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16 – Equity-accounted investments

Material associates and joint ventures

Abu Dhabi Polymers Company Limited (Borouge), registered in Abu Dhabi, is a leading provider of innovative, value-creating plastic solutions for energy, infrastructure, automotive, healthcare and agriculture industries as well as advanced packaging applications. As OMV, with its 40% interest (2020: 40%) does not have joint control over Abu Dhabi Polymers Company Limited (Borouge), the company is accounted for as an associated company.

Bayport Polymers LLC, registered in Pasadena (incorporated in Wilmington), is currently building a polyethylene facility as well as an ethane steam cracker with the objective of supplying the abundantly available and competitively priced ethane in the United States to its polyethylene units. As OMV has joint control over Bayport Polymers LLC (50/50 share split), it accounts the company as joint venture.

OMV also holds a 15% (2020: 15%) interest in Abu Dhabi Oil Refining Company, registered in Abu Dhabi, which runs a refinery hub with integrated petrochemicals. According to the contractual agreement between the shareholders, OMV has strong participation rights which represent significant influence as per  28 definition. 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 . This led to an impairment of EUR 669 mn. For further details please refer to Note 7 – Depreciation, amortization, impairments and write-ups.

The above mentioned companies are not listed on public exchanges thus quoted market prices do not exist. The tables below contain summarized financial information for the material associates and joint ventures.

Statement of comprehensive income

In EUR mn

 

 

 

 

 

 

 

2021

2020

 

Associates

Joint Venture

Associates

Joint Venture

 

Abu Dhabi Oil Refining Company

Abu Dhabi Polymers Company Limited (Borouge)

Bayport Polymers LLC

Abu Dhabi Oil Refining Company

Abu Dhabi Polymers Company Limited (Borouge)1

Bayport Polymers LLC1

Sales revenue

21,760

4,630

588

11,361

715

75

Net income for the year

(233)

1,139

73

(1,296)

64

14

Other comprehensive income

1

(9)

Total comprehensive income

(233)

1,140

73

(1,296)

55

14

Group’s share of comprehensive income

(35)

456

36

(194)

22

7

Dividends distributed

1,876

21

21

1

In 2020 income statement and other comprehensive income for Abu Dhabi Polymers Company Limited (Borouge) and Bayport Polymers LLC represent amounts since inclusion in OMV Group on October 29, 2020.

Statement of financial position

In EUR mn

 

 

 

 

 

 

 

2021

2020

 

Associates

Joint Venture

Associates

Joint Venture

 

Abu Dhabi Oil Refining Company

Abu Dhabi Polymers Company Limited (Borouge)

Bayport Polymers LLC

Abu Dhabi Oil Refining Company

Abu Dhabi Polymers Company Limited (Borouge)

Bayport Polymers LLC

Non-current assets

17,905

6,696

3,379

17,207

6,422

2,543

Current assets

2,979

1,826

163

4,137

1,515

332

Non-current liabilities

6,100

3,603

1,913

4,943

335

1,515

Current liabilities

1,093

558

206

3,311

461

76

Equity

13,691

4,361

1,423

13,089

7,142

1,284

Group’s share

2,054

1,744

711

1,963

2,857

642

Goodwill

1,917

64

1,770

OMV Group adjustments

(873)

400

(23)

(280)

436

(22)

Carrying amount of investment

1,181

4,061

688

1,747

5,062

620

Carrying amount reconciliation

In EUR mn

 

 

 

 

 

 

 

2021

2020

 

Associates

Joint Ventures

Associates

Joint Ventures

 

Abu Dhabi Oil Refining Company

Abu Dhabi Polymers Company Limited (Borouge)

Bayport Polymers LLC

Abu Dhabi Oil Refining Company

Abu Dhabi Polymers Company Limited (Borouge)

Bayport Polymers LLC

 

 

 

 

 

 

 

