Accounting Policy
Inventories are recognized at the lower of cost and net realizable value. Costs incurred are generally determined based on the individual costs for goods that are not interchangeable or the average price method. Costs of production comprise directly attributable material and labor costs as well as fixed and variable indirect material and production overhead costs. In refineries, a carrying capacity approach is applied, according to which the production costs are allocated to product groups on the basis of their relative market values at the end of the period.
In EUR mn |
|
|
|
2025 |
2024 |
|---|---|---|
Crude oil |
461 |
652 |
Natural gas |
295 |
582 |
Petrochemical feedstock |
– |
308 |
Other raw materials and supplies |
327 |
416 |
Refined petroleum products (including work in progress) |
825 |
1,041 |
Petrochemical products (including work in progress) |
– |
853 |
Other finished products |
55 |
84 |
Inventories |
1,962 |
3,936 |
The line item “Purchases (net of inventory variation)” in OMV’s Consolidated Income Statement includes costs of goods and materials, inventory changes, and inventory valuations. In 2025, net expenses from inventory valuation amounting to EUR 25 mn were recognized, compared to net income of EUR 291 mn in 2024. The figure in 2025 was mainly related to crude oil and petroleum products in progress, and in 2024 mainly to natural gas in storage.
The decrease in inventories was mainly related to the reclassification of Borealis disposal group to “held for sale.” For more information, see Note 4 – OMV and ADNOC to Establish a New Polyolefins Joint Venture.