGH), and
operates a gas-fired power plant in Romania.
In Chemicals & Materials, OMV, through its subsidiary
Borealis, is one of the world’s leading providers of
advanced and circular polyolefin solutions with total
polyolefin sales of 5.9 mn t in 2021 (2020: 5.9 mn t),
and a European market leader in base chemicals,
fertilizers3 and plastics recycling. The Company
supplies services and products to customers worldwide
through Borealis and its two important joint ventures:
Borouge (with ADNOC, based in the UAE) and
Baystar™ (with TotalEnergies, based in the US).
Our value chain
1 OMV decided to not pursue any future investments in Russia. As a result, Russia is no longer considered one of OMV's core regions.
2 On December 14, 2020, OMV and EG Group reached an agreement for the acquisition of 285 filling stations in Germany by EG Group. The transaction is sub-
ject to required regulatory approvals and the closing is expected in 2022. On February 4, 2021, OMV announced its intention to sell its business in Slovenia. The
closing of this transaction is expected in 2022.
3 On February 2, 2022, Borealis received a binding offer from EuroChem for the acquisition of its nitrogen business including fertilizer, melamine and technical
nitrogen products.
26
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Strategy
OMV will transform from an integrated oil, gas, and chemicals company into a leader in innovative
sustainable fuels, chemicals, and materials, leveraging opportunities in the circular economy. The Group
aims to become a net-zero emissions company by 2050 for all three scopes of greenhouse gas emissions.
By taking this path, OMV expects to deliver an operating cash flow excluding net working capital effects of
around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, a ROACE of at least 12%, and will continue its
progressive dividend policy.
Market outlook
Toward the end of the last decade, global warming and cli-
mate change took center stage as some of the most
pressing global challenges of our times. In addition, the
COVID-19 pandemic significantly impacted the energy
markets in 2020. The disruption of supply and demand dy-
namics has led to the current energy price escalation. It
has also accelerated the emergence of sustainability as a
mega trend to tackle the challenges of climate change
and, consequently, the energy transition. The ultimate ob-
jective of the energy transition is to reduce the greenhouse
gas (GHG) footprint of the global energy system to
achieve net-zero emissions and limit the global tempera-
ture rise to no more than 1.5°C by 2050.
The goal of achieving net-zero emissions by 2050 has
emerged as a global consensus and is poised to become
the new norm and license to operate for corporations. A
total of 136 countries representing more than 77% of
global carbon emissions and 80% of GDP have made
some form of net-zero commitment as of November 2021.
Businesses around the world have reacted and pledged to
achieve net-zero by 2050. These include leading oil and
gas, and chemical companies. The European Union is
committed to transforming its net-zero objective into the
EU’s Climate Law.
The demand for fossil-based commodities will change dra-
matically due to the restructuring of the global economy
and the adaptation of consumer behavior to the net-zero
path. While fossil-based energy products will face decline,
new business and growth opportunities will open up in ad-
jacent areas, as demand will increase for solutions that
can reduce GHG emissions. These are, for example, natu-
ral gas as a transition energy source, renewable energy,
biofuels, hydrogen, carbon capture, utilization & storage,
or CCU/S, geothermal, value chain extension toward more
valuable products such as chemicals and polymer solu-
tions, and growing developments toward a circular econ-
omy. This expected shift to novel solutions demands in-
vestment in low-GHG-emissions technologies, and circular
economy solutions, where great potential is assumed even
though the business models are still uncertain.
Despite all the efforts aimed at reducing GHG emis-
sions and generating strong growth in renewables, the
oil and gas sector is anticipated to remain the main
source of primary energy in the next decade. Based on
the International Energy Agency World Energy Outlook
(IEA WEO) 2021, total energy supply grows by 1.3%
per year from 2020 to 2030 in the IEA Stated Policies
Scenario (STEPS), reaching 670 exajouls (EJ) by
2030, whereas oil and gas demand growth compared
to renewables is roughly split equally. The IEA STEPS
assumes a fossil fuels share of 75% in the global en-
ergy mix in 2030, and 66% in 2050. This expected
growth trajectory might change, if current announce-
ments regarding emissions targets materialize, leading
to a decline of fossil fuel demand and supply. This
trend is in accordance with the IEA Sustainable Devel-
opment Scenario (SDS) of the WEO 2021, showing a
potential path toward fulfillment of the UN climate
goals, factoring in high political ambitions.
Note: The financial targets for 2025 are based on the following market assumptions: Brent oil price of USD 65/bbl, THE (Trading Hub Europe) gas price of
EUR 22/MWh, refining indicator margin Europe of USD 4.3/bbl, ethylene/propylene indicator margin Europe of EUR 430/t, polyethylene/polypropylene indicator
margin Europe of EUR 420/t. The financial targets for 2030 are based on the following market assumptions: Brent oil price of USD 70/bbl, THE (Trading Hub
Europe) gas price of EUR 24/MWh, refining indicator margin Europe of USD 4.3/bbl, ethylene/propylene indicator margin Europe of EUR 500/t, polyethylene/poly-
propylene indicator margin Europe of EUR 480/t.
27
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
World total primary energy supply
In EJ
Source: IEA World Energy Outlook 2021
While oil consumption is expected to decline in mature
markets such as North America and Europe, global
growth beyond 2030 will stem from Asia, the Middle
East, and Africa. Peak oil demand is anticipated in the
coming decade. Natural gas, on the other hand, which
leads to 10–30% lower GHG emissions compared to oil
products, will provide a reliable and resilient fuel choice
for the energy transition. This will lead to an increase in
its demand, with strong momentum from industry and,
in particular, the construction sector.
Given the above-mentioned trends, the refining busi-
ness model in Europe will face declining fossil fuel de-
mand, triggered by the decarbonization of road trans-
portation. Consequently, this sector will have to re-
spond strategically to this circumstance. The retail seg-
ment will be resilient but will shift increasingly from fuel
to EV charging, hydrogen, and convenience. The share
of biofuels, and especially advanced biofuels, an addi-
tional enabler for meeting net-zero targets, is expected
to increase sharply until 2030. This will be triggered by
regulations and end-users, especially in hard-to-elec-
trify segments, such as marine, aviation, and heavy-
duty transport.
Oil demand for chemical production is expected to in-
crease, primarily originating from rising demand in
emerging markets and closely linked to GDP develop-
ment. Approximately 80% of chemical and plastic de-
mand growth will be concentrated in emerging markets,
mainly Asia, until 2030 and beyond. This region repre-
sents most of the global population growth and the cor-
responding potential for improving living standards. Av-
erage oil demand for chemical products in emerging
markets is expected to expand at the rate of above 1%
above global GDP growth until 2030.
28
For mature markets such as Europe, North America,
and Japan, demand growth is anticipated to remain
healthy in the long term, in line with economic develop-
ment, but growth rates are expected to slow.
Polyolefins are the largest market segment in produc-
ing plastic goods. Demand for virgin polyolefins contin-
ues to grow at a rate above global GDP until 2030,
driven by the Asian market. Polyolefins remain essen-
tial for various industries, including packaging, con-
struction, transportation, healthcare, pharmaceuticals,
and electronics.
The key success factor for medium- to long-term sus-
tainable business models is growth in renewable feed-
stocks, bioplastics, and the development of circular so-
lutions. Recycled polyolefin demand is expected to
grow at a rate significantly above global GDP until
2030, with Asia having the largest share.
Over the next decade, key focus areas for the plastics
industry will be continued improvement in waste collec-
tion, the redesign of plastics and their applications for
increased recyclability, and improvements in recycling
technologies . Global recycling rates are projected to
increase from 17% today to 20% by 2030, while Europe
is expected to see even higher recycling rates.
Based on the market development outlook, as de-
scribed above, OMV developed two forward-looking en-
ergy market frameworks. OMV’s base case scenario is
built on the IEA Stated Policies Scenario (STEPS)
taken from the World Economic Outlook and adjusted
based on an assumption that the EU, the United
States, China, Japan, and South Korea (with a two-
year delay for political alignment and measuring effec-
tiveness) follow the IEA Sustainable Development Sce-
nario (SDS) and meet the Paris Agreement targets.
OMV’s stress case is built on the IEA SDS Scenario,
where the entire world reaches the Paris Agreement
commitment of net-zero by 2070. The SDS is used for
downside sensitivity analysis to generally understand
how the existing and future portfolio will perform in this
business scenario. In this scenario, global oil markets
will start a continuous downward production trend, with
a significant gradient toward 2040, and natural gas
markets will peak in 2030 with a strong decline thereaf-
ter. European gas demand is expected to decline by
25% by 2030, with a strong phaseout until 2050.
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Strategic cornerstones
OMV will transform from an integrated oil, gas, and
chemicals company into a leader in innovative sustain-
able fuels, chemicals, and materials, leveraging oppor-
tunities in the circular economy. An integral part of the
Group’s strategy is its ambition to become a net-zero
emissions company by 2050 for Scope 1, 2, and 3
emissions. In view of the ongoing transformation in the
energy industry and a global goal of net-zero emis-
sions, OMV builds on its strengths and seizes opportu-
nities to position itself competitively.
2030 strategic priorities
▸ Become a net-zero emissions company by 2050;
solutions
reduce Scope 1 and 2 emissions by 30% and
Scope 3 emissions by 20% by 2030
economy solutions
▸ Develop into a global leader in specialty polyolefin
▸ Establish a global leadership position in circular
▸ Become a leading European producer of sustaina-
▸ Reduce fossil production and shift to gas
▸ Enhance OMV’s shareholder value: deliver growth
ble fuels and chemical feedstocks
with strong financials and continue the progressive
dividend policy
The Chemicals & Materials business will be the core
growth engine of the Group. OMV aims to become a
global leader in specialty polyolefin solutions, with a
significantly stronger position in the Middle East, Asia,
and North America. The Group will strengthen its exist-
ing polyolefins business, while also building a strong
and diversified chemicals and materials portfolio, by ex-
panding into adjacent businesses and new product
groups. To achieve this, OMV will target investments
and initiatives that improve its returns and carbon foot-
print. Moreover, OMV will expand its geographical
reach, pursuing high-growth markets, such as Asia and
North America. This will be achieved through in-market
investments and partnerships based on differentiated
technologies and application portfolios. Furthermore,
the Company will diversify its presence beyond polyole-
fins by entering into specialty chemicals and materials
to build leadership positions.
An important pillar of OMV’s strategy is the ambition to
become a leader in renewable and circular chemicals
and materials. The Group will capture the potential of
emerging renewable and circular markets by leveraging
its integrated technology platform and end-to-end
position to develop innovative products and new busi-
ness models. The circular economy is crucial for a long-
term sustainable chemical business. Thus, a transfor-
mation toward an economically viable commercial scale
is needed. In this context, the Group’s target is to de-
liver around 2 mn t of sustainable C&M products by
2030.
OMV also aims to become a leading, innovative pro-
ducer of sustainable fuels and chemical feedstocks. As
a result, the Western European refineries will reduce
their crude distillation throughput by 2.6 mn t and shift
to an increased chemical feedstock share of 24% by
2030. The plan is to increase production of renewable
fuels and sustainable feedstocks to approximately 1.5
mn t instead. In Marketing, OMV aims to become the
first choice of our customers for energy, mobility and
convenience, focusing on the sale of sustainable avia-
tion fuels, building an EV recharging network, and
growing its non-fuel retail business.
In the Exploration & Production business, OMV is fo-
cusing on maximizing the value and harvesting cash.
E&P will reduce gradually its fossil production to below
400 kboe/d by 2030, with an overweight on gas. In the
same time, OMV will make significant investments into
the low-carbon solutions, namely in around 10 TWh re-
newable energy (e.g., geothermal) and around 5 m t
p.a. of CCS capacity by 2030 to reduce its GHG foot-
print. The E&P business will act as a cash engine for
the Group and will support the transformation.
The gas sales and logistics business excluding OMV
Petrom will be consolidated in the E&P business start-
ing 2022. Toward the end of the decade, equity gas
contribution to the Gas Sales business portfolio will de-
crease due to natural fields decline, and will be pre-
dominantly replaced by primarily traded green gas
products in order to reduce the carbon intensity of the
product portfolio.
OMV is committed to becoming a net-zero emissions
company by 2050 (Scopes 1, 2, and 3) and has set in-
terim targets for 2030 and 2040, with well-defined ac-
tions to meet the targets by 2030. By 2030, OMV aims
to reduce its Scope 1 and 2 emissions by 30% and its
Scope 3 emissions by 20%. The Group also aims to re-
duce its intensity in energy supply by 20% by 2030.
This will be achieved by decreasing fossil fuel sales, in-
creasing zero-carbon energy sales, increasing polyole-
fins recycling and sustainable feedstocks and products,
as well as using neutralization measures such as CCS.
29
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
This path will enable OMV to deliver operating cash
flow excluding net working capital effects of around
EUR 6 bn by 2025 and at least EUR 7 bn by 2030, a
ROACE of at least 12% in the mid- and long term, and
continuation of its progressive dividend policy. These
are supported by sound capital allocation priorities and
a strong balance sheet, with a mid/long-term leverage
ratio of below 30%.
Building on its current strengths and a vision of leader-
ship in technology and innovation, OMV will be well po-
sitioned to thrive sustainably in a world with low GHG
emissions. This strategy enhances OMV’s shareholder
value, as its transformation path allows for a sustaina-
ble growth business model, showing the Group’s com-
mitment to cutting GHG emissions, delivering strong fi-
nancials, and maintaining its progressive dividend pol-
icy.
Chemicals & Materials
solutions
2030 strategic priorities
North America and Asia
▸ Develop into a global leader in specialty polyolefin
▸ Grow in attractive markets with a particular focus on
▸ Grow sustainable polyolefin production to up to
▸ Establish a leading position in renewable and circu-
▸ Diversify portfolio by entering adjacent products
~40% of total polyolefin production in Europe
lar economy solutions
and new product groups
Demand for chemical products will continue to grow
ahead of global GDP, even in a low GHG emission
world. Virgin polyolefin demand is expected to grow
slightly above GDP with a CAGR (2021–2030) of 3.6%.
The majority of this demand growth stems from high-
growth markets in Asia and is associated with a variety
of different end-user markets and applications, provid-
ing a natural hedge against the volatility of individual in-
dustries. Recycled polyolefins are projected to grow
with a CAGR (2021–2030) of 11.7%, significantly
above GDP, thanks to strong end-market commitments
especially in the consumer goods sector, increasing
regulatory pressure, and the need for end-of-life solu-
tions for plastic waste.
Polyolefins play a critical role as eco-efficient enablers
for a sustainable future, e.g., making lighter weight au-
tomotive solutions and packaging that reduces food
waste and increases shelf life possible. The current lin-
ear value chain in polyolefins faces significant chal-
lenges: mismanaged and unmanaged waste, environ-
30
mental pollution, unnecessary emissions, and micro-
plastic accumulation. Turning the value chain from a
linear to a circular model will be one of the priorities for
a sustainable chemicals business going forward. How-
ever, this requires a profound transformation to enable
scale at attractive profitability. Current feedstock acces-
sible directly from recycling is limited. For this reason,
tapping into up- and downstream feedstocks, primarily
through partnerships, is critical to ensuring sufficient
access to plastic waste. Partnerships with brand own-
ers and retailers ensure attractive long-term offtake
agreements with green product premiums. In addition,
the future operating model needs to be set up to rapidly
respond to changing customer and regulatory de-
mands, with a primary focus on the advanced Euro-
pean landscape but also on the ability to quickly roll out
successful blueprints globally.
OMV aims to strengthen its polyolefins business by
building on existing strengths and capabilities and fully
exploiting competitive advantages to grow into adjacent
markets, targeting investments and initiatives that im-
prove returns and decreases the Group’s carbon foot-
print.
Chemicals & Materials has a strong pipeline of organic
growth projects in Europe, Middle East and North
America.
plant, 2023)
Key growth initiatives include:
▸ Expansion of propylene capacities in Europe (Kallo
▸ Expansion of the Burghausen naphtha-based
▸ Expansion of Borouge JV through Borouge 4 –
steam cracker (2022)
building an ethane-based steam cracker of 1.5 mn t
and polyolefin plants with a capacity of 1.4 mn t.
Steam cracker and polyolefin plants expected to
start at the end of 2025.
▸ Expansion of North American footprint through Bay-
star JV, building a 1 mn t ethane-based cracker and
expanding the polyethylene plants capacity to 1 mn
t annual capacity. The steam cracker and the poly-
olefin plants expected to start in 2022.
Chemicals & Materials business targets to strengthen
its polyolefin and specialty product portfolio, securing
attractive margins. The business aims to grow in Asia
and aims to strengthen its North American footprint via
organic and inorganic investemnts. In addition, to fur-
ther broaden its portfolio, Chemicals & Materials aims
to tap into adjacent pockets of value creation and de-
velop a broader diversified chemicals leadership posi-
tion, primarily through M&As.
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Key growth initiatives include:
▸ Build polypropylene position in North America
▸ Grow in differentiated specialty products
▸ Grow in Asia in specialty polyolefins and circular
solutions
In addition to overall market attractiveness, strategic fit,
and value creation, key investment criteria for potential
diversification opportunities are sustainability and geo-
graphical footprint. A continued focus on innovation will
be essential to maintaining technology leadership.
OMV aims to become a leader in renewable and circu-
lar chemicals and materials. To reach this goal, the
Group plans to capture emerging renewable and circu-
lar market potential by leveraging its integrated technol-
ogy platform and end-to-end position to establish new
products and novel business models.
The aim is to deliver approximately 2 mn t p.a. of sus-
tainable products by 2030 to reduce product carbon
footprint and meet OMV’s emission targets. This will be
accomplished by accelerating ongoing (advanced) me-
chanical and chemical recycling initiatives in Europe as
well as by using bio feedstocks. The sustainable prod-
ucts will be the result of the increasing use of bio-feed-
stocks for polyolefins and the broader chemicals portfo-
lio, and leveraging the close integration with OMV’s Re-
fining & Marketing business. Building on its European
sustainability leadership, Chemicals & Materials will uti-
lize its global footprint to expand circular economy solu-
tions globally with existing joint ventures, new growth
platforms, and additional partnerships across Asian and
North American assets.
OMV’s C&M business will be the major growth engine
of the group. With a portfolio of various growth initia-
tives, it will balance sustainability, risk, and returns and
strengthen resilience against market dynamics. The
C&M strategy has significant growth and value creation
potential.
Total organic investments in Chemicals & Materials will
average EUR 0.9 bn p.a., EUR 0.3 bn p.a. of which will
be allocated to sustainable and CO2 emissions reduc-
tion projects.
Refining & Marketing
2030 strategic priorities
▸ Reduce crude distillation throughput by 2.6 mn t
while growing the production of renewable mobility
fuels and sustainable chemical feedstocks to ap-
proximately 1.5 mn t
▸ Produce and market at least 700,000 t of sustaina-
▸ Invest in a EV charging network and significantly in-
ble aviation fuels
crease margin contribution from Retail non-fuel
business
▸ Significantly reduce absolute Scope 1, 2, and 3
emissions
Going forward, R&M is reshaping its product portfolio,
building on renewable mobility fuels and sustainable
chemical feedstocks. The company is focusing on safe,
innovative, and ecologically and economically sustaina-
ble operations. As a result, R&M will enable transfor-
mation to low-carbon operations and sales while main-
taining strong profitability.
European fossil refining market potential will decrease
significantly up to 2030, as both volumes and refining
margins are expected to be under pressure driven by
the pace of the energy transition in Europe. In the same
time horizon, strong growth will materialize for renewa-
ble mobility fuels as well as sustainable chemical feed-
stocks. Refining will proactively decrease crude oil dis-
tillation throughput in the Schwechat and Burghausen
refineries, from 12.9 mn t in 2019 to approximately
10.3 mn t in 2030, in line with changing demand pat-
terns. This adaptation will significantly reduce heating
oil and diesel product output by 2030, while increasing
the chemical yield to around 24% for the Western refin-
eries. To leverage the opportunities of the ongoing en-
ergy transition, the refining division is developing a sus-
tainable production portfolio for renewable fuels and
sustainable chemical feedstocks, such as the co-pro-
cessing of biogenic feedstocks in Schwechat, reaching
approximately 1.5 mn t in total by 2030. In this context,
the sourcing of bio-feedstocks will be a critical success
factor.
OMV will optimize the interface between oil and chemi-
cals with a focus on the integrated Schwechat and
Burghausen sites by reconfiguring plants and sites to
maximize high-value fossil resources and a growing
share of sustainable feedstocks for chemicals produc-
tion. OMV will continue to operate its three European
refineries in Austria, Germany, and Romania as one in-
tegrated system, optimizing asset utilization and max-
imizing margins. Furthermore, the company is imple-
menting energy and operational efficiency measures
within the existing refinery assets to maintain a leading
cost position in Europe.
OMV’s goal with its international, non-operated refining
positions in UAE (ADNOC Refining) and Pakistan
(PARCO) is to improve their commercial performance.
The focus in the short to mid-term will be on operational
31
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
excellence as well as performance culture at each asset.
In the mid- to long-term, OMV will evaluate commercial
options for the production of sustainable mobility fuels
and assess strategic options for capital reallocation.
The Marketing & Trading activities in Europe secure
OMV’s customer and market access. In line with chang-
ing demand patterns, as well as regulatory obligations,
OMV will gradually transform its product portfolio to in-
clude more sustainable fuels and services by 2030,
thereby increasing the resilience of its product mix.
OMV will build a growing business for sustainable avia-
tion fuels (SAF) in central Europe by establishing new
market positions in the vicinity of planned production
sites, such as in Belgium and in Romania. OMV Mar-
keting & Trading will market at least 700,000 tons of
SAF by 2030. OMV will aim to grow SAF sales volumes
significantly beyond the planned regulatory framework
and will target the growing voluntary compliance mar-
ket. Simultaneously, Marketing & Trading will sustain its
position of bitumen and marine fuel oil to safeguard re-
finery utilization, while continuing to evolve these prod-
ucts to lower GHG emissions.
In Retail Mobility & Convenience, OMV intends to further
develop existing market potential by significantly growing
the non-fuel business sector. New gastronomy and ser-
vice concepts, as well as cooperation in the food logistics
sector, are expected to significantly increase the volume
and margin of the non-fuel business by 2030. In parallel,
the company will further increase its premium fuel share
to more than 30% as a differentiator and significant mar-
gin generator by 2030. OMV Retail Mobility & Conven-
ience will expand into e-mobility, building a leading posi-
tion in out-of-home Electric Vehicle (EV) charging loca-
tions such as highway and transit refilling stations, as
well as convenience hubs. With a total investment in this
segment of more than EUR 400 mn by 2030, OMV will
grow the profitability of the retail business as well as
monetize the value of its assets.
Total organic investments in the R&M business will av-
erage at EUR 1 bn p.a. in 2022–2030, EUR 0.5 bn p.a.
of which will be allocated to sustainable and carbon
emissions reduction projects.
With this new strategy, OMV will accelerate attainment
of its goal of lowering GHG emissions by reducing fos-
sil fuels, stepping up the production and marketing of
renewable fuels and sustainable chemical feedstocks,
as well as implementing energy efficiency measures.
Exploration & Production
2030 strategic priorities
▸ Portfolio managed as a robust cash generator to
▸ Production of at least 450 kboe/d is expected by
support the Group’s transformation
2025 and below 400 kboe/d by 2030, with an over-
weight on gas1
▸ Production cost below USD 7/boe
▸ Low-carbon business solutions developed, with
around 10 TWh in renewable energy (e.g., geother-
mal) and 5 mn t p.a. CCS, to significantly reduce
absolute and relative GHG emissions
▸ Portfolio optimization measures will be evaluated
In the context of the ongoing energy transition and to
support OMV Group’s transformation, E&P will be man-
aged as a robust cash generator and will focus on fur-
ther upgrading its competitive asset portfolio, concen-
trating on the four core regions: Central and Eastern
Europe, the North Sea, Middle East and Africa, and
Asia Pacific. The shift of the hydrocarbon portfolio to
gas will continue, with further divestment of non-core
positions to improve efficiency, while the low-carbon
business will be ramped up to achieve a material contri-
bution by the end of the decade.
Boosting value delivery and cash generation are the
main goals and criteria for managing and developing
the portfolio of oil and gas assets, with a strong empha-
sis on gas. The delivery over the mid-term of key pro-
jects in the portfolio such as the Neptun Development
in Romania, Jerun in Malaysia, and Umm Lulu SARB
Phase 2 plateau extension in the UAE will support
strong cash generation by and beyond 2025. With the
current portfolio, OMV expects to maintain production
levels of at least 450 kboe/d, with around 60% gas by
2025.1 Thereafter, OMV expects to reduce its oil and
gas production levels to below 400 kboe/d by 2030,
keeping the overweight on gas.1 The production decline
will occur primarily in the second part of the decade, as
no new large-scale projects (re-)developments are be-
ing pursued. In order to sustain the above-mentioned
production levels, ramp up the low-carbon business,
and deliver strong cash generation, E&P anticipates a
total annual average CAPEX over the decade of
around EUR 1.6 bn, EUR 0.6 bn of which is earmarked
1 The contribution from Russia is estimated to be around 80 kboe/d in 2025 and to be around 40 kboe/d in 2030. In light of the latest developments, OMV decided
not to pursue any future investments in Russia and initiated a strategic review of the interest in Yuzhno Russkoye, including the possibility to divest. As a result,
Russia is no longer considered one of OMV's core regions. Any potential impact from this strategic review is not reflected in this target.
32
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
for low-carbon activities. OMV’s exploration and ap-
praisal activities are being streamlined further, and the
total annual average budget is expected to be around
EUR 0.2 bn over the decade. Toward the end of the
decade, oil and gas CAPEX and E&A expenditures will
be reduced, thereby allowing for more capital to be allo-
cated toward ramping up the low-carbon business and
the broader OMV transformation.
E&P plans to reinforce the competitiveness of its portfo-
lio and resilience against market volatility amid the rap-
idly changing demands of the oil and gas industry. The
strong focus on operational excellence, fostered by dig-
italization and agile ways of working, in addition to port-
folio optimization, will ensure that production cost re-
mains below USD 7/boe beyond 2025.
The Gas sales business and logistics excluding OMV
Petrom will be consolidated in the E&P business starting
2022. Over the next decade, European production will
decline, while demand is expected to remain resilient. To
close the supply-demand gap, OMV will continue to com-
plement its own natural gas production in Norway, Aus-
tria, and Romania with long-term gas supply contracts
from Russia and is working to identify and develop addi-
tional sources of supply. The equity gas contribution to
the Gas sales business will decrease significantly toward
the end of the decade in Northwestern region due to nat-
ural fields decline, and will largely be replaced with green
gases, such as biogas and hydrogen, primarily obtained
through trading, to reduce the carbon intensity of its
product portfolio. New equity gas volumes from the Ro-
manian Neptun project will keep volumes high in the
Southeastern region. OMV will also aim to direct an in-
creasing share of its natural gas sales to customers from
non-energy sectors, such as the chemicals industry, to
further reduce its Scope 3 portfolio emissions.
The Group will explore a range of opportunities and
portfolio choices that enhance cash flow generated by
the current Exploration and Production business and
support a potential accelerated transition to sustainable
fuels, chemicals, and materials. These opportunities
may include capturing the full value potential of the as-
set base, e.g., low carbon business potential, maintain-
ing reservoir production excellence and optimizing
costs as well as assessing and developing joint venture
opportunities for selected assets without excluding inor-
ganic options.
To reduce its operations carbon footprint, E&P will pur-
sue the phase out of routine gas flaring and venting, re-
duce fugitive methane emissions, and introduce portfo-
lio optimization measures. In addition, renewable en-
ergy projects will also be pursued for the purpose of
powering OMV’s own operations, such as the photovol-
taic plant developed with VERBUND in Schönkirchen,
Austria. To achieve overall reduction of both absolute
and relative GHG emissions from its product portfolio,
E&P will leverage its existing asset base and core skills
to deliver financially strong low-carbon business pro-
jects. Available opportunities will be captured to build
up geothermal heat capacity that generates up to 9
TWh p.a. by 2030. In addition to geothermal, a mini-
mum of 1 TWh from renewable power will be devel-
oped in OMV core regions with favorable sun and wind
conditions to serve captive demand, thereby reducing
Scope 2 emissions by OMV’s own operations. E&P will
further tap its existing reservoirs and (sub-)surface ca-
pabilities to implement opportunities that lead to a CCS
storage capacity of approximately 5 mn t p.a. of CO2
net to OMV by 2030. In addition, further opportunities
where E&P can leverage its strengths and capabilities
are being explored, e.g., hydrogen and energy storage,
and will potentially be pursued in consideration of OMV
strategic priorities.
Decarbonization strategy
2030 strategic priorities
▸ Reduce OMV Group Scope 1 and 2 emissions by
▸ Reduce OMV Group Scope 3 emissions by 20%
▸ Reduce OMV Group’s carbon intensity of energy
30%
supply by 20%
OMV is committed to achieving net-zero emissions
(Scopes 1, 2, and 3) by 2050, with interim targets for
2030 and 2040. OMV is awaiting the publication of the
science based targets (SBT) methodology for the oil &
gas sector to evaluate its new targets against the SBT
requirements with the ultimate ambition to get them ap-
proved by the Science Based Target initiative (SBTi).
OMV targets are set at an absolute and intensity level
with the ultimate goal of achieving net-zero emissions
in Scopes 1, 2, and 3 by 2050. For Scope 1 and 2,
OMV aims for an absolute reduction of 30% by 2030
and of 60% by 2040. For the defined categories in
Scope 3, OMV aims at the reduction by 20% by 2030
and by 50% by 2040. In terms of reducing the carbon
intensity of energy supply, OMV intends to achieve a
decrease of 20% by 2030 and 50% by 2040.
These emission reductions can only be achieved with
considerable effort and capital allocated: The Group
has earmarked organic investments of more than EUR
13 bn for this purpose. All business units will build on
their existing strengths and know-how on this transfor-
mation journey. Three key initiatives will be undertaken
to achieve the targeted reductions by 2030:
33
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
▸ Decrease in fossil fuel sales: Significant decrease
in fossil fuels and a less steep decline in natural
gas sales
▸ Increase in zero-carbon energy sales: significant in-
crease in sustainable and biobased fuels, green
gas sales, build-up of photovoltaic electricity capac-
ity for captive use as well as geothermal heat
▸ Increase in Chemicals & Materials recycling and sus-
tainable feedstocks and delivery of approximately 2
mn t p.a. of circular products: recyclate production
substituting fossil chemicals and materials production
and production from biogenic feedstock
Besides these efforts, neutralization measures will be
necessary. OMV anticipates that it will use 5.0 mn t of
CCS capacity across all business units. All energy pur-
chases will be 100% renewable. The inorganic growth
of the Chemicals & Materials business will be executed
in line with OMV decarbonization targets with either de-
carbonization pathways in place or to be implemented
following a possible acquisition.
Finance
2030 strategic priorities
▸ Generate operating cash flow excluding net working
capital effects of EUR ~6 bn by 2025 and EUR ≥7
bn by 2030
▸ Target a ROACE ≥12% in the mid- and long term
▸ Ensure sound capital allocation priorities: organic
CAPEX, dividend, inorganic growth, and deleverag-
ing1
▸ Maintain strong balance sheet, with a mid/long-term
▸ Continuously deliver on the progressive dividend
leverage ratio below 30%
policy
The Group’s financial strategy aims to increase the
company’s value and shareholder return, while ensur-
ing a robust balance sheet, along with a financially re-
silient portfolio that thrives in a low-carbon world and
has attractive growth potential well into the future. The
value-driven finance strategy operates on a clear
framework for enabling long-term profitable and resili-
ent growth and aims to achieve a ROACE of at least
12%, positive free cash flow after dividends, a strong
balance sheet, with a mid/long-term leverage ratio of
below 30%, a Clean CCS Operating Result of at least
EUR 5 bn by 2025 and EUR 6 bn by 2030, increasing
clean CCS net income attributable to shareholders, op-
erating cash flow excluding net working capital of
around EUR 6 bn by 2025 and at least EUR 7 bn by
2030, as well as a progressive dividend policy.
When building its financial plan, OMV set a sound capi-
tal allocation policy: first, investing in its organic portfo-
lio; second, paying attractive dividends; third, pursuing
inorganic spending for an accelerated transformation;
and fourth, deleveraging1. In its capital allocation, the
Group focuses on selecting the most competitive and
resilient projects. The defined investment criteria in-
clude hurdle rates and payback periods by business re-
flecting respective risk and return profiles, as well as
testing projects for their resilience and break-even ver-
sus relevant market KPIs.
To achieve its strategic goal, OMV plans a yearly or-
ganic CAPEX around EUR 3.5 bn for the period from
2022 to 2030. Overall, the Group is allocating more
than EUR 13 bn, in total, for 2022–2030 to achieve its
ambitious decarbonization targets. In addition, OMV will
consider inorganic growth in areas of strategic im-
portance. However, this will depend on the Group’s in-
debtedness headroom. Moreover, the Group’s portfolio
of assets can provide options through divestments to
accelerate strategy execution when attractive acquisi-
tion targets in targeted growth areas become available.
The Group’s strategy, supported by disciplined capital
allocation, will enable OMV to generate increasing and
resilient cash flows and higher earnings. These solid fi-
nancials ensure a strong balance sheet for the Group.
In its financial framework, OMV has made a significant
commitment to ensuring a robust balance sheet and a
investment-grade credit rating. The Company aims to
achieve a leverage ratio of below 30% for mid- and
long term. Depending on portfolio measures, the lever-
age ratio can exceed 30%, however this will then be
followed by a deleveraging program to ensure the bal-
ance sheet is strengthened.
During the strategy period, OMV will continue to deliver
on its progressive dividend policy. The Group therefore
aims to increase the dividends every year, or to at least
maintain dividends at the respective previous year’s
level. This underlines the Group’s commitment to its
progressive dividend policy.
1 Depending on the leverage ratio of OMV, the order between inorganic growth and deleveraging can reverse.
34
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Sustainability
We are committed to building a sustainable world worth living in – for everyone. Sustainability and circu-
larity lie at the center of our Group strategy. We aim to become a net-zero business by 2050, accelerate the
energy transition, and proactively expedite the transition from a linear to a circular economy. We build
positive relationships with our employees, communities, suppliers, and other stakeholders, including by
addressing social and economic effects of the transition to an environmentally sustainable economy. Our
Sustainability Framework is built around the three pillars Environmental, Social, and Governance (ESG).
Our Strategy 2030 is underpinned by this sustainability
framework, with all business decisions being informed
by our ambition to become a net-zero business. Within
this sustainability framework, we have established five
strategic focus areas: Climate Change; Natural Re-
sources Management; Health, Safety & Security; Peo-
ple; and Ethical Business Practices. For each of these
focus areas, we have formulated concrete commit-
ments, targets, and actions to be achieved by 2030,
which mark OMV’s contribution to the UN 2030 Agenda
for Sustainable Development.
OMV’s sustainability targets and
commitments
Climate Change
▸ Commitments:
▸ OMV continuously improves the carbon effi-
ciency of its operations and product portfolio.
OMV is fully committed to supporting and accel-
erating the energy transition, and aims to be-
come a net-zero business by 2050 or sooner.
by ≥30% vs. 2010
▸ Targets 2025:
▸ Reduce carbon intensity of operations (Scope 1)
▸ Reduce carbon intensity of product portfolio
▸ Achieve at least 1 m t CO2 reductions from oper-
▸ Achieve an E&P methane intensity of 0.2% or
(Scope 3) by >6% vs. 2010
ated assets in 2020–2025
lower
▸ Zero routine flaring and venting of associated
gas as soon as possible, however, no later than
2030
▸ Targets 2040:
▸ Reduce Scope 1 and 2 emissions by ≥60% vs.
▸ Reduce Scope 31 emissions by ≥50% vs. 2019
▸ Reduce carbon intensity of energy supply by
2019
≥50% vs. 2019
Natural Resources Management
▸ Commitments:
▸ OMV is fully committed to taking action on re-
sponsible natural resources management and
will proactively expedite the transition from a lin-
ear to a circular economy.
▸ OMV aims to minimize environmental impacts by
preventing water and soil pollution, reducing
emissions, efficiently using natural resources,
and avoiding biodiversity disruption.
tions
▸ Targets 2025:
▸ Triple volume of recycled polyolefins to 350 kta
▸ Increase waste reuse and recycling from opera-
▸ Reduce freshwater withdrawal
▸ Targets 2030:
▸ Produce approx. 2,000 kta sustainable (includes
▸ Reduce natural resources use by cutting oil and
recycled and biobased) polyolefins
2019
▸ Targets 2030:
▸ Reduce Scope 1 and 2 emissions by ≥30% vs.
▸ Reduce Scope 31 emissions by ≥20% vs. 2019
▸ Reduce carbon intensity of energy supply by
▸ Achieve an E&P methane intensity of 0.1% or
≥20% vs. 2019
gas production levels to below 400 kboe/d and
by reducing crude distillation throughput by 2.6
mn t
▸ Increase reuse and recycling of waste from op-
▸ Reduce freshwater withdrawal
erations
lower
1 The following scope 3 categories are included: category 11 – Use of sold products for OMV’s energy segment, category 1 – Purchased goods (feedstocks), and
category 12 – End of life of sold products for OMV’s non-energy segment.
35
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Health, Safety, and Security
▸ Commitments:
▸ Health, safety, and security have the highest pri-
ority in all activities. OMV is fully committed to
proactive risk management in realizing its HSSE
vision of “ZERO harm – NO losses.”.
▸ Targets 2025:
▸ Achieve a Total Recordable Injury Rate (TRIR)
▸ Achieve zero work-related fatalities
▸ Maintain leading position in Process Safety
of around 1.0 per 1 mn hours worked
Event Rate
▸ Targets 2030:
▸ Stabilize the Total Recordable Injury Rate
▸ Achieve zero work-related fatalities
▸ Maintain leading position in Process Safety
(TRIR) at below 1.0 per 1 mn hours worked
Event Rate
to 30%
(stretch target 30%)
▸ Targets 2030:
▸ Increase share of women at management level
▸ Min. 20% female Executive Board members
▸ Increase share of international management to
▸ Keep share of executives with international ex-
▸ Increase average number of annual learning
▸ Increase support for employees with disabilities
▸ Conduct Human Rights Assessment in high-risk
hours to a min. of 30 hours per employee
at our main locations
perience at 75%
65%
country business for all OMV Group operations
and develop action plans every five years
▸ Direct at least 1% of Group investment per year
toward social goals (based on previous year’s
reported net income attributable to stockholders
of the parent) by 2030
People
▸ Commitments:
▸ OMV is committed to building and retaining a tal-
Ethical Business Practices
▸ Commitments:
▸ OMV strives to uphold equally high ethical
ented expert team for international and inte-
grated growth. We embrace our difference(s)
and use our diversity of thought and experience
as a catalyst for growth and creativity.
▸ OMV is committed to ensuring fair treatment and
equal opportunities for all employees, and has
zero tolerance for discrimination and harassment
of any kind.
▸ As a signatory to the United Nations Global
Compact, OMV is fully committed to the UN
Guiding Principles on Business and Human
Rights, and aims to contribute to the UN’s 2030
Agenda for Sustainable Development by pursu-
ing a social investment strategy that addresses
local needs and the SDGs.
▸ OMV is committed to contributing to a Just Tran-
sition for our employees and communities, and
addressing social and economic effects of the
transition to an environmentally sustainable
economy.
to 25%
▸ Targets 2025:
▸ Increase share of women at management level
▸ Keep high share of executives with international
▸ Train all OMV Group employees in human rights
▸ Assess Community Grievance Mechanism of all
experience at 75%
sites against UN Effectiveness Criteria
36
standards at all locations. We aim to earn our
stakeholders’ confidence by implementing a high
standard of corporate governance and by main-
taining high standards of transparency and pre-
dictability.
▸ OMV is committed to implementing sustainable
procurement, which means caring about the en-
vironmental, social, and economic impacts of the
services and goods the Company intends to pur-
chase.
▸ Targets 2025:
▸ Be an active member of TfS and run sustainabil-
ity evaluations for all suppliers covering >80% of
Procurement spend
▸ Engage with suppliers covering 80% of Procure-
ment spend and assess their carbon footprint as
a foundation to define and run joint low-carbon
initiatives
▸ Promote awareness of ethical values and princi-
ples: conduct in-person or online business ethics
trainings for all employees
▸ Targets 2030:
▸ Extend sustainability evaluations to all suppliers
▸ Ensure all suppliers covering >80% of Procure-
covering 90% of Procurement spend
ment spend have carbon reduction targets in
place
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Climate Change
OMV recognizes climate change as one of the most im-
portant global challenges and fully supports the goals
set forth by the Paris Climate Change Agreement. OMV
integrates risks and opportunities related to climate
change impacts into the development of the Company’s
business strategy and the planning of operational activ-
ities. In this regard, OMV continuously improves the
carbon efficiency of its operations and product portfolio,
and is fully committed to supporting and accelerating
the energy transition. We aim to become a net-zero
business by 2050 or sooner.
OMV implements measures aimed at optimizing its op-
erational processes, increasing energy efficiency, re-
ducing flaring and venting, and reducing methane emis-
sions through leakage detection and improvement of
asset integrity. We will continue phasing out routine
flaring and venting as soon as possible, but no later
than 2030, as part of OMV’s commitment to the World
Bank’s “Zero routine flaring by 2030” initiative. For in-
stance, in Yemen, one of our most flaring-intense oper-
ations, we commissioned two gas engines for power
generation at the central processing facilities in Decem-
ber 2021. The gas engines will support the reduction of
flaring as they will consume gas which was previously
flared. They will also replace diesel generators, which
further reduces GHG emissions. We are also increas-
ingly turning to renewable sources of electricity to
power our operations. In 2021, Borealis installed its first
solar photovoltaic rooftop array for generating electricity
for production purposes at the Borealis plant in Monza
(Italy). The company has also signed long-term renew-
able energy supply deals for its assets in Sweden and
Belgium.
A cornerstone of our climate strategy is increasing the
share of zero-carbon products in our product portfolio
as well as decreasing fossil fuel sales. Oil and gas pro-
duction will be decreased to below 400 kboe/d by 2030.
OMV focuses on high-quality refinery products such as
low-emission premium fuels and feedstocks for the
chemical industry. We aim to increase polyolefins recy-
cling and gradually replace fossil polyolefins production
with production from biogenic feedstock. In addition, we
also plan to significantly increase sustainable and bi-
obased fuels and green gas sales, as well as build up
renewable electricity production to around 10.0 TWh
(including geothermal, solar/wind). We aim to step up
the production of renewable fuels and sustainable
chemical feedstocks to approximately 1.5 m t per year,
including producing and marketing at least 700,000 t of
sustainable aviation fuels per year.
For instance, OMV and Austrian Airlines (AUA) are pro-
ducing and using regional Sustainable Aviation Fuel
(SAF) in Austria. The two companies agreed on the
production and fueling of 1,500 t of SAF in the coming
year 2022. The use of 1,500 t of SAF by Austrian Air-
lines will reduce carbon emissions by around 3,750 t.
This is equal to the CO2 emissions of 333 Vienna–Lon-
don flights with a typical short to medium-haul AUA air-
craft (Airbus A320).
Our climate targets can only be achieved with consider-
able effort and capital allocation. OMV Group has ear-
marked investments of more than EUR 13 bn for this
purpose. All business units will build on existing
strengths and expertise in this transformation journey.
In 2021, OMV achieved an outstanding CDP Climate
Change score of A– (Leadership) for the sixth time in a
row. With its CDP Climate Change score, OMV is
among 20 companies in the global oil and gas sector
that achieved a leadership score and among the top 7
companies across all sectors in Austria.
Business principles and social responsi-
bility performance
Business ethics and compliance
OMV is a signatory to the UN Global Compact and has
a Code of Business Ethics in place that applies to all
employees. Although we are headquartered in Austria
– a country with high business ethics standards – we
operate in several countries in the Middle East, North
Africa, Asia-Pacific, and Central and Eastern Europe
that are defined as high risk by the Transparency Inter-
national Corruption Perception Index. We strive to
avoid the risks of bribery and corruption that are spe-
cific to our sector. We also highly value our reputation.
Therefore, our highest priority is ensuring uniform com-
pliance with our business ethics standards wherever
we operate. Compliance with ethical standards is a
non-negotiable value that supersedes any business in-
terest. Absolute commitment to this objective is embed-
ded at all levels at OMV from top management to every
employee. Our business partners are also expected to
share the same understanding of and commitment to
ethical standards. Every Company activity, from plan-
ning business strategy to daily operations, is assessed
for compliance with ethical standards, such as the
Code of Conduct and Code of Business Ethics.
A dedicated cross-regional compliance organization en-
sures that OMV standards are consistently met across
the Group. In 2021, 16,020 OMV Group employees
were trained in business ethics. This number is com-
37
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
posed of 9,020 e-learnings and 477 face-to-face train-
ings at OMV, and 5,996 CodeOne e-learnings and 527
in-person trainings at Borealis. The Integrity Platform
provides an anonymous whistleblower mechanism for
OMV employees and external stakeholders, such as
suppliers. They can use this platform to report issues
relating to corruption, bribes, conflicts of interest, anti-
trust law, or capital market law. In 2021, the scope of
the Integrity Platform was expanded, and the platform
can now also be used to make reports of perceived vio-
lations in the following legal areas: public procurement,
environmental protection, product and food safety and
consumer protection, corporate tax regulations, and
data protection.
Supplier Compliance
Implementing sustainable procurement means caring
about the environmental, social, and economic impacts
of the goods and services the Company intends to pur-
chase. OMV has a Code of Conduct in place that en-
sures that suppliers support OMV’s principles. It is of
paramount importance to our organization to be fully
compliant with all applicable legal requirements, as well
as with our internal safety, environmental protection,
and human rights standards while managing our supply
chain. OMV has a process in place to ensure that par-
ties sanctioned by the EU or international organiza-
tions, such as the United Nations, are not accepted as
procurement partners.
To mitigate supply chain risks including forced labor,
slavery, human trafficking, and corruption, OMV im-
poses the legal requirements and internal rules and
standards applicable to OMV on its suppliers. Our sup-
pliers and supply chain partners are obligated to sign
and fully comply with the content of the Code of Con-
duct. In addition, our suppliers must accept the General
Conditions of Purchase, which further detail our busi-
ness standards (e.g., labor rights), as an integral part of
our contractual agreements. OMV reserves the right to
terminate relationships with suppliers if non-compliance
is discovered or not addressed in a timely manner.
Supplier prequalification is a part of pre-contractual ac-
tivities during which OMV collects information from a
potential supplier for the purpose of evaluating compli-
ance with our HSSE and other sustainability require-
ments. The goal of the prequalification process is to
screen potential suppliers before bringing them on
board or during the tender stage to ensure that only
those suppliers who meet our HSSE and sustainability
standards can be considered for future collaboration.
Following prequalification, Procurement together with
business representatives select the best suppliers
based on a predefined set of commercial, legal, HSSE,
and technical criteria during a tender process. In 2021,
we started embedding sustainability elements into the
evaluation matrix (e.g., technologically innovative ele-
ments, carbon emissions, energy efficiency KPIs) in
several pilot projects.
OMV conducts supplier audits as part of the prequalifi-
cation process and/or during contract execution. The
aim of the audits is to measure the performance of our
suppliers and define actions that will enable them to op-
timize their performance and meet OMV requirements.
Among the focus areas of the audits are the financial
stability of our suppliers, their strategy and organiza-
tion, and the supply chain sustainability (e.g., human
rights, carbon management, environmental manage-
ment, certifications, and social responsibility). In 2021,
we added a new cybersecurity dimension to our sup-
plier audits. We also perform yearly subject-specific au-
dits on topics such as process safety, quality, and effi-
ciency.
In 2021, OMV joined Together for Sustainability (TfS)
and expanded the membership held by Borealis since
2017 to Group level. Together for Sustainability, a joint
initiative and global network of 34 chemical companies,
sets the de facto global standard for environmental, so-
cial, and governance performance of chemical supply
chains. The TfS program is based on the UN Global
Compact and Responsible Care® principles.
OMV aims to build on Borealis’ expertise and cover a
broader range of ESG assessments of our suppliers in
the coming years. Becoming a TfS member will help
OMV to further embed sustainability in day-to-day busi-
ness operations and cascade sustainability require-
ments in our supply chain.
We aim to continuously manage and decrease the car-
bon emissions of our purchased goods and services.
For this reason, OMV became a CDP Supply Chain
member in 2021. As part of CDP Supply Chain, OMV
invited around 140 suppliers to answer the CDP Cli-
mate Change questionnaire in 2021. In addition to re-
porting their emissions, we asked the suppliers whether
they have carbon reduction targets in place and invited
them to share with us any initiatives or projects to re-
duce carbon emissions in which they would like us to
participate. A total of 63% of suppliers assessed by
CDP Supply Chain have declared that they have cli-
mate targets in place.
38
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Community Relations and Development
OMV maintains an active partnership with local commu-
nities in all countries in which the Company does busi-
ness and is committed to adding value to these socie-
ties. As part of OMV’s stakeholder dialogue, we have
implemented community grievance mechanisms at all
operating sites. In 2021, OMV registered 884 griev-
ances (2020: 812) from the community grievance
mechanisms. All of the grievances were handled in ac-
cordance with OMV’s localized Community Grievance
Management (CGM) procedures, which stipulate a
stringent approach to systematically receiving, docu-
menting, addressing, and resolving grievances in all of
the countries where we operate.
OMV has set the goal of aligning the CGM system at all
sites with the effectiveness criteria of the United Na-
tions Guiding Principles. We are striving to achieve this
target by conducting assessments that include reviews
of management processes and consultations with inter-
nal and external stakeholders. The assessments result
in recommendations and tailored action plans to im-
prove grievance management at site level. The action
plans are implemented by local management and moni-
tored by headquarters. The sites already assessed rep-
resent 99% of all registered grievances at OMV in
2021.
For more information about OMV’s Environmental, Social,
and Governance (ESG) ratings and the indices in which
OMV is included, see the chapter OMV on the Capital Mar-
kets.
For management approaches and performance details for
all material topics, see the stand-alone OMV Sustainability
Report. This report also serves as the separate consoli-
dated non-financial report of OMV Aktiengesellschaft in ac-
cordance with section 267a of the Austrian Commercial
Code (UGB).
Human Rights
Human rights are universal values that guide our con-
duct in every aspect of our activities. Our responsibili-
ties in the area of human rights include, but are not lim-
ited to, equality and non-discrimination, decent wages,
working hours, employee representation, security, pri-
mary healthcare, labor rights in the supply chain, edu-
cation, poverty reduction, land rights, and free, prior,
and informed consultation. OMV respects and supports
human rights as described in the Universal Declaration
of Human Rights and in internationally recognized trea-
ties, including those of the International Labour Organi-
zation (ILO). We have been a signatory to the UN
Global Compact since 2003 and are fully committed to
the UN Guiding Principles on Business and Human
Rights and the OECD Guidelines for Multinational En-
terprises. We fully support the aims of the UK Modern
Slavery Act 2015 and are committed to operating our
business and supply chain free of forced labor, slavery,
and human trafficking. OMV considers human rights to
be an important aspect of our risk management ap-
proach, which is integrated into our decision-making
processes. OMV recognizes its responsibility to re-
spect, fulfill, and support human rights in all business
activities and to ensure that OMV does not become
complicit in any human rights abuses as defined under
current international law.
We conduct human rights risk assessments at country
level to identify and assess ongoing and emerging hu-
man rights impacts and the resulting potential risks rel-
evant to OMV business activities in the country in order
to prevent and mitigate human rights risks and impacts.
A total of 980 employees received training on human
rights topics through the e-learning tool and in-person
training sessions (2020: 2,304). As professional training
is essential to ensure compliance with our human rights
commitment, we have set ourselves the goal of training
all employees in human rights topics by 2025. In addi-
tion, internal awareness campaigns on human rights
were implemented. In 2021, seven incidents of human
rights grievances were reported (2020: 0), related to
aspects such as working hours and rest times and al-
leged cases of bullying, harassment, defamation, unfair
treatment and disrespectful behavior.
39
OMV ANNUAL REPORT 2021 / 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 climate change mitigation are
essential for attaining OMV’s HSSE vision of “ZERO harm – NO losses.”
The HSSE performance of Refining & Marketing in
2021 was overshadowed by a road accident resulting in
a fatality of a contractor employee. Efforts therefore
went into a broad awareness campaign about road
transportation safety and the development of an en-
hanced framework of safety requirements for future lo-
gistics contractors. Another focus area was the imple-
mentation of the process safety roadmap including two
external process safety management assessments in
the refineries. We encountered 23 HiPos. The TRIR in
2021 was 0.56 (2020: 0.59). Special emphasis during
the year was placed on leadership engagement, safety
culture, contractor management, and training on vari-
ous emergency and crisis management scenarios.
In Chemicals & Materials, OMV Group’s definitions and
incident reporting criteria were fully rolled out to Bore-
alis. These are more stringent than those used previ-
ously. The business division achieved a TRIR of 2.24
(2020, Borealis only: 3.89). Occupational safety initia-
tives focused on further rolling out a virtual Life Saving
Rules training, preventing employees from becoming
infected with COVID-19, and achieving ISO 45001 cer-
tification for Borealis. Regarding process safety, the fo-
cus was on introducing the Process Safety Rules, start-
ing a Quantitative Risk Assessment Study for hydrocar-
bon processing activities at Porvoo and developing a
concept to improve quality of process hazard assess-
ments. Borealis continued the positive downward trend
of process safety events from 19 in 2020 to 16 in 2021.
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
2021
2020
0.70
1.18
0.51
0.85
0.57
0.96
0.43
0.83
0.27
0.48
0.32
0.60
HSSE Strategy
To achieve this vision, OMV Group’s HSSE Strategy
was established as an integral part of the OMV
Sustainability Strategy. The HSSE Strategy focuses on
the cross-functional goals of strong HSSE commitment
and leadership, increased efficiency and effectiveness
of HSSE processes, management of HSSE risks, and
skilled people, as well as subject matter goals in the
areas of
grated health management
▸ Health: improve the ability to work through inte-
▸ Safety: build on sustainable safety for people and
▸ Security: protect people, assets, and reputation
▸ Environment: minimize the environmental footprint
from emerging malicious intentional threats
plants
throughout the entire lifecycle of activities
Health, safety, and security
In 2021, the combined Lost-Time Injury Rate (LTIR) for
OMV employees and contractors was 0.57 (2020:
0.32), and our combined Total Recordable Injury Rate
(TRIR) was 0.96 (2020: 0.60). We are deeply con-
cerned about three work-related fatalities, all three re-
lated to road transportation activities of contractor com-
panies in Austria and Romania. Managing the COVID-
19 pandemic remained a high priority in 2021 on top of
routine HSSE management. We focused primarily on
learning from incidents throughout the whole Company:
Videos, alerts, and communication campaigns were
used to reach out to all employees.
In Exploration & Production, the TRIR was 0.92 (2020:
0.58). Tragically, two contractor employees died in two
fatal work accidents in 2021. We also encountered 19
High Potential Incidents (HiPos) that could have re-
sulted in serious or even fatal injuries under slightly dif-
ferent circumstances. All fatalities and HiPos have
been thoroughly investigated, and measures were put
in place to prevent reoccurrence. Contractor manage-
ment was and continues to be a focus area in our
HSSE efforts. We continued to focus on process safety
management, and various initiatives ensured the relia-
bility of production.
40
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Employee wellbeing and health are the foundation for
successful company performance as they are core ele-
ments of ensuring the ability to work. The year 2021
was dominated by the worldwide COVID-19 pandemic.
Our medical teams and service providers were chal-
lenged to support the emergency management teams
in updating and implementing pandemic preparedness
plans, guidelines, and health information while also
supporting COVID-19-infected employees at home and
in hospitals. In addition, OMV continued its long tradi-
tion of offering healthcare and preventive health pro-
grams, such as cardiovascular disease prevention pro-
grams, voluntary health checks, vaccinations (mainly
flu and in some countries COVID-19), and virtual health
hours, which far exceed local statutory requirements.
During 2021, the COVID-19 pandemic also brought sig-
nificant challenges to safety management. At opera-
tional level, we implemented preventive and business-
continuity-related measures such as strictly separated
teams in key areas, hygiene measures, and constant
awareness building. Despite travel limitations and
thanks to digital communication and collaboration tools,
we conducted several key safety-related activities:
▸ We continued broad communication about the Life
Saving Rules by means of videos with senior man-
agement statements to remind our employees
about simple rules to prevent the hazards that have
the greatest potential to cause serious injuries.
▸ All incidents at level 3 and above and HiPos were
investigated, and lessons-learned reports were
communicated throughout the organization.
Improvement initiatives were developed and closely
monitored with our HSSE reporting tool Synergi.
▸ As part of our Safety Culture program, we con-
ducted several workshops on “making HSSE per-
sonal” at different levels of the organization. The
half-yearly meetings with the program owner were
conducted online.
▸ Contractor HSSE management is key to OMV
Group’s safety performance. We updated our
group-wide regulation and continued training of
beneficiaries and procurement staff on the internal
regulations framework. We conducted strategic
supplier meetings with the main contractors to
share information, experience, and expectations.
▸ We further developed a harmonized set of KPIs and
a dashboard for process safety. We supported and
followed up on the implementation of process
safety road maps in our ventures, assets, and refin-
eries. In our new Integrated Risk Register, we im-
plemented a novel approach for analyzing and pri-
oritizing process safety risks in order to ensure that
investments effectively lead to a significant reduc-
tion of risks. The OMV Group process safety net-
work, a large online collaboration platform, grew
further (>200 participants), and gathered quarterly
to exchange information and experiences in virtual
meetings. Senior management also attended.
▸ We undertook a deep analysis and review of
15 group-wide effective HSSE regulations and our
cloud-based HSSE reporting tool in order to pre-
pare and achieve progress on a systematic align-
ment between OMV Group and Borealis.
An unstable geopolitical environment combined with
complex and enduring regional conflicts remained a
consistent security focus throughout 2021. Corporate
Security continued to monitor these geopolitical situa-
tions, accelerating OMV’s understanding of strategic
events, to proactively identify any emergent threat that
might intersect with business planning. This included
incidents of armed conflict, civil unrest, targeted activ-
ism, and criminality at local, national, regional, and in-
ternational levels.
Our crisis management and resilience procedures as-
sisted in the effective management of the COVID-19
pandemic in 2021. Local Emergency Management
Teams worked closely with their corporate counterparts
to ensure local responses aligned with the Company’s
pandemic strategy.
We updated our proven security management system
in 2021, enabling us to anticipate or respond to a broad
spectrum of geopolitical, regional, or isolated security
incidents. The security risk assessment platform contin-
ued to provide real-time oversight of asset risk expo-
sure levels as influenced by geopolitical or security
events. Despite various geopolitical and pandemic
challenges, Corporate Security continued to deliver
global operational support, governance, and oversight,
and will maintain a comparable and effective security
strategy allowing OMV to operate despite converging
asymmetric threats.
OMV is committed to upholding human rights in all ac-
tivities. To this end, OMV aims to join the Voluntary
Principles on Security and Human Rights (VPSHR), an
initiative focused on human rights, public safety and se-
curity, and the interaction between companies and pri-
vate and public security. Corporate Security will under-
take a VPSHR pre-qualification review to determine the
feasibility of attaining full accreditation in the coming
years.
41
▸ OMV Petrom completed the surface abandonment
of 718 wells and 30 facilities in the E&P division. A
total of 184,000 t of contaminated soil were treated
in our bioremediation plants, and 14,500 t of metal-
lic scrap were recycled by authorized companies.
▸ The modernization of the Ghercești tank farm at
Asset Oltenia was completed, including the
installation of two new tanks with a vapor recovery
system. In addition to the optimization of the oil
treatment process, environmental impacts were
reduced considerably (VOC emissions). The
improved water system will save up to 5,000 m³
water per year.
▸ Borealis became a member of the UN Global Com-
pact and signed the UN Sustainable Ocean Princi-
ples. These commit companies to restoring and
maintaining a healthy and productive ocean. More-
over, Borealis has initiated Project STOP, a pio-
neering program to support cities in developing and
emerging countries to establish cost efficient, effec-
tive, and more circular waste collection systems.
Read more on the Project STOP website.
▸ We continued to implement biodiversity initiatives,
such as our green areas project in arid locations in
Tunisia. Starting by planting 512 trees in Waha in
2020, we continued expanding to Nawara with
1,200 trees in 2021. The project includes an irriga-
tion system. The goal is to provide recreation areas
to improve the wellbeing of personnel and visitors,
and to promote forestation.
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Environmental management
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 management. OMV aims to opti-
mize processes to use natural resources as efficiently
as possible and to reduce emissions and discharges.
In 2021, there were 3 major hydrocarbon spills (level 3
out of five levels; 2020: 2). The total volume of hydro-
carbon spilled increased compared to the previous
year. OMV continues to improve its oil spill response
preparedness and capabilities.
Key environmental actions and achievements in 2021:
▸ Our operations in Yemen implemented new water
management plans. The wastewater treatment
plants were upgraded, now allowing the treated wa-
ter to be used for irrigation in a very arid environ-
ment.
▸ At the Schwechat refinery, more than
800,000 m3/year of water, which is equivalent to
more than 5% of average annual water consump-
tion, are being conserved, most of it from a new
control concept for the cooling water in a heat ex-
changer group in the ethylene plant.
▸ At the Petrobrazi refinery, the tank modernization
program continued with the installation of internal
floating membranes or double sealing of six product
tanks and the commissioning of one new tank,
contributing to the reduction of volatile oganic
compounds (VOC).
