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20 – Financial assets

Financial assets

In EUR mn

 

 

 

 

 

 

 

Valued at fair value through profit or loss

Valued at fair value through other com­prehensive income

Valued at amortized cost

Total
carrying
amount

thereof
short-term

thereof
long-term

 

 

 

 

 

 

 

 

2023

Trade receivables from contracts with customers

99

2,571

2,670

2,670

Other trade receivables

785

785

785

Total trade receivables

99

3,356

3,455

3,455

Equity investments

1

56

57

57

Investment funds

28

28

28

Bonds

285

285

245

39

Derivatives designated and effective as hedging instruments

52

52

50

2

Other derivatives

890

890

692

198

Loans

910

910

5

905

Other sundry financial assets

2

1,610

1,612

1,139

474

Total other financial assets

921

108

2,805

3,834

2,130

1,704

Financial assets

1,020

108

6,160

7,288

5,584

1,704

 

 

 

 

 

 

 

 

2022

Trade receivables from contracts with customers

136

3,351

3,487

3,487

Other trade receivables

735

735

735

Total trade receivables

136

4,086

4,222

4,222

Equity investments

24

19

42

42

Investment funds

26

26

26

Bonds

52

52

32

20

Derivatives designated and effective as hedging instruments

10

370

380

263

116

Other derivatives

2,867

2,867

2,114

753

Loans

711

711

82

628

Other sundry financial assets

1,850

1,850

1,437

413

Total other financial assets

2,927

389

2,612

5,928

3,929

1,999

Financial assets

3,063

389

6,699

10,150

8,151

1,999

Financial assets at fair value through profit or loss mainly consisted of financial assets held for trading.

Starting March 1, 2022, investments in the Russian entities JSC GAZPROM YRGM Development (YRGM) and OJSC Severneftegazprom (SNGP) were accounted for at fair value through profit or loss according to IFRS 9 following their deconsolidation, which was triggered by the Russian war on Ukraine.

As of December 31, 2022, the fair value of the investments in YRGM and SNGP was further reduced to a book value of EUR 23 , leading to an additional loss of EUR 370 mn in the financial result.

On December 19, 2023, the Russian President signed a decree regarding the Yuzhno-Russkoye field. According to this decree, OMV’s shareholdings in Russian entities and consequently its interests in the gas field are to be transferred to new Russian companies. Those companies will ultimately be held by the insurance company JSC SOGAZ and Gazprom. The proceeds from the transfer of the OMV interest to JSC SOGAZ are to be paid into a Russian special account. At first glance, this decree equals a unilateral and irreversible expropriation by seizing the interests of OMV in return for compensation that will be determined by Russia and placed in accounts that will eventually be under Russian control. OMV is examining the current facts and further developments and considering steps to protect its rights.

Based on this latest development and the unchanged situation with regard to the Russian war on Ukraine, OMV considers its investments in YRGM and SNGP to have a fair value of nil as of December 31, 2023, leading to a further negative fair value adjustment in the financial result for 2023 in the amount of EUR 23 mn.

The position loans in 2023 included loans and the related accrued interests under a member loan agreement with Bayport Polymers LLC in the amount of EUR 701  (2022: EUR 657 mn). In addition, the position included EUR 155 mn from a drawdown and the related interest accrued from a shareholder loan agreement (SHL) entered into on February 3, 2023, with Borealis AG as the lender and Borouge 4 LLC as the borrower to part finance Borouge 4 LLC’s requirements for Borouge 4. The SHL is structured as a facility with a five-year tenor. Borealis retains the right to accelerate the prepayment of the outstanding amounts at the point of reintegration into Borouge PLC.

Other sundry financial assets included expenditure recoverable from the Romanian State amounting to EUR 399 mn (2022: EUR 326 mn) related to obligations for decommissioning and environmental costs in OMV Petrom SA. The receivables consisted of EUR 391 mn (2022: EUR 318 mn) for costs relating to decommissioning and EUR 8 mn (2022: EUR 8 mn) for costs relating to environmental remediation.

On October 2, 2020, as party in the privatization agreement, OMV AG initiated arbitration proceedings against the Romanian Ministry of Environment, in accordance with the ICC Rules, regarding certain claims unpaid by the 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 Environment to reimburse to OMV Petrom SA the amount of EUR 31 mn and related interest. In October 2022, the Ministry of Environment challenged the award at the Paris Court of Appeal, a procedure that was still ongoing as of December 31, 2023.

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 ICC Rules, which have been further consolidated in a single case, regarding certain claims unpaid by the Ministry of Environment in relation to well decommissioning and environmental remediation works. Such claims amount to EUR 47 mn and as of December 31, 2023, the arbitration procedure is ongoing.

In 2022 this position also included receivables related 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, which was fully paid in 2023.

Additionally, other sundry financial assets contained receivables towards partners in the Exploration & Production business as well as seller participation notes and complementary notes in Carnuntum DAC (see Note 38 – Unconsolidated structured entities – for further details).

