Annual Report 2022
Annual Report 2022
The energy for a better life.
At a Glance
Five-year summary
Sales revenues
Operating Result
Profit before tax
Taxes on income
Net income
Net income attributable to stockholders of the parent
Clean CCS Operating Result1
Clean CCS net income1
Clean CCS net income attributable to stockholders of the parent1
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
2022
2021
2020
2019
2018
62,298
12,246
10,765
(5,590)
5,175
3,634
11,175
5,807
4,394
35,555 16,550
1,050
875
603
1,478
1,258
1,686
1,026
679
5,065
4,870
(2,066)
2,804
2,093
5,961
3,710
2,866
23,461
3,582
3,453
(1,306)
2,147
1,678
3,536
2,121
1,624
22,930
3,524
3,298
(1,305)
1,993
1,438
3,646
2,108
1,594
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 expenditure2
Free cash flow before dividends
Organic Free cash flow before dividends3
Return On Average Capital Employed (ROACE)
Clean CCS ROACE1
Return On Equity (ROE)
Equity ratio
Gearing ratio exluding leases
Leverage ratio
Earnings Per Share (EPS)
Clean CCS EPS1
Cash flow per share4
Dividend Per Share (DPS)5
Payout ratio5
Employees as of December 31
Polyolefin sales volumes6
Utilization rate steam crackers Europe6
Fuels and other sales volumes Europe
Production cost
Total hydrocarbon production
Total Recordable Injury Rate (TRIR)
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
56,429
26,628
683
2,207
29,431
53,798 49,271
21,996 19,899
8,130
9,347
29,366 21,555
4,771
5,962
40,375
16,863
3,632
4,686
19,923
36,961
15,342
1,726
2,014
16,850
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in EUR mn
in %
in %
in %
in %
in %
in %
9,843
7,758
4,201
3,711
5,792
4,891
17
19
20
47
3
8
8,897
7,017
2,691
2,650
5,196
4,536
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
10
13
13
41
22
21
8
5
9
40
41
32
11
11
13
42
22
22
12
13
14
42
11
12
in EUR
in EUR
in EUR
in EUR
in %
11.12
13.44
23.73
5.05
45
22,308
6.40
8.77
21.47
2.30
36
3.85
2.08
9.60
1.85
48
22,434 25,291
5.14
4.97
12.42
1.75
34
19,845
4.40
4.88
13.46
1.75
40
20,231
in mn t
in %
in mn t
in USD/boe
in kboe/d
in mn hours
worked
5.66
74
15.5
8.20
392
5.93
90
16.3
6.67
486
5.95
73
15.5
6.58
463
5.59
93
18.6
6.61
487
5.27
94
17.8
7.01
427
1.23
0.96
0.60
0.95
0.78
1 Adjusted for special items and CCS effects; further information can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements
2 Organic capital expenditure is defined as capital expenditure including capitalized Exploration and Appraisal expenditure excluding acquisitions and contingent considerations.
3 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)
4 Cash flow from operating activities, based on total weighted average outstanding shares
5 2022: as proposed by the Executive Board and the Supervisory Board, subject to adoption by the Annual General Meeting 2023. Includes regular and special dividend.
6 As of 2021, 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
Chemicals & Materials
In Chemicals & Materials, OMV is one of the world’s leading
providers of advanced and circular polyolefin solutions with
total polyolefin sales of 5.7 mn t in 2022, and a European market
leader in base chemicals, fertilizers1 and plastics recycling. OMV
supplies services and products to customers worldwide together
with 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 presence1,2StatesUnitedMexicoJapanVietnamColombiaSouth AfricaChileArgentinaBrazilSouthKoreaMoroccoEgyptIndiaThailandIndonesiaMalaysiaSingaporeChinaFinlandSwedenPolandCzech RepublicSlovakiaRomaniaCroatiaHungarySerbiaBulgariaBelgiumNetherlandsUnited KingdomGermanySpainFranceAustriaItalyTurkeyGreeceUnitedArabEmirates1 On June 2, 2022, Borealis received a binding offer from AGROFERT for the acquisition of its nitrogen business including fertilizer, melamine and technical nitrogen products. 2 Chemicals & Materials presence comprises OMV’s petrochemicals presence as well as the production plants, sales offices, and logistics hubs of Borealis and Borouge. Refining & Marketing
OMV’s Refining & Marketing business refines and markets fuels
as well as feedstock for the chemical industry. 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. In addition, the activities include Gas & Power Eastern
Europe, where OMV Petrom operates a gasfired power plant
in Romania and is engaged in gas and power sales.
UnitedArabEmiratesRefining & Marketing presenceFuels & GasFuelsGasOMV refineriesGas-firedpower plantNumber of filling stations17Germany1141Czech Republic104Slovakia206Hungary69Moldova93Bulgaria63Serbia437Austria555Romania118Slovenia2Turkey1 On May 1, 2022 OMV closed the transaction to sell its filling station business (285 filling stations) in Germany to EG Group. Furthermore, a divestment agreement was signed for Avanti Germany comprising the sale of 17 unmanned filling stations to PKN Orlen in December 2022.2 OMV has agreed to sell its business in Slovenia to MOL Group. The closing of this transaction is expected in 2023. 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-Pacific1.
In 2022, daily production was 392 kboe/d2 (equal to 143 mn boe),
with a roughly equal share of natural gas and liquids production.
At year end 2022, proven reserves amounted to 1,037 mn boe.
In the Gas Marketing Western Europe business, OMV markets
and trades natural gas, operates natural gas storage facilities with a
capacity of 30 TWh, and holds a 65% stake in the Central European
Gas Hub (CEGH).
Total hydrocarbon production2Middle East and AfricaAsia-PacificCentral and Eastern EuropeNorth Sea392kboe/d91kboe/d59kboe/d137kboe/d87kboe/dIn %Production and oil and gas split Oil and NGL Natural gasExploration & Production core regionsNorth SeaCentral and Eastern Europe3Middle East and Africa4Asia-Pacific1,3505085158348524617541 On February 27, 2023, OMV announced the start of the sales process for its E&P business in the Asia-Pacific region.2 Includes gas production from a JV in Russia in the amount of 17 kboe/d in 2022. OMV no longer considers Russia a core region. Starting March 1, 2022, Russian volumes are not included anymore in total production, due to a change in the consolidation method.3 In addition, OMV holds participations in exploration licenses in Bulgaria, Georgia, Australia, and Mexico.4 In 2022 OMV signed an agreement to sell its relevant operating entities in Yemen.AustriaNorwayRomaniaMalaysiaNew ZealandKurdistanRegionof IraqLibyaUnited Arab EmiratesTunisiaYemenGas Marketing Western EuropeGasstorageCEGHLNG terminalGermanyAustriaHungaryNetherlandsBelgium FINANCIAL CALENDAR
April 12, 2023 Trading Update Q1 2023
April 28, 2023 Results January–March 2023
July 10, 2023 Trading Update Q2 2023
July 28, 2023 Results January–June and Q2 2023
October 9, 2023 Trading Update Q3 2023
October 31, 2023 Results January–September and Q3 2023
▸ This financial calendar represents only
an extract of the planned dates.
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/2022
▸ The PDF version of this annual report can be found here:
www.omv.com/annual-report-2022
6
Contents
8 1 — TO OUR SHAREHOLDERS
9
12
14
18
Statement of the Chairman of the Executive Board
OMV Executive Board
Report of the Supervisory Board
OMV on the Capital Markets
23 2 — DIRECTORS’ REPORT
25
28
31
38
44
47
50
62
70
75
82
83
88
About OMV
Market Outlook
Strategy
Sustainability
Health, Safety, Security, and Environment
Employees
OMV Group Business Year
Chemicals & Materials
Refining & Marketing
Exploration & Production
Outlook
Risk Management
Other Information
93 3 — CONSOLIDATED CORPORATE GOVERNANCE REPORT
105 4 — CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
106
116
117
118
120
122
123
Auditor’s Report
Consolidated Income Statement for 2022
Consolidated Statement of Comprehensive Income for 2022
Consolidated Statement of Financial Position as of December 31, 2022
Consolidated Statement of Changes in Equity for 2022
Consolidated Statement of Cash Flows for 2022
Notes to the Consolidated Financial Statements
239 5 — FURTHER INFORMATION
240
247
250
Consolidated Report on the Payments Made to Governments
Abbreviations and Definitions
Contacts and Imprint
7
TO OUR SHAREHOLDERS
8 — 22
9 — Statement of the Chairman of the Executive Board
12 — OMV Executive Board
14 — Report of the Supervisory Board
18 — OMV on the Capital Markets
OMV ANNUAL REPORT 2022 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
“Success is important. But what really matters is the future.”
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/2022
Mr. Stern, what’s the first things that come to your mind when you think about 2022?
First of all, I share the disbelief of everyone at the Russian attack on Ukraine. I clearly see the pain that it causes
every day. I also think about the fact that, in February 2022, OMV swiftly reacted to this unprecedented situation
and tackled the various consequences – thanks to our employees, who were still dealing with the ongoing effects
of the COVID-19 pandemic and had to throw themselves straight into the next challenge. That deserves huge re-
spect. But I don’t want the entirely new direction and transformation of our Company to get lost in all of that. We
initiated this path during the difficult environment of the previous year and have been following it consequently
ever since.
Was it immediately clear what had to be done regarding Russia?
For us, there was no option but to immediately reevaluate our entire Russian business in line with the sanctions.
We removed Russia from our core regions, and decided to make no further investments there. Additionally, we
undertook value adjustments for our activities in Russia and conducted a strategic assessment of our shareholding
in a natural gas field. We are considering all options in this regard, including sale and withdrawal, but we’re also
aware that doing that in the current legal environment is an extremely taxing endeavor. At the same time, how-
ever, we’ve also been focusing on securing the supply to our customers. We have succeeded in doing this by us-
ing alternative sources of supply, securing transport capacity, and pursuing a consistent storage strategy. The gas
task force we set up for this purpose performed and continues to perform incredible work in this regard.
OMV’s new strategic direction was almost overshadowed by the outbreak of war. Was it also superseded
by the events?
Not at all. We obviously had to make tactical adjustments, but the strategy was confirmed with all of its corner-
stones. As a result of the war, it became clearer than ever that the world needed a new footing for its energy sup-
ply. With the importance of sustainability in mind, we need to reduce our use of resources, of fossil fuels, by re-
placing them with alternatives, and to find a quicker way to drive forward the circular economy. We describe in our
Strategy how that might work, and implementing it is a top priority.
With the development of the Strategy 2030, you’ve also redefined OMV’s very reason for being.
We have chosen a fundamentally different path, analyzed future global developments, and asked ourselves what
OMV will look like in ten, twenty, or thirty years’ time. The result is summarized in our purpose “Re-inventing es-
sentials for sustainable living”: we see it as our duty to develop solutions to help us not only to ensure our quality
of life, but more importantly to enable more people to share this sense of well-being with the smallest possible car-
bon footprint. Stemming from this aspiration, 2023 sees the establishment of our revised corporate structure and
OMV’s new strategic direction in all three business segments: the gradual replacement of fossil-based energy
sources through sustainable operations in the new Energy business segment; the goal for the Fuels & Feedstock
segment, as a leading provider of sustainable fuels and chemical feedstocks, to contribute to climate-friendly mo-
bility and materials management; and for the Chemicals & Materials business to become both a world leading pro-
vider of special polyolefin solutions and a leading Company in the field of circular economy.
9
OMV ANNUAL REPORT 2022 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
»
The significance of energy
companies has taken on a
whole new dimension. Our
industry is one of the key levers
for a successful reversal of
climate change.
ALFRED STERN
Chairman of the Executive Board
There is also criticism. How do you convince people of the reliability of your strategy?
From our point of view, there is no more meaningful path for OMV to take toward a sustainable future. The Energy
business segment is proving its worth as the financial driver of our transformation. The sustainable direction of
Fuels & Feedstock is taking shape. The same applies for Chemicals & Materials. We only presented the Strategy
2030 a year ago. Operationally, we’ve launched two promising geothermal projects in Austria and Germany and
recently entered into an agreement to form a joint venture to develop the geothermal potential in the Vienna Basin.
We’ve been able to celebrate initial success in terms of sustainable aviation fuels, are putting our ReOil ® 2000
plant into operation in Schwechat with a processing capacity of 16,000 t this year, and are working on the global
licensing of the technology. Also in Schwechat, Borealis is planning a further plant for advanced recycling, and this
year we will complete the largest electrolysis plant in Austria, which will produce 1,500 t green hydrogen per year.
Financially, we are in a very strong position to invest in growth. By 2030, an average of 40 percent of our invest-
ments will be in sustainable projects. All of this shows that we are consistently taking the path we have chosen.
Geopolitical tension and climate change are placing OMV increasingly in the spotlight of public interest.
How do you handle this?
The significance of energy companies has taken on a whole new dimension. Our industry is one of the key levers
for a successful reversal of climate change. At the same time, we need to help ensure a secure and affordable en-
ergy supply – now more than ever in the wake of the Russian attack on Ukraine. If we want to fundamentally rea-
lign a company under these conditions, we need not just a few but all stakeholders on board – no matter whether
they’re owners, the capital market, the procurement or sales market, employees, prospective employees, politi-
cians, the media, or the general public.
10
OMV ANNUAL REPORT 2022 / INTERVIEW WITH THE CHAIRMAN OF THE EXECUTIVE BOARD
The current environment is generating high profits, which are controversially being referred to as “excess
profits.” What’s your opinion?
The 2022 business year was an exceptionally successful one and the generated returns will need to be deployed
in a focused manner: on the one hand for a secure energy supply in the future, but predominantly also for the sus-
tainable, successful development of the Company over the long term. That requires enormous investment in re-
search, development, and innovative production processes. Of course, we also want our shareholders to partici-
pate appropriately in the success of the Company. That’s why we will propose OMV’s highest ever regular divi-
dend of EUR 2.80 to the Annual General Meeting this year, and on-top of that a special dividend of EUR 2.25. In
order to ensure an appropriate participation also over the long term, we have modified our dividend policy and in-
troduced the special dividend as an additional instrument. With this modified dividend policy we aim to distribute
approximately 20 to 30 percent of the cash flow from operating activities including net working capital effects, if
sufficient funds are available and the Company’s leverage ratio is below 30 percent.
You described the Chemicals & Materials business as the future growth driver of OMV. What makes you
so sure of this despite the current weak market?
The market will grow, especially considering the increasing number of people living in economic prosperity. At the
same time, we need to keep an eye on dwindling resources and the ever-growing threat to the climate. And this is
where our C&M business will play a key role, through the accelerated development and production of high-quality,
sustainable chemical and plastic products, which ensure the efficient use of resources and increase energy effi-
ciency of solar panels, wind farms, electricity transmission, and mobility solutions – to name just a few examples.
Furthermore, we will make use of OMV and Borealis’ expertise in the area of mechanical and chemical recycling of
plastics in order to take a leading role in the global circular economy. We need to succeed in decoupling economic
growth and consumption of resources. This will help to lower emissions and reduce waste. Overall, this offers
enormous market potential that we want to capitalize on as much as possible.
A strategy has long-term targets. As the war on Ukraine shows, time and again, unforeseen events have
huge implications. How is it possible to know at all times that you’re on the right path?
That’s very true. As a company, you also need to be able to act on developments at short notice. A well thought
out strategy provides the necessary scope and flexibility to do this. The OMV strategy has proven itself in this re-
gard over the past twelve months. At the same time, however, we must never lose sight of the overarching goal,
and that is and will remain simultaneously addressing the climate crisis and the ever-increasing consumption of
energy and resources. This demands new solutions. For this reason, the long-term success of a company de-
pends on its ability to harness sustainability as a driver of innovation and growth. We have made sustainability the
starting point and the core element of our strategy, and therefore the foundation of our successful development.
Vienna, March 9, 2023
Alfred Stern m.p.
11
OMV Executive Board
Alfred Stern
Chairman of the Executive Board
and Chief Executive Officer
Reinhard Florey
Chief Financial Officer
Daniela Vlad
Executive Vice President
Chemicals & Materials
Martijn van Koten
Executive Vice President
Fuels & Feedstock
Berislav Gaso
Executive Vice President
Energy
OMV ANNUAL REPORT 2022 / REPORT OF THE SUPERVISORY BOARD
Dear Shareholders,
The challenges posed by the geopolitical and macroeconomic climate became even more pronounced in 2022: on
top of the impact of the COVID-19 pandemic came the war in the Ukraine, a complex energy crisis and the highest
rate of inflation for 70 years. Thanks to our new strategy, we’ve set the course for a sustainable future and already
taken the first steps in this transformation. At the same time, however, the environment demanded short-term tacti-
cal adjustments in order to be able to best secure the supply of energy. I personally believe OMV management
and employees did an extraordinary job balancing these different priorities.
During this time of uncertainty, both the Company’s ability to react quickly to changing circumstances and its high
degree of diversification have once again been proven to be important. While in the Refining & Marketing business
segment high refining margins led to a record result, the high energy prices in the chemical sector combined with a
decline in demand had a negative impact. Bolstered by high oil and gas prices, the Exploration & Production seg-
ment was able to make a significant contribution to the overall performance of the Company. All of this led to the
best result in the history of OMV.
We want to allow our shareholders to also benefit from this strong result and the stable financial situation. For this
reason, we promised a special dividend of EUR 2.25 per share during the course of the 2022 financial year, and
fundamentally expanded our dividend policy to include a special dividend instrument. For you, dear shareholders,
this means that we will be proposing a total dividend of EUR 5.05 per share to the Annual General Meeting for the
previous financial year.
As a Supervisory Board, our key priorities include the strategy, succession planning for Executive Board level,
governance topics, and the approval of larger investment projects. I’m able to report positive developments in all of
these areas. Below, I would like to inform you about the Supervisory Board’s work during the 2022 financial year.
After having initially focused predominantly on the strategy, we then moved on to the topics of corporate structure
and management (Strategy, Structure, People).
Composition of the Executive Board and Supervisory Board
In December 2021, the Supervisory Board approved the new strategy. Because the key points of this strategy re-
quire different skill sets and as we strive to achieve more diversity and internationality in general, a few amend-
ments were made to the composition of the Executive Board and the Supervisory Board in 2022. At the beginning
of 2023, a new organizational structure for the Group came into force – the business segments are now divided
into Fuels & Feedstock, which includes refining, marketing, and trading, Chemicals & Materials, which comprises
the entire chemicals value chain, and Energy, meaning the traditional exploration, production, and gas business,
plus the low-carbon business. Several changes to the composition of the Executive Board had already been made
in preparation for this new operating model:
The areas that were formerly the Refining and Marketing & Trading business segments were combined to form the
new Fuels & Feedstock business segment. Elena Skvortsova, Executive Officer Marketing & Trading, left OMV’s
Executive Board at the end of October 2022 by mutual agreement. At the meeting of October 27, 2022, the Super-
visory Board tasked Martijn van Koten, who had previously headed the Refining segment, with also leading the
Marketing & Trading business segment from November 2022 as a result of the consolidation to form the new
Fuels & Feedstock segment from January 2023. As a manager, Martijn van Koten has an extraordinary wealth of
international experience in the refining and chemicals businesses, and places a strict focus on the market and cus-
tomers.
In November 2022, the Supervisory Board appointed external candidate Daniela Vlad as the new Executive Board
member in charge of the Chemicals & Materials business segment, which was previously led by Executive Board
Chairman Alfred Stern. She has been in this position since February 1, 2023. Daniela Vlad is a manager with
many years of international experience in the chemicals business and in leading strategic transformations. She
brings chemical and financial expertise and experience in the field of sustainable technical solutions, which are
indispensable for profitable growth with emphasis on sustainability and innovation.
Finally, at their meeting on December 13, 2022, the Supervisory Board appointed Berislav Gaso as Executive
Board member for the Energy business segment, effective from March 1, 2023. On the same day, Johann Plein-
inger handed in his resignation with effect from the end of 2022. To bridge the two-month gap, the Supervisory
Board entrusted Reinhard Florey with running the Energy agenda. Berislav Gaso is a proven energy expert with
extensive international experience of major transformations, and takes responsibility for exploration and production
activities in 13 countries.
14
OMV ANNUAL REPORT 2022 / REPORT OF THE SUPERVISORY BOARD
»
In 2022, we launched the
largest transformation in the
Company’s history. The
decisions taken around strategy,
structure, and management will
pave the way for a more
sustainable future.
MARK GARRETT
Chairman of the Supervisory Board
There were also changes to the Supervisory Board in 2022. At the Annual General Meeting of June 3, 2022, Edith
Hlawati, Robert Stajic, and Jean-Baptiste Renard were elected to the Supervisory Board. Christine Catasta,
Christoph Swarovski, and Cathrine Trattner resigned from the Supervisory Board. Edith Hlawati took on the role of
the first Deputy Chairwoman of the Supervisory Board.
There was one change to the employee representatives during 2022. Mario Mayrwöger was elected as successor
to Gerhard Singer on the Supervisory Board with effect from June 7, 2022.
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.
Following the Supervisory Board sign-off, the Executive Board presented the Strategy 2030 at the Capital Markets
Day in March. The aim of the strategy is for OMV to evolve into an integrated provider of sustainable fuels, chemi-
cals, and materials with a strong focus on solutions for the circular economy, and to achieve its goal of net zero
emissions by 2050.
The Sustainability and Transformation Committee of the Supervisory Board, founded at the end of 2021, got to
work in 2022. During four meetings, it addressed topics related to ESG, with the focus naturally being on climate
issues. The committee supports and oversees the transformation toward a more sustainable business model.
As Chairman of the Supervisory Board of a listed company, I really value discussions with, and feedback from,
investors. After two years of only being able to hold virtual meetings because of COVID-19, it was such a pleasure
to combine those virtual sessions with meetings in person with our large institutional investors, a voting rights con-
sultant, and two climate-protection-related associations of investors in Frankfurt and London in December 2022 as
part of a Governance Roadshow. The feedback we received reinforced our commitment to our transformation
strategy and confirmed our focus on ESG topics.
As in the past, training specifically designed for the Supervisory Board took place in 2022. The Supervisory
Board’s annual self-assessment, based on surveys, was supported by an external consultancy firm. The results
are used to help decide which issues and activities to prioritize in 2023.
15
OMV ANNUAL REPORT 2022 / REPORT OF THE SUPERVISORY BOARD
Activities of Supervisory Board committees
In 2022, the Presidential and Nomination Committee was mainly occupied with preparing to make decisions
about appointments to the Executive Board for the Fuels & Feedstock, Chemicals & Materials, and Energy busi-
ness segments. Furthermore, it focused on the issue of long-term Executive Board succession planning.
The Remuneration Committee handled the updates to the Remuneration Policy for the Executive Board, also
taking into account feedback from the capital markets. It also discussed and agreed on the contractual conditions
for the new members of the Executive Board, and the termination agreements for the Executive Board members
who resigned.
At the Annual General Meeting 2022, in addition to being presented with the Remuneration Reports for the Execu-
tive Board and Supervisory Board, shareholders were able to vote on the revised Remuneration Policy for the Ex-
ecutive Board. In this policy, the performance criteria and all variable remuneration elements had been adjusted
according to the new Strategy 2030, and ESG criteria were more strongly weighted.
In 2022, 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 OMV Group’s long-standing annual auditor,
Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H., was present at every meeting of the Audit Committee with
one exception – the meeting that took place as part of the selection process for the Group’s auditor where other
auditing companies were presenting to the committee. At the ordinary Annual General Meeting in 2023, the elec-
tion of a new auditing company will be on the agenda.
Meetings of the Portfolio and Project Committee are held regularly prior to the meetings of the Supervisory
Board. The committee used its meetings in 2022 to prepare decisions regarding key investment and M&A projects
on the basis of extensive information and intensive discussions.
The newly formed Sustainability and Transformation Committee met four times in 2022. Its tasks include over-
seeing the strategy in terms of sustainability, ESG standards, performance, and processes, including HSSE and
climate protection in particular.
Further details regarding the activities of the Supervisory Board and its committees can be found in the (Consoli-
dated) Corporate Governance Report.
16
OMV ANNUAL REPORT 2022 / 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 2022 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 2022 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 reviewed 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 its review, the Supervisory Board considered appropriate the Executive Board’s proposal to the Annual
General Meeting to distribute (i) a regular dividend of EUR 2.80 per share, which corresponds to an increase of
EUR 0.50 over the previous year, and (ii) a special dividend of EUR 2.25 per share, and supported this resolution
proposal. The remaining amount of the net profit after the dividend distribution will be carried forward to new ac-
count. The Supervisory Board will review the separate consolidated non-financial report (Sustainability Report)
individually, and this report will be published separately 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 2022 financial year, which was marked by so much uncertainty.
I would like to give special thanks to OMV’s shareholders for their continued trust as well as to all of OMV’s cus-
tomers and partners.
Vienna, March 9, 2023
For the Supervisory Board
Mark Garrett m.p.
17
OMV ANNUAL REPORT 2022 / OMV ON THE CAPITAL MARKETS
OMV on the Capital Markets
2022 was a difficult year for global equities. High inflation, the Ukraine war, and Chinese COVID-19
lockdowns were the main culprits. Oil and gas stocks strongly outperformed the market, mainly due to
high commodity prices. While OMV fared better than the ATX and the wider European market, it lagged
behind its peers, weighed down by concerns triggered by the Ukraine war.
Financial markets
High inflation rates, the Ukraine war, and China’s zero-
COVID-19 policy were the main reasons why the per-
formance of European equities was exceptionally weak
in 2022. With the global MSCI World Index and Eu-
rope’s STOXX 600 down 18% and 13% respectively
according to Bloomberg, the yearly performance was
the worst since the global financial crisis in 2007/2008.
Fixed income could not help in the same way as it often
does when equities are down. The high inflation rate
drove central banks around the world to hike interest
rates. The resulting tighter liquidity and raised volatility
negatively affected bond market performance. On the
flip side, interest on traditional “risk-free” savings ac-
counts recovered in such a way that they are once
again an attractive investment vehicle for the first time
in over a decade.
In a comparison of all sectors, energy equities per-
formed best in Europe and the United States. This was
mainly a consequence of surging energy prices, which
were principally caused by supply concerns fueled by
the war in Ukraine.
On the crude oil side, the strength of the Brent price in
the first half of 2022, driven by strong demand and
Russian supply concerns, turned into a gradual decline
mid-year that lasted through the remainder of the year.
This was caused by the interest rate hikes and the
COVID-19 lockdowns in China, which weighed on de-
mand. However, the 2022 average of the Brent price
was clearly above that of the three respective prior
years.
Benchmark prices for natural gas spot trading at Eu-
ropean hubs continued at a record-high level during
most of 2022, with a surge to unprecedented levels to-
ward the end of the summer. Prices were mainly driven
by the fear of a supply shortfall during the winter heat-
ing season, as it was unclear whether European stor-
age operators would receive sufficient volumes from
Russia and whether it can potentially be replaced by
deliveries from alternative sources like LNG and piped
gas from Norway.
Only toward the end of the year did European natural
gas spot prices recede back to normal levels, as it be-
came clear that storage facilities would be filled suffi-
ciently and a looming supply shortfall would most likely
be averted. Added to that was the unusually mild
weather at the beginning of winter and the perspective
of expanding supply from sources other than Russia,
with Germany’s first LNG import terminal commencing
operations in December.
At a glance
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 ratio3
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 %
2022
327.1
15.7
9.8
58.26
36.02
48.10
11.12
58.55
23.73
5.05
45
10.5
1
2021
2020
2019
327.0
16.3
10.4
55.00
32.74
49.95
6.40
47.41
21.47
2.30
36
4.6
57
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
2018
326.7
12.5
9.1
56.24
37.65
38.25
4.40
36.44
13.46
1.75
40
4.6
(25)
1 As of December 31
2 Cash flow from operating activities, based on total weighted average outstanding shares
3 2022: as proposed by the Executive Board, subject to review by the Supervisory Board; subject to approval by the Annual General Meeting 2023. Includes regu-
lar and special dividends
4 Assuming reinvestment of the dividend
18
OMV ANNUAL REPORT 2022 / OMV ON THE CAPITAL MARKETS
OMV share performance
Starting the year at EUR 49.95, OMV’s share price was
approaching EUR 60 in mid-February (year high of
EUR 58.26 reached on February 11). With the subse-
quent outbreak of the Ukraine war, the stock lost al-
most a third of its value within less than three weeks.
However, while having to change the consolidation
method for its Russian operations, OMV could prove to
investors that the company was able to continue to op-
erate with high profits despite the changed circum-
stances. By early June, on the back of solid results and
a higher dividend payment (EUR 2.30 per share),
OMV’s share price was back above EUR 55 each.
In the following weeks, the financial consequences of
the technical incident at the Schwechat refinery in con-
junction with the general natural gas supply insecurity
in Europe and the natural gas trading difficulties cre-
ated by the war in Ukraine led to a new downturn in
OMV’s share price, resulting in the year’s low of EUR
36.02 on September 23.
Persistent exceptional profitability, improving visibility
regarding the supply of natural gas during the heating
season, and the introduction of a new and additional
special dividend option and the announcement of one
helped the share price recover to the high forties during
the final two months of the year.
OMV’s share price closed the year at EUR 48.10. The
average daily trading volume of OMV shares in 2022
was 420,539 shares (2021: 451,538). At year end,
OMV’s total market capitalization stood at EUR 15.7
bn, compared to EUR 16.3 bn at the end of 2021.
OMV share price performance 2022
In EUR
OMV’s share price declined by 3.7% across 2022, thus
showing a slightly better performance than the wider
Euopean market (FTSE Eurotop 100: –7.1%) and a sig-
nificantly better performance than the Vienna Stock Ex-
change’s blue chip index ATX (–19.0%). However, the
stock underperformed compared to the European oil
and gas sector (FTSEurofirst 300 Oil & Gas +26.9%).
Assuming dividend reinvestment, the total shareholder
return for the year was 0.8%. Measured over a five-
year period, OMV generated a better return. A EUR
100 investment in OMV stock at year end 2017 with
continuous dividend reinvestment in further OMV stock
would have grown by an average annual return rate of
2.7% to EUR 114 at year end 2022.
19
OMV ANNUAL REPORT 2022 / OMV ON THE CAPITAL MARKETS
OMV shares: long-term performance compared with indices
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 2022 and was as follows at year end:
43.1% free float, 31.5% Österreichische Beteiligungs
AG (ÖBAG, representing the Austrian state), 24.9%
Mubadala Petroleum and Petrochemicals Holding
Company (MPPH), 0.4% employee share programs,
and 0.1% treasury shares.
Shareholder structure
In %
Proposed regular dividend of EUR 2.80
and special dividend of EUR 2.25 per
share for the business year 2022
On June 3, 2022, OMV’s Annual General Meeting ap-
proved a regular dividend of EUR 2.30 per share for
2021, as well as all other agenda items, including the
new Remuneration Policy for the Executive Board and
Supervisory Board, the Long-Term Incentive Plan
2022, and the Equity Deferral 2022. Supervisory Board
elections were also held.
For the upcoming Annual General Meeting (to be held
May 31, 2023), the Executive Board will propose a reg-
ular dividend of EUR 2.80 per share, plus a special divi-
dend of EUR 2.25 per share for 2022. This represents
an annual increase of the regular dividend of 22%.
Based on the total amount of dividends paid (regular
plus special) of EUR 5.05 per share, the dividend yield
calculated using the closing price on the last trading
day of 2022 amounts to 10.5%.
Amended 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 its regular dividend every year or at least to
maintain the level of the respective previous year.
In addition, OMV has added special dividends as a
new, additional instrument to the existing dividend pol-
icy. If the leverage ratio is below 30%, OMV aims to
distribute approximately 20–30% of the OMV Group’s
operating cash flow (including net working capital ef-
fects) per year to its shareholders through its regular
dividend, as a priority, and additionally, if sufficient
funds are available, through the new instrument of a
special dividend. In case of a leverage ratio of 30% or
higher, OMV’s progressive regular dividend will be
maintained, but no special dividend shall be paid.
20
OMV ANNUAL REPORT 2022 / OMV ON THE CAPITAL MARKETS
An analysis of our shareholder structure carried out at
the end of 2022 showed that institutional investors held
30.8% 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 24%, German share-
holders made up 11%, and those based in France 9%.
The share of investors from Austria was 6%, and Nor-
wegian investors represented 2%.
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 2022, OMV held a to-
tal of 201,674 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 ranked as best in class in various
ESG ratings in 2022. OMV received an AAA, the high-
est score, in the MSCI ESG Ratings assessment for the
tenth year in a row. This places OMV among the top
10% of oil and gas companies globally. OMV also
maintained its Prime status in the ISS ESG rating with
a score of B–. This ranks us among the top 10% of oil
and gas companies in terms of ESG performance.
OMV’s Sustainalytics ESG Risk Rating now stands at
27.4 (from 26.7 previously), with a confirmed medium
risk rating.This puts us in the top seventh percentile of
oil and gas producers. OMV was also recognized by
CDP with a score of A– (Leadership) in the Climate
Change category for the seventh year in a row, 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 indices. Most
notably, OMV was included in the Dow Jones Sustaina-
bility™ Indices (DJSI World and DJSI Europe) for the
fifth year in a row as the only Austrian company. OMV
attained a score in the 97th percentile of its industry in
S&P Global’s Corporate Sustainability Assessment
(CSA), the basis of the DJSI, in 2022. The DJSI World
Index represents the top 10% of the largest 2,500 com-
panies 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 indices, such
as the S&P Europe 350®, which is based on the S&P
Global CSA (like the DJSI). OMV is included in many
MSCI indices, such as the prestigious ACWI ESG
Leaders Index and the ACWI Low Carbon Leaders In-
dex. Furthermore, OMV maintained its position in the
FTSE4Good Index Series, which is used by a wide va-
riety of market participants to create and assess re-
sponsible investment funds, and maintained its inclu-
sion in the STOXX® Global ESG Leaders index (based
on OMV’s assessment by Sustainalytics).
21
OMV ANNUAL REPORT 2022 / OMV ON THE CAPITAL MARKETS
Credit ratings: Fitch upgraded outlook
Investor Relations activities
OMV is rated A– by Fitch and A3 by Moody’s (both with
a stable outlook). While Moody’s did not take any rating
action during 2022, Fitch confirmed OMV’s A– rating
and revised its outlook from “negative” to “stable” on
March 28, 2022. Fitch’s outlook revision reflects its ex-
pectations of OMV’s strong financial performance
based on its higher oil and gas price assumptions, and
OMV’s new strategy gradually focusing on chemicals
and materials, as well as sustainable fuels. This was
confirmed on October 14, 2022. Moody’s confirmed its
rating and outlook for OMV in early 2023.
Analyst coverage
During 2022, the total number of sell-side analysts cov-
ering OMV’s share increased to 22, up from 21 at the
end of 2021. This development further improves the
visibility of OMV in the financial community. AlphaValue
and Bank Pekao joined the list of covering brokerages,
while Concorde Securities discontinued coverage. The
majority of recommendations are “buy” or equivalent,
with a share of 62% of all recommendations at the end
of 2022. “Hold” recommendations slightly decreased to
33% and there was one “sell” recommendation (com-
pared to 0 last year), representing a share of 5% of all
recommendations. Following the share price develop-
ment, the average target price for OMV decreased
slightly to EUR 58.80 at the end of 2022, from EUR
59.83 per share a year earlier.
OMV’s Investor Relations department continued the in-
tensive dialogue with the capital market during 2022.
The main event of the year was the presentation of
OMV’s new Strategy 2030 at a Capital Markets Day
held virtually on March 16. In the days that followed, a
multitude of virtual conversations took place, giving
OMV’s executives a chance to lay out the details of the
new strategy to analysts and investors.
Beginning in June 2022, easing pandemic restrictions
allowed the gradual restart of a selection of in-person
meetings with international investors, always in strict
compliance with the respective health and safety regu-
lations. In addition to these in-person meetings, the fa-
miliar routine of virtual meetings remained in place, re-
ducing the time, costs, and carbon emissions of Inves-
tor Relations activities.
In December 2022, OMV organized a governance road
show with the Chairman of the Supervisory Board, both
virtually and physically, in London and Frankfurt, con-
tinuing the dialogue with the governance experts of
some of our largest shareholders.
Overall, the Investor Relations department again ful-
filled its mission to provide comprehensive insight into
OMV’s strategy and business operations to all capital
market participants, thereby guaranteeing equal treat-
ment of all stakeholders. In this way, OMV’s Executive
Board was able to continue the constant dialogue with
investors and analysts in Europe, North America, and
Asia throughout 2022, regardless of the restrictions im-
posed to control the pandemic.
22
DIRECTORS’ REPORT
23 — 91
25 — About OMV
28 — Market Outlook
31 — Strategy
38 — Sustainability
44 — Health, Safety, Security, and Environment
47 — Employees
50 — OMV Group Business Year
62 — Chemicals & Materials
70 — Refining & Marketing
75 — Exploration & Production
82 — Outlook
83 — Risk Management
88 — Other Information
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
24
OMV ANNUAL REPORT 2022 / 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 with a special focus on circular economy. In 2022, Group sales
amounted to EUR 62 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 22,300 employees work at its
integrated European sites.
Our purpose
In 2022, OMV implemented a new Group-wide purpose
as a fundamental part of our new strategy for becoming
a leading company in sustainable fuels, chemicals, and
materials. Our new purpose, “Re-inventing essentials
for sustainable living,” guides the Company like a North
Star, toward its goal of becoming a net-zero emissions
company. To ensure this purpose is fully embraced, we
have designed new values and behaviors that align
with our new direction. The new values will be launched
in 2023, to empower our employees and drive our
Company toward a sustainable future.
Our business segments
In Chemicals & Materials, OMV is one of the world’s
leading providers of advanced and circular polyolefin
solutions with total polyolefin sales of 5.7 mn t in 2022
(2021: 5.9 mn t). It is also a European market leader in
base chemicals, fertilizers1, and plastics recycling. The
Company supplies services and products to customers
worldwide through OMV and Borealis, and its two joint
ventures: Borouge (with ADNOC, based in the UAE
and Singapore) and Baystar™ (with TotalEnergies,
based in the US).
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 in the
UAE. OMV’s total global processing capacity amounts
to around 500 kbbl/d. Fuels and other sales volumes in
Europe were 15.5 mn t in 2022 (2021: 16.3 mn t) and
the retail network consists of around 1,800 filling
stations in ten European countries. In the Gas & Power
Eastern Europe business, OMV Petrom operates a
gas-fired power plant in Romania and is engaged in
gas and power sales. In 2022, natural gas sales
amounted to 36.2 TWh (2021: 39.6 TWh) and net
electrical output was 5.0 TWh (2021: 4.8 TWh).
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-Pacific2. Daily production
was 392 kboe/d3 in 2022 (2021: 486 kboe/d), with a
roughly equal share of natural gas and liquids produc-
tion. In the Gas Marketing Western Europe business,
OMV markets and trades natural gas with sales vol-
umes amounting to 111.2 TWh in 2022 (2021:
156.8 TWh). Furthermore, OMV operates natural gas
storage facilities with a capacity of 30 TWh and holds a
65% stake in the Central European Gas Hub (CEGH).
Our new corporate structure
To drive sustainable growth and innovation, starting
with January 1st, 2023, OMV reorganized its corporate
structure in three business segments: Chemicals & Ma-
terials, Fuels & Feedstock, and Energy.
For more information about the new corporate structure
and the Strategy 2030, see the chapter Strategy.
1 On June 2, 2022, Borealis received a binding offer from AGROFERT, a.s. for the acquisition of its nitrogen business including fertilizer, melamine and technical
nitrogen products.
2 On February 27, 2023, OMV announced the start of the sales process for its E&P business in the Asia-Pacific region.
3 Production figures in 2022 include 17 kboe/d from Russia (2021: 96 kboe/d); OMV no longer considers Russia a core region as of March, 2022. Furthermore,
Russian volumes are no longer included in total production, due to a change in the consolidation method.
25
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Our value chain
05 Refining
OMV operates three refineries in
Europe and holds a 15% share
in ADNOC Refining in the UAE,
where it processes sustainable
and fossil-based feedstocks into a
wide range of refined products.
07
Base
Chemicals
Base chemicals are produced
at five major sites in Europe and
at the joint ventures of Borealis,
Borouge and Baystar. Most of the
base chemicals are processed
internally into polyolefins.
09
Mechanical
Recycling
Borealis runs four mechanical
recycling plants in Austria and
Germany, where plastic waste
is processed into high quality
recyclate.
06
Chemical
Recycling
OMV is currently constructing a demo plant
based on its proprietary ReOil® technology
which will turn plastic waste, not fit for me-
chanical recycling, into valuable resources.
In addition, Borealis has a controlling stake
in Renasci, a Belgian provider of innovative
recycling solutions.
03
Circular
Resources
OMV aims to further increase its
use of circular resources such as
bio-feedstocks, for example waste
and residue streams, as well as
cultivated algea, plastic waste,
and green hydrogen. Furthermore,
OMV is also actively looking into
synthetic fuels and feedstocks
based on CO2.
0(cid:22)
03
0(cid:10)
0(cid:8)
0(cid:4)
02
Renewable
Energy
OMV is utilizing renewable energy, such as
photovoltaic, primarily for powering its own
operations, and plans to build up a renew-
able energy portfolio with a strong focus on
geothermal energy.
0(cid:20)
01
Hydrocarbon
Production
OMV explores, develops, and
produces hydrocarbons (crude oil,
natural gas and NGL).
Circular Resources
and Products
Crude Oil and Hydrocarbon
Products
01
Natural Gas
Electricity
a
b
c
d
e
1(cid:22)
11
0(cid:6)
1(cid:4)
1(cid:6)
0(cid:14)
13
10
1(cid:20)
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
a
b
c
11
16 Industries
Through Borealis, OMV provides innovative
and value creating plastics solutions to five
end-use industries:
a Consumer
Products
c Healthcare
b Energy
d Infrastructure
e Mobility
d
e
1(cid:22)
1(cid:4)
1(cid:6)
0(cid:14)
0(cid:20)
0(cid:6)
15
Fuels &
Others
OMV sells its refined products via
several retail filling station brands
and also serves a large base of
commercial customers.
14
Crude Oil
& NGL
Crude oil and NGL are marketed
on global markets, while Austri-
an and Romanian production is
predominantely supplied to OMV’s
refineries.
11 Polymers
Through Borealis, OMV is one
of the largest polyolefin (poly-
ethylene and polypropylene)
producers in Europe and among
the top ten producers globally,
serving customers in more than
120 countries.
13
10
1(cid:20)
13 Natural Gas
OMV markets natural gas, from
equity production and third-par-
ty supply, in several European
countries.
12 Electricity
OMV Petrom is a licensed power
supplier in Romania and offers
solutions for the electricity supply
to end customers.
04
Supply
& Trading
OMV markets and trades
crude oil, natural gas, and re-
fined products on global mar-
kets, with a focus on securing
supply and generating value.
08
Natural Gas
Storage
OMV runs natural gas storage
facilities, which are well
connected to the pipeline grid
and in the vicinity of important
urban areas of consumption.
10
Gas Fired
Power Plant
In Romania, OMV Petrom pro-
duces electricity in a gas-fired
combined-cycle power plant.
0(cid:22)
03
0(cid:4)
0(cid:10)
0(cid:8)
01
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Market Outlook
Inflation and significant reductions in the availability of Russian commodities, especially natural gas, in
Europe following the removal of almost all Russian supply to the region, were the key causes of a
substantial increase in global energy prices in 2022, leading to the “first global energy crisis” as
described by the IEA. This has amplified the incentive for Europe to further diversify and decarbonize its
energy supply. High prices, in particular for gas and electricity, have put the focus back on security of
supply.
2022 was something of a watershed year in energy mar-
kets. Consumers and central banks across the globe were
faced with the challenge of rapidly rising inflation already at
the end of 2021 and the early part of 2022, and this was
before the picture was further complicated by the Russian
invasion of Ukraine at the end of February. Significant re-
ductions in the availability of Russian energy, especially
natural gas, in Europe following the removal of almost all
Russian supply to the region were the key causes of a
substantial increase in global energy prices in 2022. En-
ergy commodities ended up being one of the few asset
classes to post gains during 2022, as inflation and subse-
quent rapid interest rate hikes by central banks saw a
broad-based sell-off of riskier assets and the long bull mar-
ket in equities came to an end.
The developments in energy markets during 2022 have
been described as the “first global energy crisis” by the
IEA’s Fatih Birol. With natural gas in Europe averaging at
several times its value from the last few years, the
incentive for Europe in particular to further diversify and
decarbonize its energy supply has been amplified. This
urgency was reflected in the political landscape of 2022.
The RePowerEU program and the Inflation Reduction Act
in the US in particular will provide significantly expanded
provision and financial support for the build-out of clean
energy over the coming years.
The goal of achieving net zero emissions by the middle of
the century has never been shared by more governments
and corporations. As of the end of 2022, countries repre-
senting more than 90% of global GDP had made a com-
mitment to net zero emissions. An increase of 10 percent-
age points compared to the end of 2021, according to the
University of Oxford’s Net Zero Tracker. Emissions cover-
age has increased by an estimated 6 percentage points to
83%, compared to 2021. While this trend is encouraging,
the hurdles to achieving these goals remain significant.
In particular, the events of 2022 and the accompanying
high prices, especially for gas and electricity, have put the
focus back on security of supply. Europe’s natural gas in-
frastructure is being rapidly retooled to shift from a high de-
pendency on pipeline imports of gas from the east to a
more diversified portfolio that includes much larger vol-
umes of LNG from the global seaborne market. The ur-
gency of ensuring basic supplies of energy to consumers
and businesses took precedence over long-term decar-
bonization goals during 2022, and it is entirely possible
that this will be the case again over the next couple of
years. Associated trends, such as resurgent coal demand
for power generation and subsequent higher emissions in-
tensity, can also be expected to recur. At the end of 2022,
policymakers were occupied with the question of how se-
vere recessionary effects will be during 2023, especially in
Europe, where many observers have pointed to an exis-
tential threat to the viability of the regional manufacturing
base.
Nevertheless, over the medium and long term, OMV fully
expects the structure of energy supply and demand to un-
dergo drastic changes as efforts are made at varying
speeds and with varying degrees of success to decarbon-
ize electricity production, transport, industry, and other car-
bon-intensive sectors of the global economy. A viable path
to a net zero global energy system by the middle of the
century has to include a diverse range of technologies be-
ing employed in place of the traditional fossil and biomass
energy sources. No single energy source should account
for more than a quarter of total primary energy supply by
2050, according to the most recent update of the IEA’s Net
Zero Emissions by 2050 Scenario.
On a global level, there remains a significant implementa-
tion gap – the difference between the combined pledges
on emissions reductions and the actual measures that
have been taken to achieve them. Compared to 2021, ad-
ditional announced pledges on emissions reductions from
India and Indonesia have served to reduce the perceived
gap between announced pledges and a net zero energy
system. However, major uncertainty remains. This is re-
flected in the range of modeled shares of the different en-
ergy sources in the IEA’s most recent World Energy Out-
look: By the end of this decade, oil and gas will supply only
46% of total global primary energy in the net-zero scenario
(down from 53% in 2021). However, this number remains
essentially unchanged in the IEA’s Stated Policies Sce-
nario (STEPS) by 2030, and falls only to 47% by the mid-
dle of the century.
28
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
IEA scenarios based on stated policies and announced
pledges foresee oil demand remaining robust at least
through to the end of the decade (these scenarios assume
compound annual growth rates of 0.8% and 0.2% respec-
tively through to the end of the current decade for total
global energy supply). In these environments, the question
of underinvestment in upstream oil and gas remains a per-
tinent one for the energy system as a whole. Various anal-
yses have shown that capital expenditure in E&P has so
far not responded to the marked increases in oil and gas
prices observed since the depths of the pandemic-related
sell-off in the middle of 2020 in the same way that was
characteristic of previous commodity cycles.
World total primary energy supply 1
In EJ
In addition to an entrenched demand-decline trend in
the domestic market, the European refining industry is
likely to face ongoing headwinds in the form of higher
utility and fuel costs vs. the other refining hubs, espe-
cially those in the US and the Middle East. While these
higher costs are to some extent offset by higher market
prices for refined products, they are nevertheless ex-
pected to continue to weigh on European competitive-
ness. Meanwhile, consensus demand assumptions
continue to imply an advantage in the market for play-
ers with petrochemical integration. It is notable that,
even in the IEA’s Net Zero Emissions by 2050 Sce-
nario, oil demand for non-energy use falls by only 6%
by 2050 vs. 2021 levels (vs. a decline of almost 80%
for oil demand overall).
Global petrochemicals1 demand
In mn t
Source: IEA World Energy Outlook 2022
Despite these factors long term assumptions remain
largely unchanged. For example, the expectation that
advanced economies will see the most notable nega-
tive growth trends for fossil fuels over the medium and
long term remain in place. The EU sees faster declines
in oil demand than any other large country or region ex-
cept Japan in the IEA’s projections. The CAGR of EU
oil consumption for 2021–2030 is –2% in the STEPS,
falling to –3.8% in the Announced Pledges Scenario
(APS). China, the engine of global oil demand growth
over the last two decades, sees a CAGR on oil demand
of less than 1% up to 2030 even in the STEPS.
Source: Chemical Market Analytics by OPIS, a Dow Jones Company
1 Ethylene and propylene
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. By 2030, oil demand for chemical production will
rise by about 2% per year. Approximately 80% of
chemical and plastic demand growth will be concen-
trated in emerging markets, mainly Asia, until 2030 and
beyond. This region represents most of the global pop-
ulation growth and the corresponding potential for im-
proving living standards. 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 development, but growth rates are ex-
pected to slow.
Note: In its 2022 World Energy Outlook, the IEA did not include the Sustainable Development Scenario (SDS), which has been used as a reference point in the
past by OMV. In terms of cumulative emissions for the global energy system, the SDS is most closely comparable to the Announced Pledges Scenario (APS).
29
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 in-
crease almost threefold by 2030.
OMV uses two frameworks for future market assump-
tions. For 2022, these are positioned as follows:
1.
2.
A base case that assumes OECD economies fol-
low a decarbonization path more aggressive than
the IEA‘s Announced Pledges Scenario, but fall-
ing short of the net zero oil demand path, while
non-OECD economies progress in line with an-
nounced pledges.
A stress case that sees a faster transition away
from fossil fuels than that in the Sustainable De-
velopment Scenarioused in the 2021 IEA report,
though not as aggressive as the Net Zero Emis-
sions by 2050 Scenario. This stress case repre-
sents a trajectory for oil demand declines that
would correspond to the upper limit of the temper-
ature increases foreseen in the UN climate goals
from Paris, with net zero achieved in the global
energy system between 2050 and 2070.
For details on climate change-related risks and their man-
agement, see the chapter Risk Management and Note 2 of
the Consolidated Financial Statements, as well as the
OMV Sustainability Report.
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Global virgin polyolefin demand
In mn t
Source: Chemical Market Analytics by OPIS, a Dow Jones Company
Polyolefins are the largest market segment in produc-
ing plastic goods. Demand for virgin polyolefins will
continue to grow at a rate above global GDP until 2030,
driven by the Asian market. Polyolefins will remain es-
sential for various industries, including packaging, con-
struction, transportation, healthcare, pharmaceuticals,
and electronics.
Global recycled polyolefin demand
In mn t
Source: Chemical Market Analytics by OPIS, a Dow Jones Company
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.
30
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Strategy
OMV’s goal is to 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 to grow the
distributions to its shareholders. Re-inventing essentials for sustainable living is OMV’s purpose. 1
To drive sustainable growth and innovation, starting with
January 1st, 2023, OMV reorganized its corporate struc-
ture in three business segments: Chemicals & Materials,
Fuels & Feedstock, and Energy. Chemicals & Materials
continues to cover the entire chemicals value chain, in-
cluding responsibility for capturing value from the circu-
lar economy. Fuels & Feedstock combines the previ-
ously distinct Executive Board areas of Refining and of
Marketing & Trading. The Energy segment includes the
traditional Exploration & Production (E&P) business as
well as the entire gas business and the new Low-Car-
bon business focused on geothermal energy and carbon
capture and storage (CCS). As part of the introduction
of the new corporate structure, Gas & Power Eastern
Europe, which includes supply, marketing and trading of
gas in Romania and Turkey and one gas-fired power
plant in Romania, was transferred from Fuels & Feed-
stock to the Energy business segment.
Strategic cornerstones
OMV’s goal is to transform from an integrated oil, gas,
and chemicals company into a leader in innovative sus-
tainable fuels, chemicals, and materials, leveraging op-
portunities 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 is building on its strengths and seizing op-
portunities to position itself competitively.
2030 strategic priorities
▸ Become a net-zero emissions company by 2050;
reduce Scope 1 and 2 emissions by 30% and
Scope 3 emissions by 20% by 2030
▸ Develop into a global leader in specialty polyolefin
▸ Establish a global leadership position in circular
▸ Become a leading European producer of sustaina-
economy solutions
solutions
ble fuels and chemical feedstocks
▸ Reduce fossil production and shift to gas
▸ Enhance OMV’s shareholder value: deliver growth
with strong financials and reward its shareholders
through progressive regular dividend and special
dividends
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-
fin recycling and sustainable feedstocks and products,
as well as using neutralization measures such as CCS.
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 attractive shareholder distributions.
These are supported by sound capital allocation priori-
ties 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 green-
house gas (GHG) emissions. This strategy enhances
OMV’s shareholder value, as its transformation path al-
lows for a sustainable growth business model, showing
the Group’s commitment to cutting GHG emissions and
delivering strong financials and attractive shareholder
distributions.
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
Note: The financial targets for 2025 are based on the following market nominal price 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 nominal price 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/polypropylene indicator margin Europe of EUR 480/t.
31
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
existing polyolefins business, while also building a
strong and diversified chemicals and materials portfolio,
by expanding into adjacent businesses and new
product groups. To achieve this, OMV will target
investments and initiatives that improve its returns and
carbon footprint. 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 polyolefins 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 posi-
tion to develop innovative products and new business
models. The circular economy is crucial for a long-term
sustainable chemicals business. Thus, a transition to-
ward an economically viable commercial scale is
needed. In this context, the Group’s target is to deliver
around 2 mn t of sustainable Chemicals & Materials
products by 2030. 80% of these volumes are planned
to be produced in Europe, which represents around
40% of OMV’s polyolefin production capacity in Europe.
OMV also aims to become a leading innovative pro-
ducer of sustainable fuels and chemical feedstocks. To
achieve this, the Company will optimize the interface
between oil and chemicals, with a focus on the inte-
grated Schwechat and Burghausen sites, by redesign-
ing plants to maximize high-value fossil resources, and
with a growing share of sustainable fuels and feed-
stocks for chemicals production. This will significantly
reduce diesel product output by 2030, while increasing
the chemical yield to around 24%. The production of re-
newable fuels and sustainable feedstocks will increase
to approximately 1.5 mn t, while crude oil distillation
throughput will decrease by 2.6 mn t. Furthermore,
OMV aims to become the first choice of our customers
for energy, mobility, and convenience, focusing on the
sale of sustainable aviation fuels, building an EV charg-
ing network and growing its non-fuel retail business.
In the Energy business, OMV is focusing on maximiz-
ing value and harvesting cash. OMV Energy will gradu-
ally reduce its fossil production to ~350 kboe/d by 2030,
with a share of around 60% of natural gas. In the same
period, OMV will make significant investments in low-
carbon solutions, namely in around 10 TWh of renewa-
ble energy (e.g., geothermal) and around 5 mn t p.a. of
CCS capacity by 2030 to reduce its GHG footprint. The
32
Energy business will act as a cash engine for the
Group and will support the transformation.
Chemicals & Materials (C&M)
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 chemical production capacity to
▸ Establish a leading position in renewable and circu-
▸ Diversify portfolio by entering adjacent products
lar economy solutions
up to 2 mn t
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 global GDP with a CAGR (2022–2030) of
4.1%. Most 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 (2022–2030) of 12%, significantly above
GDP, thanks to strong end-market commitments espe-
cially in the consumer goods sector, increasing regula-
tory pressure, and the need for end-of-life solutions 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-
mental pollution, unnecessary emissions, and accumu-
lation of microplastics. Transforming the value chain
from a linear into a circular model will be one of the pri-
orities for a sustainable chemicals business going for-
ward. However, this requires a profound transformation
to enable scale at attractive profitability. Current feed-
stock accessible directly from recycling is limited. For
this reason, tapping into upstream and downstream
feedstocks, primarily through partnerships, is critical to
ensuring sufficient access to plastic waste. Partner-
ships with brand owners and retailers ensure attractive
long-term offtake agreements with green product pre-
miums. In addition, the future operating model needs to
be set up to rapidly respond to changing customer and
regulatory demands, with a primary focus on the ad-
vanced European landscape but also on the ability to
quickly roll out successful blueprints globally.
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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 decrease the Group’s carbon foot-
print.
C&M has a strong pipeline of organic growth projects in
Europe, the Middle East, and North America.
Key growth initiatives include:
▸ Expansion of the Burghausen naphtha-based
▸ Expansion of propylene production capacities in
steam cracker (2022)
Belgium. Building a 750,000 t propane dehydro-
genation (PDH) plant in Kallo, which is expected to
start up in 2024.
▸ 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 annually. The steam cracker started up in
2022, and the polyolefin plant is expected to start
up in the first half of 2023.
▸ Expansion of Borouge JV through Borouge 4 build-
ing an ethane-based steam cracker of 1.5 mn t and
polyolefin plants with a capacity of 1.4 mn t. The
steam cracker and polyolefin plants are expected to
start up at the end of 2025.