42
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Employees
We know that it is the combined 22,400 employees of OMV who turn the Group’s strategy into results and
success. We are proud of the results 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.
tricks for improving virtual teams through the use of
technology. Learning Collections were provided to as-
sist employees with leadership during times of crisis as
well as managing stress and virtual work. Information
and advice are regularly provided on all employee-rele-
vant questions. Free psychological support was offered
to all employees, enabling them to talk to a professional
about coping with the pandemic. Based on the wish ex-
pressed by our staff to keep working from home as the
“new normal,” a flexible home office policy was intro-
duced in 2021.
In 2020, we introduced an employee engagement strat-
egy whereby we check in with our employees on how
they are doing and how they are dealing with the pan-
demic situation. With the second OMV quick poll
launched at the end of 2021, we wanted to further
strengthen the culture of listening in our company and
gather feedback on diversity, equal opportunities, and
an inclusive environment at OMV. The poll’s findings
will play an important part in developing our new
Group-wide Diversity, Equity, and Inclusion Strategy
for 2030.
In 2021, there was a focus on mandatory, legally bind-
ing, business-critical, and low-cost learning consisting
of e-learning, online learning through our partnership
with LinkedIn Learning, and virtual courses/webinars.
Leadership training focused on first-time leaders,
women in leadership, and managing remote and hybrid
teams. Another priority was supporting staff in develop-
ing their virtual skills, for example by offering virtual fa-
cilitation courses. In terms of business skills, the focus
was on sales training and, as before, on graduating
new cohorts from our Integrated Graduate Develop-
ment (IGD) Program.
OMV’s People Strategy
In 2021, the COVID-19 situation again required consid-
erable additional focus from our organization’s HR
function. We continue to build on our strategic priorities
to unlock our organization’s full potential and to
strengthen the foundation for growth and success:
▸ Increase engagement with employees
▸ Increase organizational agility
▸ Increase focus on diversity and inclusion
▸ Ensure OMV remains a great place to work
Highlights of 2021
Our employees once again showed outstanding flexibil-
ity and commitment to the Company in this challenging
year marked by COVID-19. During the coronavirus
pandemic, many new employment-related measures
were implemented to protect the health, well-being, and
economic situation of our employees. By closely moni-
toring the constant legislative output, we succeeded in
maintaining full labor law compliance while also offering
our staff new options to help with their pandemic-in-
duced personal situations and needs. Employees were
offered various new solutions (depending on the local
jurisdiction) to combine work duties and care obliga-
tions more flexibly. All employees were provided the
option to work from home where practically and techni-
cally feasible.
We developed virtual collaboration programs and re-
mote leadership capabilities to ensure organizational
agility and excellence and to make OMV a great place
to work during these challenging times. Our new man-
ager training was delivered completely virtually, and a
new program called Remote Leadership supported our
executives and managers in managing remote teams of
employees either working from home or in a different
country. OMV’s culture and performance were safe-
guarded by growing our leaders’ virtual and remote col-
laboration skills. We developed the Working from Home
Guide, which is an online guide containing tips and
43
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Number of training participants1,2
Diversity
During 2021, OMV continued to be strongly committed
to delivering its Diversity Strategy. Dedicated diversity
targets were established in 2018 as part of our
Sustainability Strategy 2025. This enabled us to set
clear commitments in this area and measure
improvement in the two main focus areas defined:
Gender Equality and Internationality. Our focus on
diversity is also being actively nurtured throughout the
organization today, supported by a range of trainings,
activities, and awareness campaigns, including a
Diversity & Inclusion Week held in March and built
around International Women’s Day. We also continued
our series of online events with external guest speakers
on relevant diversity topics such as remote leadership,
working across cultures, and the intersection of
inclusion and technology.
We designed and implemented targeted training pro-
grams, such as SHEnergy, a blended-learning program
for women at OMV, to support women’s leadership skills.
The program focuses on active inclusion skills and also
emphasizes the power of mentoring and networking in
developing female leaders.
As a result, the percentage of women in the Group is
about 27% (2020: 25%). A total of 20.9% (2020: 20.7%;
excluding Borealis) of employees in management and
executive positions are female.
Austria
Romania/Rest of Europe
Middle East/Africa
Rest of the World
Total
20213
5,632
13,762
709
784
20,887
20204
3,662
10,914
769
699
16,044
Money spent on training per region1
In EUR
Austria
Romania/Rest of Europe
Middle East/Africa
Rest of the World
Total
20213
2,672,471
5,094,527
342,242
243,485
8,352,725
20204
1,512,514
2,477,244
134,197
225,262
4,349,217
1 Excluding conferences and trainings for external employees
2 Number of employees who received at least one training
3 Excluding DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft., SapuraOMV
Upstream, DYM Solutions, MTM, Ecoplast and Rosier
4 Excluding Avanti GmbH, Borealis Group, DUNATÀR Köolajtermék Tároló és
Kereskedelmi Kft. Gas Connect Austria GmbH, and SapuraOMV Upstream
In 2021, we launched the New Parent Program in
Austria focused on equipping future parents with
information on parental leave and part-time models,
the related long-term financial aspects, and things to
consider when returning to work. The program’s target
group includes male as well as female employees to
encourage more equal distribution of childcare
responsibilities.
We are working on new HR strategies and a new HR
purpose in line with the Company’s new strategy. Over
the past year, the HR teams from OMV Petrom, OMV,
and Borealis have collaborated increasingly to share
best practices and find a common way forward. Great
synergies have been unlocked in recruitment, provider
sharing (e.g., LinkedIn digital learning), and training
programs on the oil, gas, and chemical industries.
44
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Employee key figures
At the end of 2021, OMV Group employed 22,434 per-
sons. Compared with 2020, the number of employees
decreased by 11.30%.
Employees
Employees by region
Austria
Rest of Europe
Middle East & Africa
Rest of the World
Borealis Group
Total number of employees
Diversity
Female
Male
Female Executives
Number of nationalities
20211
2020
5,762
15,074
634
964
–
22,434
3,938
12,539
587
974
7,253
25,291
in %
in %
in %
27
73
152
25
75
153
101
1014
1 Regional split available for OMV Group including Borealis as of January 1, 2021
2 Executives include OMV Senior Vice Presidents and OMV Petrom and Borealis Group Board members
3 Excluding Avanti GmbH, Borealis Group, DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft. Gas Connect Austria GmbH, and SapuraOMV Upstream
4 Excluding Avanti GmbH, DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft. Gas Connect Austria GmbH, and SapuraOMV Upstream
45
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
OMV Group Business Year
In 2021, OMV recorded a clean CCS Operating Result of EUR 6.0 bn, representing the highest clean CCS
Operating Result in OMV’s history. Furthermore, an all-time record cash flow from operating activities
excluding net working capital effects of EUR 8.9 bn was achieved, leading OMV to a whole new level of
cash generation. As a consequence organic free cash flow before dividends came in at EUR 4.5 bn,
stemming from a strong operational performance coupled with a positive market environment.
Business environment
After the exceptional situation in 2020 marked by
COVID-19, the world developed along a solid economic
recovery path. Nevertheless, the year was shaped by
unequal vaccination access and differing vaccination
rates, new and more infectious COVID-19 mutations
(Delta and Omicron), recurring regional lockdown peri-
ods, and strong economic policy support.
Many raw materials and commodities were impacted by
global supply and demand disruptions, leading to ex-
ceptionally tight markets and significantly elevated
prices. After more than seven years, inflation reached
new highs and raised concerns about loose monetary
policy and interest rates. In 2022, significant uncertainty
remains, and the global pandemic will continue to have
an adverse effect on the economy. Climate change and
global decarbonization policies gained more political
momentum, showing the need for a smooth energy
transition in the mid to long run.
Global economic output increased by 5.9% in 2021
(– 3.1% in 2020), surpassing pre-crisis levels based on
a strong economic recovery in Asia. All sectors reliant
on contact-intensive interactions (tourism, travel,
hospitality, culture, and entertainment) recovered partly
but remained adversely affected. Employment in
advanced economies was strongly impacted by short-
to medium-term containment measures but recovered
nearly fully to 2019 levels thanks to strong economic
policy support.
Global trade rebounded by more than 9% in 2021 (after
–8.2% in 2020). Developments were influenced by sub-
stantial distortions along global supply chains with ex-
traordinary implications on industrial production and
trade in various sectors.
The varying regional speed of pandemic waves has led
to huge disparities in economic performance on differ-
ent continents. In Europe, the economic recovery path
was significantly impacted by containment effects with
Eurozone’s gross domestic product (GDP) increasing
by 5.2% in 2021 (after –6.4% in 2020) but still lagging
behind pre-crisis levels. In the emerging and develop-
ing Asian countries, this figure grew by 7.2% (after
– 0.9% in 2020), especially due to rigorous vaccination,
quarantine, and contact tracing measures and enabled
a return to pre-crisis growth levels.
The economic environment in Central and Eastern
European countries kept pace with the EU average,
with GDP increasing between 2.7% (Germany) and
7.2% (Croatia), mostly above 2019 levels. The
difference in GDP growth rates can also be attributed to
the differing regional duration and scale of lockdowns
and sector composition in country’s GDP. Massive
government spending in all countries supported the
economic recovery, however this increased national
debt to record levels.
Germany’s GDP increased by 2.7% in 2021. This was
the result of domestic COVID-19 restrictions as well as
disruptions in raw material imports impacting the indus-
try sector (especially the automotive industry). In Aus-
tria, GDP grew by 4.1% in 2021 amid stronger lock-
down restrictions and the affected tourism and service
sectors accounting for a larger share of the economy.
Romania’s economy expanded by 6.8% based on the
recovery of the industrial sector and the continued
strengthening of the service sector (especially retail,
transportation, and information and telecommunica-
tions).
Inflation rates have increased rapidly worldwide. Euro-
zone inflation stood at an average of 2.2% in 2021 and
showed monthly peaks in the fourth quarter of 2021,
while US inflation rose to levels around 7% at the end
of 2021. In most cases, rising inflation reflects pan-
demic-related supply/demand mismatches and higher
commodity prices compared to their low baseline from
a year ago.
In 2021, global oil demand recovered by 5.6 mn bbl/d.
However, it is still 3% below 2019 levels. As a result of
the continental divergence of COVID-19 pandemic
waves, the Asian continent has already surpassed pre-
crisis level in 2021, in contrast to many other countries,
which remain below 2019 levels. European oil demand
grew by 0.7 mn bbl/d in 2021.All major oil products saw
growth in 2021 as soon as COVID-19 containment re-
strictions were eased. Road transportation fuels, includ-
ing gasoline and gasoil/diesel increased by around 3.1
mn bbl/d globally and jet fuel/kerosene recovered
slowly by 0.5 mn bbl/d with air travel and mobility re-
strictions still in effect. It will take at least until 2022 for
46
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
(+ 3.2% compared to 2020), with demand for fuels up
and demand for heating oil decreasing due to the re-
bounding price levels and declining stocks. The Roma-
nian oil product market grew faster than the EU aver-
age by 7.4% compared to 2020.
Low commodity prices and an unstable financial and li-
quidity environment continued to trigger reduced oil and
gas investments in 2021 (approximately –30% com-
pared to 2019). This trend will most likely have to be
compensated for in the coming years to ensure the re-
quired oil and gas production for covering future global
oil demand.
Global demand for natural gas recovered above pre-cri-
sis levels in 2021. However, the global natural gas sup-
ply (mainly LNG exports) continued to rise significantly,
stimulated by an investment cycle in recent years. In
the first half of 2021, Asian demand exceeded expecta-
tions due to a cold winter and a strong economy, and
led to tight markets globally. In Europe, gas prices
soared to new levels of around EUR 40/MWh during
the summer period. The combination of low storage
volumes and tight supply conditions to Europe esca-
lated during autumn and led to record natural gas
prices of EUR >180/MWh before year-end. Moreover,
Nord Stream 2, a new supply corridor to Europe, has
not been put into operation. Overall, the average CEGH
gas price was roughly EUR 46/MWh 2021.
In Austria, natural gas demand grew by 7.3% in 2021,
while natural gas imports and domestic production
dropped by –8.5% and –11.5%, respectively. This was
compensated for by higher storage withdrawal rates
(+50%), in particular due to a temporary cold spell in
late spring.
jet demand to return to 2019 levels when global tourism
fully recovers.
Increasing oil output kept pace with the global demand
recovery, helped by a clear steer of the OPEC+ alli-
ance. OPEC+ member states agreed to a stepwise nor-
malization of oil production throughout 2021, which was
implemented with a high production compliance rate
and supported by geopolitical constraints in some
countries. Most of OPEC supply growth came from
Saudi Arabia and Libya, which rapidly increased pro-
duction after domestic constraints. US crude oil produc-
tion was up slightly in 2021, however, a production time
lag following an increasing rig count is expected to ma-
terialize in 2022 (still limited by shareholder expecta-
tions and financial limitations). Whereas Iran and Vene-
zuela remained affected by US sanctions and infra-
structure constraints, Iran nevertheless was able to in-
crease its production by a sizeable measure relative to
the 2020 average.
The price of Brent crude increased from around
USD 55/bbl at the beginning of 2021 to some
USD 74/bbl by the end of the year, driven by the global
recovery of economic activity, particularly in Asia, and
effective OPEC+ supply management. This was also
fueled by the positive sentiment around vaccination roll-
out programs and economic stimulus measures in
many countries. New infection waves and mutations of
COVID-19 confirmed the uncertainty about the recov-
ery path and led to short-term market volatility. Overall,
the average Brent crude price was nearly USD 71/bbl
in 2021.
Oil product demand in the Central and Southeast Euro-
pean countries relevant to OMV followed the European
recovery trend. Transportation fuel demand grew by
around 3.6% for gasoline and diesel and by more than
27% for jet fuel in the relevant markets in 2021. Aus-
tria’s market volume reached more than 10 mn t
Crude price (Brent) – monthly average
In USD/bbl
47
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Financial review of the year
Key financials
In EUR mn (unless otherwise stated)
Sales revenues1
Clean CCS Operating Result2
Clean Operating Result Exploration & Production2
Clean CCS Operating Result Refining & Marketing2
Clean CCS Operating Result Chemicals & Materials2
Clean Operating Result Corporate & Other2
Consolidation: elimination of inter-segmental profits
Clean CCS Group tax rate
Clean CCS net income2
Clean CCS net income attributable to stockholders of the parent2,3
Clean CCS EPS2
Special items4
thereof Exploration & Production
thereof Refining & Marketing
thereof Chemicals & Materials
thereof Corporate & Other
CCS effects: inventory holding gains/(losses)
Operating Result Group
Operating Result Exploration & Production
Operating Result Refining & Marketing
Operating Result Chemicals & Materials
Operating Result Corporate & Other
Consolidation: elimination of inter-segmental profits
Net financial result
Group tax rate
Net income
Net income attributable to stockholders3
Earnings Per Share (EPS)
Cash flow from operating activities
Free cash flow before dividends
Free cash flow after dividends
Organic free cash flow before dividends5
Organic free cash flow after dividends
Gearing ratio excluding leases
Leverage ratio
Capital expenditure6
Organic capital expenditure7
Clean CCS ROACE
ROACE
2021
2020
16,550
in EUR mn
in EUR mn
35,555
5,961
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
in EUR mn
in EUR mn
in EUR
2,837
1,001
2,224
(62)
(39)
36
3,710
2,866
8.77
1,686
145
996
519
(47)
74
32
1,026
679
2.08
Δ
115%
n.m.
n.m.
1%
n.m.
(31)%
n.m.
4
n.m.
n.m.
n.m.
in EUR mn
(1,315)
(220)
n.m.
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 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 %
in %
in EUR mn
in EUR mn
in %
in %
(398)
(509)
(396)
(12)
418
5,065
2,439
922
1,828
(74)
(51)
(194)
42
2,804
2,093
6.40
7,017
5,196
4,199
4,536
3,539
22
21
2,691
2,650
13
10
(1,282)
22
1,049
(9)
(416)
1,050
(1,137)
592
1,568
(56)
83
(175)
(69)
1,478
1,258
3.85
3,137
(2,811)
(3,690)
1,273
394
41
32
6,048
1,884
5
8
69%
n.m.
n.m.
n.m.
n.m.
n.m.
n.m.
56%
17%
(33)%
n.m.
(11)%
111%
90%
66%
66%
124%
n.m.
n.m.
n.m.
n.m.
(19)
(11)
(56)%
41%
8
2
1 Sales revenues excluding petroleum excise tax
2 Adjusted for special items and CCS effects; further information can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements
3 After deducting net income attributable to hybrid capital owners and net income attributable to non-controlling interests
4 The disclosure of special items is considered appropriate in order to facilitate the analysis of the ordinary business performance. To reflect comparable figures,
certain items affecting the result are added back or deducted. Special items from equity-accounted companies and temporary hedging effects for material trans-
actions are included.
5 Organic free cash flow before dividends is cash flow from operating activities less cash flow from investing activities excluding disposals and material inorganic
cash flow components (e.g., acquisitions)
6 Capital expenditure including acquisitions
7 Organic capital expenditure is defined as capital expenditure including capitalized exploration and appraisal expenditure and excluding acquisitions and contin-
gent considerations.
48
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Notes to key financials
Clean CCS Operating Result
Special items and CCS effects
In EUR mn
Clean CCS Operating Result1
Special items
thereof: personnel restructuring
thereof: unscheduled depreciation / write-ups
thereof: asset disposal
thereof: other
CCS effects: inventory holding gains/(losses)
Operating Result Group
1 Adjusted for special items and CCS effects
Clean CCS Operating Result
In EUR mn
Clean CCS Group tax rate
In EUR mn
2021
5,961
(1,315)
(30)
(1,297)
223
(210)
418
5,065
2020
1,686
(220)
(39)
(1,084)
19
885
(416)
1,050
Δ
n.m.
n.m.
22%
(20)%
n.m.
n.m.
n.m.
n.m.
Operating Result adjusted for special items and CCS
effects, details of which are depicted in the table on the
left.
2021 performance:
With almost EUR 6 bn OMV achieved an all-time record
clean CCS Operating Result in 2021. All three business
segments contributed significantly based on a strong
operational performance, a favorable market environ-
ment as well as a result of the full consolidation of Bo-
realis.
Group tax rate adjusted for special items and CCS ef-
fects. It represents the average rate at which the
Group's profit before tax is taxed.
2021 performance:
Coming in at 36% the clean CCS Group tax rate in-
creased by 4 percentage points compared to 32% in
the previous year, stemming from an increased contri-
bution from Exploration & Production, in particular from
countries with a high tax regime.
49
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Clean CCS net income attributable to stockholders
In EUR mn
Gearing ratio excl. leases & leverage ratio
In EUR mn
Clean CCS ROACE
In EUR mn
50
Net income attributable to stockholders, adjusted for
the after-tax effect of special items and CCS.
2021 performance:
The clean CCS net income attributable to stockholders
in the amount of EUR 2.9 bn increased significantly
compared to EUR 679 mn in 2020 following the strong
Operating Result.
Net debt (interest-bearing debts including bonds less
liquid funds) excluding leases divided by equity, ex-
pressed as a percentage. The leverage ratio is calcu-
lated by dividing net debt incl. leases through equity
plus net debt incl. leases.
2021 performance:
OMV's strong financial performance as well as the suc-
cessful divestment program have led to a continuous
deleveraging throughout the year, resulting in a gearing
ratio excluding leases of 22%, thus even surpassing
the target level of 30%.
The clean CCS Return on Average Capital Employed
(%) is calculated as Net Operating Profit After Tax
(NOPAT - as a sum of current and last three quarters)
adjusted for the after-tax effect of special items and
CCS, divided by average capital employed (equity in-
cluding non-controlling interests plus net debt).
2021 performance:
Driven by an outstanding operational performance
OMV was able to deliver a record clean CCS NOPAT of
EUR 3.8 bn, thus further increasing the clean CCS RO-
ACE up to 13% in 2021 despite higher average capital
employed.
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Cash flow from operating activities excl.
net working capital effects
In EUR mn
Organic free cash flow
In EUR mn
Organic capital expenditure
In EUR mn
Amount of cash OMV Group generates through its ordi-
nary business activities which excludes effects from net
working capital positions
2021 performance:
The all-time record operating cash flow excl. net work-
ing capital effects came in at EUR 8.9 bn well above
the EUR 2.8 bn from 2020, mainly due to a strong oper-
ational performance, a favorable market environment
as well as higher dividend contributions from equity-ac-
counted investments and the contribution from the fully
consolidated Borealis.
Amount by which operating cash flow exceeds its work-
ing capital needs and capital expenditures. The organic
free cash flow after dividends is cash flow from operat-
ing activities less cash flow from investing activities ex-
cluding disposals and material inorganic cash flow
components (e.g. acquisitions).
2021 performance:
A record organic free cash flow before dividends of
EUR 4.5 bn was recorded in 2021, thus being consider-
ably above prior years level. This was mainly due to the
outstanding cash flow from operating activities in 2021.
The amount is defined as capital expenditure including
capitalized exploration and appraisal expenditure, ex-
cluding equity injections into at-equity and fully consoli-
dated companies, acquisitions and contingent consider-
ations.
2021 performance:
Organic capital expenditure increased by 41% to
EUR 2.6 bn compared to EUR 1.9 bn in 2020, mainly
due to the full consolidation of Borealis.
51
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Capital Expenditure (CAPEX)
Total CAPEX
In EUR mn
The increase in Exploration & Production CAPEX
was mainly related to investments in Norway, New
Zealand and Malaysia.
The increase in Refining & Marketing CAPEX was
driven by investments in the European refineries and
retail stations.
Chemicals & Materials CAPEX decreased as capital
expenditure in 2020 was mainly related to the acquisi-
tion of an additional 39% stake in Borealis, yet, besides
the effect from the Borealis acquisition, Chemicals &
Materials CAPEX have been higher, mainly driven by
the investments into the PDH plant in Kallo.
The reconciliation of total capital expenditure to the
investments as shown in the cash flow statement is
depicted in the following table:
Capital expenditure1
In EUR mn
Total capital expenditure
+/– Changes in the consolidated Group and other adjustments
– Investments in financial assets
Additions according to statement of non-current assets (intangible and tangible as-
sets)
2021
2,691
2020
6,048
(33)
(33)
(3,954)
(156)
2,624
1,938
+/– Non-cash changes
Cash outflow from investments in intangible assets and property, plant and equipment
(127)
2,497
+ Cash outflow from investments, loans and other financial assets
+ Acquisitions of subsidiaries and businesses net of cash acquired
Investments as shown in the cash flow statement
382
—
2,879
21
1,960
194
3,880
6,034
∆
(56)%
99%
79%
35%
n.m.
27%
97%
n.m.
(52)%
1 Includes expenditures for 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
Notes to the cash flow statement
Summarized cash flow statement
In EUR mn
Cash flow from operating activities excluding net working capital effects
Cash flow from operating activities
Cash flow from investing activities
Free cash flow
Cash flow from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
thereof cash disclosed within assets held for sale
Cash and cash equivalents presented in the consolidated statement of financial
position
Free cash flow after dividends
2021
2020
8,897
7,017
(1,820)
5,196
(2,977)
(25)
2,195
2,869
5,064
14
5,050
4,199
2,786
3,137
(5,948)
(2,811)
2,808
(66)
(69)
2,938
2,869
15
2,854
(3,690)
∆
n.m.
124%
(69)%
n.m.
n.m.
n.m.
n.m.
(2)%
77%
(7)%
77%
n.m.
52
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Cash flow from operating activities amounted to
EUR 7,017 mn, up by EUR 3,880 mn compared to
EUR 3,137 mn in 2020. This was primarily attributable
to an improved market environment and the contribu-
tion of Borealis, partly offset by negative effects from
net working capital components.
Cash flow from investing activities showed an out-
flow of EUR (1,820) mn in 2021, compared to
EUR (5,948) mn in 2020 as 2020 included a cash out-
flow of EUR (3,870) mn related to the acquisition of an
additional 39% stake in Borealis AG. Cash flow from in-
vesting activities in 2021 comprised cash inflows of
EUR 443 mn related to the divestment of Gas Connect
Austria, EUR 290 mn related to the sale of the stake in
the Norwegian oil field Wisting as well as EUR 94 mn
related to the sale of the shares in Kom Munai LLP and
Tasbulat Oil Corporation LLP (Kazakhstan).
Cash flow from financing activities showed an out-
flow of EUR (2,977) mn compared to an inflow of
EUR 2,808 mn in 2020. The deviation was mainly re-
lated to repayments of bonds in 2021 (EUR 1.55 bn),
while 2020 contained the issuance of bonds of
EUR 3.25 bn and hybrid bonds of EUR 1.25 bn.
Notes to the income statement
Summarized income statement
In EUR mn
Sales revenues
Other operating income and net income from equity-accounted investments
Total revenues and other income
Purchases (net of inventory variation)
Production and operating expenses incl. production and similar taxes
Depreciation, amortization, impairments and write-ups
Selling, distribution and administrative expenses
Exploration expenses
Other operating expenses
Operating Result
Net financial result
Profit before tax
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
Effective tax rate (%)
2021
2020
35,555
1,533
37,087
16,550
1,915
18,465
(9,598)
(2,218)
(2,418)
(1,896)
(896)
(389)
1,050
(20,257)
(4,302)
(3,750)
(2,746)
(280)
(688)
5,065
(194)
4,870
(2,066)
2,804
94
617
2,093
(175)
875
603
1,478
84
136
1,258
42
(69)
Δ
115%
(20)%
101%
111%
94%
55%
45%
(69)%
77%
n.m.
11%
n.m.
n.m.
90%
12%
n.m.
66%
111
53
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Sales to third parties 2021 (2020)
Total not consolidated sales 2021 (2020)
In EUR mn if not otherwise stated (prior year)
In EUR mn if not otherwise stated (prior year)
Sales revenues increased mainly due to additional
revenues stemming from the full consolidation of Bore-
alis as well as higher gas sales volumes and substan-
tially higher market prices, especially gas prices. The
sales split by geographical areas can be found in the
Notes to the Consolidated Financial Statements (Note
4 – Segment Reporting).
Net income from equity-accounted investments in-
creased from EUR 38 mn in 2020 to EUR 600 mn in
2021 mainly due to the positive contribution of Abu
Dhabi Polymers Company Limited (Borouge) and Bor-
ouge Pte. Ltd. Both investments are held by Borealis
and therefore the deviation is mainly impacted by the
full consolidation of Borealis since October 29, 2020.
Other operating income decreased from
EUR 1,877 mn in 2020 to EUR 933 mn in 2021. 2020
was mainly impacted by EUR 1,284 mn gains from re-
valuation and recycling effects related to the previously
held at-equity share of 36% in Borealis. This effect was
partly offset in 2021 with EUR 261 mn gains from the
sale of the stake in the Norwegian oil field Wisting.
Depreciation, amortization, impairments and write-
ups increased mainly due to the full consolidation of
Borealis leading to higher depreciation charges, the im-
pairment losses recognized for the nitrogen business
unit of Borealis and the impairment of the at-equity ac-
counted investment ADNOC Refining. Details can be
found in the Notes to the Consolidated Financial State-
ments (Note 7– Depreciation, amortization, impair-
ments and write-ups).
The decrease of exploration expenses was mainly re-
lated to the impairments booked in 2020 as OMV up-
dated its mid-term plan and revised its long-term plan-
ning assumptions in 2020.
54
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
acquisition of additional shares in Borealis that led to
write-up of deferred tax assets in the Austrian tax group
(among other effects). For further details on the
Group’s effective tax rate, please refer to Note 12 –
Taxes on income and profit – of the Consolidated Fi-
nancial Statements.
2021
2020
Δ
33,724
18,595
1,479
35,695
12,112
1,464
21,996
17,216
13,677
909
53,798
19,899
18,020
10,616
736
49,271
(6)%
54%
1%
11%
(4)%
29%
24%
9%
This effect was partly offset by the sale of the Gas Con-
nect Group. For further details please refer to Note 20 –
Assets and liabilities held for sale – of the Consolidated
Financial Statements.
Equity (including non-controlling interest) rose by 11%
in comparison to 2020.
Non-current liabilities were impacted mainly by repay-
ment of EUR 800 mn bonds. For further details please
refer to Note 24 – Liabilities – of the Consolidated Fi-
nancial Statements.
Net financial result decreased chiefly due the lower
net interest result which was partly offset by an im-
proved foreign exchange result. For further details refer
to the Notes to the Consolidated Financial Statements
(Note 11 – Net financial result).
The effective tax rate increased from (69%) in 2020 to
42% in 2021. The 2020 effective tax rate was signifi-
cantly affected by income from tax synergies from the
Notes to the statement of financial position
Summarized statement of financial position (condensed)
In EUR mn
Assets
Non-current assets
Current assets
Assets held for sale
Equity and liabilities
Equity
Non-current liabilities
Current liabilities
Liabilities associated with assets held for sale
Total assets/equity and liabilities
Non-current assets:
Intangible assets and property, plant and equip-
ment decreased by EUR 916 mn compared to 2020
impacted by held for sale classifications, especially of
the nitrogen business unit of Borealis.
Equity-accounted investments decreased by
EUR 1,434 mn to EUR 6,887 mn driven by
EUR 1,876 mn dividend distributions from Abu Dhabi
Polymers Company Limited (Borouge) as well as by
EUR 669 mn impairment of the investment in ADNOC
Refining, partly offset by positive result contributions
especially from Abu Dhabi Polymers Company Limited
(Borouge) as well as positive FX impacts.
Assets held for sale and liabilities associated with
assets held for sale increased mainly due to the re-
classification of the nitrogen business unit of Borealis
and the retail network in Slovenia to held for sale.
55
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Exploration & Production
In the Exploration & Production business segment, OMV delivered excellent performance while reshaping
its portfolio in line with the focus on increasing the share of natural gas in production. Despite COVID-19-
related restrictions, production reached 486 kboe/d, the production cost stood at USD 6.7/boe, and the
clean Operating Result increased substantially.
At a glance
Clean Operating Result
Special items
Operating Result
Capital expenditure1
Exploration expenditure
Exploration expenses
Production cost
Total hydrocarbon production
Total hydrocarbon sales volumes
Proved reserves as of December 31
Average Brent price
Average realized crude oil price2
Average realized natural gas price2,3
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 kboe/d
in mn boe
in USD/bbl
in USD/bbl
in EUR/MWh
2021
2020
2,837
(398)
2,439
1,173
210
281
6.67
145
(1,282)
(1,137)
1,090
227
896
6.58
486
462
1,295
70.91
65.60
16.49
463
439
1,337
41.84
37.97
8.94
Δ
n.m.
69%
n.m.
8%
(8)%
(69)%
1%
5%
5%
(3)%
69%
73%
84%
1 Capital expenditure including acquisitions.
2 Average realized prices include hedging effects.
3 The average realized gas price is converted to MWh using a standardized calorific value across the portfolio of 10.8 MWh for 1,000 cubic meters of natural gas.
Financial performance
The clean Operating Result rose sharply from EUR
145 mn to EUR 2,837 mn in 2021. Exceptionally strong
market effects of EUR 2,282 mn as a consequence of
substantially better oil and gas prices were reinforced
by very positive operational effects of EUR 507 mn.
They could be achieved thanks to the return to full
operations in Libya, revised OPEC quota restrictions in
the United Arab Emirates, and the commissioning of a
new natural gas field in Tunisia. Sales volumes
followed the production development. Depreciation
increased by EUR 97 mn in line with production
increases.
Net special items amounted to EUR (398) mn in 2021
(2020: EUR (1,282) mn), which were mainly related to
temporary hedging effects. While net special items in
2020 were mainly related to the impairments triggered
by OMV’s revision of its long-term Brent crude oil price
planning assumptions, the 2021 amount was impacted
by the EUR (383) mn value adjustment of receivables
connected to certain E&P assets. The Operating Re-
sult reached EUR 2,439 mn (2020: EUR (1,137) mn).
Production cost excluding royalties was flat at USD
6.7/boe in 2021 (2020: USD 6.6/boe).
The total hydrocarbon production volume increased
by 23 kboe/d to 486 kboe/d. Libyan production was at
full capacity during almost the entire period, while it
had been severely affected by a force majeure situation
for most of the previous year. Output in the United Arab
Emirates grew on the back of revised OPEC quota
restrictions and in Tunisia after the commissioning of a
new natural gas field. Natural decline in Romania and
Austria, the full divestment of operations in Kazakhstan
in May 2021, and lower natural gas extraction in New
Zealand stifled production growth to some extent. Total
hydrocarbon sales volumes rose to 462 kboe/d
(2020: 439 kboe/d), following the production
development.
In 2021, the average Brent price reached
USD 70.9/bbl, a substantial growth of 69%. The
Group’s average realized crude price improved by
73%. The average realized gas price in EUR/MWh
advanced by 84%.
56
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Capital expenditure including capitalized E&A
was raised to EUR 1,173 mn in 2021 (2020:
EUR 1,090 mn), rebounding from the previous
austerity-induced level. Organic capital expenditure
was primarily directed at projects in Romania, Norway,
and New Zealand. Exploration expenditure was EUR
210 mn in 2021, a reduction of 8% compared with
2020. It was mainly related to activities in Norway,
Romania, and at SapuraOMV.
Production
Romania²
Austria
Kazakhstan²
Norway
Libya
Tunisia
Yemen
Kurdistan Region
of Iraq
United Arab
Emirates
New Zealand
Malaysia²
Russia
Total
2021
2020
Oil and
NGL
in mn bbl
Natural gas¹
in bcf
in mn boe in mn boe
Total
Oil and
NGL
in mn bbl
Natural gas¹
in bcf
in mn boe
Total
in mn boe
22.4
3.6
0.7
15.3
12.0
0.9
1.1
129.9
20.6
0.7
102.3
–
17.3
–
24.0
3.4
0.1
17.0
–
2.9
–
46.4
7.0
0.8
32.3
12.0
3.8
1.1
23.4
3.8
2.1
15.1
2.4
0.6
1.3
146.5
24.9
2.0
97.5
–
7.0
–
27.1
4.2
0.3
16.2
–
1.2
–
50.5
8.0
2.5
31.3
2.4
1.7
1.3
1.0
15.6
2.6
3.6
1.0
14.6
2.4
3.4
10.8
3.5
1.7
–
72.9
–
51.8
64.5
210.6
613.2
–
8.6
10.8
35.1
104.6
10.8
12.1
12.4
35.1
177.5
8.4
3.8
2.7
–
64.7
–
57.7
53.3
208.4
612.0
–
9.6
8.9
34.7
104.7
8.4
13.4
11.6
34.7
169.4
1 To convert natural gas from cf to boe, the following conversion factor was applied in all countries: 1 boe = 6,000 cf. In Romania, the following factor was used:
1 boe = 5,400 cf.
2 The figures above include 100% of all fully consolidated companies.
Portfolio developments
In 2021, the COVID-19 pandemic continued to affect
the global economy and energy demand. Although the
pandemic continued to pose operational challenges in
all production assets, OMV made significant progress
with implementing its E&P strategy. It aims to increase
the share of natural gas over that of crude oil and re-
duce carbon intensity across the portfolio. SapuraOMV
completed the sale of all mature oil assets in Peninsu-
lar Malaysia in August, and in December, OMV di-
vested its 25% share in the Wisting oil discovery in Nor-
way. Further portfolio optimization milestones were the
divestment of all E&P assets in Kazakhstan in May and
of 40 marginal fields in Romania in December. In New
Zealand, OMV continues to work toward completing the
sale of its 69% stake in the Maari oil field.
Central and Eastern Europe
OMV Petrom continued its portfolio optimization efforts
in 2021 with the sale of 40 onshore oil and gas fields in
Southeastern Romania. OMV Petrom also sold all of its
holdings in E&P assets in Kazakhstan.
Negotiations for a production-sharing contract for
Block II off the shore of the Republic of Georgia were
successfully concluded. A seismic campaign is in prep-
aration there for 2022.
In Romania, we drilled 36 new wells and sidetracks
(2020: 63), and 695 workover jobs were performed.
The first total shutdown of the Petromar asset was suc-
cessfully and safely finalized in October. In September
and October, modernization and upgrades as well as
necessary maintenance work were performed at the
offshore platforms and the Midia terminal.
In Austria, phase 1 of the country’s largest ground-
mounted photovoltaic plant commenced operations in
January. It generated 12.1 GWh of carbon-neutral elec-
tricity for in-house use from January to December. The
second and final construction phase started in Q4/21.
This phase will raise generation capacity to a total of
15.32MWp and is expected to go online in Q3/22. Once
fully operational, the plant will generate around 14.25
GWh of electricity. A three-week turnaround at the
Aderklaa sour gas plant was finalized in May. Thanks
to a new inspection method, the turnaround interval
was extended to six years.
57
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Phase 1 of the Smart Oil Recovery (SOR) drilling
workover campaign was finalized. Eight new wells
started production at the end of January 2022.
Middle East and Africa
In 2021, the Middle East and Africa region delivered
strong results. Operations were safe and remained un-
disrupted, and all key projects continued as planned,
despite the impact of COVID-19 and the tense geopolit-
ical situations in Libya, Tunisia, and Yemen.
In Libya, production remained stable for almost the en-
tire year. In mid-January 2022, we were able to lift the
force majeure that had to be declared on crude oil ex-
ports from two Libyan ports following a political dispute
in December 2021.
In the United Arab Emirates, drilling continued at the
SARB and Umm Lulu fields. This allowed the produc-
tion ramp-up to continue despite OPEC quota re-
strictions.
While Yemen’s security situation continuously poses
significant challenges, OMV was able to complete the
workover campaign in Block S2 and commission two
power generation units for the central processing facil-
ity in Q4/21.
Russia
In October 2021, the Yuzhno-Russkoye field reached
the important milestone of full Turonian reservoir devel-
opment with the commissioning of the last of a total of
88 wells. Together with the 12 wells in the first start-up
complex commissioned in 2019, 100 wells are now in
operation and produce the hard-to-recover natural gas
of the field’s Turonian reservoir.
A further step to maintain the production level of the
field was the successful launch of a new booster com-
pressor station.
Asia-Pacific
In line with its strategy, SapuraOMV sold all of its inter-
ests in various mature oil-producing assets located off-
shore Peninsular Malaysia. The effective date of the
transaction is January 1, 2021.
The Jerun natural gas project is progressing according
to plan. Detailed engineering is well on track, and the
first deliveries of structural steel have arrived at the fab-
rication yard.
In New Zealand, OMV continued the redevelopment
and optimization of the Māui and Pohokura natural gas
assets.
In Tunisia, the production rate at the Nawara natural
gas field was stabilized in 2021, owing to the building of
operational capabilities and the implementation of digi-
tal technologies.
The Pohokura onshore well intervention was success-
fully completed. The Māui natural gas field re-develop-
ment in New Zealand is on track, with the Māui A
Crestal Infill completed and the Māui B IRF Phase 3
progressing well.
North Sea
In line with the strategy of reducing the product portfo-
lio’s carbon intensity, OMV sold its entire 25% stake in
the Wisting oil discovery. The economic effective date
of the transaction is January 1, 2021.
The Hywind Tampen project is on track to deliver initial
power to Gullfaks in 2022. Upon completion, it will be
the world’s first wind farm to power offshore platforms
and reduce CO2 emissions by 200,000 t per year.
The concept selection for the Iris/Hades development
was confirmed in November 2021.
A number of developments were completed in 2021
that will extend plateau production for the Gudrun and
the Edvard Grieg fields. These include two tie-ins to the
Gudrun field, a new extended well test at the Rolvsnes
field, a tie-back to the Solveig field, and three new infill
wells to the Edvard Grieg platform that were put into
production.
OMV’s divestment of its 69% share in the Maari oil field
is expected to close in 2022.
Key projects
Neptun (Romania, OMV 50%)
In 2021, Romanian state-controlled natural gas com-
pany Romgaz made a binding offer to acquire Exx-
onMobil’s 50% stake in the Neptun Deep license off-
shore Romania. OMV Petrom will become operator of
the project once Romgaz completes the takeover, ex-
pected for 2022. Preparations for the ownership take
over are underway. OMV Petrom maintains a keen in-
terest in seeing the Black Sea resources developed.
However, the final investment decision depends on a
range of factors including a stable and competitive fis-
cal framework. Changes to the Romanian offshore law
are expected to be effected during 2022.
58
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Other major projects (Romania, OMV 100%)
At the Petromar asset, a new offshore well was put into
production in March and set a record for the longest
section drilled offshore by OMV Petrom measuring
2,902 m.
A number of installations were added to Petromar as
part of a rejuvenation program, including new cranes, a
new helideck, and new gas-to-power installations.
The Enhanced Oil Recovery (EOR) pilot project that
was initiated at the Moldova asset was extended and
the initial results, water cut decrease in certain produc-
tion wells, were observed. Encouraged by the results of
this pilot, a full field application in another field in the
Muntenia Vest asset has been launched. These pro-
jects aim to increase recovery from these mature as-
sets by injecting a viscous water mixture into the reser-
voir.
Nawara (Tunisia, OMV 50%)
We were able to stabilize production at the Nawara nat-
ural gas field in 2021. The building of operational capa-
bilities and the implementation of digital technologies
were the key success factors. A new gas discovery that
had been made late in 2019 was connected to Na-
wara’s Central Processing Facility (CPF).
Umm Lulu and SARB (United Arab Emirates,
OMV 20%)
Uninterrupted operations were maintained at the Umm
Lulu and Satah Al Razboot (SARB) fields. Drilling activ-
ities also continued in both fields. This allowed produc-
tion to continue to ramp up despite the OPEC quota re-
strictions.
Ghasha concession (United Arab Emirates,
OMV 5%)
The Ghasha concession is being developed as three
projects in parallel, namely Hail & Ghasha, the Dalma
project (containing several fields in the Dalma area),
and the Deep Gas Development (also containing sev-
eral fields). Dalma is expected to deliver first gas in
2025, with the field eventually producing around
54 kboe/d of natural gas. The award of the Engineering
Procurement and Construction (EPC) contracts in No-
vember was a major milestone for the Ghasha conces-
sion. The construction of ten artificial islands is pro-
gressing as planned.
Khor Mor (KRI, OMV 10%)
The Khor Mor field achieved steady production exceed-
ing expectations. The capacity expansion project is pro-
gressing as per plan with early civil engineering works
completed. The project is on track for first gas in 2023.
Gullfaks (Norway, OMV 19%)
In 2021, the Equinor-operated Gullfaks field delivered
strong production volumes, mainly due to reduced nat-
ural gas injection. Phase 1 of the Hywind Tampen con-
struction (consisting of 11 floating wind turbines) was fi-
nalized in Q2/21. The generation output of 5 out of the
11 turbines will be used to reduce natural gas-fired
power generation at Gullfaks. The project is on track to
deliver first power in 2022. Once the construction of the
substructures is complete in spring 2022, the windmills
will be assembled and towed to the field.
Gudrun (Norway, OMV 24%)
Phase 2 of the Gudrun field redevelopment is delayed
due to COVID-19-induced personnel restrictions off-
shore. First water injection from the new wells is sched-
uled to start in mid-2022.
Edvard Grieg (Norway, OMV 20%)
The Edvard Grieg field produced above expectations in
2021 due to higher export capacity availability. Three
infill wells were completed during the year to support
production capacity.
In Q3/21, production from the nearby Solveig field com-
menced. The Solveig field is developed with seabed in-
stallations tied to the Edvard Grieg platform for further
processing. In addition, the extended well test from the
Rolvsnes field commenced in early August. These two
near-field tiebacks to Edvard Grieg will extend its plat-
eau production phase. Edvard Grieg is the first field in
the world to be awarded the CarbonClear certification,
Intertek’s new independent upstream carbon intensity
certification for oil and gas producers.
Hades/Iris (Norway, OMV 30%)
Hades/Iris is the first OMV-operated development pro-
ject in Norway. The concept selection was approved by
all license partners in November and will allow the pro-
ject to progress toward front-end engineering and de-
sign (FEED) studies. OMV is planning to make the final
investment decision (FID) in late 2022 and submit the
plan for development and operations (PDO) to the au-
thorities by year-end 2022 to take part in temporary
Norwegian tax incentives. Production start-up is expec-
ted in 2026.
59
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
SK408 (Malaysia, OMV 40%)
In Malaysia, the phase 1 development of the SK408 li-
cense (the Gorek, Larak, and Bakong fields) continued
to produce at a high level.
A 3D seismic survey was started in Romania in Q4/21
and completed in Q1/22. As a result of the Schönkir-
chen 3D seismic survey, a drilling opportunity was iden-
tified in Austria and will be developed further in 2022.
Phase 2 of the license, the Jerun project, received the
JV’s final investment decision in March 2021. The main
engineering, procurement, construction installation, and
commissioning (EPCIC) contract could thus be
awarded shortly after. Construction started in Septem-
ber, and the main construction milestones for 2021
were met.
Exploration and appraisal expenditure decreased to
EUR 210 mn in 2021 (2020: EUR 227 mn). New explo-
ration license applications were submitted in Norway
and Malaysia, focused on infrastructure-led natural gas
opportunities. License award announcements are ex-
pected in Q1/22.
Māui A Crestal Infill (New Zealand, OMV 100%)
The Māui A Crestal Infill (MACI) project is part of a
NZD 500 mn investment in the Māui and Pohokura
fields and is critical for ensuring the security of New
Zealand’s domestic energy supply. All six wells were
completed as planned.
Māui B IRF Phase 3 (New Zealand, OMV 100%)
The project scope of the Māui B IRF Phase 3 infill drill-
ing comprises drilling, completion, tie-in and commis-
sioning of five sidetrack wells on the Māui B platform.
The commissioned rig arrived in New Zealand and is
expected to commence the drilling campaign in Q1/22.
Exploration and appraisal highlights
In 2021, OMV drilled eight exploration and appraisal
wells in six different countries, six of which were com-
pleted and four were classified as discoveries.
OMV Petrom drilled one exploration well in Romania
resulting with an oil discovery, evaluation is ongoing.
OMV finalized three exploration wells in Norway in
2021. While Eidsvoll in the southern North Sea proved
dry, Solveig Seg D and Ommadawn were oil discover-
ies. The commercial options for these discoveries are
under evaluation, and results are expected in 2022.
In New Zealand, OMV drilled the MA-14B (Māui East)
exploration well and discovered natural gas.
The SapuraOMV-operated Eagle-1 drilling in Australia
was completed in June 2021. The well did not discover
any producible hydrocarbons.
The drilling of one well in Tunisia and one in the United
Arab Emirates was still ongoing at year-end. These are
expected to be finalized in 2022.
Reserves development
Proved reserves (1P) as of December 31, 2021, de-
creased to 1,295 mn boe (thereof OMV Petrom: 419
mn boe), with a one-year Reserve Replacement Rate
(RRR) of 77% in 2021 (2020: 102%). The three-year
rolling average RRR is 105% (2020: 138%). Proved re-
serves were added through successful drilling and de-
velopment activities in Malaysia, New Zealand, and
Norway, and improvement in reservoir performance in
Norway, Romania, and the United Arab Emirates.
These additions were offset to some extent by divest-
ments in Kazakhstan, Romania, and Malaysia. The im-
provement in global oil prices also had a positive im-
pact on the proved reserves position as of the end of
2021. Proved and probable reserves (2P) decreased to
2,197 mn boe (thereof OMV Petrom: 680 mn boe), im-
pacted by the divestments in Kazakhstan, Romania,
and Malaysia.
Innovation and new technologies
OMV’s E&P strategy is to apply state-of-the art technol-
ogies developed in-house to well-maintained assets to
pilot these technologies and to promote rapid global im-
plementation. The current focus of research and devel-
opment is on improving recovery rates and extending
the lifetimes of mature fields. Technologies that OMV
successfully implements are made available to the pub-
lic at the OMV Innovation&Technology Center (ITC) in
Austria.
Smart Oil Recovery (SOR) is an innovative method to
optimize Enhanced Oil Recovery (EOR) in mature res-
ervoirs like the Austrian Matzen field from 40% up to
60%. The life of the field is extended by injecting vis-
cous salt water into the reservoir. The drilling workover
campaign of SOR Project Phase 1 covering eight wells
was finalized successfully and production commenced
in Q1/22.
60
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
The Tech Center & Lab Teams in Austria and OMV
Petrom Upstream Laboratories (ICPT) in Romania sup-
port all OMV assets globally as a center of excellence
for analysis, testing, technology research, and consult-
ing. In 2021, a new product line –geochemical model-
ling – was developed, and the first alkali viscous salt-
water pilot was set up.
Digitalization
In 2018, the E&P Business Segment announced a vi-
sion to become a digital frontrunner in the industry and
launched its digitalization initiative – DigitUP. The
COVID-19 pandemic has reinforced the importance of
digitalization within the operational processes and has
been a catalyst for accelerating the digital transfor-
mation around the world. As part of the DigitUP pro-
gram, E&P continued digitalizing its operations. These
activities ranged from AI-driven data analytics in sub-
surface applications to increasing value-driven deci-
sions and reducing project development time. In addi-
tion the use of robotics and remote real-time operation
supported systems to increase production and drilling
efficiency, while reducing HSSE risks at the same time.
In 2021, the DigitUP program portfolio began transition-
ing from conceptualizing and piloting projects to deploy-
ing the technology in our fields, with some 40% of a to-
tal of 100+ projects slated for deployment. A dedicated
program was established at our largest operated ven-
ture, OMV Petrom Romania, to facilitate the arrival of
technology at the assets in the field. The digitalization
journey is supported by change management activities
and continuous cultural and diversity programs
throughout the entire OMV Group.
To fully seize the potential of these initiatives, E&P set
up a public cloud infrastructure to increase flexibility,
security, and performance globally, and equipped our
employees with a “future-proofed” skill set to enable a
completely new way of working.
In Austria, OMV implemented an AI-driven application
that systematically and automatically detects produc-
tion system underperformance at all levels. It helps with
reaching maximum production capacity by making use
of data-driven AI modelling. The resulting production
gain for OMV’s first asset is estimated at 0.5% per year
above the current production level.
A new integrated planning, economics, portfolio, and
reserves management system was rolled out to
400 employees in all E&P countries. The solution im-
proves collaboration across functions by way of inte-
grated workflows and consistent data, and supports
major E&P business processes for diverse disciplines.
Full integration of the application and the seamless flow
of data across business functions enables faster,
higher-quality calculations.
A cloud-based document record and management sys-
tem was commissioned at all OMV E&P locations. Over
5 mn business critical documents were secured, allow-
ing the business to collaborate globally across the or-
ganization. This has significantly reduced the search
time for retrieving information that is required for day-
to-day operations.
The strategic partnership between OMV and Schlum-
berger started in 2020. A new solution integrates the
results from drilling projects into a single, shared data-
base, allowing teams in all areas –operations, geology,
petrophysics, or completions – to work across the same
platform, with the most up-to-date data and insights at
their fingertips. In 2021, well-planning teams in Roma-
nia and Austria were able to access and visualize off-
set-well data more easily, without having to research
past reports. As a result, eight wells were mapped out
in the time it would normally take to plan one.
Improving the safety of personnel in areas of higher risk
exposure is a key objective for the use of robots. They
can complete repetitive tasks more precisely and
quickly than their human counterparts. In addition, they
offer operational benefits since they can perform tasks
where personnel have limited opportunity to intervene,
particularly in hard-to-reach areas. In 2021, an autono-
mous inspection robot was tested in Austria, and there
are plans to deploy it at other OMV E&P assets, too.
61
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Refining & Marketing
OMV’s Refining & Marketing business refines and markets fuels and natural gas. It operates three inland
refineries in Europe and holds a strong market position in the areas where its refineries are located,
serving a strong branded retail network and commercial customers. In the Middle East, it owns 15% of
ADNOC Refining and ADNOC Global Trading.
At a glance
Clean CCS Operating Result1
thereof ADNOC Refining & Trading
thereof gas
Special items
CCS effects: inventory holding gains/(losses)1
Operating Result
Capital expenditure2
OMV refining indicator margin Europe3
Utilization rate refineries Europe
Fuels and other sales volumes Europe
thereof retail sales volumes
Natural gas sales volumes
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 mn t
in mn t
in TWh
2021
1,001
(11)
252
(509)
430
922
654
2020
996
(107)
337
22
(425)
592
570
2.44
86%
3.67
88%
16.34
6.40
196.39
15.45
5.88
164.01
∆
1%
90%
(25)%
n.m.
n.m.
56%
15%
50%
2
6%
9%
20%
Note: As of Q1/21, the Downstream business segment was split into Refining & Marketing and Chemicals & Materials. For comparison only, 2020 figures are
presented in the new structure.
1 Adjusted for special items and CCS effects; further information can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements
2 Capital expenditure including acquisitions
3 Actual refining margins realized by OMV may vary from the OMV refining indicator margin due to factors including different crude oil slate, product yield, and
operating conditions.
Financial performance
The clean CCS Operating Result was stable at
EUR 1,001 mn (2020: EUR 996 mn). Stronger refining
margins, improved performance by ADNOC Refining &
Trading, and higher demand were offset almost entirely
by a lower contribution from margin hedges and a
weaker result from the gas business and oil trading.
The OMV refining indicator margin Europe increased
by 50% to USD 3.7/bbl (2020: USD 2.4/bbl), mainly as
a consequence of a stronger macro environment. Sub-
stantially higher gasoline, naphtha, and jet cracks were
only partly offset by weaker diesel cracks, which only
rebounded toward the end of the year. In 2021, the uti-
lization rate of the European refineries reached a re-
silient level of 88% (2020: 86%). At 16.3 mn t, fuels
and other sales volumes in Europe increased by 6%,
mainly on account of robust demand recovery. In the
commercial business, demand for jet fuel and diesel
grew thanks to the easing of travel restrictions, while
margins remained fairly constant, pushing up sales vol-
umes. The result from the retail business improved de-
spite lower margins, following an increase of 9% in re-
tail sales quantities, as well as due to a higher contribu-
tion from the non-fuel business.
In 2021, the contribution of ADNOC Refining & Trad-
ing came in at EUR (11) mn (2020: EUR (107) mn),
mainly due to better operational performance and a
higher refining margin environment. The result was fur-
ther improved by ADNOC Global Trading following its
successful launch at the end of 2020.
The result of the gas business declined by 25% to
EUR 252 mn (2020: EUR 337 mn), mainly following the
divestment of Gas Connect Austria to VERBUND at the
end of May 2021. In addition, higher storage, CO2, gas,
and energy expenses, as well as a negative impact
from power forward contracts lowered the result. The
ability to benefit from high market volatility through sup-
ply and sales contracts, higher revenues from the elec-
tricity balancing market, and the one-off revenues fol-
lowing the reversal of certain provisions partly compen-
sated for this development. Natural gas sales vol-
umes rose significantly from 164.0 TWh to 196.4 TWh,
thanks to primarily higher sales quantities in Germany
and the Netherlands. This was partially offset by lower
sales in Romania.
62
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Net special items amounted to EUR (509) mn (2020:
EUR 22 mn) and were primarily related to an impair-
ment in ADNOC Refining amounting to EUR (669) mn,
which was due to lower assumed refining margins and
production volumes. This was partially offset by the ef-
fect of commodity derivatives. CCS effects of
EUR 430 mn were recorded in 2021 as a consequence
of a substantially higher crude oil price level, while CCS
effects in 2020 amounted to EUR (425) mn following
the sharp drop in crude oil prices. The Operating Re-
sult of Refining & Marketing increased significantly to
EUR 922 mn (2020: EUR 592 mn).
Capital expenditure in Refining & Marketing amounted
to EUR 654 mn (2020: EUR 570 mn). Organic capital
expenditure in 2021 was predominantly related to in-
vestments in the European refineries and retail sta-
tions.
Business overview
R&M refines and markets fuel products in Central and
Eastern Europe as well as in the Middle East through
OMV’s 15% interest in ADNOC Refining and ADNOC
Global Trading. OMV’s European downstream busi-
ness model is characterized by a high degree of physi-
cal integration along the value chain from crude supply
to refining, retail, and commercial sales. Total fuels and
other sales volumes Europe amounted to 16.34 mn t in
2021. Commercial fuel customers are mainly from in-
dustrial transportation and construction sectors and ac-
count for more than 60% of the sales volume, while the
strongly branded retail network comprising 2,088 filling
stations accounts for the remaining sales volumes.
OMV owns gas storage facilities with a capacity of 30
TWh, holds a 65% share in the Central European Gas
Hub (CEGH), and operates a gas-fired power plant in
Romania. Natural gas sales volumes amounted to
196.4 TWh.
Refining including product supply and sales
The year 2021 has been a story of two halves with re-
gards to refining margins. The first half of the year was
characterized by depressed margins and low product
cracks across the board as demand was still under sig-
nificant pressure. The second half of 2021 is a story of
recovering margins and a strong upside, with various
factors contributing to the improvement in refining eco-
nomics.
In terms of the different products, naphtha prices in a
way defied the trend of the two different halves and
were strong throughout 2021 as petrochemical demand
remained resilient. Naphtha cracks rose to unprece-
dented levels in the autumn months. This can be at-
tributed to the demand for naphtha in gasoline blending
and to LPG use growing significantly because of rising
prices for competing petrochemical feedstock. This led
to certain levels of switching away from LPG towards
naphtha as feedstock for petrochemicals, which sup-
ported naphtha demand. The gasoline market started
recovering in summer as demand especially in Europe
and the US was approaching pre-pandemic levels and
continued receiving a boost from Hurricane Ida-related
supply disruptions in the United States in autumn.
On the middle distillate side, the start of the year was
characterized by a supply overhang and high global in-
ventories, which kept both diesel and jet cracks de-
pressed. An upside was only seen toward the autumn
months when diesel demand picked up from the trans-
portation, industrial, and agricultural sector and jet de-
mand grew as a result of a slight improvement in global
travel, although it remained far from typical levels. To-
ward the end of the year, the jet market came under re-
newed pressure with the emergence of the new
COVID-19 variant, Omicron. In fact, jet demand in 2021
was only around 65% of the pre-COVID-19 level, while
other road transportation fuels were very close to 2019
levels (approximately 95%+). Nevertheless, refining
margins at the end of 2021 remained solid as Brent
prices fell.
High gas prices in the second half of 2021 also put
pressure on operating costs at some refineries. Natural
gas is needed for hydrogen production, which is used
in the hydrocracking and desulphurization processes.
In the markets served by OMV’s Schwechat and
Burghausen refineries, we saw higher demand in fuels
versus 2020 and sustained very high demand in petro-
chemicals. Fuels demand in Romania also showed an
increase versus 2020 following higher diesel demand.
OMV’s European refineries therefore achieved a high
utilization rate of 88%.
Despite the challenging environment and unstable de-
mand during the year, commercial sales were ahead of
expectations in many areas. Well-executed price man-
agement, in both futures and spot markets, enabled de-
livering margins above the previous year. In some
product segments, volumes and margins even ex-
ceeded pre-COVID-19 levels, thanks to a strong boost
from OMV rapidly capitalizing on local market opportu-
nities. Throughout the year, a strong focus was set on
understanding customer needs and increasing cus-
tomer satisfaction. To closely reflect the market devel-
63
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
opments and market outlook, OMV’s commercial prod-
ucts and services are being expanded, including
launching several new, more sustainable products.
ADNOC Refining & Trading
Alongside majority shareholder ADNOC (65%) and Eni
(20%), OMV remains a strategic partner in ADNOC Re-
fining after acquiring 15% of the company’s shares at
the end of July 2019. In 2021, ADNOC Refining oper-
ated its major refinery in Ruwais, which is the world’s
fourth largest refining complex with integrated petro-
chemicals, and its Abu Dhabi refinery, which closed at
the end of 2021 as part of ongoing efficiency and com-
petitiveness improvement initiatives.
In comparison to 2020, ADNOC Refining’s business
performance in 2021 benefitted from better operational
performance and a higher margin environment, particu-
larly in the second half of the year.
With the same ownership structure as ADNOC Refin-
ing, ADNOC Global Trading (AGT) has the mission to
trade the majority of ADNOC Refining’s export volumes
of products as well as to supply non-domestic crudes,
condensates, and other liquids for processing.
AGT extends the successful Refining & Marketing busi-
ness model into key geographies and to strategic part-
ners. By continuously optimizing trade flows, it allows
ADNOC Refining to access attractive non-domestic
feedstock sources, maximize netback for products on
global markets (e.g., Asia-Pacific), and implement best
practices such as risk management.
In 2021, AGT continued on a solid ramp-up trend, clos-
ing the first year of operations overall according to plan.
Refining capacities 2021
In kbbl/d
Schwechat (Austria)
Burghausen (Germany)
Petrobrazi (Romania)
ADNOC Refining (United Arab Emirates)1
Total
1 Equivalent to OMV‘s 15% share in ADNOC Refining
204
79
86
138
507
Retail
Despite an ongoing challenging environment due to the
COVID-19 pandemic, the retail business set a new rec-
ord Operating Result in 2021. The retail business again
proved to be a stable outlet for refinery products and a
strong cash generator. Total sales partially recovered
to 6.4 mn t, equivalent to approximately 7.9 bn l,
strongly supported by a growing cards business. At the
64
end of the year, the network comprised 2,088 filling sta-
tions (2020: 2,085). OMV continues to focus on its
proven multi-brand strategy. The OMV brand is posi-
tioned as a premium brand, with VIVA representing a
strong shop, gastronomy, and service offering. This is
rounded out by the unmanned and value-for-money
concepts of the Avanti and Petrom brands. This strat-
egy has continued to deliver solid results, and profitabil-
ity per site has increased. Sales of OMV’s premium
MaxxMotion-brand fuels continued to be strong, thus
contributing to record margins and proving the pre-
mium-quality advantage, even during the COVID-19 cri-
sis. The non-fuel business, including VIVA convenience
stores and car washes, continued to perform well (es-
pecially the former), growing about 10% compared to
2020 (excluding the Petrom branded network in Roma-
nia where a third-party store partnership with Auchan
was introduced). The focus on high-quality products
and services in the premium filling station network re-
mains one of OMV’s key differentiators.