Equity investments measured at FVOCI

In EUR mn

 

 

 

 

 

 

 

2023

2022

Investment

Fair value

Fair value adjustment through OCI

Dividend recognized as income

Fair value

Fair value adjustment through OCI

Dividend recognized as income

Eavor Technologies Inc.

34

Hycamite TCD Technologies Ltd.

5

APK Pensionskasse AG

2

–1

2

–0

0

Wiener Börse AG

6

–1

1

7

3

1

FSH Flughafen-Schwechat-Hydranten-Gesellschaft GmbH & Co OG

2

2

0

WAV Wärme Austria VertriebsgmbH

1

2

0

Bockatech Ltd.

5

3

Everen Limited

0

3

0

4

Other

2

0

2

0

Equity investments measured at FVOCI

56

–2

4

19

2

6

Probability of default

 

 

 

 

 

Equivalent to external credit rating

Probability of default

 

 

2023

2022

Risk Class 1

AAA, AA+, AA,
AA–, A+, A, A–

0.13%

0.13%

Risk Class 2

BBB+, BBB, BBB–

0.44%

0.44%

Risk Class 3

BB+, BB, BB–

1.18%

1.18%

Risk Class 4

B+, B, B–

8.52%

8.52%

Risk Class 5

CCC/C

29.54%

29.54%

Risk Class 6

SD/D

100.00%

100.00%

For further details on credit risk management see Note 30 – Risk Management.

Impairment of trade receivables

In EUR mn

 

 

 

2023

2022

January 1

65

51

Amounts written off

–3

–4

Net remeasurement of expected credit losses

41

23

Currency translation differences

–1

0

Reclassification to assets held for sale

–1

–4

Changes in the consolidated group

–0

–1

December 31

101

65

The net remeasurement of expected credit losses was mainly related to the trade receivables from contracts with customers and increased due to re-evaluation of receivables in Tunisia.

Credit quality of trade receivables

In EUR mn

 

 

 

2023

2022

Risk Class 1

1,155

1,457

Risk Class 2

855

1,239

Risk Class 3

873

927

Risk Class 4

252

333

Risk Class 5

268

153

Risk Class 6

53

42

Total gross carrying amount

3,457

4,151

Expected credit losses

–101

–65

Total

3,356

4,086

Impairments of other financial assets at amortized cost

In EUR mn

 

 

 

 

 

12-month ECL

Lifetime ECL not credit impaired

Lifetime ECL credit
impaired

Total

 

 

 

2023

January 1

10

44

1,311

1,365

Amounts written off

–1

–5

–6

Net remeasurement of expected credit losses

4

–11

140

133

Currency translation differences

–0

–1

–3

–5

December 311, 2

13

32

1,442

1,487

 

 

 

 

 

 

2022

January 1

9

31

211

251

Amounts written off

0

–5

–5

Net remeasurement of expected credit losses

2

12

1,100

1,114

Currency translation differences

0

2

4

6

December 311, 2

10

44

1,311

1,365

1

“Lifetime ECL credit impaired” included fully impaired gross carrying amount of loan receivables including accrued interest related to the financing agreements for the Nord Stream 2 pipeline project in the amount of EUR 1.2 bn (2022: EUR 1.1 bn).

2

“12-month ECL” included an amount of EUR 1 mn (2022: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 8 mn (2022: EUR 9 mn) related to expenditure recoverable from the Romanian State, which are outside the scope of IFRS 9.

Credit quality of other financial assets at amortized cost

In EUR mn

 

 

 

 

 

 

 

 

 

12-month ECL

Lifetime ECL not credit impaired

Lifetime ECL credit impaired

Total

12-month ECL

Lifetime ECL not credit impaired

Lifetime ECL credit impaired

Total

 

 

 

 

2023

2022

Risk Class 1

826

826

1,014

86

80

1,180

Risk Class 21

751

8

759

702

9

710

Risk Class 3

1,140

94

77

1,312

826

2

827

Risk Class 4

2

2

4

4

Risk Class 52

36

1,245

1,281

35

1,112

1,147

Risk Class 6

112

112

0

109

109

Total gross carrying amount

2,755

94

1,442

4,292

2,580

86

1,311

3,977

Expected credit losses3

–13

–32

–1,442

–1,487

–10

–44

–1,311

–1,365

Total

2,742

62

2,805

2,570

42

2,612

1

“12-month ECL” included an amount of EUR 401 mn (2022: EUR 327 mn) and “Lifetime ECL credit impaired” an amount of EUR 8 mn (2022: EUR 9 mn) related to expenditure recoverable from the Romanian State, which are outside the scope of IFRS 9.

2

“Lifetime ECL credit impaired” included fully impaired gross carrying amount of loan receivables including accrued interests related to the financing agreements for the Nord Stream 2 pipeline project in the amount of EUR 1.2 bn (2022: EUR 1.1 bn).

3

“12-month ECL” included an amount of EUR 1 mn (2022: EUR 1 mn) and “Lifetime ECL credit impaired” an amount of EUR 8 mn (2022: EUR 9 mn) related to expenditure recoverable from the Romanian State, which are outside the scope of IFRS 9.

mn
Million
mn
Million
CAPEX
Capital Expenditure