Financial Review of the Year
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2023 |
2022 |
Δ |
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Sales revenues |
in EUR mn |
39,463 |
62,298 |
–37% |
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Clean CCS Operating Result1 |
in EUR mn |
6,024 |
11,175 |
–46% |
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Clean Operating Result Chemicals & Materials1 |
in EUR mn |
94 |
1,457 |
–94% |
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Clean CCS Operating Result Fuels & Feedstock1 |
in EUR mn |
1,651 |
1,810 |
–9% |
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Clean Operating Result Energy1 |
in EUR mn |
4,357 |
8,001 |
–46% |
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Clean Operating Result Corporate & Other1 |
in EUR mn |
–51 |
–50 |
–2% |
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Consolidation: elimination of inter-segmental profits |
in EUR mn |
–27 |
–43 |
38% |
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Clean CCS Group tax rate |
in % |
43 |
48 |
–5 |
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Clean CCS net income1 |
in EUR mn |
3,421 |
5,807 |
–41% |
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Clean CCS net income attributable to stockholders of the parent1,2 |
in EUR mn |
2,593 |
4,394 |
–41% |
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Clean CCS EPS1 |
in EUR |
7.93 |
13.44 |
–41% |
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Special items3 |
in EUR mn |
–668 |
861 |
n.m. |
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thereof Chemicals & Materials |
in EUR mn |
–214 |
582 |
n.m. |
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thereof Fuels & Feedstock |
in EUR mn |
146 |
426 |
–66% |
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thereof Energy |
in EUR mn |
–586 |
–111 |
n.m. |
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thereof Corporate & Other |
in EUR mn |
–14 |
–36 |
62% |
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CCS effects: inventory holding gains (+)/losses (−) |
in EUR mn |
–130 |
210 |
n.m. |
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Operating Result Group |
in EUR mn |
5,226 |
12,246 |
–57% |
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Operating Result Chemicals & Materials |
in EUR mn |
–120 |
2,039 |
n.m. |
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Operating Result Fuels & Feedstock |
in EUR mn |
1,671 |
2,438 |
–31% |
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Operating Result Energy |
in EUR mn |
3,771 |
7,890 |
–52% |
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Operating Result Corporate & Other |
in EUR mn |
–65 |
–86 |
24% |
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Consolidation: elimination of inter-segmental profits |
in EUR mn |
–31 |
–35 |
12% |
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Net financial result |
in EUR mn |
–70 |
–1,481 |
95% |
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Group tax rate |
in % |
58 |
52 |
6 |
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Net income |
in EUR mn |
1,917 |
5,175 |
–63% |
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Net income attributable to stockholders of the parent2 |
in EUR mn |
1,480 |
3,634 |
–59% |
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Earnings Per Share (EPS) |
in EUR |
4.53 |
11.12 |
–59% |
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Cash flow from operating activities |
in EUR mn |
5,709 |
7,758 |
–26% |
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Free cash flow before dividends |
in EUR mn |
2,682 |
5,792 |
–54% |
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Free cash flow after dividends |
in EUR mn |
349 |
4,333 |
–92% |
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Organic free cash flow before dividends |
in EUR mn |
2,272 |
4,891 |
–54% |
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Organic free cash flow after dividends |
in EUR mn |
–61 |
3,432 |
n.m. |
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Leverage ratio |
in % |
8 |
8 |
0 |
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Capital expenditure4 |
in EUR mn |
3,965 |
4,201 |
–6% |
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Organic capital expenditure5 |
in EUR mn |
3,748 |
3,711 |
1% |
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Clean CCS ROACE |
in % |
12 |
19 |
–7 |
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ROACE |
in % |
7 |
17 |
–11 |
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Notes to key financials
Clean CCS Operating Result
In EUR mn |
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2023 |
2022 |
Δ |
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Clean CCS Operating Result1 |
6,024 |
11,175 |
–46% |
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Special items |
–668 |
861 |
n.m. |
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thereof: personnel restructuring |
–6 |
–8 |
27% |
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thereof: unscheduled depreciation/write-ups |
–44 |
58 |
n.m. |
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thereof: asset disposal |
208 |
724 |
–71% |
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thereof: other |
–827 |
87 |
n.m. |
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CCS effects: inventory holding gains (+)/losses (–) |
–130 |
210 |
n.m. |
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Operating Result Group |
5,226 |
12,246 |
–57% |
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Operating Result adjusted for special items and CCS effects, details of which are depicted in the table on the left.