In June 2021, a divestment agreement was signed with
MOL Group for OMV Slovenia comprising the sale of
119 filling stations. This follows the OMV Group strat-
egy of focusing the retail business on countries where
OMV has a strong market position and refinery integra-
tion. The closing of the divestment of the OMV network
in Germany is expected in 2022; OMV has agreed to
sell 285 filling stations to EG Group.
In July 2021, OMV and VERBUND reached an agree-
ment on the sale of OMV’s 40% stake in Smatrics, a
joint venture in electromobility, to VERBUND.
Gas supply, marketing, and trading
OMV markets and trades natural gas in nine European
countries and in Turkey. In 2021, natural gas sales vol-
umes amounted to 196.4 TWh (2020: 164.0 TWh), an
increase of 20%. The foundation for natural gas sales
growth is a diverse supply portfolio, which consists of
equity gas and a variety of international suppliers. In
addition to mid- and long-term activities, short-term ac-
tivities at the main international hubs (VTP, THE, TTF,
PSV) complement OMV’s dynamic supply portfolio.
OMV Gas Marketing & Trading GmbH’s (OMV Gas)
sales activities are focused on a diverse and resilient
customer portfolio in the large-scale industry and mu-
nicipality segments. OMV Gas conducts sales activities
in Austria, Germany, Hungary, the Netherlands, and
Belgium, where 2021 sales amounted to 156.2 TWh,
up 36% over 2020. Italy, Slovenia, and France are cov-
ered by opportunistic origination activities. Increased
sales were achieved despite the very challenging and
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
competitive market environment as margins remained
under pressure.
In 2021, the European gas market was characterized
by unprecedented high gas prices and significant vola-
tility. This situation is expected to continue.
In Romania, OMV Petrom’s gas and power activities
delivered a record Operating Result, reflecting strong
power business performance and the optimization of
both product and customer portfolios. Natural gas sales
volumes to third parties reached 38.4 TWh in 2021, a
decrease compared to 47.8 TWh in 2020. In 2020,
ANRE initiated a gas release program in Romania,
whereby natural gas producers are obligated to offer
40% of their production volume to the centralized mar-
kets.
In Romania, net electrical output increased to 4.8 TWh
in 2021 (2020: 4.2 TWh), with the Brazi power plant
contributing approximately 8% of Romania’s electricity
production. The plant is also an important player on the
power balancing market.
In 2021, OMV Gas again improved the capacity utiliza-
tion of the Gate regasification terminal. Furthermore,
the LNG business provides an additional natural gas
source to meet OMV’s ambitious sales growth targets
in Northwest Europe, while enhancing supply security
for OMV’s geographically diverse supply portfolio. The
LNG business also supports portfolio integration of the
supply, marketing, and trading businesses.
Gas logistics
OMV operates gas storage facilities in Austria and Ger-
many with a storage capacity of 30 TWh. Additionally,
OMV holds a 65% stake in the Central European Gas
Hub (CEGH), the leading gas trading hub in Central
and Eastern Europe. On May 31, 2021 OMV closed its
divestment of its entire 51% stake in Gas Connect Aus-
tria to VERBUND.
In 2021, a long cold season that lasted until April re-
duced the storage levels all over Europe to historically
low levels. High global demand, based on recovery
from the pandemic and shortage of supply, led to an in-
verse summer/winter spread, with summer prices ex-
ceeding winter prices. Unprecedented volatility of
prices across the entire energy complex dominated the
market. European storages reached their highest filling
levels at the end of October (77%) and decreased to
55% at year-end.
At the Central European Gas Hub, 749 TWh of natural
gas was nominated at the Virtual Trading Point (VTP)
in 2021. This volume corresponds to approximately
nine times Austria’s annual gas consumption. The EEX
CEGH Gas Market traded total volumes of 231 TWh in
Austria, an increase of 35%, and 28 TWh in the Czech
Republic, an increase of 117%.
OMV is a financing partner of the Nord Stream 2 pro-
ject. OMV’s total payments under the financing agree-
ments for Nord Stream 2 amounted to around
EUR 729 mn. Nord Stream 2 AG announced mechani-
cal completion of the offshore part of the first line on
June 10, 2021, and of the second line on Septem-
ber 10, 2021. The first fill of technical gas was com-
pleted for the first line on October 18, 2021, and for the
second line on December 29, 2021. Following the an-
nounced US sanctions on Nord Stream 2 AG on Febru-
ary 22, 2022, OMV will recognize a value adjustment
charge of EUR 987 mn (loan plus accrued interest as of
December 31, 2021) due to the fact that receivables
from Nord Stream 2 AG may be unrecoverable. Please
refer to Note 37 „Subsequent Events” of the Financial
Statements for the most recent developments of the
Russia-Ukraine crisis and the expected impact on OMV
Group’s financials.
Innovation and new technologies
OMV actively explores alternative feedstock, technolo-
gies, and fuels with the aim of developing a well-diver-
sified, competitive future portfolio. Efforts and re-
sources focus on chemical recycling for post-consumer
plastic waste. Additional attention is given to the pro-
duction of conventional and advanced biofuels, syn-
thetic fuels, and green hydrogen as future fuels for the
hard-to-electrify transportation segment, and as precur-
sors for sustainable chemicals.
OMV has taken important steps in 2021 for reducing
the carbon footprint of the fuels product portfolio by
launching the new innovative fuels OMV EcoMotion
Diesel and OMV EcoPerform Diesel for business cus-
tomers. OMV EcoMotion Diesel contains up to 33% re-
newable components. Thanks to this high share of bio-
components and carbon offsetting of the remaining
share, this 100% carbon-neutral diesel is the first of its
kind in Austria.
OMV has also taken steps to implement the Co-Pro-
cessing technology in the Schwechat refinery. This
technology enables OMV to process biogenic feed-
stocks (e.g., domestic rapeseed oil) together with fossil-
based materials in an existing refinery hydrotreating
plant during the fuel refining process. The final invest-
ment decision amounting to around EUR 200 mn for
65
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
converting a refinery plant to produce 160,000 t of bio-
fuels per year was made in 2020. This will reduce
OMV’s carbon footprint by up to 360,000 t by substitut-
ing fossil diesel. Operations are scheduled to begin by
2023.
OMV signed a supply contract with AustroCel Hallein to
supply OMV with advanced bioethanol totaling up to
1.5 mn l per month starting in January 2021. This will
reduce emissions by around 45,000 t of CO2 per year.
Unlike conventional biofuels, advanced fuels do not
compete with food production. The amount that can be
blended into the fuel pool is not capped, as is the case
with waste-based fuels. The principal sources of ad-
vanced fuels include biomass fraction from mixed mu-
nicipal or industrial waste, straw, animal manure, or
residues from forestry and wood processing as well as
waste streams. OMV is developing its own proprietary
technology to convert one of these biomasses into ad-
vanced fuel. The next step is a pilot plant at the
Schwechat refinery. OMV also collaborates with tech-
nology providers, industry partners, and academic insti-
tutions to produce advanced biofuels at scale.
While the above bio- and synthetic products will pre-
dominantly be sold as fuels initially due to a mandated
market, they can also be used as chemical feedstock.
OMV and its partners working on the UpHy project in-
tend to produce green hydrogen for use in both the mo-
bility sector and the refining process. OMV is develop-
ing an electrolysis plant at the Schwechat refinery for
this purpose, to be powered with renewable electricity,
to produce zero-carbon hydrogen. The green hydrogen
will initially be used for fuel hydrogenation. However,
the ultimate goal is to develop commercial hydrogen
fuel cells for transportation applications such as com-
mercial buses and trucks. As a pioneer in hydrogen
mobility, OMV operates five hydrogen filling stations in
Austria. In 2020, OMV together with Daimler Trucks
AG, IVECO, Shell, and the Volvo Group launched the
H2Accelerate program. These partners are committed
to creating the conditions necessary for a mass-market
roll-out of hydrogen trucks in Europe. Fleets are ex-
pected to operate first in regional clusters and along
European high-capacity corridors. Over time, the clus-
ters are going to be interconnected into a pan-Euro-
pean network.
OMV opened its first LNG filling station for heavy-duty
trucks in Himberg in September 2021. This is another
step toward the future of alternative fuels and sustaina-
ble mobility underpinned by the freedom provided by
technological solutions.
During 2021, OMV continued installing photovoltaic
panels on filling stations in multiple countries. They
have now been installed on 170 filling stations with the
aim of continuing this expansion in 2022. The panels
reduce the carbon footprint of filling stations and im-
prove the economic efficiency of operations.
Digitalization
In 2021, OMV continued its digitization journey. Several
digital projects have been implemented, creating imme-
diate value and accelerating our business strategy im-
plementation.
Predictive analytics is an integral part of our refineries
and enables OMV to achieve its goals faster. As an ex-
ample of this, the first phase of predicting the cleaning
schedule of heat exchangers went live. This project will
generate annual savings of EUR 1.7 mn thanks to data-
driven optimization and contribute significantly to our
sustainability strategy by preventing carbon emissions
totaling 25,000 t per year.
Additional projects improved the performance of OMV’s
Refining business. These included the digitalization of
the shift book to optimize the efficiency of maintenance
planning and the visualization of steam cracker assets
in a 3D digital twin, which will speed up turnaround ac-
tivities.
The expected overall benefit of up to EUR 11 mn over
the next five years clearly shows that digitalization is al-
ready generating tangible value in OMV’s Refining
business.
In Marketing, the team kicked off a digital customer
journey, which will grow sales and service activities as
well as further improve customer experience using the
latest Salesforce platform. Combined with a new cus-
tomer portal as a one-stop shop for all requests, in-
voices, and orders, we deliver a single platform cover-
ing end-to-end customer interactions.
Personalized offers and experiences for our retail cus-
tomers developed using data-driven insights boosted
loyalty growth significantly. In 2021, personalized offers
resulted in a 18% spend increase and 75% reduction in
the churn rate of OMV’s loyalty program participants.
The new mobile payment concept in retail aims to virtu-
alize the B2B card and move towards a fully digital end-
to-end experience to meet the emerging needs of a
fast, simple, and secure fuel supply. The integration of
this service into the new B2C mobile app will take cus-
tomer experience to the next level.
66
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
The new state-of-the-art digital outdoor payment termi-
nal was launched successfully in seven selected filling
stations (five in Romania, one in Austria, and one in
Slovenia), which led to reduced waiting time and in-
creased customer satisfaction. A steady growth in num-
ber of transactions at the new terminals was registered;
almost 25% of all transactions were paid by using the
new digital service already.
OMV is a European market pioneer in switching to
SAP’s latest enterprise resource planning system,
S/4HANA. This is one of the backbones of OMV’s fu-
ture digitalization activities and sets new standards for
data management, business process automation, and
digitalization in finance, supply, logistics, refining, sales,
and retail.
The automation of business processes replaced ap-
proximately 250,000 hours of manual work for total
hours freed up valued at over EUR 2.5 mn per year.
Projects applying artificial intelligence unlocked an ad-
ditional business value of more than EUR 1.2 mn. Ex-
amples of such projects include decreased sample test-
ing costs in our refinery laboratories and the prevention
of stock shortages as a result of an improved fuel sales
forecast in our retail network considering seasonality
and COVID-19 effects.
67
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Chemicals & Materials
In the Chemicals & Materials segment, OMV is now one of the world’s leading providers of advanced and
circular polyolefin solutions and a European market leader in base chemicals, fertilizers1, and plastics
recycling. The Company supplies services and products to customers around the globe through Borealis
and its two joint ventures: Borouge (with ADNOC, based in the UAE and Singapore) and Baystar (with
TotalEnergies, based in the United States).
At a glance
Clean Operating Result
thereof Borealis excluding JVs
thereof Borealis JVs
Special items
Operating Result
Capital expenditure1
Ethylene indicator margin Europe
Propylene indicator margin Europe
Polyethylene indicator margin Europe
Polypropylene indicator margin Europe
Utilization rate steam crackers Europe
Polyolefin sales volumes
thereof polyethylene sales volumes excl. JVs
thereof polypropylene sales volumes excl. JVs
thereof polyethylene sales volumes JVs2
thereof polypropylene sales volumes JVs2
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR/t
in EUR/t
in EUR/t
in EUR/t
in mn t
in mn t
in mn t
in mn t
in mn t
2021
2,224
1,437
534
(396)
1,828
835
468
453
582
735
90%
5.93
1.82
2.13
1.25
0.74
2020
519
219
81
1,049
1,568
4,360
435
364
350
413
73%
5.95
1.76
2.12
1.30
0.77
∆
n.m.
n.m.
n.m.
n.m.
17%
(81)%
8%
25%
67%
78%
17
(0)%
3%
1%
(4)%
(4)%
Note: As of Q1/21, the Downstream business segment was split into Refining & Marketing and Chemicals & Materials. For comparison only, 2020 figures are
presented in the new structure. Following the closing of the acquisition of the additional 39% stake on October 29, 2020, Borealis is fully consolidated in OMV’s
figures and the at-equity contributions stemming from Borealis JVs are reported separately.
1 Capital expenditure including acquisitions, notably the acquisition of an additional 39% stake in Borealis in Q4/20 for USD 4.68 bn
2 Pro-rata volumes of at-equity consolidated companies
Financial performance
The clean Operating Result more than quadrupled to
EUR 2,224 mn (2020: EUR 519 mn), mainly attributa-
ble to substantially higher European polyolefin margins,
positive inventory valuation effects, and the full consoli-
dation of Borealis.
The contribution of OMV base chemicals increased,
mainly fueled by higher ethylene and propylene indica-
tor margins. The ethylene indicator margin Europe
grew by 8% to EUR 468/t (2020: EUR 435/t), while the
propylene indicator margin Europe increased by
25% to EUR 453/t (2020: EUR 364/t). Both saw strong
demand throughout the year, in particular in the second
half. Propylene indicator margin was able to benefit
from a demand recovery in the automotive sector.
The utilization rate of the European steam crackers
operated by OMV and Borealis improved significantly
by 17 percentage points to 90% in 2021 (2020: 73%).
2020 was impacted by the unplanned outage of the
Stenungsund steam cracker that began in Q2/20.
The contribution of Borealis excluding JVs soared by
EUR 1,219 mn to EUR 1,437 mn (2020: EUR 219 mn),
primarily due to the outstanding performance of the pol-
yolefin business and increased contributions from the
base chemicals and nitrogen businesses. The Borealis
base chemicals business improved largely on account
of positive inventory valuation effects and higher capac-
ity utilization at the Stenungsund steam cracker. The
polyolefin business saw an unprecedented rise in re-
sults, which was driven by a steep increase in margins
and positive inventory valuation effects, but also bene-
fited from higher volumes. The polyethylene indicator
margin Europe increased by 67% to EUR 582/t (2020:
EUR 350/t) while the polypropylene indicator margin
Europe saw a stronger increase, by 78%, to EUR 735/t
1 On February 2, 2022, Borealis received a binding offer from EuroChem for the acquisition of its nitrogen business including fertilizer, melamine and technical
nitrogen products.
68
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
(2020: EUR 413/t). Both indicator margins were sup-
ported by strong demand in the European markets cou-
pled with a tightening supply-demand balance. In par-
ticular at the beginning of 2021, a heavy maintenance
season limited regional supply while logistic constraints
throughout the year inhibited additional supply from
outside of Europe. Polyethylene sales volumes im-
proved by 3%, while polypropylene sales volumes
grew by 1% compared to 2020. The energy and
healthcare industries in particular drove demand, while
volumes in the consumer industry softened. The contri-
bution from the nitrogen business grew compared to
2020, mainly due to positive inventory effects and a
positive effect from the reclassification as an asset held
for sale.
The contribution of Borealis’ JVs grew substantially to
EUR 534 mn in 2021 (2020: EUR 81 mn). The full con-
solidation of Borealis and the subsequent separate re-
porting of the JVs were the main factors in this in-
crease, while much higher polyolefin prices in the Asian
markets and in the United States fueled the result. Pol-
yethylene and polypropylene sales volumes generated
by the JVs decreased by 4% compared to 2020, mainly
on account of lower Borouge sales volumes due to lo-
gistics constraints in Asia. Baystar sales volumes re-
mained stable in 2021 despite being impacted by the
Texas freeze in the first quarter of 2021.
Net special items amounted to EUR (396) mn (2020:
EUR 1,049 mn) and were mainly related to the impair-
ment of the nitrogen business of Borealis. In 2020, net
special items were mainly related to a step-up in the
valuation of the previously owned 36% share in Bore-
alis. The Operating Result of Chemicals & Materials
grew to EUR 1,828 mn compared to EUR 1,568 mn in
2020.
Capital expenditure in Chemicals & Materials
amounted to EUR 835 mn (2020: EUR 4,360 mn). Cap-
ital expenditure in 2020 was mainly related to the ac-
quisition of an additional 39% stake in Borealis for USD
4.68 bn. In 2021, besides ordinary running business in-
vestments, organic capital expenditure predominantly
related to investments for the construction of the new
propane dehydrogenation plant in Belgium by Borealis.
Business overview
The Chemicals & Materials segment was established at
the beginning of 2021, following the acquisition of the
majority stake in Borealis at the end of 2020. OMV sub-
stantially grew its chemical business and extended the
value chain into polymers with this acquisition. Through
its subsidiary Borealis, OMV is now one of the world’s
leading providers of advanced and circular polyolefin
solutions and a European market leader in base chemi-
cals, fertilizers, and plastics recycling.
The segment comprises base chemicals production in-
tegrated with the refineries in Austria and Germany op-
erated by OMV; the Borealis business of base chemi-
cals, polyolefins, and fertilizers; and the joint ventures
Borouge and Baystar. With a strong European footprint
and activities through Borealis and its two joint ven-
tures, Borouge (with ADNOC, based in the UAE and
Singapore) and Baystar (with TotalEnergies, based in
the United States), the Group is active in over
120 countries.
Base chemicals
Base chemicals are building blocks for the chemical in-
dustry and are transformed into plastics, packaging,
clothing, and many other consumer products.
While the OMV-operated steam crackers in Schwechat
and Burghausen mainly use naphtha as a feedstock,
the steam crackers operated by Borealis in Stenung-
sund and Porvoo feature high feedstock flexibility and
are able to use naphtha, butane, ethane, propane, or
LPG mix as feedstock. In Kallo, Borealis runs a pro-
pane dehydrogenation unit based on 100% propane
feedstock.
OMV Group produces base chemicals such as olefins
(ethylene and propylene), aromatics, butadiene, high-
purity isobutene, benzene, phenol, and acetone.
▸ Olefins (ethylene and propylene) are important
chemical building blocks to produce, among other
things, polyolefins (polyethylene and polypropyl-
ene), which are in turn used to manufacture a wide
variety of consumer and industrial products.
▸ Aromatics such as benzene are used as starting
materials for consumer products, including clothing,
pharmaceuticals, cosmetics, computers, and sports
equipment.
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OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
▸ C4s (e.g., butadiene, butenes) are used in a variety
of applications, with butadiene primarily used in
manufacturing synthetic rubber, making it a funda-
mental material for the tire and automotive indus-
tries. Butenes are used in specialty chemicals, such
as oxo-alcohols for plasticizers and as polyols for
coatings and synthetic lubricants.
▸ High-purity isobutene is a feedstock for key
chemical products like adhesives, lubricants, and
vitamins.
▸ Phenol and acetone are sold mainly to the polycar-
bonate and epoxy resin industries. Phenol is also
used in phenolic resins and in caprolactam. Ace-
tone is also an ingredient in solvents and MMA for
PMMA (plexiglass).
In general, the 2021 market environment for base
chemicals was characterized by a recovery from
COVID-19, bad weather conditions in the US Gulf
Coast region, and logistics constraints throughout the
whole year.
In comparison to 2020, high feedstock prices drove
prices for base chemicals upwards in 2021 and did not
negatively impact indicator margins. In Q1/21, margins
remained at 2020 levels, but strongly recovered for all
products from Q2/21 onward. This development was at-
tributable to overall robust base chemicals demand in
all derivates and received particular support from con-
tinued strong global demand in polyolefins. Propane
dehydrogenation (PDH) margins remained at a satis-
factory level, despite increasing propane prices, as the
demand for propylene remained elevated. In the sec-
ond half of 2021, ethylene and propylene indicator mar-
gins remained at high levels. Toward the end of the
year, contract prices reached all-time highs due to
strong demand and a tight supply amid high power and
natural gas prices.
Butadiene indicator margins also improved again in
Q2/21, reflecting a recovery in the automotive sector.
However, recovery was limited due to supply chain
constraints, in particular regarding the availability of
semiconductor chips. It was mainly the weak Asian de-
mand that negatively impacted butadiene margins in
the last quarter of 2021.
Demand for benzene was healthy throughout the year.
Prices, and consequently margins, showed high volatil-
ity, mainly on account of supply/demand balances. Due
to weather events in the United States and unplanned
plant outages, peak margins were reached in Q2/21.
Despite a weak fourth quarter, the average indicator
margin for benzene in 2021 by far outpaced levels seen
in 2020.
70
Polyolefins
Following the acquisition of the majority stake in
Borealis, OMV Group extended its value chain to poly-
mers and became one of the world’s leading providers
of advanced and circular polyolefin solutions. Through
Borealis, the Company is the second largest polyolefin
producer in Europe and among the top ten producers
globally.
Borealis operates seven polyolefin plants located in
Schwechat, Stenungsund, Porvoo, and Burghausen,
where they are integrated with steam crackers, as well
as in Beringen and Kallo, where they are integrated
with the existing PDH facility, and in Antwerp. In addi-
tion, Borealis operates several compounding plants in
Europe, the United States, South Korea, and Brazil.
The value-add polyolefin products manufactured by Bo-
realis are the foundation of many valuable plastics ap-
plications that are an intrinsic part of modern life. Ad-
vanced Borealis polyolefins have a role to play in sav-
ing energy along the value chain and promoting more
efficient use of natural resources. Borealis works
closely with its customers and industry partners to pro-
vide innovative plastics solutions that create value in a
variety of industries and segments. These solutions
make end products safer, lighter, more affordable, and
easier to recycle. In short: They enable more sustaina-
ble living. Borealis offers advanced polyolefins for virgin
and circular economy solutions, servicing the following
key industries: consumer products, energy, healthcare,
infrastructure and mobility.
In 2021, margin development in the polyolefins industry
was affected by high demand and limited supply. To-
ward the end of 2020, demand had started to improve,
following government economic policies meant to stim-
ulate the economy after COVID-19 containment
measures. This trend continued in 2021, where margin
development in the polyolefins industry was affected by
high demand paired with limited supply. These sup-
ply/demand imbalances were caused by a combination
of multiple factors. At the end of 2020, force majeure
caused multiple EU producers to halt operations at a
time when stock levels are normally kept low for the
year-end, resulting in pressure on customers. Further-
more, the situation worsened at the beginning of 2021
due to three key factors. Firstly, a number of plants
paused their operations to perform routine mainte-
nance, which in many cases was rescheduled from
2020. Secondly, an unprecedented winter storm im-
pacted polyolefin production capacity in the US state of
Texas. Thirdly, logistics constraints restricted the ability
to redirect volumes toward imbalanced markets.
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
The above-mentioned capacity constraints, combined
with disruption in the shipping industry, exacerbated
supply scarcity throughout Q2/21, until eventually im-
ports – mainly from the Middle East – started increas-
ing, offering some relief to the market.
From Q3/21 onwards, new dynamics continued to im-
pact the market. A sudden feedstock, material, and util-
ities cost increase, as well as the spread of new
COVID-19 variants, followed by subsequent contain-
ment measures, led to high levels of market uncer-
tainty.
The Borealis polyolefins segment was able to continue
serving its customers successfully throughout this pe-
riod, offering high-quality products and a highly secure
supply.
Renewables and circular chemicals
Plastics continue to play a vital role in the economy and
in our business, making our life more efficient, conven-
ient, and safe. Yet, when insufficient effort is made to
recover and reuse plastics, most of them end up in
landfills. The vision of a circular economy – where we
optimize resource efficiency and reuse, recycle and re-
purpose endlessly – is both a business imperative and
an opportunity. Demand for recycled plastics is growing
due to increasing public awareness of the importance
of using resources sustainably for a climate-neutral fu-
ture.
The circular economy opens up new ways to reinvent
the economy in the interest of preserving natural capital
and minimizing waste. OMV and Borealis are pursuing
various initiatives in mechanical and chemical recy-
cling, design for recycling (DfR), and circular polyole-
fins, manufactured with second generation renewable
feedstock. While mechanical recycling has proven to be
effective and will likely remain the eco-efficient method
of choice in the foreseeable future, chemical recycling
will play an increasing role to complement mechanical
recycling.
To expand and accelerate its chemical recycling activi-
ties, Borealis took a minority stake in Renasci N.V., a
provider of innovative recycling solutions and creator of
the novel Smart Chain Processing (SCP) concept. The
SCP concept is a proprietary method (EP patent appli-
cation approved) of maximizing material recovery to
achieve zero waste. As part of the agreement, Borealis
will source a projected 20 kt of circular pyrolysis oil an-
nually from Renasci’s Oostende facility to produce
chemicals and polyolefins based on chemically recy-
cled feedstock. The Group also plans to purchase me-
chanically recycled material. Borealis will collaborate
closely with Renasci to advance and scale-up the SCP
technology. This includes developing facilities which
operate entirely on household waste as feedstock.
In December 2021, OMV took a major step in scaling
up its chemical recycling capacities by making the final
investment decision to build a chemical recycling demo
plant based on its proprietary ReOil® technology. The
plant has a capacity of 16,000 t p.a. The feedstock will
consist mainly of polyolefins and will be sourced in Aus-
tria in close cooperation with local waste management
companies. Examples of such plastic waste include
food packaging, plastic cups, lids from takeout coffee,
and confectionery packaging. This is OMV’s next step
toward an industrial-scale plant with a processing ca-
pacity of up to 200,000 t/year planned for 2026.
Fertilizers, melamine, and technical nitrogen
products
OMV, through its subsidiary Borealis, is a leading Euro-
pean manufacturer and distributor of fertilizers, tech-
nical nitrogen products, and melamine: The Company
is Europe’s third largest nitrogen fertilizer manufacturer
and the world’s third largest melamine producer by pro-
duction capacity utilized. Borealis produces and then
distributes and supplies fertilizers and technical nitro-
gen products each year via its commercial organiza-
tion, Borealis L.A.T. This comprises more than 60 ware-
houses across Europe and has an inventory capacity of
over 700,000 t.
Early 2021, Borealis and TOMRA announced the oper-
ational start of their advanced mechanical recycling
demo plant in Lahnstein, Germany. This is a state-of-
the-art plant that processes both rigid and flexible plas-
tic waste from households. The purpose of this demo
plant is to generate high-quality material fit for use in
highly demanding applications. Technical success will
set the groundwork for a commercial-scale advanced
mechanical recycling plant.
In 2020, OMV Group announced that it had started the
divestment process for the nitrogen business unit,
which includes fertilizers, technical nitrogen, and mela-
mine. The Company’s share (77.5%) in Rosier, which
operates the production sites in the Netherlands and
Belgium, is not being considered in this sales process.
In February 2022, Borealis received a binding offer
from EuroChem for the acquisition of its nitrogen busi-
ness.
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OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Joint ventures
Borouge
Established in 1998, Borouge is a true success story of
the long-term partnership with ADNOC. The joint ven-
ture has successfully combined the leading-edge
Borstar® technology with competitive feedstock and ac-
cess to growing Asian markets.
Through Borouge, the Group’s footprint reaches all the
way to the Middle East, the Asia-Pacific region, the In-
dian subcontinent, and Africa. Production company
Borouge ADP (Borealis 40%, ADNOC 60%) is based in
the United Arab Emirates, while Borouge PTE, which
handles sales and marketing (Borealis 50%, ADNOC
50%), is headquartered in Singapore. The company
employs over 3,000 people, serving customers in
50 countries.
In 2021, Borouge recorded another successful year of
production, optimizing operations with the available
feedstock. Continued focus on innovation and commer-
cial excellence, supported by an elevated market price
environment, enabled Borouge to achieve higher prices
compared to 2020.
Baystar (Borealis 50%, TotalEnergies 50%)
Baystar is a joint venture between TotalEnergies Petro-
chemicals and Refining USA, Inc. (TEPRI), a wholly
owned subsidiary of TotalEnergies SE and Novealis
Holdings LLC (Novealis), a wholly owned subsidiary of
Borealis AG.
TotalEnergies contributed its award-winning Bayport fa-
cilities to the JV and will be the operator of the cracker
in Port Arthur. Borealis brings its proprietary Borstar®
technology to North America for the first time along with
the Bayport site for unique polyethylene grades for the
most demanding applications.
Baystar achieved a record net profit in 2021 supported
by favorable market conditions. The record result was
achieved despite the negative impact from winter storm
Uri, which hit Texas in February 2021, resulting in over-
all lower sales and production volumes compared to
previous years. Baystar’s readiness efforts have pro-
gressed through the year as the Baystar organization
prepares to become a fully integrated 1 mn t polyeth-
ylene company with the start-up of the ethane cracker
and Borstar Bay 3 plant.
Growth projects
Despite the ongoing adverse effects of the pandemic,
Borealis has been able to make meaningful progress
on its important global growth projects in the Middle
East, North America, and Europe in 2021.
Borouge’s fifth Borstar polypropylene plant (PP5) was
started up successfully in February 2022. It increases
Borouge’s current production capacity to around 5 mn
t/year. Despite COVID-19-related disruptions, the pro-
ject was completed on time and without cost overruns.
In November 2021, Borealis and ADNOC signed a
USD 6.2 bn final investment agreement to build the
fourth facility at the Borouge polyolefin manufacturing
complex in Ruwais (UAE). Borouge’s expansion is vital
for serving growing customer demand for differentiated
polyolefins solutions in energy, infrastructure, and ad-
vanced packaging in Asia, Africa, and the Middle East.
After completion of the Borouge 4 expansion, Borouge
will be the world’s largest single-site polyolefin com-
plex. Cutting-edge technologies will be employed to im-
prove energy efficiency and reduce emissions. The
plan is to eliminate continuous flaring altogether. The
new facility will draw on renewable energy sources to
power some of its operations. An exploratory study cur-
rently underway will determine whether the installation
of a carbon capture unit could lower Borouge 4 emis-
sions by up to 80%.
In the state of Texas in the United States, the Bay-
star™ growth project will add more than 1 mn t of an-
nual polyolefin production capacity and, most crucially,
enable Borealis to supply locally manufactured Borstar
products to its North American customers for the first
time. The unusually hard winter freeze that hit the re-
gion in 2021 had adverse effects on nearly all petro-
chemical operations on the Texas Gulf Coast, and the
Baystar project was no exception. While start-up of the
new ethane-based steam cracker has been delayed,
on-site construction of the polyethylene unit is continu-
ing apace.
The new world-scale PDH plant under construction in
Kallo (Belgium) adjacent to the existing PDH facility, it
is planned to begin operations in 2023. With an invest-
ment of around EUR 1 bn, this is among the largest
projects in the petrochemical industry in Europe today,
and the largest ever for Borealis on the continent. A
stellar safety record has been achieved despite the
enormity of the project, which includes delivery of one
of the largest single pieces of equipment ever shipped
in one piece to the Port of Antwerp.
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OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
In July, Borealis announced it had acquired a 10% mi-
nority stake in Renasci N.V., a Belgium-based provider
of innovative recycling solutions and creator of the
novel Smart Chain Processing concept. This purchase
was subsequent to an earlier offtake agreement with
Renasci to source around 20 kt per year of circular py-
rolysis oil, a product of chemical recycling which can be
used as feedstock. Taken together, the agreements
help accelerate the shift to plastics circularity in an eco-
efficient way.
Innovation and new technologies
OMV’s ReOil® proprietary thermal cracking technology
was developed to meet the European Commission’s
targets for the circular economy and to fulfill future
packaging recycling quotas. The ReOil® plant at the
Schwechat refinery, which has a capacity of 100 kg/h,
has been recycling post-consumer and post-industrial
plastics into synthetic crude oil in a pyrolysis process
since 2018. This synthetic crude is then processed
mainly into monomers and other hydrocarbons in the
Schwechat refinery. The pilot plant has been running
for a total of 13,000 hours since its commissioning and
thus enabled an improvement in the thermal cracking
process and supported the further scale-up of the Re-
Oil® technology. OMV and Borealis are pursuing the
clear ambition of becoming a leading player in chemical
and mechanical recycling technologies.
At Borealis, innovation is fundamental for contributing
to the circularity of polyolefins and creating a more sus-
tainable way of life. It also helps the Group improve its
competitiveness and enhance its efficiency and sus-
tainability – and therefore has a direct impact on peo-
ple, the planet, and profit. The change in Borealis’ own-
ership structure and subsequent partnership with OMV
has further increased the Group’s focus on the circular-
ity of polyolefins and the availability of renewable hy-
drocarbons.
In the polyolefins business, our innovation activities
concentrate on providing solutions to societal chal-
lenges as defined in the United Nations Sustainable
Development Goals. Examples include best-in-class
materials for producing water and gas pipes, insulation
for cables, and capacitor film used for transporting
goods.
In the Polyolefins business unit, key achievements in
2021 included:
▸ Infrastructure: The PE100 RC Pipe product family
was completed with the introduction of colored and
low-sagging grades, offering performance that is
among the best in the market and enabling the
even wider application of PE pipes in the construc-
tion industry.
▸ Consumer products: The stiff/tough film product
FX1003 was launched. The product performs at
least as well as the best available materials on the
market and has a superior ability to blend with post-
consumer recyclates.
▸ Circular economy solutions: Borealis launched the
white, 100% post-consumer recyclate grade
AH1040MO-90, which has been developed for in-
jection molding for houseware products and large
thin-wall packaging items.
The polyolefins business commercially launched 47
new products, beating its “21 in 2021” target. Achieving
these launches in such a challenging year demon-
strates that Borealis is a market leader in innovation
and remains true to its purpose of reinventing for more
sustainable living.
Similarly, in the base chemicals business, Borealis
looks to find innovative approaches for using new feed-
stock sources, improving resource efficiency, and re-
ducing energy consumption and flaring, which in turn
reduces emissions of greenhouse gases and other sub-
stances such as dust. These activities also include CO2
avoidance and CO2 utilization opportunities, as well as
chemical recycling.
During 2021, Borealis launched six new grades pro-
duced with renewable feedstock material as part of the
Bornewables™ portfolio. Bornewables offer product
properties equal to fossil-based products. This allows
our partners to have a quick and easy transition from
fossil-based polypropylene to a renewable feedstock-
based polypropylene.
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OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
The online portal for polyolefins customers (MyBore-
alis) supports customer service representatives and
sales managers in their daily interactions with custom-
ers. It puts easy order management at the customer’s
fingertips, along with a complete library of order, prod-
uct, and complaint documentation. The application
works around the clock, providing instant access to up-
to-date information, with ordering fully integrated with
supply chain and IT processes. A single global portal
supports eight languages, allowing organizations in Eu-
rope, North America, and South America to use it. By
the end of 2021, 18% of the order volume was via the
portal, up from 14% at the start of the year.
In 2021, a project to explore the possibilities of using
autonomous robots was kicked off. The activities suited
to such robots, such as carrying out inspections, are
being researched in a proof of concept to assess the
feasibility of this kind of solution. Technologies such as
virtual reality (for safety training and technical instruc-
tions/training), smart glasses (for remote assistance in
the field), and 3D technology (for printing machinery
parts) are also in the prototype-building or set-up
phase.
Interactive Safety Training for the Five Life Saving and
Process Safety Rules is an innovative gamified interac-
tive learning solution that helps employees and con-
tractors learn the rules through remote training and
tests. The training combines a 3D-modelled plant envi-
ronment, an engaging story, and motivating gamifica-
tion elements to simulate scenarios, enabling better
knowledge retention and faster learning than traditional
methods. Employees learn the Life Saving Rules and
Process Safety Rules in a very immersive way and can
apply theory to practice without stopping production or
risking actual injury. Around 14,000 training modules
have already been completed across the entire Bore-
alis workforce.
Projects relating to circular economy solutions (CES)
are ongoing to explore collaboration opportunities with
start-up companies, to create product and digital solu-
tions for scalable and traceable closed-loop material
flows, and to reuse systems (e.g., coffee cups and food
trays). These systems use a digital platform built by the
Borealis Digital Studio and give the necessary data in-
sights to maximize reuse, accommodate closing the
loop, and recycle plastic waste once it can no longer be
reused and reaches the end of its life. The systems
thereby create new and profitable business solutions.
Borealis entered into collaborations with various organi-
zations with complementary competencies in 2021. The
aim here is to accelerate Borealis’ progress towards
achieving circularity in manufacturing and using poly-
olefins, and reducing its carbon footprint. The following
are the main partnerships:
▸ Borealis reached an agreement with Renasci Oost-
ende Recycling NV to acquire the entire output of
its chemical recycling plant. The first quantities of
the raw material obtained through chemical recy-
cling were successfully processed at the Porvoo
cracker during a test run in September 2021. Bore-
alis expects to establish regular supply of the recy-
cled material, which will be used as an important
source of raw materials for polyolefins production.
▸ Together with TOMRA and Zimmerman, the Group
has started a state-of-the art recycling plant to pro-
duce recyclates that perform very close to a virgin
material.
▸ Borealis has an extensive patent portfolio, compris-
ing around 8,300 granted patents and around
3,000 pending patent applications. In 2021, Bore-
alis filed 133 new priority patent applications, which
further contribute to safeguarding Borealis’ proprie-
tary technologies and protecting its licensees. Many
patents also protect products and applications.
Digitalization
Stepping up digitalization in Chemicals & Materials is
one of the key drivers for transformation. Not only will it
increase the Group’s productivity and improve cus-
tomer experience, it will also support achieving sustain-
ability goals. In particular, digital solutions for the circu-
lar economy of plastics will become more important in
achieving the Group’s carbon neutrality journey.
For that reason, in 2017 Borealis decided to implement
a Digital Program, which led to the creation of the Bore-
alis Digital Studio in 2018. The Digital Studio is Bore-
alis’ creative and agile enabler for developing smart so-
lutions for customers and employees. It works closely
with the IT department and consists of a diverse, cross-
functional team of digital professionals, including de-
signers, usability experts, business analysts, software
developers, and engineers. Its mission is supporting
the Group’s businesses to adapt to a rapidly changing
environment and keeping Borealis sustainably profita-
ble by creating digital, innovative solutions that have a
positive impact on the Group’s people and business,
and the environment. Adding value is key when creat-
ing digital solutions, and end-users are always at the
heart of the process, as the solutions are built both with
and for them, following the agile methodology.
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OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Outlook
Market environment
In 2022, OMV expects the average Brent crude oil price
to be around USD 75/bbl (2021: USD 71/bbl). For
2022, the average realized gas price is anticipated to
be above EUR 25/MWh (2021: EUR 16.5/MWh).
Group
In 2022, organic CAPEX is projected to come in at
around EUR 3.5 bn1 (2021: EUR 2.6 bn), including non-
cash effective CAPEX related to leases of around
EUR 0.6 bn.
Exploration & Production
OMV expects total production to be around 470 kboe/d
in 2022 (2021: 486 kboe/d).
Organic CAPEX for Exploration & Production is
anticipated to come in at around EUR 1.3 bn in
2022 (2021: EUR 1.1 bn).
Exploration and Appraisal (E&A) expenditure is
expected to be around EUR 220 mn in 2022
(2021: EUR 210 mn).
Refining & Marketing
The OMV refining indicator margin Europe is expected
to be around USD 4.5/bbl in 2022 (2021: USD 3.7/bbl).
In 2022, fuels and other sales volumes in OMV’s mar-
kets in Europe are projected to be slightly higher than
in 2021 (2021: 16.3 mn t). Retail and commercial mar-
gins are forecast to be slightly below those in 2021.
In 2022, the utilization rate of the European refineries is
expected to be around the prior-year level (2021: 88%).
Turnarounds are planned at the Schwechat refinery in
the second quarter and at the Burghausen refinery in
the third quarter.
In 2022, natural gas sales volumes are projected to be
slightly below the 2021 level (2021: 196.4 TWh).
Organic CAPEX in Refining & Marketing is forecast at
around EUR 0.8 bn in 2022 (2021: EUR 0.6 bn).
Chemicals & Materials
In 2022, the ethylene indicator margin Europe is ex-
pected to be around the 2021 level (2021: EUR 468/t).
The propylene indicator margin Europe is expected to
be around the 2021 level (2021: EUR 453/t).
In 2022, the steam cracker utilization rate in Europe is
expected to be slightly below the 2021 level (2021:
90%). Turnarounds are planned at the Stenungsund
steam cracker in the second quarter and at the
Burghausen steam cracker in the third quarter.
In 2022, the polyethylene indicator margin Europe is
forecast to be around EUR 400/t (2021: EUR 582/t).
The polypropylene indicator margin Europe is expected
to be around EUR 600/t (2021: EUR 735/t).
In 2022, the polyethylene sales volumes excluding JVs
are projected to be above the 2021 level (2021: 1.82
mn t). The polypropylene sales volumes excluding JVs
are expected to be slightly above the 2021 level (2021:
2.13 mn t).
Organic CAPEX related to Chemicals & Materials is
predicted to be around EUR 1.3 bn in 2022 (2021:
EUR 0.8 bn).
For information about the longer-term outlook, see the
Strategy chapter.
1 Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure and excluding acquisitions and contin-
gent considerations.
75
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Risk Management
Like the oil, natural gas, and chemical 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 in order to achieve OMV’s long-
term strategic goals.
It is OMV’s view that the Group’s overall risk is signifi-
cantly lower than the sum of the individual risks due to
its integrated nature and the fact that various risks par-
tially offset each other. The balancing effects of indus-
try risks, however, can often lag or weaken. OMV’s risk
management activities therefore focus on the net risk
exposure of the Group’s existing and future portfolio.
The interdependencies and correlations between differ-
ent risks are also reflected in the Company’s consoli-
dated risk profile. Risk management and insurance ac-
tivities are centrally coordinated at the corporate level
by the Treasury and Risk Management department.
This department ensures that well-defined and con-
sistent risk management processes, tools, and tech-
niques are applied across the entire organization. Risk
ownership is assigned to the managers who are best
suited to oversee and manage the respective risk.
The overall objective of the risk policy is to safeguard
the cash flows required by the Group and to maintain a
strong investment-grade credit rating in line with the
Group’s risk appetite.
OMV is closely monitoring the development of the con-
sequences of the COVID-19 pandemic and regularly
evaluating the impact on the Group’s cash flow and li-
quidity position.
OMV monitors the increasing geopolitical tensions and
deepening crisis between Russia and Ukraine on a
continuous basis and regularly reviews the potential im-
pact on our business activities and assets. In particular,
OMV assessed and continues to assess the risks re-
lated to international sanctions on Nord Stream 2 AG
and the impact on repayment of the loan provided to
Nord Stream 2 AG by OMV. From today’s point of view
no direct impact on OMV’s Russian equity gas produc-
tion is expected. However, OMV continues to monitor
potential restrictions to related dividend flows. The
credit risk portfolio associated with counterparties and
banks located in Russia and / or potentially targeted by
international sanctions (or restrictions on international
money transfers) is under close review. International
trade restrictions and sanctions could also lead to a fur-
ther devaluation of the Russian Ruble against the Euro
and the US Dollar. Disruptions in Russian commodity
flows to Europe could result in further increases in Eu-
ropean energy prices and accelerate the risk of cost in-
flation. From today’s point of view, OMV does not ex-
pect natural gas exports from Russia to stop. In the
event of short-term gas supply disruptions from Russia,
OMV can use the remaining gas in storage to supply
customers and has access to other liquid gas market
hubs in Europe. In such an event, an emergency team
will be set up based on pre-defined internal processes.
This emergency team will continuously analyze and
evaluate the situation so that appropriate measures can
be taken if necessary. It is also responsible to com-
municate and coordinate all activities with the Austrian
regulator e-control. Please refer to Note 37 „Subse-
quent Events” of the Financial Statements for the most
recent developments of the Russia-Ukraine crisis and
the expected impact on OMV Group’s financials.
Enterprise-Wide Risk Management
Financial and non-financial risks are regularly identified,
assessed, and reported through the Group-wide Enter-
prise Wide Risk Management (EWRM) process.
The main purpose of OMV Group’s EWRM process is
to deliver value through risk-based management and
decision-making which is ensured by applying a “three
lines of defense model” (1. business management, 2.
risk management and oversight functions, 3. internal
audit). The assessment of financial, operational, and
strategic risks helps the Group leverage business op-
portunities in a systematic 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 at subsidiaries in more than
20 countries. OMV Group is constantly enhancing the
EWRM process based on internal and external require-
ments such as, for example, newly developing ESG
(Environmental, Social, and Governance) reporting
standards and frameworks.
A cross-functional committee chaired by 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 OMV Group.
76
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
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 continu-
ous monitoring of changes to the risk profile. The over-
all risk resulting from the bottom-up risk management
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 risks associated with the
Group’s strategy. The process also includes companies
that are not fully consolidated. The EWRM process
uses common risk terminology and language across
OMV Group to facilitate effective risk communication,
whereby ESG risks play a key role in the OMV risk tax-
onomy. Twice a year, the results from this process are
consolidated and presented to the Executive Board and
the Audit Committee. In compliance with the Austrian
Code of Corporate Governance, the effectiveness of
the EWRM system is evaluated by the external auditor
on an annual basis. The key financial and non-financial
risks identified with respect to OMV’s medium-term plan
are:
▸ Financial risks including market price risks and for-
▸ Operational risks, including all risks related to phys-
eign exchange risks
ical assets, production risks, project risks, person-
nel risks, IT risks, HSSE, and regulatory/compli-
ance risks
▸ Strategic risks arising, for example, from climate
change, changes in technology, risks to reputation,
or political uncertainties, including sanctions
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 ex-
change (FX) rates, and interest rates. Also of im-
portance are credit risks, which arise from the inability
of a counterparty to meet a payment or delivery com-
mitment. As an oil, gas, and chemical company, OMV
has a significant exposure to oil, natural gas, and
chemical prices. Substantial FX exposures include the
USD, RON, NOK, NZD, SEK, and RUB. The Group has
a net USD long position, mainly resulting from oil pro-
duction sales. The comparatively less significant short
positions in RON, NOK, NZD, SEK, and RUB originate
from expenses in local currencies in the respective
countries.
Management of commodity price risk, FX risk, Eu-
ropean Emission Allowances
The analysis and management of financial risks arising
from foreign currencies, interest rates, commodity
prices, European Emission Allowances, counterparties,
liquidity, and insurable risks are consolidated at the cor-
porate level. Market price risk is monitored and ana-
lyzed centrally in respect of its potential cash flow im-
pact using a specific risk analysis model that considers
portfolio effects. The impact of financial risks (e.g.,
commodity prices, currencies) on 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 commodity 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 purposes to pro-
tect the Group’s cash flow from the potential negative
impact of falling oil and natural gas prices in the E&P
segment.
In the downstream business (including Refining & Mar-
keting as well as Chemicals & Materials segments),
OMV is especially exposed to volatile refining and
chemical margins and natural gas prices, as well as in-
ventory risks. Corresponding optimization and hedging
activities are undertaken in order to mitigate those
risks. Those include margin hedges as well as stock
hedges. An optimization, trading, and hedging risk con-
trol governance system defines clear mandates includ-
ing risk thresholds for such activities. In addition, Emis-
sion Compliance Management ensures a balanced po-
sition 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 regularly analyzes
the impact of interest rate changes on interest income
and expense from floating rate deposits and borrow-
ings. 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, mon-
itored, and controlled at the Group and segment level
using predetermined credit limits for all counterparties,
banks, and security providers. The procedures are gov-
erned by guidelines at OMV Group level. Based on the
high economic uncertainty resulting from the COVID-19
77
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
pandemic, special attention is paid to early warning sig-
nals like changes in payment behavior.
Operational risks
The nature of OMV’s business operations exposes the
Group to various health, safety, security, and environ-
mental (HSSE) risks. Such risks include the potential
impact of natural disasters 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 fol-
lowing the Group’s defined risk management process.
Control and mitigation of assessed risks take place at
all organizational levels using clearly defined risk poli-
cies and responsibilities. The key Group risks are gov-
erned centrally to ensure the Group’s ability to meet
planning objectives through corporate directives, in-
cluding those relating to health, safety, security, envi-
ronment, legal matters, compliance, human resources,
and sustainability.
Pandemic risk
The global outbreak of the COVID-19 pandemic contin-
ues to have a major impact on global economic devel-
opment. Increases in COVID-19 cases around the
world following the emergence of new virus variants
combined with disruptions in supply chains and high
price inflation could lead to delays in expected demand
recovery. The consequences of the COVID-19 pan-
demic and other disruptions currently being observed,
as well as the extent and duration of the economic im-
pact, cannot be reliably estimated at this time. OMV is
responding to the situation with targeted measures to
safeguard the Company’s economic stability and the
secure supply of energy. The health and wellbeing of
every employee is the top priority.
ESG risk
OMV puts a special emphasis on five Sustainability
Strategy areas: HSSE, Carbon Efficiency, Innovation,
Employees, Business Principles, and Social Responsi-
bility. OMV Executive Board members regularly (at
least quarterly) discuss current and upcoming environ-
mental, climate, and energy-related policies and regula-
tions; related developments in the fuels and natural gas
markets; the financial implications of carbon emissions
trading obligations; the status of innovation project im-
plementation; and progress on achieving sustainability-
related targets. OMV focuses on assessing the poten-
tial vulnerabilities of the Company to climate change
(e.g., water deficiency, droughts, floods, landslides),
the impact of the Company on the environment, and
78
the mitigation actions that will ensure a successful tran-
sition to a low-carbon environment (e.g., carbon emis-
sion reductions, compliance with new regulatory re-
quirements).
IT risks
As OMV’s activities rely on information technology sys-
tems, the Group may experience disruption due to ma-
jor cyber events. Security controls are therefore imple-
mented across the Group to protect information and IT
assets that store and process information. IT-related
risks are assessed, monitored regularly, and managed
actively with dedicated information and security pro-
grams across the organization. OT (Operational Tech-
nology) related risks are reflected in the assessment of
process safety risks.
Strategic risks
In order to identify strategic risks which might have po-
tential long-term effects on the Company’s objectives,
OMV continuously monitors its internal and external en-
vironment.
Personnel risks
Through systematic employee succession and develop-
ment planning, Corporate Human Resources targets
suitable managerial employees to meet future growth
requirements in order to mitigate personnel risks.
Political and regulatory risks
In certain countries in its portfolio, OMV’s operations
are exposed to geopolitical risks, including expropria-
tion and nationalization of property; restrictions on for-
eign ownership; civil strife and acts of war or terrorism;
and political uncertainties in particular related to Libya,
Yemen, Russia, and Tunisia, as well as other countries
where OMV operates and has financial investments.
However, OMV has extensive experience in dealing
with the political environment in emerging economies.
Also, possible regulatory changes may lead to disrup-
tions or limitations in production or an increased tax
burden. OMV continuously observes political and regu-
latory developments in all markets that affect OMV’s
operations. Country-specific risks are assessed before
entering new countries.
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
OMV also evaluates the risk of potential US or EU
sanctions and their impact on planned or existing oper-
ations. OMV will ensure to stay in full compliance with
all applicable sanction laws. In particular, risks due to
political and regulatory developments both inside and
outside Europe with potential unfavorable effects on the
Nord Stream 2 project and on OMV’s activities in Rus-
sia and the Black Sea region are regularly assessed
and monitored.
Climate change-related risks
OMV consistently evaluates the Group’s exposure to
risks related to climate change in addition to the market
price risk from European Emission Allowances. Such
risks comprise the potential impact of 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 development of the Company’s business strat-
egy. Measures that we implement to manage or miti-
gate such risks are set out in the relevant sections of
this report, particularly in Sustainability and Strategy.
For further details on risk management and the use of fi-
nancial instruments, please refer to Note 28 of the Consoli-
dated Financial Statements.
For further details on climate-change-related risks and
their management, see the OMV Sustainability Report as
well as Note 2 of the Consolidated Financial Statements.
For further details on health, safety, security, and environ-
mental risks, please refer to the chapter Health, Safety,
Security, and Environment in the Directors’ Report.
79
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Other Information
Information required by section 243a of
the Unternehmensgesetzbuch (Austrian
Commercial Code)
1.
2.
3.
4.
5.
6.
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 be-
tween the two core shareholders, Österreichische
Beteiligungs AG (ÖBAG) and Mubadala Petro-
leum and Petrochemicals Holding Company L.L.C
(MPPH), which provides for coordinated behavior
and certain limitations on transfers of sharehold-
ings.
ÖBAG holds 31.5% and MPPH holds 24.9% of
the capital stock.
All shares have the same control rights.
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 Supervisory
Board must consist of at least six members
elected by the Annual General Meeting and of the
members nominated under section 110 (1) of the
Arbeitsverfassungsgesetz (Austrian Labor Consti-
tution Act). Resolutions concerning the dismissal
of members of the Supervisory 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 ob-
jects), simple majorities of the votes and capital
represented in adopting the resolution are suffi-
cient.
7.
7.a) As the authorized capital granted by the Annual
General Meeting on May 14, 2014 expired on
May 14, 2019, the Annual General Meeting de-
cided upon a new authorized capital on Septem-
ber 29, 2020. Specifically, it authorized the Exec-
utive Board until September 29, 2025 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 capi-
tal increase can also be implemented by way of
indirect offer for subscription after taking over by
one or several credit institutions according to Sec-
tion 153 Paragraph 6 Austrian Stock Corporation
80
Act. The issue price and the conditions of issu-
ance can be determined by the Executive Board
with the consent of the Supervisory Board. The
Annual General Meeting also authorized the Ex-
ecutive Board, subject to the approval of the Su-
pervisory Board, to exclude the subscription right
of the shareholders if the capital increase serves
to
(i)
adjust fractional amounts or
(ii)
satisfy stock transfer programs, in particular long-
term incentive plans, equity deferrals or other par-
ticipation programs for employees, senior employ-
ees and members of the Executive Board/man-
agement boards of the Company or one of its af-
filiates), or other employees’ stock ownership
plans.
In addition, the Supervisory Board was authorized
to adopt amendments to the Articles of Associa-
tion resulting from the issuance of shares accord-
ing to the authorized capital.
7.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 including) May 17, 2021, upon ap-
proval of the Supervisory Board, to dispose of or
utilize stock repurchased or already held by the
Company to grant treasury shares to employees,
senior employees and/or members of the Execu-
tive 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 authoriza-
tion 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 Aus-
trian Commercial Code) or by third parties for the
account of the Company.
7.c) On June 2, 2021 the Annual General Meeting au-
thorized the Executive Board for a period of five
years from the adoption of the resolution, there-
fore, until and including June 1, 2026, subject to
the approval of the Supervisory Board, to dispose
of or utilize repurchased treasury shares or treas-
ury shares already held by the Company to grant
to employees, executive employees and/or mem-
bers of the Executive Board/management boards
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
of the Company or its affiliates including for pur-
poses of share transfer programs, in particular
long term incentive plans including equity defer-
rals or other stock ownership plans, and to
thereby exclude the general purchasing right of
shareholders (exclusion of subscription rights).
The authorization can be exercised as a whole or
in parts or even in several tranches by the Com-
pany, by a subsidiary (Section 189a Number 7
Commercial Code) or by third parties for the ac-
count of the Company.
8.
As of December 31, 2021, OMV has outstanding
perpetual hybrid notes in the amount of
EUR 2,500 mn which are subordinated to all other
creditors. According to IFRS, the net proceeds of
the hybrid notes in the amount of EUR 2,483 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 principal amount of
EUR 1,500 mn, in two tranches of EUR 750 mn
each:
(i)
The hybrid notes of tranche 1, with a first call date
in 2021, were called and redeemed at their princi-
pal amount (plus interest accrued) on November
30, 2021.
(ii) The hybrid notes of tranche 2 bear a fixed interest
rate of 6.250% per annum until, but excluding,
December 9, 2025, which is the first call date of
tranche 2. From December 9, 2025 (including),
tranche 2 will bear an interest rate per annum at
the relevant five-year swap rate for the relevant
interest period plus a specified margin and a step-
up of 100 basis points.
Interest is due and payable annually in arrears on
December 9 of each year, unless OMV elects to
defer the relevant interest payments. The out-
standing deferred interest must be paid under
certain circumstances, in particular, if the Annual
General Meeting of OMV resolves upon a divi-
dend payment on OMV shares.
On June 19, 2018, OMV issued a hybrid bond
with a principal amount of EUR 500 mn. The hy-
brid bond bears a fixed interest rate of 2.875%
per annum until, but excluding, June 19, 2024.
From June 19, 2024 (including), until, but exclud-
ing, June 19, 2028 the hybrid notes will bear inter-
est at a rate corresponding to the relevant five-
year swap rate plus a specified margin. From
June 19, 2028 (including), the notes will bear an
interest rate per annum at the relevant five-year
swap rate for the relevant interest period plus a
specified margin and a step-up of 100 basis
points. Interest is due and payable annually in ar-
rears 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
Annual General Meeting of OMV resolves upon a
dividend payment on OMV shares.
On September 1, 2020, OMV issued hybrid notes
with an aggregate principal amount of
EUR 1,250 mn, in two tranches (Tranche 1:
EUR 750 mn; Tranche 2: EUR 500 mn) with the
following interest payable:
(iii) The hybrid notes of tranche 1 bear a fixed interest
rate of 2.500% per annum until, but excluding
September 1, 2026, which is the first reset date of
tranche 1. From the first reset date (including),
until, but excluding, September 1, 2030, the hy-
brid notes of tranche 1 will bear interest per an-
num at a reset interest rate which is determined
according to the relevant five-year swap rate plus
a specified margin. From September 1, 2030 (in-
cluding), the hybrid notes of tranche 1 will bear an
interest rate per annum at the relevant five-year
swap rate for each interest period thereafter plus
a specified margin and a step-up of 100 basis
points.
(iv) The hybrid notes of tranche 2 bear a fixed interest
rate of 2.875% per annum until, but excluding
September 1, 2029, which is the first reset date of
tranche 2. From the first reset date (including),
until, but excluding, September 1, 2030, the hy-
brid notes of tranche 2 will bear interest per an-
num at a reset interest rate which is determined
according to the relevant five-year swap rate plus
a specified margin. From September 1, 2030 (in-
cluding), the hybrid notes of tranche 2 will bear an
interest rate per annum at the relevant five-year
swap rate for each interest period thereafter plus
a specified margin and a step-up of 100 basis
points.
Interest is due and payable annually in arrears on
September 1 of each year, unless OMV elects to
defer the relevant interest payments. The out-
standing deferred interest must be paid under
certain circumstances, in particular, if the Annual
81
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
General Meeting of OMV resolves upon a divi-
dend payment on OMV shares.
The hybrid notes outstanding as of December 31,
2021 do not have a scheduled maturity date and
they may be redeemed at the option of OMV un-
der certain circumstances. OMV has, in particular,
the right to repay the hybrid notes at certain call
dates. Any accrued unpaid interest becomes pay-
able when the notes are redeemed. In the case of
a change of control, for example, OMV may call
the hybrid notes for redemption or else the appli-
cable interest rate will be subject to an increase
according to the terms and conditions of the hy-
brid notes.
9.
The material financing agreements to which OMV
is a party and bonds issued by OMV contain typi-
cal change of control clauses.
10. There are no agreements between the Company
and members of the Executive Board and Super-
visory Board or employees regarding the payment
of compensation in the event of a public takeover
bid.
11. The most important elements of the internal con-
trol and risk management system regarding the
accounting process are the following: Govern-
ance for the internal control system is defined by
internal corporate regulations (ICS Directive and
its Annexes). Corporate Internal Audit controls the
compliance with these principles and require-
ments through regular audits, based on the an-
nual audit plan approved by the Audit Committee
of the Supervisory Board, or through ad hoc au-
dits.
The results of those audits are presented to the
Audit Committee of the Supervisory Board. For
the main “end-to-end” processes (e.g. purchase-
to-pay, order-to-cash), Group-wide Minimum Con-
trol Requirements are defined. Based on a de-
fined time plan, the implementation and the effec-
tiveness 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 internal corporate regulation. The
Group uses a comprehensive risk management
system. The essential processes of the financial
reporting system have been identified and ana-
lyzed. In addition, the effectiveness of the risk
management system is regularly evaluated by ex-
ternal auditors. The results of the evaluation are
reported to the Audit Committee of the Supervi-
sory Board.
12.
In accordance with section 267a (6) of the Com-
mercial Code, a separate consolidated non-finan-
cial report will be issued.
Subsequent events
Please refer to Note 37 in the Consolidated Financial Statements.
82
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
Vienna, March 9, 2022
The Executive Board
Alfred Stern m.p.
Chairman of the Executive Board,
Chief Executive Officer and
Executive Officer Chemicals & Materials
Johann Pleininger m.p.
Deputy Chairman of the Executive Board
and Executive Officer Exploration & Production
Reinhard Florey m.p.
Chief Financial Officer
Elena Skvortsova m.p.
Executive Officer Marketing & Trading
Martijn van Koten m.p.
Executive Officer Refining
83
OMV ANNUAL REPORT 2021 / DIRECTORS’ REPORT
84
CONSOLIDATED CORPORATE
GOVERNANCE REPORT
85 — 96
OMV ANNUAL REPORT 2021 / 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 transparency for every
stakeholder, and, ultimately, the sustainable and long-term creation of value.