The C&M business is seeking to strengthen its polyole-
fin and specialty product portfolio, securing attractive
margins. The business aims to grow in Asia and to
strengthen its North American footprint via organic and
inorganic investments. In addition, to further broaden its
portfolio, C&M aims to tap into adjacent pockets of
value creation and develop a more broadly diversified
chemicals leadership position, primarily through M&As.
Key growth initiatives via organic or inorganic invest-
ments include building a polypropylene position in
North America, growing in differentiated specialty prod-
ucts, and growing 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.
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, with a focus on Europe:
40% of OMV’s polyolefin production capacity in Europe
is planned to be sustainable. This will be accomplished
by accelerating ongoing (advanced) mechanical and
chemical recycling initiatives in Europe, as well as by
using bio-feedstocks. The sustainable products will be
the result of the increasing use of bio-monomers for
polyolefins and the broader chemicals portfolio, and
leveraging the close integration with OMV’s Fuels &
Feedstock business. Building on its European sustaina-
bility leadership, C&M will utilize its global footprint to
expand circular economy solutions globally with exist-
ing joint ventures, new growth plat-forms, and addi-
tional 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. in 2022–2030, EUR 0.3 bn
p.a. of which will be allocated to sustainable and CO2
emissions reduction projects.
Fuels & Feedstock (F&F)
Strategic priorities
▸ Increase chemical yield to 24% in Western refiner-
▸ Grow the production of renewable mobility fuels
ies
and sustainable chemical feedstocks to approxi-
mately 1.5 mn t, while reducing crude oil distillation
throughput by 2.6 mn t
▸ Market at least 700,000 t of sustainable aviation
▸ Invest in an EV charging network and significantly
fuels
increase margin contribution from the non-fuel retail
business
▸ Significantly reduce absolute Scope 1, 2, and 3
emissions
OMV aims to become a leader in renewable and circu-
lar chemicals and materials. To achieve this goal, the
Group plans to capture emerging renewable and circu-
Going forward, F&F will reshape its product portfolio,
building on renewable mobility fuels and sustainable
chemical feedstocks. The Company is focusing on
safe, innovative, and ecologically and economically
33
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
sustainable operations. As a result, F&F will enable the
transformation to low-carbon operations and sales
while maintaining 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. F&F will proactively decrease crude oil distilla-
tion throughput in the Schwechat and Burghausen re-
fineries, 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 F&F 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. 80% of 2030 OMV’s feedstock requirements al-
ready has a clear sourcing plan.
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 with a grow-
ing share of sustainable feedstocks for chemicals pro-
duction. OMV will continue to operate its three Euro-
pean refineries in Austria, Germany, and Romania as
an integrated system, optimizing asset utilization and
maximizing margins. Furthermore, the Company is im-
plementing 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 the UAE (ADNOC Refining) and Pakistan
(PARCO) is to improve their commercial performance.
The focus in the short to mid-term will be on operational
excellence and performance culture at each asset. In
the mid to long term, OMV will evaluate commercial op-
tions for the production of sustainable mobility fuels and
chemical feedstocks.
The F&F activities in Europe secure OMV’s customer
and market access. In line with changing demand pat-
terns, as well as regulatory obligations, OMV will gradu-
ally transform its product portfolio to include more sus-
tainable fuels and services by 2030, thereby increasing
34
the resilience of its product mix. OMV will build a grow-
ing business for sustainable aviation fuels (SAF) in
Central Europe by establishing new market positions in
the vicinity of planned production sites. F&F will market
at least 700,000 t of SAF by 2030. OMV will aim to
grow SAF sales volumes significantly beyond the
planned regulatory framework and will target the grow-
ing voluntary compliance market. Simultaneously, F&F
will sustain its position of bitumen and marine fuel oil to
safeguard refinery utilization, while continuing to evolve
these products to lower GHG emissions.
In Retail Mobility & Convenience, OMV intends to fur-
ther develop existing market potential by significantly
growing the non-fuel business sector. New gastronomy
and service 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 margin generator by 2030. OMV Retail
Mobility & Convenience will expand into e-mobility,
building a leading position in out-of-home Electric Vehi-
cle (EV) charging locations such as highway and transit
refilling stations, as well as convenience hubs. With a to-
tal investment in this segment of more than EUR 400
mn by 2030, OMV will grow the profitability of the retail
business as well as monetizing the value of its assets.
Total organic investments in the F&F business will av-
erage EUR 1 bn p.a. in 2022–2030, EUR 0.5 bn p.a. of
which will be allocated to sustainable and carbon emis-
sions reduction projects.
With this new strategy, OMV will accelerate the attain-
ment of its goal of lowering GHG emissions by reducing
fossil fuels, stepping up the production and marketing
of renewable fuels and sustainable chemical feed-
stocks, and implementing energy efficiency measures.
Energy
2030 strategic priorities
▸ Portfolio managed as a robust cash generator to
▸ Production is expected to decline to ~370 kboe/d by
support the Group’s transformation
2025 and ~350 kboe/d by 2030, excluding any po-
tential divestments
▸ Low-carbon business solutions will be developed,
with around 10 TWh in renewable energy (e.g., ge-
othermal) and around 5 mn t p.a. CCS, to signifi-
cantly reduce absolute and relative GHG emissions
▸ Upon evaluation of its portfolio, OMV announced
the start of the sales process of its E&P assets in
the Asia-Pacific region
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
In the context of the ongoing energy transition and to
support the OMV Group’s transformation, Energy will
be managed as a robust cash generator and will focus
on further upgrading its competitive asset portfolio, con-
centrating on the three core regions: Central and East-
ern Europe, the North Sea, and Middle East and Africa.
The shift of the hydrocarbon portfolio to gas will con-
tinue, with further divestments of non-core positions to
improve efficiency, while the low-carbon business will
be ramped up to achieve a material contribution by the
end of the decade. On February 27, 2023, OMV an-
nounced that it started the sales process for the divest-
ment of its E&P assets in the Asia-Pacific region: a
50% stake in SapuraOMV Upstream Sdn. Bhd. and
100% of the shares in OMV New Zealand Limited.
Starting with 2023, the Energy business incorporates
the entire value chain of gas, as Gas & Power Eastern
Europe, which includes Supply, Marketing and Trading
of gas in Romania and Turkey and one gas-fired power
plant in Romania, was transferred from Fuels & Feed-
stock to the Energy business segment.
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, and the Umm Lulu SARB Phase 2 plateau
extension in the UAE, will support strong cash genera-
tion by and beyond 2025. OMV expects production lev-
els of ~370 kboe/d by 2025 and ~350 kboe/d by 2030,
with a share of around 60% of natural gas, excluding
any potential divestments. In order to sustain the
above-mentioned production levels, ramp up the low-
carbon business, and deliver strong cash generation,
OMV Energy anticipates a total annual average CAPEX
in 2022–2030 of around EUR 1.6 bn, EUR 0.6 bn of
which are earmarked for low-carbon activities. OMV’s
exploration and appraisal activities are being stream-
lined further, and the total annual average budget is ex-
pected to be around EUR 0.2 bn over the decade. To-
ward the end of the decade, oil and gas CAPEX and
E&A expenditure will be reduced, thereby allowing for
more capital to be allocated to ramping up the low-car-
bon business and the broader OMV transformation.
OMV Energy plans to reinforce the competitiveness of
its portfolio and resilience through a strong focus on op-
erational excellence, fostered by digitalization and agile
ways of working, as well as portfolio optimization.
To supply its gas customers, OMV will continue to com-
plement its own natural gas production in Norway, Aus-
tria, and Romania with third-party supply sources on
which the Group is working to diversify. The equity gas
contribution to the gas sales business will decrease sig-
nificantly toward the end of the decade in the North-
western European region due to natural fields decline,
and, as needed, will largely be replaced with green
gases, such as biogas and hydrogen, primarily ob-
tained from the markets, to reduce the carbon intensity
of its product portfolio. New equity gas volumes from
the Romanian Neptun project will keep volumes high in
Southeastern Europe. OMV will also aim to direct an in-
creasing share of its natural gas sales to customers
from non-energy sectors, 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 Energy business and support a potential ac-
celerated transition to sustainable fuels, chemicals, and
materials. These opportunities may include capturing
the full value potential of the asset base, e.g., low-car-
bon business potential, maintaining reservoir produc-
tion excellence, and optimizing costs as well as as-
sessing and developing joint venture opportunities for
selected assets without excluding inorganic options.
To reduce its operational carbon footprint, OMV Energy
will pursue the phase-out of routine gas flaring and
venting, reduce fugitive methane emissions, and intro-
duce portfolio optimization measures. In addition, re-
newable energy projects will also be pursued for the
purpose of powering OMV’s own operations, such as
the photovoltaic plant developed with VERBUND in
Schönkirchen (Austria). To achieve an overall reduction
of both absolute and relative GHG emissions from its
product portfolio, OMV Energy will leverage its existing
asset base and core skills to deliver financially strong
low-carbon business projects. Available opportunities
will be captured to build up geothermal energy capacity
that generates up to 9 TWh p.a. by 2030. In addition to
geothermal, around 1 TWh from renewable power will
be developed in OMV core regions with favorable sun
and wind conditions to serve primarily captive demand,
thereby reducing Scope 2 emissions by OMV’s own op-
erations. The Energy business will further tap its exist-
ing reservoirs and (sub-)surface capabilities to imple-
ment opportunities that lead to a CCS capacity of ap-
proximately 5 mn t p.a. of CO2 net to OMV by 2030. In
addition, further opportunities where OMV Energy can
leverage its strengths and capabilities are being ex-
plored, e.g., hydrogen and energy storage, and will po-
tentially be pursued in consideration of OMV strategic
priorities.
35
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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%
All reduction targets are measured against a 2019
baseline.
OMV is committed to achieving net-zero emissions
(Scopes 1, 2, and 3) by 2050, with interim targets for
2030 and 2040. 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
Scopes 1 and 2, OMV aims for an absolute reduction of
30% by 2030 and of 60% by 2040. For the defined cat-
egories in Scope 3, OMV aims for an absolute reduc-
tion of 20% by 2030 and of 50% by 2040. In terms of
reducing the carbon intensity of energy supply, OMV in-
tends to achieve a decrease of 20% by 2030 and 50%
by 2040.
OMV has also voluntarily committed to apply the Oil
and Gas Methane Partnership 2.0 (OGMP 2.0) frame-
work. As a result, OMV committed to:
▸ E&P methane emissions accounting shall be in line
▸ Operated E&P asset must have a source-level
as a minimum with the OGMP 2.0 framework
measurement of methane emissions (OGMP 2.0
level 4) in three years at the latest
▸ Reduce methane intensity to 0.2% by 2025 and to
0.1% by 2030.
OMV awaits the publication of the science-based tar-
gets (SBT) methodology for the oil & gas sector to eval-
uate its targets against the SBT requirements and get
them approved by the Science Based Target initiative
(SBTi).
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 in 2022–2030, which repre-
sent around 40% of total organic CAPEX. All business
units will build on their existing strengths and know-how
on this transformation journey. Three key initiatives will
be undertaken to achieve the targeted reductions by
2030:
▸ 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, and build-up of photovoltaic electricity
capacity primarily for captive use as well as geo-
thermal energy
▸ Increase in Chemicals & Materials recycling and
sustainable feedstocks, and delivery of approxi-
mately 2 mn t p.a. of circular products: recyclate
production substituting fossil chemicals and materi-
als production and production from biogenic feed-
stock
Besides these efforts, neutralization measures will be
necessary. OMV anticipates that it will use around
5 mn t of CCS capacity across all business units. All
energy purchases will be 100% renewable. The inor-
ganic growth of the Chemicals & Materials business will
be executed in line with OMV decarbonization targets
with either decarbonization path-ways 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 of ≥12% in the mid and long term
▸ Ensure sound capital allocation priorities: organic
CAPEX, dividend, inorganic growth, deleveraging
and special dividends1
▸ Maintain strong balance sheet, with a mid/long-term
▸ Distribute around 20% to 30% of operating cash
leverage ratio below 30%
flow (including net working capital effects) per year
to its shareholders through its regular dividend, as a
priority, and additionally, if sufficient funds are avail-
able, through special dividends, when leverage ra-
tio is below 30%
▸ Commit to attractive shareholder distributions
1 Depending on OMV’s leverage ratio, the order between inorganic growth and deleveraging can reverse.
36
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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 according to a
clear framework for enabling long-term profitable and
resilient 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 ra-
tio of below 30%, a clean CCS Operating Result of at
least EUR 5 bn by 2025 and EUR 6 bn by 2030, in-
creasing clean CCS net income attributable to share-
holders, operating cash flow excluding net working cap-
ital of around EUR 6 bn by 2025 and at least EUR 7 bn
by 2030, as well as attractive shareholder distributions.
When building its financial plan, OMV defined a sound
capital allocation policy: first, investing in its organic
portfolio; second, paying attractive dividends; third, pur-
suing inorganic spending for an accelerated transfor-
mation; fourth, deleveraging; and fifth, special divi-
dends. In its capital allocation, the Group focuses on
selecting the most competitive and resilient projects.
The defined investment criteria include hurdle rates and
payback periods by business reflecting respective risk
and return profiles, as well as testing projects for their
resilience and break-even versus relevant market KPIs.
To achieve its strategic goal, OMV plans a yearly or-
ganic CAPEX of around EUR 3.5 bn for the period
2022–2030. Overall, the Group is allocating more than
EUR 13 bn in this period to achieve its ambitious decar-
bonization targets, which represents around 40% of to-
tal organic CAPEX. In addition, OMV will consider inor-
ganic growth in areas of strategic importance. How-
ever, this will depend on the Group’s indebtedness
headroom. Moreover, the Group’s portfolio of assets
can provide options through divestments to accelerate
strategy execution when attractive acquisition 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 an
investment-grade credit rating. The Company aims to
achieve a leverage ratio of below 30% for the 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.
OMV seeks to align its long-term funding policy with the
Company’s sustainability strategy. Therefore, OMV is
assessing the opportunity of sustainability-linked fund-
ing, which links the cost of a financing instrument to the
achievement of specific strategic sustainability targets,
such as GHG emission reduction goals or sustainable
polyolefin production targets.
During the strategy period, OMV is committed to deliv-
ering attractive shareholder distributions. The Group
has amended its shareholder distribution policy in De-
cember 2022 and added special dividends as a new,
additional instrument to the existing progressive divi-
dend policy. The progressive regular dividend policy is
maintained and unaffected by this amendment. When
OMV’s leverage ratio is below 30%, OMV aims to dis-
tribute approximately 20% to 30% of the OMV Group's
operating cash flow (including net working capital ef-
fects) per year to its shareholders through its regular
dividend, as a priority, and additionally, if sufficient
funds are available, through the new instrument of a
special dividend. In case of a leverage ratio of 30% or
higher, OMV’s progressive regular dividend will be
maintained, but no special dividend shall be paid. The
dividend payments in any given year are subject to
specific dividend proposals by the Executive Board and
the Supervisory Board.
37
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Sustainability
We are committed to building a sustainable world worth living in – for everyone. Sustainability and circular-
ity 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 posi-
tive relationships with our employees, communities, suppliers, and other stakeholders, including by ad-
dressing the 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).
▸ 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.
▸ Targets 2025:
▸ Increase volume of sustainable (includes recy-
erations
cled and biobased) polyolefins or other chemi-
cals production capacity to 600,000 t p.a.
▸ Increase reuse and recycling of waste from op-
▸ Reduce freshwater withdrawal
▸ Targets 2030:
▸ Establish approx. 2 mn t p.a. sustainable (in-
cludes recycled and biobased) polyolefins or
other chemicals production capacity
▸ Reduce natural resources use by cutting oil and
gas production levels to around 350 kboe/d and
reducing crude distillation throughput by 2.6 mn t
▸ Increase reuse and recycling of waste from op-
▸ Reduce freshwater withdrawal
erations
Our Strategy 2030 is underpinned by this Sustainability
Framework, with all business decisions being guided 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, and Security,
People, and Ethical Business Practices. For each of
these focus areas, we have formulated concrete com-
mitments, targets, and actions to be achieved by 2030,
which represent OMV’s contribution to the UN 2030
Agenda for Sustainable Development.
OMV’s sustainability commitments and
targets
Climate Change
▸ Commitments:
▸ OMV will continuously improve 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 mn t CO2e reductions from
▸ Achieve an E&P methane intensity of 0.2% or
operated assets in 2020–2025
(Scope 3) by >6% vs. 2010
lower
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
▸ Zero routine flaring and venting of associated
≥20% vs. 2019
lower
gas as soon as possible, but no later than 2030
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.
38
OMV ANNUAL REPORT 2022 / 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 special
▸ Conduct human rights assessments and develop
hours to a min. of 30 hours per employee
needs at our main locations
perience at 75%
65%
action plans for OMV Group operations with a
high level of human rights risks 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)
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 Sustainable Development
Goals (SDGs).
▸ OMV is committed to contributing to a Just Tran-
sition for our employees and communities, and
addressing the 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
experience at 75%
(CGM) of all sites against UN Effectiveness Cri-
teria
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 Together for Sustaina-
bility (TfS, further details below) and carry out
sustainability evaluations of all suppliers cover-
ing >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
training 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
39
OMV ANNUAL REPORT 2022 / 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 Agreement. OMV integrates risks
and opportunities related to climate change impacts
into the development of the Company’s business strat-
egy and the planning of operational activities. In this re-
gard, OMV continuously improves the carbon efficiency
of its operations and product portfolio and is fully com-
mitted to supporting and accelerating the energy transi-
tion. 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, reducing methane emis-
sions through leakage detection and repair, and im-
proving 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 example, in late 2022, a new gas treatment station
for Low Temperature Separation (LTS) at a Romanian
E&P asset was brought on stream. As a result, gas that
would normally be flared is captured and made availa-
ble for sale. Consequently, through the aforementioned
approach for example, GHG emissions are estimated
to be reduced by 24,000 t CO2e from 2023 onward due
to the elimination of routine flaring.
We are also increasingly turning to renewable sources
of electricity to power our operations. In Austria, follow-
ing the realization of Phase II of the OMV and VER-
BUND photovoltaic park at Schönkirchen, 12.9 GWh of
renewable electricity was produced. It is estimated that
throughout the year 15.84 GWh of renewable energy
will be produced. In Romania, OMV Petrom completed
the installation of PV panels at its first solar park. The
park includes nearly 1,000 PV panels installed over an
area of 5,500 m2. The green energy produced will be
used to supply electricity for ongoing operations in the
E&P segment. Also by the end of Q4/22, PV panels
were installed at 380 OMV and OMV Petrom-branded
filling stations. The electricity produced from these in-
stallations annually is estimated at 7,000 MWh. In par-
allel, several Power Purchase Agreements (PPAs) with
renewable energy providers were signed by OMV
Group in 2022. For instance, in October 2022, Borealis
and Axpo Nordic, a subsidiary of Switzerland’s largest
renewable energy provider, signed a wind PPA, which
includes the annual supply of more than 130 GWh of
wind power to the Borealis production location in Ste-
nungsund (Sweden) over the next ten years. The elec-
tricity will be generated by a new onshore wind farm lo-
cated in central Sweden, with delivery expected to start
in January 2024.
A cornerstone of our climate strategy is increasing the
share of zero-carbon products in our product portfolio,
as well as decreasing fossil fuel production and sales.
Oil and gas production will be decreased to around
350 kboe/d by 2030. Growth will instead come from
zero-carbon products, such as geothermal energy, hy-
drogen, and Sustainable Aviation Fuels. In our E&P
segment, we will build up around 10 TWh of renewable
energy production (including geothermal, PV, and
wind). In 2022, OMV made headway in the develop-
ment of two geothermal projects: one in Austria, the
other in Germany. In Austria, OMV conducted a pro-
duction and injection test to analyze the geothermal po-
tential in the Vienna Basin. Regional and local geologi-
cal studies have been progressing, and potential loca-
tions for geothermal power plants have also been se-
lected. In Lower Saxony (Germany) OMV and partner
ZeroGeo Energy GmbH have an equal interest of 50%
each in a geothermal exploration project called
Thermo. The initial project aim is to collect geological
data, in particular gravity and magnetic measurements,
over an area of approximately 5,000 km2. The data col-
lected will be used to assess the geothermal energy
potential and will be part of a comprehensive evaluation
of future geothermal activities in the area. Based on
preliminary studies, subsurface experts indicate that
the geothermal conditions in the Vienna Basin are suit-
able for use as a direct heat carrier. In northern Ger-
many, the geothermal energy could be used to gener-
ate electricity.
We aim to step up the production of renewable fuels
and sustainable chemical feedstocks to approximately
1.5 mn t per year, including marketing at least 700,000
t of Sustainable Aviation Fuels (SAFs) per year. In
2022, three Memorandums of Understanding for the in-
tended offtake of SAF were signed with Lufthansa
Group, Ryanair, and WizzAir. The total amount of in-
tended SAF offtake between 2023 and 2030 is more
than 800,000 t for the Lufthansa Group, up to 160,000 t
for Ryanair, and up to 185,000 t for WizzAir.
Our climate targets can only be achieved with consider-
able effort and capital allocation. The OMV Group has
earmarked investments of more than EUR 13 bn by
2030 for this purpose, representing around 40% of or-
ganic CAPEX over that period. All business units will
build on existing strengths and expertise to contribute
to this transformation.
40
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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, the Americas, and Europe that are
defined as high risk by the Transparency International
Corruption Perceptions Index. We strive to avoid the
risks of bribery and corruption that are specific to our
sector. We also highly value our reputation. Therefore,
our highest priority is ensuring uniform compliance with
our business ethics standards wherever we operate.
Compliance with ethical standards is a non-negotiable
value that supersedes any business interest. Absolute
commitment to this objective is embedded at all levels
of 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 planning business strat-
egy 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 2022, 7,537 OMV Group employees were
trained in business ethics. The Integrity Platform pro-
vides an anonymous whistleblower mechanism for
OMV employees and external stakeholders, such as
suppliers. They can use this platform to report issues
relating to corruption, bribery, conflicts of interest, anti-
trust law, capital market law, public procurement, envi-
ronmental protection, product and food safety and con-
sumer 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 exist-
ing and potential business partners sanctioned by the
EU or international organizations, 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 precontractual 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, the procurement colleagues
and business representatives select the best suppliers
based on a predefined set of commercial and technical
criteria during a tender process. In 2022, we continued
to embed sustainability elements into sourcing activities
(e.g., technologically innovative elements, carbon emis-
sions, energy efficiency KPIs, CDP and EcoVadis
score) during 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.
During the audits, we pay special attention to the finan-
cial stability of our suppliers, their strategy and organi-
zation, supply chain, sustainability (e.g., human rights,
carbon footprint management, environmental manage-
ment, certifications, and social responsibility), and their
cybersecurity performance. We also carry out yearly
subject-specific audits on topics such as process
safety, quality, and efficiency. During the supplier au-
dits, we place great emphasis on understanding not
only the management approach to the topics within the
scope of the audits (e.g., HSSE aspects), but also how
the topics are understood and applied by the employ-
ees on site (e.g., through discussions with workers and
managers).
Since 2021, OMV has been a member of Together for
Sustainability (TfS). As a joint initiative and global net-
work of 40 companies, TfS sets the de facto global
standard for the environmental, social, and governance
41
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
performance of chemical supply chains. The TfS pro-
gram is based on the principles of the UN Global Com-
pact and Responsible Care®. Being a TfS member
helps OMV to further embed sustainability into its day-
to-day business operations and further cascade sus-
tainability requirements within our supply chain.
We aim to continuously manage and decrease the car-
bon volume of our purchased goods and services. Only
by working together with our suppliers will we be able
to define joint low-carbon initiatives to continuously de-
crease the carbon emissions in the supply chain and
meet our Paris Agreement commitments. As part of its
CDP Supply Chain membership, in 2022 OMV invited
231 suppliers to respond to the CDP climate change
questionnaire. Suppliers were selected based on
spend, estimated carbon emissions volume, and the
carbon intensity of the goods and services purchased
from them. In addition to reporting their emissions, we
asked the suppliers whether they have carbon reduc-
tion targets in place, and invited them to share with us
any initiatives or projects to reduce carbon emissions in
which they would like us to participate. 75% of respond-
ing suppliers have a climate target in place (vs. 63% in
2021).
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 health care, labor rights in the supply chain, edu-
cation, poverty reduction, land rights, and free, prior,
and informed consent. OMV respects and supports hu-
man 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 4,254 employees received training on human
rights topics through the e-learning tool and in-person
training sessions (2021: 980). 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 2022, 35 incidents of human
rights grievances were reported (2021: 7).
In late July 2022, OMV’s subsidiary Borealis was con-
fronted with reports of alleged human trafficking prac-
tices conducted by the main contractor (IREM) and
their sub-contractor on a propane dehydrogenation
(PDH) plant construction site in Kallo, Belgium. The
practices were reported to involve exploitation, inade-
quate compensation, lack of social security, and poor
housing conditions. Borealis immediately suspended
and later terminated all contracts with IREM due to its
non-compliance with their fundamental principles, and
retendered the contracts. After careful consideration,
Borealis granted the majority of the works to the con-
tractor Ponticelli and implemented thorough social con-
trols at the Kallo construction site to respect and value
the workers there. Work on the construction site gradu-
ally increased from October 2022.
The OMV Group always seeks to improve, and is
strongly committed to further strengthening its
processes and mitigation measures to prevent any
maltreatment and disrespect of workers’ human rights
in the supply chain. At corporate level, we analyzed the
HSSE and Procurement directives for contractor
management and prepared a detailed checklist for
human rights compliance to be used at site level. The
revised human rights e-learning refers specifically to
human rights in business relations, and the new OMV
Group Human Rights Policy Statement details our
human rights commitment related to labor rights and
business partners in line with business best practice
and international standards. Additionally, individual
monitoring initiatives were implemented at local level
throughout the Group to ensure our suppliers’
compliance with human rights.
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
42
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
implemented Community Grievance Mechanisms
(CGM) at all operating sites. In 2022, OMV registered
776 external grievances (2021: 884) from the Commu-
nity Grievance Mechanisms. All of the grievances were
handled in accordance with OMV’s localized commu-
nity grievance management procedures, which stipu-
late a stringent approach to systematically receiving,
documenting, 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 96% of all registered grievances at OMV in
2022.
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).
43
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Health, Safety, Security, and Environment
Health, safety, security, and protecting 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
2022 resulted in a TRIR of 0.82 (2021: 0.54). Great ef-
fort was put into broad safety and security awareness
and prevention campaigns in order to establish a strong
and positive safety culture. This was especially the
case during the planned maintenance turnarounds that
took place in the Schwechat and Burghausen refiner-
ies. During the past year, special emphasis was placed
on findings from incidents, leadership engagement,
contractor management, and training on various emer-
gency and crisis management scenarios. The con-
sistent implementation of the process safety road maps
and improvement initiatives was another area of focus.
Exploration & Production had a TRIR of 1.09 (2021:
0.92). The numbers show that a constant effort is re-
quired to minimize the occurrence of incidents. In addi-
tion, we encountered 18 High Potential Incidents
(HiPos) that could have resulted in serious or fatal inju-
ries under slightly different circumstances. All these in-
cidents were subjected to thorough incident investiga-
tions and measures were taken to prevent recurrence.
Contractor management continues to be a focus area
in our HSSE efforts. Our activities concerning process
safety management, and various other initiatives aimed
at ensuring the safety and integrity of our facilities, con-
tinued in 2022.
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
2022
2021
1.11
1.32
0.62
1.19
0.78
1.23
0.70
1.18
0.51
0.85
0.57
0.96
HSSE Strategy
To achieve this vision, the 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: improving the ability to work through inte-
▸ Safety: establishing sustainable safety for people
▸ Security: protecting people, assets, and reputation
▸ Environment: minimizing the environmental foot-
from emerging malicious intentional threats
and facilities
print throughout the life cycle of activities
Health, safety, and security
In 2022, the combined Lost-Time Injury Rate (LTIR) for
OMV employees and contractors was 0.78 (2021:
0.57), and our combined Total Recordable Injury Rate
(TRIR) was 1.23 (2021: 0.96). We are deeply con-
cerned about the work-related fatality of a contractor
who fell off a roof while carrying out repairs in France.
Managing the COVID-19 pandemic remained a high
priority in 2022 alongside routine HSSE management.
Our main focus was to learn from incidents across the
Company: videos, alerts, and communication cam-
paigns were again used to reach out to all employees.
The business segment Chemicals & Materials reached
a TRIR of 2.85 (2021: 2.25). There was a strong focus
on implementing occupational safety improvement initi-
atives, holding dedicated HSSE training sessions, as
well as the further strengthening of the safety culture
and risk awareness. Special attention was paid to con-
tractor HSSE management and learning from past inci-
dents, to prevent recurrences and embed appropriate
improvement measures.
44
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
The well-being and health of employees are fundamen-
tal to the success of any company, as they serve as a
foundation for ensuring employee productivity. The
year 2022 was still strongly influenced by the worldwide
COVID-19 pandemic. Our medical teams and service
providers were challenged with supporting the emer-
gency management teams in updating and implement-
ing pandemic preparedness plans, guidelines and
health information, and providing support to employees
suffering from COVID-19 at home and in hospital. In
addition, OMV continued its long tradition of offering
health and prevention programs, such as cardiovascu-
lar disease prevention programs, thyroid screenings
and other voluntary health checks, vaccinations (espe-
cially against flu and in some countries COVID-19), and
virtual health hours, such as ideas for a healthy work-
life balance or first aid measures that go far beyond le-
gal requirements.
In 2022, the COVID-19 pandemic again posed major
challenges for safety management. At the operational
level, we took preventive and business continuity-re-
lated measures, such as strictly segregated teams in
key areas, hygiene measures, and ongoing awareness-
raising. Despite restricted travel and thanks to digital
communication and collaboration tools, we were able to
carry out the following important safety-related activities:
▸ We have updated our Life-Saving Rules and har-
monized them across the OMV Group. This simple
set of rules helps prevent fatal and severe acci-
dents, and applies to all employees and contrac-
tors. Training and communication materials have
been produced in 18 languages for an intensive re-
fresher campaign in 2023.
▸ All incidents at level 3 and higher and HiPos were
investigated, and lessons learned were
communicated throughout the organization.
Improvement initiatives were developed and closely
monitored using our HSSE reporting tool.
▸ As part of our safety culture program, we held sev-
eral workshops on “making HSSE personal” at dif-
ferent levels of the Company. The semi-annual
meetings with the program owner were conducted
online.
▸ Contractor HSSE management is key to the OMV
Group’s safety performance. We introduced a new
e-learning program, held webinars, and delivered
over 900 trainings to more than 660 beneficiaries
and procurement staff on the internal regulations
framework. We also held strategic supplier meet-
ings with prime contractors to share information, ex-
periences, and expectations.
▸ Global HSSE training for employees and managers
was completely revised and updated. An e-learning
course consisting of 13 modules was developed for
basic HSSE training.
▸ We developed a harmonized set of KPIs and a pro-
cess safety dashboard. Furthermore, a Group Pro-
cess Safety Committee has been established, in-
cluding Members of the Executive Board, which
meets periodically to discuss process safety perfor-
mance, achievements, and challenges.
▸ We supported and followed up on the implementa-
tion of process safety road maps across OMV’s
ventures, assets, and refineries. In our Integrated
Risk Register, we continued to analyze and priori-
tize process safety risks to ensure that investments
effectively lead to a significant reduction in risks.
▸ The OMV Group Process Safety Network, a large
online collaboration platform, met quarterly to ex-
change information and experiences in virtual meet-
ings (> 200 participants). Senior management also
participated.
▸ We completed the review of 15 group-wide HSSE
regulations and achieved systematic alignment be-
tween the OMV Group and Borealis.
▸ An important milestone has been achieved with the
successful go-live of the OMV Group HSSE report-
ing tool. This is a key step in our ongoing harmoni-
zation and enables us to report in one single sys-
tem across the OMV Group and Borealis by replac-
ing all existing tools.
An unstable geopolitical environment combined with
complex new and enduring regional conflicts remained
a constant security focus throughout 2022. The Corpo-
rate Security department continued to monitor these
geopolitical situations, accelerating OMV’s understand-
ing of strategic events to identify any emerging threats
that might interfere with business planning. This in-
cluded cases of armed conflict, civil unrest, and crimi-
nality at local, national, regional, and international lev-
els.
We updated our proven security management system
in 2022, 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-re-
lated challenges, the Corporate Security department
continued to deliver global operational support, govern-
ance, and oversight, and will maintain a comparable
and effective security strategy to allow OMV to operate
despite converging asymmetric threats.
In 2021, OMV’s Executive Board took the decision that
OMV would join the Voluntary Principles on Security
45
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
and Human Rights (VPSHR), if feasible. This set of
tools provides guidance on risk assessment, public
safety and security, human rights abuses, and the inter-
action between companies and private and public secu-
rity. OMV is committed to upholding human rights in all
of its activities. During 2022, OMV Corporate Security
conducted a VPSHR gap analysis using a third-party
consultancy company to ensure independence. As a
result of this analysis, we are now in the process of
adopting their recommendations with a view to joining
the VPSHR in 2023.
Environmental management
Due to the nature of its operations, OMV has an impact
on the environment. The Group strives to minimize this
impact at all times, particularly with respect to spills, en-
ergy efficiency, greenhouse gas (GHG) emissions, and
water and waste management. OMV strives to optimize
processes to use natural resources as efficiently as
possible and reduce emissions and discharges.
In 2022, there were 2 major hydrocarbon spills (level 3
of five; 2021: 3 spills). The total volume of hydrocarbon
spilled was higher compared to the previous year. OMV
continues to work on its oil spill response preparedness
and capabilities.
Key environmental measures and achievements in
2022:
▸ Water management plans have been established at
our main operational sites to reduce water-related
risks and ensure efficient and sustainable water
use.
▸ At the Schwechat refinery, we succeeded in signifi-
cantly reducing water consumption and emissions
to air. More than 5% of the average annual water
consumption has been saved, most of it through a
new control concept for cooling water in a heat ex-
changer group in the ethylene plant.
▸ At our FCC unit, the installation of an additional
electrostatic precipitator module reduced dust emis-
sions by up to 70%.
▸ At the Petrobrazi refinery, the tank modernization
program continued in 2022 with the modernization
of one volatile product tank and the commissioning
of a new tank, according to best available
technology, which will contribute to the reduction of
volatile organic compound (VOC) emissions.
▸ In 2022, OMV Petrom completed the surface aban-
donment of 746 wells and 40 facilities in the E&P
division. A total of 157,000 t of contaminated soil
was treated in our bioremediation plants, and
13,180 t of metal scrap was recycled by authorized
companies.
▸ An enhanced monitoring tool for spill prevention
has been implemented at OMV Petrom. The indus-
try-recognized digital well integrity tool was estab-
lished to assess risks to the integrity of individual
wells, prioritize inspections, and take appropriate
mitigation actions. By the end of 2022, we had suc-
cessfully completed the digitization of 4,000 wells,
which represents more than 50% of the total.
▸ Borealis is further commited to restore and maintain
a healthy and productive ocean based on the UN
Sustainable Ocean Principles and the UN Global
Compact membership. Furthermore, Borealis con-
tinued its STOP project, a pioneering program to
support cities in developing and emerging countries
in establishing cost-efficient, effective, and circular
waste collection systems. For more information,
visit the STOP project website at www.stopo-
ceanplastics.com.
▸ To honor the commitment to achieving zero pellet
losses in operations and the supply chain, Borealis
has incorporated all elements of Operation Clean
Sweep® (OCS), an international pellet loss reduc-
tion program. In addition, Borealis has proactively
contributed to the development of a third-party audit
and certification scheme for OCS led by the indus-
try interest group Plastics Europe. Borealis’ target is
to achieve full third-party OCS certification at all of
its sites in Europe by 2024.
▸ We have continued to work on improving our im-
pact on nature. To achieve this, we apply the miti-
gation hierarchy in our projects with the following
steps: Avoidance, Minimization, Restoration, Offset
and Compensation. We want to make a positive im-
pact on nature by implementing biodiversity initia-
tives, such as our green areas project in arid parts
of Tunisia. We continued our tree planting initiatives
in 2022 at our Waha and Nawara sites, which in-
clude an irrigation system. The goal is to create re-
creational areas to improve the well-being of em-
ployees and visitors.
▸ Planting continues at the Pohokura natural gas pro-
duction station in New Zealand. As part of a three-
year planting plan to regenerate native spe-
cies, 500 specimens were planted in 2022.
46
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Employees
We know that it is the combined 22,300 employees of OMV who turn the Group’s strategy into results and
success. We are proud of what we have achieved together. Trust and pride in the organization fuel our
employees’ energy and determination to tackle challenges and to focus on innovative solutions to make
us even stronger.
OMV’s People & Culture Strategy
In 2022, we developed a Group-wide People & Culture
Strategy, which fully supports the transformation of
OMV. The core of the new People & Culture Strategy is
our purpose, i.e., “Re-inventing essentials for sustaina-
ble living”. We have developed four strategic drivers,
plus one additional pillar, Transformational Leadership:
▸ Employee Experience
▸ Growing Talent
▸ Organizational Evolution
▸ New Ways of Working
Highlights of 2022
Following the announcement of the OMV Group’s Strat-
egy 2030, all Human Resources (HR) functions Group-
wide were renamed People & Culture (P&C). The aim
of this department is to fully support the OMV Group’s
Strategy 2030 by prioritizing key aspects that enable us
to unlock our organization’s full potential. The new
name points to the department’s aim and purpose, and
emphasizes that people and culture are central to
achieving the targets defined in our strategy. As such,
the statement “People make it happen” not only creates
the right working environment in which our employees
can thrive, but also ensures that they can further de-
velop their skill sets to meet the demands of our dy-
namic business.
In March 2022, our Group-wide purpose, “Re-inventing
essentials for sustainable living”, was launched. To
bring this purpose to life, a change agent and volun-
teering network has been set up. We also introduced
Purpose Learning Weeks, focusing on the three pur-
pose enablers, namely Advancing Circular, Working
Together, and Stimulating Transformation. With the
Purpose Learning Weeks, we want to create deeper in-
sight into each of our purpose enablers. The first Pur-
pose Learning Week on Advancing Circular took place
in June 2022 and addressed various topics relating to
the circular economy.
During the COVID-19 pandemic, which continued to af-
fect our employees in 2022, many implemented em-
ployment-related measures were continued to protect
the health, well-being, and economic situation of our
employees. In 2022, we worked specifically on our
work-from-home concepts to give employees more flex-
ibility. Working from home is now offered to a broader
group of staff and the number of work-from-home days
per month has significantly increased.
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. In September 2022, a Group-wide
Pulse Check was performed throughout the OMV
Group. The Pulse Check is one of our most important
tools for measuring the engagement of our employees.
It is an essential part of our new People & Culture
Strategy relating to Employee Experience. We
achieved a very high response rate of 70% on a Group
level, and conclusions and subsequent actions will be
agreed.
In 2022, there was a focus on mandatory, legally bind-
ing, and business-critical independent learning (e.g.,
e-learning, online learning through our partnership with
LinkedIn Learning, and virtual courses/webinars). Due
to the disruptions caused by COVID-19, we again con-
centrated on virtual training delivery, as in 2021. All
measures to support employees in the virtual and hy-
brid environment were therefore continued. This in-
cluded the delivery of virtual health webinars, virtual
training of facilitators, and an updated personal skills
SharePoint, among other things.
Leadership training focused on first-time leaders,
women in leadership, and how to manage remote and
hybrid teams. For identified talents at executive level, a
dedicated talent program focusing on enhancing execu-
tive leadership skills was implemented. New ways of
working also continued to be a focus point, for example
through the integration of agile ways of working and the
newly introduced Project Management Certification
Program. In terms of graduate development, we ex-
panded our portfolio offering to include a tailored gradu-
ate program in Refining as well as continuing with our
long-standing Integrated Graduate Development (IGD)
Program in E&P.
47
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Number of training participants1,2,3
Diversity
Austria
Romania/Rest of Europe
Middle East/Africa
Rest of the world
Total
2022
5,599
14,659
664
700
21,622
2021
5,632
13,762
709
784
20,887
Money spent on training per region1,2
In EUR
Austria
Romania/Rest of Europe
Middle East/Africa
Rest of the world
Total
2022
2021
3,435,294
5,670,768
614,903
369,132
10,090,097
2,672,471
5,094,527
342,242
243,485
8,352,725
1 Excluding conferences and training for external employees
2 Excluding DUNATÁR, SapuraOMV, OMV Russia, DYM Solutions, MTM, and
Rosier
3 Number of employees who received at least one training
We have also started to work on a shared set of values
across OMV, OMV Petrom, and Borealis, which we will
use to guide us through this transition and in the future.
These new values have been co-created together with
our employees to help shape the future of the OMV
Group and how we all work together. The new values
will then be launched in 2023 alongside a campaign.
Moreover, we are also developing leadership compe-
tencies closely linked to the newly defined values, to
help in identifying and developing future and present
leaders.
To achieve the OMV Group’s Strategy 2030, we will roll
out dedicated global initiatives on Purpose and Values
and a new transformational leadership program in
2023. We will also set up a Sustainability Academy that
offers an ever-growing selection of varied, pre-selected
learning material to support our employees in expand-
ing their knowledge and enhancing their mindset when
it comes to OMV’s journey to net zero. Additionally, we
plan to offer specific training initiatives to support the
upskilling of technical employees, for example training
on low-carbon energy, geothermal energy, decision
quality, and data science.
An employee survey on diversity, equal opportunities,
and inclusion was launched at the end of 2021.
Through this, the OMV Group was able to further
strengthen the culture of listening to unheard voices in
our Company, and collect feedback from employees on
diversity, equal opportunities, and an inclusive
environment in the Company. The survey’s findings
played an important part in developing OMV’s new
Group-wide Diversity, Equity, and Inclusion strategy
2030, which was launched in 2022.
Our focus on diversity is also being actively nurtured
throughout the organization today, supported by a
range of training sessions, activities, and awareness
campaigns. We also continued our series of online
events with external guest speakers on relevant diver-
sity topics. International Women’s Day is a day to focus
on equality and women’s rights worldwide. In 2022, the
motto #BreakTheBias directed the focus toward preju-
dices that still stand in the way of women’s equality.
OMV fully supports this approach and therefore orga-
nized events in March 2022, including a presentation of
Diversity, Equity & Inclusion (DEI) quick poll insights
and a discussion on the topic. The DEI Awareness
Month took place in October 2022, with various events
focusing on the topics of interest as determined by the
DEI survey conducted in 2021 (gender, generations,
parenting, disabilities, and unconscious bias).
OMV is committed to ensuring fair treatment and equal
opportunities for all employees and has zero tolerance
for discrimination and harassment of any kind. In line
with our commitment to equality and non-discrimina-
tion, we began working on a formal non-discrimination
policy in 2022. This will be introduced in 2023.
We have designed and implemented targeted training
programs, such as SHEnergy, a blended learning pro-
gram for women at OMV, to support women’s leader-
ship skills. The program focuses on active inclu-
sion skills and also emphasizes the power of mentor-
ing and networking in developing female leaders.
As a result of these measures, the percentage of
women in the Group is about 27% (2021: 27%). A total
of 21.6% (2021: 20.9%) of employees in advanced and
executive positions are female.
48
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Employee key figures
At the end of 2022, the OMV Group employed 22,308
people. Compared with 2021, the number of employees
slightly decreased by 0.6%.
Employees
Employees by region
Austria
Rest of Europe
Middle East & Africa
Rest of the world
Total number of employees
Diversity
Female
Male
Female Executives1
Number of nationalities
1 Executives include OMV Senior Vice Presidents, OMV Petrom and Borealis Group Board members
2022
2021
5,884
14,890
583
951
22,308
5,762
15,074
634
964
22,434
in %
in %
in %
27
73
20
27
73
15
101
101
49
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
OMV Group Business Year
In 2022, OMV has achieved a strong clean CCS Operating Result of EUR 11.2 bn. Furthermore, cash flow
from operating activities excluding net working capital effects remained significant amounting to
EUR 9.8 bn, and the organic free cash flow before dividends totaled EUR 4.9 bn. As a consequence, the
leverage ratio decreased from 21% at the end of 2021 to 8% at the end of 2022. This financial strength is an
excellent basis for OMV’s further strategic development into a leader in sustainable fuels, chemicals and
materials while committing to deliver attractive shareholder returns.
Business environment
Global economic growth during 2022 is estimated to
have been the weakest for two decades, save only for
the immediate aftermath of the global financial crisis
(2009) and the depths of the COVID-19-related slow-
down (2020). A broad set of headwinds confronted the
global economy in 2022, with annual growth expected
at some 3.2%, according to the IMF. This represents a
significant drop from the 6% registered in 2021. Ac-
cording to UNCTAD, global trade, meanwhile, is ex-
pected to have reached an outright record in 20221,
with growth more concentrated in services. However,
the second half of 2022 saw something of a slowdown,
with global goods trade turning negative in the third
quarter, before services trade followed in the fourth
quarter.
Effects of the COVID-19 pandemic continued to impact
markets in early 2022, even before the Russian inva-
sion of Ukraine tipped supply and demand further out of
balance from the second half of Q1 onward. Outsized
spending on goods relative to services – combined with
ongoing bottlenecks in supply chains – drove rapid,
marked increases in inflation in almost all large econo-
mies. Headline CPI topped 8% on average over Q2 in
the US, peaking in June at 9.1%. Headline inflation in
the Eurozone averaged in double digits at the begin-
ning of the fourth quarter of 2022, with a peak of 10.6%
in October. Combating price increases for consumers
and businesses became the main focus of central
banks in 2022, while governments were tasked with
mitigating the effects of price rises. This was especially
true in Europe, where year-on-year price growth in en-
ergy was the single largest contributing factor to head-
line inflation. This became arguably the dominant politi-
cal and economic issue for the region in 2022.
The economic headwinds piled up in various metrics as
2022 progressed. Purchasing Managers’ Indices sank
from mostly expansionary at the end of 2021 to mostly
being in contraction territory by the middle of 2022, with
only a couple of exceptions. Eurozone net exports
flipped negative by Q3 (Eurostat), while essentially all
other economic indicators spent the second half of the
year trending lower, i.e., toward recession territory. By
the end of the year, financial conditions, consumer con-
fidence, and services PMIs had made their way below
the 20th percentile in data going back more than
20 years. The only metric to buck this trend has been
the labor market, which, as of late 2022, remains histor-
ically tight, with unemployment numbers continuing to
trend close to record lows.
This conundrum was still in place for central banks at
the end of 2022 on both sides of the Atlantic. The
macro environment focus has shifted definitively to the
effects of more expensive financing and the potential
for this to contribute to recessionary effects in ad-
vanced economies. The latest available GDP figures
for the Eurozone indicate a significant decline in the
third quarter of 2022. By the end of the year, the Euro-
pean Central Bank had raised its key deposit rate by
250 basis points, a rapid increase necessitated by
surging inflation. Higher interest rates are having and
will continue to have a lagged effect on consumer and
business spending.
The fallout from the geopolitical upheaval following the
Russian invasion of Ukraine has been wide-ranging.
However, supply and trade disruptions were arguably
more pronounced in energy than anywhere else. And
within energy, no region saw more pronounced price
effects than Europe. Following the invasion, the deci-
sion by many western corporations to “self-sanction”
ahead of government mandates to limit or cease the
trade and import of Russian energy was a key driver of
the oil price rally that peaked at the end of the second
quarter of 2022.
However, it was the natural gas market that was the
epicenter of the energy-related difficulties experienced
by Europe in 2022. The removal of the vast majority of
Russian gas pipeline flows from the middle of the year
posed an unprecedented challenge for the European
Union, which, in 2021, sourced almost 40% of its natu-
ral gas imports from Russia and which was 20% de-
pendent on natural gas for power generation. The re-
moval of the region’s single largest supply source from
the market, combined with the government mandates
1 Source: United Nations Conference on Trade and Development (UNCTAD) Global Trade Update December 2022
50
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
for minimum storage levels ahead of the onset of the
heating season and reduced liquidity, saw an unprece-
dented peak in natural gas prices in August 2022 of
more than EUR 300/MWh. This price level represented
a tough test for both the region’s energy markets and
its industrial base, with production in a range of energy-
intensive industries forced lower or offline completely
due to poor economics.
By the end of 2022, the pressure coming from high gas
and power prices had moderated significantly. How-
ever, Europe’s energy markets remain fundamentally
tight. This fragility means the impact of disruptions to
current supply sources is potentially very significant.
LNG has taken on huge importance in meeting Euro-
pean demand for natural gas. Continued high imports
of LNG into Europe to offset the loss of Russian pipe-
line flows requires Europe to outcompete Asia as the
most attractive export destination for spot cargoes on
the international market. This in turn requires Europe to
have the most expensive natural gas market globally.
2022 saw wheels set in motion to change the European
energy landscape faster than anybody would have an-
ticipated at the beginning of the year but, for the time
being, high energy prices should be expected to con-
tinue.
Natural gas demand in Europe is expected to have
fallen by some 10% during 2022 vs. 2021 based on a
combination of factors, by far the largest of which is
price-related demand reduction. Over the first half of
2022, it was residential and commercial demand for
gas in Europe that was exhibiting the fastest demand
declines. This was increasingly overtaken in the second
half of the year as industrial gas demand fell rapidly as
wholesale prices hit extremely high levels. Industrial
gas demand is expected to have fallen some 20% year
on year in Europe in 2022, far exceeding the estimated
3% decline in gas demand in the region’s power
generation.
Natural gas was the standout performer in 2022 in price
terms, but energy commodities as a whole led the mar-
ket in a year when the majority of other asset classes
declined. Major US and European stock indices were
down significantly compared to the previous year, while
bonds failed to provide any hedge against equity de-
clines and posted their worst performance in decades
in 2022. After European gas and electricity, other com-
modities whose price benefitted directly or indirectly
from the fallout of the Ukraine conflict included coal and
refined products, especially middle distillates such as
diesel and heating oil. Despite high prices for refined
products in 2022, Europe has seen new demand for
middle distillates and some other products emerge from
industrial processes that have switched away from nat-
ural gas due to the extremely high prices in that market.
The IEA estimates that this demand, comprising mostly
gasoil, will average more than 500 kbbl/d over the
fourth quarter of 2022 and the first quarter of 2023.
It was a year of huge volatility in the Brent price. The
first half of the year was defined by rapid demand
growth, as oil consumption continued to recover from
its 2020 lows. This contributed to the price rally in
Brent, which peaked in Q2. However, supply was in-
creasingly able to catch up. Non-OPEC supply is
thought to have reached almost 67 mbbl/d by Q4/22, a
2 mbbl/d increase over the same quarter in 2021. At
the same time, demand growth was starting to top out.
High prices have also taken a toll on demand, which is
estimated to have fallen in the fourth quarter compared
to the previous year. Despite the marked decline in the
Brent price in the latter part of 2022 on this softening
fundamental picture, the annual average increase
came in at around 40%. Industry investments have so
far not exhibited any appreciable increase correspond-
ing to the higher oil prices of the last two years.
In comparison to 2021, the olefin indicator margins
were higher in 2022, driven by low feedstock prices ex-
cept for the peak in the first quarter of 2022, and high
monomer contract prices. On average for the year, indi-
cator margins were on a healthy level. For some prod-
ucts, such as benzene, indicator margins reached his-
toric highs in 2022 even though the market environ-
ment was challenging, which was caused by several
factors, namely: the Russia/Ukraine conflict, high en-
ergy costs, high inflation, and decreasing demand
throughout the year. Following the attack on Ukraine,
the crude slate became lighter and naphtha was readily
available in the market, which led to lower feedstock
prices. Furthermore, high gas prices in Europe affected
demand throughout the value chain. In summer, the
low water level of the Rhine caused logistical con-
straints on the derivative market. All crackers in Europe
reduced the throughput due to weak demand and high
energy prices, especially in the second half of 2022.
The cracker rates in Europe reduced to the globally
near record low levels of 65% in the fourth quarter of
2022 due to extremely weak demand. French strikes
and several cracker outages helped only a little in Octo-
ber. The entire supply chain was under the pressure of
destocking as year end came to maximize cash and
minimize inventory.
51
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Margins of European polyolefins continued to normalize
in Q1 from the historic highs seen in 2021. In the sec-
ond quarter of 2022, margins were supported by the
heavy spring turnaround season. In the second half of
2022, however, margins deteriorated, with demand de-
crease seen across most grades of polyolefins due to
the poor macroeconomic conditions (cost of living crisis
reducing discretionary incomes of consumers). Imports
of polyolefins into Europe were also ample in the sec-
ond half of the year thanks to the easing of the global
container freight market, which ended the year being
similar to pre-pandemic levels.
Arguably the most significant result of the events of
2022 has been the reemergence of energy security as
a key pillar of energy policy. The reality of overdepend-
ence on a single source of energy has been laid bare
via numerous reversals on long-held policies, most no-
tably German U-turns on coal and nuclear plant life
spans, as well as a rapid build-out of infrastructure to
import LNG into the region’s largest economy. The
sheer size of Europe’s energy bill – and its impact on
corporate competitiveness and household budgets –
should prevent energy security from being neglected in
what’s known as the energy trilemma at any time in the
foreseeable future.
Crude price (Brent) – monthly average1
In USD/bbl
1 ICE Brent generic 1st contract monthly average
52
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Financial review of the year
Key financials
Sales revenues
Clean CCS Operating Result1
Clean Operating Result Chemicals & Materials1
Clean CCS Operating Result Refining & Marketing1
Clean Operating Result Exploration & Production1
Clean Operating Result Corporate & Other1
Consolidation: elimination of inter-segmental profits
Clean CCS Group tax rate
Clean CCS net income1
Clean CCS net income attributable to stockholders of the parent1,2
Clean CCS EPS1
Special items3
thereof Chemicals & Materials
thereof Refining & Marketing
thereof Exploration & Production
thereof Corporate & Other
CCS effects: inventory holding gains/(losses)
Operating Result Group
Operating Result Chemicals & Materials
Operating Result Refining & Marketing
Operating Result Exploration & Production
Operating Result Corporate & Other
Consolidation: elimination of inter-segmental profits
Net financial result
Group tax rate
Net income
Net income attributable to stockholders of the parent2
Earnings Per Share (EPS)
Cash flow from operating activities
Free cash flow before dividends
Free cash flow after dividends
Organic free cash flow before dividends
Organic free cash flow after dividends
Gearing ratio excluding leases
Leverage ratio
Capital expenditure4
Organic capital expenditure5
Clean CCS ROACE
ROACE
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 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 %
2022
62,298
11,175
1,457
2,415
7,396
(50)
(43)
48
5,807
4,394
13.44
2021
35,555
5,961
2,224
945
2,892
(62)
(39)
36
3,710
2,866
8.77
Δ
75%
87%
(34)%
155%
156%
19%
(11)%
12
57%
53%
53%
861
(1,315)
n.m.
582
774
(460)
(36)
210
12,246
2,039
3,392
6,936
(86)
(35)
(1,481)
52
5,175
3,634
11.12
7,758
5,792
4,333
4,891
3,432
3
8
4,201
3,711
19
17
(396)
(509)
(398)
(12)
418
5,065
1,828
451
2,910
(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
n.m.
n.m.
(16)%
(198)%
(50)%
142%
12%
n.m.
138%
(16)%
31%
n.m.
10
85%
74%
74%
11%
11%
3%
8%
(3)%
(19)
(14)
56%
40%
6
7
Note: As of 2022, the gas business, previously reported in Refining & Marketing, was split into Gas Marketing Western Europe reported under Exploration &
Production, and Gas & Power Eastern Europe reported under Refining & Marketing. For comparison only, 2021 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 After deducting net income attributable to hybrid capital owners and net income attributable to non-controlling interests
3 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.
4 Capital expenditure including acquisitions
5 Organic capital expenditure is defined as capital expenditure including capitalized exploration and appraisal expenditure and excluding acquisitions and contin-
gent considerations.
53
OMV ANNUAL REPORT 2022 / 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 %
54
2022
11,175
861
(8)
58
724
87
210
12,246
2021
5,961
(1,315)
(30)
(1,297)
223
(210)
418
5,065
Δ
87%
n.m.
75%
n.m.
n.m.
n.m.
(50)%
142%
Operating Result adjusted for special items and CCS
effects, details of which are depicted in the table on the
left.
2022 performance:
With slightly over EUR 11 bn, OMV achieved a strong
clean CCS Operating Result in 2022. All three business
segments contributed significantly, supported by the
overall favorable market environment. Especially the
Exploration & Production segment benefitted from the
rise in oil and gas prices, while results were burdened
by the impact of the war in Ukraine, including the
change of the consolidation method of E&P Russian
assets as well as supply curtailments in Gas Marketing
Western Europe.
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.
2022 performance:
Coming in at 48%, the clean CCS Group tax rate in-
creased by 12 percentage points compared to 36% in
the previous year, stemming from an increased contri-
bution from Exploration & Production, in particular from
countries with a high tax regime.
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Clean CCS net income attributable to
stockholders of the parent
In EUR mn
Leverage ratio & Gearing ratio excl. leases
In %
Clean CCS ROACE
In %
Net income attributable to stockholders of the parent,
adjusted for the after-tax effect of special items and
CCS.
2022 performance:
The clean CCS net income attributable to stockholders
of the parent in the amount of EUR 4.4 bn increased
significantly compared to EUR 2.9 bn in 2021 following
the strong Operating Result.
