20 – Assets and liabilities held for sale

Chemicals & Materials

As of December 31, 2022, assets held for sale and liabilities associated with assets held for sale in Chemicals & 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 fertilizer, technical nitrogen and melamine products. This led to the reclassification of the disposal group to assets and liabilities held for sale without having an impact on the income statement at that time. The Borealis Group’s share in fertilizer production sites in the Netherlands 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 Borealis 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 related sanctions caused Borealis to decline a binding offer received from EuroChem in February 2022 and to consider other options. On July 28, 2022, Borealis accepted a new binding offer from AGROFERT, a.s. which was received on June 2, 2022, after the mandatory information and consultation procedures with employee 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 remains subject to certain closing conditions and regulatory approvals.

In 2022 a write-up was recognized based on the offer received from AGROFERT, a.s. while in 2021 impairment loss was recognized based on the binding offer from EuroChem. For further details see Note 7 – Depreciation, amortization, impairments and write-ups.

OMV determines the net position of emission certificates for the Group. As of December 31, 2022, an obligation to surrender 2,133,124 emission certificates (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 acquisition 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 income 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 accounted investments.

As of December 31, 2022, assets held for sale and liabilities 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 reclassification to assets and liabilities to held for sale. This reclassification did not lead to an impairment loss. On June 8, 2021 OMV and MOL Group reached an agreement 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 expected in 2023.

Exploration & Production

As of December 31, 2022, assets held for sale and liabilities associated with assets held for sale in Exploration & Production were entirely related to Yemen operating entities. During 2022, OMV decided to sell its relevant 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 reclassification, 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 liabilities associated with assets held for sale in Exploration & Production entirely consisted of a 69% interest in Maari field, located in New Zealand’s offshore Taranaki Basin. After ongoing engagement with Jadestone Energy 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 reclassified back from the assets held for sale and liabilities associated with asset held for sale.