Austrian law, the Articles of Association, the Internal
Rules for the corporate bodies, and the Austrian Code
of Corporate Governance (ACCG) provide the core
legal framework for OMV’s corporate governance. 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 advisors for the 2020
financial year. The report on the evaluation is available
at www.omv.com and confirms OMV’s compliance with
the ACCG in relation to all compulsory “comply or
explain” rules (the “C-rules”) and all recommended
rules (the “R-rules”). As for C-rules 27 and 28,
explanations concerning the structure of the
compensation for the Executive Board and the
Supervisory Board of OMV is described in the
Remuneration Policy. The implementation of the policy
and the performance outcomes of the financial year
under review are set out in the annual Remuneration
Report for OMV’s Executive Board and Supervisory
Board prepared starting with the 2020 financial year.
The Remuneration Policy and the Remuneration
Report are published on www.omv.com. The next
external evaluation is scheduled to be carried out for
the 2022 financial year.
For OMV Petrom S.A., a company consolidated in the
OMV Group and the shares of which are publicly listed
on the Bucharest Stock Exchange as well as on the
London Stock Exchange, the relevant Corporate Gov-
ernance Report can be found at
www.omvpetrom.com/en/about-us/corporate-govern-
ance-aboutus.
In accordance with the recommendation in the AFRAC
opinion on the Corporate Governance Report, the Cor-
porate Governance Report of the parent company and
the consolidated Corporate Governance Report are
combined in one report.
Executive Board1
Alfred Stern, *1965
Date of initial appointment: April 1, 2021
End of the current period of tenure: August 31, 2024
Chairman of the Executive Board and Chief Executive
Officer, Executive Board member for the Chemicals &
Materials division
On September 1, 2021, Alfred Stern became Chairman
of the Executive Board of OMV Aktiengesellschaft, hav-
ing already served as Executive Board member for
Chemicals & Materials since April 1, 2021. He took
over management of the Company five months after his
appointment as Executive Board member for the newly
established Chemicals & Materials division. Before that,
he had served as CEO of Borealis since July 2018. He
had been an Executive Board member for the preced-
ing six years as well, with responsibility for the areas of
Polyolefins and Innovation & Technology. His career at
Borealis began in 2008 as Senior Vice President Inno-
vation & Technology. Prior to joining Borealis, Alfred
Stern was at DuPont de Nemours and held various
management positions in R&D, Sales & Marketing, and
Quality & Business Management in Switzerland, Ger-
many, and the United States. Alfred Stern has a PhD in
Material Science and a Masters in Polymer Engineering
and Science, both from Montanuniversität in Leoben
(Austria).
Functions in major subsidiaries of the OMV Group
Company
Function
OMV Petrom S.A.
Borealis AG
President of the Supervisory Board
(since September 1, 2021)
Chairman of the Executive Board
(until April 1, 2021)
Member of the Supervisory Board
(since April 1, 2021)
Chairman of the Supervisory Board
(since September 1, 2021)
OMV Downstream GmbH Managing Director
(since April 1, 2021)
1 The Supervisory Board of OMV Aktiengesellschaft has approved a reorganization of the OMV Group involving splitting and expanding the current area of Refin-
ing & Petrochemical Operations into two areas: Refining, on the one hand, and Chemicals & Materials, on the other hand. The changes took effect as of April 1,
2021.
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Rainer Seele, *1960
Date of initial appointment: July 1, 2015
Rainer Seele resigned from his position as Chairman of
the Executive Board and Chief Executive Officer as of
August 31, 2021.
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 Deputy
Chief Executive Officer, Executive Board member for
the Exploration & Production division
Rainer Seele received his PhD in chemistry at the Uni-
versity of Göttingen and subsequently held senior ap-
pointments at the BASF Group, where he first became
a member of the Executive Board in 2000. He was sub-
sequently Chairman of the Executive Board at
WINGAS GmbH. From 2009 until 2015, he served as
Chairman of the Board of Directors of Wintershall Hold-
ing GmbH.
Functions in major subsidiaries of the OMV Group
Company
Function
Johann Pleininger started his professional career at
OMV in 1977 and later studied mechanical and eco-
nomic engineering. During his time at OMV, he held
various senior positions. From 2007 to 2013, he was an
Executive Board member at OMV Petrom in Bucharest,
responsible for Exploration & Production. Prior to his
appointment as Executive Board member of OMV, he
was the Senior Vice President responsible for the core
Upstream countries Romania and Austria as well as for
the development of the Black Sea region.
OMV Petrom S.A.
Borealis AG
President of the Supervisory Board
(until August 31, 2021)
Chairman of the Supervisory Board
(until August 31, 2021)
Member of the Supervisory Board of FK Austria Wien
AG
Functions in major subsidiaries of the OMV Group
Function
Member of the Supervisory Board
Company
OMV Petrom S.A.
OJSC Severneftegazprom Member of Board of Directors
Deputy Chairman of Board of
SapuraOMV Upstream
Directors
Sdn. Bhd.
Managing Director
OMV Exploration & Pro-
duction GmbH
OMV Austria Exploration &
Production GmbH
Chairman of the Supervisory Board
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Reinhard Florey, *1965
Date of initial appointment: July 1, 2016
End of the current period of tenure: June 30, 2024
Chief Financial Officer
Reinhard Florey graduated with a degree in mechanical
engineering and economics from Graz University of
Technology while also completing his music studies at
the University of Fine Arts. He started his career in cor-
porate consulting and strategy consulting. From 2002
to 2012, he worked in various positions worldwide for
Thyssen Krupp AG. Until June 2016, he was CFO and
Deputy CEO of Outokumpu Oyj.
Member of the Supervisory Board of Wiener Börse AG
Functions in major subsidiaries of the OMV Group
Company
Function
OMV Petrom S.A.
Borealis AG
Deputy Chairman of the Supervi-
sory Board
(until April 28, 2021)
Member of the Supervisory Board
Elena Skvortsova, *1970
Date of initial appointment: June 15, 2020
End of the current period of tenure: June 14, 2023
Executive Board member for the Marketing & Trading
division. From April 1, 2021 until June 30, 2021 she
was Executive Board Member for the Refining division
on an interim basis.
Elena Skvortsova studied at Moscow State Linguistic
University and the Thunderbird School of Global Man-
agement in the United States. In 1994, she began her
professional career at Bayer AG as an international
management trainee; her last position at Bayer was As-
sociate Director of Bayer Corporation (Healthcare).
Starting in 2001, Elena Skvortsova held various leader-
ship positions at Baxter International in the United
States, Central and Eastern Europe, and the United
Kingdom. Her tenure there lasted 13 years. In 2015,
she moved to Linde AG and was responsible for man-
aging the Middle East and Eastern Europe region.
From March 2019 to April 2020, following the merger of
Linde and Praxair, she was head of Praxair Canada
Inc., a 100% subsidiary of Linde plc.
Functions in major subsidiaries of the OMV Group
Company
Function
OMV Petrom S.A.
Member of the Supervisory Board
(since April 28, 2021)
OMV Downstream GmbH Managing Director
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Martijn van Koten, *1970
Date of initial appointment: July 1, 2021
End of the current period of tenure: June 30, 2024
Executive Board member for the Refining division
Martijn van Koten was born in the Netherlands, where
he studied Chemical Engineering at Delft University of
Technology. He began his professional career at Shell
in 1994, taking on several management and technical
positions in the refining and downstream business in
the UK, Germany, and the Netherlands. Starting 2004,
Martijn van Koten held manufacturing site general man-
ager positions at Shell in Sweden and Singapore, be-
fore becoming Vice President Manufacturing East &
Middle East in Singapore in 2009 and Vice President
Supply & Distribution Americas in the United States in
2013. In 2013, Martijn van Koten joined Borealis as Ex-
ecutive Board Member Operations, HSE & PTS, in
Austria. From 2018 to June 2021, he was Borealis’ Ex-
ecutive Board Member Base Chemicals & Operations
in Austria.
Functions in major subsidiaries of the OMV Group
Company
Function
OMV Petrom S.A.
Borealis AG
Member of the Supervisory Board
(since August 1, 2021)
Member of the Executive Board
(until June 30, 2021)
Member of the Supervisory Board
(since September 1, 2021)
OMV Downstream GmbH Managing Director
(since July 1, 2021)
Managing Director
(since July 14, 2021)
OMV Gas Logistics
Holding GmbH
Thomas Gangl, *1971
Date of initial appointment: July 1, 2019
Thomas Gangl resigned as member of the Executive
Board responsible for the Refining & Petrochemical Op-
erations division as of March 31, 2021.
Thomas Gangl began his OMV career in 1998 as a pro-
cess engineer at the Schwechat refinery after studying
process engineering at Vienna University of Technol-
ogy and mechanical engineering at the University of
Salford (Manchester). In 2011, he became General
Manager of OMV Deutschland GmbH and Site Man-
ager in Burghausen. He was appointed Site Manager in
Schwechat in 2014 and took over the role of Senior
Vice President of the Refining & Petrochemicals Busi-
ness Unit with responsibility for all three OMV refineries
in 2016. On April 1, 2021, Thomas Gangl became the
Chairman of the Executive Board of Borealis AG.
Functions in major subsidiaries of the OMV Group
Company
OMV Petrom S.A.
Borealis AG
Function
Member of the Supervisory Board
(until April 28, 2021)
Member of the Supervisory Board
(until April 1, 2021)
Chairman of the Executive Board
(since April 1, 2021)
OMV Downstream GmbH Managing Director
OMV Gas Logistics
Holding GmbH
(until March 31, 2021)
Managing Director
(until March 31, 2021)
Working practices of the Executive Board
The approval requirements, responsibilities of individual
Executive Board members, decision-making proce-
dures, and the approach to conflicts of interest are gov-
erned 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.
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Supervisory Board
OMV’s Supervisory Board consists of ten members
elected by the General Meeting (shareholders’ repre-
sentatives) and five members delegated by the Group’s
Works Council1. Six of the current shareholders’ repre-
sentatives were elected at the 2019 Annual General
Meeting (AGM), two at the 2020 AGM, and two at the
2021 AGM. The members of OMV’s Supervisory Board
in 2021 and their appointments to supervisory boards
of other domestic or foreign listed companies as well as
any management functions held are shown below.
Mark Garrett, *1962
Chairman
(Chief Executive Officer, Marquard & Bahls AG)
Seats: Axalta Coating Systems (Chairman until August
2021), Umicore
Thomas Schmid, *1975
Deputy Chairman (until July 5, 2021)
(Chief Executive Officer, Österreichische Beteiligungs
AG until July 5, 2021)
Seats: VERBUND AG, Telekom Austria AG (until
July 5, 2021)
Christine Catasta, *1958
Deputy Chairwoman2 (since September 10, 2021)
Chief Executive Officer, Österreichische Beteiligungs
AG until January 31, 2022)
Seats: VERBUND AG, Telekom Austria AG
Saeed Al Mazrouei, *1980
Deputy Chairman (since June 2, 2021)
(Deputy Chief Executive Officer, Direct Investments,
Mubadala Investment Company)
Seats: Abu Dhabi Commercial Bank (ADCB)
Mansour Mohamed Al Mulla, *1979
(until June 2, 2021)
(Platform CFO Petroleum & Petrochemicals, Mubadala
Investment Company PJSC)
Seats: Aldar Properties PJSC
Stefan Doboczky, *1967
(Chief Executive Officer, Heubach Group since January
10, 2022; Chief Executive Officer, Lenzing AG until
September 30, 2021)
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
(Chief Executive Officer, VIENNA INSURANCE
GROUP AG – Wiener Versicherung Gruppe)
Seats: voestalpine AG
Christoph Swarovski, *1970
(Chief Executive Officer, Tyrolit AG)
Seats: no seats in domestic or foreign listed companies
Cathrine Trattner, *1976
Seats: no seats in domestic or foreign listed companies
Gertrude Tumpel-Gugerell, *1952
Seats: Commerzbank Aktiengesellschaft, VIENNA IN-
SURANCE GROUP AG Wiener Versicherung Gruppe,
AT&S Austria Technologie & Systemtechnik Aktienge-
sellschaft
Delegated by the Group’s Works Council
(employee representatives)
Alyazia Ali Al Kuwaiti, *1979
Deputy Chairwoman (until June 2, 2021, since then
member)
(Executive Director Upstream & Integrated, Petroleum
& Petrochemicals, Mubadala Investment Company)
Seats: no seats in domestic or foreign listed companies
Alexander Auer, *1969 (since September 1, 2021)
Hubert Bunderla, *1965 (since January 18, 2021)
Herbert Lindner, *1961 (until August 31, 2021)
Nicole Schachenhofer, *1976 (since January 18,
2021)
Angela Schorna, *1980
Gerhard Singer, *1960
1 Due to the resignation of Christine Asperger (October 1, 2020) and Alfred Redlich (December 2, 2020), three members delegated by the Group’s Works Council
were part of the Supervisory Board at the end of 2020 until January 18, 2021.
2 Christine Catasta declared in a letter dated January 25, 2022 that she would resign from the Supervisory Board with effect from the end of the Annual General
Meeting that resolves on the discharge for the financial year 2021.
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
More detailed information about all members of OMV’s
Supervisory Board, including their professional careers,
can be obtained from OMV’s website at
www.omv.com > About us > Supervisory Board.
Diversity
The main considerations in selecting the members of
the Supervisory Board are relevant knowledge, per-
sonal integrity, and experience in executive positions.
Furthermore, aspects of diversity of the Supervisory
Board with respect to the internationality of the mem-
bers, the representation of both genders, and the age
structure are taken into account. The Supervisory
Board includes seven women (as per December 31,
2021) and three non-Austrian nationals. The members
of the Supervisory Board are aged between 41 and 69.
Independence
The Supervisory Board has defined the criteria that
constitute independence (resolutions dated March 21,
2006, and March 25, 2009). In addition to the guide-
lines set out in Annex 1 of the ACCG, the Supervisory
Board has established the following criteria with regard
to its members elected by the General Meeting:
▸ A Supervisory Board member shall not serve on the
▸ A Supervisory Board member shall not hold stock
Executive Board of an OMV Group company.
options issued by the Company or any affiliated
company, or receive any other performance-related
remuneration from an OMV Group company.
▸ A Supervisory Board member shall not be a share-
holder 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 influ-
ence, e.g. through the right to appoint Board mem-
bers) or represent such a shareholder.
All members elected by the General Meeting have de-
clared their independence from the Company and its
Executive Board during the 2021 financial year and up
to the time of making such declarations (C-rule 53 of
the ACCG). Under C-rule 54 of the ACCG, Mark Gar-
rett, Stefan Doboczky, Karl Rose, Elisabeth Stadler,
Christoph Swarovski, Cathrine Trattner, and Gertrude
Tumpel-Gugerell 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 2021 financial year and up to the time of
making such declarations. Furthermore, the above-
mentioned members of the Supervisory Board were
nominated for the election as Supervisory Board mem-
bers by Österreichische Beteiligungs AG, which must
comply with the strict independence and incompatibility
criteria of the Austrian Code of Corporate Governance
when nominating or appointing persons as members of
the Supervisory Boards of its affiliated companies and
ensure that they exercise their activities on the Supervi-
sory Boards of the affiliated companies independently
of their own interests or those of legal entities closely
associated with them.
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Positions and committee memberships in 20211
Name
Mark Garrett
Christine Catasta
Thomas Schmid
Saeed Al Mazrouei
Alyazia Ali Al Kuwaiti
Mansour Mohamed Al Mulla
Stefan Doboczky
Karl Rose
Elisabeth Stadler
Christoph Swarovski
Cathrine Trattner
Gertrude Tumpel-Gugerell
Alexander Auer
Hubert Bunderla
Herbert Lindner
Nicole Schachenhofer
Angela Schorna
Gerhard Singer
Supervisory Board and
committees 20211
SB PNC PPC
AC
RC
STC
Term of office
C
DC
DC
DC
M2
M
M
M
M
M
M
M
M
M
M
M
M
M
C
DC
DC
DC
M2
M
–
–
–
–
–
–
–
M
–
M
–
–
M
DC
DC
DC
M2
M
M
C
–
–
–
–
M
M
M
M
–
M3
M
M
M
–
DC
–
–
–
DC
–
M
C
–
M
M3
–
M
M
DC
C
C
DC
–2
–
–
–
–
M
–
M
–
–
–
–
–
–
– September 29, 2020, to 2023 AGM
DC September 10, 2021 to 2022 AGM4
– May 14, 2019, to July 5, 2021
– June 2, 2021, to 2024 AGM
DC May 22, 2018, to 2024 AGM
– May 22, 2018, to 2021 AGM
C May 14, 2019, to 2022 AGM
– May 18, 2016, to 2024 AGM
M May 14, 2019, to 2022 AGM
– May 14, 2019, to 2022 AGM
– May 14, 2019, to 2022 AGM
– May 19, 2015, to 2022 AGM
M Since September 1, 2021
– Since January 18, 2021
– June 1, 2013, to August 31, 2021
M Since January 18, 2021
– Since March 23, 2018
– Since September 26, 2016
1 Abbreviations: SB = Supervisory Board, PNC = Presidential and Nomination Committee, PPC = Portfolio and Project Committee, AC = Audit Committee,
RC = Remuneration Committee, STC = Sustainability and Transformation Committee, C = Chairman/Chairwoman, DC = Deputy Chairman/Chairwoman, M =
Member, AGM = Annual General Meeting
2 Deputy Chairwoman until June 2, 2021
3 Member until January 18, 2021
4 Christine Catasta declared in a letter dated January 25, 2022 that she would resign from the Supervisory Board, to which she was originally elected until the
2024 AGM, with effect from the end of the AGM that resolves on the discharge for the financial year 2021.
Working practices of the Supervisory Board
The Supervisory Board fulfills its duties – in particular
supervising the Executive Board and advising 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. Five commit-
tees ensure that the best possible use is made of the
Supervisory Board members’ expertise. Brief descrip
tions of these committees are given below (see also the
Report of the Supervisory Board for an overview of the
individual committees’ main activities in 2021). In 2021,
9 meetings of the Supervisory Board and 21 committee
meetings were held. In particular, the Executive Board
and the Supervisory Board discussed OMV’s strategy1.
No member of the Supervisory Board attended fewer
than half of the meetings of the Supervisory Board. Mr.
Al Mazrouei attended fewer than half of the meetings of
the committees he has been elected to.
1 Further information can be found in the OMV Annual Report 2021 / Chapter „Strategy”.
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Attendance of Supervisory Board and committee meet-
ings in 2021 was as follows:
Attendance of Supervisory Board and
committee meetings in 20211
SB
Name
9/9
Mark Garrett
Christine Catasta2
2/2
Thomas Schmid3
6/6
Saeed Al Mazrouei4
3/3
Alyazia Ali Al Kuwaiti
8/9
Mansour Mohamed Al Mulla5 4/6
7/9
Stefan Doboczky
8/9
Karl Rose
8/9
Elisabeth Stadler
7/9
Christoph Swarovski
9/9
Cathrine Trattner
9/9
Gertrude Tumpel-Gugerell
Alexander Auer6
3/3
Hubert Bunderla7
9/9
Herbert Lindner8
6/6
Nicole Schachenhofer7
9/9
9/9
Angela Schorna
9/9
Gerhard Singer
AC
6/6
2/2
3/3
6/6
RC
6/6
1/1
3/3
1/3
3/35
PNC
6/6
1/1
5/5
0/1
6/6
3/5
PPC
3/3
2/2
1/1
0/2
3/3
1/1
3/3
3/3
5/6
6/6
5/6
6/6
6/6
6/6
6/6
5/6
2/2
5/5
3/3
1/19 1/1
5/5
3/3
1/19
1 Abbreviations: SB = Supervisory Board, PNC = Presidential and Nomination
Committee, PPC = Portfolio and Project Committee, AC = Audit Committee,
RC = Remuneration Committee
2 Since September 10, 2021
3 Until July 5, 2021
4 Since June 2, 2021
5 Until June 2, 2021
6 Since September 1, 2021
7 Since January 18, 2021
8 Until August 31, 2021
9 Until January 18, 2021
Pursuant to C-rule 36 of the ACCG, the Supervisory
Board is tasked with discussing the efficiency of its ac-
tivities annually, in particular its organization and work
procedures (self-evaluation).
Presidential and Nomination Committee
This committee is empowered to take decisions on
matters of urgency. The Supervisory Board may trans-
fer other duties and powers of approval to the Presi-
dential and Nomination Committee on an ad hoc or per-
manent basis. In its capacity as the Nomination Com-
mittee, 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 recommendations to the General Meeting
for appointments to the Supervisory Board. There were
six meetings of the Presidential and Nomination Com-
mittee in 2021, in which discussions focused on Execu-
tive and Supervisory Board matters.
Audit Committee
This committee performs the duties established by sec-
tion 92 (4a) Austrian Stock Corporation Act. The com-
mittee held six meetings during the year. It predomi-
nantly 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 fi-
nancial statements. Gertrude Tumpel-Gugerell is the fi-
nancial expert on the Audit Committee within the mean-
ing of section 92 (4a) (1) Austrian 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 activi-
ties. In 2021, the auditors Ernst & Young
Wirtschaftsprüfungsgesellschaft m.b.H. (including their
network within the meaning of section 271b Austrian
Commercial Code) received EUR 3.55 mn for the an-
nual audit, EUR 0.53 mn for other assurance services,
EUR 0.56 mn for tax advisory services, and EUR 0.07
mn for other engagements.
Portfolio and Project Committee
This committee supports the Executive Board in pre-
paring complex decisions on key issues where neces-
sary and reports on these decisions and any recom-
mendations to the Supervisory Board. In 2021, three
meetings of the Portfolio and Project Committee were
held.
Sustainability and Transformation Committee
The purpose of the Sustainability and Transformation
Committee is to support the Supervisory Board in re-
viewing and monitoring OMV’s strategy with regard to
sustainability, and ESG-related standards and perfor-
mance. It also focuses on processes and performance
specifically in HSSE (Health, Safety, Security, and En-
vironment) and in particular regarding climate change.
Furthermore, the committee serves to support and
oversee the transformation process toward a more sus-
tainable business model, including the cultural integra-
tion of strategically significant acquisitions. This com-
mittee was established by resolution of the Supervisory
Board on October 28, 2021, and met for the first time
on March 9, 2022.
Remuneration Committee
This committee deals with all aspects of the remunera-
tion of Executive Board members and with their em-
ployment contracts. The committee’s membership does
not include employee representatives. The committee
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
is empowered to conclude, amend, and terminate Ex-
ecutive Board members’ employment contracts and to
make decisions on the awarding of bonuses (variable
remuneration components) and other such benefits to
them. The Remuneration Committee met six times dur-
ing 2021. Executive Board members were invited to at-
tend parts of some of the meetings of the Remunera-
tion Committee.
hkp/// group was hired by the Remuneration Committee
to provide remuneration advice to the committee on the
appropriate structure and level of Executive Board
compensation in line with regulatory requirements and
market practice.
In 2021, hkp/// group was also commissioned by OMV
and OMV Petrom to provide advice to OMV on govern-
ance processes between OMV and OMV Petrom, and
to OMV Petrom on the development and drafting of the
Remuneration Policy for the Executive Board and Su-
pervisory Board of OMV Petrom. hkp/// group provided
advice on the development of OMV’s Remuneration
Report. This consulting company did not advise the
OMV Executive Board in matters relating to Executive
Board remuneration, ensuring independence with re-
spect 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 ac-
cordance with section 95 (5) (12) Austrian Stock Corpo-
ration Act. Attention is drawn to the fact that the Super-
visory Board members Mark Garrett, Stefan Doboczky,
and Elisabeth Stadler are or were in the reporting year
chairpersons of the executive boards of companies with
which supply contracts and insurance and related con-
tracts, respectively, were concluded under normal mar-
ket and industry terms and conditions (including consid-
eration). Although these contracts do not raise con-
cerns in relation to a potential conflict of interest, re-
lated Supervisory Board approvals have been obtained.
The Internal Rules of the Supervisory Board contain
detailed procedures for handling conflicts of interest on
the part of Supervisory Board members.
Employee participation1
The Group’s Works Council holds regular meetings
with the Executive Board in order to exchange infor-
mation on developments affecting employees. Further-
more, the Group’s Works Council has made use of its
right to delegate members to the Supervisory Board
(one employee representative for every two members
elected by the General Meeting). Therefore, out of the
15 Supervisory Board members, 5 members are em-
ployee representatives.
Rights of minority shareholders
▸ General Meeting: An Extraordinary General Meet-
ing must be convened at the request of sharehold-
ers 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 respec-
tive 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 Associ-
ation.
▸ All shareholders, having duly provided evidence of
their shareholding, are entitled to attend General
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 fa-
vor of the same person but he or she has not been
elected, then this person must be declared as Su-
pervisory Board member.
Women’s Advancement and Diversity
Concept
Diversity is an enormous strength that OMV actively
builds on now, and in the future. Consequently, OMV
strives to continuously develop new initiatives and
measures that promote diversity and equal opportuni-
ties. OMV is committed to its Group diversity 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 satisfac-
tory gender balance in all fields of business activity.
OMV is committed to supporting women’s advance-
ment to managerial positions. The strategic objective is
1 Due to the resignation of Christine Asperger (October 1, 2020) and Alfred Redlich (December 2, 2020), three members delegated by the Group’s Works Council
were part of the Supervisory Board at the end of 2020 until January 18, 2021.
94
OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
with regard to gender, age, employee background, sen-
iority 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 kinder-
gartens attended by children of OMV employees.
The Executive Board and Supervisory Board consider
the described measures and programs to foster the di-
versity of the workforce as a key factor in strengthening
the diversity of the internal pool of Executive Board
succession candidates. The Presidential and Nomina-
tion Committee concerns itself at least once a year with
the identification and development of high-potential em-
ployees. In addition to internal succession planning, the
Supervisory Board also makes use of external recruit-
ments in order to best fill open Executive Board posi-
tions. When selecting Executive Board members – be it
internally or externally – special attention is given to
balance gender, age, and international experience in
addition to professional skills.
Since Elena Skvortsova joined on June 15, 2020, there
is one woman on the Executive Board of OMV. The Ex-
ecutive Board members of OMV Aktiengesellschaft are
between 51 and 59 years old, are from three different
nationalities, and have acquired extensive international
management experience.
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, after sub-
mission of the proposal by the Supervisory Board of
OMV Aktiengesellschaft and before the election by the
Annual General Meeting of OMV AG takes place. The
selection of candidates is based on various criteria,
particularly the candidates’ professional skills, personal
integrity, independence, and impartiality. In addition, di-
versity aspects such as the representation of both gen-
ders, a balanced age distribution, and internationality of
members is taken into consideration.
to achieve the best diversity mix at the senior
management level. The aim is to increase the
proportion of women in management roles, from
20.9%1 currently to 25% by 2025, through a number of
initiatives such as mentoring, 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 is
27% (2020: 25%), 20.9%1 of whom are in management
and executive positions. In OMV’s leadership develop-
ment programs, the proportion of women was 49% in
2021 (2020: 42%). In OMV’s Upstream integrated grad-
uate development program for technical skill pools, the
proportion of women was 31% in 2021 (2020: 31%).
The topic of diversity has been incorporated into all
Leadership Development programs and embedded into
the OMV People Strategy.
We designed and implemented targeted training pro-
grams, such as SHEnergy, a blended-learning program
for women at OMV, to support women’s leadership
skills. The program focuses on active inclusion
skills and also emphasizes the power of mentor-
ing and networking in developing female leaders.
We also held Career Aspiration Talks to make women
at OMV more visible and in doing so to also strengthen
our pipeline of future female leaders.
In 2021, we launched the “New Parent Program” in
Austria focused on equipping future new parents with
information on parental leave and part-time models, the
related long-term financial aspects, and things to con-
sider when returning to work. The program’s target
group includes male as well as female employees to
encourage more equal distribution of childcare respon-
sibilities.
In March 2021, we hosted a Diversity & Inclusion Week
built around International Women’s Day to create
awareness and support the topic.
OMV promotes talents from different backgrounds, thus
ensuring the best mix in diverse teams. OMV especially
supports the recruitment and development of women in
technical positions.
By using gender-neutral language in OMV’s job adver-
tisements and publishing all job advertisements inter-
nally, together with the constant monitoring of equality
1 Advanced & Executive Level
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OMV ANNUAL REPORT 2021 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
At the end of 2021, the Supervisory Board of OMV in-
cluded seven women, corresponding to a share of
47%. In line with the strategic orientation of the Com-
pany, particular focus will be given to further strength-
ening industry-specific expertise and the internationality
of Supervisory Board members. With members aged
between 41 and 69 years, the Supervisory Board’s age
structure is balanced.
External evaluation of Corporate
Governance
An external evaluation of OMV’s compliance with the
provisions of the ACCG is performed biennially. For the
2020 financial year, OMV had engaged Deloitte Legal
(Jank Weiler Operenyi Rechtsanwälte GmbH, attorney
Johannes Lutterotti). The official questionnaire of the
Austrian Working Group for Corporate Governance was
used for the evaluation, and the result was that OMV is
in full compliance with the Austrian Code of Corporate
Governance including all non-compulsory recommen-
dations. The report on the evaluation is available for
download on OMV’s website (www.omv.com).
Vienna, March 9, 2022
The Executive Board
Alfred Stern m.p.
Johann Pleininger m.p.
Reinhard Florey m.p.
Elena Skvortsova m.p.
Martijn van Koten m.p.
96
CONSOLIDATED FINANCIAL
STATEMENTS AND NOTES
97 — 226
98 — Auditor’s Report
108 — Consolidated Income Statement for 2021
109 — Consolidated Statement of Comprehensive Income for 2021
110 — Consolidated Statement of Financial Position as of December 31, 2021
112 — Consolidated Statement of Changes in Equity for 2021
114 — Consolidated Statement of Cash Flows for 2021
Notes to the Consolidated Financial Statements
115 — Basis of Preparation and Accounting Policies
131 — Segment Reporting
136 — Notes to the Income Statement
145 — Notes to the Statement of Financial Position
179 — Supplementary Information on the Financial Position
198 — Other Information
216 — Oil and Gas Reserve Estimation and Disclosures (unaudited)
225 — Executive Board
Key Audit Matters
Key audit matters are those matters that, in our profes-
sional 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 financial 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 mat-
ters for our audit:
1.
The impact of climate change and the energy
transition on the financial statements
2. Recoverability of equity-accounted investments
3. Recoverability of intangible exploration and evalu-
4.
5.
ation (E&E) assets
Estimation of oil and gas reserves
Valuation of provision for decommissioning and
restoration obligations
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Auditor’s Report1
Report on the Consolidated Financial
Statements
Audit Opinion
We have audited the consolidated financial statements
of
OMV Aktiengesellschaft, Vienna,
and of its subsidiaries (the Group) comprising the con-
solidated statement of financial position as of Decem-
ber 31, 2021, the consolidated income statement, the
consolidated statement of comprehensive 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 fi-
nancial statements were prepared in accordance with
the legal regulations and present fairly, in all material
respects, the assets and the financial position of the
Group as of December 31, 2021 and its financial per-
formance for the year then ended in accordance with
the International Financial Reporting Standards (IFRSs)
as adopted by EU, and the additional requirements un-
der Section 245a Austrian Company Code (UGB).
Basis for Opinion
We conducted our audit in accordance with the regula-
tion (EU) no. 537/2014 (in the following "EU regulation")
and in accordance with Austrian Standards on Auditing.
Those standards require that we comply with Interna-
tional Standards on Auditing (ISA). Our responsibilities
under those regulations and standards are further de-
scribed 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 Princi-
ples and professional requirements and we have ful-
filled our other ethical responsibilities in accordance
with these requirements. We believe that the audit evi-
dence we have obtained until the date of this auditor’s
report is sufficient and appropriate to provide a basis
for our opinion by this date.
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. Sec-
tion 281 paragraph 2 UGB (Austrian Company Code) applies to alternated versions.
98
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
We evaluated management’s key assumptions related
to climate change and energy transition risks and how it
impacted the critical accounting estimates and judge-
ments on different areas of the financial statements.
Specifically, our work included, but was not limited to,
the following procedures:
▸ Assess the design and implementation of controls
in the estimation processes, with a focus on how
the impact of climate change and energy transition
was considered for the key assumptions;
▸ Analyse with those responsible for group strategy
and group reporting OMV’s view on the impact of
climate change and energy transition on key as-
sumptions used in the base case scenario and
stress test analysis;
▸ Reading of information in the director’s report (strat-
egy and sustainability) and consider its consistency
with the assumptions used by management when
preparing its energy transition base case scenario
and stress test analysis;
▸ Assessing OMV’s mapping of the impact of climate
change and energy transition risks into accounting
estimates and judgements included in the financial
statements;
▸ Evaluate OMV’s assessment of key assumptions
(oil and gas price, CO2 price, refining and petro-
chemical margins and cracks, power prices and
spreads, volume develop-ment) used in the base
case comparing it to external market data and other
resources where available; and
▸ Assess the adequacy of the disclosures made in
the financial statements regarding the impact of cli-
mate change and energy transition, including the
sensitivities due to the stress test analysis in Note 2
(Accounting policies, judgements and estimates).
The impact of climate change and the energy tran-
sition on the financial statements
Climate change and energy transition impact many ar-
eas of accounting estimates and judgements.
The risk is that accounting estimates and judgement do
not properly reflect the impact of material climate
change and energy transition.
As included in Note 2 (Accounting policies, judgements
and estimates) to the financial statements, OMV has
considered the short- and long-term effects of climate
change and energy transition in preparing the consoli-
dated financial statements.
The note also explains, that IFRS’s requires the use of
assumptions that represent management’s current best
estimate of the range of expected future economic con-
ditions, which may differ from company ambitions and
public climate targets.
OMV’s management has established for its midterm
plan assumptions a base case scenario, which is used
for estimates in various areas of the Financial State-
ments, including amongst others impairment of assets,
useful lives and decommissioning provision. The base
case scenario is aligned with IEA Stated Policies Sce-
nario (STEPS) taken from the World Economic Outlook
and adjusted such that the EU, the United States,
China, Japan and South Korea (with a two-year delay
for political alignment and measuring effectiveness) are
following the IEA Sustainable Development Scenario
(SDS) and meeting the Paris Agreement targets.
In addition, OMV performed a stress test analysis, us-
ing a decarbonization scenario which is built on the IEA
SDS Scenario, where the entire world reaches the
Paris Agreement commitment to be net-zero by 2070,
in order to assess the impact of this scenario on the re-
coverability of assets and valuation of liabilities.
OMV Group’s disclosures about the impact of climate
change and energy transition on the financial state-
ments, including sensitivities due to the stress test
analysis, are included in Note 2 (Accounting policies,
judgements and estimates).
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OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
We assessed management’s assessment of the recov-
erability of the carrying value of equity-accounted in-
vest-ments by evaluating if and how management de-
termines a need of impairment. Where an impairment
test was required, we evaluated management’s as-
sumptions.
Specifically, our work included, but was not limited to,
the following procedures:
trols in the valuation process;
▸ Assess the design and implementation of the con-
▸ Review and evaluation of management’s assess-
▸ Assess the determination of cash generating units;
▸ Reconcile the assumptions used within the future
ment of the existence of impairment indicators;
cash flow models to approved budgets and busi-
ness plans;
impact in the cash flow models;
▸ Assess the consideration of COVID-19-pandemic
▸ Check the mathematical accuracy of the cash flow
▸ Compare of cash flow projections with external
▸ Involve our valuation specialists for analyzing of the
market data and other available external sources
models;
discount-, exchange- and growth rates and as-
sessing the valuation models;
▸ Assess the historical accuracy of management’s
budgets and forecasts by comparing them to actu-
al performance and to prior year;
▸ Review of management’s sensitivity analysis over
key assumptions and perform additional own sen-
sitivity analysis in order to assess the impact of
possible changes of assumptions on the recover-
ability; and
▸ Assess the adequacy of the disclosures in the fi-
nancial statements.
Recoverability of equity-accounted investments
As of December 31, 2021, the carrying value of equity-
accounted investments amounted to EUR 6,887 mn
(after an impairment charge of EUR 669 mn for Abu
Dhabi Oil Refining Company).
Under IFRS, an entity is required to assess, whether
impairment indicators or indications for the reversal of
impairment losses recognised in prior periods exist and
if they exist, an impairment test is required.
The assessment of the recoverability of the carrying
amount of equity-accounted investments requires
judgement in assessing whether there is an indication
that the investment should be impaired and in measur-
ing any such impairment.
For the equity-accounted investment Abu Dhabi Oil Re-
fining Company, registered in Abu Dhabi, impairment
indicators were identified. The impairment test per-
formed by the management led to an impairment.
The principal risk relates to management’s estimates of
future margin assumptions, production volumes, cash
flows and discount rates, which are used to project the
recoverability.
OMV Group’s disclosures about equity-accounted in-
vestments and the impairment testing related hereto
are included in Note 2 (Accounting policies, judgements
and estimates), Note 7 (Depreciation, amortization, im-
pairments and write ups) and Note 16 (Equity-ac-
counted investments).
100
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
Recoverability of intangible exploration and evalua-
tion (E&E) assets
The carrying value of intangible E&E assets amounted
to EUR 967 mn at December 31, 2021, after a write-off
(impairment) of EUR 184 mn in 2021.
Under IFRS 6, Exploration for and Evaluation of Min-
eral Resources, exploration and evaluation assets shall
be assessed for impairment when facts and circum-
stances suggest that the carrying value of an explora-
tion and evaluation asset may exceed its recoverable
amount.
The assessment of the carrying value requires man-
agement to apply judgement and estimates in as-
sessing whether any impairment has arisen at year
end, and in quantifying any such impairment.
The principal risks relate to the assessment of manage-
ment’s intention to proceed with a future work program
for a prospect or licence, the likelihood of licence re-
newal, and the success of drilling and geological analy-
sis to date. In addition, the recoverability of exploration
and evaluation assets may also be impacted by climate
risk and energy transition as described in the key audit
matter above.
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, impairments and
write-ups) and Note 14 (Intangible assets).
We evaluated management’s assessment of the carry-
ing value of intangible E&E assets performed with ref-
erence to the criteria of IFRS 6 and the Group’s ac-
counting policy.
Specifically, our work included, but was not limited to,
the following procedures:
▸ 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 discussions with sen-
ior management as to the intentions and strategy of
the Group;
▸ Read Executive Board minutes of meetings and
consider whether there were negative indicators
that certain projects might be unsuccessful;
▸ Discuss with management about the status of the
▸ Assess whether the Group has the ability to finance
largest exploration projects;
any planned future exploration and evaluation activ-
ity;
▸ Identify the existence of any fields where the
Group’s right to explore is either at, or close to, ex-
piry and review management’s assessment
whether there are any risks related to renewal of
the license;
▸ Review of management’s assumptions where an
E&E asset has been impaired and review of the val-
uation;
▸ Assess the adequacy of the disclosures in the fi-
▸ The procedures described in the key audit matter
nancial statements; and
regarding climate change and energy transition
above.
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OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
Our procedures have focused on management’s esti-
mation process in the determination of oil and gas re-
serves.
Specifically, our work included, but was not limited to,
the following procedures:
▸ Walkthrough and understand the Group’s process
and controls associated with the oil and gas re-
serves estimation process;
▸ Test controls of the oil and gas reserves review
▸ Analysis of the internal certification process for
process;
technical and commercial specialists who are re-
sponsible for oil and gas reserves estimation;
▸ Assess the competence of both internal and exter-
nal specialists and the objectivity and independ-
ence of external specialists, to consider whether
they were appropriately qualified to carry out the
estimation of oil and gas reserves;
▸ Analyze the latest reports of DeGolyer and Mac-
Naughton (D&M) on their reviews performed in
2021 of the group’s estimated oil and gas reserves
in Romania, UAE, Austria, New Zealand, Norway
and Libya;
▸ 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 estimates
were included appropriately in the Group’s consid-
eration of impairment, in accounting for deprecia-
tion & amortization and the valuation of the financial
asset related to the reserves redetermination right;
and
▸ Assess the adequacy of the disclosures in the fi-
nancial statements.
Estimation of oil and gas reserves
Oil and gas reserves are an indicator of the future po-
tential of the group’s performance.They have an impact
on the financial statements as they are the basis for
▸ production profiles in future cash flow estimates;
▸ depreciation, amortization and impairment charges
▸ the valuation of the financial asset at the amount of
and
EUR 432 mn related to the reserves redetermina-
tion right out of the acquisition of an interest in the
Yuzhno Russkoye field in 2017.
The estimation of oil and gas reserves requires judge-
ment and assumptions made by management and en-
gineers due to the technical uncertainty in assessing
quantities.
The principal risk of the oil and gas reserves estimate is
the impact on the group’s financial statements through
impairment testing, depreciation & amortization, de-
commissioning provision estimate, and the valuation of
the financial asset related to the reserves redetermina-
tion right.
OMV Group’s disclosures about oil and gas reserves
and related impairment testing are included in Note 2
(Accounting policies, judgements and estimates),
Note 7 (Depreciation, amortization, impairments and
write ups), Note 9 (Other operating expenses), Note 18
(Financial assets) and Note 23 (Provisions).
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OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
Valuation of provision for decommissioning and
restoration obligations
We assessed management’s estimation of the provi-
sion for decommissioning and restoration obligations.
The total provision for decommissioning and restoration
obligations amounted to EUR 3,756 mn at December
31, 2021.
Group’s core activities regularly lead to obligations re-
lated 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 decommissioning
and restoration obligations. In addition, the valuation of
provision for decommissioning and restoration obliga-
tions may also be impacted by climate risk and energy
transition as described in the key audit matter above.
OMV Group’s disclosures about the provision for de-
commissioning and restoration obligations are included
in Note 2 (Accounting policies, judgements and esti-
mates) and Note 23 (Provisions).
Specifically, our work included, but was not limited to,
the following procedures:
▸ Assess the design and implementation of the con-
trols over the decommissioning and restoration obli-
gations estimation process;
▸ Compare current estimates of costs with actual de-
commissioning and restoration costs previously in-
curred. Where no previous data was available, we
reconciled cost estimates to third party support or
the Group’s engineers’ estimates;
▸ Inspection of supporting evidence for any material
▸ Confirm whether the decommissioning dates are
revisions in cost estimates during the year;
consistent with the Group’s budget and business
plans;
analysis of discount rates and inflation rates;
▸ Involve our valuation specialists to assist us in the
▸ Test the mathematical accuracy of the decommis-
▸ Assess the adequacy of the disclosures in the fi-
▸ The procedures described in the key audit matter
sioning and restoration obligation calculation;
nancial statements; and
regarding climate risk and energy transition above.
103
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Other Information
Management is responsible for the other information.
The other information comprises the information in-
cluded in the annual report and the annual financial re-
port, but does not include the consolidated financial
statements, the directors’ report for the Group and the
auditor’s report thereon. We received the "Consolidated
Corporate Governance Report" and the "Consolidated
Report on the Payments Made to Government" until the
date of this audit opinion, the rest of the annual report
and the annual financial report is estimated to be pro-
vided 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 ex-
press any form of assurance conclusion thereon.
In connection with our audit of the consolidated finan-
cial statements, our responsibility is to read the other
information and, in doing so, to consider whether the
other information is materially inconsistent with the con-
solidated financial statements or our knowledge ob-
tained in the audit, or otherwise appears to be materi-
ally misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other infor-
mation, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and of
the Audit Committee for the Consoli-
dated 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 require-
ments under Section 245a Austrian Company Code
(UGB) for them to present a true and fair view of the
assets, the financial position and the financial perfor-
mance of the Group and for such internal controls as
management determines are necessary to enable the
preparation of consolidated financial statements that
are free from material 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 manage-
ment either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
The Audit Committee is responsible for overseeing the
Group’s financial reporting process.
104
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Auditor’s Responsibilities for the Audit
Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an
audit conducted in accordance with the EU regulation
and in accordance with Austrian Standards on Auditing,
which require the application of ISA, always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered mate-
rial if, individually or in the aggregate, they could rea-
sonably be expected to influence the economic deci-
sions of users taken on the basis of these financial
statements.
As part of an audit in accordance with the EU regula-
tion and in accordance with Austrian Standards on Au-
diting, which require the application of ISA, we exercise
professional judgment and maintain professional scep-
ticism throughout the audit.
We also:
▸ identify and assess the risks of material misstate-
ment of the consolidated financial statements,
whether due to fraud or error, design and perform
audit procedures responsive to those risks, and ob-
tain 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 resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of in-
ternal control;
▸ obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effective-
ness of the Group’s internal control;
▸ evaluate the appropriateness of accounting policies
used and the reasonableness of accounting esti-
mates and related disclosures made by manage-
ment;
▸ conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or con-
ditions 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 attention in our auditor’s report to
the related disclosures 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, in-
cluding the disclosures, and whether the consoli-
dated financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation;
▸ obtain sufficient appropriate audit evidence regard-
ing the financial information of the entities or busi-
ness activities within the Group to express an opin-
ion on the consolidated financial statements. We
are responsible for the direction, supervision and
performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Audit Committee regarding,
among other matters, the planned scope and timing of
the audit and significant audit findings, including any
significant deficiencies in internal control that we iden-
tify during our audit.
We also provide the Audit Committee with a statement
that we have complied with relevant ethical require-
ments regarding independence, and to communicate
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 Com-
mittee, 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 mat-
ters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circum-
stances, we determine that a matter should not be
communicated in our report because the adverse con-
sequences of doing so would reasonably be expected
to outweigh the public interest benefits of such commu-
nication.
105
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Report on Other Legal and Regulatory
Requirements
Comments on the Director’s Report for the Group
Pursuant to Austrian Generally Accepted Accounting
Principles, the directors’ report for the Group is to be
audited as to whether it is consistent with the consoli-
dated financial statements and as to whether the direc-
tors’ 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 Aus-
trian Generally Accepted Accounting Principles.
We conducted our audit in accordance with Austrian
Standards on Auditing for the audit of the directors’ re-
port for the Group.
Opinion
In our opinion, the directors’ report for the Group was
prepared in accordance with the valid legal require-
ments, comprising the details in accordance with Sec-
tion 243a Austrian Company Code (UGB), and is con-
sistent with the consolidated financial statements.
Statement
Based on the findings during the audit of the consoli-
dated financial statements and due to the thus obtained
understanding concerning the Group and its circum-
stances no material misstatements in the directors’ re-
port for the Group came to our attention.
Additional information in accordance with article 10
EU regulation
We were elected as auditor by the ordinary general
meeting on June 2, 2021. We were appointed by the
Supervisory Board on June 22, 2021. 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 re-
ferred to in article 11 of the EU regulation.
We declare that no prohibited non-audit services (arti-
cle 5 par. 1 of the EU regulation) were provided by us
and that we remained independent of the audited com-
pany in conducting the audit.
Responsible Austrian Certified Public Accountant
The engagement partner is Mr. Gerhard Schwartz, Cer-
tified Public Accountant.
Vienna, March 9, 2022
Ernst & Young
Wirtschaftsprüfungsgesellschaft m.b. H.
Katharina Schrenk m.p.
Wirtschaftsprüfer/Certified Public Accountant
Gerhard Schwartz m.p.
Wirtschaftsprüfer/Certified Public Accountant
106
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
107
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Consolidated Income Statement for 2021
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, impairments and write-ups
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
2021
2020
35,555
933
600
37,087
16,550
1,877
38
18,465
(20,257)
(3,645)
(658)
(3,750)
(2,746)
(280)
(688)
5,065
19
161
(334)
(40)
(194)
4,870
(2,066)
2,804
2,093
94
617
6.40
6.40
(9,598)
(1,892)
(325)
(2,418)
(1,896)
(896)
(389)
1,050
19
177
(280)
(91)
(175)
875
603
1,478
1,258
84
136
3.85
3.85
108
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
for 2021
Consolidated Statement of Comprehensive Income
In EUR mn
Net income for the year
Currency translation differences
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
Note
2021
2020
2,804
1,478
21
3, 6, 9
28
16
23
18
28
16
21
21
946
(1,234)
883
63
210
386
(176)
0
(1,233)
(1)
38
419
(380)
(102)
1,156
(1,298)
53
(1)
17
(0)
4
(2)
(113)
(6)
69
(118)
(41)
(10)
8
(33)
18
8
1,192
3,996
3,164
94
739
(1,407)
70
(4)
84
(9)
109
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Consolidated Statement of Financial Position
as of December 31, 2021
Note
2021
2020
14
15
16
18
19
25
17
18
18
19
26
20
3,161
18,569
6,887
3,730
113
1,265
33,724
3,150
4,518
5,148
107
621
5,050
18,595
3,443
19,203
8,321
3,447
103
1,179
35,695
2,352
3,316
3,018
36
537
2,854
12,112
1,479
53,798
1,464
49,271
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
110
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Equity and Liabilities
In EUR mn
Share capital
Hybrid capital
Reserves
Equity of stockholders 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
2021
2020
327
2,483
12,695
15,505
327
3,228
10,184
13,739
6,491
21,996
6,159
19,899
1,299
7,275
887
1,415
3,683
643
587
118
1,309
17,216
4,860
795
131
350
1,301
72
360
4,367
1,440
13,677
1,458
8,019
943
1,280
3,926
576
454
135
1,229
18,020
4,304
850
141
703
278
72
304
3,095
868
10,616
909
53,798
736
49,271
22
21
23
24
24
24
23
23
24
24
25
24
24
24
24
23
23
24
24
20
111
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Consolidated Statement of Changes in Equity for 2021
Consolidated Statement of Changes in Equity in 2021¹
In EUR mn
Share
capital
Capital
reserves
Hybrid
capital
Revenue
reserves
Currency
translation
differences
January 1, 2021
Net income for the year
Other comprehensive income for the year
Total comprehensive income for the year
Dividend distribution and hybrid coupon
Changes in hybrid capital
Disposal of treasury shares
Share-based payments
Increase/(decrease) in non-controlling interest
Reclassification of cash flow hedges to balance sheet
December 31, 2021
327
—
—
—
—
—
—
—
—
—
327
1,506
—
—
—
—
—
1
7
—
—
1,514
3,228
—
—
—
—
(745)
—
—
—
—
2,483
10,502
2,187
61
2,248
(699)
(43)
—
—
—
—
12,008
(1,785)
—
875
875
—
—
—
—
—
—
(910)
Consolidated Statement of Changes in Equity in 2020¹
In EUR mn
January 1, 2020
Net income for the year
Other comprehensive income for the year
Total comprehensive income for the year
Capital increase
Dividend distribution and hybrid coupon
Disposal of treasury shares
Share-based payments
Increase/(decrease) in non-controlling interests
Reclassification of cash flow hedges to balance sheet
December 31, 2020
1 See Note 21 – OMV equity of the parent
Share
capital
Capital
reserves
Hybrid
capital
Revenue
reserves
Currency
translation
differences
327
—
—
—
—
—
—
—
—
—
327
1,506
—
—
—
—
—
3
(3)
—
—
1,506
1,987
—
—
—
1,241
—
—
—
—
—
3,228
9,832
1,341
(3)
1,338
—
(673)
—
—
5
—
10,502
(694)
—
(1,091)
(1,091)
—
—
—
—
—
—
(1,785)
112
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Share of other compr.
income of equity-
Hedges
accounted investments Treasury shares
Equity of
stockholders
of the parent
Non-controlling
interests
Total equity
51
—
134
134
—
—
—
—
—
(13)
173
(86)
—
0
0
—
—
—
—
—
—
(86)
(3)
—
—
—
—
—
0
—
—
—
(3)
13,739
2,187
1,071
3,258
(699)
(789)
2
7
—
(13)
15,505
6,159
617
121
739
(268)
—
—
—
(147)
8
6,491
19,899
2,804
1,192
3,996
(967)
(789)
2
7
(147)
(5)
21,996
Share of other compr.
income of equity-
Hedges
accounted investments Treasury shares
Equity of
stockholders
of the parent
Non-controlling
interests
Total equity
41
—
(61)
(61)
—
—
—
—
—
71
51
18
—
(107)
(107)
—
—
—
—
—
3
(86)
(4)
—
—
—
—
—
1
—
—
—
(3)
13,012
1,341
(1,262)
80
1,241
(673)
4
(3)
5
73
13,739
3,851
136
(146)
(9)
—
(209)
—
—
2,519
8
6,159
16,863
1,478
(1,407)
70
1,241
(882)
4
(3)
2,524
81
19,899
113
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Consolidated Statement of Cash Flows for 2021
Consolidated Statement of Cash Flows
In EUR mn
Net income for the year
Depreciation, amortization, impairments and write ups
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
Cash flow from operating activities excluding net working capital effects
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
Decrease in non-controlling interest
Dividends paid to stockholders of the parent (incl. hybrid coupons)
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
12
12
6, 9
6, 18, 31
16, 35
11, 31
11, 31
23
23
26
17
18, 19
24
2021
2,804
3,935
10
2,056
(1,135)
24
(267)
(619)
2,007
175
(207)
(156)
78
(13)
(16)
221
8,897
(1,084)
(1,932)
1,136
(1,881)
7,017
2020
1,478
3,197
(846)
244
(402)
45
(12)
(57)
228
168
(164)
(160)
53
(60)
21
(948)
2,786
288
145
(82)
351
3,137
14, 15
18
3
(2,497)
(382)
—
(1,960)
(194)
(3,880)
397
661
(1,820)
250
(2,287)
61
(4)
(733)
(265)
—
(2,977)
(25)
2,195
2,869
5,064
14
72
15
(5,948)
3,338
(797)
(96)
—
(673)
(206)
1,241
2,808
(66)
(69)
2,938
2,869
15
26
26
26
21
22
21
26
26
26
5,050
2,854
114
OMV ANNUAL REPORT 2021 / 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 inte-
grated, international oil, gas and chemical company
with activities in Exploration & Production, Refining &
Marketing and Chemicals & Materials.
These financial statements have been prepared and
are in compliance with International Financial Re-
porting 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 de-
scribed in Note 2 – Accounting policies, judgements
and estimates.
The consolidated financial statements for 2021 have
been prepared in million EUR (EUR mn,
EUR 1,000,000). Accordingly, there may be rounding
differences.
The consolidated financial statements comprise the fi-
nancial statements of OMV Aktiengesellschaft and the
entities it controls (its subsidiaries) as at December 31,
2021. The financial statements of all consolidated com-
panies are prepared in accordance with uniform group-
wide accounting policies. A list of subsidiaries, equity-
accounted investments and other investments is in-
cluded under Note 38 – Direct and indirect investments
of OMV Aktiengesellschaft – including consolidation
method, business segment, place of business and in-
terest held by OMV.
The consolidated financial statements for 2021 were
approved and released for publication by the Supervi-
sory Board on March 9, 2022.
2 Accounting policies, judgements and estimates
1) Changes in accounting policies
The accounting policies adopted are consistent with
those of the previous financial year, except for the
changes as described below.
The Group has adopted the following amendments to
standards from January 1, 2021:
Rent Concessions
▸ Amendment to IFRS 16 Leases: Covid-19-Related
▸ Amendment to IFRS 16 Leases: Covid-19-Related
▸ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4
Rent Concessions beyond 30 June 2021
These amendments are relevant for the following types
of hedging relationships and financial instruments of
the Group, all of which extend beyond 2021:
▸ Interest rate swaps that are designated as cash
flow hedging instruments and indexed to USD LI-
BOR
▸ Other financial instruments like loan receivables,
loans and borrowings, derivative financial instru-
ments for which hedge accounting is not applied,
and commitments, indexed to LIBOR (mainly USD
LIBOR, JPY LIBOR)
and IFRS 16: Interest Rate Benchmark Reform -
Phase 2
The application of the amendments affects the Group
as follows:
The amendments did not have any material impact on
OMV’s group financial statements.
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and
IFRS 16: Interest Rate Benchmark Reform - Phase 2
The Group adopted the phase 2 amendments to
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 in which
the IASB addressed the issues that arise during the re-
form of an interest rate benchmark rate, including the
replacement of one benchmark rate with an alternative
one.
▸ Changes to contractual cash flows: The basis for
determining the contractual cash flows of financial
assets or financial liabilities to which the amortised
cost measurement applies can change as a result
of IBOR reform, for example, if the contract is
amended to replace the benchmark rate with an al-
ternative one. The Phase 2 amendments provide a
practical expedient to account for these changes in
the basis for determining contractual cash flows as
a result of interest rate benchmark reform. Under
the practical expedient, entities will account for
115
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
these changes by updating the effective interest
rate without the recognition of an immediate gain or
loss. For the year ended 31 December 2021, the
Group applied the practical expedient to the JPY
loan.
▸ Hedge accounting: When the phase 1 amendments
cease to apply, the Group will amend its hedge
designation to reflect changes which are required
by IBOR reform and will update its hedge documen-
tation by the end of the reporting period in which
the changes are made. It is not required to discon-
tinue its hedge relationships. The Group has not
made any amendments to its hedge documentation
in the reporting period relating to IBOR reform.
When the Group amends its hedge designation, the
accumulated amount outstanding in the cash flow
hedge reserve is deemed to be based on the alter-
native benchmark rate.
▸ Additional disclosures related to interest rate
benchmark reform are required. For details refer to
Note 28 – Risk Management.
2) 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
Amendments to IFRS 3 Business Combinations: Reference to the Conceptual Framework
Amendments to IAS 16 Property, Plant and Equipment: Proceeds before intended use
Amendments to IAS 37: Onerous Contracts - Cost of Fulfilling a Contract
Annual Improvements to IFRS Standards 2018-2020
IFRS 17 Insurance Contracts and Amendments to IFRS 17
Amendments to IAS 1: Classification of Liabilities as Current and Non-Current
Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies
Amendments to IAS 8: Definition of Accounting Estimates
Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
IASB effective date
January 1, 2022
January 1, 2022
January 1, 2022
January 1, 2022
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
3) Significant accounting policies, judgements and
assumptions
Use of estimates and judgements
Preparation of the consolidated financial statements
requires management to make estimates and judge-
ments that affect the amounts reported for assets, li-
abilities, income and expenses, as well as the
amounts disclosed in the notes. These estimates
and assumptions are based on historical 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 sig-
nificant impact on OMV Group results are high-
lighted below and should be read together with the
relevant notes mentioned. Significant estimates and
assumptions have been made particularly with re-
spect to
-
-
-
oil and gas reserves (see 2.3h),
provisions for decommissioning and restoration
obligations (see 2.3s and 23),
provisions for onerous contracts (see 2.3s and
23),
-
-
the recoverability of intangible assets, property,
plant and equipment and equity-accounted in-
vestments (see 2.3j and 7) as well as
the recoverability of other financial assets,
which mainly refer to the contractual position to-
wards Gazprom with regard to the reserves re-
determination of Yuzhno Russkoye field and the
expenditure recoverable from the Romanian
State related to decommissioning, restoration
and environmental obligations (see 2.3m and
18).
Effect of climate-related matters and energy tran-
sition
OMV has considered the short- and long-term ef-
fects of climate change and energy transition in pre-
paring the consolidated financial statements. The
significant accounting estimates performed by man-
agement incorporate the future effects of OMV’s
own strategic decisions and commitments on having
its portfolio adhered to the energy transition targets,
short and long-term impacts of climate-related mat-
ters and energy transition to lower carbon energy
116
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
sources together with management’s best estimate
on global supply and demand, including forecasted
commodities prices.
OMV is aware of its responsibility and will live up to
its commitment to the Paris Agreement and the EU
climate targets. OMV is committed to becoming a
net-zero emissions company by 2050 (Scopes 1, 2,
and 3) and has set interim targets for 2030 and
2040, with well-defined actions aiming to meet the
targets by 2030. Notably, by 2030, OMV aims to re-
duce its Scope 1 and 2 emissions by 30% and its
Scope 3 emissions by 20%.
Nevertheless, there is significant uncertainty around
the changes in the mix of energy sources over the
next 30 years and the extent to which such changes
will meet the ambitions of the Paris Agreement.
While companies can commit to such ambitions, fi-
nancial reporting under IFRS requires the use of as-
sumptions that represent management’s current
best estimate of the range of expected future eco-
nomic conditions, which may differ from such ambi-
tions.
OMV operates on a global market with global prod-
ucts and expects to see energy transition at different
pace in different parts of the world. Hence, OMV’s
mid term plan (MTP) assumptions, which are used
for estimates in different areas of the group financial
statements, including impairment of assets, useful
lives and decommissioning provisions, are based on
a scenario which is based on the IEA Stated Policies
Scenario (STEPS) taken from the World Economic
Outlook and adjusted such that the EU, the United
States, China, Japan, and South Korea (with a two-
year delay for political alignment and measuring ef-
fectiveness) are following the IEA Sustainable De-
velopment Scenario (SDS) and meeting the Paris
Agreement targets.
To recognize the uncertainty in the pace of the en-
ergy transition, OMV performed a stress test analy-
sis, using a decarbonization scenario which is built
on the IEA SDS Scenario, where the entire world
reaches the Paris Agreement commitment to be net-
zero by 2070. The goal of this analysis is to assess
the impact of this scenario on the recoverability of
assets and valuation of liabilities.
The entire world following the Paris agreement tar-
gets has an impact on the global demand which im-
pacts the oil and gas price assumptions, CO2 price
assumptions, refining and petrochemical margins
and cracks, power prices and spreads as well as
volume development expectations which have been
used in the stress test analysis.
Recoverability of assets
Commodity price assumptions may have a signifi-
cant impact on the recoverable amounts of E&A as-
sets, PPE and goodwill.
Oil and gas price assumptions have already been
revised in 2020 to reflect the potential impact of en-
ergy transition and led to a pre-tax impairment of
E&P oil and gas assets of EUR 1.2 bn. In 2021, the
oil and gas price assumptions in the MTP scenario
did not materially change in comparison to
2020. Consequently, no impairment losses or rever-
sals of impairments due to changes in price assump-
tions were recorded.