The leverage ratio is calculated by dividing net debt
incl. leases through equity plus net debt incl. leases.
The gearing ratio excl. leases is calculated by net debt
(interest-bearing debts including bonds less liquid
funds) excluding leases divided by equity, expressed
as a percentage.
2022 performance:
OMV's strong financial performance as well as positive
contribution from inorganic cash flow from investing ac-
tivities, such as the Borouge IPO, partial loan repay-
ment from Bayport Polymers LLC (Baystar), as well as
the sale of filling stations in Germany, have led to a
continuous deleveraging throughout the year, resulting
in a leverage ratio of 8%. The gearing ratio excluding
leases came in at 3%.
The clean CCS ROACE (%) is calculated as Net Oper-
ating Profit After Tax (NOPAT – as a sum of the current
and last three quarters) adjusted for the after-tax effect
of special items and CCS, divided by average capital
employed (equity including non-controlling interests
plus net debt).
2022 performance:
Driven by the strong operational performance, OMV
was able to deliver a clean CCS NOPAT of EUR 5.7 bn
in 2022, compared to EUR 3.8 bn in 2021. As average
capital employed was on a comparable level, the clean
CCS ROACE improved from 13% in 2021 to 19% in
2022.
55
OMV ANNUAL REPORT 2022 / 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
56
Amount of cash OMV Group generates through its ordi-
nary business activities which excludes effects from net
working capital positions
2022 performance:
Operating cash flow excl. net working capital effects
came in at EUR 9.8 bn above the EUR 8.9 bn from
2021, supported by the overall strong market environ-
ment.
The organic free cash flow is cash flow from operating
activities less cash flow from investing activities exclud-
ing disposals and material inorganic cash flow compo-
nents (e.g., acquisitions).
2022 performance:
An organic free cash flow before dividends of
EUR 4.9 bn was recorded in 2022, slightly above prior
year’s level.
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 consid-
erations.
2022 performance:
Organic capital expenditure increased by 40% to
EUR 3.7 bn compared to EUR 2.6 bn in 2021, mainly
due to non-cash leases related to the construction of
the propane dehydrogenation (PDH) plant at Kallo (Bel-
gium) by Borealis.
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Capital Expenditure (CAPEX)1
Total CAPEX
In EUR mn
dehydrogenation (PDH) plant in Belgium, which in-
cluded non-cash effective CAPEX related to leases in
the amount of around EUR 0.5 bn and equity injection
into Borouge 4 LLC to finance the Borouge 4 project.
Furthermore, the CAPEX increase was driven by the
construction of the ReOil ® demo plant in Austria.
The increase in Refining & Marketing CAPEX was
driven by turnaround activities, repair works at the
Schwechat refinery, as well as investments in the co-
processing unit at Schwechat.
The increase in Exploration & Production CAPEX
was mainly related to investments in Romania, Malay-
sia and New Zealand.
Chemicals & Materials CAPEX increased mainly due
to investments in the construction of the new propane
The reconciliation of total capital expenditure to the
investments as shown in the cash flow statement is
depicted in the following table:
Capital expenditure
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)
+/– Non-cash changes1
Cash outflow from investments in intangible assets and property, plant and equipment
+ Cash outflow from investments, loans and other financial assets
Investments as shown in the cash flow statement
2022
4,201
(47)
(490)
2021
2,691
(33)
(33)
3,664
2,624
(721)
2,943
736
3,679
(127)
2,497
382
2,879
∆
56%
(41)%
n.m.
40%
n.m.
18%
93%
28%
1 Non-cash changes mainly impacted by new leases for the construction of the new propane dehydrogenation plant in Belgium by Borealis
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
57
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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 po-
sition
Free cash flow after dividends
2022
9,843
7,758
(1,966)
5,792
(2,660)
(72)
3,060
5,064
8,124
35
8,090
4,333
2021
8,897
7,017
(1,820)
5,196
(2,977)
(25)
2,195
2,869
5,064
14
5,050
4,199
∆
11%
11%
(8)%
11%
11%
n.m.
39%
77%
60%
n.m.
60%
3%
Cash flow from operating activities amounted to
EUR 7,758 mn, up by EUR 742 mn compared to 2021.
This was primarily attributable to an improved market
environment, however, partly offset by lower dividends
received from Abu Dhabi Polymers Company Limited
(Borouge).
Cash flow from investing activities showed an out-
flow of EUR (1,966) mn in 2022, compared to
EUR (1,820) mn in 2021. Cash flow from investing ac-
tivities in 2022 included inflows from the Initial Public
Offering of Borouge PLC in the amount of
EUR 745 mn, a partial loan repayment from Bayport
Polymers LLC of EUR 602 mn, as well as the divest-
ment of the retail network in Germany of EUR 432 mn.
Moreover, cash flow from investing activities in 2022
contained outflows from the capital contribution to Bor-
ouge 4 LLC of EUR (408) mn as well as cash disposed
of EUR (208) mn related to the loss of control of JSC
GAZPROM YRGM Development. In 2021, cash flow
from investing activities 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, and EUR 94 mn related
to the sale of the shares in Kom-Munai LLP and Tasbu-
lat Oil Corporation LLP (Kazakhstan).
Cash flow from financing activities showed an out-
flow of EUR (2,660) mn compared to EUR (2,977) mn
in 2021. Significantly higher dividend payments were
made in 2022, however, this was more than offset by
higher repayments of bonds in the previous year.
58
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Notes to the income statement
Summarized income statement
In EUR mn (unless otherwise stated)
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 (%)
2022
2021
62,298
2,512
64,811
35,555
1,533
37,087
(39,298)
(6,205)
(2,484)
(2,689)
(250)
(1,639)
12,246
(20,257)
(4,302)
(3,750)
(2,746)
(280)
(688)
5,065
(1,481)
(194)
10,765
(5,590)
5,175
71
1,470
3,634
52
4,870
(2,066)
2,804
94
617
2,093
42
Δ
75%
64%
75%
94%
44%
(34)%
(2)%
(11)%
n.m.
n.m.
n.m.
n.m.
n.m.
85%
(25)%
n.m.
74%
10
Sales to third parties 2022 (2021)
Total not consolidated sales 2022 (2021)
In EUR mn if not otherwise stated (prior year)
In EUR mn if not otherwise stated (prior year)
Sales revenues increased by 75% to EUR 62,298 mn
mainly due to substantially higher market prices. For
the sales split by geographical areas, please refer to
the Notes to the Consolidated Financial Statements
(Note 4 – Segment Reporting).
Other operating income increased from EUR 933 mn
in 2021 to EUR 1,644 mn. 2022 was mainly impacted
by EUR 409 mn gains from the sale of the filling station
business in Germany, EUR 341 mn gains from the suc-
cessful listing of Borouge PLC on ADX (the Abu Dhabi
Securities Exchange), insurance income of around
EUR 200 mn recognized with respect to the incident in
the Schwechat refinery in June 2022 and higher operat-
ing foreign exchange gains. For further details, please
refer to the Notes to the Consolidated Financial State-
ments (Note 6 – Other operating income and net in-
come from equity-accounted investments).
Net income from equity-accounted investments in-
creased from EUR 600 mn in 2021 to EUR 869 mn in
2022 mainly due to the positive contribution of Abu
59
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Dhabi Oil Refining, partially offset by a lower result from
Borouge investments, mostly as a result of lower poly-
ethylene and polypropylene prices.
Net expenses related to depreciation, amortization,
impairments and write-ups decreased compared to
2021. This was mainly due to the fact that 2021 was
burdened by impairments booked related to the at-eq-
uity accounted investment ADNOC Refining CGU and
the nitrogen business unit of Borealis. 2022 contained
mainly a write-up of EUR 266 mn of the nitrogen busi-
ness unit of Borealis based on the new offer from AG-
ROFERT, a.s. and a net impairment amounting to
EUR 117 mn based on the impairment testing in the
Exploration & Production portfolio triggered by updated
commodity price assumptions. For further details,
please refer to the Notes to the Consolidated Financial
Statements (Note 7 – Depreciation, amortization, im-
pairments and write-ups).
Other operating expenses increased from
EUR 688 mn in 2021 to EUR 1,639 mn in 2022 mainly
due to deconsolidation of investments in Russia and re-
measurement of the asset from reserves redetermina-
tion rights with respect to the acquisition of interests in
the Yuzhno-Russkoye field. For further details, please
refer to the Notes to the Consolidated Financial State-
ments (Note 2 – Accounting policies, judgements and
estimates, section “Impact of Russia’s invasion of
Ukraine and related significant estimates and assump-
tions“).
Notes to the statement of financial position
Summarized statement of financial position
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
Net financial result decreased from (194) mn in 2021
to (1,481) mn in 2022. This development was mainly
related to the impairment of the Nord Stream 2 loan in
the amount of EUR (1,004) mn and the fair value ad-
justment of investments in Russia in the amount of
EUR (370) mn. For further details, please refer to the
Notes to the Consolidated Financial Statements (Note
2 – Accounting policies, judgements and estimates,
section ”Impact of Russia’s invasion of Ukraine and re-
lated significant estimates and assumptions,” and Note
18 – Financial assets). These effects were partly offset
by the improved foreign exchange result and the in-
creased net interest result attributable mostly to higher
interest income on cash deposits.
The effective tax rate increased from 42% in 2021 to
52% in 2022. The 2022 effective tax rate was mostly af-
fected by a positive contribution from countries with a
high tax regime. For further details on the Group’s ef-
fective tax rate, please refer to the Notes to the Consol-
idated Financial Statements (Note 12 – Taxes on in-
come and profit).
2022
2021
Δ
32,384
22,369
1,676
33,724
18,595
1,479
26,628
15,607
13,567
626
56,429
21,996
17,216
13,677
909
53,798
(4)%
20%
13%
21%
(9)%
(1)%
(31)%
5%
Current assets:
Inventories increased from EUR 3,150 mn in 2021 to
EUR 4,834 mn in 2022 mainly impacted by the filling of
our natural gas storage facilities and increased natural
gas prices as well as increased balances for finished
petroleum products. For further details, please refer to
the Notes to the Consolidated Financial Statements
(Note 17 – Inventories).
60
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Cash and cash equivalents significantly increased
from EUR 5,050 mn to EUR 8,090 mn. For more de-
tails, please refer to the Notes to the cash flow state-
ment in the Director’s Report chapter.
The above described increase was partly offset by
lower derivatives, which decreased from EUR 3,737
mn to EUR 2,377 mn, mainly related to the gas busi-
ness.
Non-current assets:
Net assets held for sale and liabilities associated
with assets held for sale:
The increase in 2022 was mainly due to the reclassifi-
cation of Rosier SA and the operating entities in Yemen
to held for sale.
This effect was partly offset by the sale of the filling sta-
tion business in Germany. For further details please re-
fer to the Notes to the Consolidated Financial State-
ments (Note 20 – Assets and liabilities held for sale).
Intangible assets and property, plant and equip-
ment were impacted by significant CAPEX spendings.
However these effects were offset mainly by deprecia-
tion and impairment charges as well as the deconsoli-
dation of JSC GAZPROM YRGM Development. For fur-
ther details, please refer to the Notes to the Consoli-
dated Financial Statements (Note 2 – Accounting poli-
cies, judgements and estimates, section “Impact of
Russia’s invasion of Ukraine and related significant es-
timates and assumptions”).
Equity-accounted investments increased by
EUR 407 mn to EUR 7,294 mn impacted by
EUR 408 mn capital contribution into Borouge 4 LLC,
positive results especially from ADNOC Refining and
Borouge investments, positive FX impacts as well as
EUR 67 mn net write-up of the investment in ADNOC
Refining CGU, partially offset by EUR 801 mn dividend
distributions as well as EUR 430 mn disposal due to
the successful listing of Borouge PLC. For further de-
tails, please refer to the Notes to the Consolidated Fi-
nancial Statements (Note 16 – Equity-accounted in-
vestments).
Financial assets included in 2021 drawdowns and the
related accrued interests under the financing agree-
ments for the Nord Stream 2 pipeline project, the total
outstanding amount of which EUR 1 bn was fully im-
paired in 2022. Furthermore, in 2021 an acquired con-
tractual position towards Gazprom with regard to the
reserves redetermination in the amount of EUR 432 mn
was included. The fair value of this position was re-
duced to zero in 2022, as OMV no longer expects it to
be recoverable. For further details, please refer to the
Notes to the Consolidated Financial Statements
(Note 2 – Accounting policies, judgements and esti-
mates, section “Impact of Russia’s invasion of Ukraine
and related significant estimates and assumptions”).
Current liabilities:
Bonds increase was mainly related to short-term re-
classifications of EUR 1,250 mn, which was partly off-
set by a repayment in the amount of EUR 750 mn. For
further details please refer to the Consolidated Finan-
cial Statements (Note 24 – Liabilities).
Income tax liabilities increase of EUR 1,147 mn re-
lated mainly to Norway and was due to significant in-
crease in taxable income. Payment of the outstanding
liability in Norway will be made in the first half of 2023.
Financial liabilities from derivatives decreased from
EUR 3,607 mn to EUR 1,263 mn, mainly related to the
gas business.
Non-current liabilities:
Bonds decrease was mainly related to short-term re-
classifications of EUR 1,250 mn. For further details,
please refer to the Notes to the Consolidated Financial
Statements (Note 24 – Liabilities).
Lease liabilities increased from EUR 887 mn to
EUR 1,322 mn mainly due to the new obligation related
to the propane dehydrogenation (PDH) plant of Bore-
alis. For further details, please refer to the Notes to the
Consolidated Financial Statements (Note 15 – Prop-
erty, plant and equipment).
Pensions & similar obligations decrease to
EUR 997 mn (2021: EUR 1,299 mn) was mainly im-
pacted by various reassessment effects. For further de-
tails please refer to the Consolidated Financial State-
ments (Note 23 – Provisions).
Other provisions decreased from EUR 643 mn to
EUR 377 mn mainly due to the reassessment of provi-
sions for onerous contracts. For further details, please
refer to the Notes to the Consolidated Financial State-
ments (Note 23 – Provisions).
61
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Chemicals & Materials
In the Chemicals & Materials segment, OMV is 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
2022
1,457
967
332
582
2,039
1,896
560
534
390
486
74%
5.66
1.69
1.84
1.25
0.88
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
∆
(34)%
(33)%
(38)%
n.m.
12%
127%
20%
18%
(33)%
(34)%
(16)
(5)%
(7)%
(13)%
(0)%
19%
Note: Following the successful listing of 10% of the total issued share capital of Borouge PLC on June 3, 2022, Borealis now holds a 36% stake in Borouge PLC,
thus lowering financial and operational contributions as of the date of listing.
1 Capital expenditure including acquisitions, notably, 2022 included an equity injection to Borouge 4 of EUR 0.4 bn
2 Pro-rata volumes of at-equity consolidated companies
Financial performance
The clean Operating Result declined in 2022 by 34%
to EUR 1,457 mn (2021: EUR 2,224 mn). A substan-
tially higher contribution from the nitrogen business and
the positive impact from stronger olefin margins were
more than offset by considerably weaker European pol-
yolefin margins, significantly lower positive inventory
valuation effects, lower sales volumes in Europe, and a
reduced contribution from the Borealis JVs.
The contribution of OMV base chemicals decreased
despite higher ethylene and propylene indicator
margins, mainly as a result of the planned turnaround
of the Burghausen steam cracker and the incident at
the crude distillation unit at the Schwechat refinery on
June 3, 2022. The ethylene indicator margin Europe
grew by 20% to EUR 560/t (2021: EUR 468/t), while the
propylene indicator margin Europe increased by
18% to EUR 534/t (2021: EUR 453/t). While the first
half of the year was characterized by strong demand
for olefins and supply shortages, the second half saw a
sharp decline in demand, which was partially
compensated for by lower operational rates of
European crackers. Declining naphtha prices, after the
peak in the first quarter, provided support to the olefins
indicator margins in a very volatile market environment.
Lower production due to the reduced utilization rate at
the Schwechat and Burghausen steam crackers, higher
costs of the feedstock mix, which also includes other
intermediates besides naphtha, and growing utility
prices weighed on the result.
The utilization rate of the European steam crackers
operated by OMV and Borealis went down by 16 per-
centage points to 74% (2021: 90%). The utilization rate
in 2022 came in lower as a result of the planned turna-
round of the steam crackers in Burghausen and
1 On June 2, 2022, Borealis received a binding offer from AGROFERT, a.s. for the acquisition of its nitrogen business including fertilizer, melamine and technical
nitrogen products.
62
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Stenungsund, but also as a result of the incident at the
crude distillation unit at the Schwechat refinery on
June 3, 2022.
The contribution of Borealis excluding JVs declined
by EUR 470 mn to EUR 967 mn (2021: EUR 1,437 mn).
This was primarily due to substantially lower polyolefin
indicator margins and significantly lower positive inven-
tory valuation effects, while the outstanding perfor-
mance of the nitrogen business and higher olefin indi-
cator margins provided some support. The Borealis
base chemicals business experienced a decline despite
improved olefin indicator margins, mainly caused by
negative inventory valuation effects and the impact
from the planned turnaround at the Stenungsund steam
cracker. The polyolefin business saw a strong decline
in polyolefin indicator margins and substantially lower
positive inventory valuation effects. In 2021, polyolefin
indicator margins experienced historic highs, driven by
strong demand in the European markets coupled with a
tight supply-demand balance, as a result of a heavy
maintenance season and worldwide logistical con-
straints. The polyethylene indicator margin Europe
decreased by 33% to EUR 390/t (2021: EUR 582/t)
while the polypropylene indicator margin Europe
came down by 34% to EUR 486/t (2021: EUR 735/t). In
the first half of 2022, polyolefin indicator margins
started to normalize from the highs of 2021, at a slow
pace to start, but deteriorated substantially in the sec-
ond half of the year on the back of a slump in demand
induced by the global economic slowdown and infla-
tionary pressure on customers. In addition, increased
availability of imported volumes into Europe put pres-
sure on the margins. While the realized margins for
standard products saw a substantial negative impact
due to the emerging demand weakness and higher util-
ity costs, margins for specialty products experienced
slight improvements. Higher feedstock discounts and
stronger prices, above market indicators, for certain
product categories provided some relief. Polyethylene
sales volumes went down by 7%, while polypropyl-
ene sales volumes decreased by 13% compared to
2021. The decrease in sales volumes stemmed mainly
from the consumer products and infrastructure indus-
tries, while the mobility industry experienced a slight in-
crease. The contribution from the nitrogen business
saw a substantial increase compared to 2021. Fertilizer
margins were substantially higher compared to 2021,
as a tight supply situation more than offset the in-
creased natural gas prices. The reclassification as as-
set held for sale also impacted the result positively.
The contribution of Borealis JVs declined by
EUR 202 mn to EUR 332 mn (2021: EUR 534 mn),
mainly due to lower contributions from Borouge and
from Baystar. The favorable impact of a stronger USD
managed to partially compensate for these effects. Pol-
yethylene sales volumes from the JVs remained at
the previous year’s level, while polypropylene sales
volumes from the JVs increased by 19%. In 2022,
Borouge sales volumes benefited in particular from the
ramp-up of the new polypropylene unit (PP5). A one-
time effect from pension provisions negatively impacted
the result in 2022 at Borouge, and the successful listing
of 10% of Borouge’s total issued share capital on
June 3, 2022, lowered financial and operational contri-
butions in comparison to 2021. The pricing environment
in Asia weakened compared to 2021, as new polyolefin
production capacities came online and consumer de-
mand was dampened by COVID-19 lockdowns. Com-
pared to 2021, Baystar experienced a softer market en-
vironment and was impacted by the full depreciation
charge after the start-up of the ethane cracker and in-
creased interest expenses, while the new unit experi-
enced only a slow ramp-up in light of operational chal-
lenges.
Net special items amounted to EUR 582 mn (2021:
EUR (396) mn) and were mainly related to the success-
ful listing of a 10% share in Borouge, which led to a
gain from disposal of around EUR 0.3 bn. In addition,
the binding offer received from AGROFERT for Bore-
alis’ nitrogen business triggered a write-up of around
EUR 0.3 bn. The Operating Result of Chemicals &
Materials came in at EUR 2,039 mn, compared to
EUR 1,828 mn in 2021.
Capital expenditure in Chemicals & Materials
amounted to EUR 1,896 mn (2021: EUR 835 mn). The
increase was driven by an equity injection to Borouge 4
of around EUR 0.4 bn in 2022 and growth in organic
capital expenditure. In 2022, besides ordinary running
business investments, organic capital expenditure was
predominantly related to investments by Borealis in the
construction of the new propane dehydrogenation plant
in Belgium, which included non-cash effective CAPEX
related to leases in the amount of around EUR 0.5 bn,
the construction of the ReOil® demo plant in Austria,
and the turnaround at the Burghausen refinery.
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OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Business overview
In the Chemicals & Materials segment, OMV is 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 OMV and Borealis and its two
joint ventures: Borouge (with ADNOC, based in the
UAE and Singapore) and Baystar (with TotalEnergies,
based in the United States).
The segment comprises the production of base chemi-
cals integrated with OMV operated refineries in Austria
and Germany, the Borealis business of base chemi-
cals, polyolefins, and fertilizers, and the joint ventures
Borouge and Baystar. With a strong European footprint
through Borealis and its two joint ventures, Borouge
and Baystar, 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 refinery-integrated, OMV-operated steam
crackers in Schwechat and Burghausen mainly use
naphtha as a feedstock, the steam crackers operated
by Borealis in Stenungsund and Porvoo feature high
feedstock flexibility using naphtha, ethane, propane,
butane, or any LPG mix as feedstock. In Kallo, Borealis
runs a propane dehydrogenation unit based on 100%
propane feedstock.
The OMV Group produces base chemicals such as ole-
fins (ethylene, propylene, butadiene, and high-purity
isobutene) and aromatics (benzene and phenol).
▸ Ethylene and propylene are important chemical
building blocks for producing polyolefins (polyeth-
ylene and polypropylene), for example, which are in
turn used to manufacture a wide variety of con-
sumer and industrial products.
▸ Aromatics such as benzene are used as starting
materials for heat insulating materials and con-
sumer products, including clothing, pharmaceuti-
cals, cosmetics, computers, and sports equipment.
▸ C4s (e.g., butadiene and butene) are used in a vari-
ety 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 polyols for coat-
ings 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).
The year 2022, was a challenging year with a very vol-
atile market, which was caused by several main fac-
tors: the Russian invasion of Ukraine, high energy
costs, high inflation, and decreasing demand across
the year.
In comparison to 2021, the ethylene and propylene in-
dicator margins were higher in 2022, driven by low
feedstock prices, except for the peak in Q1/22, and
high monomer contract prices. In Q1/22, even though
the olefin market was tight, margins were negatively im-
pacted by the war in Ukraine. Starting from April 2022,
naphtha availability in Europe increased due to lighter
refinery feedstock and lower demand from China. To-
gether with a healthy demand in the spring turnaround
season this led to historically high margins in Q2/22. Af-
ter July, both the ethylene and propylene markets be-
came extremely long. All crackers in Europe reduced
throughput based on weak demand and high energy
prices. Low Rhine water levels caused logistical con-
straints on the derivative market throughout the sum-
mer months. As the market was struggling with these
constraints, thanks to declining naphtha prices, the
healthy indicator margin could be kept throughout
Q3/22. However, demand did not improve from the
summer lull into fall, the dramatic collapse in demand
continued until the end of the year. The cracker rates in
Europe reduced to global minimum levels of 60% to
65% in Q4/22 due to extremely weak demand.
The propane dehydrogenation (PDH) margin remained
on a healthy level in the first half of 2022 on the back of
a decent propane spread versus naphtha. Margins
dropped severely in the third quarter, driven by lower-
ing demand and a strengthening propane price versus
naphtha due to higher propane demand, mainly in Asia.
Margins improved again in the last quarter of the year
driven by lowering propane demand due to lockdowns
in China and a mild winter in Europe.
1 On June 2, 2022, Borealis received a binding offer from AGROFERT, a.s. for the acquisition of its nitrogen business including fertilizer, melamine and technical
nitrogen products.
64
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Butadiene demand was healthy in Q1/22, but with in-
creasing naphtha prices, the indicator margins were at
the lowest level of the year. Starting from May, supply
was low due to reduced cracker rates on a long olefin
market, however, the market was still balanced as the
demand was low. The skyrocketing natural gas prices
in Europe put its chemical industry under great strain,
with high energy prices, a significant driver of inflation,
and economic weakness lowering demand. Most pro-
ducers had to add energy surcharges to their prices.
The highest butadiene price and indicator margin of the
year was achieved in August.
Following the historically high levels reached in 2021,
polyolefin margins slowly normalized in the first half of
2022, supported by a busy spring turnaround season,
particularly in the second quarter. As of the third quar-
ter, margins deteriorated due to plummeting demand
resulting from the global GDP slowdown, and inflation-
ary pressure on customers. In the meantime, the robust
recovery of the international container freight market,
which in December 2022 had approached pre-
COVID-19 levels, allowed imports to surge. Toward the
end of the year, polyolefin margins recovered slightly
thanks to low operating rates.
Following the ISCC PLUS-certification at the Burghau-
sen refinery in March 2022, OMV successfully sold its
first ISCC PLUS certified benzene volumes this year.
The benzene crack hit an all-time high in July at around
EUR 900/t, however, the crack significantly weakened
later in the year and reached around zero by year end
due to volatile market conditions. Uncertainty in eco-
nomics, logistical constraints and skyrocketing gas
prices affected production costs and demand heavily.
Polyolefins
Through its subsidiary Borealis, OMV 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 addition, 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.
Renewables and circular chemicals
Plastics continue to play a vital role in the economy and
in our business, making our lives more efficient, con-
venient, and safe. Yet, when insufficient effort is made
to recover and reuse plastics, most of them end up in
landfill or incineration. The vision of a circular economy
where we optimize resource efficiency and reuse, recy-
cle and re-purpose endlessly is both a business imper-
ative and an opportunity. Demand for recycled plastics
is growing due to increasing public awareness of the
importance of using resources sustainably to ensure a
climate-neutral future.
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 that are manufactured with second-generation re-
newable feedstock. While mechanical recycling has
proven to be effective and will likely remain the eco-effi-
cient method of choice for the foreseeable future,
chemical recycling will play an increasingly important
role to complement it for hard-to-recycle materials.
In June, Borealis launched the Borvida™ portfolio of
circular base chemicals: Borvida™ B is produced using
non-food waste biomass, while Borvida™ C is made of
chemically recycled waste. The traceability of these
ISCC PLUS-certified products – which include eth-
ylene, propylene, butene, and phenol – is ensured
thanks to the mass balance method of documenting
and tracking renewable-based content across complex
manufacturing systems. The Borvida™ portfolio will be
extended in due course with the Borvida™ A range
sourced from atmospheric carbon capture.
65
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
In October 2022, planning started for the construction
of a novel and advanced commercial-scale mechanical
recycling plant in Schwechat (Austria) to augment the
three existing polyolefin recycling operations currently
operated by Borealis in Europe. The plant will be based
on the proprietary Borcycle™ M technology, which
transforms polyolefins-based post-consumer waste into
high-performance polymers. Once operational in 2025,
the new plant will have an annual production capacity
in excess of 60,000 t. These large volumes will ensure
the ample supply of high-quality recyclate so as to fulfill
growing demand for circular products and solutions.
Since 2021, Borealis has procured pyrolysis oil for the
chemical recycling process from Belgium-based Re-
nasci with which it manufactures Borcycle™ C circular
polyolefins and base chemicals at several of its own
production locations. Since then, Borealis has gradually
increased the stake it holds in Renasci: from 10% in
2021 to just over 27% in November 2022, and as of
January 2023 to a current majority shareholding posi-
tion of 50.01%.
OMV is currently constructing a demo plant based on
its proprietary ReOil® technology to scale up its chemi-
cal recycling capacities. The plant has a capacity of
16,000 t p.a. and is scheduled to start up in 2023. The
feedstock will consist mainly of polyolefins and will be
sourced in Austria 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. OMV’s
next step toward an industrial-scale plant with a pro-
cessing capacity of up to 200,000 t/year is planned for
2026.
Fertilizers, melamine, and technical nitrogen
products
Through its subsidiary Borealis, OMV 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.
In 2020, the OMV Group announced that it had started
the divestment process for the nitrogen business unit,
which includes fertilizers, technical nitrogen, and mela-
mine. A binding offer received from EuroChem in Feb-
ruary 2022 was declined in March after assessing the
consequences of the war in Ukraine and related sanc-
tions. In June 2022, Borealis received a binding offer
from Czech-based AGROFERT that valued the busi-
ness on an enterprise value basis at EUR 810 mn.
Pending regulatory approval, closing is anticipated for
the first quarter of 2023. The sale of the Company’s
share in Rosier, which operates the production sites in
the Netherlands and Belgium, to Yilfert Holding was
completed on January 2, 2023.
Joint ventures
Borouge (Borealis 36%, ADNOC 54%, free float 10%)
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 Indian subcontinent,
and Africa.
In June 2022, Borouge, became the largest-ever IPO in
Abu Dhabi when it was listed on the Abu Dhabi Securi-
ties Exchange (ADX). The IPO offered 10% of Bor-
ouge’s total issued share capital and raised over
USD 2.0 bn in gross proceeds. It drew USD 83 bn in or-
ders and was oversubscribed by nearly 42 times in ag-
gregate.
Baystar (Borealis 50%, TotalEnergies 50%)
Baystar is a joint venture between TotalEnergies Petro-
chemicals & 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.
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OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Growth projects
Borouge
Borouge continued to drive growth in 2022. February
saw the ground-breaking ceremony for Borouge 4, the
new USD 6.2 bn facility under construction at the Bor-
ouge complex in Ruwais (UAE). Once operational, Bor-
ouge 4 will help meet growing demand for polymers in
the Middle East and Asia, and will also supply feed-
stock to the adjacent TA’ZIZ Industrial Chemicals Zone.
The successful start-up of PP5, the fifth Borouge poly-
propylene (PP) unit, also took place in February, boost-
ing total Borouge PP capacity by more than 25%. The
new PP5 unit is leveraging the proprietary Borstar®
technology to deliver greater quantities of polymer-
based material solutions for a wide range of industries,
from packaging and consumer goods to pipe and infra-
structure.
Baystar
The largest Borealis growth project underway in
North America is the Baystar™ joint venture with
TotalEnergies in Port Arthur, Texas. A new ethane-
based steam cracker was started up in July 2022. With
an annual production capacity of 1 mn t of ethylene, the
cracker supplies feedstock to Baystar’s existing
polyethylene (PE) units. In the future, it will also supply
ethylene to the new, 625,000 metric-ton-per-year
Borstar® PE unit once construction and ramping up
have been completed. Baystar is a crucial growth
anchor as it enables Borealis to bring Borstar to North
America for the first time.
Kallo
Progress was made in the first half of 2022 at the new
world-scale propane dehydrogenation (PDH) plant in
Kallo (Belgium). However, construction was stopped af-
ter misconduct on the part of the site’s contractor,
IREM, was uncovered. Borealis suspended, then termi-
nated all contracts with IREM and its subcontractors
due to non-compliance with fundamental contractual
principles. Work resumed in October following a re-ten-
dering process. Start-up of the new PDH plant is ex-
pected in the second half of 2024. Borealis has zero
tolerance for non-compliance in all aspects of its opera-
tions and has since implemented more extensive con-
trols and monitoring measures to ensure full future
compliance.
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 using a pyrolysis pro-
cess since 2018. This synthetic crude is then pro-
cessed mainly into monomers and other hydrocarbons
in the Schwechat refinery. The pilot plant has been run-
ning for a total of 18,000 hours since its commissioning,
enabling improvements in the thermal cracking process
and supporting the further scale-up of the ReOil® tech-
nology. OMV and Borealis are pursuing the clear ambi-
tion of becoming a leading player in chemical and me-
chanical recycling technologies. In November 2022,
OMV has signed a Memorandum of Understanding with
Wood, a global leader in consulting and engineering
solutions in energy and materials markets, to enter into
a mutually exclusive collaboration agreement for the
commercial licensing of OMV’s proprietary ReOil® tech-
nology.
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. Borealis is investing in R&D
and new technologies in order to accelerate Value Cre-
ation through Innovation, particularly in the circular
sphere.
Around 500 people are active in R&D at the Borealis
Group. This figure includes scientists and researchers
at the Innovation Headquarters in Linz (Austria) and the
two innovation centers in Stenungsund and Porvoo.
Borealis continues to be among the top-ranked compa-
nies in Austria with respect to patent filings. In 2022,
Borealis filed 128 new priority patent applications at the
European Patent Office. This is just short of its previous
record of 133 patent applications filed in 2021. As of
January 2023, the Borealis Group holds around 11,500
individual patents or patent applications which are sub-
sumed in approximately 1,450 patent families. The
growing number of patents is proof positive of the
Group’s dedication to Value Creation through Innova-
tion.
The K 2022 trade fair held in Germany in October was
the ideal stage for showcasing the many new products
and material solutions generated through innovation
67
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
and collaboration. Center stage was taken by the
Borstar® Nextension technology, a step change for per-
formance-based polyolefins. The unique combination of
Borstar® technology and single-site Borstar® Nexten-
sion catalysts improves PP properties and produces a
wider range of tailored polyolefins. Borstar® Nextension
facilitates easier recycling because its use in multilayer
applications allows for the replacement of multiple dif-
ferent materials with only one material; it thus encour-
ages design for recycling by enabling monomaterial so-
lutions. The single-site catalysts for this breakthrough
technology are manufactured at a newly built Borealis
plant in Porvoo (Finland). Two BorPure™ and a nonwo-
ven grade based on Borstar® Nextension technology
were also launched in October, each offering superior
performance combined with circularity and material effi-
ciency.
Grades from the Bornewables™ portfolio of premium
circular polyolefins based on renewably sourced feed-
stocks are being used to develop an increasing number
of novel applications, many of which are generated
through value chain collaboration. To name just a few
of the products made using grades from the Bornewa-
bles™ range and presented at the K 2022: the MAM
Original Pure climate-neutral baby pacifier, a coffee-to-
go cup in the Tupperware ECO+ product line, a reusa-
ble and fully recyclable lightweight plastic bottle co-de-
veloped by Borealis and Trexel, and a series of rigid
food packaging applications based on Bornewables™
and Borcycle™ C co-developed by Borealis and ITC. In
the Pipe sector, collaboration with Uponor resulted in
the first PE-X pipes based on Bornewables™ feed-
stock, while co-operation with NUPI produced next-
generation PP-RCT pipes based on Bornewables™.
Other circular highlights of 2022 include three fully re-
cyclable, PE monomaterial pouch solutions; lightweight
and ultra-lightweight reusable cups made of Borealis
PP using the patented Bockatech EcoCore plastic
foaming technology; a series of flexible packaging for-
mats incorporating 50% PCR; and the world’s first shoe
made from carbon emissions, On’s Cloudprime, con-
taining high-performance, easy-to-process ethylene vi-
nyl acetate foam supplied by Borealis. In June, the first
Borcycle™ M jacketing compound containing up to
50% PCR was launched, thereby promoting enhanced
circularity in the Wire & Cable sector. Finally, in the au-
tomotive sector, Borealis announced in October that
collaboration with Tier One supplier Magna had pro-
duced the first and largest-ever all-thermoplastic tail-
gate for the new Volkswagen Multivan, a prime exam-
ple of customer-centric innovation resulting in high-per-
formance yet lighter-weight parts that help reduce the
carbon footprint of vehicles.
68
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 the cus-
tomer experience, it will also support the achievement
of sustainability goals. In particular, digital solutions for
the circular economy of plastics will become more im-
portant for the success of the Group’s carbon neutrality
journey.
For that reason, Borealis decided in 2017 to implement
a digital program and to create a state-of-the-art IT and
digital organization, which led in 2018 to the creation of
the Borealis Digital Studio in Brussels (Belgium). The
Digital Studio is Borealis’ creative and agile enabler for
developing smart solutions for customers and employ-
ees. It consists of a diverse, cross-functional team of
digital professionals, including designers, usability ex-
perts, business analysts, software developers and engi-
neers. Its mission is to support the Group’s businesses
as they adapt to a rapidly changing environment and to
keep Borealis sustainably profitable, by creating inno-
vative digital solutions that have a positive impact on
the Group, its people, and the environment. Adding
value is key when creating digital solutions and end-us-
ers are always at the heart of the process, as the solu-
tions are built both with and for them, following the agile
methodology. Together with the Borealis IT organiza-
tion, the Digital Studio explores innovation options with
the business functions.
An innovative game-based interactive learning solution
helps employees and contractors learn the Group’s Life
Saving Rules and Process Safety Rules in a very im-
mersive way, allowing them to apply theory to practice
without stopping production or risking injury. The train-
ing combines a 3D-modeled plant environment, an en-
gaging story, and motivating gamification elements to
simulate safety scenarios, enabling people to learn
faster and retain knowledge better than traditional
methods. In addition, Borealis has explored virtual real-
ity technology to complement existing training methods
and support the Group’s journey to reach Goal Zero.
Borealis is employing artificial intelligence (AI) models
to improve quality. A solution that uses image recogni-
tion to trace contamination has been rolled out to multi-
ple locations across the Group. It gives customers
peace of mind by ensuring they receive very clean pol-
ymer material, which is especially relevant for high-volt-
age insulation applications in the Energy business. In
addition, Borealis’ plastic recycling businesses are us-
ing AI to improve their intake quality and waste sorting,
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
which in turn supports the Group with advancing the
circular economy.
The online portal for polyolefins customers, MyBorealis,
supports customer service representatives and sales
managers in their daily interactions with customers. It
puts easy order management at the customers’ finger-
tips, along with a complete library of order, product, 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 Europe,
North America, and South America to use it. By the end
of 2022, 20% of the order volume came in via the por-
tal, up from 18% at the start of the year.
Borealis has developed a solution for recording and fol-
lowing up on the condition of equipment at its plants.
The integrated digital tool allows the operator to access
and enter real-time data in the field, using tablets com-
pliant with ATEX, the two European Directives for con-
trolling explosive atmospheres. Additionally, a failure
prediction model using Borealis’ cloud-based data and
analytics platform has been rolled out on rotating equip-
ment. The model allows live anomaly detection and will
be adapted for other equipment types, contributing to
higher reliability for the Group’s production assets.
Other initiatives to increase reliability include introduc-
ing autonomous robots with sensors for monitoring data
points from equipment, using smart glasses to enable
skilled experts to provide remote assistance in the field,
and creating a Group-wide data platform containing 3D
scans of critical spare parts. To better support Borealis’
complex activities in plant turnarounds, a Management
Tool for Turnaround and Projects has been rolled out,
which fully integrates planning and progress reporting
on work orders, as well as the Go4Zero tool, which
supports safety follow-up for employees and contrac-
tors.
At the K 2022 trade fair, Borealis presented Neoni, a
new carbon dioxide equivalent (CO2e) emissions calcu-
lator that is currently under development. This digital
tool is the first in the industry to offer CO2e emissions
data down to the grade level for polyolefins, providing
more transparency to Borealis’ customers so they can
make informed decisions on which materials best meet
their circularity goals. Neoni offers a partial carbon foot-
print of products from Life Cycle Assessments (LCAs),
in the form of cradle-to-gate CO2e emissions. This
means the calculation includes all CO2e emissions in-
curred up to the moment the grade leaves Borealis’ fa-
cilities. The tool will soon offer customers the option to
calculate additional CO2e emissions incurred from Bo-
realis to their own operations, further enhancing its use-
fulness. Neoni presents CO2e emissions for a wide
range of materials, from virgin, fossil feedstock-based
solutions to renewable feedstock-based grades in the
Bornewables™ portfolio of circular polyolefins, as well
as those in the Borcycle™ portfolio of mechanically re-
cycled polyolefins. The results from the tool will be ac-
cessible to customers on MyBorealis, the online plat-
form for Borealis customers.
69
OMV ANNUAL REPORT 2022 / 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 & Power Eastern Europe
Special items
CCS effects: inventory holding gains/(losses)1
Operating Result
Capital expenditure2
OMV refining indicator margin Europe based on Brent3,4
Utilization rate refineries Europe
Fuels and other sales volumes Europe
thereof retail 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
2022
2,415
350
605
774
202
3,392
821
14.71
73%
15.51
6.16
2021
945
(11)
188
(924)
430
451
633
3.66
88%
16.34
6.40
∆
155%
n.m.
n.m.
n.m.
(53)%
n.m.
30%
n.m.
(15)
(5)%
(4)%
Note: As of 2022, the gas business was split into Gas Marketing Western Europe reported under Exploration & Production, and Gas & Power Eastern Europe
reported under Refining & Marketing. Previously, the gas business was fully reflected in Refining & Marketing. For comparison only, 2021 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 As of Q2/22, the refining indicator margin reflects the change in the crude oil reference price from Urals to Brent at OMV Petrom. For comparison only, 2021
figures are presented based on the new calculation logic.
4 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 increased signifi-
cantly to EUR 2,415 mn (2021: EUR 945 mn). Excep-
tional refining indicator margins, a significantly better
result in Gas & Power Eastern Europe, and a remarka-
ble ADNOC Refining & ADNOC Global Trading result
more than compensated for the negative production ef-
fects following the turnaround and incident at the
Schwechat refinery, higher costs driven by turnaround
activities, and a lower retail result.
The OMV refining indicator margin Europe went up
sharply to USD 14.7/bbl (2021: USD 3.7/bbl). Higher
cracks for diesel, gasoline, and jet fuel were only
partially offset by rising fuel and losses due to the
further Brent price increase, and lower heavy fuel oil
cracks. In 2022, the utilization rate of the European
refineries decreased by 15 percentage points to 73%
(2021: 88%), mainly caused by the turnaround and the
incident at the Schwechat refinery, as well as the
turnaround at the Burghausen refinery in the second
and third quarters of 2022. At 15.5 mn t, fuels and
other sales volumes in Europe decreased slightly by
5%, mainly as a consequence of lower supply
availability in Schwechat and the divestment of the
German retail business, partly offset by higher jet fuel
70
sales volumes. The result of the commercial business
declined slightly, mainly due to the price cap
regulations in several countries, especially in Hungary
and Slovenia. This was partially offset by increased
demand for jet fuel driven by the easing of travel
restrictions. The contribution from the retail business to
the result decreased significantly, mainly driven by the
divestment of the German retail network in May 2022,
higher utilities costs, lower fuel unit margins following
the price caps in several countries, and higher fixed
costs driven by inflation. This was partially offset by
better performance in the non-fuel business and cost-
cutting efficiency measures.
In 2022, the contribution of ADNOC Refining & AD-
NOC Global Trading to the clean CCS Operating Re-
sult grew substantially to EUR 350 mn (2021:
EUR (11) mn), mainly as a result of higher refining mar-
gins, and robust operational performance at ADNOC
Refining. In addition, ADNOC Global Trading provided
strong support to the result compared to the same pe-
riod of the previous year.
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
The contribution of the Gas & Power Eastern Europe
business to the result more than tripled to EUR 605 mn
(2021: EUR 188 mn), mainly due to the positive impact
of increasing gas selling prices, high gas margins on
gas transactions outside Romania, and better power re-
sults due to higher margins following higher power sell-
ing prices. This was partially offset by Petrom Gas &
Power being significantly regulated through extended
scope of capped prices and of overtaxation, for both
gas and power.
Net special items amounted to EUR 774 mn (2021:
EUR (924) mn) and were primarily related to the sale of
the German filling stations in May 2022 and commodity
derivatives. In 2021, special items were mainly related
to an impairment in ADNOC Refining in the amount of
EUR (669) mn. CCS effects of EUR 202 mn were rec-
orded in 2022 as a consequence of increasing crude oil
prices. The Operating Result of Refining & Marketing
rose substantially to EUR 3,392 mn (2021:
EUR 451 mn).
Capital expenditure in Refining & Marketing amounted
to EUR 821 mn (2021: EUR 633 mn). Organic capital
expenditure in 2022 was predominantly related to the
European refineries and the retail network. The in-
crease in capital expenditure in 2022 was mainly due to
turnaround activities, repair works at the Schwechat re-
finery, and investments in the co-processing unit at
Schwechat.
Business overview
The Refining & Marketing business segment refines
crude oil and other feedstocks, and markets fuels as
well as natural gas and power. Its activities include Re-
fining, Supply and Trading, Commercial, Retail, and
Gas & Power Eastern Europe. OMV owns a total refin-
ing capacity of around 500 kbbl/d, with three wholly
owned refineries in Europe and a 15% share in AD-
NOC Refining and ADNOC Global Trading. In Europe,
refining activities are highly integrated with marketing to
serve a strong branded retail network and a broad base
of commercial customers. Total fuels and other sales
volumes Europe amounted to 15.51 mn t in 2022. The
strongly branded retail network comprising 1,803 filling
stations accounts for around 40% of the sales volumes,
while commercial customers are mainly from industrial
transportation and construction sectors and account for
the remaining sales volumes. In the Gas & Power East-
ern Europe business, OMV Petrom operates a gas-
fired power plant in Romania and is engaged in gas
and power sales.
Refining including product supply and sales
Throughout 2022, we saw exceptional refining margin
strength. A boom in benchmark refining margins took
hold from the end of the first quarter, when middle dis-
tillate tightness really started to become apparent. The
Russian invasion of Ukraine, which was followed by a
raft of “self-sanctioning” measures by western firms in
the trade of Russian oil, contributed significantly to this
tight picture. Resurgent demand in the first half of the
year also exposed significant tightness in the global re-
fining system’s ability to supply additional distillate vol-
umes.
This distillate tightness was consistently the driver of
refining economics over the course of the year. With
Russia’s established role as a key supplier of distillate
molecules into the European market severely curtailed,
the value of distillate molecules in Europe surged. This
peak was sustained throughout the second quarter,
with ultra-low sulfur diesel in Rotterdam averaging a
premium of close to USD 50/bbl to Dated Brent over
the quarter. Jet quotations tracked a similar high-pre-
mium path. The refining system’s struggle to meet de-
mand was also evident in the rate at which inventories
were drawn down in high-visibility hubs over the first
half of the year. A significant degree of tightness in the
production capacity of core refined products can in part
be attributed to a raft of capacity losses since the high
water mark for demand in 2019.
Late in the second quarter turned out to be the high
point for benchmark margins, as refinery supply in-
creasingly caught up with demand as the year pro-
gressed. As product supply increased in response to
the unprecedented rally in middle distillate and gasoline
cracks over the second quarter, headwinds in naphtha
and heavy products became increasingly apparent.
Naphtha cracks versus Brent in Europe lost more and
more ground over the first half of 2022, averaging a dis-
count of more than USD 35/bbl versus Dated Brent in
June and posting only a moderate recovery over the
second half of 2022. Demand for naphtha remained
weak as petrochemical margins remained under signifi-
cant pressure. Fuel oil cracks similarly failed to post
any appreciable recovery from the declines seen over
the first part of the year. High-sulfur fuel oil in Rotter-
dam came off its mid-year lows when it was trading at a
discount of more than USD 40/bbl versus Dated Brent,
but remains heavily discounted.
71
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
The extreme divergence of product cracks throughout
2022 reflects the forced rearrangement of interregional
crude and product flows as Russia, a major supplier of
both, was shut out of many importing markets. At the
same time, European in particular and to some extent
Asian gross margins had to reflect the much higher
cost of refinery production (i.e., energy and refinery
fuel) throughout 2022, which is itself a function of the
changes in the European natural gas market on the
back of geopolitical upheaval. In sum, the cost of sup-
plying the marginal diesel barrel to the market in 2022
was significantly higher than in 2021.
OMV’s European refineries achieved a utilization rate
of 73% in 2022, which was influenced strongly by the
planned turnaround activities in the Schwechat and
Burghausen refineries, and the incident at the crude oil
distillation unit in Schwechat. During the legally re-
quired water pressure test as part of the final work on
the OMV Schwechat refinery’s turnaround, significant
damage occurred to the crude oil distillation unit on
June 3, following a mechanical incident. After repair
work completed in record time, and without a single in-
cident, the crude oil distillation unit resumed full opera-
tions on October 7, 2022.
Despite the challenging environment caused by the un-
stable geopolitical situation and the incident at the
Schwechat refinery, commercial sales delivered ahead
of expectations in many areas. The Operating Result
was mainly driven by well-executed price management,
even with lower volume availability. To closely reflect
the market developments and market outlook, OMV’s
commercial products and services are being expanded,
including the launch of several new, more sustainable
products. Sustainable Aviation Fuel (SAF), for example,
contributes to a reduction of CO2 emissions of more
than 80% as a result of processing regionally sourced
used cooking oil. Starting with the production of around
2 kt of Sustainable Aviation Fuel in 2022, OMV plans to
scale production up and to market 700 kt per year by
2030. In terms of sales, OMV is already delivering SAF
to Austrian Airlines at Vienna Airport. In addition, MoU
agreements with Lufthansa, Ryanair and Wizz Air were
signed in 2022, for the supply of up to 1,145 kt SAF in
the period 2023–2030.
ADNOC Refining & Trading
Alongside majority shareholder ADNOC (65%) and Eni
(20%), OMV is a strategic partner in ADNOC Refining
after acquiring 15% of the company’s shares at the end
of July 2019. In 2022, ADNOC Refining operated its
major refinery in Ruwais, which is the world’s fourth
largest refining complex with integrated petrochemicals.
In comparison to 2021, in 2022 the ADNOC Refining
business benefitted from a higher margin environment
and improved operational performance. With the same
ownership structure as ADNOC Refining, ADNOC
Global Trading (AGT) trades the majority of ADNOC
Refining’s export volumes of products and supplies
non-domestic crudes, condensates, and other liquids
for processing.
AGT extends the successful Refining & Marketing busi-
ness model into key geographic regions and to strate-
gic partners. By continuously optimizing trade flows, it
allows ADNOC Refining to access competitive non-do-
mestic feedstock sources and implement best practices
such as risk management.
During 2022, AGT performance was strong, continuing
to pursue its business ambition and substantially grow-
ing its third-party trading.
Refining capacities 2022
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 a challenging environment due to both the war
in Ukraine and the shortage in supply, mostly as a re-
sult of the crude oil distillation unit incident at the
Schwechat refinery, the retail business achieved a re-
markable result in 2022 and proved again to be a sta-
ble outlet for refinery products and a strong cash gener-
ator.
Total sales partially recovered to 6.1 mn t, equivalent to
approximately 7.6 bn l, strongly supported by an ongo-
ing growing cards business. At the end of the year, the
network comprised 1,803 filling stations (2021: 2,088).
OMV especially benefitted from its proven multi-brand
strategy in this challenging price environment. The
OMV brand is positioned as a premium brand, with
VIVA representing a strong shop, gastronomy, and ser-
vice offering, while the unmanned Avanti brand in Aus-
tria and the Petrom brand in Romania serve price-sen-
sitive customer groups. Sales of OMV’s premium-brand
fuels MaxxMotion have been under pressure due to the
overall consumer price environment, but still contrib-
uted to the overall Retail result as a high margin prod-
uct. The non-fuel business, including VIVA conven-
ience stores and car washes, continued to grow and
72
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
outperformed 2021. In Austria and Slovakia, a new
third-party store partnership with REWE has been suc-
cessfully introduced. In multiple countries, the loyalty
system has been successfully upgraded by utilizing
state-of-the-art digital solutions.
footprint. Gas transactions executed outside Romania,
diversifying the supply portfolio with LNG, and the en-
larged customer portfolio (including small businesses
and even residential customers) were successfully
managed, improving the results.
The OMV network partners with third parties to provide
EV-charging facilities at more than 150 sites, and has
introduced the first OMV owned and operated EV
chargers in Austria. Further investments in OMV’s own
EV-charging infrastructure will be one of the strategic
key pillars within the Retail business. Approximately
380 sites are equipped with photovoltaic installations,
underlining OMV’s focus on sustainability and resili-
ence.
Following a clear strategy of active portfolio manage-
ment, OMV has decided to divest certain parts of its re-
tail network. Closing of the divestment of the OMV net-
work in Germany (285 filling stations) to the EG Group
took place in April 2022. The announced divestment of
OMV Slovenia (118 filling stations) to the MOL Group is
dependent on the Merger Clearance process carried
out by EU authorities. Furthermore, a divestment
agreement was signed for Avanti Germany comprising
the sale of 17 unmanned filling stations to PKN Orlen in
December 2022.
Gas & Power Eastern Europe
In 2022, the European gas market was characterized
by unprecedented high gas prices and significant vola-
tility. This situation is expected to continue.
Similarly, in Romania, both gas and power markets
faced unseen volatility and unpredictability levels with
high prices and a drop in demand. A series of regula-
tory interventions and market constraints significantly
impacted operations and results, and will continue to do
so in the future.
In Romania, OMV Petrom’s gas and power activities
once again delivered a record high Operating Result,
reflecting outstanding business performance built on
the profitable optimization of product, market, and cus-
tomer portfolios. Natural gas sales volumes to third par-
ties reached 35.8 TWh in 2022 compared to 38.4 TWh
in 2021, a very strong performance given the market
environment. As the overall market demand was signifi-
cantly down, OMV Petrom’s gas volumes covered an
increasing share of the overall consumption. OMV
Petrom managed to source high gas volumes from third
parties, thus successfully covering its sales channels.
In addition, activities in the neighboring markets, both
for gas and power, have been expanded, laying a
strong foundation for further extension of our regional
OMV Petrom’s net electrical output increased to
5.01 TWh, +5% compared to 2021, and a record high
level of production since the start of operations. The
Brazi power plant covered around 9% of the national
power generation mix, reaching a record high contribu-
tion to the security of the national power system. The
Brazi power plant celebrated in August 2022, ten years
since its commissioning, having generated over
34 TWh of electricity during this period. Looking for-
ward, the Brazi power plant remains a pillar of the Ro-
manian power market, natural gas being a good fit for
renewable energy.
Nord Stream 2
OMV is a financial investor in the Nord Stream 2 pipe-
line project along with four other European companies.
In 2022, OMV decided to impair the entire outstanding
loans and accrued interest (approximately EUR 1 bn).
For further details, please refer to Note 2 – Accounting
policies, judgements and estimates, section ‘Impact of
Russia’s invasion of Ukraine and related significant es-
timates and assumptions’.
Innovation and new technologies
OMV actively explores alternative feedstocks, technolo-
gies, and fuels with the aim of developing a well-diver-
sified, competitive future portfolio. Additional attention
is given to the production of conventional and ad-
vanced biofuels, synthetic fuels, and green hydrogen
as precursors for sustainable feedstock for chemicals.
OMV is in the execution phase of the Co-Processing
project at the Schwechat refinery. This technology ena-
bles OMV to process biogenic feedstocks (e.g., domes-
tic rapeseed oil) together with fossil-based materials in
an existing refinery hydrotreating plant during the fuel
refining process. This will reduce OMV’s carbon foot-
print by up to 360,000 t by substituting fossil diesel. Op-
erations are scheduled to begin in 2023. In 2022, OMV
started pilot production of Sustainabile Aviation Fuel
(SAF) from another co-processing route in Schwechat,
and completed the first conversion runs of biogenic
feedstock to ethylene in the refinery in Burghausen.
OMV secured a long-term contract with AustroCel Hal-
lein to supply OMV with advanced bioethanol totalling
up to 1.5 mn l per month starting in January 2021. This
73
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
will reduce emissions by around 45,000 t of CO2 per
year.
Digitalization
Digitalization remains a significant part of optimizing
our value and operational efficiency with activities in
2022 bringing EUR 26 mn benefit over the coming four
years. Highlighted examples for 2022 include:
A digitalized predictive cleaning schedule for the heat
exchangers in our crude distillation units in Austria and
Romania resulted in both better energy efficiency and
higher throughput. These data-driven optimizations
generated savings of EUR 1.7 mn p.a. and contributed
to our sustainability targets by saving approximately
37,000 t CO2 p.a.
Our new digital Customer Engagement Platform saw
the launch of our customer portal in 2022, which ena-
bles customers to enjoy the benefits of a modern col-
laboration platform with features such as instant infor-
mation on placed orders or checking available credit
lines.
The significant digital milestone for our retail business
came with the launch of the OMV MyStation app, a mo-
bile app that went live in 2022 in five countries. The app
had already counted approximately 402,000 users by
the end of 2022, and digitalized OMV’s loyalty program,
among other functions. To further improve the cus-
tomer experience, future functionality will aim to also in-
clude options in the areas of sustainability and cus-
tomer service. The loyalty club, enhanced by the app,
contributed to an increase in our premium fuels share,
which for a loyalty member is double that of a non-
member (34% share of premium fuels for members).
Over the last two years, the Robotic Process Automa-
tion (RPA) has automated 107 routine processes and
delivered benefits of over EUR 2.8 mn of year-on-year
savings.
OMV is assessing the potential production of advanced
fuels made out of residue or waste streams. Unlike
conventional biofuels, the use of advanced fuels is not
capped. The principal sources of advanced fuels in-
clude biomass fraction from mixed municipal or indus-
trial waste, straw, animal manure, or residues from for-
estry and wood processing, as well as waste streams.
OMV is currently constructing a pilot plant for the con-
version of advanced glycerine to propanol. Commis-
sioning is expected in the second half of 2023. OMV
also collaborates with technology providers, industry
partners, and academic institutions to assess the pro-
duction of advanced biofuels and chemicals.
While the above mentioned bio- and synthetic products
will predominantly be sold as fuels initially due to a
mandated market, they can also be used as chemical
feedstock.
