Chemicals

The Company supplied services and products to customers around the globe through Borealis and its two joint ventures: Borouge (with ADNOC, based in the UAE) and Baystar (with TotalEnergies, based in the United States). In 2025, a major milestone was achieved with the signing of the binding agreement for the combination of Borealis and Borouge into Borouge Group International and the subsequent acquisition of NOVA Chemicals. Post-closing, the new entity, Borouge Group International, will be equally held and jointly controlled by OMV and ADNOC.

Financial Performance

The clean Operating Result increased in 2025 to EUR 784 mn (2024: EUR 459 mn), mainly because of the reclassification of the Borealis Group (excluding Borouge investments) to held for sale. Additional support came from improved olefin margins, while negative inventory effects, a lower light feedstock advantage, and increased market discounts were partly offsetting.

The contribution of OMV base chemicals grew substantially, mainly due to improved olefin indicator margins. A lower steam cracker utilization rate and higher market discounts were compensating in part. The ethylene indicator margin Europe grew by 13% to EUR 569/t (2024: EUR 505/t), while the propylene indicator margin Europe increased by 16% to EUR 445/t (2024: EUR 384/t). This was primarily due to lower feedstock costs, as naphtha prices declined. While the weak economic environment led to several cracker closures in the European market, import pressure persisted and the market faced further challenges to the recovery following ongoing tariffs and slowing economic growth.

At 82%, the utilization rate of the European steam crackers operated by OMV and Borealis was 2 percentage points lower than in the prior-year period (2024: 84%), but still around 10 percentage points higher than the European average. 2025 experienced lower utilization rates at the Schwechat, Stenungsund, and Burghausen steam crackers, while the utilization rate at the Porvoo cracker increased.

The contribution of Borealis excluding JVs in 2025 grew to EUR 447 mn (2024: EUR 247 mn), mostly driven by the stop of depreciation and amortization of non-current assets. Negative inventory effects weighed on the result in 2025 as they were substantially more pronounced than in 2024. The contribution of the base chemicals business declined sharply, mostly as a result of a weaker light feedstock advantage, negative inventory effects, higher market discounts, and lower phenol margins. Improved olefin indicator margins in Europe were only partly compensating. The polyolefin contribution came in lower, mostly due to negative inventory effects, increased market discounts, and higher fixed costs. The European polyolefins market remained subdued in 2025, weighed down by weak macroeconomic sentiment, policy uncertainty, and cautious buying behavior from customers. Overall demand levels were broadly unchanged versus 2024, stable but anemic, amid persistent cost of living pressures. The polyethylene indicator margin Europe increased by 7% to EUR 461/t (2024: EUR 432/t), supported by heightened geopolitical uncertainty during the year, including concerns around potential EU tariffs on US imports, which temporarily strengthened pricing power. In contrast, the polypropylene indicator margin Europe declined by 10% to EUR 361/t (2024: EUR 402/t), reflecting persistently weak underlying demand in key end-use sectors and sustained import availability, resulting in continued margin erosion over the year. Polyethylene sales volumes excluding JVs increased by 7%, while polypropylene sales volumes excluding JVs grew by 4% compared to 2024. Sales volumes in 2025 came in higher mainly due to increased sales of Borouge-sourced volumes.

The contribution of Borealis JVs, accounted for as OMV’s share of clean net income of the at-equity consolidated companies, increased in 2025 to EUR 248 mn (2024: EUR 180 mn). This was mainly the result of Baystar no longer being consolidated (previously consolidated at equity) because of its reclassification to the disposal group as of March 2025. The contribution from Borouge declined in 2025, mainly as a result of reduced average market benchmark prices due to a less favorable market environment in Asia. Polyethylene sales volumes from the JVs remained essentially on a similar level to 2024, while polypropylene sales volumes from the JVs were 2% higher.

Net special items in 2025 amounted to EUR –75 mn (2024: EUR –55 mn) and were mainly related to personnel restructuring and expenses related to Borouge Group International. The Operating Result from discontinued operations grew markedly in 2025 to EUR 335 mn (2024: EUR 52 mn), while the Operating Result from continuing operations increased slightly to EUR 374 mn (2024: EUR 352 mn).

Capital expenditure in Chemicals decreased to EUR 971 mn (2024: EUR 1,081 mn), mainly as a result of lower non-cash effective CAPEX related to leases as well as the acquisition of Integra Plastics in Bulgaria in 2024. Besides ordinary ongoing business investments, organic capital expenditure in 2025 was predominantly related to Borealis’ construction of the new PDH plant in Kallo, the construction of the sorting facility for chemical recycling in Walldürn, and investments fostering growth in specialty products.