Management continues to monitor the relevant com-
modity price assumptions in the future. This might
lead to additional impairment losses or reversals of
impairments.
In the stress test, OMV assumes for the E&P seg-
ment a USD 15-20 lower long term oil price than in
the MTP scenario and the long term gas price to be
lower by EUR/MWh 5. According to this stress case,
the carrying amounts of the oil and gas assets with
proved reserves would have to be decreased by
EUR 4.2 bn. In addition, goodwill would decrease
by EUR 0.3 bn and some oil and gas assets with un-
proved reserves would be abandoned (pre-tax P&L
impact of EUR 0.3 bn). The remaining carrying
amount of PPE of oil and gas fields with a share of
oil production higher than 55% would be EUR 2.2 bn
in this stress case scenario.
In the R&M segment, the stress case reflects glob-
ally declining volume developments for almost all
products resulting in negative growth rates and fur-
ther decline in margins and cracks compared to the
MTP scenario. This would lead to a further decrease
in the carrying amounts in total of EUR 1.0 bn re-
lated to the Romanian refinery and the investment in
ADNOC refining. The refineries Schwechat and
Burghausen are resilient to such a scenario due to
the strong focus of these refineries on petrochemical
production.
OMV doesn’t see the C&M segment materially im-
pacted by the energy transition, hence there haven’t
been stress test assumptions different from the MTP
scenario.
117
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
The stress case was calculated using a simplified
method. The calculation is based on a DCF model
similar to a value in use calculation where no future
investments for enhancements, improvements and
restructuring have been considered. In the E&P seg-
ment, the cash flows are based on an adjusted mid-
term planning for five years and a life of field plan-
ning for the remaining years until abandonment. In
the R&M segment, the cash flows of the 5-year mid-
term planning and a terminal value are included.
The (negative) growth rates used for calculating
the terminal value are estimated in line with the ex-
pected changes in the demand of the various prod-
ucts over the next 20 years. The stress case does
not include any other changes to input factors than
prices and volumes. It does not consider conse-
quential changes that management could imple-
ment such as cost reductions, reserve reviews, di-
vestments, and changes in business plans. The
amounts presented above should therefore not be
seen as a best estimate of an expected impairment
impact following such a scenario.
Useful lives
The tangible assets in R&M will in average be fully
depreciated over the next 7 years. Demand for pe-
troleum products is expected to stay robust over this
period of time. It is therefore not expected that en-
ergy transition has a material impact on the ex-
pected useful lives of property, plant, and equipment
in the R&M segment. In the E&P segment, the re-
maining average life of field based on 2P re-
serves is 12 years and depreciation is calculated
based on the “unit-of-production” method, therefore
OMV does not expect that energy transition has a
material impact on the useful lives of property, plant
and equipment in the E&P segment. As OMV
doesn’t see the C&M segment materially impacted
by the energy transition, there is also no material im-
pact on useful lives in this segment expected.
Decommissioning provisions
The economic cut-off date of E&P oil and gas assets
does not shift significantly under the stress case
scenario. The impact on the carrying amount of the
decommissioning provisions is therefore expected to
be immaterial.
For refineries, no decommissioning provisions
are recognized. The refinery sites of OMV are ex-
pected to continue to be used for production even
under a Paris-aligned energy transition scenario.
Whereas the refineries in Europe have a strong fo-
cus on the production of chemicals and further
measures for transformation of these refineries will
118
be taken, also ADNOC Refining is expected to con-
tinue to operate under such a scenario.
a) Business combinations and goodwill
Business combinations are accounted for using the ac-
quisition 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 proportion-
ate share of the acquiree’s identifiable net assets.
Any contingent consideration is measured at fair value
at the date of acquisition. Contingent consideration
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 aggregate
of the consideration transferred, the amount recognized
for non-controlling interest and the fair value of the eq-
uity previously held by OMV in the acquired entity over
the net identifiable assets acquired and liabilities as-
sumed. 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 col-
lected on behalf of third parties.
When goods such as crude oil, LNG, oil and petro-
chemical products and similar goods are sold, the deliv-
ery of each quantity unit normally represents a single
performance obligation. Revenue is recognized when
control of the goods has transferred to the customer,
which is the point in time when legal ownership as well
as the risk of loss has passed to the customer 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 recog-
nized 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 in-
terest or entitlement. An adjustment of production costs
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
is recognized at average cost for the difference be-
tween 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 R&M 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 trans-
action prices allocated to unperformed performance
obligations for such contracts. Contracts for the delivery
of oil contain variable 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 transaction 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
Other revenues include revenues from commodity con-
tracts which are in the scope of IFRS 9. 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.
In addition, other revenues include an adjustment of
revenues from considering the national oil company’s
profit share as income tax in certain production sharing
agreements in the E&P segment (see 2.3f), 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 E&P 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 depreciation,
amortization, impairment charges and write-ups.
e) Research and development
Expenditure related to research activities is recognized
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.
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
119
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
more oil companies and the host country/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 construction
(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 2.3s).
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 E&P, see 2.3h) are
amortized or depreciated on a straight-line basis over
the useful economic life.
Useful life
Intangible assets
Years
Goodwill
Software
Concessions, licenses, contract-related intangible assets etc.
Business-specific property, plant and equipment
Indefinite
3–7
3–20, contract duration or unit-of production method
E&P
R&M
Oil and gas wells
Pipelines
Gas power plant
Storage tanks
Refinery facilities
Filling stations
Petrochemical production facilities
C&M
Other property, plant and equipment
Production and office buildings
Other technical plant and equipment
Fixtures and fittings
Unit-of-production method
20-30
8–30
40
25
5–20
15-20
20–50
10–20
3–15
h) Oil and gas assets
E&P activities are recorded using the successful efforts
method. The acquisition costs of geological and geo-
physical studies before the discovery of proved re-
serves form part of expenses for the period. The costs
of wells are capitalized and reported as intangible as-
sets until the existence or absence of potentially com-
mercially 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 discov-
ered that would justify completion as a production
well.
▸ Sufficient progress is being made in assessing the
economic and technical feasibility to justify begin-
ning field development in the near future.
▸ The period for which the entity has the right to ex-
plore in the specific area has not expired.
Significant estimates and judgements: Recover-
ability of unproved oil and gas assets
There may be cases when costs related to unproved
oil and gas properties remain capitalized over longer
periods while various appraisal and seismic activities
continue in order to assess the size of the reservoir
and its commerciality. Further decisions on the opti-
mum timing of such developments are made from a
resource and portfolio point of view. As soon as
120
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
there is no further intention to develop the discovery,
the assets are immediately impaired.
Exploratory wells in progress at year-end which are de-
termined to be unsuccessful subsequent to the state-
ment of financial position date are treated as non-ad-
justing events, meaning that the costs incurred for such
exploratory wells remain capitalized in the financial
statements of the reporting period under review and will
be expensed in the subsequent period.
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 im-
pairment. Once the reserves are proved and commer-
cial viability is established, the related assets are re-
classified into tangible assets. Development expendi-
ture on the construction, installation or completion of in-
frastructure facilities such as platforms and pipelines
and drilling development wells is capitalized within tan-
gible assets. Once production starts, depreciation com-
mences. 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 ba-
sis 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 accordance with
industry standards and reassessed at least once per
year. In addition, external reviews are performed
regularly. In 2021, DeGolyer and MacNaughton
(D&M) reviewed the reserves as of year-end 2020 of
the majority of the oil and gas assets. The 2021 re-
view did not include the reserves of the oil and gas
assets in Russia and Malaysia (last review in 2020)
and in Tunisia, KRI and Yemen (last review in 2018).
An external review of the oil and gas assets not re-
viewed in 2021 is planned for 2022.
The results of the external reviews did not show sig-
nificant deviations from the internal estimates, ex-
cept for one case. In order to obtain a reasonable
assurance on the reserves numbers of the field with
a material deviation to D&M as of 31 December
2020, OMV engaged an independent external spe-
cialist to provide an opinion on OMV’s approach for
determining the reserves, which was deemed appro-
priate.
Oil and gas reserve estimates have a significant im-
pact on the assessment of recoverability of carrying
amounts of oil and gas assets of the Group. Down-
ward revisions of these estimates could lead to im-
pairment of the asset’s carrying.
In addition, changes to the estimates of oil and gas
reserves impact prospectively the amount of amorti-
zation and depreciation as well as the valuation of
the financial asset related to the reserves redetermi-
nation right out of the acquisition of an interest in the
Yuzhno Russkoye field.
i) 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 arrangements of which the
Group has joint control together with one or more par-
ties, are classified into joint ventures or joint operations.
Joint ventures are joint arrangements in which the par-
ties that share control have rights to the net assets of
the arrangement. Joint operations are joint arrange-
ments in which the parties that share joint control have
rights to the assets, and obligations for the liabilities, re-
lating to the arrangement.
Investments in associated companies and joint ven-
tures 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 comprehensive income and other move-
ments in equity.
Significant joint exploration and production activities in
the E&P segment are conducted through joint opera-
tions which are not structured through a separate vehi-
cle. For these joint operations, OMV recognizes in the
consolidated financial statements its share of the as-
sets held and liabilities and expenses incurred jointly
with the other partners, as well as the group’s income
from the sale of its share of the output and any liabili-
ties and expenses that the group has incurred in rela-
tion to the joint operation. Acquisitions of interests in a
joint operation, in which the activity of the joint opera-
tion constitutes a business, are accounted for accord-
ing to the relevant IFRS 3 principles for business com-
bination accounting (see 2.3a).
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
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OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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 as-
sesses whether such arrangements are within or out of
scope of IFRS 11 on the basis of the relevant legal ar-
rangements such as concession, license or joint oper-
ating agreements which define how and by whom the
relevant decisions for these activities are taken. The
accounting treatment for these arrangements is basi-
cally 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.
j) Impairment of assets
Intangible assets, property, plant and equipment (in-
cluding oil and gas assets) and investments in associ-
ated companies and joint ventures are tested for im-
pairment whenever events or changes in circum-
stances indicate that an asset may be impaired. Impair-
ment tests are performed on the level of the asset or
the smallest group of assets that generates cash in-
flows that are largely independent of those from other
assets or groups of assets, called cash-generating
units (CGUs).
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 as-
sessments 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 al-
located.
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 sub-
sequent period, a reversal is recognized in profit or
loss. The increased carrying amount related to the re-
versal of an impairment loss shall not exceed the carry-
ing amount that would have been determined (net of
amortization and depreciation) had no impairment loss
been recognized in prior years.
Significant estimates and judgements: Recover-
ability of assets
Evaluating whether assets or CGUs are impaired or
whether past impairments should be reversed, re-
quire the use of different estimates and assumptions
such as price developments, production volumes
and discount rates.
The key estimates and assumptions used bear the
risk of change due to the inherent volatile nature of
the various macro-economic factors and the uncer-
tainty in asset or CGU specific factors like reserve
volumes and production profiles, which can impact
the recoverable amount of assets and/or CGUs.
The key valuation assumptions for the recoverable
amounts of E&P assets are the oil and natural gas
prices, production volumes, exchange and discount
rates. The production profiles were estimated based
on reserves estimates (see Note 2.3h) and past ex-
perience 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 there-
fore cover the whole life term of the field.
The nominal commodity price assumptions and the
EUR-USD exchange rates are listed below:
2021
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Realized gas price (EUR/MWh)
CO2 price (EUR/t)
122
2022
2023
2024
2025
2026
65
1.22
53
15
55
65
1.22
53
14
58
65
1.22
53
14
61
65
1.22
53
14
64
65
1.22
53
15
68
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
2020
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Realized gas price (EUR/MWh)
CO2 price (EUR/t)
2021
2022
2023
2024
2025
50
1.15
43
10
28
60
1.15
52
12
30
60
1.15
52
13
33
65
1.15
57
14
35
65
1.15
57
13
35
For the years 2027 until 2030, OMV assumed a
Brent oil price of USD 65/bbl which is expected to
gradually decline to USD 60/bbl until 2035. From
2035 onwards, OMV applied a Brent oil price of USD
60/bbl. All before mentioned assumptions for the
years after 2026 are based on 2026 real terms. Gas
prices are assumed to remain stable in real terms af-
ter 2026.
As there were no significant changes in the assump-
tions in 2021 in comparison to 2020, there was no
indication for an impairment due to price changes in
the E&P segment in 2021.
In 2020, OMV revised its long-term oil and gas price
assumptions in order to take into account the uncer-
tainty over the pace of the energy transition to a
lower-carbon energy sources. In addition, the short-
term oil and gas price assumption were updated in
order to reflect the significant decrease in oil and
gas prices due to the impact of the COVID-19 pan-
demic.
The assumptions used for oil and gas prices for
short and medium term are based on management’s
best estimate and were consistent with external
sources. The long-term assumptions were con-
sistent with data provided by external studies and
consider long-term views of global supply and de-
mand. In particular, OMV’s long term assumptions
and the inverse price curve applied for Brent oil, take
into consideration the impacts of climate-related
matters and energy transition to lower-carbon en-
ergy sources.
In the R&M and C&M business, the main assump-
tions for the calculation of the recoverable amounts
are the relevant margins, volumes as well as dis-
count, inflation and growth rates. The value in use
calculation is based on the cash flows of the 5-
year mid-term planning and a terminal value.
k) Assets held for sale
Non-current assets and disposal groups are classified
as held for sale if their carrying amounts are to be real-
ized by sale rather than through continued use. This is
the case when the sale is highly probable, and the as-
set 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 as-
sets once classified as held for sale are no longer
amortized or depreciated.
l) 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 underlying 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 and presented within property, plant and equip-
ment.
OMV as a lessor entered into contracts which were as-
sessed as operating leases, for which fixed and varia-
ble rent is recognized as revenue from rents and leases
over the period of the lease.
123
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Significant estimates and judgements: Leases
OMV has a significant number of contracts in which
it leases filling stations. Many of those contracts in-
clude prolongation and termination options. Prolon-
gation options or periods after termination options
are included in the lease term if it is reasonably cer-
tain 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 op-
tions. 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 ac-
count in the measurement of the leases, exist mainly
for E&P equipment in Romania, office buildings, a
plot of land in Belgium and gas storage caverns in
Germany. The prolongation option for the office
buildings and the gas storage caverns can only be
exercised in the distant future.
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 charac-
teristics 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 con-
tractual cash flows; and
▸ the contractual terms of the financial asset give rise
on specific dates to cash flows that are solely pay-
ments of principal and interest on the principal
amount outstanding.
These assets are subsequently measured at amortized
cost using the effective interest method less any impair-
ment losses. Interest income, impairment losses and
gains or losses on derecognition are recognized in
profit or loss.
124
OMV recognizes allowances for expected credit losses
(ECLs) for all financial assets measured at amortized
costs. The ECL calculation is based on external or in-
ternal credit ratings of the counterparty and associated
probabilities of default. Available forward-looking infor-
mation is taken into account, if it has a material impact
on the amount of valuation allowance recognized.
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 fi-
nancial 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 infor-
mation that is available without undue cost or effort.
Furthermore, OMV assumes that the credit risk on a fi-
nancial asset has significantly increased if it is more
than 30 days past due. If the credit quality improves for
a lifetime ECL asset, OMV reverts to recognizing allow-
ances 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 sup-
portable information that demonstrates that a more lag-
ging 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 con-
tracts with customers a simplified approach is adopted,
where the impairment losses are recognized 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 insured/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 (FVTPL) include trade re-
ceivables 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. Further-
more, this measurement category includes portfolios of
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
trade receivables held with an intention to sell them.
These assets are measured at fair value, with any
gains or losses arising on remeasurement recognized
in profit or loss.
Equity instruments are either measured at fair value
through profit or loss (FVTPL) or at fair value
through OCI (FVOCI). OMV elected irrevocably to
classify as investments at FVOCI the majority of its
non-listed equity investments which are held for strate-
gic purposes and not trading. Gains and losses on eq-
uity investments measured at FVOCI are never recy-
cled to profit or loss and they are not subject to impair-
ment 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 contrac-
tual 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 an-
other party.
Significant estimates and judgements: Fair value
and recoverability of financial assets
The management is periodically assessing the re-
ceivable related to expenditure recoverable from the
Romanian State related to obligations for decommis-
sioning and restoration costs in OMV Petrom SA.
The assessment process is considering inter alia the
history of amounts claimed, documentation process
related requirements, potential litigation or arbitration
proceedings.
As part of the acquisition of the interest in Yuzhno
Russkoye gas field in 2017, OMV took over a con-
tractual position towards Gazprom with regard to the
reserves redetermination. The volume of gas re-
serves 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 vol-
umes) or Gazprom could be obligated to compen-
sate OMV. The payment for the reserve redetermi-
nation is linked to the actual amount of the gas re-
serves. The actual volume of gas reserves in Yu-
zhno Russkoye is expected to be agreed in 2023.
The estimated volume of gas reserves is regularly
reviewed by the Group’s petroleum engineers as
part of the yearly review process and is assumed to
be lower than the contractually agreed volume (see
Note 18 – Financial Assets – for more details).
n) Derivative financial instruments and hedge ac-
counting
Derivative instruments are used to hedge risks resulting
from changes in currency exchange rates, commodity
prices and interest rates. 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
▸ a fair value hedge when hedging exposure to
changes in the fair value of a recognized asset or li-
ability,
▸ a cash flow hedge when hedging exposure to varia-
bility in cash flows that is attributable to a particular
risk associated with a recognized asset or liability or
a highly probable forecast transaction, or
▸ a net investment hedge when hedging the foreign
exchange risk in a net investment in a foreign oper-
ation.
For cash flow hedges, the effective part of the changes
in fair value is recognized in other comprehensive in-
come, while the ineffective part is recognized immedi-
ately 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 recog-
nized directly in OCI.
Hedges of net investments in foreign operations are ac-
counted for similarly to cash flow hedges. Any gain or
loss on the hedging instrument relating to the effective
portion of the hedge is recognised in OCI and accumu-
lated in the reserve for currency translation differences.
The gain or loss relating to the ineffective portion is rec-
ognised immediately in profit or loss. Gains and losses
accumulated in equity are reclassified to profit or loss
when the foreign operation is disposed of or sold.
The Group applies hedge accounting to hedges which
are affected by the interest rate benchmark reform. For
the purpose of evaluating whether there is an economic
relationship between the hedged items and the hedging
instruments, the Group assumes that the benchmark
interest rate is not altered as a result of interest rate
benchmark reform (see Note 2.1a).
Contracts to buy or sell a non-financial item that can be
settled net in cash or another financial instrument are
accounted for as financial instruments and measured at
fair value. Associated gains or losses are recognized in
profit or loss. However, contracts that are entered into
125
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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 require-
ments are not accounted for as derivative financial in-
struments, but as executory contracts.
o) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualified assets are capi-
talized 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 de-
ducted from the related asset where it is reasonable to
expect that the granting conditions will be met and that
the grants will be received.
q) Inventories
Inventories are recognized at the lower of cost and net
realizable value. Costs incurred are generally deter-
mined based on the individual costs for not inter-
changeable goods, the average price method for oil
and gas inventories or the FIFO method for petrochem-
ical products. Costs of production comprise directly at-
tributable costs as well as fixed and variable indirect
material and production overhead costs. Production-re-
lated administrative costs, the costs of company pen-
sion schemes and voluntary employee benefits are also
included. In refineries, a carrying capacity approach is
applied according to which the production costs are al-
located to product groups on the basis of their relative
market values at the end of the period.
r) Cash and cash equivalents
Cash and cash equivalents include cash balances,
bank accounts and highly liquid short-term investments
with low realization risk, i.e. negligible short-term ex-
change and interest risks. The maximum maturity at the
time of acquisition for such investments 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 reli-
ably. Provisions for individual obligations are based on
the best estimate of the amount necessary to settle the
obligation, discounted 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
126
and soil remediation activities. These decommissioning
and restoration obligations are principally of material
importance in the E&P segment (oil and gas wells, sur-
face 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 obli-
gation is calculated on the basis of best estimates. The
unwinding of discounting leads to interest expense or
income (in case of a negative discount rate) and ac-
cordingly to increased or decreased obligations at each
statement of financial position date until decommission-
ing 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: Decom-
missioning provisions
The most significant decommissioning obligations of
the Group are related to the plugging of wells, the
abandonment of facilities and the removal and dis-
posal of offshore installations. The majority of these
activities are planned to occur many years into the
future, while decommissioning 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 postpone-
ment in the future affect both the provision and the
related asset, to the extent that there is sufficient
carrying amount, otherwise the provision is reversed
to income. Significant upward revisions trigger the
assessment of the recoverability of the underlying
asset.
Provisions for decommissioning and restoration
costs require estimates of discount rates, which
have material effects on the amounts of the provi-
sion. The real discount rates applied for calculating
the provision for decommissioning and restoration
costs were between –1.97% and 5.22% (2020:
–1.96% and 3.10%).
Pensions and similar obligations: OMV has both de-
fined contribution and defined benefit pension plans. In
the case of defined contribution plans, OMV has no
obligations beyond payment of the agreed premiums,
and no provision is therefore recognized. The reported
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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 pen-
sion) and market risk. Defined benefit pension obliga-
tions are accounted for by recognizing provisions for
pensions.
Employees of Austrian Group companies whose ser-
vice began before December 31, 2002 are entitled to
receive severance payments upon termination of em-
ployment or on reaching normal retirement age. The
entitlements depend on years of service and final com-
pensation 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 pay-
ments also exist in other countries, where the Group
provides employment.
Employees in Austria and Germany are entitled to jubi-
lee payments after completion of a given number of
years of service. These plans are non-contributory and
unfunded.
Provisions for pensions, severance payments and jubi-
lee payments are calculated using the projected unit
credit method, which divides the costs of the estimated
benefit entitlements over the whole period of employ-
ment 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 subse-
quent periods. Actuarial gains and losses on obliga-
tions 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 in-
cluded in the net interest expense is recognized in
other comprehensive income.
Provisions for voluntary and mandatory separations un-
der restructuring programs are recognized if a detailed
plan has been approved by management and commu-
nicated to those affected prior to the statement of finan-
cial position date and an irrevocable commitment is
thereby established. Voluntary modifications to employ-
ees’ remuneration arrangements 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 provi-
sions for pensions, severance and jubilee entitle-
ments requires estimates for discount rates, future
increases in salaries and future increases in pen-
sions. For current actuarial assumptions for calculat-
ing expected defined benefit entitlements and their
sensitivity analysis see Note 23 – Provisions.
The biometrical basis for the calculation of provi-
sions for pensions, severance and jubilee entitle-
ments of Austrian Group companies is provided by
AVÖ 2018 P – Rechnungsgrundlagen für die Pen-
sionsversicherung (Biometric Tables for Pension In-
surance) – Pagler & Pagler, using the variant for sal-
aried employees. In other countries, similar actuarial
parameters are used. Employee turnover was com-
puted based on age or years of service respectively.
The expected retirement age used for calculations is
based on the relevant country’s legislation.
Provision for onerous contracts are recognized for
contracts in which the unavoidable costs of meeting a
contractual obligation exceed the economic benefits ex-
pected to be received under the contract. These provi-
sions are measured at the lower amount of the cost of
fulfilling the contract and any potential penalties or
compensation arising in the event of non-performance.
Significant estimates and judgements: Provi-
sions for onerous contracts
OMV concluded in the past several long-term, non-
cancellable contracts that became onerous due to
negative development of market conditions. 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 con-
tributions that partly cover the fixed costs were
based on external sources and management expec-
tations. For more details see Note 23 – Provisions.
127
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Emission allowances received free of cost from gov-
ernmental authorities (EU Emissions Trading Scheme
for greenhouse gas emissions allowances) reduce fi-
nancial obligations related to CO2 emissions; provisions
are recognized only for shortfalls (see Note 23 – Provi-
sions).
t) Non-derivative financial liabilities
Liabilities are carried at amortized cost, with the excep-
tion of derivative financial instruments, which are recog-
nized at fair value. Long-term liabilities are discounted
using the effective interest rate method.
u) Taxes on income and deferred taxes
In addition to corporate income taxes and trade earn-
ings taxes, typical E&P taxes from oil and gas produc-
tion like the country’s/national oil company’s profit
share for certain EPSAs (see 2.3f) are disclosed as in-
come taxes. Deferred taxes are recognized for tempo-
rary 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: Recover-
ability of deferred tax assets
The recognition of deferred tax assets requires an
assessment of when those assets are likely to re-
verse, 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 re-
coverability requires assumptions regarding future
taxable profits and is therefore uncertain. In OMV,
this assessment is based on detailed tax plannings
which covers in E&P entities the whole life of field
and a five year period in the other entities.
Changes in the assumptions regarding future taxa-
ble 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 De-
ferral
The fair value of share-based compensation expense
arising from the Long-term Incentive Plan (LTIP) –
128
OMV’s main equity settled plan – is estimated using a
model which is based on the expected target achieve-
ments 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 report-
ing 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 recog-
nized as an expense (including income tax), with a cor-
responding 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. Accord-
ingly, the related expense is recognized against equity.
For share-based awards, the award is settled net of tax
to the participants.
w) Fair value measurement
The fair value is the amount for which an asset or liabil-
ity 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
relevant 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
instruments 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
account.
Level 3: Valuation techniques such as discounted
cash flow models using significant
unobservable inputs (e.g. long-term price
assumptions and reserves estimates).
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
4) 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 presen-
tation 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 cre-
ates additional differences compared to the application
of the closing rates in the statement of financial position
which are directly adjusted in other comprehensive in-
come.
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)
Swedish krona (SEK)1
US dollar (USD)
1 Only applicable for Borealis Group (see below)
2021
2020
Statement of
financial
position date
1.956
24.858
369.190
1.658
9.989
4.949
85.300
10.250
1.133
Statement of
financial
position date
1.956
26.242
363.890
1.698
10.470
4.868
91.467
10.034
1.227
Average
1.956
25.641
358.520
1.672
10.163
4.922
87.153
10.147
1.183
Average
1.956
26.455
351.250
1.756
10.723
4.838
82.725
n.a.
1.142
In 2020, the items in the income statement related to
Borealis Group were converted by using the monthly
average rates instead of the annual average rate for
the period after the acquisition on October 29, 2020.
129
OMV ANNUAL REPORT 2021 / 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 be-
low.
The above listed sales transactions did not have a sig-
nificant impact on the income statement.
Chemicals & Materials
There were no significant changes in group structure in
2021.
Exploration & Production
As per May 14, 2021, OMV Petrom finalized the sale of
its 100% share in Kom-Munai LLP and Tasbulat Oil
Corporation LLP (both based in Aktau, Kazakhstan) to
Magnetic Oil Limited.
On October 29, 2020 OMV increased its stake in Bore-
alis Group from 36% to 75% which led to obtaining con-
trol and consequently full consolidation of Borealis
Group and discontinuation of the equity method.
Refining & Marketing
On May 31, 2021, OMV closed the transaction to sell
its 51% interest in Gas Connect Austria GmbH (based
in Vienna) to VERBUND. The purchase price agreed
for the 51% OMV stake in Gas Connect Austria GmbH
amounted to EUR 271 mn, less dividend payouts for
the 2020 business year totaling around EUR 33 mn (for
the 51% OMV interest). In addition, VERBUND as-
sumed the outstanding liabilities of Gas Connect Aus-
tria GmbH to OMV of around EUR 212 mn. Under the
conditions of the purchase agreement, VERBUND has
paid approximately EUR 451 mn to OMV. OMV has
settled a cash pool liability to a subsidiary of Gas Con-
nect Austria GmbH of around EUR 7 mn.
Cash flow impact of divestments
In cash flow from investing activities, the line “Proceeds
from the sale of subsidiaries and businesses, net of
cash disposed” was mainly attributable to a cash inflow
of EUR 443 mn related to the divestment of Gas Con-
nect Group and EUR 94 mn related to the divestment
of Kom-Munai LLP and Tasbulat Oil Corporation LLP,
as well as to prepayments received for the planned di-
vestments of the retail business in Germany
(EUR 75 mn) and of OMV’s business in Slovenia
(EUR 35 mn). More details are shown in the following
tables:
Net cash inflows from disposal of subsidiaries and businesses
In EUR mn
Consideration received
Less cash disposed of
Net cash inflows from disposal of subsidiaries and businesses
Net assets of disposed subsidiaries and businesses
In EUR mn
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets of disposed subsidiaries and businesses
2021
700
(39)
661
2021
965
117
312
81
689
130
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Segment Reporting
4 Segment Reporting
Changes in segment reporting
Starting with Q1/21 the OMV Group structure was reor-
ganized, which involved splitting and expanding former
operating Business Segment Downstream into two ar-
eas: Refining & Marketing and Chemicals & Materials.
Internal reporting and the relevant information provided
to the chief operating decision-maker in order to assess
performance and allocate resources has been updated
to reflect the current organization structure.
Business operations and key markets
For business management purposes, OMV is divided
into three operating Business Segments: Exploration &
Production, Refining & Marketing, and Chemicals &
Materials, as well as the segment Corporate and Other
(Co&O). Each segment represents a strategic unit with
different products and markets. Each Business Seg-
ment is managed independently. Strategic business de-
cisions 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.
Exploration & Production (E&P) engages in the busi-
ness of oil and gas exploration, development and pro-
duction and focuses on the regions Central and East-
ern Europe, North Sea, Middle East and Africa and
Asia-Pacific.
The Refining & Marketing (R&M) Business Segment
refines and markets crude and other feedstock. It oper-
ates 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. Furthermore, it op-
erates across the gas value chain with a successful gas
sales and logistics business in Europe. OMV markets
storage capacities in Austria and Germany. The busi-
ness segments’ 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.
OMV has a strong position in the markets located
within the areas of its supply, serving commercial cus-
tomers, and operating a retail business of approxi-
mately 2,100 filling stations.
OMV holds minority stakes in various equity-accounted
investments, the most significant one is the 15% partici-
pation in ADNOC Refining (United Arab Emirates) with
annual capacity of 7.1 mn t OMV share.
The Chemicals & Materials (C&M) Business Segment
is one of the world’s leading providers of advanced and
circular polyolefin solutions and a European market
leader in base chemicals, fertilizers, and plastics recy-
cling.
Since the full consolidation of Borealis in 2020, OMV
has a production capacity, including joint ventures, of
7.0 mn t base chemicals, 5.8 mn t polyolefins, 0.4 mn t
compounding and 4.3 mn t fertilizers. The majority of
production is located in Europe, with two overseas
manufacturing facilities in the United States, one in Bra-
zil and one in South Korea. In addition, OMV holds mi-
nority stakes in various equity-accounted investments,
the most significant ones being Borouge (United Arab
Emirates) a Borealis’ joint venture with ADNOC that op-
erates the largest petrochemical complex in the world
and the Baystar joint venture (United States) which
serves the customer base in the North American mar-
kets. A new plant based on Borstar technology on the
site in Pasadena is currently under construction.
OMV group is pursuing various initiatives in mechanical
and chemical recycling and renewable polyolefins.
Group management, financing and insurance activities
and certain service functions are concentrated in the
Corporate & Other (Co&O) segment.
One of the key measures 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 risk is
transferred to the customers. The net revenues of com-
modity trading activities within the scope of IFRS 9 and
hedging results are reported in the country in which the
reporting subsidiary is located. Accounting policies of
the operating segments are the same as those de-
scribed in the summary of significant accounting poli-
cies, with certain exceptions for intra-group sales and
cost allocations by the parent company, which are de-
termined in accordance with internal OMV policies.
Management is of the opinion that the transfer prices of
goods and services exchanged between segments cor-
respond to market prices. Business transactions not at-
tributable to operating segments are included in the re-
sults of the Co&O segment.
The disclosure of special items is considered appropri-
ate in order to facilitate analysis of ordinary business
performance. To reflect comparable figures, certain
items affecting the result are added back or deducted.
131
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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 envi-
ronment 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 al-
lowances. In volatile energy markets, measurement of
the costs of petroleum products sold based on histori-
cal values (e.g. weighted average cost) can have dis-
torting effects on reported results. This performance
measurement indicator enhances the transparency of
results and is commonly used in the oil industry. OMV,
therefore, publishes this measure in addition to the Op-
erating Result determined according to IFRS.
Segment reporting
In EUR mn
Sales revenues1
Intersegmental sales
Sales to third parties
2021
E&P
R&M
C&M
Co&O
Total
6,712 25,928
(4,828)
1,884 23,148
(2,780)
11,618
(1,109)
10,509
Consoli-
dation
OMV
Group
(9,079) 35,555
—
9,079
35,555
—
—
—
—
—
—
(51)
—
—
—
—
—
12
(39)
933
600
2,401
1,538
4
5,065
30
1,297
(223)
210
1,315
(418)
5,961
376
(361)
14
44,634
(9,079)
35,555
63
—
41
0
—
(74)
9
—
(6)
9
12
—
(62)
933
600
2,401
1,538
4
5,115
30
1,297
(223)
210
1,315
(430)
5,999
241
28
—
21,730
2,624
6,887
—
—
—
21,730
2,624
6,887
Other operating income
Net income from equity-accounted invest-
ments
Depreciation and amortization
Impairment losses (incl. exploration & ap-
praisal)
Write-ups
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 assets2
Additions in PPE/IA3
Equity-accounted investments4
347
274
55
1,396
325
0
2,439
14
100
(209)
492
398
12
429
718
3
922
7
713
(7)
(204)
509
—
2,837
(430)
1,001
12,217
1,251
429
3,989
621
1,325
249
534
535
495
—
1,828
—
483
—
(87)
396
—
2,224
5,283
724
5,133
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 and additions to decommissioning assets
4 Excluding assets held for sale
132
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Segment reporting information of earlier periods has
been adjusted consequently to comply with IFRS 8.29.
The tables below depict the segment reporting
information as restated after the reorganization and re-
ported in 2020:
Segment reporting
In EUR mn
Sales revenues1
Intersegmental sales
Sales to third parties
Other operating income
Net income from equity-accounted invest-
ments
Depreciation and amortization
Impairment losses (incl. exploration & ap-
praisal)
Write-ups
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 assets2
Additions in PPE/IA3
Equity-accounted investments4
2020 restated
E&P
R&M
C&M
Co&O
Total
3,705
(2,178)
1,527
180
13,996
(1,345)
12,651
265
2,884
(515)
2,368
1,391
352
(348)
4
56
20,937
(4,387)
16,550
1,892
Consoli-
dation
OMV
Group
(4,387) 16,550
—
4,387
16,550
—
1,877
(15)
31
1,335
(202)
444
210
147
1,452
120
(1,137)
31
1,185
(9)
75
1,282
—
145
12,662
1,150
389
9
111
592
4
0
—
1,568
—
(101)
(9)
84
(22)
—
—
(1,049)
(1,049)
425
996
3,955
509
1,912
—
519
5,767
251
6,020
—
39
0
—
(56)
5
—
(1)
5
9
38
1,965
1,462
230
967
39
1,084
(19)
(885)
220
—
—
—
—
83
—
—
—
—
—
38
1,965
1,462
230
1,050
39
1,084
(19)
(885)
220
—
(47)
262
28
—
425
1,612
22,646
1,938
8,321
(10)
74
—
—
—
416
1,686
22,646
1,938
8,321
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 and additions to decommissioning assets
4 Not including assets held for sale
133
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Segment reporting
In EUR mn
Sales revenues1
Intrasegmental sales
Sales to third parties
Other operating income
Net income from equity-accounted investments
Depreciation and amortization
Impairment losses (incl. exploration & appraisal)
Write-ups
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 assets2
Additions in PPE/IA3
Equity-accounted investments4
2020 reported
U/S
D/S
Co&O
Total
3,705
(2,178)
1,527
180
31
1,335
1,452
120
(1,137)
31
1,185
(9)
75
1,282
—
145
12,662
1,150
389
15,082
(63)
15,019
352
(348)
4
19,139
(2,589)
16,550
1,656
7
591
10
111
2,160
4
(101)
(9)
(965)
(1,071)
425
1,514
9,721
760
7,932
56
—
39
0
—
(56)
5
—
(1)
5
9
1,892
38
1,965
1,462
230
967
39
1,084
(19)
(885)
220
—
(47)
425
1,612
262
28
—
22,646
1,938
8,321
Consoli-
dation
OMV
Group
(2,589) 16,550
—
2,589
16,550
—
(15)
—
—
—
—
83
—
—
—
—
—
(10)
74
1,877
38
1,965
1,462
230
1,050
39
1,084
(19)
(885)
220
416
1,686
—
—
—
22,646
1,938
8,321
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 and additions to decommissioning assets
4 Not including assets held for sale
134
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
In 2021 special items for unscheduled depreciation
and write-ups were mainly driven by non-cash impair-
ment charges related to ADNOC Refining, E&P assets
and the nitrogen business of Borealis. For further de-
tails on impairments see Note 7 – Depreciation, amorti-
zation, impairments and write-ups.
Special items for asset disposals were mainly stem-
ming from a gain from the sale of the stake in the Nor-
wegian oil field Wisting.
Other special items mainly consisted of non-cash val-
uation effects of financial assets, especially related to
the reassessment of reserves redetermination rights of
the Yuzhno Russkoye field in Russia, and temporary
hedging effects in Exploration & Production. In Refining
& Marketing and Chemicals & Materials other special
items were mainly related to temporary hedging effects.
In 2020 other special items in Exploration & Produc-
tion mainly consisted of the reassessment of reserves
redetermination rights related to the field Yuzhno Russ-
koye and temporary hedging effects. Refining & Mar-
keting mainly included temporary hedging effects.
Chemicals & Materials other special items were mainly
related to revaluation effects for previously held 36%
shares in Borealis AG triggered by the acquisition of
39% additional shares.
Information on geographical areas
In EUR mn
Sales to third
parties
5,326
8,499
4,433
1,003
642
443
784
5,246
6,823
2,356
35,555
—
35,555
2021
Allocated
assets1
4,207
1,061
5,628
1,508
592
550
1,671
556
3,140
2,289
21,201
529
21,730
Equity-accoun-
ted invest-
ments2 External sales
14
31
—
—
117
—
5,352
—
45
1,328
6,887
—
6,887
3,466
3,268
3,456
584
448
402
325
2,878
1,126
598
16,550
—
16,550
2020
Allocated
assets1
4,388
1,105
6,106
1,675
619
607
1,479
639
3,187
2,343
22,148
498
22,646
Equity-accoun-
ted invest-
ments2
78
33
—
—
102
—
6,874
6
21
1,207
8,321
—
8,321
Austria
Germany
Romania
Norway
Russia
New Zealand
United Arab Emirates
Rest of CEE3
Rest of Europe
Rest of the world4
Subtotal
Not allocated assets
Total
1 Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale
2 Equity-accounted investments are allocated based on the seat of the registered office of the parent company, not including assets held for sale
3 Including Turkey
4 Rest of world: Principally Algeria, Argentinia, Brazil, Chile, China, Colombia, Egypt, India, Libya, Malaysia, Marocco, Mexico, Nigeria, Peru, South Africa, South
Korea, Singapore, Tunisia, United States of America and Yemen
Not allocated assets contained goodwill in amount of
EUR 322 mn (2020: EUR 297 mn) related to the cash-
generating unit ‘Middle East and Africa’, EUR 198 mn
(2020: EUR 183 mn) related to the cash generating unit
‘SapuraOMV’ and EUR 9 mn (2020: EUR 18 mn) re-
lated to the cash-generating unit ‘Refining West’ as
these CGUs are operating in more than one geograph-
ical area.
135
OMV ANNUAL REPORT 2021 / 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
2021
2020
34,792
15
65
683
35,555
16,076
11
58
406
16,550
Revenues from contracts with customers
In EUR mn
Crude Oil, NGL, condensates
Natural gas and LNG
Fuel, heating oil and other refining products
Chemical products
Gas storage, transmission, distribution and
transportation
Other goods and services1
Revenues from contracts with customers
Crude Oil, NGL, condensates
Natural gas and LNG
Fuel, heating oil and other refining products
Chemical products
Gas storage, transmission, distribution and
transportation
Other goods and services1
Revenues from contracts with customers
Exploration &
Production
Refining &
Marketing
Chemicals &
Materials
Corporate &
Other
OMV
Group
1,057
1,043
—
—
11
32
2,143
769
715
—
—
11
27
1,521
1,071
9,107
10,460
56
140
1,294
22,129
615
3,280
6,932
15
231
1,115
12,188
2021
—
—
—
10,347
—
160
10,507
2020
—
—
—
2,314
—
50
2,363
—
—
—
—
—
13
13
—
—
—
—
—
3
3
2,128
10,150
10,460
10,403
151
1,500
34,792
1,384
3,995
6,932
2,329
242
1,194
16,076
1 Mainly retail non-oil business and power sales in Refining & Marketing
136
OMV ANNUAL REPORT 2021 / 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 from fair value changes of trading inventories
Gains from fair value changes of other derivatives
Gains on the disposal of businesses, subsidiaries, 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
2021
127
—
126
191
282
207
933
2020
159
28
90
68
22
1,510
1,877
638
(38)
600
250
(212)
38
Foreign exchange gains from operating activities
were mainly impacted in 2021 and 2020 by USD for-
eign exchange rate development.
Gains from fair value changes of financial assets in
2020 included mainly positive discounting effects of the
asset from reserves redetermination rights related to
the acquisition of interests in the Yuzhno Russkoye
field. For further details see Note 18 – Financial assets.
Gains from fair value changes of trading invento-
ries refer to emissions certificates held for trading in
Refining & Marketing and Chemicals & Materials (Aus-
tria and Germany). For further details on Emissions cer-
tificates see Note 23 – Provisions.
Gains from fair value changes of other derivatives
were related to forward contracts of emissions certifi-
cates in Refining & Marketing and Chemicals & Materi-
als (Austria and Germany).
Gains on the disposal of businesses, subsidiaries,
tangible and intangible assets relate mostly to gains
on the sale of Wisting oil field. On December 17, 2021,
OMV (NORGE) AS, closed the divestment of its entire
25% stake in the Wisting licenses to Lundin Energy AB.
The purchase price before customary closing adjust-
ments was USD 320 mn, with a contingent payment of
up to USD 20 mn depending on final project CAPEX.
The economic effective date of the transaction was
January 1, 2021. The transaction led to a gain of
EUR 261 mn.
Residual other operating income contained mostly
storage income related to Erdöl-Lagergesellschaft
m.b.H. (EUR 43 mn) and insurance compensation re-
lated to 2020 process safety incident in Borealis
cracker in Sweden (EUR 34 mn).
2020 contained gains from revaluation and recycling ef-
fects related to the previously held 36% interest in Bo-
realis AG (EUR 1,284 mn), storage income related to
Erdöl-Lagergesellschaft m.b.H. (EUR 50 mn) as well as
insurance compensation related to a process safety in-
cident in Borealis cracker in Sweden (EUR 41 mn).
Income from equity-accounted investments was
mainly impacted by Abu Dhabi Polymers Company
Limited (Borouge). 2020 primarily contained income
from the previously held 36% interest in Borealis AG
amounting to EUR 172 mn.
Expenses from equity-accounted investments were
mainly impacted by Abu Dhabi Oil Refining Company.
For further details see Note 16 – Equity-accounted in-
vestments.
137
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
7 Depreciation, amortization, impairments and write-ups
Impairment losses are part of the income statement line
“Depreciation, amortization, impairments and
write-ups”, except for impairment losses related to ex-
ploration 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, impairments (excluding exploration & appraisal) and write-ups
In EUR mn
Depreciation and amortization
Write-ups
Impairment losses (excl. exploration & appraisal)
Depreciation, amortization, impairment losses (excluding exploration & appraisal) and write-ups
Impairment losses (including exploration & appraisal)
In EUR mn
Impairment losses (excl. exploration & appraisal)
Impairment losses (exploration & appraisal)
Impairment losses (including exploration & appraisal)
Depreciation, amortization, impairments and write-ups – 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
Write-ups
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
2021
2,401
(4)
1,353
3,750
2020
1,965
(230)
683
2,418
2021
1,353
185
1,538
2020
683
779
1,462
2021
2,401
—
2,144
257
(4)
—
(0)
(3)
1,538
185
1,303
49
2020
1,965
—
1,717
248
(230)
—
(227)
(3)
1,462
779
673
10
Impairments and write-ups in Exploration & Pro-
duction
Based on impairment testing EUR 111 mn of explora-
tion and appraisal assets were impaired in 2021, mainly
related to assets in Norway, New Zealand, Mexico and
Tunisia. Furthermore, in 2021 reported impairment
losses attributable to exploration and appraisal
(EUR 74 mn) were mainly related to unsuccessful ex-
ploration wells and exploration licenses in Australia,
Norway, Romania and New Zealand.
Moreover, impairments in 2021 included mainly unsuc-
cessful workovers and obsolete or replaced assets in
Romania (EUR 87 mn).
In 2020 the significant drop in the oil and gas prices led
to the change in OMV’s price assumptions and have
triggered impairment testing throughout the Exploration
& Production portfolio. This led to pre-tax impairments
of EUR 1,222 mn (intangible assets EUR 614 mn and
tangible assets EUR 608 mn) and pre-tax write-ups of
EUR 91 mn in 2020 for exploration and appraisal, de-
138
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
velopment and production oil and gas assets. The im-
pairments have been recorded in different countries
across the portfolio, mainly related to assets in New
Zealand, Romania, Austria and United Arab Emirates.
Moreover, the planned sale of assets in Kazakhstan by
OMV Petrom (51% subsidiary of OMV) in 2020 led to
the reclassification to “held for sale”, which triggered a
pre-tax write-up of EUR 28 mn. Other impairments in
2020 were mainly related to unsuccessful workovers
and obsolete or replaced assets in Romania
(EUR 58 mn). Furthermore, impairment losses in 2020
included impairments of EUR 149 mn related to un-
sucessfull exploration wells and exploration licenses in
Malaysia, Austria, Norway and New Zealand.
Impairments and write-ups in Refining & Marketing
The deterioration in the margin outlook led to a change
in price assumptions and triggered impairment testing
in the ADNOC Refining and Trading CGU which is ac-
counted for at-equity. This led to an impairment of
EUR 669 mn due to lower refining margins and produc-
tion volumes in ADNOC Refining using an after-tax dis-
count rate of 6.61%. A decrease in the margin of USD
1/bbl for all years would lead to an additional impair-
ment of approximately EUR 600 mn.
In 2020 there were no significant impairments in the
segment Refining & Marketing. The long-term power
and CO2 price assumptions were revised in 2020, tak-
ing into account the improved power generation market
in Romania. This led to the full reversal of impairments
for the Brazi gas-fired power plant in Romania amount-
ing to EUR 107 mn pre-tax based on an after-tax dis-
count rate of 4.26%.
Impairments in Chemicals & Materials
Impairment losses of EUR 444 mn were recognized for
the nitrogen business unit of Borealis Group to reflect
the fair value less cost of disposal as of December 31,
2021. The valuation was based on the binding offer
from EuroChem for the acquisition of the diposal group
received on February 2, 2022.
The lack of profitability in recent years and the signifi-
cant deviation in 2021 of the financial performance of
the Rosier Group from the budget qualified as a trigger-
ing event for an impairment test. The main reasons
were the market conditions being increasingly competi-
tive with the pressure of the vertically integrated com-
petitors and disruption in the raw material supply during
the year. As a result, property, plant and equipment
was impaired by EUR 39 mn in 2021.
8 Exploration expenses
The following financial information represents the
amounts included within the Group totals relating to ex-
ploration for and appraisal of oil and natural gas
resources. All such activities are recorded within the
Exploration & Production segment.
Exploration for and appraisal of mineral resources
In EUR mn
Impairment losses (exploration & appraisal)
Other exploration expenses
Exploration expenses
Total intangible assets – exploration and appraisal expenditure
incl. acquisition of unproved reserves
Net cash used in operating activities
Net cash used in investing activities1
2021
2020
185
95
280
779
117
896
967
85
(169)
1,260
106
122
1 Overall amount reported in 2021 represents a net cash inflow due to the sale of OMVs 25% stake in the Wisting oil field in Norway leading to a cash inflow of
EUR 290 mn.
139
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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
2021
2020
121
48
317
9
22
58
113
688
135
8
(0)
12
39
61
134
389
Foreign exchange losses from operating activities
in 2021 and 2020 were mainly impacted by USD for-
eign exchange rate development.
Losses on disposals of businesses, subsidiaries,
tangible and intangible assets included a loss from
the sale of Haramidere Depoculuk Anonim Şirketi of
EUR 26 mn stemming from the reclassification of FX
losses from other comprehensive income to the income
statement.
Losses from fair value changes of financial assets
included EUR 256 mn losses related to the asset from
reserves redetermination rights with respect to the ac-
quisition of interests in the Yuzhno Russkoye field,
which were triggered by reserves reassessment and
partly offset by positive discounting effects. In addition,
losses from the fair value changes of financial assets
included EUR 61 mn losses from the reassessment of
contingent consideration from the divestment of the
30% stake in Rosebank and from the divestment of
OMV (U.K.) Limited resulting from a delay of expected
date of final investment decision. In 2020, the Group
recognized a gain from the fair value changes of finan-
cial assets of EUR 28 mn (Note 6 – Other operating in-
come and net income from equity-accounted invest-
ments). For further details please refer to Note 18 – Fi-
nancial assets.
Net impairment losses on financial assets meas-
ured at amortized cost were mainly related to impair-
ments of receivables in Tunisia amounting to
EUR 9 mn (2020: EUR 9 mn).
Residual other operating expenses contained ex-
penses relating to various digitalization initiatives
amounting to EUR 45 mn (2020: EUR 36 mn) as well
as storage expenses related to Erdöl-Lagergesellschaft
m.b.H. in amount of EUR 51 mn (2020: EUR 56 mn).
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
2021
1,273
28
62
22
267
302
1,953
2020
944
9
33
39
128
155
1,308
Higher net expenses for personnel reduction schemes
in 2020 were mainly related to restructuring expenses
from outsourcing activities in Romania.
Additional details on defined benefit plans are included
in Note 23 – Provisions.
140
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
11 Net financial result
Interest income
In EUR mn
Cash & cash equivalents
Discounted receivables
Other financial and non-financial assets
Loans
Other
Interest income
2021
2020
27
5
9
120
(0)
161
38
17
30
88
3
177
Interest income from other financial and non-finan-
cial assets in 2020 primarily contained late payment
interest income in relation to successful arbitration in
Romania and positive effects of discounting of receiva-
bles from the Romanian State.
Interest income from loans included EUR 92 mn
(2020: EUR 84 mn) related to the Nord Stream 2 fi-
nancing agreement and EUR 27 mn (2020: EUR 4 mn)
related to loan agreement towards Bayport Polymers
LLC. For further details see Note 18 – Financial assets.
Interest expenses
In EUR mn
Bonds
Lease liabilities
Other financial and 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
Provisions for onerous contracts
Other
Interest expenses, gross
Capitalized borrowing costs
Interest expenses
2021
142
26
26
114
2
12
17
8
348
2020
136
24
20
74
2
11
15
5
287
(14)
334
(7)
280
For further details on bonds see Note 24 – Liabilities.
For OMV Petrom SA the unwinding expenses for de-
commissioning provision are included net of the un-
winding income for related Romanian State receiva-
bles. For further details see Note 18 – Financial assets.
Interest expenses on provisions for decommission-
ing and restoration obligations in 2021 were im-
pacted by the negative reassessment effects of receiv-
ables from the Romanian State amounting to
EUR 41 mn (2020: nil).
The interest expenses on pension provisions were
netted against interest income on pension plan assets
which amounted to EUR 5 mn (2020: EUR 5 mn).
Provisions for onerous contracts included the un-
winding expenses for the Gate LNG obligation and as-
sociated transportation commitments of OMV Gas Mar-
keting & Trading GmbH. For further details see Note 23
– Provisions.
Capitalized borrowings costs applied to the carrying
value of qualifying assets were mainly related to pro-
pane dehydrogenation plant under construction at the
Borealis production site in Kallo, Belgium and oil and
gas development assets in Norway.
141
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Other financial income and expense
In EUR mn
Carrying amount of sold trade receivables
Proceeds on sold trade receivables
Financing charges for factoring and securitization
Net foreign exchange gains/(losses)
Other
Other financial income and expense
2021
(9,348)
9,315
(33)
9
(17)
(40)
2020
(5,212)
5,189
(24)
(53)
(14)
(91)
In 2020 net foreign exchange losses were predomi-
nantly impacted by RUB.
The position Other was mainly related to bank charges.
12 Taxes on income and profit
Taxes on income and profit
In EUR mn
Profit before tax
Current taxes
thereof related to previous years
Deferred taxes
Taxes on income and profit
Changes in deferred taxes1
In EUR mn
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 changes2
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
1 Deferred tax balances also include deferred taxes balances reclassified to held for sale.
2 2020 included the effect related to acquisition of additional shares in Borealis AG which amounted to EUR 510 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
142
2021
4,870
2,056
6
10
2,066
2021
(57)
(87)
(30)
42
(22)
(10)
3
88
(40)
(61)
2020
875
244
2
(846)
(603)
2020
(445)
(57)
388
17
441
846
12
320
59
456
2021
2020
42
(8)
33
(8)
(0)
(8)
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
OMV Aktiengesellschaft forms a tax group in accord-
ance 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 gen-
eral exempt from taxation in Austria. Dividends from
EU- and EEA-participations as well as from subsidiar-
ies whose residence state has a comprehensive mutual
administrative assistance agreement 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.
Change in valuation allowance of deferred taxes for the
Austrian tax group was reported in the income state-
ment, except to the extent that the deferred tax assets
arose from transactions or events which were recog-
nized outside profit or loss, i.e. in other comprehensive
income or directly in equity.
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 corporate 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 impairments 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 impairments 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
2021
25.0
26.1
3.7
(10.4)
(0.1)
0.1
0.7
(1.8)
0.7
(1.4)
42.4
2020
25.0
(8.3)
22.6
(55.7)
(1.3)
0.1
(14.1)
(36.5)
(6.2)
5.5
(68.8)
2021
1,218
2020
219
1,270
178
(508)
(3)
5
32
(88)
32
(71)
2,066
(73)
198
(487)
(12)
1
(123)
(320)
(55)
49
(603)
Differing foreign tax rates effects in 2021 mostly re-
lated to subsidiaries operating in tax jurisdictions with
high corporate income tax rates (Norway, Libya and
United Arab Emirates). Increase in the effects related to
differing foreign tax rates as compared to 2020 was
mostly due to significant increase in profit before tax of
those subsidiaries.
143
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Non-deductible expenses contained mainly losses
from fair value changes of financial assets and perma-
nent effects from depreciation, depletion and amortiza-
tion.
the previously held 36% interest in Borealis AG, posi-
tive result contribution from equity-accounted invest-
ments as well as tax incentives in Norway.
Non-taxable income in 2021 mainly related to non-tax-
ble gains on the sale of Wisting field, positive result
contribution from equity-accounted investments and tax
incentives in Norway. 2020 was predominantly im-
pacted by revaluation and recycling effects related to
Change in valuation allowance for deferred taxes
was predominately impacted by release of valuation al-
lowances on deferred tax assets in Austria and Ger-
many. For further details see Note 25 – Deferred
Taxes.
13 Earnings Per Share
Earnings Per Share (EPS)
In EUR mn
Earnings
attributable
to stockholders
of the
parent
in EUR mn
2021
Weighted
average
number of
shares out-
standing
Basic
Diluted
2,093
2,093
326,854,031
327,272,727
Earnings
attributable
to stockholders
of the
parent
in EUR mn
2020
Weighted
average
number of
shares out-
standing
1,258
1,258
326,830,270
326,989,851
EPS in EUR
6.40
6.40
EPS in EUR
3.85
3.85
The calculation of diluted Earnings per Share took into
account the weighted average number of ordinary
shares in issue following the conversion of all poten-
tially diluting ordinary shares. This included
421,342 (2020: 159,581) contingently issuable bonus
shares related to Long Term Incentive Plans and the
Equity Deferral.
144
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Notes to the Statement of Financial Position
14 Intangible assets
Intangible assets
In EUR mn
Development of costs
January 1
Currency translation differences
Additions
Transfers
Assets held for sale
Disposals
December 31
Development of amortization
January 1
Currency translation differences
Amortization
Impairments
Transfers
Assets held for sale
Disposals
December 31
Carrying amount January 1
Carrying amount December 31
Development of costs
January 1
Currency translation differences
Changes in consolidated Group
Additions
Transfers
Assets held for sale
Disposals
December 31
Development of amortization
January 1
Currency translation differences
Amortization
Impairments
Transfers
Assets held for sale
Disposals
Write-ups
December 31
Carrying amount January 1
Carrying amount December 31
Concessions,
software, licenses,
rights
Oil and gas assets
with unproved
reserves
Goodwill
Total
2,509
53
122
23
(23)
(22)
2,663
857
11
191
13
4
(22)
(22)
1,032
1,652
1,631
1,936
(266)
887
68
3
(91)
(29)
2,509
895
(61)
113
1
(0)
(54)
(29)
(9)
857
1,041
1,652
2021
2,195
58
134
(336)
(74)
(101)
1,876
934
33
0
184
(147)
—
(95)
909
1,260
967
2020
2,860
(106)
—
117
(514)
—
(162)
2,195
360
(29)
—
768
(5)
—
(160)
(0)
934
2,500
1,260
531
31
—
—
—
—
562
—
—
—
—
—
—
—
—
531
562
622
(53)
—
—
—
(38)
—
531
—
—
—
—
—
—
—
—
—
622
531
5,235
142
257
(313)
(96)
(123)
5,101
1,792
44
191
196
(143)
(22)
(117)
1,940
3,443
3,161
5,418
(425)
887
185
(511)
(129)
(191)
5,235
1,255
(90)
113
769
(5)
(54)
(189)
(9)
1,792
4,163
3,443
145
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Additions to intangible assets in 2021 included
EUR 33 mn additions for internally generated assets
mainly related to capitalized development costs.
in the Norwegian oil field Wisting, which was sold in
Q4/21. For details see Note 20 – Assets and liabilities
held for sale and Note 26 – Statement of cash flows.
The transfers were mainly referring to the shift of the in-
tangible assets related to Maui in New Zealand to tan-
gible assets as the status of proved reserves was
achieved.
Further details on impairments and write-ups can be
found in Note 7 – Depreciation, amortization, impair-
ments and write-ups.
Intangible assets with a total carrying amount of
EUR 74 mn (2020: EUR 75 mn) were transferred to as-
sets held for sale, mainly related to OMV’s 25% stake
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 Exploration & Production
Refining West
Retail Slovakia
Refining Austria
Goodwill allocated to Refining & Marketing
Goodwill
2021
2020
322
198
520
9
7
26
42
562
297
183
480
18
7
26
52
531
In 2021, the goodwill allocated to Exploration & Produc-
tion increased due to favorable currency translation dif-
ferences.
to SapuraOMV an after-tax discount rate of 8.0%
(2020: 7.88%) was used.
In the Refining & Marketing Segment, the goodwill allo-
cated to Refining West decreased due to unfavorable
currency translation differences.
Goodwill impairment tests based on a value in use cal-
culation have been performed and did not lead to any
impairments. For the impairment test of the goodwill al-
located to Middle East and Africa, an after-tax discount
rate of 9.44% (2020: 9.23%) and for goodwill allocated
An after-tax discount rate of 12.73% related to the
goodwill allocated to Middle East and Africa and an af-
ter-tax discount rate of 9.19% related to SapuraOMV
goodwill would lead to zero headroom. For details re-
garding changes in price assumptions and the impact
on Goodwill refer to Note 2 – Accounting policies,
judgements and estimates.
For details on contractual obligations for the acquisition
of intangible assets refer to Note 15 – Property, plant
and equipment.
146
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
15 Property, plant and equipment
Property, plant and equipment including right-of-use assets
In EUR mn
Oil and
gas assets
with proved
reserves
Land and
buildings
Other
fixtures,
fittings
and
equipment
Assets
under
construction
Plant and
machinery
2021
3,584
23,445
11,483
1,967
1,081
(2)
85
660
1,047
(50)
172
30
320
(493)
(208)
(335)
334
(1)
(107)
25,042
11,254
13,695
364
1,255
93
148
0
(105)
15,451
9,750
9,591
5,640
(20)
674
41
(3)
(49)
(200)
6,085
5,843
5,169
2
39
(282)
(28)
3,398
1,669
0
145
0
(2)
(96)
(17)
1,698
1,915
1,700
(5)
69
—
91
(51)
(84)
1,989
1,346
(3)
143
1
4
(28)
(80)
1,383
622
606
(1)
994
—
(468)
(91)
(4)
1,511
7
0
—
1
—
(0)
(0)
8
1,073
1,503
Development of costs
January 1
Currency translation differences
Additions
New obligations and change in esti-
mates for decommissioning
Transfers
Assets held for sale
Disposals
December 31
Development of depreciation
January 1
Currency translation differences
Depreciation
Impairments
Transfers
Assets held for sale
Disposals
December 31
Carrying amount January 1
Carrying amount December 31
Total
41,560
603
2,367
(303)
316
(919)
(430)
43,195
22,358
342
2,218
137
147
(173)
(402)
24,626
19,203
18,569
147
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Property, plant and equipment including right-of-use assets
In EUR mn
Oil and
gas assets
with proved
reserves
Land and
buildings
Other
fixtures,
fittings
and
equipment
Assets
under
construction
Plant and
machinery
2020
3,520
23,974
8,987
2,120
(33)
396
96
11
40
(430)
(15)
(1,032)
—
965
101
512
(901)
(175)
(21)
3,025
263
29
175
(920)
(55)
(15)
85
108
—
27
(300)
(58)
415
(3)
624
320
—
(242)
(33)
(0)
3,584
23,445
11,483
1,967
1,081
1,714
13,433
5,875
1,504
(17)
142
4
(0)
(163)
(9)
(1)
1,669
1,806
1,915
(525)
1,182
658
8
(768)
(173)
(119)
13,695
10,541
9,750
(28)
406
17
(0)
(480)
(51)
(98)
5,640
3,111
5,843
(10)
129
1
0
(221)
(56)
(0)
1,346
616
622
11
(0)
—
0
(3)
(1)
0
—
7
404
1,073
Total
39,017
(1,104)
4,129
1,753
141
511
(2,584)
(303)
41,560
22,538
(581)
1,858
679
5
(1,633)
(289)
(219)
22,358
16,479
19,203
Development of costs
January 1
Currency translation differences
Changes in consolidated Group
Additions
New obligations and change in esti-
mates for decommissioning
Transfers
Assets held for sale
Disposals
December 31
Development of depreciation
January 1
Currency translation differences
Depreciation
Impairments
Transfers
Assets held for sale
Disposals
Write-ups
December 31
Carrying amount January 1
Carrying amount December 31
The transfers were mainly referring to the shift of the in-
tangible assets related to Maui in New Zealand to tan-
gible assets, as the status of proved reserves was
achieved.
planned sale of Borealis’s nitrogen business and the re-
tail business in Slovenia. For more details please see
Note 20 – Assets and liabilities held for sale.