OMV and its partners are working on the UpHy project
with the intention of producing green hydrogen for use
in both the mobility sector and the refining process.
OMV is building an electrolysis plant at the Schwechat
refinery for this purpose, to be powered with renewable
electricity in order to produce zero-carbon hydrogen.
The green hydrogen will initially be used for fuel hydro-
genation, including biofuels and Sustainable Aviation
Fuels.
OMV, together with partners including BASF and
thyssenkrupp Uhde, has initiated the consortium Meth-
anol-to-SAF (M2SAF). The aim of the M2SAF project is
to develop a novel process technology to facilitate the
selective production of SAF that can be used as a drop-
in fuel up to 100%. This production process should
generate only minimal additional CO2 emissions and
should be easy to integrate into existing production
plants. The starting point of the process is sustainably
produced methanol from CO2 and green hydrogen. As
part of the overall concept of renewable fuels, the
M2SAF development project is being funded to the
tune of EUR 3.1 mn by the German Federal Ministry for
Digital and Transport (BMDV). In addition to catalyst
development, process development, plant integration,
and the design of a demo plant, the project also in-
cludes techno-economic and environmental analysis,
as well as related support for the certification and anal-
ysis of the new jet fuels.
74
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Exploration & Production
In the Exploration & Production business segment, OMV boosted value delivery and cash generation from
the portfolio of oil and gas assets, while building up a dedicated Low Carbon Business unit in line with the
ongoing energy transition and to support the OMV Group’s transformation.
At a glance
Clean Operating Result
thereof Gas Marketing Western Europe
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 price2,3
Average realized natural gas price2,4
in EUR mn
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
2022
7,396
(300)
(460)
6,936
1,443
202
250
8.20
392
379
1,037
2021
2,892
55
18
2,910
1,194
210
281
6.67
486
462
1,295
in USD/bbl
in USD/bbl
in EUR/MWh
101.32
95.04
53.78
70.91
65.60
16.49
Δ
156%
n.m.
n.m.
138%
21%
(4)%
(11)%
23%
(19)%
(18)%
(20)%
43%
45%
n.m.
Note: As of 2022, the gas business was split into Gas Marketing Western Europe reported under Exploration & Production, and Gas & Power Eastern Europe
reported under Refining & Marketing. Previously, the gas business was fully reflected in Refining & Marketing. For comparison only, 2021 figures are presented in
the new structure.
1 Capital expenditure including acquisitions
2 Average realized prices include hedging effects.
3 As of Q2/22, the transfer price at OMV Petrom between the E&P segment and the R&M segment is based on Brent instead of Urals. Previous figures have not
been restated.
4 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 2,892 mn to EUR 7,396 mn in 2022. Exceptionally
strong market effects of EUR 5,280 mn as a
consequence of substantially higher oil and gas prices
were partially offset by negative operational effects of
EUR (679) mn due to the missing contribution of
Russia following the change in the consolidation
method, and a substantially lower Gas Marketing
Western Europe result. In addition, production
decreased in Romania, Malaysia, and Libya, while
production increased in the United Arab Emirates after
a revision of OPEC+ restrictions. Sales volumes
decreased to a slightly lesser extent compared to
production as a consequence of the scheduling of
liftings. Depreciation of EUR (97) mn weighed on
results, mainly driven by higher production in the United
Arab Emirates and Norway. Gas Marketing Western
Europe lowered the result, mainly due to losses caused
by the Russian supply curtailments and volatility,
receivables impairments, and valuation adjustments. A
change in the reporting logic for LNG activities had a
partially positive offsetting effect.
Net special items amounted to EUR (460) mn in 2022
(2021: EUR 18 mn), which were mainly caused by the
change in the consolidation method for Russian
operations and the fair value adjustment to contractual
position related to the reserve redetermination for the
Yuzhno-Russkoye natural gas field. Valuation effects of
commodity derivatives in Gas Marketing Western
Europe and temporary hedging effects were partial
offsets. The release of a provision in the LNG business
also had a positive effect. The Operating Result
reached EUR 6,936 mn (2021: EUR 2,910 mn).
Production cost excluding royalties increased to
USD 8.2/boe in 2022 (2021: USD 6.7/boe), mainly
driven by the change in the consolidation method of
Russian operations as of March 1, 2022, and general
price inflation.
The total hydrocarbon production volume
decreased by 95 kboe/d to 392 kboe/d, caused above
all by the change in the consolidation method of
Russian operations as of March 1, 2022. Natural
decline in Romania, planned maintenance in Malaysia,
and force majeure in Libya following politically
motivated closures were the most prominent additional
75
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
adverse factors. Production increased in the United
Arab Emirates after a revision of OPEC+ restrictions.
production. The average realized gas price in
EUR/MWh more than tripled to EUR 53.80/MWh.
Total hydrocarbon sales volumes dropped by a
lesser extent than production volumes, to 379 kboe/d
(2021: 462 kboe/d). The deviation between production
and sales volumes is explained by the scheduling of
liftings.
In 2022, the average Brent price reached
USD 101.3/bbl, a substantial growth of 43% compared
to the previous year. The Group’s average realized
crude price improved by 45%, supported by a change
in the transfer price calculation for Romanian crude oil
Production
Capital expenditure including capitalized E&A was
raised to EUR 1,443 mn in 2022 (2021:
EUR 1,194 mn), rebounding from the previous
austerity-induced level. Organic capital expenditure
was primarily directed at projects in Romania, New
Zealand, and Norway. Exploration expenditure was
EUR 202 mn in 2022, and was thus broadly on a
similar level compared to 2021. It was mainly related to
activities in Malaysia, Romania, and Norway.
2022
2021
Oil and
NGL
in mn bbl
Natural gas¹
in bcf
in mn boe in mn boe
Total
Romania²
Austria
Kazakhstan²
Norway
Libya
Tunisia
Yemen
Kurdistan Region of Iraq
United Arab Emirates
New Zealand
Malaysia²
Russia
Total
20.9
3.3
–
14.7
10.4
0.9
0.6
1.0
15.4
3.0
0.6
–
70.8
122.0
19.7
–
102.2
–
14.7
–
15.8
–
47.1
60.0
37.7
419.2
22.6
3.3
–
17.0
–
2.4
–
2.6
–
7.8
10.0
6.3
72.1
43.5
6.6
–
31.7
10.4
3.4
0.6
3.6
15.4
10.8
10.6
6.3
143.0
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
1.0
10.8
3.5
1.7
–
72.9
129.9
20.6
0.7
102.3
–
17.3
–
15.6
–
51.8
64.5
210.6
613.2
24.0
3.4
0.1
17.0
–
2.9
–
2.6
–
8.6
10.8
35.1
104.6
46.4
7.0
0.8
32.3
12.0
3.8
1.1
3.6
10.8
12.1
12.4
35.1
177.5
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
The year 2022 marked the highest financial results for
E&P, with a record clean CCS Operating Result of
EUR 7.4 bn, driven by high oil and gas prices. Despite
the production and supply impact of the Russia-Ukraine
conflict, E&P has formed strategy implementation
teams to focus on key strategic initiatives and made
progress with identifying options for optimizing its port-
folio, as well as starting the development of its Low
Carbon Business. Shortly after the Russia-Ukraine con-
flict started, OMV deconsolidated the participation in
the Yuzhno-Russkoye natural gas field and ceased to
consider Russia as a core region. Total average hydro-
carbon production came in at 392 kboe/d for 2022, with
a natural gas share of around 50%.
76
The key strategic focus of the E&P segment remains to
increase the share of natural gas over that of crude oil
and reduce carbon intensity across the portfolio. In
2022, E&P progressed well with its five major natural
gas development projects: Neptun (Romania), Jerun
(Malaysia), Berling (Norway), Ghasha (UAE), and
Māui B (New Zealand).
In 2019, OMV New Zealand announced the intended
divestment of its 69% interest in the Maari field to
Jadestone Energy. After ongoing engagement with
Jadestone Energy, a mutual decision has been made
to no longer pursue the transaction. In Yemen, the
sales contract for OMV’s assets in the country were
signed in December 2022. In Norway, the farm-out
agreements for a 20% interest in the Oswig and Velo-
cette licenses were signed on May 9, 2022, to Long-
boat Energy. On February 27, 2023, OMV announced
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
that it started the sales process for the divestment of its
E&P assets in the Asia-Pacific region: a 50% stake in
SapuraOMV Upstream Sdn. Bhd. and 100% of the
shares in OMV New Zealand Limited.
In Q1/22, E&P integrated the Gas Marketing Western
Europe business from Refining & Marketing. In light of
market developments, E&P set up a Gas Task Force
assigned with the following duties: ensuring that stor-
age facilities in Austria were filled to 100% before the
gas winter season 2022/23, establishing new payment
conditions with Gazprom Export while complying with
European sanctions, and securing additional supply
contracts and pipeline capacities, mitigating the risk for
OMV.
Central and Eastern Europe
In Romania, 55 new wells and sidetracks were drilled
and 647 workover jobs performed. Also, 700 subsur-
face abandonments were performed in 2022. OMV
Petrom successfully and safely finalized the major
planned maintenance works at both offshore and on-
shore facilities. One new well was particularly success-
ful in 2022, as it was put into production in the same
year with excellent results.
production there came back on stream by mid-July, it
remained stable until the end of the year.
In Yemen, production was stable for most of 2022 until
political unrest started in Q4/22 and disrupted the ship-
ping of crude oil for all oil and gas companies in the
country.
In Tunisia, stable production at the Nawara natural gas
field was maintained. The front-end compression sys-
tem execution project started in 2022 and an infill drill-
ing project will commence in 2023. Both projects aim at
increasing the life span of field production at the Na-
wara asset.
North Sea
In Norway, several new production wells have come on
stream.
On Gullfaks, nine wells were delivered. The Gudrun
Phase 2 Improved Oil Recovery (IOR) project was com-
pleted. This project consists of one infill well, two water
production wells, and two water injectors. Infill drilling
on Edvard Grieg was completed during 2022 and all
five wells from the Solveig field are now producing to-
ward the Edvard Grieg platform.
OMV Petrom continued to focus on the most profitable
barrels and there are ongoing activities related to selec-
tive divestments.
The Hywind Tampen offshore wind project is now deliv-
ering renewable wind power to the Gullfaks field.
In Austria, the second and final phase of the photovol-
taic plant Schönkirchen was commissioned success-
fully in 2022. The plant now delivers total peak produc-
tion of 15.32 MWp for a total power generation of
around 15.84 GWh p.a. In 2022, OMV Austria placed
significant emphasis on process safety topics. Hazard
and operability studies were performed in seven facili-
ties.
Middle East and Africa
In 2022, the Middle East and Africa region delivered
strong production results despite a challenging security
situation in Libya, Kurdistan, and Yemen. Operations
were frequently disrupted and some projects delayed.
Berling (formerly known as Iris/Hades) progressed to
FID followed by the submission of the Plan for Develop-
ment and Operations (PDO) to the Norwegian Ministry
in December 2022.
Asia-Pacific
The Jerun natural gas project in Malaysia is progress-
ing according to plan. Detailed engineering is well on
track, and the first deliveries of structural steel have ar-
rived at the fabrication yard.
In New Zealand, OMV continued the redevelopment
and optimization of the Māui and Pohokura natural gas
assets.
This strong production was due to an easing of the
OPEC quota and several OMV-driven initiatives to im-
prove the uptime and reliability of the offshore facilities
in Umm Lulu and SARB in the UAE.
Throughout this, the operations team have remained
focused on keeping the gas flowing and prioritizing op-
portunities to further reduce site emissions.
In Libya, in the first half of the year, the production from
our non-operated assets was heavily constrained due
to several force majeure events. This production defer-
ment was induced by security shutdowns as a result of
the political instability in the country. But as soon as
In Pohokura, the infill well was hooked up to the Poho-
kura onshore facility, with the well producing as ex-
pected.
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OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Workovers at Maari continued through to the end of
2022, and a strong focus on asset integrity and corro-
sion management has allowed for life span extension
initiatives to be pursued with no major issues identified
to date.
and the Deep Gas Development (also containing sev-
eral fields). The Hail & Ghasha megaproject reached
several milestones in 2022, with four out of the eleven
artificial islands being completed.
Key projects
Neptun (Romania, OMV 50%)
Starting in August 2022, OMV Petrom is now operator
of the Neptun Deep offshore license block with new
non-operating partner Romgaz. The Declaration of
Commerciality (DoC) was successfully submitted to Ro-
manian authorities in December 2022. The declaration
of commercial discovery, while a significant milestone,
represents an intermediate step in the process of mak-
ing the final investment decision. Together with its new
partner, OMV Petrom is planning FID in mid-2023.
Other major projects (Romania, OMV 100%)
The successful completion of an exploration well in July
2022 led to the discovery of large resources in the
X Craiova Block. It is currently in experimental produc-
tion. This discovery unlocks significant development
opportunities, including the drilling of appraisal and de-
velopment wells in the coming years.
The commissioning of a photovoltaic park in 2022
marked a first for OMV Petrom. As part of an energy ef-
ficiency program, we will use the power it generates for
our own consumption within the Exploration & Produc-
tion segment.
The Enhanced Oil Recovery (EOR) project consisting
of the injection of viscous salt water started in May
2022 and has been producing initial results.
Umm Lulu and SARB (United Arab Emirates,
OMV 20%)
Record production was achieved in the Umm Lulu and
SARB fields in 2022. Throughout most of the year, only
a minimal OPEC quota was applied, so that production
in both fields was close to its full potential.
Development drilling continued during the year, using
five rigs in total. Seven wells in SARB and 13 wells in
Umm Lulu were drilled, while 22 new wells were
brought on stream.
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),
78
In the Dalma project, activities on the onshore and off-
shore Engineering, Procurement, and Construction
(EPC) packages are progressing, with first gas targeted
by the middle of the decade.
Khor Mor (KRI, OMV 10%)
The Khor Mor field exceeded production expectations
despite several insurgent attacks during the year. Due
to the deteriorating security situation since June, con-
struction work on the Khor Mor expansion project is
currently on hold. The operator will evaluate the situa-
tion in the first half of 2023.
Gullfaks (Norway, OMV 19%)
In 2022, the Equinor-operated Gullfaks field delivered
strong production volumes, mainly due to reduced nat-
ural gas injection. Norway’s first floating wind farm
Hywind Tampen started electricity production in No-
vember 2022. The wind farm is expected to meet about
35% of the field’s electricity demand. By the end of
2022, seven out of eleven turbines had started produc-
tion. The remaining four were assembled in late 2022
and will be installed onsite during 2023. Nine wells
were part of the Gullfaks annual activity program in
2022.
Gudrun (Norway, OMV 24%)
The water injection project Gudrun Phase 2 has started
on the Gudrun field in the North Sea. The Improved Oil
Recovery (IOR) project will increase the oil recovery
from the main reservoir on the field and extend produc-
tion lifetime by two years, changing the drainage strat-
egy from pressure depletion to pressure support by wa-
ter injection.
Berling (Hades/Iris) (Norway, OMV 30%)
As the operator, OMV changed the name of the
Hades/Iris field development project to Berling. The
project is progressing toward FID followed by the sub-
mission of the PDO to the Norwegian Ministry in De-
cember 2022. Offers for rig charters are currently being
reviewed. Production start-up is expected in 2028.
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.
Phase 2 of the license, the Jerun project, is progressing
well according to the construction plan. Fabrication of
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
the jacket and topside is well underway and continues
to progress as planned. Works continue on the installa-
tion of mechanical equipment, piping spools, and pull-
ing electrical and instrument cables for topsides.
Māui A Crestal Infill (New Zealand, OMV 100%)
Two additional MACI wells following the successful drill-
ing program earlier this year were started. Drilling is ex-
pected to be completed in 2023.
Māui B IRF Phase 3 (New Zealand, OMV 100%)
The project scope of the Māui B IRF Phase 3 infill drill-
ing comprises the drilling, completion, tie-in, and com-
missioning of five sidetrack wells on the Māui B plat-
form. Three out of the five wells were delivered during
2022.
Exploration and appraisal highlights
In 2022, OMV, OMV Petrom, and SapuraOMV drilled
twelve exploration and appraisal wells in six different
countries. Eight of these wells were completed before
year end, while the other four were either drilling or
testing in early January 2023.
OMV operated or participated in a number of key wells,
including two successful appraisals in offshore UAE,
natural gas/condensate discoveries in Norway and Tu-
nisia, and a successful natural gas appraisal well in
New Zealand. OMV Petrom drilled three onshore explo-
ration wells in Romania resulting in two oil discoveries.
The SapuraOMV-operated Kanga drilling in Australia
was completed in June 2022. The well did not discover
any producible hydrocarbons.
The drilling of four wells in Austria, New Zealand, the
UAE, and Mexico was still ongoing at year end. These
are expected to be finalized in Q1/23 or Q2/23.
Exploration and appraisal expenditure slightly de-
creased to EUR 202 mn in 2022 (2021: EUR 210 mn).
Earlier in the year, SapuraOMV was awarded a 40%
working interest in a Production Sharing Contract for
the Offshore Exploration Block SB412 in Malaysia.
Looking to Q1/23, new wells scheduled for spudding in
January are foreseen in Romania, New Zealand, and
Tunisia.
Reserves development
Proved reserves (1P) as of December 31, 2022, de-
creased to 1,037 mn boe (thereof OMV Petrom:
380 mn boe), with a one-year Reserve Replacement
Rate (RRR) of (80)% in 2022 (2021: 77%). The three-
year rolling average RRR is 40% (2021: 105%). There
were material proved reserves additions realized in
Norway and the United Arab Emirates, with a commit-
ment to execute more development drilling and encour-
aging reservoir performance in both countries. These
additions were offset by the exclusion of reserves in
Russia since OMV ceased fully consolidating and eq-
uity accounting Russian entities. Proved plus probable
reserves (2P) decreased to 1,892 mn boe (thereof
OMV Petrom: 741 mn boe), dominated by the exclusion
of reserves in Russia, which overshadowed the positive
revision in Romania from the maturation of the Black
Sea Neptun Deep project.
Gas supply, marketing, and trading
OMV markets and trades natural gas in eight European
countries. In 2022, natural gas sales volumes
amounted to 111.2 TWh (2021: 156.8 TWh). The foun-
dation of the natural gas sales business is a diverse
supply portfolio, which consists of equity gas from Aus-
tria and Norway (amounted to 36.3 TWh in 2022) and a
variety of international suppliers. In addition to mid- and
long-term activities, short-term activities at Europe’s
main international trading hubs complement OMV’s
supply portfolio.
OMV Gas Marketing & Trading GmbH’s (OMV GAS)
sales activities are focused on a diverse customer port-
folio in the large-scale industry and municipality seg-
ments in Austria, Germany, Hungary, the Netherlands,
and Belgium. Italy, Slovenia, and France are covered
by opportunistic origination activities.
In 2022, the importance of the LNG business increased
enormously and OMV fully utilized its allotted capacity
at the Gate regasification terminal in the Netherlands.
Several LNG contracts for 2023 and 2024 have already
been concluded and concern non-Russian gas only.
This makes the LNG business a very important building
block for OMV to diversify the natural gas supply portfo-
lio, thereby enhancing supply security.
In 2022, the European natural gas market was charac-
terized by the unprecedented energy market crisis
stemming from the war in Ukraine, with very high natu-
ral gas prices, extreme price volatility, and unpredicta-
ble supply cuts from Russia. This situation is expected
to continue.
Degrading market conditions and deteriorating supply
reliability drove OMV to restructure its natural gas busi-
ness in 2022. A task force has been set up to minimize
the adverse effects stemming from the war in Ukraine,
79
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
while securing a continuous and diversified supply
stream. This involves regular reporting of the security of
supply status regarding OMV’s portfolio in terms of the
overall natural gas supply situation, storage filling lev-
els, and a continuous definition and adjustment of
hedging strategies that mitigate the inherent price risk
of gas supply disruptions. Natural gas supply diversifi-
cation strategies were defined and executed, and OMV
has successfully secured additional natural gas trans-
portation capacities. Furthermore, OMV was able to
fully utilize the capacity of its storage facilities. These
measures have succeeded in securing OMV’s portfolio
and in increasing the resilience of the supply situation
for the coming years. This will mitigate the impact of
Russian gas supply curtailments in Germany and Aus-
tria.
Gas logistics
OMV operates natural gas storage facilities in Austria
and Germany with a capacity of 30 TWh. Additionally,
OMV holds a 65% stake in the Central European Gas
Hub (CEGH), the leading natural gas trading hub in
Central and Eastern Europe.
The unprecedented energy market crisis caused by the
war in Ukraine has had a significant impact on the Eu-
ropean storage market. The storage utilization period of
2022 started with very low levels all over Europe.
Global demand, based on recovery from the pandemic,
shortage of supply, and market uncertainty due to the
war led to an inverse summer/winter spread, with sum-
mer prices exceeding winter prices. European regula-
tions concerning storage filling levels and unprece-
dented volatility of prices across the entire energy com-
plex dominated the market. In this difficult environment,
OMV was able to fill its storage capacity in Austria and
Germany to 100% by mid-October 2022, storage level
at year end was at 97%.
At the Central European Gas Hub, 633 TWh of natural
gas was nominated at the Virtual Trading Point (VTP)
in 2022. This volume corresponds to approximately
seven times Austria’s annual natural gas consumption.
The EEX CEGH Gas Market traded total volumes of
425 TWh in Austria, an increase of 84%, and 51 TWh
in the Czech Republic, an increase of 79%.
Low Carbon Business
By 2030, OMV aims to invest around EUR 5 bn in low-
carbon geothermal energy, Carbon Capture and Stor-
age (CCS), and further renewable power solutions like
photovoltaic or onshore and offshore wind power gen-
eration. OMV will also explore opportunities in energy
storage solutions, e.g., subsurface storage of hydro-
gen.
With these investments, OMV expects to generate an
operating cash flow of EUR 0.5 bn per annum by 2030.
All of the above-mentioned targets play a key role in
OMV’s Strategy 2030.
E&P started 2021 with the establishment of a dedicated
Low Carbon Business unit, which has since gained sig-
nificant momentum, both on a national and an interna-
tional level, with a variety of initiatives started and sev-
eral projects initiated and/or executed.
OMV conducted a production and injection test in fall
2022 to analyze the geothermal potential in the Vienna
Basin (Lower Austria). The test took place in the base-
ment of the Vienna Basin. The aim of the geothermal
test was to determine important reservoir parameters
and to obtain samples of the formation water in order to
decide whether this formation is suitable for producing
geothermal energy for direct heat use.
In Germany, OMV has a 50% interest in a geothermal
exploration project called Thermo in Lower Saxony.
This involves a small aircraft taking gravity and mag-
netic measurements over an area of around 5,000 km²
to gather geological information. This information will
be used to assess the geothermal energy potential and
will be part of a comprehensive evaluation of future ge-
othermal activities in the area.
In partnership with Complexul Energetic Oltenia (CE
Oltenia), OMV Petrom will build four photovoltaic (PV)
parks with a total power capacity of ~450 MW. Accord-
ing to current estimates, the PV parks should supply
electricity to the national energy system starting 2024.
Further opportunities for photovoltaic projects in Lower
Austria, as well as in other Austrian and international
locations, are currently under evaluation.
A strong focus of the OMV Low Carbon Business is on
Carbon Capture and Storage (CCS), particularly to sup-
port the hard-to-abate industry sectors in their goal of
reducing their CO2 emissions. One of OMV’s focus ar-
eas is offshore Norway, where currently, several CCS
opportunities and projects are being assessed together
with dedicated, experienced partners.
Innovation and new technologies
The Innovation & Technology department provides key
expertise and cutting-edge technologies to ensure
OMV’s strategic goal of decarbonization and becoming
a net-zero emissions company.
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OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Technology scouting, innovation, and development is
performed by a highly integrated team covering the en-
tire value chain of energy projects: Surface, Subsur-
face, Laboratory, and IT Solutions, in strong collabora-
tion with OMV Petrom and renowned universities like
Stanford.
Multidisciplinary project teams focus on evaluating
technologies and performing essential work for the en-
ergy transition by building and providing expertise for
future technology applications in hydrogen generation,
geothermal energy, as well as carbon capture, utiliza-
tion, and storage.
Development of state-of-the-art online monitoring, artifi-
cial intelligence and machine learning subsurface work-
flows, water treatment, and drone technologies ensure
safe, sustainable, and stable operations worldwide.
The Innovation & Technology team demonstrates its
position as a reliable technology and innovation partner
by delivering technology to product solutions, support-
ing major field developments in the UAE for ADNOC,
and enabling stable natural gas production and supply
through the deployment of technology for the OMV
Petrom Neptun Deep project in Romania.
Technology deployment in the area of Smart Oil Recov-
ery (SOR) – an innovative method to optimize En-
hanced Oil Recovery (EOR) in mature reservoirs – al-
lows for incremental oil production. In the next genera-
tion of EOR, we will use alkaline viscous salt water with
increased mobilization effects especially in our Austrian
reservoirs.
Technologies that OMV successfully implements are
showcased to the public at the OMV Innovation &
Technology Center (ITC) in Austria. The Tech Center &
Lab team in Austria and OMV Petrom Upstream Labor-
atories (ICPT) in Romania support all OMV assets glob-
ally as centers of excellence for analyses, testing, tech-
nology research, and consulting.
Digitalization
The year 2022 was a pivotal year for OMV, as the
group embarked on a journey toward a circular busi-
ness model along the pathways laid out in OMV’s new
Strategy 2030. Digitalization and innovation will play a
key role on this journey. The tools and systems we
have been putting in place for the E&P division over the
last several years, as well as the new ways of working
in cross-geographical, multidisciplinary teams are bear-
ing fruit and will enable us to apply the available tech-
nology in new markets, such as low-carbon business.
In 2022, OMV joined forces with partners to implement
the innovative DELFI environment across the majority
of our operated ventures. This subsurface data and in-
terpretation platform allows multidisciplinary teams to
collaborate using the same data, both onsite and re-
motely. Over the course of the year, over 200 users
and almost 1 petabyte of data were migrated to the
new public cloud platform using over 80 individual ap-
plications. In 2023, the full rollout of DELFI across the
organization will be completed.
Building on the successful implementation of the DELFI
platform, OMV’s best-in-class machine learning-sup-
ported stochastic reservoir modeling and decision anal-
ysis workflow was implemented in DELFI. The workflow
is based on the results of the OMV-Stanford University
project. The workflow leads to the integration of energy
production optimization, economics, and decision-mak-
ing. It includes OMV proprietary elements.
Construction of our Operations Cockpit began at our
base in Gänserndorf (Austria). Once completed, it will
connect experts globally to optimize production and op-
erating costs.
OMV implemented a 3D intelligent digital twin and aug-
mented reality inspection and maintenance tool for our
operations in New Zealand, significantly enhancing the
preparation and planning of maintenance activities
there. We are utilizing the 3D visualization of our facili-
ties to build inspection plans and complete the inspec-
tions using iPads and the HoloLens.
In 2022, OMV continued to automate its drilling activi-
ties. We commissioned the construction of the first au-
tomated onshore rig in OMV’s portfolio in Romania as
part of our automated well delivery process. The auto-
matic rig will improve HSSE performance by removing
people from the rig’s danger zones. It will increase drill-
ing efficiency by reducing time and costs due to a more
effective execution of tasks. We expect that it will help
us reduce the overall drilling cost per well by almost
10%. In addition, CO2 emissions will be reduced by 80 t
per well.
Following our AI (Artificial Intelligence) Strategy, we
have established a new AI Ecosystem capability to fos-
ter the increasing importance of AI and Machine Learn-
ing (ML). The ecosystem provides all of the organiza-
tional, technical, and process-related prerequisites for
delivering customer-centric AI and ML products, so as
to enable the in-house development of AI use cases
and products by our Data Analytics experts.
81
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Outlook
On January 1, 2023, the Group introduced a new cor-
porate structure, designed to fully enable the delivery of
Strategy 2030. Following the reorganization and start-
ing from Q1/23, the Group will report on the following
business segments: Chemicals & Materials, Fuels &
Feedstock (former Refining & Marketing), and Energy
(former Exploration & Production). As part of the intro-
duction of the new corporate structure, Gas & Power
Eastern Europe, which includes Supply, Marketing, and
Trading of gas in Romania and Turkey and one gas-
fired power plant in Romania, was transferred from
Fuels & Feedstock to the Energy business segment.
Market environment
In 2023, the polyethylene sales volumes excluding JVs
are projected to be around 1.8 mn t (2022: 1.69 mn t).
The polypropylene sales volumes excluding JVs are
expected to be around 2 mn t (2022: 1.84 mn t).
Organic CAPEX related to Chemicals & Materials is
predicted to be around EUR 1.1 bn in 2023 (2022:
EUR 1.4 bn).
Fuels & Feedstock
In 2023, the OMV refining indicator margin Europe is
expected to be between USD 10/bbl and USD 15/bbl
(2022: USD 14.7/bbl).
In 2023, OMV expects the average Brent crude oil price
to be above USD 80/bbl (2022: USD 101/bbl). For
2023, the average realized gas price is anticipated to
be around EUR 35/MWh (2022: EUR 54/MWh), with a
THE price forecast between EUR 60/MWh and
EUR 70/MWh (2022: EUR 122/MWh).
In 2023, fuels and other sales volumes in OMV’s mar-
kets in Europe are projected to be slightly higher than
in 2022 (2022: 15.5 mn t). Commercial margins are
forecast to be above those in 2022. Retail margins are
forecast to be around the 2022 level.
Group
In 2023, organic CAPEX is projected to come in at
around EUR 3.7 bn1 (2022: EUR 3.7 bn), including non-
cash effective CAPEX related to leases of around
EUR 0.2 bn.
In 2023, the utilization rate of the European refineries is
expected to be around 95% (2022: 73%). A turnaround
at the Petrobrazi refinery is planned in Q2.
Organic CAPEX in Fuels & Feedstock is forecast at
around EUR 1.0 bn in 2023 (2022: EUR 0.8 bn).
Chemicals & Materials
Energy
In 2023, the ethylene indicator margin Europe is ex-
pected to be around EUR 530/t (2022: EUR 560/t). The
propylene indicator margin Europe is expected to be
around EUR 480/t (2022: EUR 534/t).
In 2023, the steam cracker utilization rate in Europe is
expected to be around 90% (2022: 74%). Turnarounds
are planned at the Schwechat cracker in Q2 and at the
Porvoo cracker in Q3.
In 2023, the polyethylene indicator margin Europe is
forecast to be around EUR 350/t (2022: EUR 390/t).
The polypropylene indicator margin Europe is expected
to be around EUR 400/t (2022: EUR 486/t).
OMV expects total production to be around 360 kboe/d
in 2023 (2022: 392 kboe/d) due to the exclusion of the
Russian volumes and natural decline, in particular in
Norway and Romania.
Organic CAPEX for Energy is anticipated to come in at
around EUR 1.6 bn in 2023 (2022: EUR 1.4 bn).
Exploration and Appraisal (E&A) expenditure is ex-
pected to be between EUR 200 mn and EUR 250 mn
(2022: EUR 202 mn).
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.
82
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Risk Management
As an international oil, gas, and chemicals company with operations extending from hydrocarbon
exploration and production through to the trading and marketing of mineral oil products, chemical
products, and natural gas, 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 the 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.
A cross-functional committee chaired by the OMV
Group CFO with senior management members of the
OMV Group – the Risk Committee – ensures that the
EWRM process effectively captures and manages ma-
terial risks across the OMV Group.
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
the OMV Group to facilitate effective risk communica-
tion, whereby ESG risks play a key role in the OMV risk
taxonomy. Twice a year, the results of this process are
consolidated and presented to the Executive Board and
the Audit Committee of the Supervisory Board. In com-
pliance with the Austrian Code of Corporate Govern-
ance, the effectiveness of the EWRM system is evalu-
ated by an 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
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.
Enterprise-Wide Risk Management
Financial and non-financial risks are regularly identified,
assessed, and reported through the Group’s Enter-
prise-Wide Risk Management (EWRM) process.
The main purpose of the 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. The OMV Group is constantly enhancing
the EWRM process based on internal and external re-
quirements, for instance developing ESG (Environmen-
tal, Social, and Governance) reporting standards and
frameworks.
83
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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 chemicals company, OMV
has a significant exposure to oil, natural gas, and
chemicals prices. Substantial FX exposure includes the
USD, RON, NOK, NZD, and SEK. The Group has an
economic net USD long position, mainly resulting from
oil production sales. The comparatively less significant
exposure in RON, NOK, NZD, and SEK, originating
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 the OMV Group’s
cash flow and liquidity are reviewed quarterly by the
Risk Committee, which is chaired by the CFO and com-
prises the senior management of the business seg-
ments 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 Explo-
ration & Production segment.
In the Refining & Marketing and Chemicals & Materials
businesses, OMV is especially exposed to volatile refin-
ing and chemicals margins and natural gas prices, as
well as inventory risks. Corresponding optimization and
hedging activities are undertaken in order to mitigate
those risks. They include margin hedges as well as
stock hedges. An optimization, trading, and hedging
risk control governance system defines clear mandates
including risk thresholds for such activities. In addition,
Emission Compliance Management ensures a bal-
anced position of emission allowances by selling the
surplus or covering the gap.
Management of interest rate risk
To balance the Group’s interest rate portfolio, loans can
be converted from fixed to floating rates and vice versa
according to predefined rules. OMV regularly analyzes
the impact of interest rate changes on interest income
and expenses from floating rate deposits and borrow-
ings.
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. In light of a
challenging geopolitical and economic environment
with high inflation, volatile commodity prices, rising in-
terest rates, and distorted supply chains, special atten-
tion is paid to early warning signals like changes in pay-
ment 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 in ac-
cordance with the Group’s defined risk management
process. Control and mitigation of assessed risks take
place at all organizational levels using clearly defined
risk policies and responsibilities. The key Group risks
are governed centrally to ensure the Group’s ability to
meet planning objectives through corporate directives,
including those relating to health, safety, security, envi-
ronment, legal matters, compliance, human resources,
and sustainability.
The process safety incident at the Schwechat refinery
that occurred on June 3, 2022, has led to a delayed
start-up of the refinery after the regular maintenance
turnaround. Immediately after the incident, a broad-
based on-site task force was set up with the remit of in-
vestigating the incident and at the same time working
on restoring operations. At the end of September, the
legally required water pressure test on the main column
of the crude distillation unit was successfully com-
pleted. After the precisely prepared commissioning pro-
cess, the OMV Schwechat refinery was fully restarted
in mid-October. For the duration of the repairs, OMV
had successfully established an alternative supply sys-
tem to ensure continuous supply to its customers.
84
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Project risks
In implementing its Strategy 2030, OMV will invest in
both organic and inorganic growth projects following a
mature project risk management process, identifying,
analyzing, and monitoring project risks on a regular ba-
sis. OMV has vast experience in managing major capi-
tal projects and mitigating project risks.
OMV may experience operational, political, technologi-
cal, or other risks beyond its control, both of its own
and of its contractual partners, which may delay or hin-
der the progress of its projects.
By way of example, the execution of major onshore and
offshore projects in Romania, Norway, or the UAE may
be affected by changes to the respective regulatory or
fiscal frameworks, by the unavailability of contractors,
or the lack of qualified staff. Project costs may be nega-
tively impacted by price inflation, labor shortages, or
the disruption or reorganization of supply chains. Pro-
jects, in particular in recycling and sustainable fuels
and feedstocks, may be affected by insufficient availa-
bility of required feedstock supply, by the inability to
commercially scale up new technologies, or by the lack
of regulatory clarity. In new business areas in particu-
lar, OMV may more often invest through partnerships
and joint ventures, which may expose the Company to
increased governance and credit risks and may nega-
tively impact project execution. The effect of any of
these risks may have a material adverse impact on
OMV’s business, results of operations, and financial
condition.
ESG risk
OMV places special emphasis on five Sustainability fo-
cus areas: Climate Change; Natural Resources Man-
agement; People; Ethical Business Practices; and
Health, Safety, and Security.
OMV Executive Board members regularly (at least
quarterly) discuss current and upcoming environmental,
climate, and energy-related policies and regulations, re-
lated developments in the fuels, chemicals, and natural
gas markets, the financial implications of carbon emis-
sions trading obligations, the status of innovation pro-
ject implementation, and progress on achieving sus-
tainability-related targets. OMV focuses on assessing
the potential vulnerabilities of the Company to climate
change (e.g., water deficiency, droughts, floods, land-
slides), the impact of the Company on the environment,
and the mitigation actions that will ensure a successful
transition to a low-carbon environment (e.g., carbon
emission reductions, compliance with new regulatory
requirements). The short- and mid-term physical vulner-
abilities related to climate change are identified and re-
ported in the EWRM process; they do not exceed
OMV’s reporting threshold. Additionally, OMV has per-
formed a robust climate and vulnerability assessment
for most of its main assets to identify its resilience to
physical risks related to climate change using the Inter-
governmental Panel on Climate Change (IPCC) sce-
narios corresponding to the time horizon suggested by
the EU taxonomy.
OMV’s operations impact our employees and the com-
munities where we operate. As a signatory to the
United Nations Global Compact, OMV follows the Hu-
man Rights Due Diligence Process, including the as-
sessment of the human rights risk associated with our
current and future business activities, and taking risk
management actions. This ongoing process makes use
of external resources and expertise, and includes exter-
nal stakeholders, in particular impacted groups.
In July 2022, upon becoming aware that the authorities
were conducting an investigation into alleged human
trafficking practices by a (sub)contractor at the propane
dehydrogenation plant construction site in Kallo (Bel-
gium), Borealis immediately offered support and pro-
vided all requested information to the authorities, in full
transparency. Borealis immediately suspended and
later terminated all contracts with the respective
(sub)contractor. Borealis has zero tolerance for any
malpractice and puts stringent measures in place to
mitigate related risks. After careful consideration, Bore-
alis granted the majority of the works to a different con-
tractor and implemented thorough social controls at the
Kallo construction site. Work on the construction site
gradually increased from October 2022. The prolonged
standstill and gradual restart of the project might affect
the project timeline.
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.
85
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Strategic risks
In order to identify strategic risks that might have poten-
tially long-term effects on the Company’s objectives,
OMV continuously monitors its internal and external en-
vironment.
Geopolitical and regulatory risks
OMV thoroughly monitors geopolitical developments, in
particular the ongoing Russian war on Ukraine and any
additional sanctions and countersanctions resulting
from it. The Company regularly reviews the impact of
potential further escalations on its business activities.
Continued and/or intensified disruptions in Russian
commodity flows to Europe could result in further in-
creases in European energy prices. Sanctions on Rus-
sia and countersanctions issued by Russia could lead
to further disruptions in global supply chains and short-
ages of products related to energy, raw materials, agri-
culture, and metals, and consequently lead to further
increases in operational costs.
OMV experienced ongoing curtailments of natural gas
delivery volumes purchased by OMV under long-term
supply agreements with Gazprom in Germany and Aus-
tria. This required replacement purchases on the mar-
ket as well as adjustments to OMV’s hedging ratios, re-
sulting in a negative financial impact for OMV. The un-
certainty regarding future curtailments and delivery vol-
umes remains and could result in further substantial
losses, especially if actual deliveries materially deviate
from previously hedged volumes, thus leading to par-
tially unmitigated gas price exposure from Gazprom
supply contracts.
In the event of further, or even full, natural gas supply
disruptions from Russia, OMV can use gas in storage
to supply customers and has access to other liquid gas
market hubs in Europe. Additionally, OMV managed to
secure 40 TWh of additional transport capacities to
Austria for the current gas year (October 1, 2022–Sep-
tember 30, 2023) at Oberkappel (pipeline from Ger-
many) and Arnoldstein (pipeline from Italy) transfer
points. OMV continues to closely monitor developments
and regularly evaluates the potential impact on the
Group’s cash flow and liquidity position.
High volatility in natural gas prices can potentially lead
to peak liquidity demands to satisfy margin calls for ex-
change trading activities at short notice. OMV has un-
used committed and uncommitted credit facilities to
meet such short-term requirements if needed. OMV is
responding to the situation with targeted measures to
safeguard the Company’s economic stability as well as
the secure supply of energy.
86
As a direct consequence of the energy crisis in Europe,
regulatory measures like price caps, subsidy schemes,
and the EU solidarity contribution are being imple-
mented in some of the countries OMV is active in. New
regulatory and fiscal interventions may also impact the
financial position of the OMV Group. The Council Reg-
ulation (EU) 2022/1854 introduced a solidarity contribu-
tion, which was transposed into the local legislation of
the Member States by the end of 2022 and applies to
2022 and/or 2023. It represents a contribution of sur-
plus profits of companies operating in the crude petro-
leum, natural gas, coal, and refinery sectors. It is calcu-
lated based on the taxable profits of those companies,
as determined under national tax rules, that are more
than 20% higher than the average taxable profits gen-
erated in the period 2018 to 2021. Based on the legisla-
tion in Austria, it is expected that two Austrian entities
of the OMV Group will be subject to the solidarity con-
tribution (Energy Crisis Contribution) for the second half
of 2022. Romania transposed this regulation via GEO
186/2022, approved and published in December 2022.
This Government Emergency Ordinance (GEO) will
subsequently follow the parliamentary approval pro-
cess, so it may be subject to change. Based on OMV
Petrom’s 2022 accounts and the provisions of this
Emergency Ordinance, OMV Petrom is not subject to
the EU solidarity contribution for the fiscal year 2022,
having less than 75% of its turnover in the defined ar-
eas: extraction of crude, extraction of natural gas, ex-
traction of coal, and refining business. No solidarity
contribution is expected for OMV Group entities in Ger-
many for the year 2022 either.
In addition to the above-mentioned geopolitical ten-
sions, OMV’s operations are exposed to further geopo-
litical risks such as the expropriation and nationalization
of property, restrictions on foreign ownership, civil strife
and acts of war or terrorism, and political uncertainties,
in particular related to Libya, Yemen, and Tunisia, as
well as other countries where OMV operates and has fi-
nancial investments. However, OMV has extensive ex-
perience in dealing with the political environment in
emerging economies. Also, possible regulatory
changes may lead to disruptions or limitations in pro-
duction or an increased tax burden. OMV continuously
observes political and regulatory developments in all
markets that affect OMV’s operations. Country-specific
risks are assessed before entering new countries.
Personnel risks
Through systematic employee succession and develop-
ment planning, Corporate Human Resources targets
suitable managerial employees to meet future growth
requirements and mitigate personnel risks.
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.
For further details on project-related risks and their man-
agement, see the OMV EMTN Prospectus dated June 17,
2022.
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Macroeconomic risks
The COVID-19 pandemic continues to have a consider-
able impact on global economic development, in partic-
ular driven by changes in China’s zero COVID-19 pol-
icy and the emergence of new variants. In addition, ge-
opolitical developments, disruptions in supply chains,
high price inflation, and the impact of rising interest
rates could lead to a significant deterioration in eco-
nomic growth.
Climate change-related risks
OMV consistently evaluates the Group’s exposure to
risks related to climate change, in addition to the mar-
ket price risk from European Emission Allowances.
Such risks comprise the potential impact of acute or
chronic events like more frequent extreme weather
events, 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,
and therefore integrates the related risks and opportu-
nities into the development of the Company’s business
strategy. Measures implemented to manage or mitigate
such risks are set out in the relevant sections of this re-
port, particularly in Sustainability and Strategy.
Business transformation risks
OMV’s transformation into a leading provider of sus-
tainable fuels, chemicals, and materials, as well as sus-
tainable energy solutions, is influenced by a variety of
uncertainties. Such risks comprise the availability of
skilled employees, technology and scale-up risks, avail-
ability of sustainable feedstock in sufficient quality and
quantity, and governance risks related to joint ventures
and partnerships.
87
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Other Information
Information required by section 243a of
the Unternehmensgesetzbuch (Austrian
Commercial Code)
1.
2.
The capital stock amounts to EUR 327,272,727
and is divided into 327,272,727 bearer shares of
no par value. There is only one class of shares.
There is a consortium agreement in place 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.1
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 of the Austrian Stock Cor-
poration Act. The issue price and the conditions
of issuance can be determined by the Executive
Board with the consent of the Supervisory Board.
The Annual General Meeting also authorized the
Executive Board, subject to the approval of the
Supervisory Board, to exclude the subscription
right of the shareholders if the capital increase
serves to
3. ÖBAG holds 31.5% and MPPH holds 24.9% of
(i)
adjust fractional amounts or
4.
5.
6.
the capital stock. 1
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 Para-
graph 1 of the Arbeitsverfassungsgesetz (Aus-
trian Labor Constitution Act). Resolutions con-
cerning the dismissal of members of the Supervi-
sory Board pursuant to section 87 Paragraph 8 of
the Aktiengesetz (Austrian Stock Corporation Act)
require a simple majority of the votes cast. To ap-
prove capital increases pursuant to section 149 of
the Austrian Stock Corporation Act and altera-
tions of the Articles of Association (except those
concerning the Company’s objects), simple major-
ities of the votes and capital represented in adopt-
ing the resolution are sufficient.
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
(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 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
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 of
the Austrian Commercial Code) or by third parties
for the account of the Company.
1 On December 21, 2022, Abu Dhabi National Oil Company has announced its plan to take over the 24.9% stake in OMV Aktiengesellschaft from Mubadala In-
vestment Company, subject to regulatory approvals.
88
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
8.
As of December 31, 2022, OMV has outstanding
perpetual hybrid notes in the nominal 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 Novem-
ber 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 in-
terest 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) un-
til, but excluding, September 1, 2030, the hybrid
notes of tranche 1 will bear interest per annum at
a reset interest rate which is determined accord-
ing 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) un-
til, but excluding, September 1, 2030, the hybrid
notes of tranche 2 will bear interest per annum at
a reset interest rate which is determined accord-
ing 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
General Meeting of OMV resolves upon a divi-
dend payment on OMV shares.
The hybrid notes outstanding as of December 31,
2022, 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
89
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
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 Paragraph 6 of
the Austrian Commercial Code, a separate con-
solidated non-financial report will be issued.
Subsequent events
Please refer to Note 37 in the Consolidated Financial Statements.
90
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
Vienna, March 9, 2023
The Executive Board
Alfred Stern m.p.
Chairman of the Executive Board
and Chief Executive Officer
Reinhard Florey m.p.
Chief Financial Officer
Martijn van Koten m.p.
Executive Vice President Fuels & Feedstock
Daniela Vlad m.p.
Executive Vice President Chemicals & Materials
Berislav Gaso m.p.
Executive Vice President Energy
91
OMV ANNUAL REPORT 2022 / DIRECTORS’ REPORT
92
CONSOLIDATED CORPORATE
GOVERNANCE REPORT
93 — 104
OMV ANNUAL REPORT 2022 / 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 evaluated externally by
independent advisors for the 2022 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 so-called “comply or explain” rules (the
“C-rules”) and all recommended rules (the “R-rules”). In
the case of C-rules 27 and 28, explanations concerning
the structure of the remuneration of the Executive
Board and the Supervisory Board of OMV are given in
the Remuneration Policy. The implementation of the
policy and the performance outcomes of the financial
year under review are set out in the Remuneration
Report for OMV’s Executive Board and Supervisory
Board, which has been prepared annually since the
2020 financial year. The Remuneration Policy and the
Remuneration Report are published on www.omv.com.
The next external evaluation of the compliance with the
ACCG is scheduled to be carried out for the 2024
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 Board
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 business segment
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
Chemicals & Materials business segment. 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
Materials Science and a Master’s in Polymer Engineer-
ing and Science, both from Montanuniversität in Leo-
ben (Austria).
Member of the Board of the European Chemical Indus-
try Council (Cefic), Brussels
Functions in major subsidiaries of the OMV Group
Company
Function
OMV Petrom S. A.
President of the Supervisory Board
Borealis AG
Chairman of the Supervisory Board
OMV Downstream GmbH Managing Director
(until January 31, 2023)
94
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Johann Pleininger, *1962
Date of initial appointment: September 1, 2015
Johann Pleininger resigned from his positions as Dep-
uty Chairman of the Executive Board, Deputy Chief Ex-
ecutive Officer, and Executive Board member for the
Exploration & Production business segment as of De-
cember 31, 2022.
Johann Pleininger started his professional career at
OMV in 1977 and later studied mechanical and indus-
trial engineering. During his time at OMV, he held vari-
ous 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.
Functions in major subsidiaries of the OMV Group
Company
Function
OMV Petrom S. A.
Member of the Supervisory Board
(until December 31, 2022)
OJSC Severneftegazprom Member of the Board of Directors
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 and strategy consulting. From 2002 to 2012, he
worked in various positions worldwide for
ThyssenKrupp 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
OMV Petrom S. A.
OMV Petrom Global
Solutions SRL
Borealis AG
Function
Member of the Supervisory Board
(since November 1, 2022)
President of the Supervision Body
Member of the Supervisory Board
SapuraOMV Upstream
Sdn. Bhd.
OMV Exploration &
Production GmbH
OMV Austria Exploration &
Production GmbH
(until December 31, 2022)
Deputy Chairman of the Board of
Directors
(until December 31, 2022)
Managing Director
(until December 31, 2022)
Chairman of the Supervisory Board
(until December 31, 2022)
95
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Elena Skvortsova, *1970
Date of initial appointment: June 15, 2020
Elena Skvortsova resigned from her position as
Executive Board member for the Marketing & Trading
business segment as of October 31, 2022.
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
OMV Petrom S. A.
Function
Member of the Supervisory Board
(until October 31, 2022)
OMV Downstream GmbH Managing Director
(until October 31, 2022)
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 business
segment
As of November 1, he also took over the Marketing &
Trading business segment.
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. Martijn van Koten joined Borealis in 2013 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.
Member of the Supervisory Board
Member of the Supervisory Board
Borealis AG
OMV Downstream GmbH Managing Director
Managing Director
OMV Gas Logistics Hold-
(until March 31, 2022)
ing GmbH
96
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Events after the balance sheet date
A new corporate structure came into force on January
1, 2023, designed to fully enable the delivery of the
Strategy 2030. The new organization is built on five dis-
tinct areas. In addition to the CEO and CFO areas,
three business segments have been established:
Chemicals & Materials, Fuels & Feedstock, and En-
ergy.
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.
Alfred Stern was in charge of the Chemicals & Materi-
als segment until January 31, 2023. On February 1,
2023, Daniela Vlad joined the Executive Board and
took over responsibility for the Chemicals & Materials
segment.
Since January 1, 2023, Martijn van Koten has been
head of the newly created Fuels & Feedstock business
segment, which will consolidate the Refining and Mar-
keting & Trading business units.
Reinhard Florey headed the Energy segment on an in-
terim basis from January 1, 2023, to February 28,
2023. On March 1, 2023, Berislav Gaso became Exec-
utive Board member with responsibility for the Energy
business segment.
97
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Supervisory Board
OMV’s Supervisory Board consists of ten members
elected by the Annual General Meeting (shareholders’
representatives) and five members delegated by the
Group’s Works Council. Two of the current sharehold-
ers’ representatives were elected at the 2019 Annual
General Meeting (AGM), one at the 2020 AGM, one at
the 2021 AGM, and six at the 2022 AGM. The mem-
bers of OMV’s Supervisory Board in 2022 and their ap-
pointments 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 until
June 30, 2022)
Seats: Umicore, Orica (since January 15, 2023)
Christine Catasta, *1958
Deputy Chairwoman (until June 3, 2022)
(Chief Executive Officer, Österreichische Beteiligungs
AG until January 31, 2022)
Seats: VERBUND AG, Telekom Austria AG, Erste
Group Bank AG
Edith Hlawati, *1957
Deputy Chairwoman (since June 3, 2022)
(Chief Executive Officer, Österreichische Beteiligungs
AG since February 1, 2022)
Seats: VERBUND AG, Telekom Austria AG, Post AG
Saeed Al Mazrouei, *1980
Deputy Chairman
(Deputy Chief Executive Officer, Direct Investments,
Mubadala Investment Company)
Seats: Abu Dhabi Commercial Bank (ADCB)
Karl Rose, *1961
(Strategy Advisor, Abu Dhabi National Oil Company un-
til July 1, 2022)
No seats in domestic or foreign listed companies
Elisabeth Stadler, *1961
(Chief Executive Officer, VIENNA INSURANCE
GROUP AG – Wiener Versicherung Gruppe)
Seats: voestalpine AG
Robert Stajic, *1979
(since June 3, 2022)
(Executive Director, Österreichische Beteiligungs AG)
Seats: VERBUND AG
Christoph Swarovski, *1970
(until June 3, 2022)
No seats in domestic or foreign listed companies
Cathrine Trattner, *1976
(until June 3, 2022)
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
Aktiengesellschaft
Delegated by the Group’s Works Council
(employee representatives)
Alexander Auer, *1969
Hubert Bunderla, *1965
Mario Mayrwöger, *1976 (since June 7, 2022)
Nicole Schachenhofer, *1976
Angela Schorna, *1980
Gerhard Singer, *1960 (until June 7, 2022)
Alyazia Ali Al Kuwaiti, *1979
(Executive Director Energy, Mubadala Investment
Company)
No seats in domestic or foreign listed companies
More detailed information about all members of OMV’s
Supervisory Board, including their professional careers,
can be downloaded from OMV’s website at
www.omv.com > About us > Supervisory Board.
Stefan Doboczky, *1967
(Chief Executive Officer, Heubach Group since January
10, 2022)
No seats in domestic or foreign listed companies
Jean-Baptiste Renard, *1961
(since June 3, 2022)
Seats: Neste Oyj (until March 30, 2022)
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 six women and four non-Austrian na-
tionals (as per December 31, 2022). The members of
the Supervisory Board are aged between 42 and 70.
98
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
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 Annual 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 Annual General Meeting
have declared their independence from the Company
and its Executive Board during the 2022 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
Garrett, Stefan Doboczky, Jean-Baptiste Renard, Karl
Rose, Elisabeth Stadler, Christoph Swarovski, Cathrine
Trattner, and Gertrude Tumpel-Gugerell have made
declarations to the effect that they were not sharehold-
ers with a stake of more than 10% or represented such
shareholders’ interests during the 2022 financial year
and up to the time of making such declarations. Fur-
thermore, the above-mentioned members of the Super-
visory Board were nominated for election as Supervi-
sory Board members by Österreichische Beteiligungs
AG, which must comply with the strict independence
and incompatibility criteria of the Austrian Code of Cor-
porate Governance when nominating or appointing per-
sons as members of the supervisory boards of its affili-
ated companies, and ensure that they exercise their ac-
tivities on the supervisory boards of the affiliated com-
panies independently of their own interests or those of
legal entities closely associated with them.
99
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Positions and committee memberships in 20221
Name
Mark Garrett
Edith Hlawati
Christine Catasta
Saeed Al Mazrouei
Alyazia Ali Al Kuwaiti
Stefan Doboczky
Jean-Baptiste Renard
Karl Rose
Elisabeth Stadler
Robert Stajic
Christoph Swarovski
Cathrine Trattner
Gertrude Tumpel-Gugerell
Alexander Auer
Hubert Bunderla
Mario Mayrwöger
Nicole Schachenhofer
Angela Schorna
Gerhard Singer
Supervisory Board and
committees 20221
Term of office
SB PNC PPC
M2
-
M
DC
M
M4
C
M5
-
DC
-
-
-
M
M
-
M
-
-
C
DC
DC
DC
M
-
-
-
-
-
-
-
-
M7
M
-
M10
-
-
C
DC
DC
DC
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
AC
M
-
M
-
DC
M3
-
-
DC
M
-
M
C
M8
M
-
-
M
M
RC
V3
DC
C
DC
-
-
-
-
M3
-
M
-
M
-
-
-
-
-
-
STC
- September 29, 2020, to 2023 AGM
- June 3, 2022, to 2026 AGM
DC September 10, 2021 to 2022 AGM
- June 2, 2021, to 2024 AGM
M May 22, 2018, to 2024 AGM
C May 14, 2019, to 2025 AGM
DC June 3, 2022, to 2025 AGM
- May 18, 2016, to 2024 AGM
DC6 May 14, 2019, to 2025 AGM
M June 3, 2022, to 2025 AGM
- May 14, 2019, to 2022 AGM
- May 14, 2019, to 2022 AGM
- May 19, 2015, to 2024 AGM
M9 Since September 1, 2021
- Since January 18, 2021
M Since June 7, 2022
M Since January 18, 2021
M8 Since March 23, 2018
- September 26, 2016 to June 7, 2022
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 Until October 27, 2022
3 Since June 3, 2022
4 Since October 27, 2022
5 Chairman until June 3, 2022
6 Member until June 3, 2022
7 Since December 13, 2022
8 Since June 7, 2022
9 Until June 7, 2022
10 Until December 13, 2022
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 2022). In 2022,
8 meetings of the Supervisory Board and 28 committee
meetings were held. In particular, the Executive Board
and the Supervisory Board discussed OMV’s strategy.
Christoph Swarovski attended fewer than half of the
meetings of the Supervisory Board. Saeed Al Mazrouei
attended fewer than half of the meetings of the commit-
tees he has been elected to.
100
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
Attendance of Supervisory Board and committee meet-
ings in 2022 was as follows:
Attendance of Supervisory Board and
committee meetings in 20221
Audit Committee
This committee performs the duties established by sec-
tion 92 (4a) of the Austrian Stock Corporation Act. The
committee held seven meetings during the year. It pre-
dominantly dealt with preparations for the audit of the
annual financial statements, a review of the auditors’
activities, internal audit, the internal control and risk
management systems, the presentation of the annual
financial statements as well as the procedure for the
selection of the statutory auditor (Group auditor). Ger-
trude Tumpel-Gugerell is the financial expert on the Au-
dit Committee within the meaning of section 92 (4a) (1)
of the Austrian Stock Corporation Act.