2023 performance:
With a result of slightly over EUR 6 bn, OMV achieved the second best of all time clean CCS Operating Result in 2023. It declined substantially from the 2022 result by 46% due to significantly lower market prices. All three business segments had a lower contribution compared to 2022 following a less favorable market environment.
Group tax rate adjusted for special items and CCS effects. It represents the average rate at which the Group’s profit before tax is taxed.
2023 performance:
Coming in at 43%, the clean CCS Group tax rate decreased by 5 percentage points compared to 48% in the previous year, stemming from a decreased share in the overall Group profits of the Energy segment companies located in countries with a high tax regime.
Net income attributable to stockholders of the parent, adjusted for the after-tax effect of special items and CCS.
2023 performance:
The clean CCS net income attributable to stockholders of the parent in the amount of EUR 2.6 bn decreased markedly compared to EUR 4.4 bn in 2022 following the Operating Result.
The leverage ratio is calculated by dividing net debt incl. leases through equity plus net debt incl. leases.
2023 performance:
OMV’s strong financial performance resulted in maintaining the leverage ratio in 2023 at the same level as last year at 8%. This exhibits OMV’s financial strength despite ongoing investing activities and a record dividend paid to shareholders.
The clean CCS ROACE (%) is calculated as Net Operating 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.
2023 performance:
Driven by the strong operational performance, OMV was able to deliver a clean CCS NOPAT of EUR 3.3 bn in 2023, compared to EUR 5.7 bn in 2022. Even though the average capital employed decreased also by 6%, the substantially lower clean CCS NOPAT led to a decrease in clean CCS ROACE from 19% in 2022 to 12% in 2023.
Amount of cash the OMV Group generates through its ordinary business activities which excludes effects from net working capital positions
2023 performance:
Operating cash flow excl. net working capital effects came in at EUR 4.6 bn below the EUR 9.8 bn from 2022, due to the overall weaker market environment.
The organic free cash flow is cash flow from operating activities less cash flow from investing activities excluding disposals and material inorganic cash flow components (e.g., acquisitions).
2023 performance:
An organic free cash flow before dividends of EUR 2.3 bn was recorded in 2023, 54% below prior year’s level.
The amount is defined as capital expenditure including capitalized exploration and appraisal expenditure, excluding equity injections into at-equity and fully consolidated companies, acquisitions, and contingent considerations.
2023 performance:
Organic capital expenditure was stable at EUR 3.7 bn as the increase in investments in Fuels & Feedstock and Energy was offset by a decrease in investments in Chemicals & Materials.
Inventory holding gains and losses represent the difference between the cost of sales calculated using the current cost of supply and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances in case the net realizable value of the inventory is lower than its cost. In volatile energy markets, measurement of the costs of petroleum products 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 effect represents the difference between the charge to the income statement for inventory on a weighted average basis (adjusted for the change in valuation allowances related to net realizable value) and the charge based on the current cost of supply. The current cost of supply is calculated monthly using data from supply and production systems at the Refining & Marketing level.
The Group clean CCS Operating Result is calculated by adding the clean CCS Operating Result of Refining & Marketing, the clean Operating Result of other segments and the reported consolidation effect adjusted for changes in valuation allowances, in case the net realizable value of the inventory is lower than its cost.
Net income + Net interest related to financing – Tax effect of net interest related to financing.
NOPAT is a KPI that shows the financial performance after tax, independent of the financing structure of the company.