Property, plant and equipment with a total carrying
amount of EUR 745 mn (2020: EUR 950 mn) were
transferred to assets held for sale, mainly related to the
Further details on impairments and write-ups can be
found in Note 7 – Depreciation, amortization, impair-
ments and write-ups.
Contractual obligations for acquisitions
In EUR mn
Intangible assets
Property, plant and equipment
Contractual obligations
2021
326
1,149
1,474
2020
327
1,202
1,529
148
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
In 2021 the contractual commitments for acquisitions of
fixed assets were mainly related to activities in Explora-
tion & Production and Chemicals & Materials. The de-
crease of contractual obligations in 2021 was mainly re-
lated to commitments in Norway and the project PDH
Kallo in Borealis.
OMV as a lessee
Right-of-use assets included mainly leases of filling sta-
tion sites and buildings, other land, vessels and office
buildings. In addition, OMV leases mainly a hydrogen
plant at Petrobrazi refinery in Romania, technical equip-
ment and vehicles.
Right-of-use assets with a total carrying amount of
EUR 53 mn were transferred to assets held for sale,
mainly related to planned sale of the retail business in
Slovenia as well as the nitrogen business in Borealis
and are represented in the line other movements.
Leases not yet commenced in 2021 but committed
amounted to EUR 26 mn.
Right-of-use assets recognized under IFRS 16
In EUR mn
January 1
Additions
Depreciation
Other movements
December 31
January 1
Changes in consolidated Group
Additions
Depreciation
Other movements
December 31
Amounts recognized in the consolidated income statement
In EUR mn
Reported in operating result
Short-term lease expenses
thereof capitalized short-term lease expenses
Reported in net financial result
Interest expense from lease liabilities
For information on lease liabilities see Note 24 – Liabili-
ties.
Land and
buildings
Plant and
machinery
Other
fixtures,
fittings
and
equipment
593
72
(67)
(43)
555
667
75
62
(66)
(145)
593
2021
48
18
(17)
(7)
42
2020
37
19
12
(14)
(6)
48
194
57
(62)
(15)
174
111
76
57
(46)
(3)
194
Total
836
147
(146)
(66)
771
815
170
131
(126)
(155)
836
2021
2020
35
11
30
16
26
24
149
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
16 Equity-accounted investments
Material associates and joint ventures
Abu Dhabi Polymers Company Limited (Borouge),
registered in Abu Dhabi, is a leading provider of innova-
tive, value-creating plastic solutions for energy, infra-
structure, automotive, healthcare and agriculture indus-
tries as well as advanced packaging applications. As
OMV, with its 40% interest (2020: 40%) does not have
joint control over Abu Dhabi Polymers Company Lim-
ited (Borouge), the company is accounted for as an as-
sociated company.
Bayport Polymers LLC, registered in Pasadena (in-
corporated in Wilmington), is currently building a poly-
ethylene facility as well as an ethane steam cracker
with the objective of supplying the abundantly available
and competitively priced ethane in the United States to
its polyethylene units. As OMV has joint control over
Bayport Polymers LLC (50/50 share split), it accounts
the company as joint venture.
OMV also holds a 15% (2020: 15%) interest in Abu
Dhabi Oil Refining Company, registered in Abu
Dhabi, which runs a refinery hub with integrated petro-
chemicals. According to the contractual agreement be-
tween the shareholders, OMV has strong participation
rights which represent significant influence as per
IAS 28 definition. In 2021 the deterioration in the mar-
gin outlook led to a change in price assumptions and
triggered impairment testing in the ADNOC Refining
and Trading CGU. This led to an impairment of
EUR 669 mn. For further details please refer to Note 7
– Depreciation, amortization, impairments and write-
ups.
The above mentioned companies are not listed on pub-
lic exchanges thus quoted market prices do not exist.
The tables below contain summarized financial infor-
mation for the material associates and joint ventures.
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 distributed
2021
Associates
Abu Dhabi
Polymers
Company
Limited
(Borouge)
Joint
Venture
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
4,630
1,139
1
1,140
456
1,876
588
73
—
73
36
21
11,361
(1,296)
—
(1,296)
(194)
—
2020
Associates
Abu Dhabi
Polymers
Company
Limited
(Borouge)1
715
64
(9)
55
Joint
Venture
Bayport
Polymers
LLC1
75
14
—
14
22
—
7
21
Abu Dhabi
Oil Refining
Company
21,760
(233)
—
(233)
(35)
—
1 In 2020 income statement and other comprehensive income for Abu Dhabi Polymers Company Limited (Borouge) and Bayport Polymers LLC represent amounts
since inclusion in OMV Group on October 29, 2020.
150
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Statement of financial position
In EUR mn
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Equity
Group’s share
Goodwill
OMV Group adjustments
Carrying amount of investment
Carrying amount reconciliation
In EUR mn
2021
Associates
Abu Dhabi
Polymers
Company
Limited
(Borouge)
Joint
Venture
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
6,696
1,826
3,603
558
4,361
1,744
1,917
400
4,061
3,379
163
1,913
206
1,423
711
—
(23)
688
17,207
4,137
4,943
3,311
13,089
1,963
64
(280)
1,747
2020
Associates
Abu Dhabi
Polymers
Company
Limited
(Borouge)
Joint
Venture
Bayport
Polymers
LLC
6,422
1,515
335
461
7,142
2,857
1,770
436
5,062
2,543
332
1,515
76
1,284
642
—
(22)
620
Abu Dhabi
Oil Refining
Company
17,905
2,979
6,100
1,093
13,691
2,054
—
(873)
1,181
2021
Associates
Abu Dhabi
Polymers
Company
Limited
(Borouge)
Joint
Ventures
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
2020
Associates
Abu Dhabi
Polymers
Company
Limited
(Borouge)
Joint
Ventures
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
January 1
Changes in the consolidated group
Additions and other changes
Currency translation differences
Net income
Other comprehensive income
Dividends
Impairment
December 31
1,747
—
—
138
(35)
—
—
(669)
1,181
5,062
—
—
419
456
0
(1,876)
—
4,061
620
—
—
53
36
—
(21)
—
688
2,109
—
—
(168)
(194)
—
—
—
1,747
—
5,290
—
(250)
26
(3)
—
—
5,062
—
515
143
(24)
7
—
(21)
—
620
Individually immaterial associates and joint ven-
tures
OMV holds 55.6% (2020: 55.6%) of Erdöl-Lagerge-
sellschaft m.b.H (ELG), registered in Lannach, 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 as-
sembly, OMV does not have control over ELG. The sig-
nificant 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 exercises joint control over Abu Dhabi Petro-
leum Investments LLC (ADPINV, OMV’s interest 25%,
2020: 25%), registered in Abu Dhabi, and Pak-Arab
Refinery Limited (PARCO; indirect interest of OMV
amounts to 10%, 2020: 10%), registered in Karachi,
and accounts both investments at-equity. ADPINV is a
holding company for its 40% interest in PARCO. As
unanimous consent of the parties is required for deci-
sions about relevant activities and OMV has rights to
the net assets based on the legal structure, OMV clas-
sified the companies as joint ventures according to
IFRS 11.
151
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Furthermore, OMV has a 10% interest (2020: 10%) in
Pearl Petroleum Company Limited, registered in
Road Town, British Virgin Islands, which is involved in
exploration and production of hydrocarbons in the Kur-
distan Region of Iraq. According to the contractual
agreement between OMV and Pearl Petroleum Com-
pany 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%.
OMV also holds 50% share (2020: 50%) in Borouge
Pte.Ltd., based in Singapore, which is responsible for
marketing and sales of the products produced by Abu
Dhabi Polymers Company Limited (Borouge). Even
though OMV holds a 50% interest in Borouge Pte. Ltd.,
OMV has no joint control and thus accounts for it as an
associated company.
In June 2021, OMV subscribed through Borealis Group
to a new share issue, thus acquiring 10% in Renasci
N.V., a company incorporated in Belgium. Renasci N.V.
is principally engaged in the development of the propri-
etary processes and know how about various technolo-
gies regarding waste treatment and recycling. Through
the shareholder agreement, Borealis is guaranteed two
seats on the board of Renasci N.V. and participates in
major significant financial and operating decisions. The
Group has therefore determined that it has significant
influence over this entity, even though it only holds 10%
of the voting rights. Therefore, the investment is ac-
counted for as an associated company.
As per September 30, 2021, OMV finalized the sale of
its 40% share in SMATRICS GmbH & Co KG (based
in Vienna) and its 40% share in E-Mobility Provider
Austria GmbH (based in Vienna) to VERBUND AG.
For further details, please refer to Note 38 – Direct and
indirect investments of OMV Aktiengesellschaft.
Statement of comprehensive income for individually immaterial associates and joint ventures – Group’s share
In EUR mn
Sales revenue
Net income for the year
Other comprehensive income
Total comprehensive income
2021
2020
Associates Joint ventures
Associates
Joint ventures
8,557
129
1
130
273
14
—
14
1,177
28
(2)
25
136
0
—
0
Carrying amount reconciliation for individually immaterial associates and joint ventures
In EUR mn
2021
2020
Associates1 Joint ventures
91
802
59
25
—
129
1
(55)
(92)
868
(2)
(15)
—
14
—
—
—
89
Associates1
553
(69)
322
13
28
(2)
(1)
(42)
802
Joint ventures
150
(9)
7
—
0
—
(54)
(5)
91
January 1
Currency translation differences
Changes in consolidated Group
Additions and other changes
Net income
Other comprehensive income
Disposals and other changes
Dividends distributed
December 31
1 Includes associated companies accounted at-cost
152
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
17 Inventories
Inventories
In EUR mn
Crude oil
Natural gas
Other raw materials
Work in progress
Finished petroleum products
Other finished products1
Inventories
2021
673
204
537
146
645
945
3,150
2020
427
122
466
74
540
723
2,352
1 The balance of other finished products is mainly attributable to the finished products of Borealis Group, i.e. polyolefins and base chemicals.
Purchases (net of inventory variation)
In EUR mn
Costs of goods and materials
Inventory changes1
Write-downs to net realizable value and write-offs of inventories
Reversal of inventories write-downs
Purchases (net of inventory variation)
1 Mainly related to the petrochemical products
The reversal of inventories write-downs in 2020 were
related to the gas business resulting from increased
prices.
2021
16,610
3,615
41
(9)
20,257
2020
8,992
540
134
(68)
9,598
153
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
18 Financial assets
Financial assets1
In EUR mn
Valued at fair
value
through profit
or loss
Valued at
fair value
through other
comprehen-
sive income
Valued at
amortized
cost
Total
carrying
amount
thereof
short-term
thereof
long-term
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
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
258
—
258
1
30
—
—
4,220
—
432
4,683
4,941
71
—
71
1
35
—
—
2,502
—
744
3,283
3,353
—
—
—
16
—
—
398
—
—
—
415
415
—
—
—
14
—
—
71
—
—
—
84
84
2021
3,671
589
4,260
—
—
63
—
—
2,015
1,703
3,781
8,041
2020
1,806
1,440
3,245
—
—
64
—
—
1,720
1,313
3,097
6,343
3,929
589
4,518
17
30
63
398
4,220
2,015
2,135
8,879
13,397
1,876
1,440
3,316
15
35
64
71
2,502
1,720
2,058
6,464
9,780
3,929
589
4,518
—
—
24
312
3,425
115
1,272
5,148
9,667
1,876
1,440
3,316
—
—
0
63
2,105
85
765
3,018
6,334
—
—
—
17
30
40
87
795
1,900
862
3,730
3,730
—
—
—
15
35
63
8
397
1,636
1,293
3,447
3,447
1 Excluding financial assets that were reclassified to assets held for sale, which are described in Note 20 – Assets and liabilities held for sale.
The carrying amount of financial assets at fair value
through profit or loss as at December 31, 2021 was
EUR 4,941 mn (2020: EUR 3,353 mn). These mainly
consisted of financial assets held for trading.
Moreover, it included an acquired contractual position
towards Gazprom with regard to the reserves redeter-
mination in amount of EUR 432 mn (2020:
EUR 688 mn) in connection with the acquisition of inter-
ests in the Yuzhno Russkoye field. In 2020 this position
included also financial assets amounting to EUR 57 mn
related to the contingent considerations from the divest-
ment of the 30% stake in Rosebank and from the di-
vestment of OMV (U.K.) Limited, which are dependent
on the date when the Rosebank project coventurers will
approve the final investment decision. In 2021 the fair
value of these financial assets was reduced to zero.
For details with regards to valuation of these financial
assets at fair value through profit or loss please refer to
Note 9 – Other operating expenses.
154
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
In 2021, the position loans included drawdowns and
the related accrued interests under the financing agree-
ments for the Nord Stream 2 pipeline project in amount
of EUR 987 mn (2020: EUR 953 mn). The increase
was mainly related to a higher position of accrued inter-
est. This position also included drawdowns and the re-
lated accrued interests under a member loan agree-
ment towards Bayport Polymers LLC in amount of
EUR 987 mn (2020: EUR 736 mn). The drawdowns
made during 2021 amounted to EUR 183 mn (2020:
EUR 93 mn). For further details see Note 11 – Net fi-
nancial result as well as Note 35 – Related Parties.
Other sundry financial assets included expenditure
recoverable from Romanian State amounting to
EUR 372 mn (2020: EUR 493 mn) related to obliga-
tions for decommissioning and environmental costs in
OMV Petrom SA. The receivables consisted of EUR
352 mn (2020: EUR 442 mn) for costs relating to de-
commissioning and EUR 20 mn (2020: EUR 51 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 Environ-
ment, 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 remedia-
tion works amounting to EUR 58 mn. On July 9, 2020,
the Arbitral Tribunal issued the Final Award on the arbi-
tration and requested the Romanian Ministry of Envi-
ronment to reimburse to OMV Petrom almost entirely
the amount claimed and related interest. During 2021,
the amount of EUR 58 mn representing the principal
was collected.
On October 2, 2020, OMV AG, as party in the privatiza-
tion agreement, initiated arbitration proceedings against
the Romanian Ministry of Environment in accordance
with the International Chamber of Commerce Rules, re-
garding certain claims unpaid by the Romanian Ministry
of Environment in relation to well decommissioning and
environmental remediation works amounting to
EUR 31 mn. As of December 31, 2021, the arbitration
procedure is ongoing.
Additionally, other sundry financial assets contained re-
ceivables towards partners in the Exploration & Produc-
tion business as well as seller participation notes in
Carnuntum DAC (see Note 36 – Unconsolidated struc-
tured entities – for further details).
Equity investments measured at FVOCI
In EUR mn
Investment
Fair value
2021
Fair value
adjustment
through
OCI
Dividend
recognized
as income
Fair value
2020
Fair value
adjustment
through
OCI
Dividend
recognized
as income
APK-Pensionskasse Aktiengesellschaft
BSP Bratislava-Schwechat Pipeline GmbH
Wiener Börse AG
FSH Flughafen-Schwechat-Hydranten-Gesell-
schaft GmbH & Co OG
WAV Wärme Austria VertriebsgmbH
Bockatech Limited
Oil Insurance Limited
Other
Equity investments measured at FVOCI
2
—
4
2
2
3
—
2
16
(0)
—
(0)
—
—
—
—
—
(1)
0
—
1
—
0
—
4
4
9
3
—
5
2
2
—
0
2
14
0
(3)
0
—
—
—
—
0
(2)
—
—
0
0
0
—
2
0
3
155
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Probability of default
Risk Class 1
Risk Class 2
Risk Class 3
Risk Class 4
Risk Class 5
Equivalent to external credit rating
Probability of default
AAA, AA+, AA
AA-, A+, A, A-
BBB+, BBB, BBB-
BB+, BB, BB-
B+, B, B-, CCC/C
SD/D
2021
2020
0.07%
0.24%
1.21%
10.37%
100.00%
0.07%
0.25%
1.19%
10.26%
100.00%
2021
61
2020
62
(2)
(6)
(0)
(1)
51
(2)
4
(2)
(1)
61
2021
1,653
1,133
944
538
43
4,311
(51)
4,260
2020
999
981
1,031
238
57
3,306
(61)
3,245
For further details on the credit risk management see
Note 28 – Risk Management.
Impairment of trade receivables
In EUR mn
January 1
Amounts written off
Net remeasurement of expected credit losses
Currency translation differences
Reclassification to assets held for sale
December 31
Net remeasurement of expected credit losses was
mainly related to the trade receivables from contracts
with customers.
Credit quality of trade receivables
In EUR mn
Risk Class 1
Risk Class 2
Risk Class 3
Risk Class 4
Risk Class 5
Total gross carrying amount
Expected credit loss
Total
156
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Impairment of other financial assets at amortized cost
In EUR mn
12-month ECL
Lifetime ECL not
credit impaired
Lifetime ECL cre-
dit impaired
Total
January 1
Amounts written off
Net remeasurement of expected credit losses
Currency translation differences
Reclassification to assets held for sale
December 311
January 1
Net remeasurement of expected credit losses
Currency translation differences
Reclassification to assets held for sale
December 311
7
(0)
2
0
—
9
5
2
(0)
—
7
2021
73
—
0
6
—
79
2020
80
(0)
(7)
—
73
155
(2)
13
(1)
(2)
162
154
11
(3)
(3)
155
235
(2)
15
5
(2)
251
238
13
(10)
(3)
235
1 “12-month ECL” included an amount of EUR 1 mn (2020: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 10 mn (2020: EUR 9 mn) related to
expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
Credit Quality other financial assets at amortized cost
In EUR mn
Lifetime
ECL not
credit im-
paired
Lifetime
ECL credit
impaired
12-month
ECL
12-month
ECL
Total
Lifetime
ECL not
credit im-
paired
Lifetime
ECL credit
impaired
Risk Class 1
Risk Class 21
Risk Class 3
Risk Class 4
Risk Class 5
Total gross carrying
amount
Expected credit loss2
Total
2,069
1,464
209
14
0
3,756
(9)
3,747
2021
113
—
—
—
—
19
10
2
22
111
2,202
1,473
210
36
111
113
(79)
34
162
(162)
—
4,032
(251)
3,781
1,252
1,554
217
0
0
3,022
(7)
3,016
2020
154
—
—
—
—
9
9
4
22
111
154
(73)
81
155
(155)
(0)
Total
1,415
1,563
221
22
111
3,332
(235)
3,097
1 “12-month ECL” included an amount of EUR 373 mn (2020: EUR 494 mn) and “Lifetime ECL credit impaired” an amount of EUR 10 mn (2020: EUR 9 mn) re-
lated 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 (2020: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 10 mn (2020: EUR 9 mn) related to
expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
157
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
19 Other assets
Other assets
In EUR mn
Prepaid expenses
Advance payments on fixed assets
Other payments on account
Receivables from other taxes and social security
Contract assets
Emission rights1
Emission rights to be received from customers1
Other non-financial assets
Other assets
1 For further details refer to Note 23 – Provisions.
20 Assets and liabilities held for sale
Assets and liabilities held for sale
In EUR mn
2021
2020
Short-term
Long-term
Short-term
Long-term
60
83
107
185
8
58
99
21
621
18
14
22
39
8
—
—
12
113
57
38
91
227
—
37
72
14
537
12
—
13
39
7
—
—
30
103
OMV
retail
business
Germany
OMV
retail
business
Slovenia
Total
Exploration
& Production
Refining & Marketing
Chemicals
& Materials
Corporate
& Other
OMV
Group
27
32
—
—
58
10
1
2
1
14
73
—
—
10
247
—
44
301
24
43
0
0
67
368
0
114
85
23
—
85
10
—
10
95
52
189
40
28
67
257
2021
10
366
—
44
420
76
93
1
2
173
593
0
149
23
54
227
79
75
153
380
0
119
—
0
119
52
51
1
2
106
225
0
35
—
2
37
39
47
86
123
1
260
6
27
294
221
222
62
11
516
810
62
5
12
41
120
236
78
314
434
—
3
—
—
3
—
—
—
—
—
3
—
—
—
—
—
—
—
—
—
38
661
6
71
776
308
316
65
14
703
1,479
63
154
120
95
432
325
153
477
909
Intangible assets
Property, plant and equipment
At-equity accounted
investments
Other assets incl. deferred taxes
Non-current assets
Inventories
Trade receivables
Other assets
Cash in hand and at bank
Current assets
Total assets
Provision for pensions and
similar obligations
Lease liabilities
Provisions for decommissioning and
restoration obligations
Other liabilities incl. provisions and
deferred taxes
Non-current liabilities
Trade payables
Other liabilities incl. provisions
Current liabilities
Total liabilities
158
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Assets and liabilities held for sale
In EUR mn
Intangible assets
Property, plant and equipment
At-equity accounted investments
Other assets incl. deferred taxes
Non-current assets
Inventories
Trade receivables
Other assets
Cash in hand and at bank
Current assets
Total assets
Provision for pensions and similar obligations
Lease liabilities
Other interest bearing debts
Provisions for decommissioning and restoration obligations
Other liabilities incl. provisions and deferred taxes
Non-current liabilities
Trade payables
Provisions for decommissioning and restoration obligations
Other liabilities incl. provisions
Current liabilities
Total liabilities
Gas
Connect
Group
OMV
retail
business
Germany Other
Total
Exploration
& Production
Refining & Marketing
26
255
—
13
293
14
9
27
15
64
358
—
3
—
186
7
197
21
11
15
47
243
2020
10
231
—
4
245
19
36
0
—
56
301
0
125
—
23
—
148
52
—
22
75
223
—
10
—
—
10
—
—
—
—
—
10
—
—
—
—
—
—
—
—
—
—
—
77
870
54
17
1,018
25
53
9
0
88
1,106
59
129
147
27
13
374
76
—
42
118
492
68
629
54
13
763
6
17
9
0
32
795
58
4
147
5
13
226
24
—
19
43
269
OMV
Group
104
1,124
54
30
1,312
39
62
36
15
152
1,464
59
131
147
214
20
571
97
11
56
165
736
Exploration & Production
On May 14, 2021, OMV Petrom finalized the sale of its
100% share in Kom-Munai LLP and Tasbulat Oil corpo-
ration LLP (both based in Aktau, Kazakhstan) to Mag-
netic Oil Limited.
On August 1, 2021, SapuraOMV Upstream Sdn. Bhd.
sold its entire share in SapuraOMV Upstream (PM)
Inc., which held various producing assets located off-
shore Peninsular Malaysia, to Jadestone Energy PLC,
a Singapore-based, London-listed independent oil and
gas company.
On December 1, 2021, OMV Petrom finalized the sale
of 40 marginal onshore oil and gas fields in Romania.
The above mentioned sales transactions did not have a
significant impact on the income statement.
2021 whereas the economic effective date of transac-
tion was January 1, 2021. For further details regarding
the effects of the sale of Wisting licenses please refer
to Note 6 – Other operating income and net income
from equity accounted investments – and Note 26 –
Statement of cash flows.
As of December 31, 2021, assets held for sale and lia-
bilities associated with assets held for sale in Explora-
tion & Production entirely consisted of a 69% interest in
Maari field, located in New Zealand’s offshore Taranaki
Basin.
Refining & Marketing
On May 31, 2021, OMV closed the transaction to sell
its 51% interest in Gas Connect Austria GmbH (based
in Vienna) to VERBUND. The sales transaction did not
have a significant impact on the income statement.
During 2021 OMV (NORGE) AS decided to sell its en-
tire 25% stake in the Wisting licenses to Lundin Energy
AB. Sale transaction was closed on December 17,
During 2021, OMV Downstream GmbH decided to sell
its 40% shares in SMATRICS GmbH & Co KG and E-
Mobility Provider Austria GmbH (both based in Vienna)
159
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
to VERBUND. The sales transaction was closed on
September 30, 2021.
On December 3, 2021, OMV finalized the sale of its
100% share in Haramidere Depoculuk Anonim Şirketi
(based in Instanbul) to CAN ULUSLARALASI YATIRIM
ANONIM SIRKETI.
As of December 31, 2021, assets held for sale and lia-
bilities associated with assets held for sale in Refining
& Marketing related to OMV retail businesses in Ger-
many and Slovenia.
On December 14, 2020, OMV and EG Group reached
an agreement for EG Group to acquire the OMV retail
business (285 filling stations) in Germany. The transac-
tion is subject to required regulatory approvals and
closing is expected in 2022.
During 2021 OMV decided to sell its retail business in
Slovenia (120 filling stations) which led to the reclassifi-
cation to assets and liabilities to held for sale. This re-
classification did not lead to an impairment loss. On
June 8, 2021 OMV and MOL Group reached an agree-
ment for MOL Group to acquire OMV Slovenia. The
transaction is subject to required regulatory approvals
and closing is expected in 2022.
Chemicals & Materials
As of December 31, 2021, assets held for sale and lia-
bilities associated with assets held for sale in Chemi-
cals & Materials related entirely to the nitrogen busi-
ness unit of Borealis Group.
During 2021 OMV decided to sell the nitrogen business
unit in Borealis Group (75% held by OMV) including fer-
tilizer, technical nitrogen and melamine products. This
led to the reclassification of the disposal group to as-
sets and liabilities held for sale without having an im-
pact on the income statement at that time. The Borealis
Group’s share in fertilizer production sites in the Neth-
erlands and Belgium (“Rosier”) is presently not being
considered within the potential sales process. Closing
of the sales transaction is expected in 2022.
OMV determines the net position of emission certifi-
cates for the Group. As of December 31, 2021 an obli-
gation to surrender 2,277,248 emission certificates
(market value: EUR 172 mn) related to the nitrogen
business unit was not included in the balance sheet line
“Liabilities associated with assets held for sale”, due to
the net presentation policy.
The result of the measurement at fair value less cost of
disposal of the nitrogen business as of December 31,
2021 has led to an impairment which is described in
more details in the Note 7 – Depreciation, amortization,
impairments and write-ups.
160
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
21 Equity of stockholders of the parent
Capital stock
The capital stock of OMV Aktiengesellschaft consists
of 327,272,727 (2020: 327,272,727) fully paid no par
value shares with a total nominal value of
EUR 327,272,727 (2020: EUR 327,272,727). There are
no different classes of shares and no shares with spe-
cial rights of control. All shares are entitled to dividends
for the financial year 2021, with the exception of treas-
ury shares held by OMV Aktiengesellschaft.
As the authorized capital granted by the Annual Gen-
eral Meeting on May 14, 2014 expired on May 14,
2019, the Annual General Meeting decided upon a new
authorized capital on September 29, 2020. Specifically,
it authorized the Executive Board until September 29,
2025 to increase the share capital of OMV with the con-
sent 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 Sec-
tion 153 Paragraph 6 Austrian Stock Corporation 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 Ex-
ecutive Board, subject to the approval of the Supervi-
sory Board, to exclude the subscription right of the
shareholders if the capital increase serves to (i) adjust
fractional amounts or (ii) satisfy stock transfer pro-
grams, in particular long term incentive plans, equity
deferrals or other participation programs 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 result-
ing from the issuance of shares according to the au-
thorized capital.
Capital reserves
Capital reserves have been formed by the contribution
of funds into OMV Aktiengesellschaft by its sharehold-
ers 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 2,483 mn consists of perpetual, subordinated
hybrid notes. 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 principal amount of EUR 1,500 mn, in two
tranches of EUR 750 mn:
▸ The hybrid notes of tranche 1, with the first call date
in 2021, were called and redeemed at their principal
amount (plus interest accrued) on November 30,
2021.
▸ The hybrid notes of tranche 2 bear a fixed interest
rate of 6.250% per annum until, but excluding, De-
cember 9, 2025, which is the first call date of
tranche 2. From December 9, 2025 (including),
tranche 2 will bear an interest rate per annum at the
relevant five-year swap rate for the relevant interest
period plus a specified margin and a step-up of 100
basis points.
Interest is due and payable annually in arrears on De-
cember 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 Annual General Meeting of OMV re-
solves upon a dividend payment on OMV shares.
On June 19, 2018 OMV issued a hybrid bond with a
principal amount of EUR 500 mn. The hybrid bond
bears a fixed interest rate of 2.875% per annum until,
but excluding, June 19, 2024. From June 19, 2024 (in-
cluding), until, but excluding, June 19, 2028, the hybrid
notes will bear interest at a rate corresponding to the
relevant five-year swap rate plus a specified margin.
From June 19, 2028 (including), the notes will bear an
interest rate per annum at the relevant five-year swap
rate for the relevant interest period plus a specified
margin and a step-up of 100 basis points. Interest is
due and payable annually in arrears on June 19 of
each year, unless OMV elects to defer the relevant in-
terest payments. The outstanding deferred interest
must be paid under certain circumstances, in particular,
if the Annual General Meeting of OMV resolves upon a
dividend payment on OMV shares.
161
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
On September 1, 2020, OMV issued hybrid notes with
an aggregate principal amount of EUR 1,250 mn, in two
tranches (Tranche 1: EUR 750 mn; Tranche 2:
EUR 500 mn) with the following interest payable:
▸ The hybrid notes of tranche 1 bear a fixed interest
rate of 2.500% per annum until, but excluding Sep-
tember 1, 2026, which is the first reset date of
tranche 1. From the first reset date (including), until,
but excluding, September 1, 2030, the hybrid notes
of tranche 1 will bear interest per annum at a reset
interest rate which is determined according to the
relevant five-year swap rate plus a specified mar-
gin. From September 1, 2030 (including), the hybrid
notes of tranche 1 will bear an interest rate per an-
num at the relevant five-year swap rate for each in-
terest period thereafter plus a specified margin and
a step-up of 100 basis points.
▸ The hybrid notes of tranche 2 bear a fixed interest
rate of 2.875% per annum until, but excluding Sep-
tember 1, 2029, which is the first reset date of
tranche 2. From the first reset date (including), until,
but excluding, September 1, 2030, the hybrid notes
of tranche 2 will bear interest per annum at a reset
interest rate which is determined according to the
relevant five-year swap rate plus a specified mar-
gin. From September 1, 2030 (including), the hybrid
notes of tranche 2 will bear an interest rate per an-
num at the relevant five-year swap rate for each in-
terest period thereafter plus a specified margin and
a step-up of 100 basis points.
Interest is due and payable annually in arrears on Sep-
tember 1 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 Annual General Meeting of OMV re-
solves upon a dividend payment on OMV shares.
The hybrid notes outstanding as of December 31, 2021
do not have a scheduled maturity date and they may be
redeemed at the option of OMV under certain circum-
stances. OMV has, in particular, the right to repay the
hybrid notes at certain call dates. Any accrued unpaid
interest becomes payable when the notes are re-
deemed. In the case of a change of control, for exam-
ple, OMV may call the hybrid notes for redemption or
else the applicable interest rate will be subject to an in-
crease according to the terms and conditions of the hy-
brid notes.
Revenue reserves
The Group’s revenue reserves included the net in-
come and losses of consolidated subsidiaries and eq-
uity accounted investments, as adjusted for the pur-
poses 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 repur-
chased 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 author-
ized the Executive Board for a period of five years from
the adoption of the resolution, therefore, until (includ-
ing) May 17, 2021, upon approval of the Supervisory
Board, to dispose of or utilize stock repurchased or al-
ready held by the Company to grant treasury shares to
employees, senior employees 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 pur-
chasing possibility of shareholders (exclusion of sub-
scription 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 Aus-
trian Commercial Code) or by third parties for the ac-
count of the Company.
On June 2, 2021 the Annual General Meeting author-
ized the Executive Board for a period of five years from
the adoption of the resolution, therefore, until and in-
cluding June 1, 2026, subject to the approval of the Su-
pervisory Board, to dispose of or utilize repurchased
treasury shares or treasury shares already held by the
Company to grant to employees, executive employees
and/or members of the Executive Board/management
boards of the Company or its affiliates including for pur-
poses of share transfer programs, in particular long
term incentive plans including equity deferrals or other
stock ownership plans, and to thereby exclude the gen-
eral purchasing right of shareholders (exclusion of sub-
scription 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.
162
OMV ANNUAL REPORT 2021 / 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
Currency translation differences
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
Before-tax
(expense)
income
946
210
53
(1)
2021
Tax
(expense)
benefit1
13
(54)
11
0
Net-of-tax
(expense)
income)
Before-tax
(expense)
income
2020
Tax
(expense)
benefit1
959
155
64
(0)
(1,234)
38
4
(2)
(2)
(8)
(8)
(0)
Net-of-tax
(expense)
income
(1,236)
31
(4)
(2)
17
(3)
14
(113)
26
(88)
02
n.a.
0
(108)2
n.a.
(108)
1,225
(33)
1,192
(1,415)
8
(1,407)
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 the financial year 2021, the Executive Board of
OMV Aktiengesellschaft proposed a dividend of EUR
2.30 per eligible share, which is subject to confirmation
by the Annual General Meeting in 2022. The dividend
for 2020 was paid in June 2021 and amounted to
EUR 605 mn (EUR 1.85 per share). In 2020, dividend
payment amounted to EUR 572 mn (EUR 1.75 per
share). The interest paid for hybrid bonds in 2021
amounted to EUR 94 mn (2020: EUR 101 mn).
Treasury shares
January 1, 2020
Disposals
December 31, 2020
Disposals
December 31, 2021
Number of shares
372,613
(74,767)
297,846
(36,520)
261,326
Cost
EUR mn
4.1
(0.8)
3.3
(0.4)
2.9
163
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Number of shares in issue
January 1, 2020
Used for share-based compensations
December 31, 2020
Number of shares
Treasury shares
Shares in issue
327,272,727
—
327,272,727
372,613
(74,767)
297,846
326,900,114
74,767
326,974,881
Used for share-based compensations
December 31, 2021
—
327,272,727
(36,520)
261,326
36,520
327,011,401
22 Non-controlling interests
Subgroups with material NCI
In EUR mn
Subgroups
OMV Petrom Group
Borealis Group
SapuraOMV Group
Gas Connect Group
Other subsidiaries
OMV Group
2021
Net income
allocated to
NCI
Accumulated
NCI
294
307
(8)
20
5
617
3,364
2,876
238
—
13
6,491
% NCI
49%
25%
50%
—
n.a.
n.a.
2020
Net income
allocated to
NCI
Accumulated
NCI
131
(21)
(27)
51
3
136
3,302
2,442
229
155
32
6,159
% NCI
49%
25%
50%
49%
n.a.
n.a.
The proportion of ownership corresponds to the propor-
tion of voting rights of the non-controlling interests
(NCI) in all cases.
The main activities of the OMV Petrom Group are ex-
ploration and production of hydrocarbons (in Romania),
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).
Since October 29, 2020 Borealis Group is fully-consoli-
dated, following the acquisition of an additional 39%
stake in Borealis AG. Borealis Group is one of the
world’s leading providers of advanced and circular poly-
olefin solutions and a European market leader in base
chemicals, fertilizers, and plastics recycling. The major-
ity of Borealis’ production is located in Europe, with two
overseas manufacturing facilities in the United States,
one in Brazil and one in South Korea.
SapuraOMV group is an 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 ac-
cess to exploration blocks in New Zealand, Australia
and Mexico.
Gas Connect Group operates a natural gas high-pres-
sure pipeline grid in Austria, markets transportation ca-
pacity to meet domestic natural gas demand and sup-
ports export to Europe and acts as distribution or mar-
ket area manager throughout the Federal territory of
Austria. In 2020, the Gas Connect Group has been re-
classified to assets and liabilities held for sale. On May
31, 2021, OMV closed the transaction to sell its 51% in-
terest in Gas Connect Austria GmbH (based in Vienna)
to VERBUND (see Note 3 – Changes in group struc-
ture).
164
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
The following tables summarize the financial infor-
mation of the subgroups with material non-controlling
interests:
Statement of comprehensive income1
In EUR mn
Sales revenue
Net income for the year
Total comprehensive income
Attributable to NCI
Dividends paid to NCI
2021
2020
OMV Petrom
Group
Borealis Group
OMV Petrom
Group
Borealis group2
5,285
582
596
292
172
9,862
1,256
1,882
463
38
4,075
267
258
126
175
1,106
(79)
(320)
(81)
0
1 Figures refer to subgroup level, i. e. including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.
2 Figures reflect amounts from acquisition date on October 29, 2020 until reporting date.
Statement of financial position as of December 311
In EUR mn
Non-current assets
Current assets
Assets held for sale
Non-current liabilities
Current liabilities
Liabilities associated with assets held for sale
2021
2020
OMV Petrom
Group
Borealis Group
OMV Petrom
Group
Borealis group
6,598
3,496
3
1,528
1,655
—
10,933
4,655
810
2,553
1,892
434
7,088
2,517
177
1,817
1,087
85
11,829
2,159
—
2,527
1,719
—
1 Figures refer to subgroup level, i. e. including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.
Statement of cash flows1
In EUR mn
2021
2020
OMV Petrom
Group
Borealis Group
OMV Petrom
Group
Borealis group2
Operating cash flow
Investing cash flow
Financing cash flow
Net increase /(decrease) in cash and cash equivalents
1,422
(458)
(389)
577
2,916
(1,086)
(355)
1,475
1,148
(654)
(397)
97
280
(269)
(8)
3
1 Figures refer to subgroup level, i. e. including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.
2 Figures reflect amounts from acquisition date on October 29, 2020 until reporting date.
165
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
23 Provisions
Provisions
In EUR mn
January 1, 2021
Currency translation differences
Usage and releases
Payments to funds
Allocations
Transfers
Reclassified to liabilities associated with assets
held for sale
December 31, 2021
thereof short-term as of December 31, 2021
thereof short-term as of January 1, 2021
Pensions and
similar
obligations
1,458
Decom-
missioning and
restoration
obligations Other provisions
881
3,999
(4)
(114)
(22)
54
(12)
(62)
1,299
—
—
69
(520)
—
220
—
(12)
3,756
72
72
1
(251)
—
360
25
(13)
1,003
360
304
Total
6,337
66
(885)
(22)
634
13
(86)
6,057
432
377
Pensions and similar obligations include mainly pro-
visions for pensions, severances and anniversary bo-
nuses. More information on material IAS 19 employee
benefits is included in chapter Provisions for pensions
and similar obligations.
Decommissioning and restoration details are in-
cluded in chapter Provisions for decommissioning and
restoration obligations.
Other provisions include mainly provisions for oner-
ous contracts, provisions for shortfall of emission certifi-
cates and other personnel provisions. More information
is provided in chapter Other provisions.
Provisions for pensions and similar obligations ac-
counted for according to IAS 19
Following tables include details on funded and un-
funded pension plans (mainly Austria, Germany, Swe-
den and Belgium) as well as severance plans (mainly in
Austria) and medical plans (in Belgium).
The majority of pension commitments of several OMV
companies were transferred to a country-specific exter-
nal pension funds. Pension commitments were calcu-
lated based on country- and plan-specific assumptions.
Refer to Note 2 – Accounting policies, judgments and
estimates – for more details.
Defined benefit pension plans, obligations for severance and other plans
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 and other plans
Effect of asset ceiling
Total
2021
1,053
(595)
458
586
586
150
—
1,194
2020
2019
2018
1,102
(589)
513
619
619
197
3
1,332
840
(473)
366
499
499
141
—
1,007
729
(436)
293
463
463
135
—
891
2017
764
(453)
311
479
479
144
—
935
166
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Present value of obligations
In EUR mn
Present value of obligation as of January 1
Changes in the consolidated group
Currency translation differences
Reclassification to liabilities associated with assets
held for sale
Current service cost
Past service cost1
Interest cost
Benefits paid
Expected defined benefit obligations as per De-
cember 31
Actual defined benefit obligations as per Decem-
ber 31
Remeasurements of the period (OCI)
thereof changes in demographic assumptions
thereof changes in financial assumptions
thereof experience adjustments
1 mainly related to outsourcing activities in Romania
Market value of plan assets
In EUR mn
Market value of plan assets as of January 1
Currency differences
Changes in the consolidated group
Reclassification to held for sale
Interest income
Allocation to funds
Benefits paid
Remeasurements of the period (OCI)
Market value of plan assets as of December 31
2021
2020
Pensions
1,722
—
(2)
(27)
26
—
15
(85)
1,648
Severance &
other plans
197
—
(1)
(34)
6
(2)
2
(14)
153
Pensions
1,339
519
4
(79)
8
—
13
(72)
1,733
1,639
150
1,722
(9)
(1)
1
(9)
(3)
—
—
(3)
(11)
—
(2)
(9)
Severance &
other plans
141
78
(1)
(11)
5
(5)
2
(18)
192
197
5
—
2
3
2021
589
1
—
(10)
5
22
(52)
40
595
2020
473
0
177
(33)
5
10
(41)
(1)
589
The majority of pension commitments are attributable
to plans in Austria and Belgium and were transferred to
external pension funds managed by APK Pension-
skasse AG in Austria as well as Vivium and KBC Asset
Management in Belgium. 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 regulations, the investment guidelines of APK-
Pensionskasse AG regulate the spread of asset alloca-
tion, the use of umbrella funds and the selection of fund
managers. The investment plans in Belgium follow the
investment strategy of the respective insurance com-
pany as well as local legal regulations.
The allocation of plan assets was mainly in debt securi-
ties and insurance contracts. Except for the insurance
contracts, which are not quoted, the majority of plan as-
sets are invested in liquid active markets for which
quoted prices are available.
In 2022, defined benefit related contributions for 2021
to external pension funds of EUR 3 mn are planned.
167
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Provisions and expenses
In EUR mn
Provision as of January 1
Changes in the consolidated group
thereof effect of asset ceiling1
Currency translation differences
Reclassification to liabilities associated with assets
held for sale
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
thereof return on plan assets (excluding interest
income)
Provision as of December 31
thereof effect of asset ceiling1
Current service cost
Past service cost2
Net interest cost
Expenses of defined benefit plans for the year
2021
Pensions
1,135
—
—
(3)
(20)
36
(33)
(22)
(50)
(1)
1
(9)
(40)
1,044
—
26
—
10
36
Severance &
other plans
2020
Pensions
Severance &
other plans
197
—
—
(1)
(34)
5
(14)
—
(3)
—
(3)
—
—
150
—
6
(2)
2
5
866
345
3
5
(45)
16
(32)
(10)
(10)
—
(2)
(10)
1
1,135
3
8
—
9
16
141
78
—
(1)
(11)
2
(18)
—
5
—
2
3
—
197
—
5
(5)
2
2
1 The effect of asset ceiling from 2020 was part of the reclassification to “held for sale” in 2021.
2 Mainly related to outsourcing activities in Romania
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
2021
Pensions
1.00-2.60%
2.50-5.00%
1.70-2.25%
Severance &
other plans
0.80-5.22%
2.50-3.50%
—
2020
Pensions
0.79-2.60%
2.00-5.00%
1.25-2.00%
Severance &
other plans
0.64-3.35%
2.00-3.50%
—
The following actuarial assumptions for calculating pen-
sion expenses and expected defined benefit entitle-
ments 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 & other plans
Capital market interest rate
Future increases in salaries Future increases in pensions
+0.50%
(6.05)%
(5.49)%
(0.50)%
6.72%
6.14%
+0.25%
1.03%
2.36%
(0.25)%
(0.96)%
(2.24)%
+0.25%
2.52%
—
(0.25)%
(2.38)%
—
2021
168
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Sensitivities - absolute change
In EUR mn
2021
Capital market interest rate
Future increases in salaries
+0.50%
(0.50)%
+0.25%
(0.25)%
(101)
(9)
112
10
17
4
(16)
(4)
Pensions
Severance &
other plans
Duration profiles and average duration of defined benefit obligations as of December 31
In EUR mn
+0.25%
Future increases in pensions
(0.25)%
(40)
—
42
—
2021
Duration profiles
1–5 years
6–10 years
>10 years
391
47
395
56
853
48
Duration
in years
13
11
Pensions
Severance & other plans
Allocation of plan assets as of December 31
Asset category
Equity securities
Debt securities
Cash and money market investments
Insurance contracts
Other
Total
Provisions for decommissioning and restoration obligations
Provisions for decommissioning and restoration obligations
In EUR mn
January 1, 2021
Currency translation differences
New obligations
Increase arising from revisions in estimates
Reduction arising from revisions in estimates
Unwinding of discounting
Reclassification to liabilities associated with assets held for sale
Usage, disposals and other changes
December 31, 2021
thereof short-term as of December 31, 2021
thereof short-term as of January 1, 2021
2021
2020
18%
35%
4%
30%
12%
100%
18%
37%
7%
28%
10%
100%
Carrying
amount
3,999
69
62
76
(446)
81
(12)
(74)
3,756
72
72
The reduction arising from revisions in estimates
was mainly driven by increased real interest rates for
NOK, NZD and RON compared to 2020.
Reclassification to liabilities associated with assets
held for sale was mainly related to the disposal group
of nitrogen business unit of Borealis Group. For details
see Note 20 – Assets and liabilities held for sale.
169
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Estimation of maturities of decommissioning and restoration obligations
In EUR mn
≤1 year
1 – 5 years
5 – 10 years
10 – 20 years
20 – 30 years
30 – 40 years
>40 years
Total
2021
72
252
926
1,684
556
264
1
3,756
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 601 mn.
The provision for decommissioning and restoration
costs included obligations in respect of OMV Petrom
SA amounting to EUR 1,260 mn (2020:
EUR 1,542 mn). Part of the obligations is to be recov-
ered from the Romanian State in accordance with the
privatization agreement. As of December 31, 2021,
OMV Petrom SA held receivables from the Romanian
state related to decommissioning and restoration costs
amounting to EUR 352 mn (2020: EUR 442 mn).
Other provisions
In EUR mn
Environmental costs
Onerous contracts
Other personnel provisions
Emissions certificates
Residual other provisions
Other provisions
2021
2020
Short-term
Long-term
Short-term
Long-term
14
24
148
113
60
360
77
431
16
—
120
643
13
31
134
75
51
304
90
364
6
—
116
576
As at December 31, 2021 the provision for environ-
mental costs included EUR 46 mn referring to the pro-
vision 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 is related to
a long-term, non-cancellable contract for regasification
capacity and storage that became onerous due to the
negative development of market conditions for LNG ter-
minal capacities in Europe. The present value of the
provision as at December 31, 2021 was EUR 390 mn
(2020: EUR 327 mn). The provision represents the un-
avoidable costs of meeting the contractual obligations.
Thereby, income and costs from future purchases and
sales of LNG are taken into account, since the regasifi-
cation of LNG and subsequent sale of the gas posi-
tively 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 availa-
ble. If no forward prices are available, the prices repre-
sent management’s best estimate of future prices, de-
rived from current market prices or forward rates of the
preceding period. The calculation is based on an inter-
est rate of 4.51% (2020: 3.96%). A 50% decrease in
LNG margin would lead to an additional provision of
EUR 135 mn, a 50% decrease in LNG volumes to an
additional provision of EUR 106 mn. Furthermore, a 1
percentage point decrease in the discount rate would
lead to an additional provision of EUR 25 mn.
As per end of 2021, the provision for the related non-
cancellable transportation commitments of OMV Gas
Marketing & Trading GmbH amounted to EUR 65 mn
(2020: EUR 68 mn). The calculation is based on the dif-
ference between the fixed costs for using the capacities
170
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
and the net profit from usage expected to be generated
by using the capacities. The discount rate applied is
4.51% (2020: 3.96%). 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 provi-
sions related to personnel reduction schemes of
EUR 17 mn (2020: EUR 29 mn).The remaining amount
was mainly related to boni provisions.
Emissions certificates
Directive 2003/87/EC of the European Parliament and
of the European Council established a greenhouse gas
emissions trading scheme, requiring member states to
draw up national plans to allocate emissions certifi-
cates. Under this scheme, affected OMV Group compa-
nies are entitled to yearly allocation of free emissions
certificates.
The New Zealand Government established a green-
house gas emissions trading scheme under the Climate
Change Response Act 2002. Under this scheme New
Zealand companies are not entitled to receive free
emission certificates. OMV has purchased certificates
to meet its own use liability. Apart from purchased cer-
tificates, each sale of gas to domestic customers in
New Zealand creates an obligation for OMV. OMV re-
ceives units of emission certificates from customers to
meet this obligation.
In Germany, the fuel emissions trading act (BEHG;
Brennstoffemissionshandelsgesetz) came into force on
December 20, 2019, and is the basis for German na-
tional certificate trading scheme for emissions from fos-
sil fuels. It obliges the distributors - suppliers who de-
liver to end customers and/or who take the fuel from
the pipeline network (origin of energy tax) - of fuels to
acquire CO2 emission certificates from January 1, 2021
onwards. According to Section 38 (2) of the Energy Tax
Act, the tax debtor is the supplier; therefore, all compa-
nies in possession of an energy tax supplier's certificate
are to be considered as distributors. Unlike under Euro-
pean Trading Scheme, certificates under BEHG are not
eligible for trading and are not freely allocated, but have
to be purchased from the German Emissions Trading
Authority (DEHSt; Deutsche Emissionshandelsstelle).
In 2022 OMV expects to surrender 10,143,712 emis-
sions certificates from European Trading Scheme,
3,834,557 BEHG certificates and 2,802,025 NZ certifi-
cates for (not yet externally verified) emissions, out of
which 2,424,921 emissions certificates are expected to
be transferred to OMV from customers in New Zealand.
Emissions certificates
Certificates held as of January 1
Free allocation for the year
Certificates surrendered1
Changes in consolidated Group
Net purchases and sales during the year
Certificates received from customers
Certificates held as of December 31
1 According to verified emissions for the prior year
European
Trading
Scheme
12,210,093
5,891,495
(10,794,999)
—
4,424,111
—
11,730,700
2021
NZ
Trading
Scheme
111,798
—
(2,883,744)
—
1,150,465
1,873,155
251,674
2020
DE
Trading
Scheme
European
Trading
Scheme
—
9,331,156
NZ
Trading
Scheme
106,211
—
—
—
3,617,321
—
3,617,321
3,038,336
(6,602,598)
5,310,058
1,133,141
—
12,210,093
—
(5,635,404)
—
444,172
5,196,819
111,798
171
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
24 Liabilities
Liabilities1
In EUR mn
Bonds
Other interest-bearing debts
Lease liabilities
Trade payables
Other financial liabilities
Other liabilities
Liabilities
Short-
term
2021
Long-
term
795
350
131
4,860
4,367
1,440
7,275
1,415
887
—
587
118
11,943 10,282
Total
8,070
1,765
1,018
4,860
4,955
1,558
22,225
Short-
term
2020
Long-
term
Total
850
703
141
4,304
3,095
868
8,019
1,280
943
—
454
135
9,961 10,830
8,869
1,983
1,084
4,304
3,549
1,003
20,791
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 predominately referred
to bank loans, but also included private placements and
other funding instruments.
OMV participates in several supplier finance programs
under which its suppliers may elect to receive early
payment of their invoice from a bank by factoring their
receivable from the Group to the bank. Under the ar-
rangement, the bank agrees to pay amounts to a sup-
plier participating in the program in respect of invoices
owed by the Group and receives settlement from OMV
later. The principal purpose of those programs is to fa-
cilitate efficient payment processing and enable the
consenting suppliers to sell their receivables due from
OMV to a bank before their maturity. The Group has
not derecognized the majority of original liabilities to
which the arrangement applies because neither legal
release was obtained nor the original liability was sub-
stantially modified while entering into the arrangement.
Most liabilities remain within trade payables and other
financial liabilities until payment. From OMV’s perspec-
tive, these arrangements do not significantly extend
payment terms beyond the normal terms agreed with
other suppliers that are not participating in the pro-
grams. Consequently, cash effects are included in the
cashflow from operating activities.
172
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Bonds
Bonds issued
In EUR mn
Private Placement
International corporate
bonds
Nominal
EUR 300,000,000
Coupon
0.106% floating1
Repayment
06/11/2021
EUR 500,000,000
EUR 750,000,000
EUR 750,000,000
EUR 500,000,000
EUR 500,000,000
EUR 500,000,000
EUR 300,000,000
EUR 1,000,000,000
EUR 750,000,000
EUR 500,000,000
EUR 500,000,000
EUR 750,000,000
EUR 750,000,000
EUR 500,000,000
4.25% fixed
2.625% fixed
0.00% fixed
0.75% fixed
1.50% fixed
0.00% fixed
1.75% fixed
1.00% fixed
3.50% fixed
2.00% fixed
1.875% fixed
0.75% fixed
2.375% fixed
1.00% fixed
10/12/2021
09/27/2022
06/16/2023
12/04/2023
04/09/2024
07/03/2025
12/10/2025
12/14/2026
09/27/2027
04/09/2028
12/04/2028
06/16/2030
04/09/2032
07/03/2034
Bonds issued
1 Rate as of 31.12.2020
Bonds and other interest-bearing debts
As at December 31, 2021, OMV Group was in compli-
ance 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
2022/2021 (short-term component of long-term financing)
2023/2022
2024/2023
2025/2024
2026/2025
2027/2026 and subsequent years
Total for 2022/2021 onwards
2021
2020
Carrying
amount
December 31
Carrying
amount
December 31
—
—
754
747
499
503
497
319
994
751
505
499
748
758
496
8,070
2021
254
891
1,145
891
1,277
822
1,174
1,183
4,233
9,581
300
504
753
746
498
501
496
324
993
750
505
499
747
757
495
8,869
2020
184
1,369
1,553
1,369
844
1,303
862
1,141
5,149
10,668
173
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Breakdown of bonds and other interest-bearing debts
In EUR mn
Bonds and other long-term interest-bearing debts1
Fixed rates
EUR
USD
Other currencies
Total
Variable rates2
EUR
USD
Other currencies
Total
Other short-term interest-bearing debts
EUR
USD
Other currencies
Total
1 Including short-term components of long-term debts
2 Rates as of year-end
Other financial liabilities
Other financial liabilities
In EUR mn
2021
2020
Weighted
average
interest rate
Weighted
average
interest rate
8,959
312
—
9,271
77
194
38
310
250
4
—
254
1.45%
4.27%
—
1.54%
0.77%
1.24%
0.46%
1.02%
(0.22)%
—
—
(0.22)%
9,363
288
33
9,685
661
282
41
984
182
0
2
184
1.63%
4.27%
9.40%
1.74%
0.27%
1.56%
0.66%
0.66%
0.17%
—
0.95%
0.18%
Derivative financial liabilities
Liabilities on derivatives designated and effective as hedging instruments
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
Other sundry financial liabilities
Other financial liabilities
Short-term
Long-term
Total
3,607
102
3,506
760
4,367
2,169
86
2,083
926
3,095
2021
2020
471
—
471
116
587
347
12
335
106
454
4,079
102
3,977
876
4,955
2,516
98
2,418
1,033
3,549
174
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
The table hereafter summarizes the maturity profile of
the Group’s financial liabilities based on contractual un-
discounted 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
Lease liabilties
Trade payables
Derivative financial liabilities
Other sundry financial liabilities
Financial liabilities (undiscounted cash flows)
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
≤1 year
1 – 5
years >5 years
Total
2021
870
373
155
4,860
3,608
761
10,627
3,921
940
420
—
471
22
5,774
3,984
511
739
—
—
151
5,385
8,775
1,824
1,314
4,860
4,079
934
21,786
942
723
169
4,304
2,169
926
9,233
2020
3,707
881
430
—
347
22
5,387
5,068
437
777
—
—
113
6,395
9,717
2,041
1,377
4,304
2,516
1,062
21,016
Short-term
Long-term
Total
1,027
128
129
155
1,440
607
34
96
131
868
2021
2020
—
16
98
4
118
—
15
117
3
135
1,027
144
228
159
1,558
607
49
214
134
1,003
175
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Contract liabilities
In EUR mn
January 1
Currency translation 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
Other changes
December 31
2021
214
1
2020
222
(3)
(80)
(71)
95
(1)
228
69
(3)
214
The contract liabilities consisted mainly of non-refunda-
ble prepayments of storage fees received from Erdöl-
Lagergesellschaft m.b.H., Lannach on the basis of
long-term service contracts.
176
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
25 Deferred taxes
Deferred taxes
In EUR mn
Deferred tax
assets total
Deferred tax
assets not
recognized
Deferred tax
assets
recognized
Deferred tax
liabilities
Intangible assets
Property, plant and equipment
Inventories
Derivatives
Receivables and other assets
Deferred taxes reclassified to assets and liabilities associated with as-
sets held for sale
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 reclassified to assets and liabilities associated with as-
sets held for sale
Deferred taxes as per statement of financial
position
Intangible assets
Property, plant and equipment
Inventories
Derivatives
Receivables and other assets
Deferred taxes reclassified to assets and liabilities associated with as-
sets held for sale
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 reclassified to assets and liabilities associated with as-
sets held for sale
Deferred taxes as per statement of financial
position
197
163
38
667
88
39
263
1,307
125
259
115
1,546
433
5,240
209
137
37
539
55
27
291
1,318
121
305
226
1,654
—
4,919
2021
22
86
—
—
15
—
128
15
—
0
—
706
—
972
175
77
38
667
73
39
135
1,292
125
259
115
840
433
4,268
446
2,456
67
1,086
50
82
106
0
46
7
—
—
10
4,356
(2,965)
(2,965)
39
82
1,265
1,309
2020
20
89
—
—
17
22
151
14
—
60
—
780
—
1,153
188
48
37
539
38
5
140
1,305
121
245
226
875
—
3,765
606
2,322
27
597
53
12
111
—
34
23
—
—
40
3,823
(2,581)
(2,581)
5
12
1,179
1,229
177
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Deferred taxes were mainly related to different valua-
tion methods, differences in impairments, write-offs, de-
preciation and amortization as well as different defini-
tion of costs.
In 2021 as well as in the previous year, a valuation al-
lowance for deferred tax assets for the Austrian tax
group was recognized.
The overall net deferred tax asset position of tax juris-
dictions which suffered a tax loss either in current or
preceding year amounted to EUR 901 mn, thereof
EUR 658 mn is attributable to the Austrian tax group
(2020: EUR 720 mn, thereof Austrian tax group
EUR 640 mn).
As of December 31, 2021, OMV recognized tax losses
carryforward of EUR 5,886 mn before allowances
(2020: EUR 6,302 mn), thereof EUR 3,202 mn (2020:
EUR 3,331 mn) are considered recoverable for calcula-
tion of deferred taxes.
Eligibility of losses for carryforward expires as follows:
Tax losses carryforward
In EUR mn
2021
2022
2023
2024
2025
After 2026/2025
Unlimited
Tax losses carryforward
2021
2020
Base
amount
(before allo-
wances)
Base
amount
(before allo-
wances)
thereof not
recognized
thereof not
recognized
—
0
0
0
0
0
5,885
5,886
—
0
0
0
0
0
2,684
2,684
5
0
2
4
48
47
6,196
6,302
5
0
2
4
17
24
2,919
2,971
The majority of tax losses carryforward not recog-
nized referred to the Austrian Tax Group and France.
As of December 31, 2021, the aggregate amount of
temporary differences associated with fully consoli-
dated and equity-accounted investments for which de-
ferred tax liabilities have not been recognized
amounted to EUR 7,475 mn (2020: EUR 4,657 mn).
Capital gains on disposals of investments may be real-
ized on various levels of the Group depending on the
structuring of potential divestments. Due to the com-
plexity of the group and the associated tax implications
simplifying assumptions for the calculation have been
made that aim to diminish cascade effects.
178
OMV ANNUAL REPORT 2021 / 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
2021
997
4,067
5,064
2020
741
2,128
2,869
Significant non-cash items
In 2021 as well as in 2020, non-cash additions to fixed
assets included mainly effects related to the reassess-
ment of decommissioning and restoration obligations.
The line “Proceeds in relation to non-current assets”
contained a cash inflow of EUR 290 mn related to the
sale of the stake in the Norwegian oil field Wisting.
In 2020, the remeasurement of the previously held 36%
at-equity share in Borealis was included in the line
“Other changes” in the statement of cash flows.
Cash flow from investing activities
For details about the cash flow effect from divestments
of subsidiaries and businesses please refer to Note 3 –
Changes in group structure.
Cash flow from financing activities
The line “Repayments of long-term borrowings” com-
prised the repayment of bonds totalling EUR 1.55 bn.
This included the repayment of a hybrid bond in the
amount of EUR 750 mn. Before repayment, the hybrid
bond was reclassified from equity to financial liabilities
after the Executive Board had approved on October 13,
2021 that OMV exercises the right to call the hybrid
bond.