PNC
5/5
3/3
2/2
2/5
5/5
RC
7/7
3/3
4/4
1/7
PPC
AC
4/46 7/7
3/3
7/7
2/2
1/5
5/5
1/17 3/42
3/3
5/5
STC
1/2
4/4
4/4
1/2
5/7
4/4
2/32 2/4
2/2
3/3
0/4
3/3
6/7
7/7
3/44
7/7
7/7
3/33
2/25
2/2
4/4
2/24
5/5
5/5
5/5
5/5
5/5
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 2022, the auditors Ernst & Young
Wirtschaftsprüfungsgesellschaft m.b.H. (including their
network within the meaning of section 271b of the Aus-
trian Commercial Code) received EUR 3.47 mn for the
annual audit, EUR 0.60 mn for other assurance ser-
vices, EUR 0.19 mn for tax advisory services, and EUR
0.40 mn for other engagements.
SB
Name
8/8
Mark Garrett
Edith Hlawati2
3/3
Christine Catasta3
5/5
6/8
Saeed Al Mazrouei
8/8
Alyazia Ali Al Kuwaiti
7/8
Stefan Doboczky
Jean-Baptiste Renard2 3/3
8/8
Karl Rose
8/8
Elisabeth Stadler
Robert Stajic2
3/3
Christoph Swarovski3
2/5
Cathrine Trattner3
5/5
Gertrude Tumpel-
Gugerell
6/8
8/8
Alexander Auer
8/8
Hubert Bunderla
Mario Mayrwöger4
3/3
Nicole Schachenhofer 8/8
8/8
Angela Schorna
Gerhard Singer5
5/5
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
2 Since June 3, 2022
3 Until June 3, 2022
4 Since June 7, 2022
5 Until June 7, 2022
6 Until October 27, 2022
7 Since October 27, 2022
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-
ing practices (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 for appointments to the
Supervisory Board. There were five meetings of the
Presidential and Nomination Committee in 2022, in
which discussions focused on Executive and Supervi-
sory Board matters.
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 2022, five
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, as well as ESG-related standards, perfor-
mance, and processes. It also focuses on performance
specifically in terms of HSSE (Health, Safety, Security,
and Environment) and in particular regarding climate
change. Furthermore, the committee serves to support
and oversee the transformation process toward a more
sustainable business model, including the cultural inte-
gration of strategically significant acquisitions. The
committee held four meetings during the year.
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
is empowered to conclude, amend, and terminate Ex-
ecutive Board members’ employment contracts and to
101
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
make decisions on the awarding of bonuses (variable
remuneration components) and other such benefits to
them. The Remuneration Committee met seven times
during 2022. Executive Board members were invited to
attend parts of some of the meetings of the Remunera-
tion Committee.
The hkp/// group was hired by the Remuneration Com-
mittee to provide remuneration advice to the committee
on the appropriate structure and level of Executive
Board compensation in line with regulatory require-
ments and market practice.
Based on the results of a benchmarking study carried
out by the hkp/// group, the remuneration of OMV’s Su-
pervisory Board was adjusted in 2022.
The hkp/// group also provided advice on the creation
of OMV’s Remuneration Report. The consulting com-
pany did not advise the OMV Executive Board on mat-
ters relating to Executive Board remuneration, ensuring
independence with respect to the Austrian Code of Cor-
porate 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) of the Austrian Stock
Corporation Act. Attention is drawn to the fact that the
Supervisory Board members Mark Garrett and Elisa-
beth Stadler are, or were in the reporting year, chair-
persons 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, the
appropriate Supervisory Board approvals have been
obtained. The Internal Rules of the Supervisory Board
contain detailed procedures for handling conflicts of in-
terest on the part of Supervisory Board members.
Employee participation
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 Annual General Meeting). Therefore, out
of the 15 Supervisory Board members, 5 members are
employee 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.
Diversity, Equity, and Inclusion 2022
Diversity is an enormous strength that OMV actively
leverages to create business value. OMV strongly
believes that culturally diverse teams are more
creative, resourceful, and knowledgeable, and that they
generate broader perspectives, ideas, and options.
Diversity, Equity, and Inclusion (DEI), therefore, have a
strong impact on people and teams, improving
engagement and job satisfaction, and directly
contributing to the Group’s profitability and
sustainability.
The OMV Group is therefore expanding its DEI focus to
include a broader range of diversity aspects, such as
age, nationality, and special needs. Ultimately, the goal
of OMV is to encourage and support all forms of
diversity in the workforce and create an environment of
respect where all employees are valued. This means
having an inclusive culture in which the same
opportunities and level of psychological safety are in
place for all people to feel supported and be
102
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
successful, regardless of their nationality, gender, age,
or social and health background.
As a company active in an industry with a strong
technical focus, it is particularly challenging for OMV to
achieve a satisfactory gender balance in all fields of
business activity. OMV is committed to supporting
women’s advancement to managerial positions. The
aim is to increase the proportion of women in
management roles from 21.6%1 currently to 25% by
2025, and to 30% by 2030, through a number of
initiatives such as mentoring, succession planning,
specific training, and those that promote a healthy
work-life balance.
OMV further strengthened its training programs, such
as SHEnergy, a blended learning program for women at
OMV, to promote women’s leadership skills. This pro-
gram focuses on active inclusion skills and also empha-
sizes the power of mentoring and networking in devel-
oping female leaders.
The New Parent Program started in Austria, focusing
on equipping future parents with information on paren-
tal leave and part-time models, associated long-term fi-
nancial aspects, and things to consider when returning
to work. The program’s target group includes both male
and female employees to encourage more equal distri-
bution of childcare responsibilities.
The proportion of women in the Group as a whole is
27% (2021: 27%). A total of 21.6%1 (2021: 20.9%) of
employees in management and executive positions are
female. In OMV’s leadership development programs,
the proportion of women was 49% in 2022 (2021:
49%). In OMV’s Upstream integrated graduate devel-
opment program for technical skill pools, the proportion
of women was 21% in 2022 (2021: 31%). Diversity has
been incorporated into all leadership development pro-
grams and embedded into the OMV People & Culture
Strategy.
In 2022, a DEI Governance team was formed with rep-
resentatives from OMV, OMV Petrom, and Borealis,
and the new Group-wide Diversity, Equity, and Inclu-
sion Strategy 2030 was launched. Group-wide work
streams have been set up to give the actions of OMV in
the areas of gender, generations, people with special
needs, caregivers, and LGBTQI+ more momentum and
visibility.
OMV has also developed a Group-wide People & Cul-
ture Ethics Guideline, which gives more details on our
clear position regarding non-discrimination in the work-
place. In accordance with this guideline, OMV aims to
put in place Group-wide complaints procedures and in-
vestigation principles for any misconduct in this regard.
Throughout 2022, several events were organized to in-
crease awareness of and ambition to focus on our DEI
goals. In March, OMV hosted an International Women’s
Day and in October, the DEI Awareness Month fea-
tured several panel discussions and keynote speeches
from the Executive Board and external experts.
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.
OMV’s headquarters in Vienna has two company kin-
dergartens attended by children of OMV employees.
The Executive Board and Supervisory Board consider
the described measures and programs for fostering the
diversity of the workforce as a key factor in strengthen-
ing 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 the
balance of gender, age, and international experience,
in addition to professional skills.
Until the resignation of Elena Skvortsova on October
31, 2022, there was one woman on the Executive
Board of OMV.2 At this point in time, the Executive
Board members of OMV Aktiengesellschaft were be-
tween 52 and 60 years old, came from three different
countries, and had acquired extensive international
management experience.
With regard to the election of Supervisory Board mem-
bers, the selection of potential candidates is based on
various criteria, particularly the candidates’ professional
skills, personal integrity, independence, and impartial-
1 Advanced & Executive Level
2 Following the resignation of Elena Skvortsova, the OMV Executive Board has once again included a woman, Daniela Vlad, since February 1, 2023. Currently,
the Executive Board members of OMV Aktiengesellschaft are between 48 and 58 years old and are from four different nationalities (see also "Events after the
balance sheet date").
103
OMV ANNUAL REPORT 2022 / CONSOLIDATED CORPORATE GOVERNANCE REPORT
ity. In addition, diversity aspects such as the represen-
tation of both genders, a balanced age distribution, in-
dustry and technical expertise, and internationality of
members is taken into consideration.
On December 31, 2022, the Supervisory Board of OMV
included six women, corresponding to a share of 40%.
In line with the strategic orientation of the Company,
particular focus will be given to further strengthening in-
dustry-specific expertise and the internationality of the
Supervisory Board. With members aged between 42
and 70, the Supervisory Board’s age structure is bal-
anced.
External evaluation of Corporate Govern-
ance
An external evaluation of OMV’s compliance with the
provisions of the ACCG is performed biennially. For the
2022 financial year, OMV engaged Deloitte Legal (Jank
Weiler Operenyi Rechtsanwälte GmbH, attorney Jo-
hannes Lutterotti). The official questionnaire of the Aus-
trian 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, 2023
The Executive Board
Alfred Stern m.p.
Reinhard Florey m.p.
Martijn van Koten m.p.
Daniela Vlad m.p.
Berislav Gaso m.p.
104
CONSOLIDATED FINANCIAL
STATEMENTS AND NOTES
105 — 238
106 — Auditor’s Report
116 — Consolidated Income Statement for 2022
117 — Consolidated Statement of Comprehensive Income for 2022
118 — Consolidated Statement of Financial Position as of December 31, 2022
120 — Consolidated Statement of Changes in Equity for 2022
122 — Consolidated Statement of Cash Flows for 2022
Notes to the Consolidated Financial Statements
123 — Basis of Preparation and Accounting Policies
141 — Segment Reporting
146 — Notes to the Income Statement
156 — Notes to the Statement of Financial Position
193 — Supplementary Information on the Financial Position
212 — Other Information
229 — Oil and Gas Reserve Estimation and Disclosures (unaudited)
238 — 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. Deconsolidation and valuation of investments in
2.
Russia
The impact of climate change and the energy
transition on the financial statements
3. Recoverability of equity-accounted investments
4. Recoverability of intangible exploration and evalu-
5.
6.
ation (E&E) assets
Estimation of oil and gas reserves
Valuation of provision for decommissioning and
restoration obligations
OMV ANNUAL REPORT 2022 / 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, 2022, 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, 2022 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.
106
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
Deconsolidation and valuation investments in
Russia
We assessed management’s assumptions and esti-
mates.
The attack of Russia on Ukraine and countersanctions
announced by Russia have significant impact on assets
related to OMV’s prior core region Russia.
OMV is represented in Russia by an interest in the Yu-
zhno-Russkoye gas field. The gas is produced by the
operator and the license holder, OJSC Severneftegaz-
prom (SNGP), in which OMV holds 24.99% interest.
The interest in SNGP was accounted for at equity until
February 28, 2022. The gas is sold through the trading
company JSC GAZPROM YRGM Development
(YRGM), in which OMV holds one preferred share enti-
tling OMV to a dividend of 99.99% of the total net profit.
Up to February 28, 2022, YRGM was fully consolidated
because all its activities were predetermined and OMV
was fully exposed to the variability of returns. Due to
the Russian countersanctions, which have an impact
on the operation of foreign companies in Russia, OMV
lost power to receive dividends from YRGM which led
to the loss of control over YRGM and the loss of signifi-
cant influence over SNGP.
OMV has ceased to fully consolidate YRGM and to eq-
uity account for SNGP in the consolidated financial
statements. Starting March 1, 2022, the investments in
SNGP and YRGM are accounted for at fair value
through profit or loss according to IFRS 9. This change
led to a loss of EUR 658 mn.
As of December 31, 2022, the fair value of the invest-
ments in YRGM and SNGP was further decreased to a
book value of EUR 23 mn, leading to an additional loss
of EUR 370 mn.
The remaining fair value of both investments has been
estimated using a DCF model considering the produc-
tion profile, expected gas prices and production costs,
as well as an illiquidity discount.
The financial asset which is related to the reserves re-
determination right out of the acquisition of the interest
in the Yuzhno-Russkoye field in 2017 was fully written
off with a fair value loss of EUR 432 mn.
The principal risk relates to management’s assumption
of losing control over YRGM and significant influence
over SNGP, the recoverability of the remaining fair
value of these two financial instruments as well as the
valuation of the reserves redetermination right.
OMV Group’s disclosures about the impact of Russia’s
invasion of Ukraine and the related significant assump-
tions and estimates are included in Note 2 (Accounting
policies, judgements and estimates).
Specifically, our work included, but was not limited to,
the following procedures:
▸ Assess the criteria applied by OMV in determining
the loss of control resp. significant influence over
YRGM and SNGP;
▸ Inquire OMV’s executive board, legal department
▸ Assess the design and implementation of controls
and gas trading management;
related to estimating the key assumptions used in
the calculation of the fair value of the investments
and financial asset, such as estimated reserves and
production profile, future gas prices and production
costs;
▸ Evaluate OMV’s assessment of production profile,
future gas prices and production costs, as well as
the illiquidity discount used for the fair value calcu-
lation with external data where available;
▸ Assess OMV’s gas reserves assumptions which led
to a financial asset related to the reserves redeter-
mination right and assess the subsequent write off;
analysis of discount rates and inflation rates;
▸ Involve our valuation specialists to assist us in the
▸ Test the mathematical accuracy of fair value calcu-
▸ Reading of information in the director’s report (strat-
lation;
egy and OMV Group Business Year) and consider
its consistency with the assumptions used by man-
agement; and
▸ Assess the adequacy of the disclosures in the fi-
nancial statements.
107
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
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.
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 development) 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 and net
zero emissions scenario analysis in Note 2 (Ac-
counting policies, judgements and estimates).
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 mid-term
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 considers that OECD countries will
achieve the net zero emissions goal between 2050 and
2070 (equivalent to a path between the International
Energy Agency (IEA) “net zero emissions” (NZE) and
“sustainable development” (SDS) scenarios) and non-
OECD countries will implement all announced decar-
bonization pledges in full and on time (equivalent to the
IEA “announced pledges scenario” (APS)).
As part of the sensitivity analysis over the recoverability
of assets and valuation of decommissioning provisions,
OMV performed a stress test analysis, using a decar-
bonization scenario which is built on a path between
the IEA SDS and IEA NZE scenarios.
An additional sensitivity has been performed for as-
sessing the recoverability of the oil and gas assets in
the E&P segment using the Net Zero Emissions by
2050 scenario which was modeled by the IEA and
shows a pathway for the global energy sector to
achieve net zero CO2 emissions by 2050.
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).
108
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
Recoverability of equity-accounted investments
As of December 31, 2022, the carrying value of equity-
accounted investments amounted to EUR 7,294 mn
(after a write-up of EUR 67 mn for Abu Dhabi Oil Refin-
ing Company).
We assessed management’s assessment of the recov-
erability of the carrying value of equity-accounted in-
vestments by evaluating if and how management deter-
mines a need of impairment or reversing a previous im-
pairment. Where testing the recoverable amount was
required, we evaluated management’s assumptions.
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 or there is an
indication that an impairment loss recognised in prior
periods may no longer exist or may have decreased
and in measuring any such impairment or reversal.
For the equity-accounted investment Abu Dhabi Oil Re-
fining Company, registered in Abu Dhabi, indicators
were identified that the impairment of EUR 669 mn rec-
ognized in the previous year decreased. The test of the
recoverable amount performed by the management led
to a reversal of previous impairment at the amount of
EUR 67 mn.
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).
Specifically, our work included, but was not limited to,
the following procedures:
▸ Assess the design and implementation of the con-
▸ Review and evaluation of management’s assess-
trols in the valuation process;
ment of the existence of impairment indicators or in-
dicators that impairments recognized in prior peri-
ods may have decreased;
▸ Assess the determination of cash generating units;
▸ Reconcile the assumptions used within the future
cash flow models to approved budgets and busi-
ness plans;
▸ 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 actual
performance and to prior year;
▸ Review of management’s sensitivity analysis over
key assumptions and perform additional own sensi-
tivity analysis in order to assess the impact of pos-
sible changes of assumptions on the recoverability;
and
▸ Assess the adequacy of the disclosures in the fi-
nancial statements.
109
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
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 oil and gas 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.
Recoverability of intangible exploration and evalua-
tion (E&E) assets
The carrying value of intangible E&E assets amounted
to EUR 878 mn at December 31, 2022, after an impair-
ment loss of EUR 183 mn in 2022.
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), Note 8 (Exploration expenses) and Note 14
(Intangible assets).
110
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Key Audit Matter
How our audit addressed the key audit matter
Estimation of oil and gas reserves
Oil and gas reserves are an indicator of the future po-
tential of the group’s performance. They have an im-
pact on the financial statements as they are the basis
for production profiles in future cash flow estimates, de-
preciation, amortization and impairment charges.
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 and de-
commissioning provision estimate.
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) and
Note 23 (Provisions).
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 pro-
▸ Analysis of the internal certification process for
cess;
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;
▸ Analyse the latest reports of DeGolyer and Mac-
Naughton (D&M) on their reviews performed in
2022 of the group’s estimated oil and gas reserves
in Tunisia, Malaysia and the Kurdistan Region of
Iraq;
▸ 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 and in accounting for depreci-
ation & amortization; and
▸ Assess the adequacy of the disclosures in the fi-
nancial statements.
111
OMV ANNUAL REPORT 2022 / 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.
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.
The total provision for decommissioning and restoration
obligations amounted to EUR 3,796 mn at December
31, 2022.
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).
112
OMV ANNUAL REPORT 2022 / 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.
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.
113
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Auditor’s Responsibilities for the Audit of
the Consolidated Financial Statements
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.
114
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Report on Other Legal and Regulatory
Requirements
Comments on the Directors’ 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 3, 2022. We were appointed by the
Supervisory Board on July 14, 2022. 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. Alexander Wlasto, Cer-
tified Public Accountant.
Vienna, March 9, 2023
Ernst & Young
Wirtschaftsprüfungsgesellschaft m.b. H.
Mag. Alexander Wlasto m.p.
Wirtschaftsprüfer/Certified Public Accountant
Mag. Katharina Schrenk m.p.
Wirtschaftsprüfer/Certified Public Accountant
115
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Consolidated Income Statement for 2022
Note
4, 5
6
6, 16
17
7
7, 8
9
31
11, 31
11, 31
11, 31
2022
2021
62,298
1,644
869
64,811
35,555
933
600
37,087
(39,298)
(4,542)
(1,663)
(2,484)
(2,689)
(250)
(1,639)
12,246
11
269
(417)
(1,345)
(1,481)
10,765
12
(5,590)
5,175
3,634
71
1,470
11.12
11.11
13
13
(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
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
116
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
for 2022
Consolidated Statement of Comprehensive Income
In EUR mn
Net income for the year
Currency translation differences
Gains/(losses) arising during the year
Reclassification of (gains)/losses to the income statement
Gains/(losses) on hedges
Gains/(losses) arising during the year
Reclassification of (gains)/losses to the income statement
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
2022
5,175
2021
2,804
21
3, 6, 9
28
16
23
18
28
16
603
250
354
40
377
(338)
0
946
883
63
210
386
(176)
0
643
1,156
263
2
(67)
6
53
(1)
17
(0)
204
69
(5)
(41)
21
(26)
(30)
8
(33)
21
817
5,992
4,381
71
1,540
1,192
3,996
3,164
94
739
117
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Consolidated Statement of Financial Position
as of December 31, 2022
Note
2022
2021
14
15
16
18
19
25
17
18
18
19
26
20
2,510
19,317
7,294
1,999
115
1,150
32,384
4,834
4,222
3,929
97
1,198
8,090
22,369
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
1,676
56,429
1,479
53,798
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
118
OMV ANNUAL REPORT 2022 / 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
2022
2021
327
2,483
16,339
19,149
327
2,483
12,695
15,505
7,478
26,628
6,491
21,996
997
6,030
1,322
1,359
3,714
377
489
124
1,194
15,607
5,259
1,290
155
128
2,449
82
505
2,172
1,527
13,567
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
626
56,429
909
53,798
22
21
23
24
24
24
23
23
24
24
25
24
24
24
24
23
23
24
24
20
119
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Consolidated Statement of Changes in Equity for 2022
Consolidated Statement of Changes in Equity in 2022¹
In EUR mn
Share
capital
Capital
reserves
Hybrid
capital
Revenue
reserves
Currency
translation
differences
January 1, 2022
Net income for the year
Other comprehensive income for the year
Total comprehensive income for the year
Dividend distribution and hybrid coupon
Share-based payments
Increase/(decrease) in non-controlling interests
Reclassification of cash flow hedges to balance sheet
December 31, 2022
327
—
—
—
—
—
—
—
327
1,514
—
—
—
—
4
—
—
1,517
2,483
—
—
—
—
—
—
—
2,483
12,008
3,705
206
3,911
(847)
—
5
—
15,076
(910)
—
543
543
—
—
(2)
—
(370)
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
Share-based payments
Increase/(decrease) in non-controlling interests
Reclassification of cash flow hedges to balance sheet
December 31, 2021
327
—
—
—
—
—
—
—
—
327
1,506
—
—
—
—
—
8
—
—
1,514
3,228
—
—
—
—
(745)
—
—
—
2,483
10,502
2,187
61
2,248
(699)
(43)
—
—
—
12,008
(1,785)
—
875
875
—
—
—
—
—
(910)
1 See Note 21 – Equity of stockholders of the parent and Note 22 – Non-controlling interests
120
OMV ANNUAL REPORT 2022 / 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
173
—
(6)
(6)
—
—
—
33
200
(86)
—
4
4
—
—
—
—
(82)
(3)
—
—
—
—
1
—
—
(2)
15,505
3,705
746
4,451
(847)
4
3
33
19,149
6,491
1,470
71
1,540
(621)
—
45
23
7,478
21,996
5,175
817
5,992
(1,467)
4
48
56
26,628
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)
8
—
(13)
15,505
6,159
617
121
739
(268)
—
—
(147)
8
6,491
19,899
2,804
1,192
3,996
(967)
(789)
8
(147)
(5)
21,996
121
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Consolidated Statement of Cash Flows for 2022
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
Disposals
Proceeds in relation to non-current assets and financial assets
Proceeds from the sale of subsidiaries and businesses, net of cash disposed
Cash disposed due to the loss of control
Cash flow from investing activities
Increase in long-term borrowings
Repayments of long-term borrowings
Increase/(decrease) in short-term borrowings
Increase in non-controlling interest
Decrease in non-controlling interest
Dividends paid to stockholders of the parent (incl. hybrid coupons)
Dividends paid to non-controlling interests
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
2022
5,175
2,667
85
5,505
(4,266)
68
(344)
(879)
812
154
(182)
(264)
247
(13)
(195)
1,274
9,843
(2,188)
(397)
501
(2,084)
7,758
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
14, 15
18
(2,943)
(736)
(2,497)
(382)
1,487
440
(214)
(1,966)
0
(1,047)
(184)
30
(1)
(847)
(612)
(2,660)
(72)
3,060
5,064
8,124
35
397
661
—
(1,820)
250
(2,287)
61
—
(4)
(733)
(265)
(2,977)
(25)
2,195
2,869
5,064
14
26
26
26
22
21
22
26
26
26
8,090
5,050
122
OMV ANNUAL REPORT 2022 / 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 chemicals company
with activities in the divisions Chemicals & Materials,
Refining & Marketing, and Exploration & Production.
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 accounting policies adopted are
consistent with those of the previous financial year, ex-
cept where otherwise indicated.
The consolidated financial statements for 2022 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,
2022. 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 2022 were
approved and released for publication by the Supervi-
sory Board on March 9, 2023.
2 Accounting policies, judgements and estimates
1) Significant judgements and estimates
Preparation of the consolidated financial statements re-
quires management to make estimates and judge-
ments that affect the amounts reported for assets, lia-
bilities, income and expenses, as well as the amounts
disclosed in the notes. These estimates and assump-
tions are based on historical experience and other fac-
tors that are deemed reasonable at the date of prepara-
tion of these financial statements. Actual outcomes
could differ from these estimates.
Significant estimates and assumptions were required in
particular with regards to the effects from the climate
crisis and energy transition as well as the Ukraine-Rus-
sia-crisis. These estimates and assumptions are de-
scribed below in section a) and b).
In addition, estimates and assumptions with significant
impact on OMV Group result were made with respect to
oil and gas reserves, the recoverability of assets,
provisions, lease contracts, and taxes on income.
These are described together with the relevant ac-
counting policies in section 2 of this note and high-
lighted in grey.
a) Significant estimates and assumptions in as-
sessing climate-related risks
OMV has considered the short- and long-term effects of
climate change and energy transition in preparing the
consolidated financial statements. They are subject to
uncertainty and they may have significant impacts on
the assets and liabilities currently reported by the
Group.
In 2022, OMV defined the first time concrete short-,
medium-, and long-term targets for its emissions reduc-
tions and committed to becoming a net-zero emissions
company by 2050 (Scopes 1, 2, and 3). For Scopes 1
and 2 emissions, OMV is aiming for an absolute reduc-
tion of at least 30% by 2030 and of at least 60% by
123
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
2040. For Scope 3 emissions, OMV is striving for a re-
duction of at least 20% by 2030 and of 50% by 2040.1
The significant accounting estimates performed by
management 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 risks and energy tran-
sition to lower carbon energy sources together with
management’s best estimate on global supply and de-
mand, including forecasted commodities prices.
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, financial reporting under
IFRS requires the use of assumptions that represent
management’s current best estimate of the range of ex-
pected future economic conditions, which may differ
from such targets. These assumptions include expecta-
tions about future worldwide decarbonization efforts
and the transition of economies to net zero emissions.
OMV uses two different scenarios which were devel-
oped by the internal Market Intelligence department:
the base case and the stress case. The scenarios differ
in the underlying expectations about the pace of the fu-
ture worldwide decarbonization and lead to different as-
sumptions for demand, prices and margins of fossil
commodities. The base case is used for the mid-term
planning as well as for estimates going into the meas-
urement of various items in the group financial state-
ments, including impairment testing of non-financial as-
sets and the measurement of provisions. The stress
case which is based on a faster decarbonization path
than the base case is used for calculating sensitivities
in order to recognize the uncertainty in the pace of the
energy transition and to better understand the financial
risk from energy transition on the existing assets of
OMV. Both scenarios, the base and stress case, reflect
more climate change mitigation efforts and a faster de-
carbonization path than the scenarios used in the prior
year. But OMV still expects to see energy transition at
different paces in different parts of the world.
The base case is built on a scenario in which OECD
countries will achieve the net zero emissions goal be-
tween 2050 and 2070 (equivalent to a path between
the IEA “net zero emissions” (NZE) and “sustainable
development” (SDS) scenarios) and non-OECD coun-
tries will implement all announced decarbonization
pledges in full and on time (equivalent to the IEA “an-
nounced pledges scenario” (APS)).2
For the stress test analysis, a decarbonization scenario
is used which is a potential trajectory to reaching the
climate goals according to the Paris Agreement. In this
scenario, it is assumed that advanced economies will
reach the net zero emissions goal by 2050, while mid-
dle-income and developing economies will only follow
at a later point but not later than 2070. This scenario is
built on a path between the IEA SDS and IEA NZE sce-
narios. The entire world following the commitments of
the Paris Agreement leads to lower global demand for
oil and gas and consequently to lower oil and gas
prices than in the base case. In addition, this scenario
incorporates other possible effects such as slower eco-
nomic growth in the short term.
In an additional sensitivity analysis for assessing the re-
coverability of the oil and gas assets in the E&P seg-
ment, OMV used the Net Zero Emissions by 2050 sce-
nario which was modeled by the IEA.3 It shows a path-
way for the global energy sector to achieve net zero
CO2 emissions by 2050.
For investment decisions, business cases are calcu-
lated based on the same price and demand assump-
tions as are used for the mid-term planning and impair-
ment tests. In addition, a business case calculation
based on the stress case assumptions is mandatory for
all investment decisions in order to assess the eco-
nomic viability under a “Paris aligned” scenario. The
IEA NZE scenario is not used for investment decisions.
Costs for CO2 emissions are taken into account in busi-
ness case calculations, impairment tests as well as the
stress case scenario calculations to the extent carbon
pricing schemes are in place in the respective coun-
tries. Estimates for the CO2 prices in the European Un-
ion are disclosed in Note 2.2j.
1 The base for the emission reduction targets are the Group’s emissions in 2019 adjusted for the emissions of Borealis in which OMV acquired a majority stake in
2020. In addition to the emission reduction targets based on absolute reductions, the Group defined also targets based on carbon intensities.
2 Based on World Energy Outlook 2021 report published by International Energy Agency (IEA). The sustainable development scenario (SDS) which was not in-
cluded in the IEA World Energy Outlook 2022 report is a normative scenario used to model a “well below 2°C” pathway as well as the achievement of other
sustainable development goals and its outcomes are close to the “announced pledges scenario” (APS).
3 Based on the World Energy Outlook 2022 report published by International Energy Agency (IEA)
124
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Recoverability of assets
Commodity price assumptions have a significant impact
on the recoverable amounts of E&A assets, PPE and
goodwill. For the impairment tests, the price set as de-
fined for the mid-term planning and incorporating the
energy transition scenario as described above was
used. Disclosures on the impairment tests – including
the detailed price set – are included in Note 2.2j as well
as Note 7 – Depreciation, amortization, impairments
and write-ups. The outcome of the impairment tests is
not in line with the goals of the Paris Agreement.
segment. In order to further assess the risk from differ-
ent decarbonization scenarios and its impact on OMV’s
oil and gas assets, an additional calculation of a possi-
ble effect of using the oil and gas prices in a 1.5°C
compatible Net Zero Emission by 2050 (NZE) scenario
by the International Energy Agency (IEA) has been per-
formed. CO2 price assumptions were the same as in
the stress case calculation. They are in line with the
IEA NZE scenario for the European Union. But no CO2
prices were taken into account in countries without CO2
pricing systems in place.
The sensitivities calculated based on the stress case
indicate that there is mainly a risk for impairments in a
Paris-aligned scenario for oil and gas assets in the E&P
The impact of the OMV stress case and the “NZE by
2050” calculation on the carrying amounts of oil and
gas assets are summarized in the table below.
Sensitivities on oil and gas assets1
OMV stress case scenario
IEA NZE scenario
Decrease of car-
rying amounts of
oil and gas assets
Remaining carry-
ing amounts of oil
and gas assets
Brent oil price in
real terms
2030/2040/20502
Gas price THE in
real terms
2030/2040/20502
in EUR bn
in EUR bn
(5.3)
(6.1)
6.9
6.0
USD/bbl
47/27/20
36/30/25
EUR/MWh
18/18/18
15/13/12
1 Including oil and gas assets with unproved and proved reserves, E&P at-equity investments and E&P related goodwill
2 In 2027 real terms
Whereas the recoverability of the refineries in the R&M
segment would also be impacted through globally de-
clining demand for almost all products, resulting in
lower margins and cracks in a scenario assuming a
quicker decarbonization path, the carrying amounts of
assets in the C&M segment are not expected to be at
risk.
in Note 2.2h which is based on proved reserves. Ac-
cording to the current production plans, 31% of proved
reserves as at December 31, 2022, will be left by 2030,
5% by 2040, and less than 1% by 2050. The existing oil
and gas assets with proved reserves will therefore be
significantly depreciated until 2030 and, with the excep-
tion of one field, fully depreciated until 2050.
More details on the stress tests including a description
of the assumptions applied are included in Note 2.2j.
As OMV doesn’t see the C&M segment materially im-
pacted by the energy transition, there is also no mate-
rial impact on useful lives in this segment expected.
Useful lives
The pace of energy transition may have an impact on
the remaining useful lives of assets.The depreciable
fixed assets in the refineries will in average be fully de-
preciated over the next 9 years and in retail over the
next 5 to 10 years. Demand for petroleum products is
expected to stay robust over this period of time. It is
therefore not expected that energy transition has a ma-
terial impact on the expected useful lives of prop-
erty, plant, and equipment in the R&M segment.
In the E&P segment, oil and gas assets are depreci-
ated using the unit-of-production method as described
Decommissioning provisions
The maturity profile of decommissioning provisions is
included in Note 23 - Provisions. The economic cut-off
date of oil and gas assets does not shift significantly
under the stress case scenario. The impact on the car-
rying amount of the decommissioning provisions is
therefore expected to be immaterial.
For refineries, no decommissioning provisions are rec-
ognized. OMV’s refinery sites are expected to continue
to be used for production under a Paris-aligned energy
transition scenario. There are significant investments
planned in the next years with the goal to adapt OMV’s
125
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
refinery sites in Europe in the direction of renewable
fuels and chemical feedstock production with deeper
chemicals integration. Furthermore, ADNOC Refining is
expected to continue to operate under such a scenario
because of its favourable positioning in the market.
b) Impact of Russia’s invasion of Ukraine and re-
lated significant estimates and assumptions
The attack of Russia on Ukraine on February 24, 2022,
led to developments that had a significant impact on
the consolidated financial statements.
OMV is represented in Russia by an interest in the Yu-
zhno-Russkoye gas field. The gas is produced by the
operator and the license holder, OJSC Severneftegaz-
prom (SNGP), in which OMV holds a 24.99% interest.
The interest in SNGP was until February 28, 2022, ac-
counted for at equity. The gas is sold through the trad-
ing company JSC GAZPROM YRGM Development
(YRGM), in which OMV holds one preferred share enti-
tling OMV to a dividend of 99.99% of the total net profit.
Until February 2022, YRGM was fully consolidated be-
cause all its activities are predetermined and OMV was
fully exposed to the variability of returns. In response to
the sanctions of the Western countries, Russia passed
several countersanctions, which have an impact on the
operation of foreign companies in Russia. According to
these countersanctions, among others, OMV lost power
to receive dividends from YRGM, which led to the loss
of control over YRGM and the loss of significant influ-
ence over SNGP. For this reason, OMV ceased to fully
consolidate YRGM and to equity account for SNGP in
the consolidated financial statements.
Starting March 1, 2022, the investments in SNGP and
YRGM are accounted for at fair value through profit or
loss according to IFRS 9. The deconsolidation led to a
loss of EUR 658 mn; of that amount, EUR 399 mn was
related to the recycling of the cumulative currency dif-
ferences originally recognized in other comprehensive
income. The total amount was included in other operat-
ing expenses. In addition, the deconsolidation had a
negative impact on the cash flow from investing activi-
ties in the amount of EUR 208 mn due to the derecog-
nized cash balance of YRGM, shown in the line “Cash
disposed due to the loss of control.” As of Decem-
ber 31, 2022, the fair value of the investments in YRGM
and SNGP was further decreased to a book value of
EUR 23 mn, leading to an additional loss of EUR 370
mn in the financial result. The fair value measurement
takes into account the further deterioration of the politi-
cal and legal environment in Russia and is based on a
DCF model considering the production profile, ex-
pected gas prices, and production costs, as well as an
illiquidity discount of 90% on the remaining net present
value of the cash flows and the cash balance.
OMV has a contractual position toward Gazprom from
the redetermination of the reserves of the Yuzhno
Russkoye gas field, which was taken over as part of the
acquisition of the participation in this field in 2017. Ac-
cording to this agreement, the volume of gas reserves
in the Yuzhno Russkoye field is contractually defined
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 have
profited in the future from higher sales volumes) or
Gazprom could be obligated to compensate OMV. The
payment for the reserve redetermination is linked to the
actual amount of the gas reserves.
A fair value calculation which was based on three dif-
ferent scenarios, one of them based on an internal esti-
mate by OMV, led to a positive value. In the current dif-
ficult political and legal environment in Russia, OMV,
however, no longer expects this contractual position to
be recoverable. As a consequence, a fair value loss of
EUR 432 mn was recognized in other operating ex-
penses, which reduced the fair value of this position to
zero.
In 2021, the fair value measurement was based on
OMV’s internal reserve estimates and led to an asset
with a value of EUR 432 mn. An external assessment
of the reserves in Yushno Russkoye as of December
31, 2020, showed a signficant deviation from the inter-
nal estimate. In an additional expert-opinion by an inde-
pendent, external expert OMV’s approach for determin-
ing the reserves was, however, deemed appropriate.
An increase of the estimated reserves over the contrac-
tually defined reserves could lead to a financial liability
toward Gazprom.
The total payments made by OMV as financial investor
under the financing agreements for Nord Stream 2
amounted to EUR 729 mn. The total outstanding
amount including accrued interest as of March 5, 2022,
amounted to EUR 1 bn and was fully impaired, nega-
tively impacting the financial result (carrying amount as
of December 31, 2021: EUR 987 mn).
Whereas OMV purchased on average 7.6 TWh per
month of natural gas under long-term supply agree-
ments with Gazprom in Austria and Germany in the first
quarter of 2022, there were curtailments of gas delivery
volumes since mid of June and no deliveries to Ger-
many since end of August 2022. In the second half of
2022, OMV imported on average 2.6 TWh per month of
natural gas based on these contracts. The curtailments
126
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
of gas delivery volumes required adjustments to OMV’s
hedging ratios and replacement purchases on the mar-
ket resulting in a negative financial impact. The uncer-
tainty regarding future curtailments and delivery vol-
umes remains and could result in further substantial
losses in particular, in case actual deliveries materially
deviate from previously hedged volumes leading to par-
tially unmitigated gas price exposure from Gazprom
supply contracts.
No onerous contract provisions have been recognized
for the long-term gas supply contracts with Gazprom.
The pricing of these contracts is based on current hub
prices and it is not possible to estimate any negative
impact from future gas curtailments. The hedges re-
lated to the supply from these contracts are measured
at fair value and not subject to hedge accounting.
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.
OMV took various measures to replace Russian gas
supplies and to ensure that it can meet all of its supply
obligations. This included the establishment of routes
for deliveries from North Western Europe (e.g. Norwe-
gian equity gas and liquified natural gas (LNG) supply
via the Gate terminal) and Italy. In July, OMV managed
to secure 40 TWh of additional transport capacities to
Austria for the current gas year (October 1, 2022 –
September 30, 2023) at the transfer points Oberkappel
(pipeline from Germany) and Arnoldstein (pipeline from
Italy). Furthermore, storages have been filled to maxim-
ize possible withdrawals in case of supply cuts and
OMV has access to liquid gas market hubs in Europe, if
needed.
As a direct consequence of the energy crisis in Europe,
regulatory measures like the EU solidarity contribution
and price caps were implemented in some of the coun-
tries in which OMV is active. The impact from the EU
solidarity contribution on the group financial statements
is disclosed in Note 12 – Taxes on income and profit.
When goods such as crude oil, LNG, oil and chemical
products and similar goods are sold, the delivery of
each quantity unit normally represents a single perfor-
mance obligation. Revenue is recognized when control
of the goods has transferred to the customer, which is
the point in time when legal ownership as well as the
risk of loss has passed to the customer and is deter-
mined on the basis of the Incoterm agreed in the con-
tract with the customer. These sales are done with nor-
mal 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
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.
2) Significant accounting policies
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.
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
127
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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 contracts contain a stand-ready obligation
for providing storage 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 services which have a term of more than
one year. In principle, IFRS 15 requires the disclosure
of the total amount of transaction 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 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 2.2f), 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 the line-
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
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 over-
hauls). 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 decommission-
ing provision is recognized (see 2.2s). Costs for re-
placements of components are capitalized and carrying
values of the replaced parts are derecognized. Costs
128
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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, see 2.2h) 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
Chemical 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, are recognized in the period in which they are
incurred. The costs of wells are capitalized and re-
ported as intangible assets until the existence or ab-
sence of potentially commercially viable oil or gas re-
serves is determined. Wells which are not commercially
viable are expensed. The costs of exploration wells
whose commercial viability has not yet been deter-
mined continue to be capitalized as long as the follow-
ing conditions are fulfilled:
▸ 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
there is no further intention to develop a 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
129
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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
The oil and gas reserves are estimated by the
Group’s petroleum engineers in accordance with in-
dustry standards and reassessed at least once per
year. In addition, external reviews are performed
regularly. In 2022, the reserves of the oil and gas as-
sets (as of December 31, 2021) in Tunisia, KRI and
Malaysia were externally reviewed by DeGolyer and
MacNaughton (D&M). The reserves of the other sig-
nificant oil and gas assets were externally reviewed
the year before.
The results of the external reviews did not show sig-
nificant deviations from the internal estimates, apart
from few exceptional cases. In case of significant
deviations, OMV performs further analysis, involving
additional independent experts, where necessary.
Oil and gas reserve estimates have a significant im-
pact on the assessment of the recoverability of car-
rying amounts of the Group’s oil and gas assets.
Downward revisions of these estimates could lead to
impairment of the asset’s carrying. In addition,
changes to the estimates of oil and gas reserves im-
pact prospectively the amount of amortization and
depreciation.
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 2.2a).
In addition, there are contractual arrangements similar
to joint operations which are not jointly controlled and
therefore do not meet the definition of a joint operation
according to IFRS 11. This is the case when the main
decisions can be taken by more than one combination
of affirmative votes of the involved parties or where one
other party has control. OMV assesses whether such
arrangements are within or out of scope of IFRS 11 on
the basis of the relevant legal arrangements such as
concession, license or joint operating agreements
which define how and by whom the relevant decisions
for these activities are taken. The accounting treatment
for these arrangements is basically the same as for
joint operations. As acquisitions of interests in such ar-
rangements 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) as well as investments in
associated companies and joint ventures are tested for
impairment 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
130
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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 various estimates and assumptions
such as price and margin developments, production
volumes and discount rates.
Changes in the economic situation, expectations
about climate-related risks or other facts and circum-
stances might require a revision of these assump-
tions and could lead to impairments of assets or re-
versals of impairments within the next financial year.
Significant assumptions
The price and margin assumptions used in impair-
ment testing are reviewed annually by management
and approved by the Supervisory Board within the
mid-term planning (MTP). They are based on man-
agement’s best estimate and were consistent with
external sources. Whereas prices in the near term
are anchored in recent forward prices and market
developments, long-term price assumptions are de-
veloped using a variety of long-term forcasts by rep-
utable experts and consultants and consider long-
term views of global supply and demand. OMV’s
long-term assumptions take into consideration the
impacts of the climate change and the energy transi-
tion to lower-carbon energy sources (see section 1
of this note).
During the reporting period, OMV increased its near-
term assumptions for Brent oil taking into account
the tighter post-COVID-19 market. The long-term oil
prices were kept on the same level as in the prior
year. European gas prices were increased signifi-
cantly in the near term after Russia’s invasion of
Ukraine and the sharp decline of Russian gas flows
into the European market. In the long term, Euro-
pean gas prices are assumed to stay slightly above
the assumptions of 2021 also due to lower supply of
Russian gas to Europe and despite a faster decar-
bonization assumed than in 2021.
The price assumptions as well as the EUR-USD ex-
change rates are listed below (in nominal terms in
the first 5 years and afterwards in 2027 real terms in
2022 and 2026 real terms in 2021):
2022 Price assumptions for impairment testing
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Gas price THE (EUR/MWh)
CO2 price EUA (EUR/t)
2023
2024
2025
2026
2027
2030
2040
2050
80
1.10
73
91
85
75
1.10
68
64
92
70
1.10
64
46
100
65
1.10
59
36
107
65
1.10
59
27
114
65
1.10
59
24
129
60
1.10
55
24
142
60
1.10
55
24
118
131
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
2021 Price assumptions for impairment testing
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Gas price THE (EUR/MWh)
CO2 price EUA (EUR/t)
2022
2023
2024
2025
2026
2030
2040
2050
65
1.22
53
25
55
65
1.22
53
22
58
65
1.22
53
22
61
65
1.22
53
22
64
65
1.22
53
22
68
65
1.22
53
22
93
60
1.22
49
22
117
60
1.22
49
22
—
The key valuation assumptions for the recoverable
amounts of E&P assets are prices and margins, pro-
duction volumes, exchange and discount rates. The
production profiles were estimated based on re-
serves estimates (see Note 2.2h) and past experi-
ence and represent management’s best estimate of
future production. The cash flow projections for the
first five years are based on the mid-term plan and
thereafter on a “life of field” planning and therefore
cover the whole life term of the field.
The increase in gas prices was considered as an in-
dication for reversal of impairments of European gas
assets which were recognized in prior years. On the
contrary, the expected production volume of some
oil and gas fields in Romania decreased due to
higher expected natural decline rates and the cost
base increased. The results of the impairment tests
are disclosed in Note 7 – Depreciation, amortization,
impairments and write-ups.
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.
2022 Price assumptions for stress case sensitivities
As far as refining margins in the Middle East are
concerned, they were assumed to increase in the
near term but to stay in the long run on the same
level as in the previous period. The margin improve-
ment in the near term was considered as an indica-
tion for reversal of the impairment recognized on the
ADNOC Refining investment in 2021. The growth
rate included in the terminal value calculation was
assumed as 1%.
Sensitivities based on stress case
Sensitivities based on a stress case scenario have
been calculated to test the resilience of assets
against risks from a slower economic growth and the
Russia-Ukraine crisis in the near term and from cli-
mate-related risks in the longer term. Long-term
price and margin assumptions are based on a Paris-
aligned scenario with a worldwide transition to net
zero emissions between 2050 and 2070 (for more
details see section 1 of this note).
The assumptions used in the sensitivity analysis are
included in the table below (prices in nominal terms
in the first 5 years and afterwards in 2027 real
terms):
Brent oil price (USD/bbl)
EUR-USD exchange rate
Brent oil price (EUR/bbl)
Gas price THE (EUR/MWh)
CO2 price EUA (EUR/t)
2023
2024
2025
2026
2027
2030
2040
2050
65
1.20
54
69
100
60
1.20
50
48
107
55
1.20
46
35
114
50
1.20
42
27
121
50
1.20
42
20
129
47
1.20
39
18
142
27
1.20
23
18
194
20
1.20
17
18
232
The stress case sensitivities were calculated using a
simplified method. The calculation was based on a
DCF model similar to a value in use calculation where
no future investments for enhancements and improve-
ments were considered. The calculations do not con-
sider consequential measures that manage-
ment could implement such as divestments and
changes in business plans. The amounts presented
should therefore not be seen as a best estimate of an
expected impairment impact following such a sce-
nario.
In the E&P segment, the cash flows are based on an
adjusted mid-term planning for five years and a life of
132
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
field planning for the remaining years until abandon-
ment. The stress case does not include any other
changes to input factors than prices and volumes and
does not consider any restructuring measures.
Under this stress test scenario, the carrying amounts
of the oil and gas assets with proved reserves (incl.
E&P at-equity investments) would have to be de-
creased by EUR 4.4 bn and goodwill would decrease
by EUR 0.6 bn. In addition, some oil and gas assets
with unproved reserves would be abandoned with a
pre-tax P&L impact of EUR 0.3 bn. For E&P oil and
gas assets, an additional sensitivity based on oil and
gas prices according to the IEA Net Zero by 2050
scenario was calculated and showed a decrease in
the carrying amount of oil and gas assets with proved
and unproved reserves (incl. E&P goodwill) of EUR
6.1 bn (see section 1 of this note).
In the R&M segment, the stress case reflects globally
declining demand for almost all products resulting in
lower margins and cracks compared to the impair-
ment test scenario. Under the stress case scenario,
the carrying amounts related to refineries (including
the investment in ADNOC Refining) would have to be
decreased by in total EUR 0.6 bn, mainly related to
ADNOC Refining investment and Petrobrazi in Roma-
nia. The Schwechat and Burghausen refineries are
more resilient against impairment risks in such a sce-
nario due to the strong focus of these refineries on
petrochemical production.
In the stress test calculations for the refineries, the
cash flows of the 5-year mid-term planning were ad-
justed for the lower margins. The refining indicator
margins Europe were assumed to be lower by approx-
imately 50% in the stress case than in the mid-term
planning. The terminal value for the refineries in Eu-
rope was calculated based on the cash flows derived
from the last detailed planning period and a growth
rate which is equivalent to the CAGR derived from a
long-term estimate of margins and sales volumes.
The growth rates are in the range between (3.17)%
and 1.0%. In addition, cash flows assumed for the ter-
minal value incorporate a significant decrease in oper-
ating costs and CAPEX.
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.
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
133
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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 as well as the contractual cash flow
characteristics of the financial assets. All regular way
trades are recognized and derecognized on the trade
date, i.e., the date that the Group commits to purchase
or sell the asset.
Debt instruments are measured at amortized cost if
both of the following conditions are met:
▸ the asset is held within the business model whose
objective is to hold assets in order to collect 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.
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 demonstrating that a more lagging
default criterion is appropriate. A financial asset is writ-
ten 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 for the remaining amount on the probability of de-
fault 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
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 decided 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 a 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
134
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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.
Details on the valuation of the investments meas-
ured at fair value through profit or loss in the gas
field Yuzhno Russkoye and the contractual position
towards Gazprom with regard to the reserve redeter-
mination can be found in section 1 of this note.
n) Derivative financial instruments and hedge ac-
counting
Derivative financial instruments are used to hedge risks
resulting from changes in currency exchange rates,
commodity prices and interest rates. Derivative instru-
ments are recognized at fair value. Unrealized gains
and losses are recognized as income or expense, ex-
cept 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.
Contracts to buy or sell non-financial items 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
and continue to be held for the purpose of the receipt or
delivery of non-financial items 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 carrying amount of the related assets,
where it is reasonable to expect that the granting condi-
tions 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 chemical
products. Costs of production comprise directly attribut-
able costs as well as fixed and variable indirect material
and production overhead costs. Production-related ad-
ministrative costs, the costs of company pension
schemes and voluntary employee benefits are also in-
cluded in the cost of production. In refineries, a carrying
capacity approach is applied according to which the
135
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
production costs are allocated 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
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 or
136
by partner companies and on past experience. Any
significant downward changes in the expected future
costs or postponement 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 and inflation
rates, which have material effects on the amounts of
the provision. The assumptions used are disclosed
in Note 23 – Provisions.
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
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
severance payments upon termination of employment
or upon reaching the normal retirement age. The enti-
tlements depend on years of service and final compen-
sation levels. Entitlements to severance payments for
employees whose service began after December 31,
2002, are covered by defined contribution plans. Simi-
lar obligations as entitlement to severance payments
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
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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. Expenses related to such restruc-
turing programs are included in the line Other operating
expenses in the Consolidated Income Statement. Vol-
untary modifications to employees’ remuneration ar-
rangements are recognized on the basis of the ex-
pected number of employees accepting the employing
company’s offer. Provisions for obligations related to in-
dividual separation agreements which lead to fixed pay-
ments 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 of discount rates, future in-
creases in salaries and future increases in pensions.
For current actuarial assumptions for calculating ex-
pected defined benefit entitlements and their sensi-
tivity 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, respec-
tively. The expected retirement age used for calcula-
tions 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 developments of market conditions. This
led to the recognition of onerous contract provisions
in the Group’s financial statements for the unavoida-
ble 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.
Emission allowances received free of chargefrom
governmental authorities (EU Emissions Trading
Scheme for greenhouse gas emissions allowances), re-
duce financial obligations related to CO2 emissions;
provisions are recognized only for shortfalls (see Note
23 – Provisions).
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.
Financial guarantee contracts are recognised as a fi-
nancial liability at the time the guarantee is issued. The
liability is initially measured at fair value and subse-
quently measured at the higher of the amount of the
loss allowance determined according to the expected
credit losses model and the amount initially recognized
less the cumulative income recognized according to
IFRS 15.
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 2.2f) are disclosed as in-
come taxes. Deferred taxes are recognized for tempo-
rary differences.
137
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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 an evaluation 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 life span 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, when 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) –
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.
138
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).
x) 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.
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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)
Swedish krona (SEK)
US dollar (USD)
2022
2021
Statement of
financial
position date
1.956
24.116
400.870
1.680
10.514
4.950
11.122
1.067
Statement of
financial
position date
1.956
24.858
369.190
1.658
9.989
4.949
10.250
1.133
Average
1.956
24.566
391.290
1.658
10.103
4.931
10.630
1.053
Average
1.956
25.641
358.520
1.672
10.163
4.922
10.147
1.183
3) Changes in accounting policies
The Group has adopted the following amendments to
standards from January 1, 2022:
The amendments did not have any material impact on
OMV’s group financial statements.
Reference to the Conceptual Framework
▸ Amendment to IFRS 3 Business Combinations:
▸ Amendment to IAS 16 Property, Plant and Equip-
▸ Amendments to IAS 37: Onerous Contracts - Cost
▸ Annual Improvements to IFRS Standards 2018-
ment: Proceeds before intended use
of Fulfilling a Contract
4) New and revised standards not yet mandatory
OMV has not applied the following new or revised
IFRSs that have been issued but are not yet effective.
They are not expected to have any material effects on
the Group’s financial statements. EU endorsement is
still pending in some cases.
2020
Standards and amendments
IASB effective date
IFRS 17 Insurance Contracts and Amendments to IFRS 17
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
Amendments to IAS 1: Classification of Liabilities as Current and Non-Current
Amendments to IFRS 16: Lease Liability in a Sale and Leaseback
Amendments to IAS 1: Non-current Liabilities with Covenants
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2024
January 1, 2024
January 1, 2024
139
OMV ANNUAL REPORT 2022 / 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.
Chemicals & Materials
On June 3, 2022, Borouge PLC has successfully listed
on ADX, the Abu Dhabi Securities Exchange. Following
the IPO (Initial Public Offering), the shareholding in
Borouge PLC has changed to Borealis owning a 36%
stake in Borouge PLC and Abu Dhabi National Oil
Company owning 54% respectively. For details refer
to Note 16 – Equity-accounted investments.
Based on the final offer price of AED 2.45 per share,
the IPO has raised gross proceeds of EUR 1.9 bn for
the offering of 10% of the company’s total issued share
capital. This transaction led to a net gain (including FX
recycling effects) of EUR 341 mn, which is part of the
line “Other operating income” in the consolidated in-
come statement.
Refining & Marketing
On May 1, 2022, OMV closed the transaction to sell its
filling station business in Germany to EG Group. The
agreed purchase price before customary closing adjust-
ments amounted to EUR 485 mn. The transaction led
to a gain of EUR 409 mn recognized in the line “Other
operating income” in the consolidated income state-
ment.
Exploration & Production
OMV ceased to fully consolidate JSC GAZPROM
YRGM Development (YRGM) and to equity account for
OJSC Severneftegazprom (SNGP) and therefore, start-
ing March 1, 2022, the investments in SNGP and
YRGM are accounted for at fair value through profit or
loss according to IFRS 9. For further details refer
to Note 2 – Accounting policies, judgements and esti-
mates, section ‘Impact of Russia’s invasion of Ukraine
and related significant estimates and assumptions’.
Cash flow impact of changes in group structure
Cash flow from investing activities included inflows from
the IPO of Borouge PLC in the amount of EUR 745 mn,
shown in the line “Proceeds in relation to non-current
assets and financial assets”.
Furthermore, cash flow from investing activities
contained an inflow related to the divestment of the
filling station business in Germany in the amount of
EUR 432 mn, presented in the line “Proceeds from the
sale of subsidiaries and businesses, net of cash
disposed” and an outflow of EUR 208 mn related to the
loss of control of JSC GAZPROM YRGM Development,
included in the line “Cash disposed due to the loss of
control.” Further details are presented in the following
tables:
Cash impact from sale of subsidiaries and businesses and cash disposed due to the
loss of control
In EUR mn
Consideration received
Less cash disposed of
Net cash inflows from disposal of subsidiaries and businesses
Cash disposed due to the loss of control
Net assets of disposed subsidiaries and businesses and subsidiaries over which control has been lost
In EUR mn
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
140
2022
446
(6)
440
(214)
2022
681
404
245
179
661
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Segment Reporting
4 Segment Reporting
Changes in segment reporting
Starting with Q1/22 the OMV Group structure was reor-
ganized, which involved the transfer of Gas Marketing
Western Europe, which includes Supply, Marketing,
Trading and Logistics, from Refining & Marketing to Ex-
ploration & Production in order to extract synergies
from the entire end-to-end gas value chain. Internal re-
porting and the relevant information provided to the
chief operating decision-maker in order to assess per-
formance and allocate resources has been updated to
reflect the current organizational structure.
Business operations and key markets
For business management purposes, OMV is divided
into three operating Business Segments: Chemicals &
Materials, Refining & Marketing, and Exploration & Pro-
duction, as well as the segment Corporate and Other
(C&O). Each segment represents a strategic unit and
operates in different markets. Each Business Segment
is managed independently. Strategic business deci-
sions are made by the Executive Board of OMV. With
the exception of C&O, the reportable segments of OMV
are the same as the operating segments.
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.
OMV Group has a production capacity, including joint
ventures, of 7.5 mn t base chemicals, 5.9 mn t polyole-
fins, 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 Brazil and one in South Korea. In addition, OMV
holds minority stakes in various equity-accounted in-
vestments, the most significant ones being Borouge
(United Arab Emirates) a Borealis’ joint venture with
ADNOC that operates the largest petrochemical com-
plex in the world and the Baystar joint venture (Pasa-
dena, United States) which serves the customer base
in the North American markets and operates Port Ar-
thur Refinery with the production capacity of 0.5 mn t
OMV share.
OMV group is pursuing various initiatives in mechanical
and chemical recycling and renewable polyolefins. A
new polyethylene plant based on Borstar technology on
the site in Pasadena is currently under construction
with the target to deliver a broad range of products to
meet the growing global demand of sustainable and
high energy efficient plastic products.