January 1

1,747

5,062

620

2,109

Changes in the consolidated group

5,290

515

Additions and other changes

143

Currency translation differences

138

419

53

(168)

(250)

(24)

Net income

(35)

456

36

(194)

26

7

Other comprehensive income

0

(3)

Dividends

(1,876)

(21)

(21)

Impairment

(669)

December 31

1,181

4,061

688

1,747

5,062

620

Individually immaterial associates and joint ventures

OMV holds 55.6% (2020: 55.6%) of Erdöl-Lagergesellschaft 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 assembly, OMV does not have control over ELG. The significant decisions on the financial and operating policies are delegated to the standing shareholder’s committee in which a quorum of two thirds of the share capital is required for decisions.

OMV exercises joint control over Abu Dhabi Petroleum Investments LLC (ADPINV, OMV’s interest 25%, 2020: 25%), registered in Abu Dhabi, and Pak-Arab Refinery Limited (PARCO; indirect interest of OMV amounts to 10%, 2020: 10%), registered in Karachi, and accounts both investments at-equity. ADPINV is a holding company for its 40% interest in PARCO. As unanimous consent of the parties is required for decisions about relevant activities and OMV has rights to the based on the legal structure, OMV classified the companies as joint ventures according to 11.

Furthermore, OMV has a 10% interest (2020: 10%) in Petroleum Company Limited, registered in Road Town, British Virgin Islands, which is involved in exploration and production of hydrocarbons in the Kurdistan Region of Iraq. According to the contractual agreement between OMV and Pearl Petroleum Company Limited (Pearl), OMV has significant influence within the meaning of IAS 28, as unanimous consent is required for some strategic decisions. Therefore Pearl is accounted for using the equity method although OMV’s share is just 10%.

OMV also holds 50% share (2020: 50%) in Borouge Pte.Ltd., based in Singapore, which is responsible for marketing and sales of the products produced by Abu Dhabi Polymers Company Limited (Borouge). Even though OMV holds a 50% interest in Borouge Pte. Ltd., OMV has no joint control and thus accounts for it as an associated company.

In June 2021, OMV subscribed through Borealis Group to a new share issue, thus acquiring 10% in Renasci N.V., a company incorporated in Belgium. Renasci N.V. is principally engaged in the development of the 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, even though it only holds 10% of the voting rights. Therefore, the investment is accounted for as an associated company.

As per September 30, 2021, OMV finalized the sale of its 40% share in SMATRICS GmbH & Co KG (based in Vienna) and its 40% share in E-Mobility Provider Austria GmbH (based in Vienna) to VERBUND AG.

For further details, please refer to Note 38 – Direct and indirect investments of OMV Aktiengesellschaft.

Statement of comprehensive income for individually immaterial associates and joint ventures – Group’s share

In EUR mn

 

 

 

 

 

2021

2020

 

Associates

Joint ventures

Associates

Joint ventures

Sales revenue

8,557

273

1,177

136

Net income for the year

129

14

28

0

Other comprehensive income

1

(2)

Total comprehensive income

130

14

25

0

Carrying amount reconciliation for individually immaterial associates and joint ventures

In EUR mn

 

 

 

 

 

2021

2020

 

Associates1

Joint ventures

Associates1

Joint ventures

January 1

802

91

553

150

Currency translation differences

59

(2)

(69)

(9)

Changes in consolidated Group

25

(15)

322

7

Additions and other changes

13

Net income

129

14

28

0

Other comprehensive income

1

(2)

Disposals and other changes

(55)

(1)

(54)

Dividends distributed

(92)

(42)

(5)

December 31

868

89

802

91

1

Includes associated companies accounted at-cost

IASs
International Accounting Standards
CGU
Cash generating unit
net assets
Intangible assets, property, plant and equipment, equity-accounted investments, investments in other companies, loans granted to equity-accounted investments, total net working capital, less provisions for decommissioning and restoration obligations
IFRSs
International Financial Reporting Standards
Pearl
Pearl Petroleum Company Limited