Changes in liabilities arising from financing activities (incl. liabilities associated with assets held for sale)
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
Currency translation differences
Changes in consolidated group
Reclassification of hybrid bond from equity to financial liabilities
Difference interest expenses and interest paid
Other changes
Total non-cash changes
2021
Other
interest-
bearing
debts
2,130
Lease
liabilities
1,217
250
(563)
61
(251)
48
(148)
—
(15)
—
(114)
—
(174)
—
(174)
5
(6)
—
1
1491
149
Bonds
8,869
—
(1,550)
—
(1,550)
—
—
789
(4)
—
784
Total
12,216
250
(2,287)
61
(1,975)
53
(154)
789
(18)
149
819
Coupon payment from hybrid bond before reclassification from
equity 2
(33)
—
—
(33)
December 31
8,070
1,765
1,191
11,026
1 Mainly related to new lease agreements
2 Shown in the line "Dividends paid to stockholders of the parent (incl. hybrid coupons)" in the Statement of Cash Flows
179
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Changes in liabilities arising from financing activities (incl. liabilities associated with assets held for sale)
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
Currency translation differences
Changes in consolidated group
Difference interest expenses and interest paid
Other changes
Total non-cash changes
2020
Other
interest-
bearing
debts
769
Lease
liabilities
1,053
114
(164)
(96)
(146)
(33)
1,538
(2)
4
1,508
—
(133)
—
(133)
(7)
174
0
1301
297
Bonds
5,802
3,225
(500)
—
2,725
—
329
13
—
342
Total
7,624
3,338
(797)
(96)
2,446
(41)
2,041
12
134
2,147
December 31
8,869
2,130
1,217
12,216
1 Mainly related to new lease agreements
The total cash outflow related to lease liabilities
amounted to EUR 199 mn (2020: EUR 157 mn).
Financing commitments provided to related parties are
detailed in Note 35 – Related parties.
As of December 31, 2021, the Group had available
EUR 4,415 mn of undrawn committed borrowing facili-
ties that can be used for future activities without any re-
strictions (December 31, 2020: EUR 4,332 mn).
27 Contingent liabilities
OMV recognizes provisions for litigations if these are
more likely than not to result in obligations. Manage-
ment is of the opinion that litigations, to the extent not
covered by provisions or insurance, will not materially
affect the Group’s financial position.
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 environ-
mental obligations has been provided in accordance
with the Group’s accounting policies. Provisions for de-
commissioning and restoration are recognized if an ob-
ligation 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 May 2009, OMV signed an agreement with the
sellers Crescent Petroleum International Limited (Cres-
cent) and Dana Gas PJSC (Dana) to acquire a 10%
share in Pearl Petroleum Company Limited (Pearl), a
company that holds a contract over and operates Khor
Mor and Chemchemal gas fields in the Kurdistan Re-
gion of Iraq. The agreement included contingent pay-
ments to be made by OMV which are dependent on fur-
ther reserves determinations (Earn Out Payments). The
reserves determinations will have to be made by a
jointly appointed independent expert.
In this connection, in May 2019, OMV received an in-
voice from Crescent and Dana amounting to approxi-
mately USD 241 mn and later unsubstantiated and re-
jected allegations of damages in an amount of up to
more than one billion USD. OMV rejected the invoice
due to at the time pending independent expert determi-
nation before the International Chamber of Commerce
(ICC) and two arbitrations before the London Court of
International Arbitration (LCIA): one arbitration under
180
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
the Joint Venture Agreement (JVA) regarding inter alia
the non-approval of Chemchemal and Khor Mor Field
Development Plans (FDPs) by OMV (JVA Arbitration)
and secondly under the Share Sales Agreement (SSA)
regarding Earn Out Payments mentioned above and re-
sidual demands for alleged unjustified enrichment (SSA
Arbitration). In Februay 2020, a second independent
expert determination was initiated by Crescent and
Dana before the ICC in respect of another revision of
the Chemchemal FDP. The two independent expert de-
terminations before the ICC have been decided in favor
of OMV and concluded that the respective Chemche-
mal FDP’s were not compliant with the criteria in the
JVA. In December 2021, the LCIA also ruled in OMV’s
favor in respect of JVA Arbitration and all claims from
Crescent and Dana against OMV in respect of dam-
ages under the JVA were rejected. The SSA Arbitration
is in progress.Depending on further progress of the
SSA arbitration proceedings and not yet commenced
reserve determinations under the SSA, a contingent
payment could potentially arise; however, such event is
not deemed probable at this stage, claims for unjusti-
fied enrichment are deemed even less probable.
OMV’s position is further strengthened by the recent
LCIA decision in JVA Arbitration in favor of OMV.
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.
On April 16, 2020, the Bulgarian Commission for Pro-
tection of Competition announced the initiation of an in-
vestigation regarding the determination of the prices on
fuel market. OMV Bulgaria EOOD is subject to this in-
vestigation, among other major manufacturers and re-
tailers on Bulgarian market. During 2020 two requests
of providing information were received from authorities
and the responses were submitted in due time. There
were no additional requests from authorities in 2021,
but the investigation is not yet finalized. The sanctions
for antitrust infringements are up to 10% of the total
company’s turnover of the respective undertaking for
the financial year prior to the sanctioning decision. At
the date of these financial statements,OMV is not able
to evaluate the outcome of the investigation and no
provision was recorded in this respect.
As of December 31, 2021, one other proceeding was
pending against OMV related to local service contrac-
tors in one of the subsidiaries. OMV’s share of claimed
amount is around USD 330 mn. Management currently
does not believe that any of the alleged matters will
have a material effect on the financial position or re-
sults of operations. However, this assessment is based
on assumptions deemed reasonable by management
including those about future events and uncertainties.
The outcome of these matters is ultimately uncertain,
such that unanticipated events and circumstances
might occur that might cause management to change
those assumptions and give rise to a material adverse
effect on our financial position in the future.
181
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
28 Risk management
Capital risk
OMV’s financial steering framework is built upon the
principles of operational efficiency, capital efficiency, fi-
nancing efficiency and sustainable portfolio manage-
ment. With the focus on strengthening OMV’s balance
sheet, delivering a positive free cash flow and growing
its profitability, the financial steering framework repre-
sents sustainable, risk-monitored and future-oriented
value creation for OMV and its stakeholders.
OMV manages its capital structure to safeguard its cap-
ital base in order to preserve investor, creditor and mar-
ket confidence, as well as to provide a sustainable fi-
nancial foundation for the future operational develop-
ment 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
investment grade credit rating on the basis of a healthy
balance sheet and a long-term gearing ratio, excluding
leases, of below 30%.
Capital Management – key performance measures
In EUR mn (unless otherwise stated)
Bonds
Other interest-bearing debts1
Debt excluding leases
Cash and cash equivalents2
Net Debt excluding leases
Equity
Gearing Ratio excluding leases in %
2021
8,070
1,765
9,835
5,064
4,771
2020
8,869
2,130
10,999
2,869
8,130
21,996
19,899
22
41
1 Including other interest-bearing debts that were reclassified to liabilities associated with assets held for sale
2 Including cash and cash equivalents that were reclassified to assets held for sale
Liquidity risk
For the purpose of assessing liquidity risk, yearly budg-
eted 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, 2021, the average weighted ma-
turity of the Group’s debt portfolio (excluding lease lia-
bilities) has been 5.1 years (as of December 31, 2020:
5.3 years).
OMV Group’s operational liquidity management is done
centrally via a cash pooling system, which enables opti-
mum use of existing cash and liquidity reserves to the
benefit of every individual member of cash pooling sys-
tem and therefore the Group as a whole.
Details of OMV Group’s financial liabilities are shown in
Note 24 – Liabilities.
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, lia-
bilities or expected future cash flows.
Hedges are generally placed in the legal entities where
the underlying exposure exists. When certain condi-
tions are met, the Group may elect to apply IFRS 9
hedge accounting principles in order to recognize the
offsetting effects on profit or loss of changes in the fair
value of the hedging instruments at the same time as
the hedged items.
Derivatives are only used for economic hedging pur-
poses and not as speculative investments. However,
where derivatives are not designated as hedging instru-
ments (i.e. hedge accounting is not applied), they are
valued through profit or loss for accounting purposes.
The tables hereafter show the fair values of derivative
financial instruments together with their notional
amounts. The notional amount, recorded gross, is the
182
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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 out-
standing at the year-end and are not indicative of either
the market risk or the credit risk.
Nominal and fair value of derivative financial instruments
In EUR mn
2021
Fair
value
assets
Fair
value
liabilities Nominal
2020
Fair
value
assets
Fair
value
liabilities
Nominal
Commodity price risk
Oil incl. oil products
Gas
Power
Commodity hedges (designated in hedge relation-
ship)1
536
101
252
20
1
377
(35)
(57)
(1)
515
31
213
889
398
(93)
759
Oil incl. oil products
Gas
Power
Other2
Commodity hedges (valued at fair value through
profit or loss)
Foreign currency risk
USD
SEK
Foreign currency hedges (designated in hedge rela-
tionship)1
USD
NOK
NZD
RON
SEK
Other
Foreign currency hedges (valued at fair value
through profit or loss)
Interest rate risk
Interest rate hedges
5,233
32,640
849
285
2
3,586
260
364
(50)
6,305
(3,418) 20,305
209
334
(492)
(0)
39,008
4,213
(3,960) 27,152
2,480
(2,417)
183
161
344
1,685
1,163
—
—
—
169
3,017
—
0
0
3
6
—
—
—
0
9
(6)
(2)
168
143
(8)
311
(5)
(11)
—
—
—
(1)
793
272
69
5
44
108
(17)
1,290
9
6
14
17
4
1
0
—
1
22
(1)
—
(1)
(1)
(0)
(0)
(0)
(0)
(0)
(1)
109
—
(1)
113
0
(4)
30
3
24
57
(71)
(7)
(14)
(93)
445
1,932
5
98
(386)
(1,996)
(6)
(29)
1 Including inefficient part of hedges designated in a hedging relationship
2 Includes derivatives for European Emission Allowance
The Group’s hedging portfolio disclosed in the Con-
solidated Statement of Changes in Equity relates to
the following hedging instruments:
183
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Cash flow hedging – Impact of hedge accounting
In EUR mn
Forecast
purchases
Forecast
sales
Foreign cur-
rency, firm
commitments
Foreign cur-
rency, other
Commodity price risk
Foreign currency risk
Interest
rate
Interest
rate risk
thereof cost
of hedging
reserve
Total
2021
26
31
531
(115)
—
—
8
(14)
0
2
65
403
—
—
(237)
(5)
(72)
65
—
11
243
(9)
n.a.
(3)
—
(176)
n.a.
—
—
—
—
0
4
—
(0)
(5)
(57)
(6)
2
230
—
—
—
—
—
(9)
—
5
39
—
(7)
364
(62)
2020
—
10
(6)
(353)
n.a.
(0)
—
0
0
44
305
—
16
(359)
n.a.
Hedge ineffectiveness recog-
nized in profit or loss
1
(10)
Cash flow hedge reserve as of
January 1 (net of tax)
Gains/(losses) of the period
recognized in OCI
Amounts reclassified to the in-
come statement
Amounts reclassified to bal-
ance sheet
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 the in-
come statement
Amounts reclassified to the in-
come statement because the
hedged future cash flows no
longer expected to occur
Amounts transferred to cost of
non-financial item
Tax effects
Cash flow hedge reserve as
of December 31 (net of tax)
thereof discontinued hedges
3
(24)
40
(8)
26
—
—
5
31
57
—
62
—
—
—
—
Hedge ineffectiveness recog-
nized in profit or loss
(2)
2
Reserve for unrealized exchange gains/losses for net investment hedge1
In EUR mn
Reserve as of January 1 (net of tax)
Valuation of the USD loans
Tax effects
Reserve as of December 31 (net of tax)
1 Included in currency translation differences within other comprehensive income
184
—
—
(21)
n.a.
(0)
(2)
—
(0)
102
(6)
65
57
8
—
—
0
—
—
(16)
—
—
n.a.
0
—
Foreign currency risk
2021
7
(16)
4
(5)
2020
—
10
(2)
7
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
At 31 December 2021 and 31 December 2020, the
Group held the following cash flow and net investment
hedging relationships. The table shows the profile of
the timing (maturity) of the nominal amount of the hedg-
ing instruments.
Impact of hedge accounting on the statement of financial positions
In EUR mn
Forecast
purchases
Forecast
sales
Net invest-
ment hedge
Foreign cur-
rency, other
Commodity price risk
Foreign currency risk
Interest
hedges
Interest
rate risk
176
176
—
218
196
22
713
608
106
398
93
541
415
126
56
93
2021
191
—
191
n.a.
n.a.
2020
176
—
176
n.a.
n.a.
344
344
—
0
8
311
311
—
14
1
109
12
97
—
1
113
—
113
0
4
Total
1,533
1,139
394
398
102
1,358
921
437
71
98
Nominal Value
Below one year
More than one year
Fair value – assets
Fair value – liabilities
Nominal Value
Below one year
More than one year
Fair value – assets
Fair value – liabilities
Above shown Fair value assets and liabilities are pre-
sented in Line item Other financial assets and Other
financial liabilities in OMV’s Consolidated statement of
financial position.
Commodity price risk
European Emission Allowances
All OMV’s business segments are exposed to fluctua-
tion in the price of carbon under the EU Emission Trad-
ing Scheme (ETS). European Emission Allowance pur-
chases are always executed in due time and it is
OMV’s highest priority to fulfill all legal obligations un-
der the ETS. OMV monitors price risks from emission
allowances and manages it using derivative instru-
ments (spots and forwards) traded billaterally on the
secondary market (so-called over-the-counter or OTC
transactions).
Exploration & Production
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 Group’s growth strategy, OMV
uses financial derivatives to secure favorable oil and
gas prices from time to time. When doing so, OMV en-
ters 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 2021, oil and gas derivative contracts were con-
cluded, resulting in a total negative Operating result im-
pact of EUR (675) mn (oil: EUR (82) mn, gas:
EUR (594) mn).
In 2020, oil and gas derivative contracts were entered
into, resulting in a total negative Operating result im-
pact of EUR (37) mn (oil: EUR (30) mn, gas:
EUR (7) mn).
For these derivative instruments no hedge accounting
was applied.
Refining & Marketing
Commodity price risk management in Refining and
Marketing refers to analysis, assessment, reporting and
hedging of market price risk exposure arising from non-
trading and trading activities, covering refining (refinery
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.
185
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Limited proprietary trading activities are performed for
the purpose of creating market access within the oil,
power and gas markets. In Gas trading, OTC swaps,
options, futures and forwards are used to hedge pur-
chase 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.
The risk management strategy is to harmonize the pric-
ing 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 miti-
gate the price exposure. The range is a defined maxi-
mum deviation from the target stock level, as defined in
the Annual Plan for hedging activities.
In Refining and Marketing, derivative instruments are
used for both hedging selected product sales and re-
ducing exposure to price risks on inventory fluctuations.
Crude oil and product swaps are used to hedge the re-
fining margin (crack spread), which is the difference be-
tween crude oil prices and bulk product prices.
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.
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.
Chemicals & Materials
For the chemical production, some of the forecasted
cracker feedstock purchases and finished product sales
are hedged through refined oil products swaps. Cash
flow hedge accounting is applied to those derivatives,
except for the derivatives that are used to limit the price
risk on the inventory held for immediate consumption.
Contracts not designated as cash flow hedges are clas-
sified as fair value through profit or loss and stated at
fair value.
Borealis hedges its forecasted electricity purchases us-
ing electricity swaps.
Cash flow hedges in Refining & Marketing and
Chemicals & Materials
In the Refining & Marketing and Chemical & Materials
Business, OMV is especially exposed to volatile refin-
ing margins and inventory risks. In order to mitigate
those risks corresponding hedging activities are taken,
which include margin hedges, stock hedges, feedstock
and commodity hedges. Additionally, cash flow hedge
accounting is applied to forecast electricity purchases
and forecast natural gas purchases. Also a part of the
hedges done for future sales and purchases of the
crackers has been designated as cash flow hedge.
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 prod-
ucts is a separately identifiable component and can
therefore represent the specific risk component desig-
nated as hedged item. There are limits set for the vol-
ume of planned hedged sales to avoid over hedging.
In 2020 the risk management objective for the refinery
margin hedges changed and therefore most of the
hedging relationships were discontinued.The accumu-
lated gains and losses remained in the cash flow hedg-
ing reserve upon realization of the hedged item. In ad-
dition hedge accounting related to forecast sales of
specific products has been terminated because cash
flows have no longer been expected to occur due to the
impacts of the COVID-19 pandemic. The accumulated
gains and losses were immediately reclassified to profit
or loss.
Stock hedges are used to mitigate price exposure
whenever actual priced stock levels deviate from target
levels. Forecast sales and purchase transactions 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 de-
rivatives are identical to the hedged risk components.
Hedge ineffectiveness can arise from timing differential
between derivative and hedged item delivery and pric-
ing differentials (derivatives are valued on the future
186
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
monthly average price (or other periods) and sales/pur-
chases on the pricing at the date of transaction/deliv-
ery).
For ‘Forecast purchases’ the hedge ineffectiveness is
included in line item ‘Purchases (net of inventory varia-
tion)’ in OMV’s Consolidated income statement. The
hedge ineffectiveness and recycling of ‘Forecast sales’
for hedges where a risk component of the non-financial
item is designated as the hedged item in the hedging
relationship is shown in line item ‘Sales revenues’ in
OMV’s Consolidated income statement.
Foreign exchange risk management
OMV operates in many countries and currencies, there-
fore industry-specific activities and the corresponding
foreign exchange rate risks need to be analyzed pre-
cisely. The USD represents OMV’s biggest risk expo-
sure, in the form of movement of the USD against the
EUR and also against other main OMV Group curren-
cies (RON, RUB, NOK, NZD and SEK). Movements of
these currencies against the EUR are also important
sources of risk. Other currencies have only a limited im-
pact on cash flow and Operating result. The transaction
risk on foreign currency cash flows is monitored on an
ongoing basis. The Group’s long and short net position
is reviewed at least on a semiannual basis and the sen-
sitivity is calculated. This analysis provides the basis for
management of transaction risks on currencies. Since
OMV produces commodities that are mainly traded in
USD, OMV Group has an economic USD long position.
FX options, forwards and swaps are mainly used to
hedge foreign exchange rate risks on outstanding re-
ceivables and payables. The market value of these in-
struments will move in the opposite direction to the
value of the underlying receivable or liability if the rele-
vant foreign exchange rate changes. When certain con-
ditions are met, the Group may elect to apply IFRS 9
hedge accounting principles in order to recognize the
offsetting effects on profit or loss of changes in the fair
value of the hedging instruments at the same time as
and the hedged items. Certain hedges which refer to a
forecasted currency position are therefore classified as
cash flow hedges and stated at fair value through other
comprehensive income.
Translation risk is also monitored on an ongoing basis
at Group level, and the risk position is evaluated.
Translation risk arises on the consolidation of subsidiar-
ies with functional currencies different from EUR. The
largest exposures result from changes in RON, USD,
RUB, NOK, and SEK denominated assets against the
EUR.
A foreign currency exposure arises from the Group’s
long-term net investment in its subsidiaries, associated
companies and joint ventures in foreign currencies.
Foreign exchange translation differences relating to
these net investments are recognized in other compre-
hensive income. Borealis has hedged part of its invest-
ment in an associated company which has USD as its
functional currency, by designating certain external
loans in USD as hedges of the Group’s investments in
its foreign operations. The hedged risk in the net invest-
ment hedge is the risk of a weakening USD against the
EUR that will result in a reduction in the carrying
amount of the Group’s net investment in the associated
company in USD. The EUR/USD impact on the meas-
urement of the loan is recognized in other comprehen-
sive income.
To assess hedge effectiveness, the Group determines
the economic relationship between the hedging instru-
ment and the hedged item by comparing changes in
the carrying amount of the debt that is attributable to a
change in the spot rate with changes in the investment
in the foreign operation due to movements in the spot
rate (the dollar-offset method). The Group’s policy is to
hedge the net investment only to the extent of the debt
principal.
There is an economic relationship between the hedged
item and the hedging instrument as the net investment
creates a translation risk that will match the foreign ex-
change risk on the USD borrowing. The Group has es-
tablished a hedge ratio of 1:1 as the underlying risk of
the hedging instrument is identical to the hedged risk
component. Hedge ineffectiveness will arise when the
amount of the investment in the foreign associated
company becomes lower than the amount of the bor-
rowing.
Interest rate management
To facilitate management of interest rate risk, OMV’s li-
abilities are analyzed in terms of fixed and floating rate
borrowings, currencies and maturities. Appropriate ra-
tios 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. In the year
2021 the impact of interest rate swaps has not been
material (2020: no material impact).
The hedge ineffectiveness and recycling of Interest rate
swaps are both shown in line item ‘interest expenses’ in
OMV’s Consolidated income statement.
187
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Interest rate benchmark reform (IBOR Reform)
The Group is continuously evaluating contractual terms
in respect of the London Inter-Bank Offered Rate (LI-
BOR) transition exposures. Where necessary, agree-
ments will be amended to provide for alternative bench-
mark rates, which shall be in accordance with Loan
Market Association (LMA) standard at the time, to apply
in relation to the affected currencies.
As per end of December 2021, for the undrawn mul-
ticurrency EUR 1 bn Revolving Credit Facility (RCF) a
drawdown waiver is in place for currencies where IBOR
rates were discontinued as a Screen Rate from Decem-
ber 31, 2021 (CHF,GBP,JPY). The RCF drawdown
waiver shall cease to have effect if the Facility is
amended to provide for alternative benchmark rates,
which shall be in accordance with LMA standard at a
time.
In addition, a JPY loan tranche of EUR 38 mn has
been successfully transitioned to Tokyo Overnight Av-
erage Rate (TONAR).
The Group considers that it is, in principle, exposed to
uncertainties resulting from the interest rate benchmark
reform in respect of its hedges of (3 month) USD LI-
BOR interest risks related to the existence of two out-
standing USD interest rate swaps, with a nominal
amount of EUR 97 mn in total and a cross currency in-
terest rate swap of EUR 38 mn. Their hedging period
spans beyond 2021 when uncertainties about the exist-
ence of the USD LIBOR rates arise. OMV Group ex-
pects that the hedging instrument and the hedged risk
of the hedged item will not change as a result of the re-
form. However, any hedge ineffectiveness would be ac-
counted for in the income statement.
For further information in respect of IBOR reform see
see Note 2 – Accounting policies, judgements and esti-
mates.
Impact of Interest Rate Benchmark Reform
In EUR mn
Non-derivative assets
Loan receivable
Non-derivative liabilities
Loan liabilities
Loan liabilities
Derivatives
Interest rate swap (designated in a hedge relationship)
Interest rate swap (designated in a hedge relationship)
Cross currency interest rate swap (valued at fair value through profit or loss)
Impact of Interest Rate Benchmark Reform
In EUR mn
Undrawn commitments
Financing commitments provided
Committed borrowing facilities - available RCF
Benchmark
Carrying Value
(notional amount
for derivatives)
USD LIBOR
USD LIBOR
JPY LIBOR
USD LIBOR
USD LIBOR
JPY LIBOR
to USD LIBOR
987
189
38
44
53
38
USD LIBOR
Multicurrency
251
1,000
Sensitivity analysis
For open hedging contracts sensitivity analysis is per-
formed to determine the effect of market price fluctua-
tions (+/–10%) on market value. The sensitivity of OMV
Group’s overall earnings differs from the sensitivity
shown below, since the contracts concluded are used
to hedge operational exposures.
The effect of market price fluctuations on profit or loss
or other comprehensive income 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 other comprehensive income. Sen-
sitivity to market price fluctuations for all other open de-
rivatives is shown in the sensitivity tables for profit be-
fore tax.
188
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Sensitivity analysis for open commodity derivatives affecting profit before tax
In EUR mn
Oil incl. oil products
Gas
Power
Other1
Total
1 Includes derivatives for European Emission Allowance
2021
2020
Market price
+10%
Market price
(10)%
Market price
+10%
Market price
(10)%
(25)
(2)
(43)
65
(4)
25
2
43
(65)
5
(14)
(7)
(20)
23
(18)
14
5
20
(23)
17
Sensitivity analysis for open commodity derivatives affecting other comprehensive income
In EUR mn
Oil incl. oil products
Gas
Power
Commodity hedges (designated in a hedge relationship)
2021
2020
Market price
+10%
Market price
(10)%
Market price
+10%
Market price
(10)%
3
3
57
64
(3)
(3)
(57)
(64)
(32)
(2)
24
(10)
32
2
(24)
10
For financial instruments, sensitivity analysis is per-
formed 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, EUR-
SEK and EUR-NZD exposure.
Sensitivity analysis for financial instruments affecting profit before tax1
In EUR mn
EUR-RON
EUR-USD
EUR-NZD
EUR-NOK
EUR-SEK
2021
2020
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
(2)
(114)
(4)
23
(6)
2
114
4
(23)
6
(11)
(27)
(4)
(8)
(0)
11
27
4
8
0
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
189
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Sensitivity analysis for financial instruments affecting other comprehensive income1
In EUR mn
EUR-USD
EUR-SEK
1 Including sensitivity of the net investment hedge
2021
2020
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
39
(16)
(39)
16
33
(15)
(33)
15
OMV Group holds financial assets whose market value
would be affected by changes in interest rates. The ef-
fect of an interest rate increase of 0.5 percentage
points on the financial assets measured at FVTPL as of
December 31, 2021, would have been a EUR (4) mn
reduction in the market value of these financial assets
(2020: EUR (9) mn). A 0.5 percentage points fall in the
interest rate as of December 31, 2021 would have led
to an increase in market value of EUR 4 mn (2020:
EUR 9 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 rates are not considered to be a
material risk.
Credit risk management
The main counterparty credit risks are assessed and
monitored at Group level and Segment level using pre-
determined criteria and limits for all counterparties,
banks and security providers. On the basis of a risk as-
sessment, counterparties, banks and security providers
are assigned a credit limit, an internal risk class and a
specific limit validity. The risk assessments are re-
viewed 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 invest-
ment grade credit ratings. OMV uses commercial trade
insurance for parts of its receivables in some business
areas to mitigate risk. Based on the high economic un-
certainty resulting from the COVID-19 pandemic, spe-
cial attention is paid to early warning signals like
changes in payment behavior.
Credit risk is the risk that OMV Group’s counterparties
will not meet their obligation under a financial instru-
ment 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 finan-
cial institutions (see Note 26 – Statement of cash
flows), foreign exchange transactions and other finan-
cial instruments (see Note 18 – Financial assets).
190
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
29 Fair value hierarchy
Fair value hierarchy of financial assets1 and net amount of assets and liabilities held for sale at fair value
In EUR mn
Trade receivables
Investments in other companies
Investment funds
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial
assets2
Net amount of assets and
liabilities associated with
assets held for sale
Total
Trade receivables
Investments in other companies
Investment funds
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial
assets2
Net amount of assets and
liabilities associated with
assets held for sale
Total
Carrying amount
Valued at
amortized
cost
Valued at
fair value
Fair value level
Total
Level 1
Level 2
Level 3
Total
4,260
—
—
63
258
17
30
—
—
—
2,015
398
4,220
—
4,518
17
30
63
398
4,220
2,015
1,703
432
2,135
n.a.
8,041
354
5,709
354
13,751
3,245
—
—
64
—
—
1,720
71
15
35
—
71
2,502
—
3,316
15
35
64
71
2,502
1,720
1,313
744
2,058
2021
2020
—
—
30
—
—
40
—
—
—
70
—
—
35
—
—
69
—
—
258
—
—
—
398
4,180
—
—
17
—
—
—
—
—
258
17
30
—
398
4,220
—
—
432
432
(23)
4,814
377
826
354
5,709
71
—
—
—
71
2,433
—
—
15
—
—
—
—
—
71
15
35
—
71
2,502
—
—
744
744
n.a.
6,343
98
3,536
98
9,878
—
104
98
2,672
—
759
98
3,536
1 Excluding assets held for sale
2 Other sundry financial assets at fair value include an asset from reserves redetermination rights related to the acquisition of interests in the field Yuzhno Russ-
koye, 2020 included in addition a contingent consideration 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.
191
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Fair value hierarchy of financial liabilities1
In EUR mn
Carrying amount
Valued at
amortized
cost
Valued at
fair
value
Fair value level
Total
Level 1
Level 2
Level 3
Total
2021
4,860
8,070
1,018
1,765
—
—
—
—
4,860
8,070
1,018
1,765
—
102
102
—
3,977
3,977
876
16,588
—
4,079
876
20,667
4,304
8,869
1,084
1,983
—
—
2020
—
—
—
—
4,304
8,869
1,084
1,983
98
98
2,418
2,418
1,033
17,272
—
2,516
1,033
19,788
—
—
—
—
17
42
—
59
—
—
—
—
—
70
—
70
—
—
—
—
85
3,935
—
4,019
—
—
—
—
98
2,349
—
2,446
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
102
3,977
—
4,079
—
—
—
—
98
2,418
—
2,516
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
Lease liabilities
Other interest bearing debt
Liabilities on derivatives
designated and effective as
hedging instruments
Liabilities on other
derivatives
Other sundry financial
liabilities
Total
1 Excluding liabilities associated with assets held for sale
Financial assets and liabilities for which fair values are disclosed1
In EUR mn
Fair Value
Fair value level
Level 1
Level 2
Level 3
63
63
8,586
1,742
10,328
64
64
9,652
2,002
11,654
—
—
8,586
—
8,586
2020
—
—
9,352
—
9,352
63
63
—
1,742
1,742
64
64
300
2,002
2,302
2021
—
—
—
—
—
—
—
—
—
—
Bonds
Financial assets
Bonds
Other interest bearing debt
Financial liabilities
Bonds
Financial assets
Bonds
Other interest bearing debt
Financial liabilities
1 Excluding assets and liabilities that were reclassified to held for sale
192
OMV ANNUAL REPORT 2021 / 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 as-
set and settle the liability simultaneously.
The tables hereafter show the carrying amounts of rec-
ognized financial assets and financial liabilities that are
subject to various netting arrangements. The net col-
umn would be on the Group’s statement of financial po-
sition, if all set-off rights were exercised.
OMV enters in the normal course of business into vari-
ous master netting arrangements in the form of Interna-
tional Swaps and Derivatives Association (ISDA)
agreements or European Federation of Energy Traders
(EFET) agreements or other similar arrangements.
During 2021 OMV has updated its assessment of
IAS 32.42 netting criteria further to a legal assessment
of the major agreements in place.
Offsetting of financial assets
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)
21,462
6,998
2,231
30,691
(16,844)
(2,480)
(97)
(19,420)
2021
4,619
4,518
2,135
11,271
2,573
3,325
2,058
7,955
2020
2,573
3,316
2,058
7,947
—
(9)
—
(9)
(1,421)
(107)
(104)
(1,633)
(2,023)
(1,298)
(104)
(3,424)
Derivative financial instruments
Trade receivables
Other sundry financial assets
Total
Derivative financial instruments
Trade receivables
Other sundry financial assets
Total
18
18
18
18
18
18
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)
Assets with
right of set-off
(not offset)
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
20,922
7,340
973
29,235
(16,844)
(2,480)
(97)
(19,420)
2,516
4,313
1,033
7,861
—
(9)
—
(9)
2021
4,079
4,860
876
9,815
2020
2,516
4,304
1,033
7,853
(1,421)
(107)
(104)
(1,633)
(2,024)
(1,298)
(103)
(3,424)
Net
3,197
4,411
2,031
9,639
550
2,018
1,954
4,522
Net
2,657
4,753
772
8,182
492
3,006
930
4,428
193
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
31 Result on financial instruments
Result on financial instruments
In EUR mn
Financial
instruments at
fair value
through profit
or loss
Equity instruments
designated as at
fair value through
other
comprehensive
income
Amount
Financial
assets at
amortized
cost
Financial
liabilities at
amortized
cost
(1,050)
(1,050)
(9)
—
(1,059)
(1,050)
19
161
(334)
15
(33)
(1)
(16)
—
—
(4)
15
(33)
—
—
(189)
(22)
111
(10)
101
19
177
(280)
(62)
(24)
(5)
(10)
111
—
111
—
—
0
(62)
(24)
—
—
(183)
(85)
2021
2020
—
—
—
19
—
—
—
—
—
—
19
—
—
—
19
—
—
—
—
—
—
19
—
(9)
(9)
—
160
—
—
—
(0)
—
—
—
—
—
—
(172)
—
—
—
(16)
159
(188)
—
(10)
(10)
—
165
—
—
—
(4)
—
—
—
—
—
3
(168)
—
—
—
(10)
161
(175)
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
Fair value changes of FX derivatives
Financial charges for factoring and
securitization
Impairments of financial
instruments, net
Other
Result on financial instruments
within financial result
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
Fair value changes of FX derivatives
Financial charges for factoring and
securitization
Impairments of financial
instruments, net
Other
Result on financial instruments
within financial result
The interest expense not allocated mainly referred to
the unwinding of provisions. For further details see
Note 11 – Net financial result.
194
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
32 Share based payments
Long Term Incentive (LTI) plans
LTI plans with similar conditions are granted annually to
the Executive Board and selected senior managers in
the Group. At vesting date, shares will be granted to
the participants. The number of shares is determined
depending on the achievement of defined performance
criteria. The defined performance criteria may not be
amended during the performance period of the LTI
plans. However – in order to maintain the incentivizing
character of the program – the Remuneration Commit-
tee will have discretion (until LTI Plan 2020 for the Ex-
ecutive Board) to adjust the threshold/ target/maximum
levels of the free cash flow in case of material changes
in external factors such as oil and gas prices. The ad-
justment is possible in both directions and will be deter-
mined by the Remuneration Committee. The Executive
Board has the discretion to adjust the thresholds/tar-
gets/maximum levels of the free cash flow for Senior
Managers accordingly. Disbursement is made in cash
or in shares. Executive Board members and senior
managers as active participants of the plans are re-
quired 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 eligibil-
ity lapses, but they are still in an active employment
with the company, the shareholding requirement ex-
pires 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 LongTerm Incen-
tive for the senior managers. Executive Board mem-
bers have to fulfill the shareholding requirement within
five years after the initial respective appointment. Until
fulfillment of the shareholding requirement the dis-
bursement is in form of shares whilst thereafter the plan
participants can decide between cash or share settle-
ment. As long as the shareholding requirements are not
fulfilled the granted shares after deduction of taxes are
transferred to a trustee deposit, managed by the Com-
pany.
For share-based payments the grant date fair values
are spread as expenses over the three years perfor-
mance period with a corresponding increase in share-
holders’ 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.
In 2021 Borealis introduced a LTI plan, which is harmo-
nized with the above described LTI Plan. The share-
holding requirement is only applicable to the Executive
Board members of Borealis and not to senior manag-
ers.
195
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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, 2021
Maximum shares as of December 31, 2021
Fair value of plan (in EUR mn) as of
December 31, 2021¹
Provision (in EUR mn) as of December 31,
2021¹
1 Excluding incidental wage costs
2021 plan
01/01/2021
12/31/2023
03/31/2024
2020 plan
2019 plan
2018 plan
01/01/2020
12/31/2022
03/31/2023
01/01/2019
12/31/2021
03/31/2022
01/01/2018
12/31/2020
03/31/2021
200% of
annual gross
base salary
200% of
annual gross
base salary
200% of
annual gross
base salary
200% of
annual gross
base salary
175% of
annual gross
base salary
175% of
annual gross
base salary
175% of
annual gross
base salary
175% of
annual gross
base salary
150% of
annual gross
base salary
150% of
annual gross
base salary
150% of
annual gross
base salary
150%
of annual gross
base salary
75% of the
respective
Target Long
Term Incentive
762,590
861,806
75% of the
respective
Target Long
Term Incentive
225,897
467,641
75% of the
respective
Target Long
Term Incentive
329,098
391,119
75% of the
respective
Target Long
Term Incentive
—
—
36
9
11
5
16
12
—
—
Equity Deferral
The Equity Deferral serves as a long-term compensa-
tion instrument 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 is
three years from vesting. The plan also seeks to pre-
vent inadequate risk-taking.
The Annual Bonus is capped at 180% of the target An-
nual Bonus (until 2017: 200% of the annual gross sal-
ary). A minimum of 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 achieve-
ments and the share price is estimated (the latter on
basis of market quotes). In case of major changes in
external factors such as oil and gas prices the Remu-
neration Committee 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 Bo-
nus. The granted shares after deduction of taxes are
transferred to a trustee deposit, managed by the Com-
pany, to be held for three years.
In 2021 expenses amounting to EUR 3 mn were rec-
orded with a corresponding increase in equity (2020:
EUR 1 mn).
196
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Personal investment held in shares1
Active Executive Board members
Stern2
Pleininger
Florey
Skvortsova
van Koten3
Former Executive Board members
Seele
Gangl4
Leitner
Total — Executive Board
Other senior managers
Total personal investment
12/31/2021
12/31/2020
12/31/2019
12/31/2018
—
53,711
46,975
1,166
—
92,632
16,147
9,344
219,975
297,385
517,360
—
50,166
30,009
—
—
99,309
12,527
15,244
207,255
326,030
533,285
—
45,032
24,351
—
—
91,974
10,730
44,211
216,298
368,268
584,566
—
28,511
13,401
—
—
70,890
—
65,245
178,047
299,997
478,044
1 Personal investment held in shares refer to open LTI plans as well as to Equity Deferral if shares are held in the OMV trustee deposit.
2 Alfred Stern joined the Executive Board effective April 1, 2021.
3 Martijn Arjen van Koten joined the Executive Board effective July 1, 2021.
4 Thomas Gangl took part in LTIP 2018 as a senior manager. In 2019 he took part in LTIP as both senior manager as well as Executive Board member. In LTIP
2020 he took part as Executive Board member. In 2021 he took part as both Executive Board member as well as senior manager.
Total Expense
In 2021 Borealis implemented a transitional LTI plan for
2021 and 2022 in order to bridge the cash gaps, that
arise from migrating to the new three year plan, men-
tioned in the section ‘Long Term Incentive (LTI) plans’.
Transitional LTIP allowances for 2021 and 2022 are
measuring similar KPI’s as the three year plan for that
specific year only and are settled in cash.
Expenses related to all share based payment transac-
tions are summarized in the below table.
Expenses related to share based payment transactions1
In EUR mn
Cash settled
Equity settled
Total expenses arising from share based payment transactions
1 Excluding incidental wage costs
2021
2020
28
10
38
(7)
2
(5)
197
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Other Information
33 Average number of employees
Average number of employees1
OMV Group excluding OMV Petrom Group and Borealis Group
OMV Petrom Group
Borealis Group2
OMV Group
2021
2020
6,939
8,852
7,753
23,544
7,471
11,790
1,813
21,074
1 Calculated as the average of the month’s end numbers of employees during the year
2 Due to the acquisition as of October 29, 2020, the average of the month´s end numbers for October – December has been taken into account for the calculation
in 2020.
The decrease of employees in OMV Group excluding
OMV Petrom Group and Borealis Group was impacted
by the sale of Gas Connect Austria. See Note 3 –
Changes in group structure – for further details.
The decrease related to OMV Petrom Group was a re-
sult of divestments, outsourced activities and of reor-
ganization and restructuring programs as a conse-
quence of process optimization and cost efficiency
measures.
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 international network)
In EUR mn
2021
2020
Audit of Group accounts and year-end audit
Other assurance services
Tax advisory services
Other services
Total
Group auditor
3.55
0.53
0.56
0.07
4.70
thereof
Ernst&Young
Wirtschafts-
prüfungsgesell-
schaft m.b.H
1.51
0.31
—
0.01
1.84
thereof
Ernst&Young
Wirtschafts-
prüfungsgesell-
schaft m.b.H
1.64
0.56
—
—
2.20
Group auditor
3.57
0.89
0.10
1.15
5.70
35 Related parties
Under IAS 24, details of relationships with related par-
ties and related enterprises not included in consolida-
tion 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), Vi-
enna, holds an interest of 31.5% and Mubadala Petro-
leum 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.
198
In 2021, there were following arm's-length supplies of
goods and services (including the granting of licences
for the use of technologies of the Group) 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.
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Transactions with equity-accounted investments – Sales and Receivables
In EUR mn
Abu Dhabi Oil Refining Company
Abu Dhabi Polymers Company Limited (Borouge)
ADNOC Global Trading LTD
Bayport Polymers LLC
Borealis AG
Borouge Pte. Ltd.
EEX CEGH Gas Exchange Services GmbH
Erdöl-Lagergesellschaft m.b.H.
GENOL Gesellschaft m.b.H.
Kilpilahden Voimalaitos Oy
Société d'Intérêt Collectif Agricole par Actions Simplifiée de
Gouaix (SICA de Gouaix)
Société d'Intérêt Collectif Agricole Laignes Agrifluides (SICA
Laignes Agrifluides)
Trans Austria Gasleitung GmbH1
Total
2021
2020
Sales and
other income
Trade
receivables
Sales and
other income
Trade
receivables
3
108
3
6
—
331
1
43
124
4
1
7
4
635
2
40
1
1
—
71
0
0
17
0
—
1
—
134
4
16
1
2
897
40
1
51
93
0
—
—
10
1,116
1
22
1
1
—
37
0
0
13
0
—
—
1
78
1 Trans Austria Gasleitung GmbH was sold as of May 31, 2021, as part of the Gas Connect Austria disposal group.
Transactions with equity-accounted investments – Purchases and Payables
In EUR mn
2021
2020
Purchases
and services
received
Trade
payables
Purchases
and services
received
Trade
payables
Abu Dhabi Polymers Company Limited (Borouge)
Borealis AG
Borouge Pte. Ltd.
Chemiepark Linz Betriebsfeuerwehr GmbH1
Deutsche Transalpine Oelleitung GmbH
EPS Ethylen-Pipeline-Süd GmbH & Co KG
Erdöl-Lagergesellschaft m.b.H.
GENOL Gesellschaft m.b.H.
Kilpilahden Voimalaitos Oy
Neochim AD2
OJSC Severneftegazprom
PetroPort Holding AB
Trans Austria Gasleitung GmbH3
Total
7
—
494
4
29
3
81
0
74
10
127
3
11
843
—
—
108
0
2
—
63
—
—
0
14
0
—
188
0
31
51
1
27
2
68
1
0
0
133
1
23
338
1 Chemiepark Linz Betriebsfeuerwehr GmbH was reclassified to held for sale in 2021, as part of the nitrogen business unit of Borealis.
2 Neochim AD was reclassified to held for sale in 2021, as part of the nitrogen business unit of Borealis.
3 Trans Austria Gasleitung GmbH was sold as of May 31, 2021, as part of the Gas Connect Austria Disposal Group.
—
—
64
0
2
—
27
—
0
—
12
0
2
106
199
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Dividends distributed from equity-accounted investments
In EUR mn
Abu Dhabi Petroleum Investments LLC
Abu Dhabi Polymers Company Limited (Borouge)
Bayport Polymers LLC
Borealis AG
Borouge Pte. Ltd.
Deutsche Transalpine Oelleitung GmbH
EEX CEGH Gas Exchange Services GmbH
OJSC Severneftegazprom
Pearl Petroleum Company Limited
Società Italiana per l'Oleodotto Transalpino S.p.A.
Trans Austria Gasleitung GmbH1
Dividend distributed from equity-accounted investments
1 Trans Austria Gasleitung GmbH was sold as of May 31, 2021, as part of the Gas Connect Austria Disposal Group.
Other balances with equity-accounted investments
In EUR mn
Kilpilahden Voimalaitos Oy
Bayport Polymers LLC
Renasci N.V.
SMATRICS GmbH & Co KG1
Loan receivables
Kilpilahden Voimalaitos Oy
Renasci N.V.
Neochim AD2
Advance payments
Freya Bunde-Etzel GmbH & Co. KG
Other receivables
Abu Dhabi Polymers Company Limited (Borouge)
Bayport Polymers LLC
Contract assets
C2PAT GmbH & Co KG
Bayport Polymers LLC
Other payables
Contract liabilities Erdöl-Lagergesellschaft m.b.H.
2021
—
1,876
21
—
42
1
1
17
30
1
9
1,999
2021
18
987
12
—
1,017
12
10
—
22
8
8
8
7
16
1
—
1
120
2020
5
—
21
108
—
1
1
14
25
1
16
191
2020
17
736
—
2
754
13
—
3
16
7
7
1
7
7
—
143
143
144
1 SMATRICS GmbH & CO KG was sold as of September 30, 2021.
2 Neochim AD was reclassified to held for sale in 2021, as part of the nitrogen business unit of Borealis.
The loan receivables (including the related accrued in-
terests) towards Bayport Polymers LLC stemmed from
drawdowns under a member loan agreement with a to-
tal value of EUR 1,236 mn. The undrawn financing
commitments provided to Bayport Polymers LLC
amounted to EUR 251 mn as of December 31, 2021
(December 31, 2020: EUR 407 mn).
At the reporting date, financing commitments towards
Kilpilahden Voimalaitos Oy amounted to EUR 16 mn
(December 31, 2020: EUR 16 mn). The entitlements
are dependent on the fulfilment of specific events, as
defined in the underlying contracts.
At year end 2021, the Group had further financing com-
mitments to grant a convertible loan towards Renasci
N.V. amounting to EUR 12 mn. The entitlements are
dependent on the fulfilment of certain conditions of utili-
sation, as defined in the underlying contract.
The contract liabilities towards Erdöl-Lagergesellschaft
m.b.H. are related to a long-term contract for rendering
of services.
200
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
In 2020 the other payables towards Bayport Polymers
LLC were related to an equity contribution.
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. OMV has transactions at
arm´s length in the normal course of business mainly
with Österreichische Post Aktiengesellschaft, VER-
BUND AG, Österreichische Bundesbahnen-Holding Ak-
tiengesellschaft, Bundesbeschaffung GmbH and their
subsidiaries.
As per May 31, 2021 OMV closed the transaction to
sell its 51% stake in Gas Connect Austria to VERBUND
AG. For more details see Note 3 – Changes in group
structure. Moverover, as per September 30, 2021 OMV
finalized the sale of its 40% share in SMATRICS GmbH
& Co KG and its 40% share in E-Mobility Provide Aus-
tria GmbH to VERBUNDAG. Furthermore, OMV
founded together with Lafarge Perlmooser GmbH and
VERBUND Energy4Business GmbH a joint venture for
the joint planning and construction of a full-scale plant
by 2030 to capture CO2 and process it into synthetic
fuels, plastics and other chemicals. Additionally, OMV
and VERBUND AG have a cooperation agreement re-
lated to the photovoltaic plant in Lobau, Austria. In
2020 the strategic energy cooperation between OMV
and VERBUND AG have started up the ground-
mounted photovoltaic plant in Schönkirchen-Reyers-
dorf, Austria.
Via MPPH, OMV has an indirect relationship with the
Emirate of Abu Dhabi, which is, together with the com-
panies under control of Abu Dhabi also considered a
related party. In 2021, there were supplies of goods
and services for instance to Compañía Española de
Petróleos, S.A. (CEPSA), Abu Dhabi National Oil Com-
pany (ADNOC), NOVA Chemicals Corporation (NOVA)
and ADNOC Trading Limited. On October 29, 2020
OMV acquired an additional 39% share in Borealis AG
from Mubadala Investment Company (Abu Dhabi). Fur-
thermore, OMV cooperates with ADNOC in several Ex-
ploration & Production arrangements and closed strate-
gic equity partnerships with ADNOC covering both the
ADNOC Refining business and a Trading Joint Ven-
ture.
201
OMV ANNUAL REPORT 2021 / 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, 2021
former members of the
Executive Board
2021
Short term benefits
Fixed (base salary)
Fixed (one-off payment)
Variable (cash bonus)1
Benefits in kind
Post employment benefits
Pension fund
contributions
Termination benefits
Share based benefits
Variable
(Equity Deferral 2020)
Variable (LTIP 2018)2
Remuneration received by
the Executive Board
Stern3 Pleininger
1.77
0.69
0.69
—
—
0.01
0.18
0.18
—
—
—
—
0.75
—
1.01
0.01
0.19
0.19
—
1.09
0.32
0.76
Florey Skvortsova van Koten7 Seele8 Gangl9 Leitner12
—
1.38
2.55
0.30
0.65
1.77
0.76
—
0.97
0.054
0.19
0.19
—
0.90
0.27
0.63
0.58
0.545
0.16
0.106
0.14
0.14
—
0.11
0.11
—
Total
9.12
4.30
0.54
4.09
0.20
1.08
0.14
—
0.50
0.00
0.03
—
—
—
—
—
0.03
0.0210
0.20
—
—
1.08
0.02
0.41
5.17
0.29
—
—
0.01
0.07
0.07
—
—
1.10
—
1.44
0.01
0.28
0.28
—
2.48
—
—
0.40
2.08
0.20
—11
—
0.41
1.30
3.88
0.87
3.05
2.86
1.63
0.37
5.31
0.90
0.41
15.39
1 The variable component relates to target achievement in 2020, for which bonuses were paid out in 2021 and included 50% of the cash payments due in 2020
under the Annual Bonus 2019 for the active Executive Board members in 2020 which were postponed to January 2021.
2 Including 50% of the cash payments due in 2020 under the LTIP 2017 for the active Executive Board members in 2020 (for the cash portion, if applicable) which
have been postponed to January 2021.
3 Alfred Stern joined the Executive Board effectively April 1, 2021.
4 Including schooling costs and related taxes
5 Elena Skvortsova received a one-off payment in settlement of the variable remuneration demonstrably forfeited as a result of her move from Linde Group to
OMV AG.
6 Including moving and rental costs and related taxes
7 Martijn van Koten joined the Executive Board effectively July 1, 2021.
8 Rainer Seele resigned from the Executive Board effectively August 31, 2021 and his contract ends on June 30, 2022.
9 Thomas Gangl resigned from the Executive Board effectively March 31, 2021.
10 Thomas Gangl received an annual leave compensation payment amounting to EUR 0.02 mn.
11 Thomas Gangl received a cash payment in the amount of EUR 0.11 mn based on the Senior Manager LTIP 2018.
12 Manfred Leitner resigned from the Executive Board effectively June 30, 2019.
202
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Remuneration received by the Executive Board
In EUR mn
2020
active members of the Executive
Board as of December 31, 2020
Seele Pleininger Florey Gangl6 Skvortsova8
0.50
2.27
1.30
0.79
1.34
former members of the
Executive Board
Leitner10 Davies11 Roiss12
—
1.12
—
1.10
0.75
0.70
0.58
0.31
—
0.333
0.83
0.01
0.28
—
0.58
0.01
0.19
—
0.56
0.054
0.18
0.28
0.90
0.41
0.49
0.19
0.52
0.18
0.53
0.29
0.24
0.28
0.255
0.10
—7
—
0.20
0.01
0.14
0.14
0.10
—
—
0.199
0.08
0.08
—
—
—
—
1.12
—
—
—
0.82
0.28
0.55
Total
7.33
3.44
0.33
3.29
0.27
0.86
0.86
3.20
1.35
1.85
—
—
—
—
—
—
0.06
—
0.06
—
—
—
—
—
—
0.27
—
0.27
Short term benefits
Fixed (base salary)
Fixed (functional
allowance)
Variable (cash bonus)1
Benefits in kind
Post employment benefits
Pension fund
contributions
Share based benefits
Variable (Equity Deferral
2019)
Variable (LTIP 2017)2
Remuneration received by
the Executive Board
3.45
2.05
2.01
1.03
0.58
1.94
0.06
0.27
11.39
1 50% of the cash payments due in 2020 under the Annual Bonus 2019 for the active Executive Board members were postponed to January 2021.
2 50% of the cash payments due in 2020 under the LTIP 2017 for the active Executive Board members (for the cash portion, if applicable) have been postponed to
January 2021.
3 Rainer Seele received a payment for the interim responsibility for "Marketing and Trading" until February 28, 2020.
4 Including schooling costs and related taxes
5 Including 50% of LTIP 2017 cash payments and additional value of transferred shares to fulfill the shareholding requirement.
6 Thomas Gangl joined the Executive Board effectively July 1, 2019.
7 Thomas Gangl received a cash payment in the amount of EUR 0.06 mn based on the Senior Manager LTIP 2017.
8 Elena Skvortsova joined the Executive Board effectively June 15, 2020.
9 Including moving and rental costs and related taxes
10 Manfred Leitner resigned from the Executive Board effectively June 30, 2019.
11 David C. Davies resigned from the Executive Board effectively July 31, 2016.
12 Gerhard Roiss resigned from the Executive Board effectively June 30, 2015.
203
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Remuneration received by top executives (excl. Executive Board)1
In EUR mn
Salaries and bonuses
Pension fund contribution
Other post-employment benefits including termination benefits
Share-based benefits
Other long term benefits
Remuneration received by top executives (excl. Executive Board)2
2021
2020
25.8
1.3
2.2
3.5
1.8
34.6
19.0
1.1
0.4
3.7
0.0
24.2
1 In 2021 there were on average 43 top executives (2020: 40) based on the months of service in the Group.
2 Including remuneration of Alfred Stern and Martijn van Koten in their function as Executive Board members in Borealis Group
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 ex-
penses insurance. A large number of other OMV em-
ployees 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 2021, remuneration expenses for the Supervisory
Board amounted to EUR 0.6 mn (2020: EUR 0.6 mn).
36 Unconsolidated structured entities
OMV is selling trade receivables in a securitization pro-
gram to Carnuntum DAC, based in Dublin, Ireland. In
2021, OMV transferred trade receivables amounting in
total to EUR 4,573 mn to Carnuntum DAC (2020:
EUR 3,458 mn).
As of December 31, 2021, OMV held seller participa-
tion notes amounting to EUR 95 mn (2020:
EUR 88 mn) and complementary notes amounting to
EUR 89 mn (2020: nil) in Carnuntum DAC shown in
other financial assets. As of December 31, 2021, the
maximum exposure to loss from the securitization
transaction was EUR 110 mn (2020: EUR 80 mn).
The seller participation notes are senior to a loss re-
serve and a third party investor participation. The com-
plementary notes are senior to seller participation notes
and are of the same seniority as the senior notes is-
sued 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 dis-
count was recognized in profit or loss and amounted in
total to EUR 29 mn in 2021 (2020: EUR 21 mn). Inter-
est income on the notes held in Carnuntum DAC
amounted to EUR 2 mn in 2021 (2020: EUR 2 mn). In
addition, OMV received a service fee for the debtor
management services provided for the receivables
sold.
204
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
37 Subsequent events
On January 20, 2022, the government bill for the Eco
Social Tax Reform Act passed the third reading of the
National Parliament of Austria. The bill stipulates the
reduction in corporate income tax rate from 25% to
24% in 2023 and further to 23% from 2024 onward.
Had the new tax rates been substantially enacted as of
December 31, 2021, the Group’s deferred tax assets
would have decreased by EUR 42 mn.
On February 2, 2022, Borealis Group has received a
binding offer from EuroChem for the acquisition of Bo-
realis’ nitrogen business including fertilizer, melamine
and technical nitrogen products. The offer values the
business on an enterprise value basis at EUR 455 mn.
Borealis Group will initiate mandatory information and
consultation procedures with employee representa-
tives. The transaction is also subject to certain closing
conditions and regulatory approvals, with closing ex-
pected for the second half of 2022. Borealis Group will
continue to focus on its core activities of providing inno-
vative and sustainable solutions in the fields of polyole-
fins and base chemicals and on the transformation to-
wards a circular economy.
On February 15, 2022, the Iraqi Federal Supreme
Court passed the Judgment that the Kurdistan Regional
Oil & Gas Law (KROGL) of 2007 violates certain Arti-
cles of Iraq’s Constitution of 2005. The Judgment con-
tradicts earlier analysis and also rulings. The Judgment
challenges Kurdistan Regional Government’s (KRG’s)
authority to enter into Oil and Gas Contracts with for-
eign parties and grants the Federal Ministry of Oil a
right to follow up with foreign parties the way forward
for these Contracts entered into. It is unclear how the
Federal Government and KRG will proceed in respect
of the above and settle this dispute. OMV is in process
of assessing the matter, and it is too early to determine
any implications on OMV’s 10% shareholding in Pearl
Petroleum Company Limited.
On February 21, 2022, President Vladimir V. Putin of
Russia signed decrees recognizing two pro-Russian
breakaway regions in eastern Ukraine. Consequently,
the European Union (EU), the United States of America
(US) and the United Kingdom (UK) responded with tar-
geted sanctions on Russian individuals and the Rus-
sian financial system. As a direct consequence, Ger-
many halted the certification process of Nord Stream 2.
One day later, the US announced sanctions targeting
Nord Stream 2 AG and its corporate officers.
On February 24, 2022, Russia started a broad offen-
sive in Ukraine with simultaneous attacks across vari-
ous areas. The EU, the US and the UK imposed further
sanctions including financing restrictions targeting cer-
tain Russian banks and state-owned companies like
Gazprom. The EU announced the resolution on enact-
ment of additional and more severe sanctions for Rus-
sia, specifically targeting inter alia the Russian banking
system, Russian individuals and the energy and
transport sectors. Gas supplies continued without inter-
ruption in line with the existing contractual obligations.
Russia continued the widespread attacks across
Ukraine and intensified the attacks during the following
days. The EU imposed sanctions against Vladimir Putin
and Sergey Lavrov and announced further sanctions in-
cluding but not limited to provision of loans and credits
to certain listed banks and companies some of which
are active in the oil business (like Gazprom Neft). The
EU, the US and the UK decided to exclude seven
banks from the SWIFT-System.
On March 1, 2022, the Executive Board of OMV has
decided to not further pursue negotiations with Gaz-
prom on the potential acquisition of a 24.98% interest in
the Achimov 4A/5A phase development in the Urengoy
gas and condensate field and to terminate the Basic
Sale Agreement dated October 3, 2018. Furthermore,
OMV will review its involvement in the Nord Stream 2
Pipeline.
In light of further sanctions, Russia announced counter-
sanctions, in particular restrictions on dividend pay-
ments to foreign shareholders in Russian companies.
On March 4, 2022, the US, the EU and the UK imposed
further property blocking sanctions on individuals and
Russia enacted countersanctions including inter alia re-
strictions on sales of shares open or closed joint-stock
companies. Russia also announced property blocking
sanctions against foreign individuals and companies.
On March 5, 2022, the Executive Board of OMV took
the decision not to pursue any future investments in
Russia. The 24.99% interest in Yuzhno Russkoye will
be subject to a strategic review. This review comprises
all options including possibilities to divest or exit. As a
consequence, OMV expects non-cash value adjust-
ments of EUR 0.5 – 0.8 bn (as of December 31, 2021).
In addition, OMV will recognize a non-cash value ad-
justment charge of EUR 987 mn (loan plus accrued in-
205
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
terest as of December 31, 2021) due to the fact that re-
ceivables from Nord Stream 2 AG may be unrecovera-
ble.
Overall, this means a non-cash value adjustment of
EUR 1.5 to 1.8 billion that will impact the first quarter of
2022.
OMV continues to monitor the escalating crisis between
Russia and Ukraine and regularly reviews the potential
further impact on our business activities and assets.
While OMV does not have operations in Ukraine, OMV
has business relationships with Russian entities and
shareholdings in Russia.
As of December 31, 2021, OMV reported the following
net asset values related to Russian operations:
Net assets
In EUR mn
Nord Stream 2 Loan
Reserve Redetermination Rights1
JSC GAZPROM YRGM Development1
OJSC SEVERNEFTEGAZPROM1
Total Net Assets
1 related to Yuzhno Russkoye gas field in West Sibiria
2021
987
432
650
117
2,185
Disruptions in Russian commodity flows to Europe
could result in further increases in European energy
prices and accelerate the risk of cost inflation. OMV im-
ported on average 7.34 TWh per month of natural gas
under a long-term supply agreement with Gazprom to
the German and Austrian gas hubs in 2021. From to-
day’s point of view, OMV does not expect natural gas
exports from Russia to stop. In the unlikely event of
short-term gas supply disruptions from Russia, OMV
can use the remaining gas in storage to supply custom-
ers and has access to other liquid gas market hubs in
Europe. OMV has formed a Group Emergency Man-
agement Team (GEMT). This internal unit spans all rel-
evant business areas and functions. The GEMT moni-
tors, analyses and constantly assesses the latest situa-
tion in order to take any necessary decisions quickly
and implement any measures without delay.
206
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
38 Direct and indirect investments of OMV Aktiengesellschaft
Changes in consolidated group
Name of company
Exploration & Production
Energy Petroleum Taranaki Limited
OMV GSB LIMITED
OMV NZ Services Limited
OMV Taranaki Limited
Petroleum Infrastructure Limited
Taranaki Offshore Petroleum Company of New Zealand
KOM MUNAI LLP
TASBULAT OIL CORPORATION LLP
SapuraOMV Upstream (PM) Inc.
OMV PETROM GEORGIA LLC
OMV (WEST AFRICA) Exploration & Production GmbH in
Liqu.
OMV East Abu Dhabi Exploration GmbH
Registered Office
Type of Change1
Effective date
Wellington
Wellington
Wellington
Wellington
Wellington
Wellington
Aktau
Aktau
Nassau
Tbilisi
Vienna
Deconsolidation (M)
Deconsolidation (M)
Deconsolidation (M)
Deconsolidation (M)
Deconsolidation (M)
Deconsolidation (M)
Deconsolidation
Deconsolidation
Deconsolidation
First consolidation
Deconsolidation (L)
January 1, 2021
January 1, 2021
January 1, 2021
January 1, 2021
January 1, 2021
January 1, 2021
May 14, 2021
May 14, 2021
August 1, 2021
August 31, 2021
December 16, 2021
Vienna
Deconsolidation (I)
December 31, 2021
Refining & Marketing
OMV Retail Deutschland GmbH
AGGM Austrian Gas Grid Management AG
FE-Trading trgovina d.o.o.
