29. Risk Management

Capital Risk

OMV’s financial steering framework is built upon the principles of operational efficiency, capital efficiency, financing efficiency, and sustainable portfolio management. With the focus on strengthening OMV’s balance sheet, delivering a positive free cash flow, and growing its profitability, the financial steering framework represents sustainable, risk-monitored, and future-oriented value creation for OMV and its stakeholders.

OMV manages its capital structure to safeguard its capital base, thereby preserving investor, creditor, and capital market confidence and providing a sustainable financial foundation for the future operational development of the Group. OMV’s financing strategy focuses on maintaining strong cash flow and financial stability. The principal targets are a positive free cash flow after dividends and a strong investment-grade credit rating, based on a healthy balance sheet and a long-term leverage ratio below 30%, supporting OMV’s future development and strategy.

Liquidity Risk

For the purpose of assessing liquidity risk, OMV Group’s yearly budgeted operating and financial cash flows are monitored and analyzed on a monthly basis. Thus, every month the Group generates a forecasted net change in liquidity, which is then compared to the total month-end balances of money market deposits and loans, as well as to the maturities of the current portfolio and the available liquidity reserves of the same month. This analysis provides the basis for financing decisions and capital commitments.

To ensure that the OMV Group remains solvent at all times and retains the necessary financial flexibility, liquidity reserves in the form of committed credit lines and short-term uncommitted money market lines are maintained. As of December 31, 2025, the average weighted maturity of the Group’s debt portfolio (excluding lease liabilities and financial liabilties reclassified to the position “held for sale”) was 5.4 years (as of December 31, 2024: 4.5 years).

The OMV Group’s operational liquidity management is mainly handled via cash pooling systems, which enable optimum use of existing cash and liquidity reserves for the benefit of each individual member of the cash pooling system and the Group as a whole.

High volatility in commodity prices can potentially lead to peak liquidity demands in order to satisfy margin calls for exchange traded activities at short notice. To monitor and actively manage the OMV Group’s exposure to margin calls and the associated liquidity risk, OMV has implemented targeted measures. Trading units of the Group are required to perform regular stress tests to evaluate the effect of predefined, extreme commodity prices on credit exposures and margin requirements. Additionally, preference is given to over-the-counter transactions over exchange traded instruments when entering new transactions.

Details of OMV Group’s financial liabilities are provided in Note 26 – Liabilities.

Market Risk

For the purpose of mitigating market price risks, the Group enters into derivative financial instruments such as over-the-counter (OTC) swaps, options, futures, and forwards.

Swaps do not require an up-front investment when the contracts are concluded; settlement normally takes place at the end of the quarter or month. Premiums on purchased options are payable when the contract is concluded; if options are exercised, the difference between the strike price and the average market price for the period is paid at contract expiration.

Commodity price risk management refers to the analysis, assessment, reporting, and hedging of market price risk exposure arising from both non-trading and trading activities. This covers production (oil, gas, and power), refining (refinery margin, inventories up to a defined threshold), oil and gas marketing activities (marketing margin, inventories up to a defined threshold), and power generation (spark spreads), in addition to proprietary trading positions.

Limited proprietary trading activities may be performed to create market access within the oil, power, and gas markets up to a defined threshold.

Hedges are generally placed in the legal entities where the underlying exposure exists. When certain conditions are met, the Group may elect to apply IFRS 9 hedge accounting principles to recognize the offsetting effects on profit or loss of changes in the fair value of the hedging instruments at the same time as the hedged items.

Derivatives are mostly used for economic hedging purposes and not as speculative investments. However, where derivatives are not designated as hedging instruments (i.e., hedge accounting is not applied), they are measured at fair value through profit or loss for accounting purposes.

Commodity Price Risk

European Emission Allowances

All of OMV’s business segments are exposed to fluctuations in the price of greenhouse gas emissions (GHG emissions) under the EU Emissions Trading System (ETS). Purchases of European Emission Allowances (EEA) are always executed in a timely manner, and it is OMV’s highest priority to fulfill all legal obligations under the ETS. OMV monitors price risks from emission allowances and manages them using derivative instruments (forwards) traded bilaterally on the secondary market (known as over-the-counter transactions).

Electricity Prices

OMV’s business segments are exposed to fluctuations in electricity prices and therefore closely monitor related price risks. To mitigate the impact of potentially extreme market price movements, OMV’s business segments hedge portions of the forecasted electricity purchases using derivative instruments and power purchase agreements (PPAs).

Energy

Operational commodity price risk management in Energy includes hedging market price risk exposure arising from non-trading and trading activities in gas marketing (hedging price risk to inventory fluctuations and differences in the terms and conditions of purchases and sales), as well as limited proprietary trading positions to create market access within the gas markets.

No hedge accounting was applied for any of these derivative instruments.

Fuels

Fuels is exposed to market price risks arising from both trading and non-trading activities, including production, refining, and marketing activities associated with crude oil and oil products, as well as limited proprietary trading positions intended to create market access within oil and oil product markets.