The Refining & Marketing (R&M) Business Segment
refines and markets crude oil and other feedstock. It
operates the refineries Schwechat (Austria), Burghau-
sen (Germany) and Petrobrazi (Romania) with an an-
nual capacity of 17.8 mn t. In these refineries, crude oil
is processed into petroleum products, which are sold to
commercial and private customers. The activities of this
business segment also cover supply and marketing of
gas in Eastern Europe 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 1,800 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.
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. In addition, E&P is engaged in gas supply,
marketing, trading, and logistics in Western Europe.
Group management, financing and insurance activities
as well as certain service functions are concentrated in
the Corporate & Other (C&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 C&O segment.
141
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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.
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 CCS effect is eliminated from the accounting result.
The CCS effect, also called inventory holding gains and
losses, is the difference between the cost of sales cal-
culated using the current cost of supply, and the cost of
sales calculated using the weighted average method
after adjusting for any changes in valuation allowances.
In volatile energy markets, measurement of the costs of
petroleum products sold based on historical values
(e.g. weighted average cost) can have distorting effects
on reported results. This performance measurement
enhances the transparency of results and is commonly
used in the oil industry. OMV, therefore, publishes this
measure in addition to the Operating Result determined
according to IFRS.
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
& 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
Clean Operating Result
CCS effect
Clean CCS Operating Result
Segment assets2
Additions in PPE/IA3
Equity-accounted investments4
C&M
R&M
E&P
C&O
Total
Consoli-
dation
OMV
Group
2022
13,450 28,634
30,857
(1,181)
(2,818)
(6,661)
12,269 25,816
24,197
548
857
181
60
1,478
825
327
6,936
1
252
—
207
460
7,396
—
7,396
332
533
477
422
7
266
2,039
—
(263)
(315)
(4)
(582)
15
68
3,392
2
(47)
(409)
(321)
(774)
1,457
2,618
(202)
2,415
—
1,457
5,964
1,285
5,179
424
(407)
17
73,365
(11,067) 11,067
—
62,298
(11,067) 62,298
—
62,298
58
—
41
1,644
869
2,474
853
7
—
660
(86) 12,281
4
—
—
31
36
8
(58)
(724)
(87)
(861)
—
—
—
1,644
869
2,474
853
—
—
660
(35) 12,246
—
—
—
—
—
8
(58)
(724)
(87)
(861)
(50) 11,420
(35) 11,385
—
(50) 11,218
(202)
(8)
(210)
(43) 11,175
4,223
826
1,765
11,407
1,512
350
234
41
—
21,826
3,664
7,294
—
—
—
21,826
3,664
7,294
1 Including intersegmental 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
142
OMV ANNUAL REPORT 2022 / 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 2021:
Segment reporting
In EUR mn
Sales revenues1
Intersegmental 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
Clean Operating Result
CCS effect
Clean CCS Operating Result
Segment assets2
Additions in PPE/IA3
Equity-accounted investments4
2021 restated
C&M
R&M
E&P
C&O
Total
11,618
16,547
14,650
(1,109)
(2,452)
(3,713)
10,509
14,095
10,937
376
(361)
14
43,191
(7,636)
35,555
246
10
427
717
3
451
7
375
56
1,399
326
0
2,910
14
713
(7)
212
924
1,376
(430)
945
101
(209)
75
(18)
2,892
—
2,892
63
—
41
0
—
(74)
9
—
(6)
9
12
(62)
—
(62)
933
600
2,401
1,538
4
5,115
30
1,297
(223)
210
1,315
6,430
(430)
5,999
249
534
535
495
—
1,828
—
483
—
(87)
396
2,224
—
2,224
5,283
724
5,133
Consoli-
dation
OMV
Group
(7,636) 35,555
—
7,636
35,555
—
—
—
—
—
—
(51)
—
—
—
—
—
(51)
12
(39)
933
600
2,401
1,538
4
5,065
30
1,297
(223)
210
1,315
6,379
(418)
5,961
3,894
619
1,320
12,312
1,253
433
241
28
—
21,730
2,624
6,887
—
—
—
21,730
2,624
6,887
1 Including intersegmental 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
143
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Segment reporting
In EUR mn
2021 reported
C&M
R&M
E&P
C&O
Total
Sales revenues1
Intrasegmental sales
Sales to third parties
11,618
25,928
(1,109)
(2,780)
10,509
23,148
Other operating income
Net income from equity-accounted invest-
ments
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
Clean Operating Result
CCS effect
Clean CCS Operating Result
Segment assets2
Additions in PPE/IA3
Equity-accounted investments4
249
534
535
495
—
1,828
—
483
—
(87)
396
2,224
—
2,224
5,283
724
5,133
6,712
(4,828)
1,884
347
55
1,396
325
0
2,439
14
100
(209)
492
398
2,837
—
2,837
376
(361)
14
44,634
(9,079)
35,555
63
—
41
0
—
(74)
9
—
(6)
9
12
(62)
—
(62)
933
600
2,401
1,538
4
5,115
30
1,297
(223)
210
1,315
6,430
(430)
5,999
274
12
429
718
3
922
7
713
(7)
(204)
509
1,431
(430)
1,001
Consoli-
dation
OMV
Group
(9,079) 35,555
—
9,079
35,555
—
—
—
—
—
—
(51)
—
—
—
—
—
(51)
12
(39)
933
600
2,401
1,538
4
5,065
30
1,297
(223)
210
1,315
6,379
(418)
5,961
3,989
621
1,325
12,217
1,251
429
241
28
—
21,730
2,624
6,887
—
—
—
21,730
2,624
6,887
1 Including intersegmental 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
144
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Other special items mainly consisted of non-cash val-
uation effects related to the reassessment of reserves
redetermination rights of the Yuzhno Russkoye field in
Russia and the effects of deconsolidation of the Rus-
sian entities. For further details see Note 2 – Account-
ing policies, judgements and estimates, section ‘Impact
of Russia’s invasion of Ukraine and related significant
estimates and assumptions’. In addition, other special
items consisted of temporary hedging effects and the
release of a provision in the LNG business.
In 2022 special items for unscheduled depreciation
and write-ups were mainly driven by the revaluation of
the fertilizer business, partly offset by the non-cash net
impairment charges related to E&P assets. For further
details on write-ups and impairments see Note 7 – De-
preciation, amortization, impairments and write-ups.
Special items for asset disposals were related to the
sale of the German filling station business in May 2022
and the Borouge IPO on ADX (the Abu Dhabi Securi-
ties Exchange). For further details see Note 6 – Other
operating income and net income from equity-ac-
counted investments and Note 16 – Equity-accounted
investments.
Information on geographical areas
In EUR mn
Sales to third
parties
14,911
987
14,102
10,149
1,584
212
598
1,644
7,548
7,454
3,110
62,298
—
62,298
2022
Segment
assets1
4,365
1,950
1,200
5,437
1,219
—
864
1,677
554
1,848
2,162
21,274
552
21,826
Equity-
accounted
investments2 External sales
16
45
31
—
—
—
—
6,073
—
22
1,107
7,294
—
7,294
5,326
854
8,499
4,433
1,003
642
443
784
5,246
5,968
2,356
35,555
—
35,555
2021
Segment
assets1
4,207
1,247
1,061
5,628
1,508
592
550
1,671
556
1,893
2,289
21,201
529
21,730
Equity-
accounted
investments2
14
24
31
—
—
117
—
5,352
—
22
1,328
6,887
—
6,887
Austria
Belgium
Germany
Romania
Norway
Russia3
New Zealand
United Arab Emirates
Rest of CEE4
Rest of Europe
Rest of the world5
Allocated
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 Sales in 2022 relate to the period before the change in the consolidation method (for further details see Note 2 - Accounting policies, judgements and estimates,
section ‘Impact of Russia’s invasion of Ukraine and related significant estimates and assumptions’).
4 Including Turkey
5 Rest of the world: Principally Algeria, Argentina, Brazil, Canada, Chile, China, Colombia, Cuba, Egypt, India, Libya, Malaysia, Morocco, Mexico, Nigeria, Peru,
Qatar, Saudi Arabia, South Africa, South Korea, Tunisia, United States of America and Yemen
Not allocated assets contained goodwill in amount of
EUR 342 mn (2021: EUR 322 mn) related to the cash-
generating unit ‘Middle East and Africa’ and
EUR 210 mn (2021: EUR 198 mn) related to the cash
generating unit ‘SapuraOMV’ as these CGUs are oper-
ating in more than one geographical area. In 2021, not
allocated assets also included goodwill in the amount of
EUR 9 mn related to cash generating unit ‘Refining
West’.
145
OMV ANNUAL REPORT 2022 / 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 sources1
Sales revenues
2022
2021
53,827
18
58
8,396
62,298
34,792
15
65
683
35,555
1 The increase in revenues from other sources is mainly driven by commodity trading transactions.
Revenues from contracts with customers
In EUR mn
Crude Oil, NGL and condensates
Natural gas and LNG
Fuel, heating oil and other refining products
Chemical products
Other goods and services1
Revenues from contracts with customers
Crude Oil, NGL and condensates
Natural gas and LNG
Fuel, heating oil and other refining products
Chemical products
Other goods and services1
Revenues from contracts with customers
Chemicals &
Materials
Refining &
Marketing
Exploration &
Production
Corporate &
Other
OMV
Group
—
—
—
12,160
126
12,286
—
—
—
10,347
160
10,507
860
2,389
16,390
54
2,625
22,318
1,071
915
10,460
56
1,278
13,780
2022
1,519
17,520
—
—
168
19,208
2021
1,057
9,235
—
—
199
10,491
—
—
—
—
16
16
—
—
—
—
13
13
2,379
19,909
16,390
12,214
2,935
53,827
2,128
10,150
10,460
10,403
1,651
34,792
1 Mainly retail non-oil business and power sales in Refining & Marketing
146
OMV ANNUAL REPORT 2022 / 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 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
2022
298
—
—
766
579
1,644
2021
127
126
191
282
207
933
937
(68)
869
638
(38)
600
Foreign exchange gains from operating activities
were mainly impacted in 2022 and 2021 by USD for-
eign exchange rate development.
2021 was mainly impacted by the gains on the sale of
Wisting oil filed in Norway of EUR 261 mn.
Gains from fair value changes of trading invento-
ries in 2021 referred to emissions certificates held for
trading in Refining & Marketing and Chemicals & Mate-
rials (Austria and Germany).
Gains from fair value changes of other derivatives
in 2021 were related to forward contracts of emissions
certificates in Refining & Marketing and Chemicals &
Materials (Austria and Germany).
Gains on the disposal of businesses, subsidiaries,
tangible and intangible assets related mostly to gains
on the sale of the filling stations business in Germany
and gains on the Borouge PLC IPO.
On May 1, 2022 OMV closed the transaction to sell its
filling station business in Germany to EG Group. The
agreed sales price before customary closing adjust-
ments amounted to EUR 485 mn and the transaction
led to a gain of EUR 409 mn. For further details see
Note 3 – Changes in group structure.
On June 3, 2022, Borouge PLC was successfully listed
on ADX, the Abu Dhabi Securities Exchange. This
transaction led to a gain of EUR 341 mn including FX
recycling effects. For further details see Note 16 – Eq-
uity-accounted investments.
Residual other operating income contained mostly
compensation from the Romanian State for the sale of
natural gas and electricity at capped prices as well as
the subsidies supporting voluntary price reductions for
the sale of diesel and gasoline. These measures were
introduced via several Government Emergency Ordi-
nances in order to mitigate the consequences of the
energy crisis.
In addition, residual other operating income in 2022 in-
cluded insurance income of around EUR 200 mn re-
lated to the incident at OMV Schwechat refinery in June
2022 and storage income related to Erdöl-Lagergesell-
schaft m.b.H. of EUR 34 mn.
2021 contained mostly storage income related to Erdöl-
Lagergesellschaft m.b.H. (EUR 43 mn) and insurance
compensation related to 2020 process safety incident
in Borealis cracker in Sweden (EUR 34 mn).
Income from equity-accounted investments was
mainly impacted by Abu Dhabi Oil Refining Company
and Borouge investments. Expenses from equity-ac-
counted investments were predominantly stemming
from Bayport Polymers LLC. For further details see
Note 16 – Equity-accounted investments.
147
OMV ANNUAL REPORT 2022 / 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
2022
2,474
(660)
670
2,484
2021
2,401
(4)
1,353
3,750
2022
670
183
853
2021
1,353
185
1,538
2022
2,474
—
2,200
274
(660)
—
(660)
(0)
853
183
660
10
2021
2,401
—
2,144
257
(4)
—
(0)
(3)
1,538
185
1,303
49
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
Impairments and write-ups in Chemicals & Materi-
als
In 2022, a write-up of EUR 266 mn was recognized re-
lated to the the sale of the nitrogen business unit of Bo-
realis group including fertilizer, melamine, and technical
nitrogen products. The valuation was based on a bind-
ing offer from AGROFERT, a.s. as of June 2, 2022 to
reflect the fair value less cost to sell. The binding offer
received from EuroChem in February 2022 was de-
clined in March 2022 after assessing developments re-
sulting from the war in Ukraine and related sanctions.
148
In 2021, impairment losses of EUR 444 mn were recog-
nized for the nitrogen business unit of Borealis Group
to reflect the fair value less cost to sell as of Decem-
ber 31, 2021. The valuation was based on the binding
offer from EuroChem for the acquisition of the disposal
group received on February 2, 2022.
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Impairments and write-ups in Refining & Marketing
In 2022, there was a net write-up of EUR 67 mn of the
ADNOC Refining and Trading CGU, mainly related to
the impairment testing triggered by the positive near-
term margin outlook for refining margins in Middle East.
In 2021, the deterioration in the margin 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 due to lower refin-
ing margins and production volumes in ADNOC Refin-
ing.
Impairments and write-ups in Exploration & Pro-
duction
In Q4/22, OMV updated its commodity price assump-
tions. Whereas the European gas prices increased for
the near and long-term, the expected production vol-
ume of some oil and gas assets in Romania decreased
due to higher expected natural decline rates and oper-
ating costs increased. These effects led to pre-tax im-
pairments of EUR 117 mn (net of write-ups) of some
development and production oil and gas assets, related
to assets in Romania, New Zealand and Austria. For
more details on price assumptions see Note 2 – Ac-
counting policies, judgements and estimates.
Exploration & Production impairments and write-ups based on impairment testing in Q4/22
In EUR mn
Country
New Zealand
Romania
Austria
Pre-tax impair-
ments net of
write-ups
Value in use
of assets
impacted
(173)
367
(78)
881
1,910
1,090
After-tax
discount
rate
8.93%
10.28%
8.94%
In 2022 reported impairment losses attributable to ex-
ploration and appraisal (EUR 183 mn) were mainly re-
lated to unsuccessful exploration wells and exploration
licenses in Norway, New Zealand, Romania and Aus-
tralia.
Additionally, impairments in 2022 included mainly un-
successful workovers, obsolete or replaced assets in
Romania (EUR 84 mn) and a production license in
Libya (EUR 70 mn).
In 2021 based on impairment testing EUR 111 mn of
exploration and appraisal assets were impaired, mainly
related to assets in Norway, New Zealand, Mexico and
Tunisia. Furthermore, impairment losses in 2021 in-
cluded impairments of EUR 74 mn mainly related to un-
successfull exploration wells and exploration licenses in
Australia, Norway, Romania and New Zealand.
Other impairments in 2021 were mainly related to un-
successful workovers and obsolete or replaced assets
in Romania (EUR 87 mn).
The planned sale of OMVs relevant operating entities in
Yemen in Q2/22 led to the reclassification to “held for
sale”, which triggered a pre-tax impairment of
EUR 48 mn. For more details please see Note 20 – As-
sets and liabilities held for sale.
For further information related to significant judgements
and assumptions with regards to impairment testing re-
fer to Note 2 – Accounting Policies, judgements and es-
timates.
149
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
8 Exploration expenses
The following financial information represents the
amounts included in the Group totals relating to explo-
ration 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
2022
2021
183
67
250
878
103
149
185
95
280
967
85
(169)
1 Overall amount reported in 2021 represents a net cash inflow due to the sale of OMV’s 25% stake in the Wisting oil field in Norway leading to a cash inflow of
EUR 290 mn.
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
2022
268
685
432
43
3
65
142
1,639
2021
121
48
317
9
22
58
113
688
Foreign exchange losses from operating activities
in 2022 and 2021 were mainly impacted by USD for-
eign exchange rate development.
Losses on disposals of businesses, subsidiaries,
tangible and intangible assets contained mostly
losses from deconsolidation of the Russian entities in
the amount of EUR 658 mn. For further details see
Note 2 – Accounting policies, judgements and esti-
mates, section ‘Impact of Russia’s invasion of Ukraine
and related significant estimates and assumptions’.
Losses from fair value changes of financial assets
contained losses related to asset from reserves rede-
termination rights with respect to the acquisition of in-
terests in the Yuzhno Russkoye field. For further details
see Note 2 – Accounting policies, judgements and esti-
mates, section ‘Impact of Russia’s invasion of Ukraine
and related significant estimates and assumptions’. In
2021, these losses related to fair value adjustments of
asset from reserves redetermination rights with respect
to Yuzhno Russkoye field (EUR 256 mn) and financial
assets from the reassessment of contingent considera-
tion from the divestment of the 30% stake in Rosebank
and OMV (U.K.) Limited (EUR 61 mn).
Net impairment losses on financial assets meas-
ured at amortized cost were mainly related to impair-
ments of receivables in Tunisia amounting to
EUR 20 mn (2021: EUR 9 mn).
Further information on personnel reduction schemes
is included in Note 10 – Personnel expenses.
Residual other operating expenses contained ex-
penses relating to various digitalization initiatives
amounting to EUR 40 mn (2021: EUR 45 mn) as well
as storage expenses related to Erdöl-Lagergesellschaft
m.b.H. in amount of EUR 45 mn (2021: EUR 51 mn).
150
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
10 Personnel expenses
Personnel expenses
In EUR mn
Wages and salaries
Costs of defined benefit plans
Costs of defined contribution plans
Personnel reduction schemes
Other employee benefits
Taxes and social contribution
Personnel expenses
2022
1,314
30
77
3
275
309
2,009
2021
1,273
28
62
22
267
302
1,953
Higher net expenses for personnel reduction
schemes in 2021 were mainly related to restructuring
expenses from outsourcing activities in Romania.
benefits. For further information please refer to Note
32 – Share-based payments.
Share-based payments were part of other employee
Additional details on defined benefit plans are in-
cluded in Note 23 – Provisions.
11 Net financial result
Interest income
In EUR mn
Cash & cash equivalents
Discounted receivables
Other financial and non-financial assets
Loans
Interest income
2022
2021
193
5
20
51
269
27
5
9
120
161
Interest income on cash and cash equivalents in
2022 was primarily related to interest income on RON,
USD and EUR bank deposits.
Interest income from loans included EUR 17 mn
(2021: EUR 92 mn) related to the Nord Stream 2 fi-
nancing agreement and EUR 32 mn (2021:
EUR 27 mn) related to loan agreement towards Bay-
port Polymers LLC. For further details see Note 18 – Fi-
nancial assets.
151
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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 schemes and other employee benefits
Provisions for pensions and severance payments
Provisions for onerous contracts
Other
Interest expenses, gross
Capitalized borrowing costs
Interest expenses
2022
2021
120
30
47
196
3
14
14
11
435
(18)
417
142
26
26
114
2
12
17
8
348
(14)
334
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 2022 were im-
pacted by the negative reassessment effects of receiv-
ables from the Romanian State amounting to
EUR 65 mn (2021: EUR 41 mn). The remaining part of
interest expenses on provisions for decommissioning
and restoration obligations related entirely to unwinding
effects. Both effects increased in 2022 due to the in-
crease in discount rates.
The interest expenses on pension provisions were
netted against interest income on pension plan assets
which amounted to EUR 6 mn (2021: 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 construc-
tion of the ReOil and Bio-Oil plant in Austria.
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
2022
(10,857)
10,811
(46)
95
(1,393)
(1,345)
2021
(9,348)
9,315
(33)
9
(17)
(40)
In 2022 net foreign exchange gains were predomi-
nantly impacted by USD and were partly offset by NOK.
The position Other was mainly related to impairment of
the Nord Stream 2 loan (EUR 1,004 mn) and fair value
adjustment of investments in Russia (EUR 370 mn).
For further details see Note 2 – Accounting policies,
judgements and estimates, section ‘Impact of Russia’s
invasion of Ukraine and related significant estimates
and assumptions’.
152
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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
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
Changes in deferred taxes1
In EUR mn
Deferred taxes January 1
Deferred taxes December 31
Changes in deferred taxes
Deferred taxes accounted for in OCI or directly in equity
Changes in consolidated Group, exchange differences and other changes2
Deferred tax expense 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 tax balances reclassified to held for sale.
2 In 2022 these effects were mainly related to deconsolidation of JSC GAZPROM YRGM Development (EUR 116 mn).
2022
10,765
5,505
37
85
5,590
2021
4,870
2,056
6
10
2,066
2022
2021
30
—
30
42
(8)
33
2022
2021
(87)
(78)
9
(38)
132
(85)
(96)
(327)
9
329
(57)
(87)
(30)
(42)
22
(10)
3
88
(40)
(61)
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.
153
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Tax rate reconciliation
Theoretical taxes on income based on Austrian income
tax rate
2,691
25.0
1,218
2022
2021
In EUR mn
In %
In EUR mn
Tax effect of:
Differing foreign tax rates
Non-deductible expenses
Non-taxable income and tax incentives
Income and expenses related to at-equity accounted
investments
Change in tax rate
Permanent effects within tax loss carryforwards
Tax write-downs and write-ups on investments in
subsidiaries
Change in valuation allowance for deferred taxes
Taxes related to previous years
Other
Total taxes on income and profit
2,755
612
(160)
(414)
96
(9)
(430)
327
60
61
5,590
25.6
5.7
(1.5)
(3.8)
0.9
(0.1)
(4.0)
3.0
0.6
0.6
51.9
1,270
217
(346)
(200)
(3)
5
32
(88)
32
(71)
2,066
In %
25.0
26.1
4.4
(7.1)
(4.1)
(0.1)
0.1
0.7
(1.8)
0.7
(1.4)
42.4
Differing foreign tax rates effects in 2022 mostly re-
late to subsidiaries operating in tax jurisdictions with
high corporate income tax rates (Norway, United Arab
Emirates and Libya). Increase in the effects related to
differing foreign tax rates as compared to 2021 was
mostly due to significant growth in profit before tax of
those subsidiaries.
Effects related to the change in tax rate mainly re-
lated to decrease in deferred tax rate for Austrian enti-
ties. Based on the Eco Social Tax Reform Act which
was adopted by the National Parliament of Austria in
January 2022, corporate income tax rate will be de-
creased from 25% to 24% in 2023 and further to 23%
from 2024 onward.
Non-deductible expenses contained mainly losses
from fair value changes of financial assets, effects re-
lated to deconsolidation of JSC GAZPROM YRGM De-
velopment and permanent effects from depreciation,
depletion and amortization.
Tax write-downs and write-ups on investments in
subsidiaries in 2022 were mainly related to the tax im-
pairment of the investment in JSC GAZPROM YRGM
Development.
Non-taxable income and tax incentives in 2022
mainly related to non-taxble gains on the sale of the fill-
ing station business in Germany. 2021 was predomi-
nantly impacted by the gains on the sale of Wisting field
and tax incentives in Norway.
Income and expenses related to at-equity ac-
counted investments effects in 2022 were mainly re-
lated to share of profit from equity-accounted invest-
ments, gains from the sucessful listing of Borouge PLC
on ADX (the Abu Dhabi Securities Exchange) and write
-up of investment in ADNOC Refining. 2021 was mainly
impacted by the share of profit from equity-accounted
investments and ADNOC Refining impairment. For fur-
ther details see Note 16 – Equity-accounted invest-
ments.
Change in valuation allowance for deferred taxes
was predominately impacted by the increase in valua-
tion allowances on deferred tax assets in Austria. For
further details see Note 25 – Deferred Taxes.
Taxes related to previous years in 2022 were mainly
related to the effects on the sale of the filling stations
business in Germany and effects related to differences
between functional currency and tax currency of certain
subsidiaries.
Other effects in 2022 included EU solidarity contribu-
tion in the amount EUR 90 mn. As a direct conse-
quence to the energy crisis in Europe, regulatory
measures like price caps, subsidy schemes and the EU
solidarity contribution are being implemented in some
of the countries the OMV Group is active in. The Coun-
cil Regulation (EU) 2022/1854 introduced a solidarity
contribution, which was transposed into the local legis-
lation of the Member States by the end of 2022 and is
154
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
applicable for 2022 and/or 2023. It represents a contri-
bution for surplus profits of companies operating in the
crude petroleum, natural gas, coal and refinery sectors
and is calculated based on the taxable profits of those
companies, as determined under national tax rules,
which are above a 20% increase of the average taxable
profits generated in the period 2018 to 2021.
Based on the legislation in Austria, it is expected that
two Austrian entities of OMV Group will be subject to
the solidarity contribution (Energy Crisis Contribution)
for the second half of 2022. Romania transposed this
regulation via GEO (Government Emergency Ordi-
nance) 186/2022, approved and published in Decem-
ber 2022. This GEO will subsequently follow the Parlia-
mentary approval process, thus may be subject to
changes. Based on OMV Petrom 2022 financials and
the provisions of this Emergency Ordinance, OMV
Petrom is not subject to the EU solidarity contribution
for the fiscal year 2022, having less than 75% of its
turnover in the defined areas: extraction of crude, ex-
traction of natural gas, extraction of coal and refining
business. Also, for OMV Group entities in Germany no
solidarity contribution is expected for 2022.
13 Earnings Per Share
Earnings Per Share (EPS)
In EUR mn
Earnings
attributable
to stockholders
of the
parent
in EUR mn
2022
Weighted
average
number of
shares out-
standing
Basic
Diluted
3,634
3,634
326,897,763
327,136,798
Earnings
attributable
to stockholders
of the
parent
in EUR mn
2021
Weighted
average
number of
shares out-
standing
2,093
2,093
326,854,031
327,272,727
EPS in EUR
11.12
11.11
EPS in EUR
6.40
6.40
The calculation of diluted Earnings per Share took into
account the weighted average number of shares in is-
sue following the conversion of all potentially diluting
ordinary shares. This included 239,035 (2021: 421,342)
contingently issuable bonus shares related to Long
Term Incentive Plans and the Equity Deferral.
155
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Notes to the Statement of Financial Position
14 Intangible assets
Intangible assets
In EUR mn
Concessions,
software,
licenses,
rights
Development
costs
Oil and gas
assets
with unproved
reserves
2022
Goodwill
Total
2,199
(236)
(662)
31
5
(0)
(6)
1,330
979
(85)
(234)
108
6
(0)
(1)
(5)
769
1,220
562
2,120
53
61
9
(23)
(22)
2,199
850
11
162
0
0
(22)
(22)
979
1,271
1,220
464
—
—
110
—
—
(2)
572
52
(0)
—
31
3
—
—
(1)
86
411
486
389
0
61
14
—
—
464
8
—
29
12
3
—
—
52
381
411
1,876
36
(36)
172
(141)
27
(122)
1,811
909
25
(36)
0
179
(24)
1
(121)
934
967
878
2021
2,195
58
134
(336)
(74)
(101)
1,876
934
33
0
184
(147)
—
(95)
909
1,260
967
562
28
—
—
—
—
(6)
585
—
—
—
—
—
—
—
—
—
562
585
531
31
—
—
—
—
562
—
—
—
—
—
—
—
—
531
562
5,101
(172)
(699)
313
(136)
27
(136)
4,298
1,940
(60)
(270)
140
189
(24)
(0)
(127)
1,788
3,161
2,510
5,235
142
257
(313)
(96)
(123)
5,101
1,792
44
191
196
(143)
(22)
(117)
1,940
3,443
3,161
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
Changes in consolidated Group
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
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
156
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Changes in consolidated group in 2022 of
EUR 428 mn were related to the deconsolidation of
JSC GAZPROM YRGM Development. For details see
Note 3 – Changes in group structure and Note 2 – Ac-
counting policies, judgements and estimates, section
‘Impact of Russia’s invasion of Ukraine and related sig-
nificant estimates and assumptions’.
Additions to intangible assets in 2022 included
EUR 37 mn (2021: EUR 33 mn) additions for internally
generated assets mainly related to capitalized develop-
ment costs.
The transfers were mainly related to the shift of Berling
project (Norway) to development assets following the fi-
nal investment decision.
Intangible assets with a total carrying amount of
EUR 27 mn were reclassified back from assets held
for sale to intangible assets, mainly related to OMV’s
share in the Maari field in New Zealand. For details see
Note 20 – Assets and liabilities held for sale. In 2021
the intangible assets transferred to assets held for sale
amounted to EUR 74 mn, mainly related to OMV’s 25%
stake in the Norwegian oil field Wisting, which was sold
in Q4/21.
Further details on impairments and write-ups can be
found in Note 7 – Depreciation, amortization, impair-
ments and write-ups.
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
2022
2021
342
210
552
—
7
26
33
322
198
520
9
7
26
42
585
562
In 2022, the goodwill allocated to Exploration & Produc-
tion increased due to favorable currency translation dif-
ferences.
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 10.47% (2021: 9.44%) and for goodwill allocated
to SapuraOMV an after-tax discount rate of 9.07%
(2021: 8.00%) was used.
An after-tax discount rate of 12.67% (2021: 12.73%) re-
lated to the goodwill allocated to Middle East and Africa
would lead to zero headroom. The increase of 1 per-
centage in the after-tax discount rate for the goodwill al-
located to SapuraOMV would led to an after-tax impair-
ment of EUR 38 mn. For details regarding changes in
price assumptions including the impact on goodwill re-
fer to Note 2 – Accounting policies, judgements and es-
timates.
For details on contractual obligations for the acquisition
of intangible assets refer to Note 15 – Property, plant
and equipment.
157
OMV ANNUAL REPORT 2022 / 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
Plant and
machinery
Other
fixtures,
fittings
and
equipment
Assets
under
construction
Total
2022
3,398
25,042
11,254
1,989
1,511
43,195
(17)
111
174
1,244
(4)
1,268
(20)
3,352
(169)
678
(21)
539
(59)
(220)
(3)
51
0
88
(12)
(68)
(74)
127
236
(200)
—
(690)
(10)
(13)
26,549
12,002
2,043
2,061
15,451
6,085
18
1,390
595
22
241
(195)
(317)
17,205
9,591
9,344
(106)
671
8
(8)
(55)
(211)
(7)
6,378
5,169
5,624
1,383
(3)
144
2
6
(9)
(66)
—
1,457
606
586
8
0
—
8
2
(1)
(9)
(2)
6
1,503
2,055
4
69
(18)
(35)
3,512
1,698
(8)
138
6
1
(6)
(24)
(0)
1,805
1,700
1,706
(90)
133
136
(537)
46,168
24,626
(98)
2,342
619
24
170
(505)
(327)
26,851
18,569
19,317
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
Write-ups
December 31
Carrying amount January 1
Carrying amount December 31
158
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Property, plant and equipment including right-of-use assets
In EUR mn
Oil and
gas assets
with proved
reserves
Land and
buildings
Plant and
machinery
Other
fixtures,
fittings
and
equipment
Assets
under
construction
3,584
(2)
85
2
39
(282)
(28)
3,398
1,669
0
145
0
(2)
(96)
(17)
1,698
1,915
1,700
23,445
660
1,047
(335)
334
(1)
(107)
25,042
13,695
364
1,255
93
148
0
(105)
15,451
9,750
9,591
2021
11,483
1,967
(50)
172
30
320
(493)
(208)
11,254
5,640
(20)
674
41
(3)
(49)
(200)
6,085
5,843
5,169
(5)
69
—
91
(51)
(84)
1,989
1,346
(3)
143
1
4
(28)
(80)
1,383
622
606
1,081
(1)
994
—
(468)
(91)
(4)
1,511
7
0
—
1
—
(0)
(0)
8
1,073
1,503
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
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
The transfers were mainly related to the shift of Berling
project (Norway) from intangible assets to development
assets following the final investment decision.
business in Germany and the planned sale of Borealis’
share of Rosier fertilizer business. For more details see
Note 20 – Assets and liabilities held for sale.
Property, plant and equipment with a total carrying
amount of EUR 34 mn (2021: EUR 745 mn) were trans-
ferred to assets held for sale, mainly related to OMV’s
relevant operating entities in Yemen, the Avanti retail
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
2022
326
1,410
1,736
2021
326
1,149
1,474
In 2022 the contractual commitments for acquisitions of
fixed assets were mainly related to activities in Explora-
tion & Production and Chemicals & Materials. The in-
crease of contractual obligations in 2022 was mainly re-
lated to commitments in Norway and Romania.
OMV as a lessee
The increase in right of use assets is mainly driven by
new leasing contracts for storage infrastructure related
to the propane dehydrogenation plant (PDH) in Kallo,
Belgium.
159
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Additionally, right-of-use assets included mainly leases
of filling station sites and buildings, other land, vessels,
pipelines and office buildings. In addition, OMV leases
mainly a hydrogen plant at Petrobrazi refinery in Roma-
nia, technical equipment and vehicles.
assets held for sale, mainly related to the planned sale
of the Avanti retail business in Germany and are repre-
sented in the line other movements.
Leases not yet commenced in 2022 but committed
amounted to EUR 10 mn (2021: EUR 26 mn).
Right-of-use assets with a total carrying amount of
EUR 7 mn (2021: EUR 53 mn) were transferred to
Right-of-use assets recognized under IFRS 16
In EUR mn
Land and
buildings
Plant and
machinery
Other
fixtures,
fittings
and
equipment
555
102
(63)
(13)
581
593
72
(67)
(43)
555
2022
42
498
(35)
(1)
504
2021
48
18
(17)
(7)
42
174
40
(64)
(2)
149
194
57
(62)
(15)
174
Total
771
640
(162)
(16)
1,233
836
147
(146)
(66)
771
2022
2021
37
10
35
11
30
26
January 1
Additions
Depreciation
Other movements
December 31
January 1
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.
160
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
16 Equity-accounted investments
Material associates and joint ventures
Following the Initial Public Offering (IPO) on June 3,
2022 the shareholding in Borouge PLC (PLC) has
changed to Borealis owning a 36% stake in Borouge
PLC and Abu Dhabi National Oil Company owning 54%
respectively. The Borouge 4 project, which is currently
being executed, has not been part of the offering. It is
intended to recontribute Borouge 4 at a later point in
time. PLC is registered in Abu Dhabi and is the holding
company for its 100% interest in Abu Dhabi Polymers
Company Limited (Borouge) (ADP) and its 84.75%
interest in Borouge Pte. Ltd. (PTE). Before the IPO
OMV held a 40% stake in ADP, which also included the
Borouge 4 project, and a 50% stake in PTE. In 2022,
OMV’s share in PTE changed, following the IPO, from
a 50% (direct) share in 2021 to a 45.76% share
(15.25% direct share and 30.51% indirect share
through PLC). For the impact on the consolidated in-
come and cash flow statement refer to Note 3 –
Changes in group structure.
As of December 31, 2022, the fair value of the Group’s
interest in PLC, which is listed on the Abu Dhabi Secu-
rities Exchange of United Arab Emirates (UAE), was
EUR 6,989 mn, based on the quoted market price
available on the stock exchange of UAE. The corre-
sponding book value of PLC was EUR 3,944 mn as of
December 31, 2022.
The “Borouge investments” (representing total
OMV share in PLC, ADP, PTE) are a leading provider
of innovative, value-creating plastic solutions for
energy, infrastructure, automotive, healthcare and
agriculture industries as well as advanced packaging
applications and also responsible for marketing and
sales of the products produced.
Due to the restructuring of the Borouge entities
triggered by the IPO in 2022 the previous control
assessment was revised. Given the fact that no Board
Reserved Matters, which are affecting all relevant
activities, can be decided without an affirmative vote of
Borealis, OMV has joint control over the three
investments. Furthermore, it was concluded that
already in previous years joint control was exercised
and therefore the presentation within this Note was
adjusted accordingly (included in below tables as ‘joint
venture’ instead of ‘associate’).
Bayport Polymers LLC, registered in Pasadena
(incorporated in Wilmington), successfully started its
operations of the new one million ton-per-year ethane
cracker at the Port Arthur Refinery and is currently
building a polyethylene unit in Pasadena with the target
to deliver a broad range of products to meet the
growing global demand of sustainable and high energy
efficient plastic products. As OMV has joint control over
Bayport Polymers LLC (50/50 share split) and rights to
the net assets, it therefore accounts the company as
joint venture.
OMV also holds a 15% (2021: 15%) interest in Abu
Dhabi Oil Refining Company, registered in Abu
Dhabi, which runs a refinery hub with integrated
petrochemicals. According to the contractual
agreement between the shareholders, OMV has strong
participation rights which represent significant influence
as per IAS 28 definition. In 2022, a net write-up of
EUR 67 mn was recognized in ADNOC Refining and
Trading CGU (in 2021 impairment of EUR 669 mn). For
further details please refer to Note 7 – Depreciation,
amortization, impairments and write-ups.
161
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
The tables below contain summarized financial infor-
mation for the material associates and joint ventures.
Statement of comprehensive income
In EUR mn
2022
Joint
Ventures
Associate
2021
Joint
Ventures
Associate
Abu Dhabi
Oil Refining
Company
Borouge
investments
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
Abu Dhabi
Polymers
Company
Limited
(Borouge)1
Bayport
Polymers
LLC
Sales revenue
Net income for the year
Other comprehensive income
Total comprehensive income
Group’s share of comprehensive
income
36,241
2,054
2
2,056
12,027
1,055
20
1,075
601
(116)
—
(116)
21,760
(233)
—
(233)
308
407
(58)
(35)
4,630
1,139
1
1,140
456
588
73
—
73
36
1 Included 40% stake in the Borouge 4 project, which was transferred in 2022 to the newly founded company Borouge 4 LLC (included in 2022 in individually im-
material joint ventures)
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
2022
Joint
Ventures
Associate
Associate
Abu Dhabi
Oil Refining
Company
Borouge
investments
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
17,084
3,888
6,363
628
13,982
2,097
—
(573)
1,524
6,901
3,924
4,107
2,021
4,698
1,704
2,058
268
4,030
4,002
194
2,635
166
1,396
698
—
(24)
674
17,905
2,979
6,100
1,093
13,691
2,054
—
(873)
1,181
2021
Joint
Ventures
Abu Dhabi
Polymers
Company
Limited
(Borouge)1
Bayport
Polymers
LLC
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
1 Included 40% stake in the Borouge 4 project, which was transferred in 2022 to the newly founded Borouge 4 LLC (included in 2022 in individually immaterial joint
ventures)
162
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Carrying amount reconciliation
In EUR mn
2022
Joint
Ventures
Associate
2021
Joint
Ventures
Associate
Abu Dhabi
Oil Refining
Company
Borouge
investments
Bayport
Polymers
LLC
Abu Dhabi
Oil Refining
Company
Abu Dhabi
Polymers
Company
Limited
(Borouge)1
Bayport
Polymers
LLC
January 1
Currency translation differences
Transfer2
Net income
Other comprehensive income
Dividends distributed
Write-up (Impairment)
Other changes
December 31
1,181
83
—
308
0
(116)
67
—
1,524
4,061
248
337
400
7
(592)
—
(430)3
4,030
688
44
—
(58)
—
—
—
—
674
1,747
138
—
(35)
—
—
(669)
—
1,181
5,062
419
—
456
0
(1,876)
—
—
4,061
620
53
—
36
—
(21)
—
—
688
1 Included 40% stake in the Borouge 4 project, which was transferred in 2022 to newly founded Borouge 4 LLC (included in 2022 in individually immaterial joint
ventures)
2 Mainly comprises the transfer of the direct share in PTE, which is part of “Borouge investments” and therefore included in material joint ventures from 2022 on-
wards
3 Refers to the partial disposal of ADP and PTE as a result of ADX listing in 2022. For details refer to the description above.
Individually immaterial associates and joint ven-
tures
OMV holds 55.6% (2021: 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%,
2021: 25%), registered in Abu Dhabi, and Pak-Arab
Refinery Limited (PARCO; indirect interest of OMV
amounts to 10%, 2021: 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.
Since March 2022, OMV has 40% interest through Bo-
realis in Borouge 4 LLC, registered in Abu Dhabi. The
company executes the ongoing Borouge 4 project by
developing an ethane-based steam cracker, two poly-
olefin plants, a 1-Hexene unit, a cross-linked polyeth-
ylene plant (XPLE) and an in-depth study for carbon
capture unit. It was previously part of the 40% direct in-
terest in ADP but scoped out of the IPO in June 2022,
as described above, and therefore transferred to this
newly founded company. However, it is intended to re-
contribute Borouge 4 at a later point. Given the fact that
no Board Reserved Matters, which are affecting all rel-
evant activities can be decided without an affirmative
vote by Borealis, OMV has joint control over Borouge 4
LLC and accounts for it as joint venture.
In June 2021, OMV subscribed through Borealis to a
new share issue, thus acquiring 10% in Renasci N.V.,
a company incorporated in Belgium. On November 9,
2022 as a result of the debt conversion into newly is-
sued shares, OMV has increased its stake in Renasci
N.V. from 10% to 27.42%. The nominal amount of the
loan converted was EUR 24 mn. Renasci N.V. is princi-
pally engaged in the development of the proprietary
processes and know-how about various technologies
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. Therefore, the investment is
accounted for as an associated company.
163
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Furthermore, OMV has a 10% interest (2021: 10%) in
Pearl Petroleum Company Limited, registered in Road
Town, British Virgin Islands, which is involved in explo-
ration and production of hydrocarbons in the Kurdistan
Region of Iraq. According to the contractual agreement
between OMV and Pearl Petroleum Company Limited
(Pearl), OMV has significant influence within the mean-
ing 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%.
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 share1
In EUR mn
Sales revenue
Net income for the year
Other comprehensive income
Total comprehensive income
2022
2021
Associates Joint ventures
Associates
Joint ventures
5,889
189
0
190
461
30
(2)
27
3,314
86
—
86
5,516
58
1
58
1 The presentation within this table was adjusted for 2021 due to control re-assessment for PTE: included as ‘joint venture’ instead of ‘associate’
Carrying amount reconciliation for individually immaterial associates and joint ventures1
In EUR mn
January 1
Currency translation differences
Changes in consolidated group3
Transfer4
Additions and other changes
Net income
Other comprehensive income
Disposals and other changes
Dividends distributed
December 31
2022
Associates2 Joint ventures
416
541
(8)
(89)
—
24
189
0
(1)
(88)
568
(13)
—
(337)
4095
30
(2)
—
(5)
498
2021
Associates2
Joint ventures
501
33
25
—
—
86
—
(55)
(50)
541
391
24
(15)
—
—
58
1
—
(42)
416
1 The presentation within this table was adjusted for 2021 due to control re-assessment for PTE: included as ‘joint venture’ instead of ‘associate’
2 Includes associated companies accounted at-cost
3 Changes in consolidated group represent the deconsolidation of OJSC Severneftegazprom. For further details refer to Note 2 – Accounting policies, judgements
and estimates, section ‘Impact of Russia’s invasion of Ukraine and related significant estimates and assumptions’.
4 Mainly comprises the transfer of the direct share in PTE, which is part of “Borouge investments” and therefore included in material joint ventures from 2022 on-
wards (for details refer to the description above).
5 Refers mainly to the capital contribution to Borouge 4 LLC
164
OMV ANNUAL REPORT 2022 / 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
2022
824
936
677
231
1,112
1,053
4,834
2021
673
204
537
146
645
945
3,150
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 petrochemical products
In 2022 the line ‘write-downs to net realizable value and
write-offs of inventories’ was mainly related to gas in
storage.
2022
2021
34,811
4,047
466
(25)
39,298
16,610
3,615
41
(9)
20,257
165
OMV ANNUAL REPORT 2022 / 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
136
—
136
24
26
—
10
2,867
—
—
2,927
3,063
258
—
258
1
30
—
—
4,220
—
432
4,683
4,941
—
—
—
19
—
—
370
—
—
—
389
389
—
—
—
16
—
—
398
—
—
—
415
415
2022
3,351
735
4,086
—
—
52
—
—
711
1,850
2,612
6,699
2021
3,671
589
4,260
—
—
63
—
—
2,015
1,703
3,781
8,041
3,487
735
4,222
42
26
52
380
2,867
711
1,850
5,928
10,150
3,929
589
4,518
17
30
63
398
4,220
2,015
2,135
8,879
13,397
3,487
735
4,222
—
—
32
263
2,114
82
1,437
3,929
8,151
3,929
589
4,518
—
—
24
312
3,425
115
1,272
5,148
9,667
—
—
—
42
26
20
116
753
628
412
1,999
1,999
—
—
—
17
30
40
87
795
1,900
862
3,730
3,730
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 of December 31, 2022, was
EUR 3,063 mn (2021: EUR 4,941 mn). These mainly
consisted of financial assets held for trading.
expenses which reduced the fair value of this position
to zero. For further details refer to Note 2 – Accounting
policies, judgements and estimates, section ‘Impact of
Russia’s invasion of Ukraine and related significant es-
timates and assumptions’.
In 2021 it included also an acquired contractual position
towards Gazprom with regard to the reserves redeter-
mination in amount of EUR 432 mn in connection with
the acquisition of interests in the Yuzhno Russkoye
field. As OMV no longer expects the contractual posi-
tion towards Gazprom to be recoverable, a fair value
loss of EUR 432 mn was recognized in other operating
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. The total outstanding amount of
EUR 1 bn including accrued interest as of
March 5, 2022, was fully impaired, negatively impacting
166
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
the financial result. For further details refer to Note 2 –
Accounting policies, judgements and estimates, section
‘Impact of Russia’s invasion of Ukraine and related sig-
nificant estimates and assumptions’.
The position loans in 2022 included drawdowns and
the related accrued interests under a member loan
agreement towards Bayport Polymers LLC in amount of
EUR 657 mn (2021: EUR 987 mn). During 2022 the
loan was partially repaid in amount of EUR 602 mn,
partly offset by additional drawdowns made amounting
to EUR 227 mn (2021: EUR 183 mn). For further de-
tails see Note 35 – Related Parties as well as Note 28
– Risk Management.
Other sundry financial assets included expenditure
recoverable from Romanian State amounting to
EUR 326 mn (2021: EUR 372 mn) related to obliga-
tions for decommissioning and environmental costs in
OMV Petrom SA. The receivables consisted of
EUR 318 mn (2021: EUR 352 mn) for costs relating to
decommissioning and EUR 8 mn (2021: EUR 20 mn)
for costs relating to environmental cleanup.
On March 7, 2017, OMV Aktiengesellschaft, as party in
the OMV Petrom privatization agreement, initiated arbi-
tration proceedings against the Romanian Ministry of
Environment, in accordance with the International
Chamber of Commerce Rules, regarding certain claims
unpaid by this ministry for costs incurred by OMV
Petrom relating to well decommissioning and environ-
mental remediation works, amounting to EUR 58 mn.
On July 9, 2020, the Arbitral Tribunal issued the Final
Award on the arbitration and requested the Romanian
Ministry of Environment to reimburse to OMV Petrom
almost entirely the amount claimed and related interest.
The amount of EUR 58 mn representing the principal
and the amount of EUR 17 mn representing default in-
terest were collected in 2021 and 2022, respectively.
On October 2, 2020, OMV Aktiengesellschaft, as party
in the privatization agreement, initiated arbitration pro-
ceedings against the Romanian Ministry of Environ-
ment in accordance with the International Chamber of
Commerce Rules, regarding certain claims unpaid by
the Romanian Ministry of Environment in relation to
well decommissioning and environmental restoration
obligations amounting to EUR 31 mn. On August 30,
2022, the Arbitral Tribunal issued the Final Award on
the arbitration and requested the Ministry of Environ-
ment to reimburse to OMV Petrom the amount of
EUR 31 mn and related interest. In October 2022, the
Ministry of Environment challenged the award in front
of Paris Court of Appeal, procedure which is ongoing
as of December 31, 2022.
Furthermore, in Q4/22, OMV Aktiengesellschaft, as
party in the privatization agreement, initiated two other
arbitration proceedings against the Romanian Ministry
of Environment, in accordance with the International
Chamber of Commerce Rules, regarding certain claims
unpaid by this ministry in relation to well decommission-
ing and environmental remediation works amounting to
EUR 47 mn. As of December 31, 2022, the arbitration
procedure is ongoing.
Moreover, in 2022 this position included receivables re-
lated to insurance proceeds of around EUR 200 mn
with regards to the incident at the crude distillation unit
at the Schwechat refinery in June 2022.
Additionally, other sundry financial assets contained re-
ceivables towards partners in the Exploration & Produc-
tion business as well as seller participation notes and
complementary notes in Carnuntum DAC (see Note 36
– Unconsolidated structured entities – for further de-
tails).
167
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Equity investments measured at FVOCI
In EUR mn
Investment
Fair value
2022
Fair value
adjustment
through
OCI
Dividend
recognized
as income
Fair value
2021
Fair value
adjustment
through
OCI
Dividend
recognized
as income
APK Pensionskasse AG
Wiener Börse AG
FSH Flughafen-Schwechat-Hydranten-Gesell-
schaft GmbH & Co OG
WAV Wärme Austria VertriebsgmbH
Bockatech Ltd.
Oil Insurance Limited
Other
Equity investments measured at FVOCI
2
7
2
2
3
0
2
19
(0)
3
—
—
—
—
—
2
0
1
0
0
—
4
0
6
2
4
2
2
3
0
2
16
(0)
(0)
—
—
—
—
—
(1)
0
1
—
0
—
4
4
9
Probability of default
Risk Class 1
Risk Class 2
Risk Class 3
Risk Class 41
Risk Class 51
Risk Class 6
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
2022
2021
0.13%
0.44%
1.18%
8.52%
29.54%
100.00%
0.07%
0.24%
1.21%
10.37%
10.37%
100.00%
1 In 2022 the previous Risk Class 4 with the equivalent external ratings B+, B, B- and CCC/C was split into two different risk classes (Risk Class 4 and 5) in order
to provide a more transparent view on the credit risk position of the group. Former Risk Class 5 became the new Risk Class 6.
For further details on the credit risk management see
Note 28 – Risk Management.
Impairments 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
Changes in consolidated group
December 31
Net remeasurement of expected credit losses was
mainly related to the trade receivables from contracts
with customers.
168
2022
2021
51
(4)
23
0
(4)
(1)
65
61
(2)
(6)
(0)
(1)
—
51
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Credit quality of trade receivables
In EUR mn
Risk Class 1
Risk Class 2
Risk Class 3
Risk Class 4
Risk Class 5
Risk Class 6
Total gross carrying amount
Expected credit loss
Total
2022
1,457
1,239
927
333
153
42
4,151
(65)
4,086
Impairments of other financial assets at amortized cost
In EUR mn
12-month ECL
Lifetime ECL not
credit impaired
Lifetime ECL cre-
dit impaired
January 1
Amounts written off
Net remeasurement of expected credit losses1
Currency translation differences
December 312
January 1
Amounts written off
Net remeasurement of expected credit losses
Currency translation differences
Reclassification to assets held for sale
December 312
9
0
2
0
10
7
(0)
2
0
—
9
2022
31
—
12
2
44
2021
26
—
0
4
—
31
211
(5)
1,100
4
1,311
202
(2)
13
1
(2)
211
2021
1,653
1,133
944
375
163
43
4,311
(51)
4,260
Total
251
(5)
1,114
6
1,365
235
(2)
15
5
(2)
251
1 “Lifetime ECL credit impaired” includes fully impaired gross carrying amount of loan receivables including accrued interests related to the financing agreements
for the Nord Stream 2 pipeline project in amount of EUR 1.1 bn.
2 “12-month ECL” included an amount of EUR 1 mn (2021: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 9 mn (2021: EUR 10 mn) related to
expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
169
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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 52
Risk Class 6
Total gross carrying
amount
Expected credit loss3
Total
1,014
702
826
4
35
0
2,580
(10)
2,570
2022
86
—
—
—
—
—
86
80
9
2
—
1,112
109
1,180
710
827
4
1,147
109
1,311
3,977
(44)
42
(1,311)
—
(1,365)
2,612
2,069
1,464
209
9
5
0
3,756
(9)
3,747
2021
65
—
—
—
—
—
65
(31)
34
68
10
2
—
22
111
211
(211)
—
Total
2,202
1,473
210
9
27
111
4,032
(251)
3,781
1 “12-month ECL” included an amount of EUR 327 mn (2021: EUR 373 mn) and “Lifetime ECL credit impaired” an amount of EUR 9 mn (2021: EUR 10 mn) re-
lated to expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
2 “Lifetime ECL credit impaired” includes fully impaired gross carrying amount of loan receivables including accrued interests related to the financing agreements
for the Nord Stream 2 pipeline project in amount of EUR 1.1 bn.
3 “12-month ECL” included an amount of EUR 1 mn (2021: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 9 mn (2021: EUR 10 mn) related to
expenditure recoverable from Romanian State, which are outside the scope of IFRS 9.
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.
2022
2021
Short-term
Long-term
Short-term
Long-term
84
72
194
395
—
223
36
194
1,198
15
14
16
40
8
—
—
22
115
60
83
107
185
8
58
99
21
621
18
14
22
39
8
—
—
12
113
The increase in ‘Other non-financial assets’ is driven by
the receivables from Romanian authorities in relation to
the compensations for the natural gas sales at cap
prices to clients allocated to the Company as Supplier
of Last Resort and for electricity sales at capped prices,
as well as receivables in relation with the subsidies
supporting half of the 0.50 RON per liter voluntary price
reduction for the sale of diesel and gasoline in Roma-
nia.
170
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
20 Assets and liabilities held for sale
Assets and liabilities held for sale
In EUR mn
Nitrogen
business
unit
Rosier
Total
OMV
retail
business
Slovenia
Other
Total
C&M
R&M
E&P
C&O
OMV
Group
2022
3
0
662
121
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 decommis-
sioning and restoration
obligations
Other liabilities incl. provi-
sions and deferred taxes
Non-current liabilities
Trade payables
Other liabilities incl.
provisions
Current liabilities
Total liabilities
3
658
6
27
694
275
150
151
12
588
1,282
49
7
0
4
—
1
5
33
8
2
4
47
52
—
1
6
28
699
308
159
153
16
635
1,334
49
8
11
—
11
37
105
229
124
353
458
1
1
9
3
12
13
38
106
238
127
365
471
—
0
121
46
63
6
5
120
241
0
27
0
1
29
22
43
65
94
0
13
—
4
17
1
—
—
—
1
19
—
—
1
—
1
—
1
1
2
0
134
—
4
139
48
63
6
5
121
260
0
27
1
1
30
22
44
66
96
—
20
—
—
20
16
0
30
14
59
79
14
—
—
20
34
12
13
25
59
—
3
3
819
—
—
3
—
—
—
—
—
3
—
—
—
—
—
—
—
—
—
6
32
860
371
221
189
35
816
1,676
63
35
13
59
170
272
184
456
626
171
OMV ANNUAL REPORT 2022 / 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
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
Nitrogen
business
unit
OMV
retail
business
Germany
OMV
retail
business
Slovenia
Total
C&M
R&M
E&P
C&O
OMV
Group
2021
1
260
6
27
294
221
222
62
11
516
810
62
5
12
41
120
236
78
314
434
10
247
—
44
301
24
43
0
0
67
368
0
114
23
52
189
40
28
67
257
0
119
—
0
119
52
51
1
2
106
225
0
35
—
2
37
39
47
86
123
10
366
—
44
420
76
93
1
2
173
593
0
149
23
54
227
79
75
153
380
27
32
—
—
58
10
1
2
1
14
73
—
—
85
—
85
10
—
10
95
—
3
—
—
3
—
—
—
—
—
3
—
—
—
—
—
—
—
—
—
38
661
6
71
776
308
316
65
14
703
1,479
63
154
120
95
432
325
153
477
909
Chemicals & Materials
As of December 31, 2022, assets held for sale and lia-
bilities associated with assets held for sale in Chemi-
cals & Materials were related mostly to the nitrogen
business 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”) was not considered as
part of the potential sales process at that time and its
assets and related liabilities do not belong to the Bore-
alis nitrogen business unit held for sale.
The period to complete the sale was extended by
events and circumstances beyond OMV’s control. The
developments resulting from the war in Ukraine and re-
lated sanctions caused Borealis to decline a binding of-
fer received from EuroChem in February 2022 and to
consider other options. On July 28, 2022, Borealis ac-
cepted a new binding offer from AGROFERT, a.s.
which was received on June 2, 2022, after the manda-
tory information and consultation procedures with em-
ployee representatives were finalized. On the same
date, both companies entered into an agreement to sell
and transfer all shares in the legal entities included in
the scope of the transaction. The transaction itself re-
mains subject to certain closing conditions and regula-
tory approvals.
In 2022 a write-up was recognized based on the offer
received from AGROFERT, a.s. while in 2021 impair-
ment loss was recognized based on the binding offer
from EuroChem. For further details see Note 7 – De-
preciation, amortization, impairments and write-ups.
OMV determines the net position of emission certifi-
cates for the Group. As of December 31, 2022, an obli-
gation to surrender 2,133,124 emission certificates
172
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
(market value: EUR 179 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.
As of December 31, 2022, the remaining part of assets
held for sale and liabilites associated with asset held for
sale in Chemicals & Materials was related to Rosier. On
September 26, 2022, a binding agreement for the ac-
quisition of Borealis’ shares in Rosier S.A. was signed
with the YILDIRIM Group’s YILFERT Holding. This led
to the reclassification of Rosier to assets and liabilities
held for sale without having material impact on the in-
come statement at that time.