GAS CONNECT AUSTRIA GmbH
Trans Austria Gasleitung GmbH2
OMV Kraftwerk Haiming GmbH in Liqu.
E-Mobility Provider Austria GmbH2
SMATRICS GmbH & Co KG2
Avanti GmbH
Haramidere Depoculuk Anonim Şirketi
Enerco Enerji Sanayi Ve Ticaret A.Ş.2
Chemicals & Materials
CERHA HEMPEL Leilani Holding GmbH3
Renasci N.V.2
C2PAT GmbH2
C2PAT GmbH & Co KG2
Borealis US Holdings LLC
Burghausen
Vienna
Ljubljana
Vienna
Vienna
Haiming
Vienna
Vienna
Anif
Istanbul
Istanbul
First consolidation
Deconsolidation
Deconsolidation (M)
Deconsolidation
Deconsolidation
Deconsolidation (L)
January 1, 2021
May 31, 2021
May 31, 2021
May 31, 2021
May 31, 2021
August 31, 2021
Deconsolidation September 30, 2021
Deconsolidation September 30, 2021
October 1, 2021
December 3, 2021
December 30, 2021
Deconsolidation (M)
Deconsolidation
Deconsolidation
Vienna
Ghent
Vienna
Vienna
Port Murray
First consolidation (A)
First consolidation (A)
First consolidation
First consolidation
Deconsolidation (L)
June 22, 2021
June 24, 2021
August 6, 2021
October 8, 2021
December 7, 2021
1 “First consolidation” refers to newly formed or existing subsidiaries, while “First consolidation (A)” indicates the acquisition of a company. Companies marked with
“Deconsolidation” have been sold. Companies marked with “Deconsolidation (I)” have been deconsolidated due to immateriality, while those marked with “De-
consolidation (L)” were deconsolidated following a liquidation process. “Deconsolidation (M)” refers to subsidiaries that were deconsolidated following a merger
into another Group company.
2 Company consolidated at-equity (in case of divestment, at-equity consolidation until reclassification to held for sale)
3 Renamed to Borealis Circular Solutions Holding GmbH
For further information on acquisitions and disposals
refer to Note 3 – Changes in group structure.
207
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Number of consolidated companies
January 1
Included for the first time
Change in consolidation type
Deconsolidated during the year
December 31
thereof domiciled and operating abroad
thereof domiciled in Austria and operating abroad
2021
2020
Full
consolidation
Equity
consolidation
Full
consolidation
Equity
consolidation
151
3
—
(18)
136
93
18
23
3
—
(4)
22
16
—
111
441
—
(4)
151
105
19
19
5
(1)1
—
23
16
—
1 Represents the previously at-equity consolidated Borealis AG; since October 29, 2020 Borealis AG is fully consolidated, which led to multiple companies of Bore-
alis Group being shown in line “Included for the first time”.
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-
dation1
Equity
interest
in % as of
December
31, 2021
Equity
interest
in % as of
December
31, 2020
NZEA
NZEA
OPLNZ
NZEA
OSLNZ
OPLNZ
OMVEP
PETROM
EPTLNZ
EPILNZ
EPHNZ
NZEA
TOPNZ
OMVEP
OMVEP
OMVEP
OMVEP
OMV AG
OMVEP
OAUST
OAUST
OMVEP
PETEX
OMVEP
OMVEP
OMV AG
OMVEP
NZEA
OMVEP
OMVEP
OMVEP
C
C
C
C
C
C
NC
AEA
C
C
C
C
C
NC
NC
NC
C
C
NC
C
NC
C
C
C
NC
100.00
100.00
100.00
—
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
38.75
20.00
18.75
16.75
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
Exploration & Production
Energy Infrastructure Limited, Wellington
Energy Petroleum Holdings Limited, Wellington (EPHNZ)
Energy Petroleum Investments Limited, Wellington (EPILNZ)
Energy Petroleum Taranaki Limited, Wellington (EPTLNZ)
JSC GAZPROM YRGM Development, St. Petersburg2
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 AUSTRALIA PTY LTD, Perth (OAUST)
OMV Austria Exploration & Production GmbH, Gänserndorf (OEPA)
OMV Barrow Pty Ltd, Perth
OMV Beagle Pty Ltd, Perth
OMV (Berenty) Exploration GmbH, Vienna
OMV Bina Bawi GmbH, Vienna
OMV Block 70 Upstream GmbH, Vienna
OMV East Abu Dhabi Exploration GmbH, Vienna3
OMV Exploration & Production GmbH, Vienna (OMVEP)
OMV EXPLORATION & PRODUCTION LIMITED, Douglas
OMV GSB LIMITED, Wellington
OMV (IRAN) onshore Exploration GmbH, Vienna
OMV Jardan Block 3 Upstream GmbH, Vienna
OMV (Mandabe) Exploration GmbH, Vienna
208
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Parent
company
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 (NORGE) AS, Stavanger
OMV NZ Production Limited, Wellington (OPLNZ)
OMV NZ Services Limited, Wellington (OSLNZ)
OMV OF LIBYA LIMITED, Douglas
OMV Offshore Bulgaria GmbH, Vienna
OMV Offshore Morondava GmbH, Vienna
OMV Offshore (Namibia) GmbH, Vienna (ONAFRU)
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 Petroleum Exploration GmbH, Vienna (PETEX)
OMV Petroleum Pty Ltd, Perth
OMV PETROM GEORGIA LLC, Tbilisi
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 in Liqu., Vienna
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 GmbH, Burghausen
Petroleum Infrastructure Limited, Wellington
PETROM EXPLORATION & PRODUCTION LIMITED, Douglas
Preussag Energie International GmbH, Burghausen
SapuraOMV Block 30, S. de R.L. de C.V., Mexico City
OMVEP
OMVEP
OMVEP
ONAFRU
OMVEP
OMVEP
NZEA
NZEA
OMVEP
PETROM
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
NZEA
PETROM
OEPA
OMVEP
NZEA
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OUPI
OMVEP
NZEA
PETROM
OMVEP
SapuraOMV Upstream (Americas) Sdn. Bhd., Seri Kembangan
(SEAMMY)
SapuraOMV Upstream (Australia) Sdn. Bhd., Seri Kembangan
(SEAUMY)
SapuraOMV Upstream (Holding) Sdn. Bhd., Kuala Lumpur
(SEUPMY)
SapuraOMV Upstream JV Sdn. Bhd., Seri Kembangan
SapuraOMV Upstream (Malaysia) Inc., Nassau (SEMYBH)
SapuraOMV Upstream (Mexico) Sdn. Bhd., Seri Kembangan
(SEMXMY)
SapuraOMV Upstream (NZ) Sdn. Bhd., Seri Kembangan
(SENZMY)
SapuraOMV Upstream (Oceania) Sdn. Bhd., Seri Kembangan
(SEOCMY)
SEUPMY
SEMXMY
SEUPMY
SEOCMY
SOUPMY
SENZMY
SESABH
SEAMMY
SEOCMY
SEUPMY
Type of
consoli-
dation1
NC
C
C
C
C
C
C
C
C
C
C
C
NC
C
C
NC
NC
C
NC
C
NC
C
C
C
NC
C
C
C
C
NC
AEA
NC
C
NC
C
C
C
C
C
NC
C
C
C
C
Equity
interest
in % as of
December
31, 2021
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
10.00
100.00
99.99
100.00
99.00
1.00
100.00
Equity
interest
in % as of
December
31, 2020
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
100.00
10.00
100.00
100.00
99.99
100.00
99.00
1.00
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
209
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Parent
company
SEMYBH
SEMYBH
OMVEP
SEUPMY
SEAUMY
OPLNZ
Type of
consoli-
dation1
C
C
C
C
C
C
PETROM
C
Equity
interest
in % as of
December
31, 2021
100.00
50.00
100.00
100.00
Equity
interest
in % as of
December
31, 2020
100.00
100.00
50.00
100.00
100.00
100.00
100.00
OMVRM
OMVRM
OMVRM
OGG
OGG
OMVRM
OMVRM
OMVRM
FETRAT
OMVRM
OMVRM
OMVRM
BORAAG
OGI
OMVD
OHUN
PDYNHU
HUB
OMVRM
OMVRM
OMVRM
SLOVJA
OGSG
OGI
OMVRM
OMVRM
GASTR
OMVRM
SWJS
OMVRM
PETROM
OMVRM
OMVRM
OMVD
OMVRM
OMV AG
ECOGAS
ECOGAS
OMVRM
ECOGAS
AEA
AEJ
AEA
NC-I
C
NC-I
NC-I
C
C
NC-I
NC
C
AEA
C
AEA
AEJ
AEA
AEA
C
AEA
C
AEA
C
NC
NC-I
C
C
C
C
C
C
C
C
C
C
15.00
25.00
15.00
33.33
47.19
100.00
26.00
50.00
50.00
65.00
32.26
48.28
51.72
49.00
55.60
39.99
29.00
100.00
25.10
100.00
99.90
0.10
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
15.00
25.00
15.00
23.13
51.00
33.33
47.19
100.00
100.00
26.00
50.00
50.00
65.00
32.26
48.28
51.72
49.00
40.00
40.00
55.60
100.00
39.99
51.00
29.00
51.00
49.00
100.00
25.10
100.00
99.90
0.10
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
SapuraOMV Upstream (PM) Inc., Nassau
SapuraOMV Upstream (Sarawak) Inc., Nassau
SapuraOMV Upstream Sdn. Bhd., Seri Kembangan (SOUPMY)
SapuraOMV Upstream (Southeast Asia) Inc., Nassau (SESABH)
SapuraOMV Upstream (Western Australia) Pty Ltd, Perth
Taranaki Offshore Petroleum Company of New Zealand, Wellington
(TOPNZ)
TASBULAT OIL CORPORATION LLP, Aktau
Refining & Marketing
Abu Dhabi Oil Refining Company, Abu Dhabi
Abu Dhabi Petroleum Investments LLC, Abu Dhabi (ADPINV)
ADNOC Global Trading LTD, Abu Dhabi
AGCS Gas Clearing and Settlement AG, Vienna
AGGM Austrian Gas Grid Management AG, Vienna
Aircraft Refuelling Company GmbH, Vienna
Autobahn – Betriebe Gesellschaft m.b.H., Vienna
Avanti Deutschland GmbH, Berchtesgaden
Avanti GmbH, Anif (FETRAT)
BSP Bratislava-Schwechat Pipeline GmbH, Vienna
BTF Industriepark Schwechat GmbH, Vienna
Central European Gas Hub AG, Vienna (HUB)
Deutsche Transalpine Oelleitung GmbH, Munich
DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft., Budapest
EEX CEGH Gas Exchange Services GmbH, Vienna
E-Mobility Provider Austria GmbH, Vienna
Enerco Enerji Sanayi Ve Ticaret A.Ş., Istanbul
Erdöl-Lagergesellschaft m.b.H., Lannach4
FE-Trading trgovina d.o.o., Ljubljana
Freya Bunde-Etzel GmbH & Co. KG, Bonn
GAS CONNECT AUSTRIA GmbH, Vienna (OGG)
GENOL Gesellschaft m.b.H., Vienna
Haramidere Depoculuk Anonim Şirketi, Istanbul
KSW Beteiligungsgesellschaft m.b.H., Vienna (SWJS)
KSW Elektro- und Industrieanlagenbau Gesellschaft m.b.H., Feld-
kirch
OMV – International Services Ges.m.b.H., Vienna
OMV BULGARIA OOD, Sofia
OMV Česká republika, s.r.o., Prague
OMV Deutschland Services GmbH, Burghausen (OMVDS)
OMV Enerji Ticaret Anonim Şirketi, Istanbul (GASTR)
OMV Gas Logistics Holding GmbH, Vienna (OGI)
OMV Gas Marketing & Trading Belgium BVBA, Brussels
OMV Gas Marketing & Trading Deutschland GmbH, Düsseldorf
(ECONDE)
OMV Gas Marketing & Trading GmbH, Vienna (ECOGAS)
OMV Gas Marketing & Trading Hungária Kft., Budapest
210
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
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
OMV Gaz Iletim A.S., Istanbul
OMV Hungária Ásványolaj Korlátolt Felelösségü Társaság, Buda-
pest (OHUN)
OMV Kraftwerk Haiming GmbH in Liqu., Haiming
OMV PETROM Aviation SRL, Otopeni
OMV PETROM GAS SRL, Bucharest
OMV PETROM MARKETING SRL, Bucharest (ROMAN)
OMV Refining & Marketing Middle East & Asia GmbH, Vienna
OMV Retail Deutschland GmbH, Burghausen
OMV SLOVENIJA trgovina z nafto in naftnimi derivati, d.o.o., Koper
(SLOVJA)
OMV Slovensko s.r.o., Bratislava
OMV SRBIJA d.o.o., Belgrade
OMV Supply & Trading AG, Baar
OMV Supply & Trading Italia S.r.l., Trieste
OMV Supply & Trading Limited, London (OTRAD)
OMV Supply & Trading Singapore PTE LTD., Singapore
OMV Switzerland Holding AG, Zug
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
South Stream Austria GmbH, Vienna
SuperShop Marketing GmbH, Budapest
TGN Tankdienst-Gesellschaft Nürnberg GbR, Nuremberg
Trans Austria Gasleitung GmbH, Vienna5
Transalpine Ölleitung in Österreich Gesellschaft m.b.H., Matrei in
Osttirol
Chemicals & Materials
Abu Dhabi Polymers Company Limited (Borouge), Abu Dhabi
AGRIPRODUITS S.A.S., Courbevoie (BAGRFR)
AZOLOR S.A.S., Bras Sur Meuse
Bayport Polymers LLC, Pasadena6
Borealis AB, Stenungsund (BABSWE)
Borealis AG, Vienna (BORAAG)
Borealis Agrolinz Melamine Deutschland GmbH, Wittenberg
Borealis Agrolinz Melamine GmbH, Linz (BAGMAT)
Borealis Antwerpen N.V., Zwijndrecht
Parent
company
ECOGAS
OFS
OMVDS
OGI
OGI
OMVRM
OMVRM
OGI
PETROM
ROMAN
PETROM
PETROM
OMVRM
OMVD
OMVRM
OMVRM
PETROM
OMVRM
OMVRM
OMVRM
OMVRM
OTRAD
OGI
ADPINV
OHUN
PETROM
OMVRM
OMVRM
OMVRM
OMVRM
OGI
OHUN
OMVD
OGG
OMVRM
BORAAG
BCHIFR
BCHIFR
BNOVUS
BSVSWE
BHOLAT
OMVRM
OMV AG
BAGMAT
BORAAG
BPOBE
BORAAG
Equity
interest
in % as of
December
31, 2021
100.00
100.00
100.00
Type of
consoli-
dation1
C
C
C
Equity
interest
in % as of
December
31, 2020
100.00
100.00
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
NC
C
AEJ
C
C
NC-I
NC-I
AEJ
AEA
NC-I
NC-I
NC-I
AEJ
AEA
AEA
NC
NC-I
AEJ
C
C
C
C
C
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
100.00
92.25
99.96
99.96
0.04
100.00
100.00
100.00
100.00
100.00
40.00
100.00
100.00
20.00
33.33
32.26
50.00
33.33
32.26
40.00
100.00
34.00
50.00
100.00
39.00
32.67
3.33
100.00
100.00
90.00
10.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
99.99
100.00
100.00
92.25
99.96
99.96
0.04
100.00
100.00
100.00
100.00
100.00
40.00
100.00
100.00
20.00
33.33
40.00
32.26
50.00
50.00
33.33
15.53
32.26
40.00
100.00
34.00
50.00
100.00
39.00
32.67
3.33
100.00
100.00
90.00
10.00
211
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Type of
consoli-
dation1
NC
NC
C
C
NC
NC
NC
C
C
NC
C
NC
NC
C
C
C
C
C
C
NC
NC
NC
C
C
C
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
C
NC
NC
C
C
C
C
Equity
interest
in % as of
December
31, 2021
98.00
2.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
90.00
10.00
100.00
0.00
100.00
100.00
100.00
100.00
99.94
0.06
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
0.00
100.00
0.00
100.00
100.00
99.99
0.01
100.00
100.00
100.00
0.00
100.00
100.00
0.00
Equity
interest
in % as of
December
31, 2020
98.00
2.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
90.00
10.00
100.00
0.00
100.00
100.00
100.00
100.00
99.94
0.06
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
0.00
100.00
0.00
100.00
100.00
99.99
0.01
100.00
100.00
100.00
0.00
100.00
100.00
0.00
Parent
company
BORAAG
BSVSWE
BORAAG
BUS
BORAAG
BORAAG
BORAAG
BORAAG
BFR
BORAAG
BORAAG
BUS
BORAAG
BORAAG
BPOBE
BORAAG
BSVSWE
BORAAG
BABSWE
BORAAG
BORAAG
BPOBE
BORAAG
BLATAT
BLATAT
BLATAT
BLATAT
BFR
BORAAG
BLATAT
BLATAT
BLATAT
BORAAG
BLATAT
BLATAT
BLATAT
BORAAG
BCOMUS
BORAAG
BABSWE
BORAAG
BORAAG
BORAAG
BSVSWE
BORAAG
BORAAG
BORAAG
BSVSWE
BORAAG
BORAAG
BSVSWE
Borealis Argentina SRL, Buenos Aires
Borealis Asia LIMITED, Hong Kong
Borealis BoNo Holdings LLC, Port Murray (BBNHUS)6
Borealis Brasil S.A., Itatiba
BOREALIS CHEMICALS ZA (PTY) LTD, Germiston
Borealis Chile SpA, Santiago
Borealis Chimie S.A.R.L., Casablanca
Borealis Chimie S.A.S., Courbevoie (BCHIFR)
Borealis Circular Solutions Holding GmbH, Vienna (BCIRC)
Borealis Colombia S.A.S., Bogota
Borealis Compounds Inc., Port Murray (BCOMUS)
Borealis Denmark ApS, Copenhagen
Borealis Digital Studio B.V., Zaventem
Borealis Financial Services N.V., Mechelen
Borealis France S.A.S., Courbevoie (BFR)
Borealis Group Services AS, Bamble
Borealis Insurance A/S (captive insurance company), Copenhagen
Borealis ITALIA S.p.A., Monza
Borealis Kallo N.V., Kallo
Borealis L.A.T Belgium B.V., Beringen
Borealis L.A.T Bulgaria EOOD, Sofia
Borealis L.A.T Czech Republic s.r.o., Ceske Budejovice
Borealis L.A.T doo Beograd, Belgrad
Borealis L.A.T France S.A.S., Courbevoie
Borealis L.A.T GmbH, Linz (BLATAT)
Borealis L.A.T Greece Single Member P.C., Athens
Borealis L.A.T Hrvatska d.o.o., Klisa
Borealis L.A.T Hungary Kft., Budapest
Borealis L.A.T Italia s.r.l., Milan
Borealis L.A.T Polska Sp. z o.o., Warsaw
Borealis L.A.T Romania s.r.l., Bucharest
Borealis L.A.T Slovakia s.r.o., Chotin
Borealis México, S.A. de C.V., Mexico City
Borealis Plasticos. S.A. de C.V., Mexico City
Borealis Plastik ve Kimyasal Maddeler Ticaret Limited Sirketi,
Istanbul
Borealis Plastomers B.V., Geleen
Borealis Poliolefinas da América do Sul Ltda., Itatiba
Borealis Polska Sp. z o.o., Warsaw
Borealis Polymere GmbH, Burghausen
Borealis Polymers N.V., Beringen (BPOBE)
Borealis Polymers Oy, Porvoo
Borealis Polyolefine GmbH, Schwechat
212
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Borealis Produits et Engrais Chimiques du Rhin S.A.S., Ottmars-
heim
Borealis Química España S.A., Barcelona
Borealis RUS LLC, Moscow
Borealis s.r.o., Prague
Borealis Services S.A.S., Courbevoie
Borealis Sverige AB, Stenungsund (BSVSWE)
Borealis Technology Oy, Porvoo
Borealis UK LTD, Manchester
Borealis US Holdings LLC, Port Murray
Borealis USA Inc., Port Murray (BUS)
Borouge Pte. Ltd., Singapore
C2PAT GmbH, Vienna
C2PAT GmbH & Co KG, Vienna
Chemiepark Linz Betriebsfeuerwehr GmbH, Linz
DYM Solution CO., LTD, Cheonan
Ecoplast Kunststoffrecycling GmbH, Wildon
EPS Ethylen-Pipeline-Süd Geschäftsführungs GmbH, Munich
EPS Ethylen-Pipeline-Süd GmbH & Co KG, Munich
Etenförsörjning i Stenungsund AB, Stenungsund
FEBORAN EOOD, Sofia (BFEBGR)
Franciade Agrifluides S.A.S. (FASA), Blois
Industrins Räddningstjänst i Stenungsund AB, Stenungsund
KB Munkeröd 1:72, Stenungsund
Kilpilahden Voimalaitos Oy, Porvoo
mtm compact GmbH, Niedergebra
mtm plastics GmbH, Niedergebra
Neochim AD, Dimitrovgrad
Novealis Holdings LLC, Port Murray (BNOVUS)
OMV Borealis Holding GmbH, Vienna (BHOLAT)7
PetroPort Holding AB, Stenungsund
Renasci N.V., Ghent
Rosier France S.A.S., Beaumetz-Les-Loges
Rosier Nederland B.V., Sas Van Gent
Rosier S.A., Moustier (BROSBE)
Silleno Limited Liability Partnership , Nur-Sultan
Société d'Intérêt Collectif Agricole Laignes Agrifluides (SICA
Laignes Agrifluides), Monéteau
Société d'Intérêt Collectif Agricole par Actions Simplifiée de Gouaix
(SICA de Gouaix), Paris
Star Bridge Holdings LLC, Port Murray (BSBHUS)6
STOCKAM G.I.E., Grand-Quevilly
Parent
company
BFR
Type of
consoli-
dation1
C
Equity
interest
in % as of
December
31, 2021
100.00
Equity
interest
in % as of
December
31, 2020
100.00
BORAAG
BORAAG
BORAAG
BFR
BORAAG
BORAAG
BORAAG
BCOMUS
BORAAG
BORAAG
BORAAG
OMVRM
BORAAG
OMVRM
BAGMAT
BORAAG
BORAAG
OMVD
BORAAG
OMVD
BORAAG
BABSWE
BORAAG
BCHIFR
BAGRFR
BABSWE
BABSWE
BSVSWE
BORAAG
BORAAG
BORAAG
BFEBGR
BBNHUS
BSBHUS
OMVRM
BABSWE
BCIRC
BROSBE
BROSBE
BORAAG
BORAAG
BCHIFR
BAGRFR
BCHIFR
BLATAT
BUS
BCHIFR
BAGRFR
C
NC
NC
NC
C
C
C
C
C
AEA
AEJ
AEJ
NC-I
C
C
NC-I
AEA
C
C
NC-I
NC-I
NC
NC-I
C
C
AEA
C
C
AEJ
AEA
C
C
C
NC-I
NC-I
NC-I
C
NC
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
50.00
25.00
25.00
25.00
25.00
47.50
98.71
100.00
15.46
8.20
20.66
10.30
80.00
100.00
40.00
9.98
25.00
100.00
0.00
20.00
100.00
100.00
20.30
50.00
50.00
100.00
50.00
10.00
100.00
100.00
77.47
39.97
9.93
25.00
0.00
100.00
99.00
1.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
50.00
47.50
90.52
100.00
15.46
8.20
20.66
10.30
80.00
100.00
40.00
9.98
100.00
0.00
20.00
100.00
100.00
20.30
50.00
50.00
100.00
50.00
100.00
100.00
77.47
50.10
39.97
9.93
25.00
0.00
100.00
99.00
1.00
213
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Parent
company
Type of
consoli-
dation1
Equity
interest
in % as of
December
31, 2021
Equity
interest
in % as of
December
31, 2020
PETROM
NC-I
20.00
20.00
OMV AG
SNO
SNO
SNO
SNO
OMV AG
OMV AG
SNO
PETROM
OMV AG
PETROM
OMVRM
OMV AG
OMVD
OMVDS
OMVD
OMVDS
OMV AG
OMV AG
C
C
C
C
C
NC
C
C
C
C
C
C
C
C
C
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
25.00
100.00
99.99
90.00
10.00
99.99
0.01
99.99
0.01
100.00
51.01
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
25.00
100.00
99.99
90.00
10.00
99.99
0.01
99.99
0.01
100.00
51.01
Corporate & Other
ASOCIATIA ROMANA PENTRU RELATIA CU INVESTITORII, Bu-
charest
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
Assigned to multiple segments8
OMV Deutschland GmbH, Burghausen (OMVD)
OMV Deutschland Marketing & Trading GmbH & Co. KG, Burghau-
sen9
OMV Deutschland Operations GmbH & Co. KG, Burghausen
OMV Downstream GmbH, Vienna (OMVRM)
OMV PETROM SA, Bucharest (PETROM)
1 Type of consolidation:
C Consolidated subsidiary
AEA Associated companies accounted at-equity
AEJ Joint venture accounted at-equity
NC-I Other not consolidated investment; associated companies and joint ventures of relatively little importance to the assets and earnings of the consolidated
financial statements
NC Not-consolidated subsidiary; shell or distribution companies of relative insignificance individually and collectively to the consolidated financial statements
2 Economic share 99.99%
3 Type of consolidation was changed compared to 2020.
4 Despite majority interest not fully consolidated, but accounted for at-equity due to absence of control
5 Economic share 10.78%
6 Incorporated in Wilmington
7 Company name changed compared to 2020.
8 Assigned to the relevant segments in the segment reporting
9 In the 2021 financial year, OMV Deutschland Marketing & Trading GmbH & Co. KG made use of the exemption provision for the preparation of the annual finan-
cial statement and director’s report, audit and disclosure pursuant to Section 264b HGB in conjunction with Section 325 HGB. The company's exemption is men-
tioned in its notes and published in the Federal Gazette with reference to this provision and an indication of the parent company.
All the subsidiaries, joint ventures and associated
companies which are not consolidated either have low
business volumes or are distribution companies; the
total sales, net income/losses and equity of such com-
panies represent less than 1% of the Group totals.
214
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Material joint operations (IFRS 11)
Name
Nafoora – Augila1
Concession 1031
Pohokura
Nature of activities
Onshore development of hydrocarbons
Onshore development and production of hydrocarbons
Offshore production of hydrocarbons
Neptun Deep
Nawara
Offshore exploration for hydrocarbons
Onshore development and production of hydrocarbons
Principal
place of
business
Libya
Libya
New
Zealand
Romania
Tunisia
%
ownership
31.12.2021
%
ownership
31.12.2020
100
100
74
50
50
100
100
74
50
50
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
NC 1151
NC 1861
SK 408
Aasta Hansteen
Edvard Grieg
Gullfaks
Wisting2
Sarb & Umm Lulu
Ghasha
Principal place
of business
Nature of activities
Libya
Onshore development and production of hydrocarbons
Libya
Onshore development and production of hydrocarbons
Malaysia
Offshore development and production of hydrocarbons
Norway
Offshore production of hydrocarbons
Norway
Offshore production of hydrocarbons
Norway
Offshore production of hydrocarbons
Norway
Offshore exploration for hydrocarbons
Offshore development and production of hydrocarbons
Abu Dhabi
Offshore exploration for and development of hydrocarbons Abu Dhabi
%
ownership
31.12.2021
%
ownership
31.12.2020
30
24
40
15
20
19
—
20
5
30
24
40
15
20
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 The stake in the Wisting oil field was sold to Lundin Energy AB on December 17, 2021.
215
OMV ANNUAL REPORT 2021 / 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 state-
ments data, the information is based on the primary fi-
nancial statements (IFRS financial statements).
The regional structure is presented below1:
Romania and Black Sea
Bulgaria, Kazakhstan (until May 2021) and Romania
Austria
Russia
North Sea
Austria
Russia
Norway
Middle East and Africa
Iran (evaluation on hold), Kurdistan Region of Iraq, Libya, Tunisia, United
Arab Emirates, Yemen, Madagascar (until 2019)
New Zealand and Australia
Australia and New Zealand
Malaysia
SapuraOMV2
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 Zea-
land 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
There were no major acquisitions during 2021 and
2020.
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 ac-
tivities, the new entity and its subsidiaries are fully con-
solidated. 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 subsidiaries are depicted in the Malaysia region
in the upcoming tables.
Non-controlling interest
As OMV holds 51% of OMV Petrom, it is fully consoli-
dated; figures therefore include 100% of OMV Petrom
assets and results.
OMV has a share of 50% in SapuraOMV and it is fully
consolidated; figures therefore include 100% of Sapu-
raOMV assets and results.
Equity-accounted investments
OMV holds a 10% interest in Pearl Petroleum Com-
pany Limited (Middle East and Africa region).
OMV has a 24.99% interest in OJSC Severneftegaz-
prom (Russia region).
Disposals
As per May 14, 2021, OMV Petrom finalized the sale of
its 100% share in Kom-Munai LLP and Tasbulat Oil
Corporation LLP (both based in Aktau, Kazakhstan).
The disclosures of equity-accounted investments in be-
low tables represent the interest of OMV in the compa-
nies.
On August 1, 2021, SapuraOMV Upstream Sdn. Bhd.
sold its share in SapuraOMV Upstream (PM) Inc.,
which held interests in various producing assets lo-
cated offshore Peninsular Malaysia.
There were no major disposals during 2020 and 2019.
The subsequent tables may contain rounding differ-
ences.
216
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
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
2021
2020
2019
2,137
27,611
29,749
2,461
3,211
26,988 26,830
29,449 30,041
(18,136)
11,613
(17,117)
(15,484)
12,333 14,557
2021
2020
2019
164
477
641
(99)
542
154
346
501
(76)
424
173
315
489
(67)
421
217
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
b) Costs incurred
Costs incurred include all costs, capitalized or ex-
pensed, during the year in the Group’s oil and gas
property acquisition, exploration and development ac-
tivities.
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
Romania
and Black
Sea
Austria
Russia North Sea
Middle
East and
Africa
New
Zealand
and
Australia Malaysia
Total
2021
—
—
—
—
—
—
—
—
1
41
265
307
—
—
6
38
44
—
—
—
—
—
62
0
81
243
324
—
25
165
191
—
26
102
128
—
21
—
1
30
39
70
—
3
210
852
1,065
83
2020
—
—
—
—
—
—
—
—
—
51
330
380
—
—
25
20
45
—
—
—
—
—
55
—
55
187
242
—
2019
—
17
163
180
—
46
60
106
7
—
—
32
19
51
—
—
227
778
1,005
62
—
—
—
1
—
1
604
605
—
93
411
504
—
53
58
112
—
—
—
—
—
—
30
—
121
174
296
12
32
222
266
—
40
65
105
683
20
90
1,398
695
360
1,021
2,681
—
15
—
—
45
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 Explora-
tion & Production net income since interest costs, gen-
eral corporate overhead costs and other costs are not
allocated. Income taxes are hypothetically calculated,
based on the statutory tax rates and the effect of tax
credits on investments and loss carryforwards.
218
OMV ANNUAL REPORT 2021 / 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
New
Zealand
and
Australia Malaysia
Total
Subsidiaries
Sales to unaffiliated parties1
Intercompany sales
Production costs
Royalties
Exploration expenses2
Depreciation, amortization,
impairments and write-ups
Other costs3
Results before income taxes
Income taxes4
Results from oil and gas
production
Results of equity-accounted
investments
Subsidiaries
Sales to unaffiliated parties1
Intercompany sales
Production costs
Royalties
Exploration expenses2
Depreciation, amortization,
impairments and write-ups
Other costs3
Results before income taxes
Income taxes4
Results from oil and gas
production
Results of equity-accounted
investments
22
1,845
1,868
(477)
(404)
(43)
(499)
(70)
(1,493)
375
(59)
(649)
432
(218)
(78)
(66)
(5)
(102)
(14)
(265)
(483)
121
562
—
562
—
—
—
(70)
(329)
(399)
163
(27)
2021
876
1,345
2,221
(144)
—
(108)
(381)
(132)
(766)
1,455
(981)
556
1,018
1,574
(146)
(135)
(43)
(246)
(25)
(596)
979
(750)
316
(362)
135
475
229
—
—
24
—
31
57
1,203
1,260
(472)
(180)
(179)
(538)
(63)
(1,432)
(172)
25
(25)
186
161
(77)
(40)
(96)
(223)
(16)
(452)
(291)
107
389
—
389
—
—
—
(74)
(343)
(417)
(28)
5
(148)
(184)
(23)
—
—
15
2020
569
269
838
(144)
—
(56)
(309)
(135)
(644)
194
(122)
72
—
102
365
467
(125)
(67)
(298)
(226)
(14)
(730)
(263)
118
279
122
400
(81)
(39)
(18)
(127)
(5)
(270)
130
(38)
92
—
228
102
330
(77)
(34)
(201)
(384)
(23)
(719)
(389)
107
239
—
239
(24)
(13)
(65)
(101)
(21)
(223)
15
(6)
10
—
209
—
209
(24)
(4)
(67)
(126)
(26)
(246)
(38)
(16)
1,884
4,762
6,646
(950)
(658)
(281)
(1,526)
(597)
(4,012)
2,635
(1,740)
895
55
1,529
2,125
3,654
(920)
(325)
(896)
(1,880)
(619)
(4,641)
(987)
224
(145)
(282)
(53)
(763)
16
—
—
31
219
OMV ANNUAL REPORT 2021 / 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
New
Zealand
and
Australia
Malaysia
Total
Subsidiaries
Sales to unaffiliated parties1
Intercompany sales
Production costs
Royalties
Exploration expenses2
Depreciation, amortization,
impairments and write-ups
Other costs3
Results before income taxes
Income taxes4
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
—
550
—
550
—
—
—
(91)
(429)
(520)
30
(5)
24
34
2019
891
379
1,270
(158)
—
(73)
(414)
(132)
(777)
493
(402)
91
—
527
822
1,348
(124)
(103)
(16)
(233)
(45)
(520)
828
(675)
153
11
335
191
526
(98)
(65)
(24)
(199)
(20)
(407)
119
(25)
94
—
171
—
171
(30)
(16)
(18)
2,586
3,624
6,210
(991)
(496)
(229)
(73)
(13)
(149)
21
(1,681)
(761)
(4,159)
2,051
(28)
(1,222)
(7)
829
—
45
1 Includes hedging effects; Austria Region includes hedging effects of centrally managed derivatives (2021: EUR (675) mn, 2020: EUR (37) mn, 2019: EUR 2 mn).
2 Including impairment losses related to exploration&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 oil and gas
reserves were estimated based on a 12-month average
price, unless prices are defined by contractual arrange-
ments.
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 expenditure 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.
220
OMV ANNUAL REPORT 2021 / 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
Proved developed and undeveloped reserves – Subsidiaries
January 1, 2019
Revisions of previous estimates
Purchases
Disposal
Extensions and discoveries
Production
December 31, 2019
Revisions of previous estimates
Purchases
Disposal
Extensions and discoveries
Production
December 31, 2020
Revisions of
previous estimates
Purchases
Disposal
Extensions and
discoveries
Production
December 31, 2021
324.4
20.2
—
(3.4)
0.1
(26.1)
315.2
8.6
—
—
0.5
(25.5)
298.8
4.2
—
(21.4)
0.3
(23.0)
258.8
37.0
2.1
—
—
—
(4.0)
35.2
2.7
—
—
—
(3.8)
34.0
1.0
—
—
—
(3.6)
31.4
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
48.4
13.3
—
—
6.0
(16.6)
51.1
8.5
—
—
—
(15.1)
44.5
208.3
26.7
—
—
—
(21.8)
213.2
69.7
—
—
—
(12.8)
270.2
10.2
6.0
—
—
—
(4.6)
11.6
0.2
—
—
—
(3.8)
8.0
17.2
—
—
30.3
—
—
7.6
—
—
—
(15.3)
46.4
—
(24.8)
275.7
0.8
(3.5)
12.9
Proved developed and undeveloped reserves – Equity-accounted investments
—
December 31, 2019
—
December 31, 2020
—
—
—
—
—
—
December 31, 2021
—
—
—
—
15.3
18.4
17.5
Proved developed reserves – Subsidiaries
287.2
December 31, 2019
273.1
December 31, 2020
December 31, 2021
234.2
35.2
33.9
31.4
Proved developed reserves – Equity-accounted investments
December 31, 2019
December 31, 2020
December 31, 2021
—
—
—
—
—
—
—
—
—
—
—
—
37.2
32.7
40.7
179.7
172.7
189.2
—
—
—
14.9
15.7
14.7
—
—
—
7.8
5.6
6.0
—
—
—
—
—
9.5
—
—
(2.1)
7.4
1.0
—
—
—
(2.7)
5.7
4.9
—
(2.4)
—
(1.7)
6.5
—
—
—
5.7
5.7
1.6
—
—
—
628.3
68.4
9.5
(3.4)
6.1
(75.2)
633.7
90.7
—
—
0.5
(63.7)
661.2
65.2
—
(23.8)
1.0
(71.9)
631.7
15.3
18.4
17.5
552.7
523.8
503.2
14.9
15.7
14.7
221
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Gas
In mn 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
January 1, 2019
Revisions of previous estimates
Purchases
Disposals
Extensions and discoveries
Production
December 31, 2019¹
Revisions of previous estimates
Purchases
Disposals
Extensions and discoveries
Production
December 31, 2020¹
Revisions of previous estimates
Purchases
Disposals
Extensions and discoveries
Production
December 31, 2021¹
1,124.7
58.2
—
(6.3)
2.2
(158.0)
1,020.7
61.3
—
—
7.2
(148.6)
940.7
76.2
—
(22.3)
1.5
(130.6)
865.5
196.8
10.1
—
—
—
(29.2)
177.8
2.5
—
—
—
(24.9)
155.3
17.7
—
—
—
(20.6)
152.4
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
429.4
76.0
—
—
7.4
(90.0)
422.8
58.3
—
—
—
(97.5)
383.6
55.5
9.6
—
—
—
(3.2)
61.9
27.5
—
—
—
(7.0)
82.4
7.8
—
—
—
(102.3)
289.2
80.7
—
—
—
(17.3)
145.8
235.6
145.4
—
—
—
(65.2)
315.8
(62.8)
—
—
—
(57.7)
195.3
115.3
—
—
15.4
(51.8)
274.2
—
—
351.2
—
—
(15.5)
335.7
2,041.9
299.3
351.2
(6.3)
9.5
(360.9)
2,334.7
93.9
—
—
—
(53.3)
376.3
180.7
—
—
7.2
(389.0)
2,133.6
212.0
—
(9.1)
—
(64.5)
514.7
509.6
—
(31.5)
17.0
(387.0)
2,241.7
Proved developed and undeveloped reserves – Equity-accounted investments
—
December 31, 2019
—
December 31, 2020
1,376.8
1,321.0
—
—
—
—
December 31, 2021
—
—
1,167.1
—
277.3
383.8
369.2
—
—
—
—
—
1,654.1
1,704.8
—
1,536.4
Proved developed reserves – Subsidiaries
923.0
December 31, 2019
851.9
December 31, 2020
December 31, 2021
779.5
110.2
76.1
84.0
—
—
—
407.8
335.7
287.0
57.4
55.2
62.5
203.2
143.5
115.4
124.0
376.3
1,825.5
1,838.7
291.9
1,620.2
Proved developed reserves – Equity-accounted investments
December 31, 2019
December 31, 2020
December 31, 2021
—
—
—
—
880.2
1,003.1
—
—
1,090.7
—
—
—
262.9
293.5
278.9
—
—
—
—
—
1,143.1
1,296.6
—
1,369.7
1 2021: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
2020: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
2019: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
e) Standardized measure of discounted future net
cash flows
The future net cash flow information is based on the as-
sumption that the prevailing economic and operating
conditions will persist throughout the time during which
proved reserves will be produced. Neither the effects of
future pricing changes nor expected changes in tech-
nology 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
222
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
decommissioning costs comprise the net costs associ-
ated with decommissioning wells and facilities. Future
development costs include the estimated costs of de-
velopment drilling and installation of production facili-
ties. 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 fac-
tors, 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 production of oil and gas.
Standardized measure of discounted future net cash flows
In EUR mn
Subsidiaries
Future cash inflows
Future production and decommis-
sioning costs
Future development costs
Future net cash flows, before
income taxes
Future income taxes
Future net cash flows, before
discount
10% annual discount for esti-
mated timing of cash flows
Standardized measure of dis-
counted future net cash flows
Equity-accounted investments
Subsidiaries
Future cash inflows
Future production and decommis-
sioning costs
Future development costs
Future net cash flows, before
income taxes
Future income taxes
Future net cash flows, before
discount
10% annual discount for esti-
mated timing of cash flows
Standardized measure of dis-
counted future net cash flows
Equity-accounted investments
Subsidiaries and equity-accounted investments
Romania
and Black
Sea
Austria
Russia North Sea
Middle
East and
Africa
New
Zealand
and
Australia Malaysia
Total
2021
17,585
3,336
2,625
5,608
16,545
1,905
1,433
49,038
(9,221)
(1,422)
(1,612)
(246)
(2,148)
—
(2,293)
(281)
(5,419)
(776)
(1,647)
(380)
(490)
(257)
(22,831)
(3,362)
6,942
1,479
477
3,034
10,350
(122)
685
22,845
(577)
(264)
(97)
(2,541)
(6,893)
116
(175)
(10,432)
6,366
1,214
380
493
3,457
(6)
510
12,413
(3,089)
(630)
(71)
(109)
(1,100)
175
(216)
(5,040)
3,276
—
584
—
309
187
384
—
2,357
336
169
—
294
—
7,373
523
12,167
1,513
2,497
2,628
9,914
928
959
30,607
2020
(7,748)
(1,632)
(1,159)
(297)
(2,276)
—
(1,857)
(373)
(3,907)
(698)
(1,257)
(226)
(450)
(24)
(18,654)
(3,249)
2,787
(69)
2,718
58
—
58
220
(60)
399
5,308
(554)
486
8,704
(1)
(2,954)
199
(104)
(2,990)
160
397
2,354
(355)
382
5,714
(1,038)
(5)
1
(40)
(696)
153
(103)
(1,727)
1,680
—
53
—
161
100
357
—
1,659
233
(202)
—
279
—
3,987
333
223
OMV ANNUAL REPORT 2021 / 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)
(2,081)
(1,704)
(370)
(2,779)
—
(2,196)
(527)
(3,398)
(563)
(1,785)
(325)
(461)
(36)
(21,480)
(3,901)
8,696
479
622
1,709
8,637
(138)
749
20,754
(819)
(21)
(125)
(959)
(5,188)
101
(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
101
464
—
2,424
136
147
—
444
—
8,230
238
Subsidiaries
Future cash inflows
Future production and decommis-
sioning costs
Future development costs
Future net cash flows, before
income taxes
Future income taxes
Future net cash flows, before
discount
10% annual discount for esti-
mated timing of cash flows
Standardized measure of dis-
counted future net cash flows
Equity-accounted investments
f) Changes in the standardized measure of dis-
counted 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)
Other1
End of year
Equity-accounted investments
1 Contains movements in foreign exchange rates vs. the EUR
2021
2020
2019
3,987
(2,262)
8,231
(67)
5
657
(269)
1,854
341
(4,935)
(168)
7,373
8,230
(3,397)
(7,040)
—
22
1,031
259
757
732
3,625
(232)
3,987
9,304
(3,942)
(1,810)
531
72
674
(398)
1,216
828
1,646
108
8,230
523
333
238
224
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
Vienna, March 9, 2022
The Executive Board
Alfred Stern m.p.
Chairman of the Executive Board,
Chief Executive Officer and
Executive Officer Chemicals & Materials
Johann Pleininger m.p.
Deputy Chairman of the Executive Board
and Executive Officer Exploration & Production
Reinhard Florey m.p.
Chief Financial Officer
Elena Skvortsova m.p.
Executive Officer Marketing & Trading
Martijn van Koten m.p.
Executive Officer Refining
225
OMV ANNUAL REPORT 2021 / FINANCIAL STATEMENTS
226
FURTHER INFORMATION
227 — 239
228 — Consolidated Report on the Payments Made to Governments
236 — Abbreviations Definitions
239 — Contacts and Imprint
OMV ANNUAL REPORT 2021 / 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 the 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 consolidated
report covering payments made to governments for
each financial year in relation to extractive activities by
itself and any subsidiary undertakings included in the
consolidated Group financial statements.
“Substantially interconnected” is defined as a set of
operationally and geographically integrated contracts,
licenses, leases, concessions, or related agreements
with substantially similar terms that are signed with a
government, giving rise to payment liabilities. Such
agreements can be governed by a single contract, joint
venture agreement, production sharing agreement or
other overarching legal agreement.
Activities within the scope of the report
Payments made by OMV Group (hereafter OMV) to
governments that arose from exploration, prospection,
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 department
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 activi-
ties outside 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 liabilities to
the government. Where these agreements as per the
aforementioned definition are substantially
interconnected, these agreements are treated for the
purpose of these regulations as a single project.
There may be instances, for example, corporate in-
come taxes, where it is not possible to attribute the
payment to a single project and therefore these pay-
ments 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 re-
ported in the period in which they are paid and not in
the period in which they are accounted for on an accru-
als 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 converted
to an equivalent cash value based on the most appro-
priate and relevant valuation method for each payment
type. This can be at cost or market value and an expla-
nation is provided in the report to help explain the valu-
ation method. Where applicable, the related volumes
are also included in the report.
Payment reporting methodology
The regulation requires that payments are to be re-
ported 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 require-
ments, OMV has considered its reporting obligation as:
228
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
▸ Where OMV makes a payment directly to the gov-
ernment, these payments will be reported in full, ir-
respective of whether this is made in the sole ca-
pacity of OMV or in OMV’s capacity as the operator
of a joint operation.
▸ In cases where OMV is a member of a joint opera-
tion 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 re-
covery items.
▸ For host government production entitlements, the
terms of the agreement have to be considered; for
the purpose of reporting in this report, OMV will dis-
close host government entitlements in their entirety
where it is the operator.
Materiality
Payments made as a single payment or a series of re-
lated payments that are below EUR 100,000 within a fi-
nancial 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
Royalties
Royalties relating to the extraction of oil, gas and min-
erals paid to a government are to be disclosed. Where
royalties are paid in kind, the value and volume are re-
ported.
Dividends
In accordance with the regulations, dividends are re-
ported when paid to a government in lieu of production
entitlements or royalties. Dividends that are paid to a
government as an ordinary shareholder are not re-
ported, as long as the dividends are paid on the same
terms as that of other shareholders.
For the year that ended December 31, 2021, OMV had
no such reportable dividend payments to a govern-
ment.
Bonuses
Bonuses include signature, discovery and production
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 consideration for ac-
cess to the area where extractive activities are per-
formed.
Production entitlements
Under production sharing agreements (PSAs), the host
government is entitled to a share of the oil and gas pro-
duced and these entitlements are often paid in kind.
The report will show both the value and volume of the
government’s production entitlement for the relevant
period in barrels of oil equivalent (boe).
The government share of any production entitlement
will also include any entitlements arising from an inter-
est held by a state-owned entity as an investor in pro-
jects within its sovereign jurisdiction. Production entitle-
ments arising from activities or interests outside a state-
owned entity’s sovereign jurisdiction are excluded.
The report excludes fees paid to a government that are
not specifically related to extractive activities 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 infra-
structural 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.
Taxes
Taxes levied on income, production or profits of compa-
nies are reported. Refunds will be netted against pay-
ments and shown accordingly. Consumption taxes, per-
sonal income taxes, sales taxes, property taxes and
environmental taxes are not reported under the regula-
tion. 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.
229
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
Payments overview
The overview table below shows the relevant payments
to governments that were made by OMV in the year
that ended December 31, 2021.
Of the seven payment types that are required by the
Austrian regulations to be reported upon, OMV did not
pay any dividends or infrastructure improvements that
met the defined accounting directive definition, and
therefore these categories are not shown.
Payments overview
In EUR 1,000
Country
Austria
Georgia
Kazakhstan
Malaysia
Norway
New Zealand
Romania
Tunisia
United Arab Emirates
Yemen
Total
Production
entitlements
—
—
—
255,733
—
—
—
—
—
48,730
304,463
Taxes
Royalties
Bonuses
Fees
Total
(33,488)
—
1,683
20,788
230,249
39,644
228,135
4,824
102,013
—
593,847
50,215
—
—
68,235
—
45,507
131,465
12,059
118,270
4,637
430,388
—
1,418
—
—
—
—
—
—
—
—
1,418
—
—
—
21,275
(1,422)
8,119
23,973
194
873
1,821
54,833
16,727
1,418
1,683
366,031
228,827
93,269
383,572
17,077
221,156
55,188
1,384,949
No payments have been reported for Libya for the year
2021 as OMV was not the operator.
its subsidiaries are fully consolidated in OMV’s Group
financial statements.
On November 30, 2017, OMV acquired a stake of
24.99% in OJSC Severneftegazprom (SNGP). As
SNGP is an associated company and therefore ac-
counted for using the equity method in the 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
There were no major acquisitions during 2021.
As per May 14, 2021, OMV Petrom finalized the sale of
its 100% share in Kom-Munai LLP and Tasbulat Oil
Corporation LLP (both based in Aktau, Kazakhstan).
On August 1, 2021, SapuraOMV Upstream Sdn. Bhd.
sold its share in SapuraOMV Upstream (PM) Inc.,
which held interests in various producing assets lo-
cated offshore Peninsular Malaysia.
230
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
Payments by country
Austria
In EUR 1,000
Governments
Federal Ministry of Agriculture,
Regions and Tourism
Federal Ministry of Finance
Total
Projects
Lower Austria
Total
Georgia
In EUR 1,000
Governments
LEPL State Agency of Oil and Gas
Total
Projects
Offshore Black Sea
Total
Kazakhstan
In EUR 1,000
Governments
State Revenue Committee
Total
Projects
Tasbulat, Turkmenoi, Aktas
Komsomolskoe
Total
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
—
(33,488)
(33,488)
50,215
—
50,215
(33,488)
(33,488)
50,215
50,215
—
—
—
—
—
—
—
—
—
—
50,215
(33,488)
16,727
16,727
16,727
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
—
—
—
—
—
—
—
1,418
1,418
1,418
1,418
—
—
—
—
1,418
1,418
1,418
1,418
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
1,683
1,683
711
972
1,683
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,683
1,683
711
972
1,683
231
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
Malaysia
In EUR 1,000
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
Governments
Petroliam Nasional Berhad
Ketua Pengarah Hasil Dalem Negeri
Petronas Carigali SDN BHD
Total
Projects
Block PM323/PM329
Block AAKBNLP/PM318
Block SK408/SK310
Total
86,6911
—
169,0422
255,733
48,2794
—
207,4535
255,733
74
20,714
—
20,788
2,431
2,296
16,061
20,788
68,2353
—
—
68,235
8,7866
—
59,4497
68,235
—
—
—
—
—
—
—
—
21,275
—
—
21,275
4,437
849
15,989
21,275
176,275
20,714
169,042
366,031
63,933
3,146
298,953
366,031
1 Includes payments in kind for 2,436,100 bbl of crude oil valued using the average monthly price per boe
2 Includes payments in kind for 9,402,560 bbl of crude oil valued using the average monthly price per boe
3 Includes payments in kind for 3,596,433 bbl of crude oil valued using the average monthly price per boe
4 Includes payments in kind for 848,301 bbl of crude oil valued using the average monthly price per boe
5 Includes payments in kind for 10,990,359 bbl of crude oil valued using the average monthly price per boe
6 Includes payments in kind for 154,658 bbl of crude oil valued using the average monthly price per boe
7 Includes payments in kind for 3,441,775 bbl of crude oil valued using the average monthly price per boe
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
—
—
—
—
—
—
230,249
—
230,249
63
63
6
—
230,118
230,249
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(1,469)
36
10
(1,422)
—
—
—
(1,422)
—
(1,422)
(1,469)
230,285
10
228,827
63
63
6
(1,422)
230,118
228,827
Norway
In EUR 1,000
Governments
Oljedirektoratet
Skatteetaten
Miljodirektoratet
Total
Projects
Gulfaks
Gudrun
Aasta Hansteen
Norway Exploration Projects
Payments not attributable to projects
Total
232
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
New Zealand
In EUR 1,000
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
Governments
Inland Revenue
Ministry of Business,
Innovation and Employment
Environmental Protection Authority
Total
Projects
Maari
Māui
Pohokura
New Zealand exploration projects
Payments not attributable to projects
Total
Romania
In EUR 1,000
—
—
—
—
—
—
—
—
—
—
39,644
—
—
—
39,644
—
—
—
—
39,644
39,644
45,507
—
45,507
7,599
5,348
32,559
—
—
45,507
—
—
—
—
—
—
—
—
—
—
—
39,644
7,983
136
8,119
77
7,916
13
108
4
8,119
53,490
136
93,269
7,676
13,265
32,572
108
39,648
93,269
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
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 Operations
Offshore Black Sea
Payments not attributable to projects
Total
—
—
—
—
—
—
—
—
—
—
—
—
—
228,135
—
131,465
—
—
—
—
—
—
—
—
—
—
228,135
—
131,465
—
—
49,657
178,477
228,135
101,893
1,177
28,395
—
131,465
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,037
2,505
14,996
98
359,599
4,037
2,505
14,996
98
1,690
1,690
647
23,973
21,628
—
655
1,690
23,973
647
383,572
123,521
1,177
78,707
180,168
383,572
233
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
Tunisia
In EUR 1,000
Governments
Receveur des Finances
Receveur des Douanes
Entreprise Tunisienne
d’Activités Pétrolières
Trésorerie Générale de Tunisie
Total
Projects
South Tunisia
Total
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
—
—
4,332
492
—
—
4,824
4,824
4,824
—
—
7,7971
4,261
12,059
12,0591
12,059
—
—
—
—
—
—
—
194
—
—
—
194
194
194
4,526
492
7,797
4,261
17,077
17,077
17,077
1 Includes payments in kind for 133,740 bbl of crude oil valued using the average monthly price per boe
United Arab Emirates
In EUR 1,000
Governments
Abu Dhabi National Oil Company
(ADNOC)
Emirate of Abu Dhabi –
Finance Department
Total
Projects
Umm Lulu und SARB
Total
Yemen
In EUR 1,000
Governments
Ministry of Oil & Minerals
Total
Projects
Block S2
Block 86
Total
Production
entitlements
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
—
—
102,013
102,013
118,270
118,270
102,013
102,013
118,270
118,270
—
—
—
—
—
873
—
873
873
873
873
220,283
221,156
221,156
221,156
Production
entitlements
48,7301
48,730
48,7301
—
48,730
Taxes
Royalties
Bonuses
Fees
Total
—
—
—
—
—
4,6372
4,637
4,6372
—
4,637
—
—
—
—
—
1,821
1,821
254
1,567
1,821
55,188
55,188
53,621
1,567
55,188
1 Includes payments in kind for 844,582 boe valued at prices set by the Yemen Crude Oil Marketing Directorate
2 Includes payments in kind for 80,373 boe valued at prices set by the Yemen Crude Oil Marketing Directorate
234
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
Vienna, March 9, 2022
The Executive Board
Alfred Stern m.p.
Chairman of the Executive Board,
Chief Executive Officer and
Executive Officer Chemicals & Materials
Johann Pleininger m.p.
Deputy Chairman of the Executive Board
and Executive Officer Exploration & Production
Reinhard Florey m.p.
Chief Financial Officer
Elena Skvortsova m.p.
Executive Officer Marketing & Trading
Martijn van Koten m.p.
Executive Officer Refining
235
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
Abbreviations and Definitions
A
ACC
Austrian Commercial Code
ACCG
Austrian Code of Corporate
Governance
AGM
Annual General Meeting
B
bbl
Barrel (1 barrel equals approxi-
mately 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
CAGR
Compounded annual growth
rate
CAPEX
Capital Expenditure
capital employed
Equity including non-controlling
interests plus net debt
cbm
Standard cubic meters
(32 °F/0 °C)
236
CCS/CCS effects/inventory
holding gains/(losses)
Current Cost of Supply; inven-
tory holding gains and losses
represent the difference be-
tween the cost of sales calcu-
lated using the current cost of
supply and the cost of sales
calculated using the weighted
average method after adjusting
for any changes in valuation al-
lowances in case the net realiz-
able value of the inventory is
lower than its cost. In volatile
energy markets, measurement
of the costs of petroleum prod-
ucts sold based on historical
values (e.g., weighted average
cost) can have distorting effects
on reported results (Operating
Result, net income, etc.). The
amount disclosed as CCS ef-
fect represents the difference
between the charge to the in-
come statement for inventory
on a weighted average basis
(adjusted for the change in val-
uation 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 pro-
duction systems at the Refining
& Marketing level.
Clean CCS net income at-
tributable to stockholders
Net income attributable to
stockholders, adjusted for the
after-tax effect of special items
and CCS
Clean CCS Operating Result
Operating Result adjusted for
special items and CCS effects.
The Group clean CCS Operat-
ing Result is calculated by add-
ing the clean CCS Operating
Result of Refining & Marketing,
the clean Operating Result of
other segments and the re-
ported consolidation effect ad-
justed for changes in valuation
allowances, in case the net re-
alizable value of the inventory
is lower than its cost.
Clean CCS ROACE
The clean CCS Return On Av-
erage Capital Employed is cal-
culated as NOPAT (as a sum of
current and last three quarters)
adjusted for the after-tax effect
of special items and CCS, di-
vided by average capital em-
ployed (%).
C&M
Chemicals & Materials busi-
ness segment
CEE
Central and Eastern Europe
Co&O
Corporate and Other
CEGH
Central European Gas Hub
E
cf
Standard cubic feet
(60 °F/16 °C)
CGU
Cash generating unit
Clean CCS EPS
Clean CCS Earnings Per Share
are calculated as clean CCS
net income attributable to
stockholders divided by
weighted number of shares.
ECL
Expected credit losses
EPS
Earnings Per Share; net in-
come attributable to stockhold-
ers divided by total weighted
average shares
E&P
Exploration & Production busi-
ness segment
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
EPSA
Exploration and Production
Sharing Agreement
kboe
Thousand barrels of oil equiva-
lent
equity ratio
Equity divided by balance sheet
total, expressed as a percent-
age
F
FVOCI
Fair value through other com-
prehensive income
FVTPL
Fair value through the state-
ment of profit or loss
FX
Foreign exchange
G
G2P
Gas-to-power
GDP
Gross Domestic Product
gearing ratio
Net debt divided by equity, ex-
pressed as a percentage
H
HSSE
Health, Safety, Security, and
Environment
I
IASs
International Accounting Stand-
ards
IFRSs
International Financial Report-
ing Standards
K
kbbl/d
Thousand barrels per day
kboe/d
Thousand barrels of oil equiva-
lent per day
km2
Square kilometer
KPI
Key Performance Indicator
KStG
Austrian Corporate Income Tax
Act
L
leverage ratio
Net debt divided by capital em-
ployed, expressed as a per-
centage
LNG
Liquefied Natural Gas
LTIR
Lost-Time Injury Rate per mil-
lion hours worked
M
min
Minute
mn
Million
MPPH
Mubadala Petroleum and Pet-
rochemicals Holding Company
L.L.C.
MW
Megawatt
MWh
Megawatt hour
N
NCI
Non-controlling interests
n.a.
Not available
n.m.
Not meaningful
net assets
Intangible assets, property,
plant and equipment, equity-ac-
counted investments, invest-
ments in other companies,
loans granted to equity-ac-
counted investments, total net
working capital, less provisions
for decommissioning and resto-
ration obligations
net debt
Interest-bearing debts including
bonds and finance lease liabili-
ties 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
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.
O
OCI
Other comprehensive income
OECD
Organisation for Economic Co-
operation and Development
237
OMV ANNUAL REPORT 2021 / FURTHER INFORMATION
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
ÖBAG
Österreichische Beteiligungs
AG
P
payout ratio
Dividend per share divided by
earnings per share, expressed
as a percentage
Pearl
Pearl Petroleum Company Lim-
ited
R
R&M
Refining & Marketing business
segment
ROACE
Return On Average Capital
Employed; NOPAT divided by
average capital employed ex-
pressed as a percentage
ROE
Return On Equity; net in-
come/loss for the year divided
by average equity, expressed
as a percentage
RRR
Reserve Replacement Rate; to-
tal changes in reserves exclud-
ing production, divided by total
production
S
sales revenues
Sales excluding petroleum ex-
cise tax
Special items
Special items are expenses
and income reflected in the fi-
nancial statements that are dis-
closed separately, as they are
not part of underlying ordinary
business operations. They are
being disclosed separately in
order to enable investors to
better understand and evaluate
238
Contacts and Imprint
OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna, Austria
Tel. + 43 1 40440-0
info@omv.com
www.omv.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
Photos
Title: Getty Images/RyanJLane
Pages 11, 14, 15: Andreas Jakwerth
Pages 17: Kurt Prinz
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 round-
ing differences. Differences between percentages are dis-
played 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 an-
nual report.
Disclaimer regarding forward-looking statements:
This report contains forward-looking statements. Forwardlook-
ing 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 forwardlooking state-
ments are based on beliefs, estimates and assumptions cur-
rently held by and information currently available to OMV. By
their nature, forward-looking statements are subject to risks
and uncertainties, both known and unknown, because they re-
late 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 accu-
racy and completeness of any of the forward-looking state-
ments contained in this report. OMV disclaims any obligation
and does not intend to update these forward-looking state-
ments to reflect actual results, revised assumptions and expec-
tations, and future developments and events. This report does
not contain any recommendation or invitation to buy or sell se-
curities in OMV.
239
OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna, Austria
Tel. + 43 1 40440-0
info@omv.com
www.omv.com
240