In Fuels, derivative instruments are used both to hedge selected product sales and to reduce exposure to price risks to inventory fluctuations. Crude oil and product swaps are employed to hedge the refining margin (crack spread), which represents the difference between crude oil prices and bulk product prices.

Furthermore, exchange traded oil futures and OTC contracts (such as contracts for difference and swaps) are used to hedge short-term market price risks associated with purchases and sales.

OMV has decided to discontinue the designation of new hedging relationships in the Fuels segment effective from 2024. Hedge relationships established prior to 2024 remained effective until the realization of the corresponding hedged item and are considered immaterial for 2025.

For open hedging contracts, sensitivity analysis is performed to determine the effect of market price fluctuations (+/–10%) on market value. The sensitivity of the OMV Group’s overall earnings differs from the sensitivity shown below, as the the contracts concluded are used to hedge operational exposure.

The following table shows the fair values as well as market price sensitivities of open commodity derivatives.

Foreign Exchange Risk Management

OMV operates in many countries and currencies, therefore industry-specific activities and the corresponding foreign exchange rate risks need to be analyzed precisely. The USD represents OMV’s largest risk exposure due to movement of the USD against the EUR and also against the Group’s other main currencies (RON, NOK, and NZD). Movements of these currencies against the EUR are also significant sources of risk. Other currencies have only a limited impact on cash flow and the operating result. The transaction risk to foreign currency cash flows is monitored on an ongoing basis. The Group’s long and short net position are reviewed at least semiannually and sensitivity is calculated. This analysis provides the basis for managing of transaction risks on currencies. Since OMV produces commodities that are mainly traded in USD, the Group has an economic USD long position.

FX options, forwards, and swaps may be used to hedge foreign exchange rate risks on outstanding receivables and payables. The market value of these instruments will move in the opposite direction to the value of the underlying receivable or liability if the relevant foreign exchange rate changes. When certain conditions are met, the Group may elect to apply IFRS 9 hedge accounting principles in order to recognize the offsetting effects on profit or loss of changes in the fair value of the hedging instruments at the same time as the hedged items.

Translation risk is also monitored on an ongoing basis at Group level and the risk position is evaluated. Translation risk arises on the consolidation of subsidiaries, associated companies, and joint ventures with functional currencies different from EUR. The largest exposure results from changes in RON-, USD-, and NOK-denominated assets against the EUR.

For financial instruments, sensitivity analysis is performed for changes in foreign exchange rates of currencies material to the Group. At Group level, the EUR–RON sensitivity not only includes the net RON exposure versus the EUR but also the net RON exposure versus the USD, since the USD–RON exposure can be split into EUR–RON and EUR–USD exposure. The same applies to the EUR–NOK and EUR–NZD exposure.

The following table shows the fair values of open foreign currency derivatives as well as the sensitivity of exchange rates on the net foreign exchange exposure material to the Group:

Interest Rate Management

OMV’s debt portfolio as of December 31, 2025, had only limited exposure to changes in interest rates, as almost all liabilities carried fixed interest rates. Any future financing activities will be subject to prevailing market conditions at the time, which could potentially lead to higher interest expenses.

To facilitate the management of interest rate risk, OMV’s existing liabilities are analyzed in terms of fixed and floating rate borrowings, currencies, and maturities. Appropriate ratios for the various categories are established and, where necessary, derivative instruments are used to hedge fluctuations outside predetermined ranges.

OMV regularly analyzes the impact of interest rate changes on interest income and expenses from floating rate deposits and borrowings. Currently, the effects of changes in interest rates are not considered to represent a material risk.

Credit Risk Management

The main counterparty credit risks are assessed and monitored at both Group and segment level using predetermined criteria and limits for all counterparties, banks, and security providers. Based on a risk assessment, counterparties, banks, and security providers are assigned a credit limit, an internal risk class, and a specific limit validity period. Risk assessments are reviewed at least annually or on an ad hoc basis. Credit risk processes are governed by guidelines at OMV Group level stipulating the Group-wide minimum requirements. The main counterparties with contracts involving derivative financial instruments have investment-grade credit ratings. OMV uses commercial trade insurance for parts of its receivables in certain business areas to mitigate credit risk. Due to the high economic uncertainty resulting from the current geopolitical situation, special attention is paid to early warning signals such as changes in payment behavior.

Credit risk is the risk that the OMV Group’s counterparties will not meet their obligation under a financial instrument or customer contract, leading to a financial loss.

Credit risk exists in relation to the financial guarantee contracts issued by OMV to Borouge 4 LLC, which is accounted for using the equity method, for the funding of Borouge 4 LLC under the Italian Export Credit Agency agreement. The total guarantee amounts to EUR 814 mn plus interest (2024: EUR 1,228 mn plus interest). Based on the already drawn financing by Borouge 4 LLC, the guaranteed amount as of December 31, 2025 totaled EUR 814 mn plus interest (2024: EUR 1,009 mn plus interest).

In general, a payment under the guarantee agreement is triggered by the non-performance by the guaranteed party of the obligation covered by the guarantee. Therefore, a financial liability initially measured at fair value was recognized.