Refining & Marketing
On May 1, 2022, OMV finalized the sale of the filling
station business in Germany to EG Group (285 filling
stations in southern Germany, with a focus on Bavaria
and Baden-Württemberg). For further details regarding
the effects of the sale please refer to Note 6 – Other
operating income and net income from equity ac-
counted investments.
As of December 31, 2022, assets held for sale and lia-
bilities associated with assets held for sale in Refining
& Marketing related mostly to OMV retail business in
Slovenia.
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 2023.
Other assets and liabilities held for sale in Refining &
Marketing related mostly to 17 Avanti filling stations in
Germany. During 2022, OMV decided to sell the filling
stations in Germany held under “Avanti” brand which
led to the reclassification to assets and liabilities to held
for sale. This reclassification did not have an impact on
the income statement. Closing of the transaction is ex-
pected in 2023.
Exploration & Production
As of December 31, 2022, assets held for sale and lia-
bilities associated with assets held for sale in Explora-
tion & Production were entirely related to Yemen oper-
ating entities. During 2022, OMV decided to sell its rel-
evant operating entities in Yemen and signed the sales
agreement, which led to the reclassification to assets
and liabilities to held for sale. As of the date of reclassi-
fication, the result of the measurement at fair value less
cost of disposal has led to an impairment (see Note 7 –
Depreciation, amortization, impairments and write-ups).
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. After ongoing engagement with Jadestone En-
ergy as a potential buyer, a mutual decision has been
made to no longer pursue the transaction. Therefore,
assets and liabilites related to Maari field were reclassi-
fied back from the assets held for sale and liabilities as-
sociated with asset held for sale.
173
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
21 Equity of stockholders of the parent
Capital stock
The capital stock of OMV Aktiengesellschaft consists
of 327,272,727 (2021: 327,272,727) fully paid no par
value shares with a total nominal value of
EUR 327,272,727 (2021: 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 2022, 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.
174
OMV ANNUAL REPORT 2022 / 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,
2022, do not have a scheduled maturity date and they
may be redeemed at the option of OMV under certain
circumstances. OMV has, in particular, the right to re-
pay the hybrid notes at certain call dates. Any accrued
unpaid interest becomes payable when the notes are
redeemed. 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 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.
175
OMV ANNUAL REPORT 2022 / 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
2022
Tax
(expense)
benefit1
603
40
(2)
(3)
263
(35)
2
(67)
1
8
Net-of-tax
(expense)
income
Before-tax
(expense)
income
2021
Tax
(expense)
benefit1
Net-of-tax
(expense)
income
602
37
228
3
946
210
53
(1)
13
(54)
11
0
959
155
64
(0)
(58)
17
(3)
14
62
n.a.
6
02
n.a.
0
847
(30)
817
1,225
(33)
1,192
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 2022, the Executive Board of
OMV Aktiengesellschaft proposed a regular dividend of
EUR 2.80 per eligible share, as well as a special divi-
dend of EUR 2.25 per eligible share, which are subject
to confirmation by the Annual General Meeting in 2023.
The dividend for 2021 was paid in June 2022 and
amounted to EUR 752 mn (EUR 2.30 per share). In
2021, dividend payment amounted to EUR 605 mn
(EUR 1.85 per share). The interest paid for hybrid
bonds in 2022 amounted to EUR 94 mn (2021:
EUR 94 mn).
Number of shares
297,846
(36,520)
261,326
(59,652)
201,674
in
EUR mn
3.3
(0.4)
2.9
(0.7)
2.2
Treasury shares
January 1, 2021
Disposals
December 31, 2021
Disposals
December 31, 2022
176
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Development of number of shares in issue
January 1, 2021
Used for share-based compensations
December 31, 2021
Number of shares
Treasury shares
Shares in issue
327,272,727
—
327,272,727
297,846
(36,520)
261,326
326,974,881
36,520
327,011,401
Used for share-based compensations
December 31, 2022
—
327,272,727
(59,652)
201,674
59,652
327,071,053
22 Non-controlling interests
Subgroups with material NCI
In EUR mn
Subgroups
OMV Petrom Group
Borealis Group
SapuraOMV Group
Other subsidiaries
OMV Group
2022
Net income
allocated to
NCI
Accumulated
NCI
1,023
424
21
1
1,470
3,980
3,212
274
13
7,478
% NCI
49%
25%
50%
n.a.
n.a.
2021
Net income
allocated to
NCI
Accumulated
NCI
294
307
(8)
24
617
3,364
2,876
238
13
6,491
% NCI
49%
25%
50%
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). On November 3, 2022,
OMV Petrom SA completed the share capital increase,
as a result the non-controlling interests in OMV Petrom
Group increased by EUR 39 mn. The cash received
from third party shareholders amounted to EUR 30 mn
and is shown in the consolidated Statement of Cash
flows in the line item “Increase in non-controlling inter-
est”.
Borealis Group is one of the world’s leading providers
of advanced and circular polyolefin solutions and a Eu-
ropean market leader in base chemicals, fertilizers, and
plastics recycling. The majority 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.
177
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
The following tables summarize the financial infor-
mation of the subgroups with material non-controlling
interests:
Statement of comprehensive income of subgroups with material NCI1
In EUR mn
Sales revenue
Net income for the year
Total comprehensive income
Attributable to NCI
Dividends paid to NCI
2022
2021
OMV Petrom
Group
Borealis Group
OMV Petrom
Group
Borealis Group
12,440
2,089
2,079
1,019
436
11,686
1,690
1,941
488
175
5,285
582
596
292
172
9,862
1,256
1,882
463
38
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 financial position as of December 31 of subgroups with material NCI1
In EUR mn
Non-current assets
Current assets
Assets held for sale
Non-current liabilities
Current liabilities
Liabilities associated with assets held for sale
2022
2021
OMV Petrom
Group
Borealis Group
OMV Petrom
Group
Borealis Group
6,509
5,109
3
1,647
1,791
—
11,043
5,177
1,334
2,782
1,472
471
6,598
3,496
3
1,528
1,655
—
10,933
4,655
810
2,553
1,892
434
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 flows of subgroups with material NCI1
In EUR mn
2022
2021
OMV Petrom
Group
Borealis Group
OMV Petrom
Group
Borealis Group
Operating cash flow
Investing cash flow
Financing cash flow
Net increase /(decrease) in cash and cash equivalents
2,299
(629)
(872)
795
1,572
(58)
(824)
691
1,422
(458)
(389)
577
2,916
(1,086)
(355)
1,475
1 Figures refer to subgroup level, i.e. including at-equity consolidation and after elimination of intercompany transactions and balances within the subgroup.
178
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
23 Provisions
Provisions
In EUR mn
January 1, 2022
Currency translation differences
Changes in consolidated group
Usage and releases
Payments to funds
Allocations
Transfers
Reclassified to liabilities associated with assets
held for sale
December 31, 2022
thereof short-term as of December 31, 2022
thereof short-term as of January 1, 2022
Pensions and
similar
obligations
Decom-
missioning and
restoration
obligations Other provisions
1,299
3,756
1,003
(10)
—
(314)
(18)
55
(10)
(5)
997
—
—
0
—
(449)
—
400
(0)
89
3,796
82
72
0
(1)
(698)
—
582
10
(13)
882
505
360
Total
6,057
(9)
(1)
(1,461)
(18)
1,037
(0)
71
5,676
587
432
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 country-specific external
pension funds. Pension commitments were calculated
based on country- and plan-specific assumptions. Re-
fer to Note 2 – Accounting policies, judgments and esti-
mates – for more details.
Pensions and similar obligations
In EUR mn
Present value of funded pension obligations
Fair value of plan assets
Provision for funded pension obligations
Present value of unfunded pension obligations
Present value of obligations for severance and other plans
Provision for pensions, severance and other plans
Present value of obligations for other long-term benefits
Total provision for pensions and similar obligations
2022
832
(526)
305
470
135
910
87
997
2021
1,053
(595)
458
586
150
1,194
105
1,299
179
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Present value of obligations
In EUR mn
2022
2021
Present value of obligation as of January 1
Current service cost
Past service cost
Interest cost
Amounts recognised in the income statement
Adjustments due to changes in demographic assumptions
Adjustments due to changes in financial assumptions
Experience adjustments
Total remeasurements of the period (OCI)
Actual benefit payments
Currency translation differences
Reclassification to liabilities associated
with assets held for sale
Present value of obligation as of December 31
1 Mainly related to outsourcing activities in Romania
Fair value of plan assets
In EUR mn
Fair value of plan assets as of January 1
Interest income
Return on plan assets (OCI)
Actual benefit payments
Actual employer contributions
Currency translation differences
Reclassification to liabilities associated with assets held for sale
Fair value of plan assets as of December 31
Pensions
1,639
24
—
18
42
(0)
(334)
56
(279)
(91)
(10)
—
Severance and
other plans
150
10
—
2
12
1
(16)
3
(12)
(10)
0
(5)
Pensions
1,722
Severance and
other plans
197
26
—
15
41
(1)
1
(9)
(9)
(85)
(2)
(27)
6
(2)1
2
5
—
—
(3)
(3)
(14)
(1)
(34)
150
1,302
135
1,639
2022
2021
595
6
(39)
(54)
18
(0)
—
526
589
5
40
(52)
22
1
(10)
595
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.
Expected contributions to post-employment benefit
plans for the year 2023 are EUR 23 mn. Moreover, in
2023, defined benefit related contributions related to
2022 to external pension funds of EUR 55 mn are esti-
mated.
180
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Provisions and expenses
In EUR mn
Provision as of January 1
Current service cost
Past service cost
Net interest cost
Amounts recognised in the income statement
Adjustments due to changes in demographic assumptions
Adjustments due to changes in financial assumptions
Experience adjustments
Return on plan assets
Total remeasurements of the period (OCI)
Actual benefit payments
Actual employer contributions
Currency translation differences
Reclassification to liabilities associated
with assets held for sale
Provision as of December 31
1 Mainly related to outsourcing activities in Romania
2022
2021
Pensions Severance and
other plans
Pensions Severance and
other plans
1,044
150
1,135
197
24
—
12
36
(0)
(334)
56
39
(240)
(37)
(18)
(10)
—
10
—
2
12
1
(16)
3
—
(12)
(10)
—
0
(5)
26
—
10
36
(1)
1
(9)
(40)
(50)
(33)
(22)
(3)
(20)
6
(2)1
2
5
—
(3)
—
—
(3)
(14)
—
(1)
(34)
775
135
1,044
150
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
2022
2021
Pensions Severance and
other plans
Pensions Severance and
other plans
3.20-5.40%
3.40-5.00%
2.25-3.50%
3.50-8.00%
3.40-4.90%
—
1.00-2.60%
2.50-5.00%
1.70-2.25%
0.80-5.22%
2.50-3.50%
—
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 and other plans
Capital market interest rate
Future increases in salaries Future increases in pensions
+0.50%
(5.25)%
(4.21)%
(0.50)%
5.77%
4.56%
+0.25%
0.86%
2.06%
(0.25)%
(0.81)%
(1.97)%
+0.25%
2.56%
—
(0.25)%
(2.44)%
—
2022
181
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Sensitivities - absolute change
In EUR mn
Capital market interest rate
Future increases in salaries Future increases in pensions
+0.50%
(0.50)%
+0.25%
(0.25)%
+0.25%
(0.25)%
2022
Pensions
Severance and other plans
(69)
(7)
76
7
11
3
(11)
(3)
34
—
(32)
—
Duration profiles and average duration of defined benefit obligations as of December 31
In EUR mn
Pensions
Severance and 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
2022
Duration profiles
1–5 years
6–10 years
>10 years
363
47
338
47
599
40
Duration
in years
11
9
2022
2021
15%
29%
5%
36%
15%
100%
18%
35%
4%
30%
12%
100%
Provisions for decommissioning and restoration
obligations
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.
182
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Provisions for decommissioning and restoration obligations
In EUR mn
January 1, 2022
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, 2022
thereof short-term as of December 31, 2022
thereof short-term as of January 1, 2022
Carrying
amount
3,756
53
198
(332)
150
89
(117)
3,796
82
72
The reduction arising from revisions in estimates
was mainly driven by increased real interest rates for
USD and EUR compared to 2021.
The decommissioning provision related to OMV’s share
in the Maari field in New Zealand was reclassified back
from liabilities associated with assets held for sale.
For details see Note 20 – Assets and liabilities held for
sale.
Main assumptions for calculating decommissioning and restoration obligations as of December 311
Eurozone (EUR)
New Zealand (NZD)
Norway (NOK)
Romania (RON)
United States (USD)
2022
Discount rate
Inflation rate
2.36-2.55%
4.53-4.73%
3.09-3.13%
8.35%
3.88-4.15%
2.35%
2.61%
2.31%
4.56%
2.51%
Real
discount rate
0.01-0.20%
1.92-2.13%
0.78-0.82%
3.79%
1.37-1.64%
1 Based on the main currencies of the underlying obligations. Multiple discount rates per currency arise due to different maturities.
Estimation of maturities and cash outflows of decommissioning and restoration obligations1
In EUR mn
≤1 year
1 – 10 years
11 – 20 years
21 – 30 years
>30 years
Total
2022
Carrying amount Undiscounted real costs
86
1,320
5,174
1,776
747
9,102
82
899
2,138
481
196
3,796
1 Mainly related to decommissioning and restoration obligations in Exploration & Production business segment
A decrease of 1 percentage point in the real discount
rates used to calculate the decommissioning provi-
sions, would lead to an additional provision of
EUR 612 mn, in an opposite case provision would de-
crease by EUR 504 mn.
183
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
The provision for decommissioning and restoration
costs included obligations in respect of OMV
Petrom SA amounting to EUR 1,397 mn
(2021: EUR 1,260 mn). Part of the obligations is to be
recovered from the Romanian State in accordance with
the privatization agreement. As of December 31, 2022,
OMV Petrom SA held receivables from the Romanian
state related to decommissioning and restoration costs
amounting to EUR 326 mn (2021:EUR 352 mn).
Other provisions
Other provisions
In EUR mn
Environmental costs
Onerous contracts
Other personnel provisions
Emissions certificates
Residual other provisions
Other provisions
2022
2021
Short-term
Long-term
Short-term
Long-term
11
64
149
35
247
505
77
176
18
—
105
377
14
24
148
113
60
360
77
431
16
—
120
643
As at December 31, 2022, the provision for environ-
mental costs included EUR 52 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, 2022, was EUR 32 mn
(2021: EUR 390 mn). This steep decrease in provision
reflects the change in LNG market condititions with
higher realized LNG volumes and margins experienced
in 2022, which is expected to persist to a certain extent
also in the near future. 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 2.53% (2021: 4.51%).
As per end of 2022, the provision for the related non-
cancellable transportation commitments of OMV Gas
Marketing & Trading GmbH amounted to EUR 188 mn
(2021: EUR 65 mn). The increase in provision is mainly
driven by additional transport capacities which were
booked in order to secure alternative supply routes for
Austria. The calculation is based on the difference be-
tween the fixed costs for using the capacities and the
net profit from usage expected to be generated by us-
ing the capacities. The discount rate applied is 2.53%
(2021: 4.51%). Besides the discount rate, the key as-
sumptions are the gas prices at the relevant gas hubs
which are based on forward rates or on management’s
best estimates of future prices.
Other personnel provisions included short-term provi-
sions related to personnel reduction schemes of
EUR 13 mn (2021: EUR 17 mn).The remaining amount
was mainly related to boni provisions.
Residual other provisions increased in 2022 mainly in
connection with other risks assessed by the Group in
the area of gas and power taxation in Romania.
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
184
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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.
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 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
In 2023 OMV expects to surrender 9,859 thousand
emissions certificates from European Trading Scheme,
3,531 thousand BEHG certificates and 2,292 thousand
NZ certificates for (not yet externally verified) emis-
sions, out of which 2,187 thousand emissions certifi-
cates are expected to be transferred to OMV from cus-
tomers in New Zealand.
Emissions certificates
Number of certificates, in thousands
Certificates held as of January 1
Free allocation for the year
Certificates surrendered1
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
11,731
7,742
(10,792)
4,889
—
13,569
2022
NZ
Trading
Scheme
252
—
(2,567)
293
3,924
1,901
DE
Trading
Scheme
3,617
—
(3,833)
3,398
—
3,183
European
Trading
Scheme
12,210
5,891
(10,795)
4,424
—
11,731
2021
NZ
Trading
Scheme
112
—
(2,884)
1,150
1,873
252
DE
Trading
Scheme
—
—
—
3,617
—
3,617
185
OMV ANNUAL REPORT 2022 / 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
1,290
128
155
5,259
2,172
1,527
10,531
2022
Long-
term
6,030
1,359
1,322
—
489
124
9,325
Total
7,320
1,487
1,476
5,259
2,662
1,652
19,856
Short-
term
2021
Long-
term
Total
795
350
131
4,860
4,367
1,440
7,275
1,415
887
—
587
118
11,943 10,282
8,070
1,765
1,018
4,860
4,955
1,558
22,225
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.
Lease liabilities increased mainly due to the new leas-
ing contracts for storage infrastructure related to the
propane dehydrogenation plant (PDH) in Kallo, Bel-
gium. For further details on lease contracts please refer
to Note 15 – Property, plant and equipment.
For further details on cash and non-cash effective
changes in bonds, other interest-bearing debts as well
as lease liabilities please refer to Note 26 – Statement
of cash flows.
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.
186
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Bonds
International corporate bonds
In EUR mn
Nominal
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
International corporate bonds
Bonds and other interest-bearing debts
As at December 31, 2022, 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
2023/2022 (short-term component of long-term financing)
2024/2023
2025/2024
2026/2025
2027/2026
2028/2027 and subsequent years
Total for 2023/2022 onwards
Coupon
Repayment
2022
2021
Carrying
amount
December 31
Carrying
amount
December 31
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
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
—
749
500
504
498
315
996
752
506
499
748
758
496
7,320
2022
65
1,353
1,417
1,353
823
1,149
1,185
871
3,360
8,742
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
187
OMV ANNUAL REPORT 2022 / 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
Total
Variable rates2
EUR
USD
Other currencies
Total
Other short-term interest-bearing debts
EUR
USD
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
2022
2021
Weighted
average
interest rate
Weighted
average
interest rate
8,187
279
8,466
50
190
36
276
65
—
65
1.34%
4.24%
1.44%
3.13%
5.04%
0.45%
4.10%
0.07%
—
0.07%
8,959
312
9,271
77
194
38
310
1.45%
4.27%
1.54%
0.77%
1.24%
0.46%
1.02%
250
4
254
(0.22)%
—
(0.22)%
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
1,263
41
1,222
910
2,172
3,607
102
3,506
760
4,367
2022
353
4
349
137
489
2021
471
—
471
116
587
1,615
44
1,571
1,047
2,662
4,079
102
3,977
876
4,955
188
OMV ANNUAL REPORT 2022 / 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 liabilities1
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)
≤1 year
1 – 5
years >5 years
Total
2022
1,351
141
186
5,259
1,260
910
9,107
3,394
1,018
514
—
350
100
5,375
3,160
393
1,131
—
—
102
4,786
7,905
1,552
1,831
5,259
1,610
1,111
19,268
870
373
155
4,860
3,608
761
10,627
2021
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
1 Includes the book value of the financial guarantee issued by Borealis to Bayport Polymers LLC, allocated to ≤ 1year maturity; for further details on the guaran-
tees as well as the maximum exposure related to it please refer to Note 28 – Risk management.
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
Short-term
Long-term
Total
1,040
57
148
282
1,527
1,027
128
129
155
1,440
2022
0
14
79
32
124
2021
—
16
98
4
118
1,040
71
227
314
1,652
1,027
144
228
159
1,558
The increase in other sundry liabilities was mainly im-
pacted by non-financial liabilities related to oil product
exchange contracts concluded between OMV Group
and national stockholding companies in Germany and
Slovakia. For more details please refer to Note 28 –
Risk management.
189
OMV ANNUAL REPORT 2022 / 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
2022
228
(0)
2021
214
1
(126)
(80)
125
—
227
95
(1)
228
The contract liabilities consisted mainly of non-re-
fundable prepayments of storage fees received from
Erdöl-Lagergesellschaft m.b.H., Lannach on the basis
of long-term service contracts.
190
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
25 Deferred taxes
Deferred taxes
In EUR mn
Intangible assets
Property, plant and equipment
Inventories
Derivatives
Receivables and other assets
Deferred taxes reclassified to assets and liabilities associated
with assets 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 assets 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 assets 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 assets held for sale
Deferred taxes as per statement of financial
position
Deferred tax
assets total
Deferred tax
assets not
recognized
Deferred tax
assets
recognized
Deferred tax
liabilities
159
120
38
226
85
153
204
1,217
112
350
684
1,635
120
5,103
197
163
38
667
88
39
263
1,307
125
259
115
1,546
433
5,240
2022
—
3
—
—
20
135
89
14
—
0
—
816
—
1,076
159
117
38
226
65
18
116
1,203
112
350
684
819
120
4,027
244
2,564
56
683
297
52
107
0
32
16
—
—
54
4,105
(2,877)
(2,877)
1
35
1,150
1,194
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
191
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Deferred taxes were mainly related to different valua-
tion methods, differences in impairments, write-offs,
write-ups and depreciation and amortization as well as
different definition of costs.
Decrease in deferred tax liabilities (DTL) related to in-
tangible assets was mainly driven by deconsolidation of
JSC GAZPROM YRGM Development. For further de-
tails see Note 2 - Accounting policies, judgements and
estimates, section ‘Impact of Russia’s invasion of
Ukraine and related significant estimates and assump-
tions’.
Increase in deferred tax assets (DTA) related to tax im-
pairments was mainly drived by the impairment of in-
vestment in JSC GAZPROM YRGM Development. For
further details see Note 12 – Taxes on income and
profit.
In 2022 as well as in the previous year, a valuation al-
lowance for DTA for the Austrian tax group was recog-
nized. DTA recognized for the AT Tax Group as of De-
cember 31, 2022 reflects the expected utilization of de-
ductible temporary differences of balance sheet items
and tax losses carried forward based on the mid term
plan for the period 2023 - 2027. Limitation to the usage
of tax losses of 75%, as stipulated by the Austrian Cor-
porate Income Tax Act, was considered in the assess-
ment of the recoverable DTA within the planning pe-
riod. Remaining DTL after the planning period are
mainly expected to be offset with DTA from temporary
differences. Any remaining DTL after netting is as-
sumed to be offset with DTA from tax losses, therefore
the limitation to the usage of tax losses have not been
considered after the planning period. This is also sup-
ported by the fact that tax losses can be carried forward
for an unlimited period of time.
The overall net DTA position of tax jurisdictions which
suffered a tax loss either in current or preceding year
amounted to EUR 682 mn, thereof EUR 522 mn is at-
tributable to the Austrian tax group (2021:
EUR 901 mn, thereof Austrian tax group EUR 658 mn).
As of December 31, 2022, OMV recognized tax losses
carryforward of EUR 6,758 mn before allowances
(2021: EUR 5,839 mn), thereof EUR 3,460 mn (2021:
EUR 3,202 mn) are considered recoverable for calcula-
tion of deferred taxes.
Eligibility of losses for carryforward expires as follows:
Tax losses carryforward1
In EUR mn
2022
2023
2024
2025
2026
2027
After 2027/2026
Unlimited
Tax losses carryforward
2022
2021
Base
amount
(before allo-
wances)
Base
amount
(before allo-
wances)
thereof not
recognized
thereof not
recognized
—
18
2
11
3
3
55
6,666
6,758
—
18
2
11
3
3
0
3,261
3,298
30
18
2
11
3
0
0
5,774
5,839
30
18
2
11
3
0
0
2,573
2,637
1 Tax losses carryforward related to disposal groups reclassified to held for sale are excluded.
The majority of tax losses carryforward not recog-
nized referred to the Austrian Tax Group and France.
As of December 31, 2022, 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 10,123 mn (2021: EUR 7,475 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.
192
OMV ANNUAL REPORT 2022 / 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
2022
808
7,316
8,124
2021
997
4,067
5,064
Significant non-cash items
The line “Other changes” of the consolidated statement
of cash flows for 2022 included non-cash effects re-
lated to the impairment of the Nord Stream 2 loan.
Moreover the line contained impacts from the deconsol-
idation of JSC GAZPROM YRGM Development
(YRGM) and OJSC Severneftegazprom (SNGP) as well
as the fair value changes related to the investments in
YRGM and SNGP and the contractual position towards
Gazprom from the redetermination of the reserves of
the Yuzhno Russkoye gas field. For further details
please refer to Note 2 – Accounting policies, judge-
ments and estimates, section ‘Impact of Russia’s inva-
sion of Ukraine and related significant estimates and
assumptions’.
In 2022 non-cash additions to fixed assets included
mainly effects from new lease contracts as well as the
reassessment of decommissioning and restoration obli-
gations.
Cash flow from investing activities
For details about the cash flow effect from divestments
of subsidiaries and businesses, the loss of control of
YRGM and the Initial Public Offering of Borouge PLC
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 a bond with a nominal value of
EUR 750 mn.
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
2022
Other
interest-
bearing
debts
1,765
Lease
liabilities
1,191
0
(114)
(184)
(298)
31
—
(11)
—
20
—
(183)
—
(183)
2
(123)
1
6361
515
Bonds
8,070
—
(750)
—
(750)
—
—
0
—
0
Total
11,026
0
(1,047)
(184)
(1,230)
33
(123)
(11)
636
535
December 31
7,320
1,487
1,524
10,331
1 Mainly related to new lease agreements
193
OMV ANNUAL REPORT 2022 / 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
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
The total cash outflow related to lease liabilities
amounted to EUR 212 mn (2021: EUR 199 mn).
Financing commitments provided to related parties are
detailed in Note 35 – Related parties.
As of December 31, 2022, the Group had available
EUR 5,291 mn of undrawn committed borrowing facili-
ties that can be used for future activities without any re-
strictions (December 31, 2021: EUR 4,415 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, there is either no
present obligation and/or the outflow is remote and/or
they will not materially affect the Group’s financial posi-
tion.
OMV entered into guarantees as part of the ordinary
course of the group’s business, mainly under credit fa-
cilities granted by banks, without cash collateral. No
material losses are likely to arise from such. Further in-
formation on financial guarantees are included in Note
28 – Risk Management.
194
OMV holds a 10% share in Pearl Petroleum Company
Ltd. (Pearl) following an acquisition through a Share
Sales Agreement of May 2009 (SSA). OMV was faced
with a pending arbitration proceeding since 2020 (un-
der the London Court of International Arbitration (LCIA)
rules) launched by Crescent and Dana in respect of
certain reserve-based contingent payments and alleged
unjustified enrichment based on the SSA. In a final
binding arbitral award of February 2023 the LCIA tribu-
nal ruled in favor of OMV rejecting those claims and
stating that there is no entitlement of Dana and Cres-
cent of a contingent payment by OMV.
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
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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
and 2022, 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 under-
taking for the financial year prior to the sanctioning de-
cision. 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, 2022, 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.
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 cap-
ital market confidence, as well as to provide a sustaina-
ble financial foundation for the future operational devel-
opment 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 leverage ratio (defined
as net debt including leases / (equity + net debt includ-
ing leases) of below 30%.
Capital Management – key performance measures
In EUR mn (unless otherwise stated)
Bonds
Lease liabilities1
Other interest-bearing debts1
Debt including leases
Cash and cash equivalents1
Net Debt including leases
Equity
Leverage ratio including leases in %
1 Including items that were reclassified to assets or liabilities held for sale
2022
2021
7,320
1,524
1,487
10,331
8,070
1,191
1,765
11,026
8,124
2,207
5,064
5,962
26,628
21,996
8
21
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 to 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, 2022, the average weighted ma-
turity of the Group’s debt portfolio (excluding lease lia-
bilities) has been 4.6 years (as of December 31, 2021:
5.1 years).
OMV Group’s operational liquidity management is
mainly handled via cash pooling systems, which enable
195
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
optimum use of existing cash and liquidity reserves to
the benefit of every individual member of cash pooling
system and the Group as a whole.
Details of OMV Group’s financial liabilities are shown in
Note 24 – Liabilities.
Financial Guarantee Contracts
On April 19, 2022, Bayport Polymers LLC, which is ac-
counted for using the equity method, partially re-paid
the loan to the Group in the amount of EUR 602 mn.
The repayment was financed from the two tranches of
senior notes in the amount of EUR 324 mn and
EUR 278 mn, which mature in 2027 and 2032, respec-
tively. Senior notes issued by Bayport Polymers LLC
are fully guaranteed by Borealis AG. For further details
see chapter ‘Credit Risk Management’.
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.
For the purpose of mitigating market price risks, the
Group enters into derivative financial instruments such
as OTC swaps, options, futures and forwards.
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 premi-
ums on purchased options are payable when the con-
tract is concluded; where options are exercised, pay-
ment of the difference between strike price and aver-
age market price for the period takes place at contract
expiration.
Commodity price risk management 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 ac-
tivities (marketing margin, inventories up to a defined
threshold) and producing power (spark spreads) in ad-
dition to proprietary trading positions.
Limited proprietary trading activities may be performed
for the purpose of creating market access within the oil,
power and gas markets up to a defined threshold.
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 mostly 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
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.
196
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Nominal and fair value of open derivative financial instruments
In EUR mn
2022
Fair
value
assets
Fair
value
liabilities Nominal
2021
Fair
value
assets
Fair
value
liabilities
Nominal
Commodity price risk
Oil incl. oil products
Gas
Power
Commodity hedges (designated in hedge relation-
ship)1
1,337
10
351
47
—
320
(35)
(3)
(2)
536
101
252
20
1
377
1,697
367
(41)
889
398
(35)
(57)
(1)
(93)
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
SEK
Other
Foreign currency hedges (valued at fair value
through profit or loss)
7,808
17,730
779
220
5
2,365
282
209
(22)
5,233
(1,374) 32,640
849
285
(133)
(2)
2
3,586
260
364
(50)
(3,418)
(492)
(0)
26,537
2,862
(1,531) 39,008
4,213
(3,960)
266
157
423
1,207
2,493
8
26
238
3,972
7
—
7
4
1
—
0
1
5
(0)
(4)
183
161
(4)
344
(10)
(26)
(0)
(0)
(3)
1,685
1,163
—
—
169
(39)
3,017
—
0
0
3
6
—
—
0
9
(6)
(2)
(8)
(5)
(11)
—
—
(1)
(17)
Interest rate risk
Interest rate hedges (designated in hedge relationship)1
103
6
—
109
—
(1)
1 Including ineffective part of hedges designated in a hedging relationship
2 Includes derivatives for European Emission Allowances
From 2022 onwards, the amounts reclassified from
the cash flow hedge reserve to the income state-
ment related to cash flow hedges of power and gas
used in production were shown in line item ‘Produc-
tion and operating expenses’.
Corresponding amounts in 2021 were included in
line item ‘Purchases (net of inventory variation)’. Re-
statements according to IAS 8.42 compared to the
presentation in the previous years were not made
due to immateriality of amounts.
197
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
The Group’s hedging reserve disclosed in the Con-
solidated Statement of Changes in Equity relates to
the following hedging instruments:
Cash flow hedging – Impact of hedge accounting
In EUR mn
Cash flow hedge reserve as of
January 1 (net of tax)
Gains/(losses) of the period
recognized in OCI
Amounts reclassified to the income statement
Amounts reclassified to balance 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 income statement
Amounts reclassified to balance sheet
Tax effects
Cash flow hedge reserve as
of December 31 (net of tax)
Hedge ineffectiveness recognized in the income statement
(1)
Hedge ineffectiveness recognized in the income statement
1
(10)
—
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
Amounts reclassified to the income statement
Tax effects
Reserve as of December 31 (net of tax)
1 Included in currency translation differences within other comprehensive income
198
Forecast
purchases
Forecast
sales
Foreign cur-
rency, other
Interest rate
Total
Commodity price risk
Foreign
currency
risk
2022
Interest
rate risk
243
(9)
(6)
2
230
360
(422)
57
8
245
(40)
63
—
(5)
8
1
(16)
21
6
(3)
3
—
2021
7
—
—
(2)
7
—
310
(338)
63
(2)
264
(1)
26
31
8
0
65
531
(237)
(5)
(72)
(115)
65
—
11
(14)
(3)
0
4
243
(9)
(6)
2
—
—
(0)
2
—
403
(176)
(5)
(57)
230
(9)
Foreign currency risk
2022
(5)
(13)
2
3
(13)
2021
7
(16)
—
4
(5)
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
At December 31, 2022 (December 31, 2021: nil), the
Group held the following items designated in a fair
value hedge relationship:
Impact of fair value hedge accounting on the income statement and statement of financial positions
In EUR mn
Hedged Item
Carrying amount
Liabilities
Cumulative amount
of fair value hedge
adjustment in-
cluded in the carry-
ing amount of the
hedged item
Effective
gains(losses) of the
period recognized
in the income
statement
Line item in the
statement of finan-
cial positions
Non-financial liability
132
2022
2
(6)
Other liabilities
At December 31, 2022 and December 31, 2021, the
Group held the following cash flow, fair value and net
investment hedging relationships. The table shows the
profile of the timing (maturity) of the nominal amount of
the hedging instruments.
Impact of hedge accounting on the statement of financial positions
In EUR mn
Forecast
purchases
Forecast
sales
Recognized
liability
Net invest-
ment hedge
Foreign
currency,
other
Commodity price risk
Foreign currency risk
Interest
hedges
Interest
rate risk
Total
385
385
—
176
176
—
1,168
999
169
357
37
713
608
106
398
93
2022
2021
150
38
113
n.a.
n.a.
191
—
191
n.a.
n.a.
145
145
—
10
4
—
—
—
—
—
423
423
—
7
4
344
344
—
0
8
103
—
103
6
—
109
12
97
—
1
2,374
1,989
385
380
44
1,533
1,139
394
398
102
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 fi-
nancial 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
199
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
allowances and manages it using derivative instru-
ments (spots and forwards) traded bilaterally on the
secondary market (so-called over-the-counter or OTC
transactions).
Chemicals & Materials
For the petrochemical production, some of the fore-
casted cracker feedstock purchases and finished prod-
uct 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 classified as fair value through profit or loss
and stated at fair value.
Borealis hedges its forecasted electricity purchases us-
ing electricity swaps.
Refining & Marketing
Refining & Marketing is exposed to market price risks
arising from trading and non-trading activities, covering
production, refining and marketing activities associated
with crude oil, oil products, gas and electricity, in addi-
tion to limited proprietary trading positions aiming to
create market access within oil and oil product markets.
In Refining & 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, 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.
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.
Furthermore, operational commodity price risk manage-
ment in Exploration & Production includes hedging of
200
market price risk exposure arising from non-trading and
trading activities of gas marketing (hedge of the price
risk on inventory fluctuations and the differences in
terms and conditions of purchases and sales) as well
as limited proprietary trading positions for the purpose
of creating market access within the gas markets.
For all these derivative instruments no hedge account-
ing was applied.
Hedge Accounting in Chemicals & Materials and
Refining & Marketing
In the Chemical & Materials and Refining & Marketing
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.
The risk management objective is to harmonize the
pricing of product sales and purchases in order to re-
main within an approved range of priced stocks at all
times, by means of undertaking stock hedges so as to
mitigate the price exposure. The range is a defined
maximum deviation from the target stock level, as de-
fined in the Annual Plan for hedging activities.
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 activi-
ties.
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.
For refinery margin hedges, hedge accounting is ap-
plied to a limited extent.
In 2022, physical oil product exchange contracts have
been concluded between OMV Group and national
stockholding companies in Austria, Germany and Slo-
vakia. In order to reduce the risk of market price fluctu-
ations between the withdrawal and return of products,
derivative swap deals (sell fix, buy floating at the time
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
of withdrawal and buy fix, sell floating at the time of re-
turn) were concluded and designated in a fair value
hedge relationship (hedge of a recognized liability). As
of December 31, 2022, the product exchange transac-
tion with the Austrian national stockholding company
was fully completed.
Stock hedges are used to mitigate price exposure
whenever actual priced stock levels deviate from target
levels. Forecast sales for oil products and forecast pur-
chase 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 / Ar-
gus product price is used as the risk component. Other
components like product crack spreads and other local
market cost components are not hedged.The hedging
relationships are established with a hedge ratio of 1:1
as the underlying risk of the commodity derivatives are
identical to the hedged risk components. Hedge inef-
fectiveness can arise from timing differential between
derivative and hedged item delivery and pricing differ-
entials (derivatives are valued on the future monthly av-
erage price (or other periods) and sales/purchases on
the pricing at the date of transaction/delivery).
For ‘Forecast purchases’ as well as the ‘Hedge of a
recognized liability’ the hedge ineffectiveness is in-
cluded 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, NOK, NZD and SEK). Movements of these
currencies against the EUR are also important sources
of risk. Other currencies have only a limited impact on
cash flow and Operating result. The transaction risk on
foreign currency cash flows is monitored on an ongoing
basis. The Group’s long and short net position is re-
viewed at least on a semiannual basis and the sensitiv-
ity 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. Trans-
lation risk arises on the consolidation of subsidiaries
with functional currencies different from EUR. The larg-
est exposures result from changes in RON, USD, 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 investment in a joint
venture 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 investment hedge is the risk of a
weakening USD against the EUR that will result in a re-
duction in the carrying amount of the Group’s net in-
vestment in the joint venture in USD. The EUR/USD im-
pact on the measurement of the loans is recognized in
other comprehensive 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
201
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
the hedging instrument is identical to the hedged risk
component. Hedge ineffectiveness will arise when the
amount of the investment in the foreign joint venture
becomes lower than the amount of the borrowing.
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
2022 the impact of interest rate swaps has not been
material (2021: 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.
Interest rate benchmark reform (IBOR Reform)
The Group continuously evaluates contractual terms in
respect of the London Inter-Bank Offered Rate (LIBOR)
transition exposures. Where necessary, agreements
will be amended to provide for alternative benchmark
rates, which will be in accordance with Loan Market As-
sociation (LMA) standard at the time, to apply in rela-
tion to the affected currencies. Where applicable, the
Group will transition USD LIBOR agreements during
the first half of 2023.
As per end of December 31, 2022, for the EUR 1 bn
(2021: EUR 1 bn) multicurrency Revolving Credit Facil-
ity (RCF) a drawdown waiver is in place for currencies
where IBOR rates were discontinued as a Screen Rate
from December 31, 2021 (CHF, GBP, JPY). The RCF
drawdown waiver will cease to have effect if the Facility
is amended to provide for alternative benchmark rates,
which will be in accordance with LMA standard at a
time.
In addition, a JPY loan tranche of EUR 36 mn (2021:
EUR 38 mn) has been successfully transitioned to To-
kyo Overnight Average 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 103 mn (2021: EUR 97 mn) in total and
a cross currency interest rate swap of EUR 36 mn
(2021: EUR 38 mn). Their hedging period spans be-
yond 2022 when uncertainties about the existence of
the USD LIBOR rates arise. OMV Group expects that
the hedging instrument and the hedged risk of the
hedged item will not change as a result of the reform.
However, any hedge ineffectiveness would be ac-
counted for in the income statement.
Benchmark
Carrying Value
(notional amount for derivatives)
2022
2021
USD LIBOR
USD LIBOR
JPY LIBOR
657
190
36
47
56
36
987
189
38
44
53
38
Impact of Interest Rate Benchmark Reform
In EUR mn
Non-derivative financial assets
Loan receivable
Non-derivative financial liabilities
Loan liabilities
Loan liabilities1
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)
USD LIBOR
USD LIBOR
JPY LIBOR
to USD LIBOR
1 JPY LIBOR has been successfully transitioned to Tokyo Over-night Average Rate (TONAR).
202
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Impact of Interest Rate Benchmark Reform
In EUR mn
Undrawn commitments
Financing commitments provided
Committed borrowing facilities - available RCF
USD LIBOR
Multicurrency
2022
46
1,000
2021
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 the income
statement or other comprehensive income depends on
the type of derivative used and on whether hedge ac-
counting is applied. Market price sensitivity for deriva-
tives to which cash flow hedge accounting is applied is
shown in the sensitivity table for other comprehensive
income. Sensitivity to market price fluctuations for all
other open derivatives is shown in the sensitivity tables
for profit before tax.
Sensitivity analysis for open commodity derivatives affecting profit before tax
In EUR mn
Oil incl. oil products
Oil incl. oil products - designated in a hedge relationship1
Gas
Power
Other2
Total
2022
2021
Market price
+10%
Market price
(10)%
Market price
+10%
Market price
(10)%
4
14
10
13
43
83
(4)
(14)
(10)
(13)
(43)
(83)
(25)
—
(2)
(43)
65
(4)
25
—
2
43
(65)
5
1 Includes hedging instruments designated in a fair value hedge relationship related to product swaps with national stockholding companies in Germany and Slo-
vakia. For further details see chapter ‘Hedge Accounting in Chemicals & Materials and Refining & Marketing’
2 Includes derivatives for European Emission Allowances
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)
2022
2021
Market price
+10%
Market price
(10)%
Market price
+10%
Market price
(10)%
(39)
5
48
15
39
(5)
(48)
(15)
3
3
57
64
(3)
(3)
(57)
(64)
For financial instruments, sensitivity analysis is per-
formed for changes in foreign exchange rates of cur-
rencies material to the Group. On Group level, the
EUR-RON sensitivity not only includes the net RON ex-
posure 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.
203
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Sensitivity analysis for financial instruments affecting profit before tax1
In EUR mn
EUR-RON
EUR-USD
EUR-NZD
EUR-NOK
EUR-SEK
2022
2021
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
8
8
(2)
23
(3)
(8)
(8)
2
(23)
3
(2)
(114)
(4)
23
(6)
2
114
4
(23)
6
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
Sensitivity analysis for financial instruments affecting other comprehensive income1
In EUR mn
2022
2021
10%
apprecia-
tion of the
EUR
10%
deprecia-
tion of the
EUR
10%
apprecia-
tion of the
EUR
43
(16)
(43)
16
39
(16)
10%
deprecia-
tion of the
EUR
(39)
16
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.
Credit risk exists in relation to the financial guarantee
issued by Borealis to Bayport Polymers LLC, which is
accounted for using the equity method, where the maxi-
mum outstanding exposure for Borealis amounts to
EUR 623 mn (2021: nil). For further details refer to
chapter ‘Liquidity Risk’.
The guarantee terminates earliest upon payment
and/or termination of the obligation in 2027 and 2032,
respectively and could be called at any time. Generally,
a payment under the guarantee agreement is triggered
by the non-performance by the guaranteed party of the
obligation covered by the guarantee. Therefore, a fi-
nancial liability initially measured at fair value was rec-
ognized.
The Group is exposed to additional credit risks arising
from credit exposures with customer accounts receiva-
bles (see Note 18 – Financial assets), from its operat-
ing activities as well as from its financial activities such
as financial investments, including deposits with banks
and financial institutions (see Note 26 – Statement of
cash flows), foreign exchange transactions and other fi-
nancial instruments (see Note 18 – Financial assets).
EUR-USD
EUR-SEK
1 Including sensitivity of the net investment hedge
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 and Segment level using predeter-
mined criteria and limits for all counterparties, banks
and security providers. On the basis of a risk assess-
ment, counterparties, banks and security providers are
assigned a credit limit, an internal risk class and a spe-
cific limit validity. The risk assessments are reviewed at
least annually or on an ad-hoc basis. The credit risk
processes are governed by guidelines at OMV Group
level stipulating the group-wide minimum requirements.
The main counterparties with contracts involving deriv-
ative financial instruments have investment grade credit
ratings. OMV uses commercial trade insurance for
parts of its receivables in some business areas to miti-
gate credit risk. Based on the high economic uncer-
tainty resulting from current geopolitical situation, spe-
cial attention is paid to early warning signals like
changes in payment behavior.
204
OMV ANNUAL REPORT 2022 / 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
Carrying amount
Valued at
amortized
cost
Valued at
fair value
Fair value level
Total
Level 1
Level 2
Level 3
Total
4,086
—
—
52
136
42
26
—
—
—
711
380
2,867
—
4,222
42
26
52
380
2,867
711
1,850
—
1,850
n.a.
6,699
882
4,334
882
11,032
4,260
—
—
63
—
—
2,015
258
17
30
—
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
2022
2021
—
—
26
—
—
14
—
—
—
40
—
—
30
—
—
40
—
—
—
70
136
—
—
—
380
2,853
—
—
58
3,427
258
—
—
—
398
4,180
—
—
42
—
—
—
—
—
—
136
42
26
—
380
2,867
—
—
824
866
882
4,334
—
17
—
—
—
—
—
258
17
30
—
398
4,220
—
—
432
432
(23)
4,814
377
826
354
5,709
Trade receivables
Investments in other companies2
Investment funds
Bonds
Derivatives designated and
effective as hedging
instruments
Other derivatives
Loans
Other sundry financial
assets3
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
assets3
Net amount of assets and
liabilities associated with
assets held for sale
Total
1 Excluding assets held for sale
2 Includes investments in JSC GAZPROM YRGM Development (YRGM) and OJSC Severneftegazprom (SNGP), which are accounted for at fair value through
profit or loss according to IFRS 9 since March 1, 2022. For further details please refer to Note 2 – Accounting policies, judgements and estimates, section ‘Im-
pact of Russia’s invasion of Ukraine and related significant estimates and assumptions’.
3 2021 included an asset from reserves redetermination rights related to the acquisition of interests in the Yuzhno-Russkoye field. For further details please refer
to Note 2 – Accounting policies, judgements and estimates, section ‘Impact of Russia’s invasion of Ukraine and related significant estimates and assumptions’.
205
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Fair value hierarchy of financial liabilities and other liabilities at fair value1
In EUR mn
Carrying amount
Valued at
amortized
cost
Valued at
fair
value
Fair value level
Total
Level 1
Level 2
Level 3
Total
Trade payables
Bonds
Lease liabilities
Other interest bearing debt
Liabilities on derivatives
designated and effective as
hedging instruments
Liabilities on other
derivatives
Other sundry financial
liabilities
Other liabilities at fair value2
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
2022
5,259
7,320
1,476
1,487
—
—
—
—
5,259
7,320
1,476
1,487
—
44
44
—
1,571
1,571
1,047
—
16,589
—
132
1,747
1,047
132
18,336
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
2021
—
—
—
—
—
0
—
—
0
—
—
—
—
17
42
—
59
—
—
—
—
44
1,571
—
132
1,747
—
—
—
—
85
3,935
—
4,019
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
44
1,571
—
132
1,747
—
—
—
—
102
3,977
—
4,079
1 Excluding liabilities associated with assets held for sale
2 Includes hedged items designated in fair value hedge relationships related to product swaps with national stockholding companies in Germany and Slovakia.
Financial assets and liabilities for which fair values are disclosed1
In EUR mn
Fair Value
Fair value level
Level 1
Level 2
Level 3
52
52
6,747
1,320
8,067
63
63
8,586
1,742
10,328
2022
—
—
6,747
—
6,747
2021
—
—
8,586
—
8,586
52
52
—
1,320
1,320
63
63
—
1,742
1,742
—
—
—
—
—
—
—
—
—
—
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
206
OMV ANNUAL REPORT 2022 / 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.
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.
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.
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)
13,466
6,086
1,892
21,444
(10,219)
(1,864)
(42)
(12,125)
21,462
6,998
2,231
30,691
(16,844)
(2,480)
(97)
(19,420)
2022
3,247
4,222
1,850
9,318
2021
4,619
4,518
2,135
11,271
(547)
(106)
(1)
(654)
(1,421)
(107)
(104)
(1,633)
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
11,835
7,123
1,089
20,046
(10,219)
(1,864)
(42)
(12,125)
20,922
7,340
973
29,235
(16,844)
(2,480)
(97)
(19,420)
2022
1,615
5,259
1,047
7,921
2021
4,079
4,860
876
9,815
(547)
(106)
(1)
(654)
(1,421)
(107)
(104)
(1,633)
Net
2,700
4,116
1,849
8,664
3,197
4,411
2,031
9,639
Net
1,068
5,153
1,046
7,267
2,657
4,753
772
8,182
207
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
31 Result on financial instruments
Result on financial instruments
In EUR mn
Financial
instruments at
fair value
through profit
or loss
Amount
Equity instruments
designated as
measured at
fair value through
other
comprehensive
income
2022
Financial
assets at
amortized
cost
Financial
liabilities at
amortized
cost
—
—
—
11
—
—
—
—
—
—
0
11
—
—
—
19
—
—
—
—
—
—
19
2021
—
(43)
(43)
—
269
—
—
—
—
(1,007)
0
—
—
—
—
—
(161)
—
—
—
—
(12)
(739)
(173)
—
(9)
(9)
—
160
—
—
—
(0)
—
—
—
—
—
—
(172)
—
—
—
(16)
159
(188)
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 financial instruments
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
1,029
1,029
(43)
—
986
1,029
11
269
(417)
(374)
(186)
—
—
(4)
(374)
(186)
(46)
(46)
(1,007)
(12)
—
0
(1,761)
(609)
(1,050)
(1,050)
(9)
—
(1,059)
(1,050)
19
161
(334)
15
(33)
(1)
(16)
—
—
(4)
15
(33)
—
—
(189)
(22)
The interest expense not allocated mainly referred to
the unwinding of provisions. For further details see
Note 11 – Net financial result.
208
OMV ANNUAL REPORT 2022 / 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. From 2022 onwards OMV Petrom LTIP
payment is made in shares only. Executive Board
members and senior managers as active participants of
the plans are required to build up an appropriate vol-
ume of shares and to hold those shares until retirement
or departure from the company. For senior managers, if
the LTIP eligibility lapses, but they are still in an active
employment with the company, the shareholding re-
quirement expires when the last LTIP is paid out. The
shareholding requirement is defined as a percentage of
the annual gross base salary, for the Executive Board,
and as a percentage of the respective Target Long
Term Incentive for the senior managers. Executive
Board members have to fulfill the shareholding require-
ment within five years after the initial respective ap-
pointment. Until fulfillment of the shareholding require-
ment, the disbursement is in form of shares whilst
thereafter the plan participants can decide between
cash or share settlement. 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 Company.
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.
209
OMV ANNUAL REPORT 2022 / 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, 2022
Maximum shares as of December 31, 2022
Fair value of plan (in EUR mn) as of
December 31, 2022¹
Provision (in EUR mn) as of December 31,
2022¹
1 Excluding incidental wage costs
2022 plan
01/01/2022
12/31/2024
03/31/2025
2021 plan
01/01/2021
12/31/2023
03/31/2024
2020 plan
01/01/2020
12/31/2022
03/31/2023
2019 plan
01/01/2019
12/31/2021
03/31/2022
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
314,218
708,987
75% of the
respective
Target Long
Term Incentive
601,126
847,200
75% of the
respective
Target Long
Term Incentive
245,060
452,909
75% of the
respective
Target Long
Term Incentive
—
—
15
3
29
14
12
9
—
—
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 align-
ment in OMV, combining the interests of management
and shareholders via a long-term investment in re-
stricted shares. The holding period of the Equity Defer-
ral is three years from vesting. The plan also seeks to
prevent inadequate risk-taking.
The Annual Bonus is capped at 180% of the target An-
nual Bonus. A minimum of one third of the Annual Bo-
nus is granted in shares. The determined bonus
achievement is settled per March 31 following the pe-
riod end whereby at the statement of financial position
date the target achievements and the share price is es-
timated (the latter on basis of market quotes).
Given the volatility of commodity prices and market
conditions inherent to the industry, the variable remu-
neration plans give the Remuneration Committee the
authority (in line with general practices in the Oil and
Gas industry) to adjust the threshold, target, and maxi-
mum levels based on actual oil/gas prices and
EUR/USD exchange rates compared with assumptions
at the time the targets were set. Adjustments are ap-
plied in both directions. They are determined by the Re-
muneration Committee and published in the Remunera-
tion Report. The granted shares after deduction of
taxes are transferred to a trustee deposit, managed by
the Company, to be held for three years.
In 2022 expenses amounting to EUR 3 mn were rec-
orded with a corresponding increase in equity (2021:
EUR 3 mn).
210
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Personal investment held in shares1
Active Executive Board members
Stern
Pleininger2
Florey
van Koten
Former Executive Board members
Seele3
Skvortsova4
Gangl5
Total — Executive Board
Other senior managers
Total personal investment
12/31/2022
17,158
58,227
46,068
1,084
16,157
3,335
16,680
158,709
237,825
396,534
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 Johann Pleininger resigned from the Executive Board effectively December 31, 2022.
3 Rainer Seele resigned from the Executive Board effectively August 31, 2021.
4 Elena Skvortsova resigned from the Executive Board effectively October 31, 2022.
5 Thomas Gangl took part in 2019 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. He resigned from the Executive Board effectively March 31, 2021.
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
2022
2021
15
7
22
28
10
38
211
OMV ANNUAL REPORT 2022 / 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 Group
OMV Group
1 Calculated as the average of the month’s end numbers of employees during the year
2022
2021
6,664
7,837
7,833
22,334
6,939
8,852
7,753
23,544
The decrease in the number of employees in the OMV
Group, excluding OMV Petrom Group and Borealis
Group, was impacted by the sale of Gas Connect Aus-
tria in 2021.
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
2022
2021
Audit of Group accounts and year-end audit
Other assurance services
Tax advisory services
Other services
Total
Group auditor
3.47
0.60
0.19
0.40
4.65
thereof
Ernst&Young
Wirtschafts-
prüfungsgesell-
schaft m.b.H
1.58
0.48
—
0.01
2.07
thereof
Ernst&Young
Wirtschafts-
prüfungsgesell-
schaft m.b.H
1.51
0.31
—
0.01
1.84
Group auditor
3.55
0.53
0.56
0.07
4.70
212
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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.
In 2022, 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 were
not based on market prices but on cost plus defined
margin.
Transactions with equity-accounted investments – Sales and Receivables
In EUR mn
2022
2021
Sales and
other income
Trade
receivables
Sales and
other income
Trade
receivables
Abu Dhabi Oil Refining Company
ADNOC Global Trading LTD
Bayport Polymers LLC
Borouge investments1
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)2
Société d'Intérêt Collectif Agricole Laignes Agrifluides (SICA
Laignes Agrifluides)2
Trans Austria Gasleitung GmbH3
Total
2
3
8
677
1
119
141
8
—
5
—
963
2
1
3
151
0
59
22
0
—
—
—
237
3
3
6
439
1
43
124
4
1
7
4
635
2
1
1
111
0
0
17
0
—
1
—
134
1 Includes Borouge PLC, Abu Dhabi Polymers Company Limited (Borouge) and Borouge Pte. Ltd. For more details see Note 16 – Equity-accounted investments.
2 Was reclassified to held for sale as part of the nitrogen business unit disposal group of Borealis
3 Trans Austria Gasleitung GmbH was sold as of May 31, 2021, as part of the Gas Connect Austria disposal group.
Additional sales transactions in the amount of
EUR 293 mn took place with Erdöl-Lagergesellschaft
m.b.H., which are not disclosed in the above table as
netting with expenses was applied in the income state-
ment.
213
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Transactions with equity-accounted investments – Purchases and Payables
In EUR mn
ADNOC Global Trading LTD
Borouge investments1
Chemiepark Linz Betriebsfeuerwehr GmbH2
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 Severneftegazprom3
PetroPort Holding AB
Società Italiana per l'Oleodotto Transalpino S.p.A.
Trans Austria Gasleitung GmbH4
Total
2022
2021
Purchases
and services
received
Trade
payables
Purchases
and services
received
Trade
payables
32
416
3
48
3
208
10
116
5
24
4
2
—
873
—
88
0
7
—
27
2
—
—
—
0
0
—
124
—
501
4
29
3
81
0
74
10
127
3
—
11
843
—
108
0
2
—
63
—
—
0
14
0
—
—
188
1 Includes Borouge PLC, Abu Dhabi Polymers Company Limited (Borouge) and Borouge Pte. Ltd. For more details see Note 16 – Equity-accounted investments.
2 Was reclassified to held for sale as part of the nitrogen business unit disposal group of Borealis
3 OJSC Severneftegazprom was deconsolidated as of March 1, 2022, and reclassified to other investments at fair value through profit or loss (FVTPL).
4 Trans Austria Gasleitung GmbH was sold as of May 31, 2021, as part of the Gas Connect Austria disposal group.
Dividends distributed from equity-accounted investments
In EUR mn
Abu Dhabi Oil Refining Company
Abu Dhabi Petroleum Investments LLC
ADNOC Global Trading LTD
Bayport Polymers LLC
Borouge investments1
Deutsche Transalpine Oelleitung GmbH
EEX CEGH Gas Exchange Services GmbH
Neochim AD2
OJSC Severneftegazprom3
Pearl Petroleum Company Limited
Società Italiana per l'Oleodotto Transalpino S.p.A.
Transalpine Ölleitung in Österreich Gesellschaft m.b.H.
Trans Austria Gasleitung GmbH4
Dividend distributed from equity-accounted investments
2022
116
5
43
—
592
1
1
1
—
41
1
1
—
803
2021
—
—
—
21
1,918
1
1
0
17
30
1
0
9
1,999
1 Includes Borouge PLC, Abu Dhabi Polymers Company Limited (Borouge) and Borouge Pte. Ltd. For more details see Note 16 – Equity-accounted investments.
2 Was reclassified to held for sale as part of the nitrogen business unit disposal group of Borealis
3 OJSC Severneftegazprom was deconsolidated as of March 1, 2022, and reclassified to other investments at fair value through profit or loss (FVTPL).
4 Trans Austria Gasleitung GmbH was sold as of May 31, 2021, as part of the Gas Connect Austria Disposal Group.
214
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Other balances with equity-accounted investments
In EUR mn
Kilpilahden Voimalaitos Oy
Bayport Polymers LLC
Renasci N.V.
Loan receivables
Bayport Polymers LLC
Freya Bunde-Etzel GmbH & Co. KG
Other financial receivables
Borouge investments1
Bayport Polymers LLC
Contract assets
Kilpilahden Voimalaitos Oy
Renasci N.V.
Advance payments
C2PAT GmbH & Co KG
Bayport Polymers LLC
Other financial liabilities
Erdöl-Lagergesellschaft m.b.H.
Contract liabilities
Erdöl-Lagergesellschaft m.b.H.
Other non-financial liabilities
2022
40
657
—
697
29
8
37
8
—
8
11
10
21
1
28
29
100
100
27
27
2021
18
987
12
1,017
—
8
8
8
7
16
12
10
22
1
—
1
120
120
—
—
1 Includes Borouge PLC, Abu Dhabi Polymers Company Limited (Borouge) and Borouge Pte. Ltd. For more details see Note 16 – Equity-accounted investments.
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 1,313 mn (2021: EUR 1,236 mn). On
April 19, 2022, Bayport Polymers LLC, which is ac-
counted for using the equity method, partially repaid the
loan towards the Group in the amount of EUR 602 mn.
The repayment was financed from the two tranches of
senior notes in the amount of EUR 324 mn and
EUR 278 mn, which mature in 2027 and 2032 respec-
tively. Senior notes issued by Bayport Polymers LLC
are guaranteed by Borealis AG and therefore a finan-
cial liability in the amount of EUR 28 mn was recog-
nized for the financial guarantee. For more details see
Note 28 – Risk management, section ‘Credit risk man-
agement’. The undrawn financing commitments pro-
vided to Bayport Polymers LLC amounted to
EUR 46 mn as of December 31, 2022 (December 31,
2021: EUR 251 mn).
A further decrease in the position loan receivables was
mainly related to debt conversion into newly issued
shares of Renasci N.V. in 2022. At year end 2021, the
Group had further financing commitments to grant a
convertible loan towards Renasci N.V. amounting to
EUR 12 mn. Due to the debt conversion the total
amount was completely drawn in 2022. For more de-
tails see Note 16 – Equity-accounted investments.
Furthermore, a capital contribution amounting to
EUR 408 mn was paid to Borouge 4 LLC in 2022.
At the reporting date, financing commitments towards
Kilpilahden Voimalaitos Oy amounted to EUR 10 mn
(December 31, 2021: EUR 16 mn). The entitlements
are dependent on the fulfilment of specific events, as
defined in the underlying contracts.
Other non-financial liabilities in 2022 towards Erdöl-
Lagergesellschaft m.b.H. refer to product swaps. The
contract liabilities towards Erdöl-Lagergesellschaft
m.b.H. are related to a long-term contract for rendering
of services.
Government-related entities
Based on the OMV ownership structure, the Republic
of Austria has an indirect relationship with OMV via
ÖBAG and is therefore, together with companies under
the control of the Republic of Austria, considered a re-
lated party. OMV has transactions at arm´s length in
the normal course of business mainly with Öster-
reichische Post Aktiengesellschaft, VERBUND AG,
Österreichische Bundesbahnen-Holding Aktiengesell-
schaft, Bundesbeschaffung GmbH and their subsidiar-
ies.
In July 2022, the strategic energy cooperation between
OMV and VERBUND has commissioned the expansion
215
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
of the ground-mounted photovoltaic plant in
Schönkirchen-Reyersdorf, Austria, with equal stakes of
both parties in the joint project. Furthermore, OMV and
VERBUND AG have a cooperation agreement related
to the photovoltaic plant in Lobau, Austria, which OMV
has started up in 2022.
In 2021, OMV closed the transaction to sell its 51%
stake in Gas Connect Austria to VERBUND AG. Moreo-
ver, OMV finalized in 2021 the sale of its 40% share in
SMATRICS GmbH & Co KG and its 40% share in E-
Mobility Provider Austria GmbH to VERBUND AG. Fur-
thermore, OMV founded in 2021 together with Lafarge
Perlmooser GmbH and VERBUND Energy4Business
GmbH a joint venture for the joint planning and con-
struction of a full-scale plant by 2030 to capture CO2
and process it into synthetic fuels, plastics and other
chemicals.
Key management personnel compensation
Remuneration received by the Executive Board
In EUR mn
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 2022, there were supplies of goods
and services for instance to Compañía Española de
Petróleos, S.A. (CEPSA), Abu Dhabi Company for Off-
shore Petroleum Operations Ltd, NOVA Chemicals
Corporation (NOVA), Abu Dhabi National Oil Company
(ADNOC) and ADNOC Trading Limited. Furthermore,
OMV cooperates with ADNOC in several Exploration &
Production arrangements and closed strategic equity
partnerships with ADNOC, covering both the ADNOC
Refining business and a Trading Joint Venture. In 2022
OMV and ADNOC signed a Memorandum of Under-
standing to explore new partnerships in delivieries of
liquefied natural gas.
active members of the Executive
Board as of December 31, 2022
former members of the
Executive Board
2022
Stern Pleininger2
1.47
1.59
Florey van Koten Skvortsova4 Seele6 Gangl7 Leitner9
—
1.16
0.12
0.85
1.57
1.55
Short-term benefits
Fixed (base salary)
Variable (cash bonus)1
Benefits in kind
Post employment benefits
Pension fund
contributions
Share based benefits
Variable
(Equity Deferral 2021)
Variable (LTIP 2019)
Remuneration received by
the Executive Board
0.99
0.59
0.01
0.25
0.25
0.29
0.29
—
0.75
0.71
0.01
0.19
0.19
1.33
0.44
0.90
0.81
0.69
0.053
0.20
0.20
1.03
0.34
0.70
0.58
0.25
0.03
0.14
0.14
0.10
0.10
—
0.58
0.50
0.095
0.14
0.14
0.21
0.21
—
0.55
1.02
0.01
0.14
0.14
3.13
0.43
2.70
Total
8.32
4.25
3.87
0.20
1.06
—
—
—
—
—
0.70
1.06
7.16
—
0.12
—
—
—
0.37
0.05
0.328
—
0.70
1.85
5.31
2.12
3.00
2.78
1.10
1.51
4.84
0.49
0.70
16.54
1 The variable components relate to target achievement in 2021, for which bonuses were paid in 2022.
2 Johann Pleininger resigned from the Executive Board effectively December 31, 2022 and his contract ends on April 30, 2023.
3 Including schooling costs and related taxes
4 Elena Skvortsova resigned from the Executive Board effectively October 31, 2022 and her contract ends on June 14, 2023.
5 Including rental and storage costs and related taxes.
6 Rainer Seele resigned from the Executive Board effectively August 31, 2021 and his contract ended on June 30, 2022.
7 Thomas Gangl resigned from the Executive Board effectively March 31, 2021.
8 Thomas Gangl received additionally a cash payment in the amount of EUR 0.08 mn based on the Senior Manager LTIP 2019.
9 Manfred Leitner resigned from the Executive Board effectively June 30, 2019.
216
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
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
Stern3 Pleininger
1.77
0.69
Florey Skvortsova van Koten7 Seele8 Gangl9 Leitner12
—
0.65
1.77
0.30
1.38
2.55
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
0.69
—
—
0.01
0.18
0.18
—
—
—
—
0.75
—
1.01
0.01
0.19
0.19
—
1.09
0.32
0.76
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
—
—
0.41
1.08
0.02
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 ended 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.
217
OMV ANNUAL REPORT 2022 / 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
2022
2021
25.1
1.4
1.1
5.8
1.2
34.6
25.8
1.3
2.2
3.5
1.8
34.6
1 In 2022 there were on average 47 top executives (2021: 43) based on the months of service in the Group.
2 2022 included remuneration of Martijn van Koten for his previous function as Executive Board member in Boralis Group and 2021 included remuneration of
Alfred Stern and Martijn van Koten in their previous 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 2022, remuneration expenses for the Supervisory
Board amounted to EUR 1.1 mn (2021: 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
2022, OMV transferred trade receivables amounting to
EUR 5,746 mn to Carnuntum DAC (2021: EUR 4,573
mn).
As of December 31, 2022, OMV held seller participa-
tion notes amounting to EUR 168 mn (2021:
EUR 95 mn) and complementary notes amounting to
EUR 105 mn (2021: EUR 89 mn) in Carnuntum DAC
shown in other financial assets. As of December 31,
2022, the maximum exposure to loss from the securiti-
zation program was EUR 196 mn (2021: EUR 110 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 37 mn in 2022 (2021: EUR 29 mn). Inter-
est income on the notes held in Carnuntum DAC
amounted to EUR 5 mn in 2022 (2021: EUR 2 mn). In
addition, OMV received a service fee for the debtor
management services provided for the receivables
sold.
218
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
37 Subsequent events
As of January 1, 2023 the Group introduced a new cor-
porate structure, designed to fully enable the delivery of
Strategy 2030. Following the reorganization and start-
ing from Q1/23, the Group will report on the following
business segments: Chemicals & Materials, Fuels &
Feedstock (former Refining & Marketing) and Energy
(former Exploration & Production). As part of the intro-
duction of the new corporate structure, Gas & Power
Eastern Europe, which includes Supply, Marketing and
Trading of gas in Romania and Turkey and one gas-
fired power plant in Romania, was transferred from
Fuels & Feedstock to Energy business segment. The
internal reporting and the relevant information provided
to the chief operating decision maker in order to assess
performance and allocate resources have been up-
dated to reflect the new organizational structure. Com-
parative information for 2022 has been adjusted retro-
spectively and will be published together with the Q1/23
report.
On January 2, 2023, the sale of Borealis’ shares in
Rosier SA to YILDIRIM Group’s YILFERT BENELUX
B.V. has been completed. Following the completion of
the sale, Borealis no longer holds any shares in Ros-
ier SA.
On January 11, 2023, Borealis has further increased its
stake in Renasci N.V. (Renasci) from 27.42% to
50.01%, signaling ongoing confidence in the potential
of Renasci’s patented SCP concept to drive the circular
transformation. The stake increase was reached
through a capital increase of EUR 5 mn and the acqui-
sition of 35,719 shares for EUR 10.5 mn. Following this
transaction, Renasci will become a fully consolidated
subsidiary in 2023 (2022: at-equity accounted).
On February 3, 2023 Borouge 4 LLC as the borrower
and Borealis AG as lender, entered into a shareholder
loan agreement (SHL) in the amount of USD 1,068 mn
to part finance the Borouge 4 CAPEX requirements of
Borouge 4 LLC. The SHL is structured as a facility with
a 5 year tenor. Borealis retains the right to accelerate
the prepayment of the outstanding amounts at the point
of reintegration.
On February 27, 2023, the Executive Board of OMV
has decided to explore the possibilities of selling the
E&P assets in the Asia-Pacific region and to initiate the
related sales process for the potential divestment of its
50% stake in the issued share capital of SapuraOMV
Upstream Sdn. Bhd. in Malaysia and 100% of the
shares in OMV New Zealand Limited. A potential di-
vestment aims at optimizing the E&P portfolio in line
with the OMV Strategy 2030.
As part of the sales process, OMV, in coordination with
competent regulators and governmental authorities, will
invite potentially interested parties, in a first step, to
submit expressions of interest and, in a second step, to
submit binding offers. The sales process is expected to
take place over the next months. A potential sale is still
subject to the approval of the Supervisory Board of
OMV and competent governmental authorities.
219
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
38 Direct and indirect investments of OMV Aktiengesellschaft
Changes in consolidated group
Name of company
Registered Office
Type of Change1
Effective date
Chemicals & Materials
Eifanes Beteiligungsverwaltungs GmbH2
Borouge 4 LLC3
RecycleMe Plastics GmbH3,4
Borouge PLC3
Abu Dhabi Polymers Company Limited (Borouge)3,5
Borouge Pte. Ltd.3,6
Refining & Marketing
OMV Petrom Biofuels SRL
OMV Retail Deutschland GmbH
OMV Supply & Trading AG
PETRODYNE-CSEPEL Zrt.
Exploration & Production
JSC GAZPROM YRGM Development
OJSC Severneftegazprom3
OMV (YEMEN) Al Mabar Exploration GmbH
OMV Block 70 Upstream GmbH
OMV Jardan Block 3 Upstream GmbH
OMV Myrre Block 86 Upstream GmbH
SAPURAOMV UPSTREAM (MALAYSIA) SDN. BHD.
OMV Abu Dhabi E&P GmbH
OMV Gas Marketing & Trading Italia S.r.l.
OMV Bina Bawi GmbH
OMV Offshore Morondava GmbH
OMV Middle East & Africa GmbH
OMV Offshore (Namibia) GmbH
OMV (NAMIBIA) Exploration GmbH
OMV Petroleum Exploration GmbH
S. PARC FOTOVOLTAIC ISALNITA S.A.7
S. PARC FOTOVOLTAIC ROVINARI EST S.A.7
S. PARC FOTOVOLTAIC TISMANA 1 S.A.7
S. SOLARIST TISMANA 2 S.A.7
SapuraOMV Upstream (Malaysia) Inc.
SapuraOMV Upstream (Southeast Asia) Inc.
OMV Green Energy GmbH
OE SASR Beta Achtundvierzigste
Beteiligungsverwaltung GmbH8
Vienna
Abu Dhabi
Herborn
Abu Dhabi
Abu Dhabi
Singapore
First consolidation
First consolidation
First consolidation
First consolidation
Deconsolidation (M)
Partial disposal
March 9, 2022
March 11, 2022
April 19, 2022
April 28, 2022
June 1, 2022
June 1, 2022
Bucharest
Burghausen
Baar
Budapest
First consolidation
Deconsolidation
Deconsolidation (L)
Deconsolidation (M)
March 31, 2022
May 1, 2022
August 30, 2022
December 31, 2022
St. Petersburg
Krasnoselkup
Vienna
Vienna
Vienna
Vienna
Kuala Lumpur
Vienna
Milan
Vienna
Vienna
Vienna
Vienna
Vienna
Vienna
Târgu Jiu
Târgu Jiu
Târgu Jiu
Târgu Jiu
Nassau
Nassau
Vienna
Deconsolidation (T)
March 1, 2022
Deconsolidation (T)
March 1, 2022
Deconsolidation (I)
March 31, 2022
Deconsolidation (I)
March 31, 2022
Deconsolidation (I)
March 31, 2022
Deconsolidation (I)
March 31, 2022
March 31, 2022
First consolidation
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
Deconsolidation (I) September 30, 2022
October 27, 2022
First consolidation
October 27, 2022
First consolidation
October 27, 2022
First consolidation
October 27, 2022
First consolidation
November 22, 2022
Deconsolidation (L)
November 22, 2022
Deconsolidation (L)
November 23, 2022
First consolidation
Vienna
First consolidation (A)
December 12, 2022
1 “First consolidation” refers to newly formed companies, while “First consolidation (A)” indicates the acquisition of a company. “Deconsolidation (M)” refers to
companies that were deconsolidated following a merger into another Group company. “Deconsolidation (L)” refers to subsidiaries that were liquidated. “Decon-
solidation (T)” refers to companies that were transferred to other investments at fair value through profit or loss (FVTPL), for further details see Note 2 - Account-
ing policies, judgements and estimates. Companies marked with “Deconsolidation (I)” have been deconsolidated due to immateriality.
2 Renamed to Borealis Middle East Holding GmbH
3 Company consolidated at-equity
4 Renamed to Recelerate GmbH
5 Shares transferred to Borouge PLC before the ADX listing. ADX listing changed OMV’s share in Abu Dhabi Polymers Company Limited through the shareholding
in Borouge PLC from 40% to 36%. For further details see Note 16 – Equity-accounted investments.
6 Shares partly transferred to Borouge PLC before the ADX listing. ADX listing changed OMV’s share in Borouge Pte. Ltd. from 49.15% to 45.76% (thereof
15.25% direct share and 30.51% through shareholding in Borouge PLC). For further details see Note 16 – Equity-accounted investments.
7 Joint operation; accounting for OMV’s share of assets, obligations for liabilities, share of income and expenses
8 Renamed to OMV Austria Geothermal GmbH
220
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
For further information on major acquisitions and dis-
posals refer to Note 3 – Changes in group structure.
Number of consolidated companies
2022
2021
Full
consolidation
Equity
consolidation
Joint
operation1
Full
consolidation
Equity
consolidation
January 1
Included for the first time
Deconsolidated during the year
December 31
thereof domiciled and operating abroad
thereof domiciled in Austria and
operating abroad
136
5
(18)
123
88
10
22
3
(2)
23
17
—
—
4
—
4
4
—
151
3
(18)
136
93
18
23
3
(4)
22
16
—
1 Accounting for OMV’s share of assets, obligations for liabilities, share of income and expenses
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, 2022
Equity
interest
in % as of
December
31, 2021
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, Pasadena2
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
Borealis Argentina SRL, Buenos Aires
BOREALIS ASIA LIMITED, Hong Kong
Borealis BoNo Holdings LLC, Port Murray (BBNHUS)2
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
BORAAG
BCHIFR
BCHIFR
BNOVUS
BSVSWE
BHOLAT
OMVRM
OMV AG
BORAAG
BAGMAT
BORAAG
BPOBE
BORAAG
BORAAG
BSVSWE
BORAAG
BUS
BORAAG
BORAAG
BORAAG
BORAAG
BFR
BORAAG
BORAAG
BUS
BORAAG
BORAAG
BPOBE
BORAAG
AEJ
NC
NC-I
AEJ
C
C
C
C
C
NC
NC
C
C
NC
NC
NC
C
C
NC
C
NC
NC
C
100.00
34.00
50.00
100.00
39.00
32.67
3.33
100.00
100.00
90.00
10.00
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
40.00
100.00
34.00
50.00
100.00
39.00
32.67
3.33
100.00
100.00
90.00
10.00
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
221
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Parent
company
BSVSWE
BORAAG
BABSWE
BORAAG
BORAAG
BPOBE
BORAAG
BLATAT
BLATAT
BLATAT
BLATAT
BFR
BORAAG
BLATAT
BLATAT
BLATAT
BORAAG
BLATAT
BLATAT
BLATAT
BORAAG
BCOMUS
BORAAG
BORAAG
BABSWE
BORAAG
BORAAG
BORAAG
BSVSWE
BORAAG
BORAAG
BORAAG
BSVSWE
BORAAG
BORAAG
BSVSWE
BORAAG
BORAAG
BORAAG
BFR
BORAAG
BORAAG
BORAAG
BFR
BORAAG
BORAAG
BORAAG
BORAAG
Type of
consoli-
dation1
C
C
C
C
C
NC
NC
NC
C
C
C
NC
NC
NC
NC
NC
NC
NC
NC
C
NC
NC
C
NC
NC
C
C
C
C
NC
NC
NC
C
C
NC
NC
NC
C
C
C
C
Equity
interest
in % as of
December
31, 2022
0.00
100.00
100.00
100.00
Equity
interest
in % as of
December
31, 2021
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
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
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
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
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
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., České Budějovice
Borealis L.A.T doo, Beograd, Belgrade
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 Middle East Holding GmbH, Vienna (BORMEH)
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 (BPODE)
Borealis Polymers N.V., Beringen (BPOBE)
Borealis Polymers Oy, Porvoo
Borealis Polyolefine GmbH, Schwechat (BPOAT)
Borealis Polyolefins d.o.o., Zagreb
Borealis Polyolefins S.R.L., Bucharest
Borealis Polyolefins s.r.o., Bratislava
Borealis Produits et Engrais Chimiques du Rhin S.A.S.,
Ottmarsheim
Borealis Química España S.A., Barcelona
Borealis RUS LLC, Moscow
Borealis s.r.o., Prague
Borealis Services S.A.S., Paris
Borealis Sverige AB, Stenungsund (BSVSWE)
Borealis Technology Oy, Porvoo
BOREALIS UK LTD, Manchester
Borealis USA Inc., Port Murray (BUS)
222
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Borouge 4 LLC, Abu Dhabi
Borouge PLC, Abu Dhabi (BOROLC)
Borouge Pte. Ltd., Singapore
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
Hallbar Kemi i Stenungsund, Stenungsund
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)
PetroPort Holding AB, Stenungsund
Recelerate GmbH, Herborn
Renasci N.V., Ghent
Rosier France S.A.S., Arras
Rosier Nederland B.V., Sas van Gent
Rosier S.A., Moustier (BROSBE)
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)2
STOCKAM G.I.E., Grand-Quevilly
Refining & Marketing
Abu Dhabi Oil Refining Company, Abu Dhabi
Abu Dhabi Petroleum Investments LLC, Abu Dhabi (ADPINV)
ADNOC Global Trading LTD , Abu Dhabi
Aircraft Refuelling Company GmbH, Vienna
Autobahn - Betriebe Gesellschaft m.b.H., Vienna
Avanti Deutschland GmbH, Berchtesgaden
BSP Bratislava-Schwechat Pipeline GmbH, Vienna
Parent
company
BORMEH
BORMEH
BOROLC
BORMEH
BORAAG
BAGMAT
BORAAG
BORAAG
OMVD
BPODE
OMVD
BPODE
BABSWE
BORAAG
BCHIFR
BAGRFR
BABSWE
BABSWE
BABSWE
BSVSWE
BORAAG
BORAAG
BORAAG
BFEBGR
BBNHUS
BSBHUS
OMVRM
BABSWE
BORAAG
BCIRC
BROSBE
BROSBE
BORAAG
BCHIFR
BAGRFR
BCHIFR
BLATAT
BUS
BCHIFR
BAGRFR
OMVRM
OMVRM
OMVRM
OMVRM
OMVRM
OMVRM
OMVRM
Equity
interest
in % as of
December
31, 2021
Type of
consoli-
dation1
AEJ
AEJ
AEJ
Equity
interest
in % as of
December
31, 2022
40.00
36.00
84.75
15.25
NC-I
C
C
NC-I
AEA
C
C
NC-I
NC-I
NC-I
NC
NC-I
C
C
AEA
C
C
AEJ
AEJ
AEA
C
C
C
NC-I
NC-I
C
NC
AEA
AEJ
AEA
NC-I
NC-I
C
NC-I
47.50
99.75
100.00
15.46
7.73
20.66
10.33
80.00
100.00
40.00
9.98
20.00
25.00
100.00
0.00
20.00
100.00
100.00
20.30
50.00
50.00
100.00
50.00
50.00
27.42
100.00
100.00
98.09
39.97
9.93
25.00
0.00
100.00
99.00
1.00
15.00
25.00
15.00
33.33
47.19
100.00
26.00
50.00
47.50
98.71
100.00
15.46
7.73
20.66
10.33
80.00
100.00
40.00
9.98
20.00
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
15.00
25.00
15.00
33.33
47.19
100.00
26.00
223
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Equity
interest
in % as of
December
31, 2022
50.00
50.00
32.26
100.00
55.60
29.00
100.00
25.10
100.00
99.90
0.10
100.00
100.00
100.00
100.00
100.00
100.00
0.00
75.00
25.00
100.00
100.00
92.25
99.96
99.96
0.04
100.00
100.00
100.00
100.00
40.00
100.00
20.00
33.33
32.26
50.00
33.33
32.26
Equity
interest
in % as of
December
31, 2021
50.00
50.00
32.26
51.72
48.28
55.60
29.00
100.00
25.10
100.00
99.90
0.10
100.00
100.00
100.00
100.00
100.00
100.00
0.00
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
65.00
49.00
100.00
65.00
49.00
100.00
Type of
consoli-
dation1
NC
AEA
C
AEA
AEA
NC
NC-I
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
NC
C
AEJ
C
C
NC-I
NC-I
AEA
NC-I
NC-I
AEA
C
AEA
C
Parent
company
BPOAT
OMVRM
OMVD
PDYNHU
OHUN
OMVRM
OMVRM
OMVRM
SWJS
OMVRM
PETROM
OMVRM
OMVRM
OMVD
OMVRM
OMVRM
OMVRM
PETROM
ROMAN
PETROM
OMVRM
PETROM
OMVRM
OMVD
OMVRM
OMVRM
PETROM
OMVRM
OMVRM
OMVRM
OMVRM
OTRAD
OGI
ADPINV
OHUN
PETROM
OMVRM
OMVRM
OMVRM
OHUN
OMVD
OMVRM
OGI
HUB
NZEA
BTF Industriepark Schwechat GmbH, Schwechat
Deutsche Transalpine Oelleitung GmbH, Munich
DUNATÀR Köolajtermék Tároló és Kereskedelmi Kft., Budapest
Erdöl-Lagergesellschaft m.b.H., Lannach3
GENOL Gesellschaft m.b.H., Korneuburg
KSW Beteiligungsgesellschaft m.b.H., Vienna (SWJS)
KSW Elektro- und Industrieanlagenbau Gesellschaft m.b.H.,
Feldkirch
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
OMV Gaz Iletim A.S., Istanbul
OMV Hungária Ásványolaj Korlátolt Felelösségü Társaság,
Budapest (OHUN)
OMV PETROM Aviation S.R.L., Otopeni
OMV Petrom Biofuels 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
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
Società Italiana per l'Oleodotto Transalpino S.p.A., Trieste
SuperShop Marketing Kft., Budapest
TGN Tankdienst-Gesellschaft Nürnberg GbR, Nuremberg
Transalpine Ölleitung in Österreich Gesellschaft m.b.H.,
Matrei in Osttirol
Exploration & Production
Central European Gas Hub AG, Vienna (HUB)4
EEX CEGH Gas Exchange Services GmbH, Vienna4
Energy Infrastructure Limited, Wellington
224
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Parent
company
Energy Petroleum Holdings Limited, Wellington
Energy Petroleum Investments Limited, Wellington
Freya Bunde-Etzel GmbH & Co. KG, Bonn4
JSC GAZPROM YRGM Development , St. Petersburg5,6
OJSC Severneftegazprom, Krasnoselkup6
OMV Austria Geothermal GmbH, Vienna
OMV (Berenty) Exploration GmbH, Vienna
OMV (IRAN) onshore Exploration GmbH, Vienna
OMV (Mandabe) Exploration GmbH, Vienna
OMV (NAMIBIA) Exploration GmbH , Vienna6
OMV (NORGE) AS, Stavanger
OMV (Tunesien) Production GmbH, Vienna
OMV (TUNESIEN) Sidi Mansour GmbH, Vienna
OMV (Yemen Block S 2) Exploration GmbH, Vienna
OMV (YEMEN) Al Mabar Exploration GmbH, Vienna6
OMV (YEMEN) South Sanau Exploration GmbH, Vienna
OMV Abu Dhabi E&P GmbH, Vienna6
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 Beteiligungsverwaltungs GmbH, Vienna
OMV Bina Bawi GmbH, Vienna6
OMV Block 70 Upstream GmbH, Vienna6
OMV East Abu Dhabi Exploration GmbH, Vienna
OMV Exploration & Production GmbH, Vienna (OMVEP)
OMV EXPLORATION & PRODUCTION LIMITED, Douglas
OMV Gas Logistics Holding GmbH, Vienna (OGI)4
OMV Gas Marketing & Trading Belgium BVBA, Brussels4
OMV Gas Marketing & Trading Deutschland GmbH, Dusseldorf4
OMV Gas Marketing & Trading GmbH, Vienna (ECOGAS)4
OMV Gas Marketing & Trading Hungária Kft., Budapest4
OMV Gas Marketing & Trading Italia S.r.l., Milan4,6
OMV Gas Marketing Trading & Finance B.V., Amsterdam4
OMV Gas Storage Germany GmbH, Cologne (OGSG)4
OMV Gas Storage GmbH, Vienna4
OMV Green Energy GmbH, Vienna (OGREEN)
OMV Jardan Block 3 Upstream GmbH, Vienna6
OMV Maurice Energy GmbH, Vienna
OMV Middle East & Africa GmbH, Vienna6
OMV Myrre Block 86 Upstream GmbH, Vienna6
OMV New Zealand Limited, Wellington (NZEA)
OMV NZ Production Limited, Wellington
OMV OF LIBYA LIMITED, Douglas
OMV Offshore (Namibia) GmbH, Vienna (ONAFRU)6
OMV Offshore Bulgaria GmbH, Vienna
OMV Offshore Morondava GmbH, Vienna6
OMV Oil and Gas Exploration GmbH, Vienna
OMV Oil Exploration GmbH, Vienna
NZEA
NZEA
OGSG
OMVEP
OMVEP
OGREEN
OMVEP
OMVEP
OMVEP
ONAFRU
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMV AG
OMVEP
OAUST
OAUST
OMV AG
PETEX
OMVEP
OMVEP
OMV AG
OMVEP
OMV AG
ECOGAS
ECOGAS
OMVRM
ECOGAS
ECOGAS
OFS
OMVDS
OGI
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
OMVEP
NZEA
OMVEP
OMVEP
PETROM
OMVEP
OMVEP
OMVEP
Equity
interest
in % as of
December
31, 2022
100.00
100.00
39.99
—
24.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Type of
consoli-
dation1
C
C
AEA
NC-I
NC-I
C
NC
C
NC
NC
C
C
NC
C
NC
NC
NC
C
C
C
C
NC
NC
NC
NC
NC
NC
C
NC
C
C
C
C
C
NC
C
C
C
C
NC
NC
NC
NC
C
C
C
NC
C
NC
NC
C
Equity
interest
in % as of
December
31, 2021
100.00
100.00
39.99
—
24.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
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
225
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Equity
interest
in % as of
December
31, 2022
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
50.00
50.00
50.00
50.00
99.00
1.00
100.00
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
10.00
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
50.00
100.00
100.00
100.00
100.00
100.00
100.00
50.00
Type of
consoli-
dation1
C
NC
NC
NC
NC
C
C
NC
C
C
AEA
NC
NC
C
PC
PC
PC
PC
C
C
C
C
C
C
C
C
C
C
C
C
NC
C
Parent
company
OMVEP
OMVEP
OMVEP
OMVEP
NZEA
PETROM
PETROM
OEPA
OMVEP
OMVEP
OUPI
OMVEP
PETROM
OMVEP
PETROM
PETROM
PETROM
PETROM
SEUPMY
SEMXMY
SEUPMY
SEOCMY
SOUPMY
SESABH
SEUPMY
SEAMMY
SEOCMY
SEUPMY
SEUPMY
SEMYBH
SEUPMY
SEAUMY
SENZMY
OMVEP
PETROM
NC-I
20.00
20.00
OMV AG
SNO
SNO
SNO
SNO
OMV AG
OMV AG
C
C
C
C
C
NC
C
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
OMV Oil Production GmbH, Vienna
OMV Orient Hydrocarbon GmbH, Vienna
OMV Orient Upstream GmbH, Vienna
OMV Petroleum Exploration GmbH, Vienna (PETEX)6
OMV Petroleum Pty Ltd, Perth
OMV PETROM E&P BULGARIA S.R.L., Bucharest4,7
OMV PETROM GEORGIA LLC, Tbilisi
OMV Proterra GmbH, Vienna
OMV Russia Upstream GmbH, Vienna
OMV Upstream International GmbH, Vienna (OUPI)
Pearl Petroleum Company Limited, Road Town
PEI Venezuela Gesellschaft mit beschränkter Haftung,
Burghausen
PETROM EXPLORATION & PRODUCTION LIMITED, Douglas
Preussag Energie International GmbH, Burghausen
S. PARC FOTOVOLTAIC ISALNITA S.A., Târgu Jiu
S. PARC FOTOVOLTAIC ROVINARI EST S.A., Târgu Jiu
S. PARC FOTOVOLTAIC TISMANA 1 S.A., Târgu Jiu
S. SOLARIST TISMANA 2 S.A., Târgu Jiu
SapuraOMV Block 30, S. de R.L. de C.V., Mexico City
SapuraOMV Upstream (Americas) Sdn. Bhd., Kuala Lumpur
(SEAMMY)
SapuraOMV Upstream (Australia) Sdn. Bhd., Kuala Lumpur
(SEAUMY)
SapuraOMV Upstream (Holding) Sdn. Bhd., Kuala Lumpur
(SEUPMY)
SapuraOMV Upstream (Malaysia) Inc., Nassau
SAPURAOMV UPSTREAM (MALAYSIA) SDN. BHD.,
Kuala Lumpur
SapuraOMV Upstream (Mexico) Sdn. Bhd., Kuala Lumpur
(SEMXMY)
SapuraOMV Upstream (NZ) Sdn. Bhd., Kuala Lumpur (SENZMY)
SapuraOMV Upstream (Oceania) Sdn. Bhd., Kuala Lumpur
(SEOCMY)
SapuraOMV Upstream (Sarawak) Inc., Nassau
SapuraOMV Upstream (Southeast Asia) Inc., Nassau (SESABH)
SapuraOMV Upstream (Western Australia) Pty Ltd, Perth
SapuraOMV Upstream JV Sdn. Bhd., Kuala Lumpur
SapuraOMV Upstream Sdn. Bhd., Kuala Lumpur (SOUPMY)
Corporate & Other
ASOCIATIA ROMANA PENTRU RELATIA CU INVESTITORII,
Bucharest
Diramic Insurance Limited, Gibraltar
OMV Clearing und Treasury GmbH, Vienna
OMV Finance Services GmbH, Vienna (OFS)
OMV Finance Services NOK GmbH, Vienna
OMV Finance Solutions USD GmbH, Vienna
OMV Insurance Broker GmbH, Vienna
OMV International Oil & Gas GmbH, Baar
226
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
List of subsidiaries, equity-accounted investments and other investments of OMV Aktiengesellschaft with an interest of
at least 20%
Parent
company
SNO
PETROM
OMV AG
PETROM
BORAAG
OMVRM
BORAAG
OMVRM
OMVRM
OMV AG
OMVD
OMVDS
OMVD
OMVDS
OMV AG
OMV AG
Type of
consoli-
dation1
C
C
C
AEJ
AEJ
C
C
C
C
C
Equity
interest
in % as of
December
31, 2022
75.00
25.00
100.00
100.00
Equity
interest
in % as of
December
31, 2021
75.00
25.00
100.00
99.99
25.00
25.00
25.00
25.00
90.00
10.00
99.99
0.01
99.99
0.01
100.00
51.16
25.00
25.00
25.00
25.00
90.00
10.00
99.99
0.01
99.99
0.01
100.00
51.01
OMV Petrom Global Solutions SRL, Bucharest
OMV Solutions GmbH, Vienna (SNO)
PETROMED SOLUTIONS SRL, Bucharest
Assigned to multiple segments8
C2PAT GmbH & Co KG, Vienna
C2PAT GmbH, Vienna
OMV Deutschland GmbH, Burghausen (OMVD)
OMV Deutschland Marketing & Trading GmbH & Co. KG,
Burghausen9
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
PC Joint operation; accounting for OMV’s share of assets, obligations for liabilities, share of income and expenses
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 Incorporated in Wilmington
3 Despite majority interest not fully consolidated, but accounted for at-equity due to absence of control
4 Segment assignment was changed compared to 2021.
5 Economic share 99.99%
6 Type of consolidation was changed compared to 2021.
7 Company name changed compared to 2021.
8 Assigned to the relevant segments in the segment reporting
9 In the 2022 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 companies which are not consolidated either
have low business volumes or are distribution compa-
nies; the total sales, net income/losses and equity of
such companies represent less than 1% of the Group
totals.
227
OMV ANNUAL REPORT 2022 / 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
31.12.2022
%
ownership
31.12.2021
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
Sarb & Umm Lulu
Ghasha
Nature of activities
Principal place
of business
%
ownership
31.12.2022
%
ownership
31.12.2021
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
Offshore development and production of hydrocarbons
Abu Dhabi
Offshore exploration for and development of hydrocarbons Abu Dhabi
30
24
40
15
20
19
20
5
30
24
40
15
20
19
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”).
228
OMV ANNUAL REPORT 2022 / 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).
Disclosed financial data refers to operating business
segment Exploration & Production (E&P) excluding gas
supply, marketing, trading and logistics in Western Eu-
rope. Further information on OMV’s operating seg-
ments is included in Note 4 – Segment Reporting.
The regional structure is presented below1:
Romania and Black Sea
Bulgaria, Kazakhstan (until May 2021) and Romania
Austria
Russia
North Sea
Austria
Russia (until February 2022)
Norway
Middle East and Africa
Iran (evaluation on hold), Kurdistan Region of Iraq, Libya, Tunisia, United
Arab Emirates, Yemen
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 2022, 2021
and 2020.
Disposals & Deconsolidation
Starting with March 1, 2022 OMV ceased to fully con-
solidate JSC GAZPROM YRGM Development, due to
the loss of control, following the Russia-Ukraine crisis.
For further details refer to Note 2 – Accounting policies,
judgements and estimates, section ‘Impact of Russia’s
invasion of Ukraine and related significant estimates
and assumptions’.
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.
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).
There were no major disposals during 2020.
Non-controlling interest
As OMV holds 51% of OMV Petrom, which is fully con-
solidated; 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).
Starting with March 1, 2022 OMV ceased to equity ac-
count its 24.99% interest in OJSC Severneftegazprom
(Russia region) due to loss of significant influence. For
further details refer to Note 2 – Accounting policies,
judgements and estimates, section ‘Impact of Russia’s
invasion of Ukraine and related significant estimates
and assumptions’.
The disclosures of equity-accounted investments in be-
low tables represent the interest of OMV in the compa-
nies.
The subsequent tables may contain rounding differ-
ences.
229
OMV ANNUAL REPORT 2022 / 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.
2022
2021
2020
1,811
28,240
30,051
2,137
2,461
27,611 26,988
29,749 29,449
(19,411)
10,640
(18,136)
(17,117)
11,613 12,333
2022
2021
2020
151
292
443
(76)
367
164
477
641
(99)
542
154
346
501
(76)
424
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
230
OMV ANNUAL REPORT 2022 / 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
2022
—
—
—
35
327
362
—
—
24
21
45
—
—
—
—
—
—
2
—
—
—
—
—
—
59
159
219
—
10
171
181
—
26
188
214
—
48
102
150
—
202
969
1,171
—
27
—
—
29
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
—
—
17
163
180
—
46
60
106
7
—
—
32
19
51
—
—
227
778
1,005
62
231
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
c) Results of operations of oil and gas producing
activities
The following tables represent only those revenues and
expenses which occur directly in connection with
OMV´s oil and gas producing operations. The results of
oil and gas activities should not be equated to Explora-
tion & Production net income since interest costs, gen-
eral corporate overhead costs, other costs and gas
Results of operations of oil and gas producing activities
In EUR mn
supply, marketing, trading and logistics in Western Eu-
rope are not allocated. Further information on OMV’s
operating segments is included in Note 4 – Segment
Reporting. Income taxes are hypothetically calculated,
based on the statutory tax rates and the effect of tax
credits on investments and loss carryforwards.
Romania
and Black
Sea
Austria
Russia North Sea
Middle
East and
Africa
New
Zealand
and
Australia Malaysia
Total
2022
5
3,281
3,286
(512)
(1,102)
(28)
(845)
(65)
(2,552)
734
(121)
(32)
959
927
(91)
(182)
(12)
(43)
(15)
(344)
583
(229)
206
—
206
—
—
—
(12)
(60)
(72)
135
1,394
3,530
4,924
(183)
—
(118)
(416)
(131)
(848)
4,077
931
1,927
2,858
(183)
(312)
2
(424)
(64)
(980)
1,878
(28)
(3,274)
(1,553)
225
236
461
(87)
(46)
(53)
46
(2)
(142)
319
(83)
302
—
302
(16)
(21)
(41)
3,032
9,933
12,965
(1,071)
(1,663)
(250)
(91)
(22)
(191)
111
(1,785)
(359)
(5,128)
7,837
(34)
(5,322)
613
354
107
803
325
237
77
2,516
—
—
3
—
56
—
—
59
2021
22
1,845
1,868
(477)
(404)
(43)
(499)
(70)
(1,493)
375
(649)
432
(218)
(78)
(66)
(5)
(102)
(14)
(265)
(483)
(59)
121
562
—
562
—
—
—
(70)
(329)
(399)
163
(27)
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
279
122
400
(81)
(39)
(18)
(127)
(5)
(270)
130
(38)
92
—
239
—
239
(24)
(13)
(65)
1,884
4,762
6,646
(950)
(658)
(281)
(101)
(21)
(223)
15
(1,526)
(597)
(4,012)
2,635
(6)
(1,740)
10
—
895
55
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
232
OMV ANNUAL REPORT 2022 / 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
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
228
102
330
(77)
(34)
(201)
(384)
(23)
(719)
(389)
107
209
—
209
(24)
(4)
(67)
(126)
(26)
(246)
(38)
(16)
1,529
2,125
3,654
(920)
(325)
(896)
(1,880)
(619)
(4,641)
(987)
224
(145)
(282)
(53)
(763)
16
—
—
31
1 Includes hedging effects; Austria Region includes hedging effects of centrally managed derivatives (2022: EUR (33) mn, 2021: EUR (675) mn, 2020:
EUR (37) 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. Income taxes 2022 in Austria included EU solidarity
contribution.
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.
233
OMV ANNUAL REPORT 2022 / 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, 2020
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
Revisions of
previous estimates
Purchases
Disposal
Extensions and
discoveries
Production
December 31, 2022
315.2
8.6
—
—
0.5
(25.5)
298.8
4.2
—
(21.4)
0.3
(23.0)
258.8
35.2
2.7
—
—
—
(3.8)
34.0
1.0
—
—
—
(3.6)
31.4
(8.4)
—
—
1.9
—
—
0.1
(20.9)
229.6
—
(3.3)
30.0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
51.1
213.2
11.6
8.5
—
—
—
(15.1)
44.5
17.2
—
—
—
(15.3)
46.4
69.7
—
—
—
(12.8)
270.2
30.3
—
—
—
(24.8)
275.7
0.2
—
—
—
(3.8)
8.0
7.6
—
—
0.8
(3.5)
12.9
7.4
1.0
—
—
—
(2.7)
5.7
4.9
—
(2.4)
—
(1.7)
6.5
633.7
90.7
—
—
0.5
(63.7)
661.2
65.2
—
(23.8)
1.0
(71.9)
631.7
15.8
—
—
32.3
—
—
1.1
—
—
0.4
—
—
43.1
—
—
—
(14.7)
47.6
—
(27.3)
280.6
—
(3.0)
11.0
—
(0.6)
6.2
0.1
(69.9)
605.0
Proved developed and undeveloped reserves – Equity-accounted investments
December 31, 2020
December 31, 2021
December 31, 2022
—
—
—
—
—
—
Proved developed reserves – Subsidiaries
December 31, 2020
December 31, 2021
December 31, 2022
273.1
234.2
206.6
33.9
31.4
30.0
Proved developed reserves – Equity-accounted investments
December 31, 2020
December 31, 2021
December 31, 2022
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18.4
17.5
16.0
32.7
40.7
39.4
172.7
189.2
234.5
—
—
—
15.7
14.7
15.4
—
—
—
5.6
6.0
9.2
—
—
—
—
—
—
5.7
1.6
1.7
—
—
—
18.4
17.5
16.0
523.8
503.2
521.4
15.7
14.7
15.4
234
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Gas
in bcf
Romania
and Black
Sea
Austria
Russia North Sea
Middle
East and
Africa
Proved developed and undeveloped reserves - Subsidiaries
January 1, 2020
1,020.7
177.8
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
Revisions of previous estimates
Purchases
Disposals
Extensions and discoveries
Production
December 31, 2022¹
61.3
—
—
7.2
(148.6)
940.7
76.2
—
(22.3)
1.5
(130.6)
865.5
68.1
—
—
1.6
(122.0)
813.2
2.5
—
—
—
(24.9)
155.3
17.7
—
—
—
(20.6)
152.4
15.2
—
—
—
(19.7)
147.9
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
422.8
58.3
—
—
—
(97.5)
383.6
7.8
—
—
—
(102.3)
289.2
144.4
—
—
—
(102.2)
331.4
61.9
27.5
—
—
—
(7.0)
82.4
80.7
—
—
—
(17.3)
145.8
(1.3)
—
—
—
(14.7)
129.8
New
Zealand
and
Australia Malaysia
Total
315.8
335.7
2,334.7
(62.8)
—
—
—
(57.7)
195.3
115.3
—
—
15.4
(51.8)
274.2
9.0
—
—
—
(47.1)
236.1
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
(7.9)
—
—
—
(60.0)
446.8
227.6
—
—
1.6
(365.6)
2,105.2
Proved developed and undeveloped reserves – Equity-accounted investments
December 31, 2020
December 31, 2021
December 31, 2022
—
—
—
—
—
—
Proved developed reserves – Subsidiaries
December 31, 2020
December 31, 2021
December 31, 2022
851.9
779.5
723.4
76.1
84.0
80.3
1,321.0
1,167.1
—
—
—
—
—
—
—
383.8
369.2
303.6
—
—
—
—
—
—
1,704.8
1,536.4
303.6
335.7
287.0
290.8
55.2
62.5
39.9
143.5
115.4
195.9
376.3
291.9
1,838.7
1,620.2
228.9
1,559.1
Proved developed reserves – Equity-accounted investments
December 31, 2020
December 31, 2021
December 31, 2022
—
—
—
—
—
—
1,003.1
1,090.7
—
—
—
—
293.5
278.9
288.3
—
—
—
—
—
—
1,296.6
1,369.7
288.3
1 2022: Including approximately 67.6 bcf of cushion gas held in storage reservoirs
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
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
235
OMV ANNUAL REPORT 2022 / 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 and equity-accounted investments
Romania
and Black
Sea
Austria
Russia North Sea
Middle
East and
Africa
New
Zealand
and
Australia Malaysia
Total
2022
29,864
7,435
—
14,937
26,611
2,051
2,248
83,145
(15,951)
(1,424)
(2,766)
(246)
—
—
(2,711)
(631)
(7,771)
(890)
(1,829)
(222)
(690)
(213)
(31,718)
(3,626)
12,489
4,422
—
11,594
17,950
(1,724)
(1,028)
—
(10,465)
(13,283)
0
132
1,345
47,800
(380)
(26,748)
10,765
3,394
(4,718)
(1,815)
6,048
1,579
—
—
—
—
1,129
4,667
132
965
21,053
(184)
(1,547)
213
(296)
(8,347)
945
—
3,120
451
345
—
669
12,705
—
451
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
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
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
236
OMV ANNUAL REPORT 2022 / 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
2020
New
Zealand
and
Australia Malaysia
Total
12,167
1,513
2,497
2,628
9,914
928
959
30,607
(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
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
2022
2021
2020
7,373
3,987
8,230
(4,102)
13,243
—
7
895
(344)
4,507
671
(9,593)
48
12,705
(2,262)
8,231
(67)
5
657
(269)
1,854
341
(4,935)
(168)
7,373
(3,397)
(7,040)
—
22
1,031
259
757
732
3,625
(232)
3,987
451
523
333
1 Contains movements in foreign exchange rates vs. the EUR. Furthermore 2022 was impacted by the change of consolidation method of the Russian operations
as well as by the reclassification of Yemen to held for sale.
237
OMV ANNUAL REPORT 2022 / FINANCIAL STATEMENTS
Vienna, March 9, 2023
The Executive Board
Alfred Stern m.p.
Chairman of the Executive Board
and Chief Executive Officer
Reinhard Florey m.p.
Chief Financial Officer
Martijn van Koten m.p.
Executive Vice President Fuels & Feedstock
Daniela Vlad m.p.
Executive Vice President Chemicals & Materials
Berislav Gaso m.p.
Executive Vice President Energy
238
FURTHER INFORMATION
239 — 250
240 — Consolidated Report on the Payments Made to Governments
247 — Abbreviations Definitions
250 — Contacts and Imprint
OMV ANNUAL REPORT 2022 / 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.
Activities within the scope of the report
Payments made by the 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 or a department, agency, or
undertaking that is controlled by that authority and
includes national oil companies.
In cases where a state-owned entity engages in activi-
ties outside its designated home jurisdiction, 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.
“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.
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
follows:
240
OMV ANNUAL REPORT 2022 / 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
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.
Taxes
Taxes levied on income, production, or profits of com-
panies are reported. Refunds will be netted against
payments and shown accordingly. Consumption taxes,
personal income taxes, sales taxes, property taxes,
and environmental taxes are not reported under the
regulation. Although there is a tax group in place, the
reported corporate income taxes for Austria relate en-
tirely to the extractive activities in Austria of OMV’s sub-
sidiaries, with no amounts being reported relating to
OMV’s non-extractive activities in Austria.
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, 2022, 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.
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.
241
OMV ANNUAL REPORT 2022 / 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, 2022.
Of the seven payment types that are required by the
Austrian regulations to be reported upon, OMV did not
pay any dividends, bonuses, or infrastructure improve-
ments that met the defined accounting directive defini-
tion, and therefore these categories are not shown.
Payments overview
In EUR 1,000
Country
Austria
Malaysia
Norway
New Zealand
Romania
Tunisia
United Arab Emirates
Yemen
Total
Production
entitlements
Taxes
Royalties
Fees
Total
—
393,267
—
—
—
—
—
44,369
437,637
37,418
36,234
2,172,496
66,518
1,052,059
31,255
628,147
—
4,024,127
166,805
104,314
—
50,741
418,654
17,665
298,809
4,222
1,061,210
—
27,265
1,509
7,985
24,760
201
1,556
2,327
65,603
204,223
561,081
2,174,004
125,244
1,495,473
49,122
928,512
50,919
5,588,577
No payments have been reported for Libya for the year
2022 as OMV was not the operator.
its subsidiaries are fully consolidated in OMV’s Group
financial statements.
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 or divestments during
2022.
242
OMV ANNUAL REPORT 2022 / 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
Malaysia
In EUR 1,000
Governments
Petroliam Nasional Berhad
Ketua Pengarah Hasil Dalam Negeri
PETRONAS Carigali Sdn Bhd
Total
Projects
Block SK408/SK310
Total
Production
entitlements
Taxes
Royalties
Fees
Total
—
—
—
—
—
—
37,418
37,418
37,418
37,418
99,858
66,947
166,805
166,805
166,805
—
—
—
—
—
99,858
104,365
204,223
204,223
204,223
Production
entitlements
Taxes
Royalties
Fees
Total
128,9021
—
264,3662
393,267
393,2674
393,267
—
36,234
—
36,234
36,234
36,234
104,3143
—
—
104,314
104,3143
104,314
27,265
—
—
27,265
27,265
27,265
260,481
36,234
264,366
561,081
561,081
561,081
1 Includes payments in kind for 2,843,354 bbl of oil equivalent valued using the average monthly price per boe
2 Includes payments in kind for 9,077,553 bbl of oil equivalent valued using the average monthly price per boe
3 Includes payments in kind for 3,430,118 bbl of oil equivalent valued using the average monthly price per boe
4 Includes payments in kind for 11,920,907 bbl of oil equivalent valued using the average monthly price per boe
Norway
In EUR 1,000
Governments
Oljedirektoratet
Skatteetaten
Miljødirektoratet
Total
Projects
Gulfaks
Gudrun
Aasta Hansteen
Norway exploration projects
Payments not attributable to projects
Total
Production
entitlements
Taxes
Royalties
Fees
Total
—
—
—
—
—
—
—
—
—
—
—
2,172,496
—
2,172,496
49
49
6
—
2,172,393
2,172,496
—
—
—
—
—
—
—
—
—
—
1,435
49
24
1,509
—
—
—
1,509
—
1,509
1,435
2,172,544
24
2,174,004
49
49
6
1,509
2,172,393
2,174,004
243
Production
entitlements
Taxes
Royalties
Fees
Total
—
—
—
—
—
—
—
—
—
—
66,518
—
—
66,518
—
—
66,518
—
—
—
—
66,518
66,518
50,741
—
50,741
10,418
9,411
30,912
—
—
50,741
7,813
171
7,985
20
7,899
13
52
—
7,985
58,554
171
125,244
10,439
17,310
30,925
52
66,518
125,244
Production
entitlements
Taxes
Royalties
Fees
Total
—
—
—
—
—
—
—
—
—
—
—
—
—
1,052,059
—
418,654
—
—
4,672
1,470,713
4,672
—
—
—
—
—
—
—
—
2,660
15,512
106
2,660
15,512
106
1,441
1,441
—
1,052,059
—
418,654
370
24,760
370
1,495,473
—
—
156,142
895,917
1,052,059
327,343
345
90,966
—
418,654
22,913
—
407
1,441
24,760
350,256
345
247,514
897,358
1,495,473
OMV ANNUAL REPORT 2022 / FURTHER INFORMATION
New Zealand
In EUR 1,000
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
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
244
OMV ANNUAL REPORT 2022 / 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
Fees
Total
—
—
—
—
—
—
—
30,040
1,216
—
—
31,255
31,255
31,255
—
—
12,9381
4,726
17,665
17,6651
17,665
201
—
—
—
201
201
201
30,241
1,216
12,938
4,726
49,122
49,122
49,122
1 Includes payments in kind for 148,529 bbl of oil equivalent 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
United Arab Emirates exploration projects
Total
Production
entitlements
Taxes
Royalties
Fees
Total
—
—
—
—
—
—
—
—
1,556
1,556
628,147
628,147
298,809
298,809
628,147
—
628,147
298,809
—
298,809
—
1,556
962
594
1,556
926,957
928,512
927,919
594
928,512
Yemen
In EUR 1,000
Governments
Ministry of Oil & Minerals
Total
Projects
Block S2
Yemen exploration projects
Total
Production
entitlements
44,3691
44,369
44,3691
—
44,369
Taxes
Royalties
Fees
Total
—
—
—
—
—
4,2222
4,222
4,2222
—
4,222
2,327
2,327
285
2,042
2,327
50,919
50,919
48,877
2,042
50,919
1 Includes payments in kind for 450,435 boe valued at prices set by the Yemen Crude Oil Marketing Directorate
2 Includes payments in kind for 42,865 boe valued at prices set by the Yemen Crude Oil Marketing Directorate
245
OMV ANNUAL REPORT 2022 / FURTHER INFORMATION
Vienna, March 9, 2023
The Executive Board
Alfred Stern m.p.
Chairman of the Executive Board
and Chief Executive Officer
Reinhard Florey m.p.
Chief Financial Officer
Martijn van Koten m.p.
Executive Vice President Fuels & Feedstock
Daniela Vlad m.p.
Executive Vice President Chemicals & Materials
Berislav Gaso m.p.
Executive Vice President Energy
246
OMV ANNUAL REPORT 2022 / 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)
CCS/CCS effects/inventory
holding gains/(losses)
Current Cost of Supply
Inventory holding gains and
losses represent the difference
between the cost of sales cal-
culated 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
CPI
Consumer price index
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.
E
ECL
Expected credit losses
E&P
Exploration & Production busi-
ness segment
EPS
Earnings Per Share; net in-
247
OMV ANNUAL REPORT 2022 / FURTHER INFORMATION
come attributable to stockhold-
ers divided by total weighted
average shares
IFRSs
International Financial Report-
ing Standards
MPPH
Mubadala Petroleum and Pet-
rochemicals Holding Company
L.L.C.
EPSA
Exploration and Production
Sharing Agreement
Equity ratio
Equity divided by balance sheet
total, expressed as a percent-
age
F
F&F
Fuels & Feedstock business
segment
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
248
IMF
International Monetary Fund
K
kbbl/d
Thousand barrels per day
kboe
Thousand barrels of oil equiva-
lent
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
MW
Megawatt
MWh
Megawatt hour
N
n.a.
Not available
NCI
Non-controlling interests
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, and total
net working capital less provi-
sions for decommissioning and
restoration 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
OMV ANNUAL REPORT 2022 / FURTHER INFORMATION
related to financing
NOPAT is a KPI that shows the
financial performance after tax,
independent of the financing
structure of the company.
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
the OMV Group’s reported fi-
nancial performance.
T
t
Metric ton
toe
Metric ton of oil equivalent
TSR
Total Shareholder Return
TWh
Terawatt hour
U
UAE
United Arab Emirates
O
ÖBAG
Österreichische Beteiligungs
AG
OCI
Other comprehensive income
OECD
Organisation for Economic Co-
operation and Development
OTC
Over-the-counter
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-
249
OMV ANNUAL REPORT 2022 / FURTHER INFORMATION
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
Further publications
OMV Factbook
▸ www.omv.com/factbook
OMV Sustainability Report
▸ www.omv.com/sustainability-report
Photos
Title OMV Schwechat Technikum: Aron Bartolome
Pages 10/12/13/15: Andreas Jakwerth
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.
Notes:
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. Conse-
quently, the actual results may differ materially from those ex-
pressed or implied by the forward-looking statements. There-
fore, recipients of this report are cautioned not to place undue
reliance on these forward-looking statements. Neither OMV nor
any other person assumes responsibility for the accuracy and
completeness of any of the forward-looking statements con-
tained in this report. OMV disclaims any obligation and does
not intend to update these forward-looking statements to reflect
actual results, revised assumptions and expectations, and fu-
ture developments and events. This report does not contain
any recommendation or invitation to buy or sell securities in
OMV.
250
OMV ANNUAL REPORT 2022 / FURTHER INFORMATION
251
OMV Aktiengesellschaft
Trabrennstrasse 6 – 8
1020 Vienna, Austria
Tel. + 43 1 40440-0
www.omv.com
www.omv.com/socialmedia
252