16 – Equity-accounted investments

Material associates and joint ventures

Following the acquisition of an additional 39% share in Borealis group (previous share: 36%) OMV has gained control over Borealis group and discontinued the use of the equity accounting in line with IAS 28. See Note 3 – Changes in group structure – for further details. As a result of the full consolidation of Borealis group, OMV holds a 40% interest in Abu Dhabi Polymers Company Limited (Borouge) and a 50% interest in Bayport Polymers LLC.

Abu Dhabi Polymers Company Limited (Borouge), registered in Abu Dhabi, is a leading provider of innovative, value-creating plastic solutions for energy, infrastructure, automotive, healthcare and agriculture industries as well as advanced packaging applications. As OMV, with its 40% interest does not have joint control over Abu Dhabi Polymers Company Limited (Borouge), the company is accounted for as an associated company.

Bayport Polymers LLC, registered in Pasadena (incorporated in Wilmington), is currently building a polyethylene facility as well as an ethane steam cracker with the objective of supplying the abundandtly available and competitively priced ethane in the United States to its polyethylene units. As OMV has joint control over Bayport Polymers LLC (50/50 share split), it accounts the company as joint venture.

OMV also holds a 15% interest in Abu Dhabi Oil Refining Company (2019: 15%), registered in Abu Dhabi, which runs a refinery hub with integrated petrochemicals. According to the contractual agreement between the shareholders, OMV has strong participation rights which represent significant influence as per IAS 28 definition.

The companies are not listed on public exchanges thus quoted market prices do not exist.

The tables below contain summarized financial information for the material associates and joint ventures. Income statement and other comprehensive income for Abu Dhabi Polymers Company Limited (Borouge) and Bayport Polymers LLC represent amounts since inclusion in OMV group on October 29, 2020. Income statement and other comprehensive income for Abu Dhabi Oil Refining Company in 2019 represent amounts since acquisition on July 31, 2019.

Individually immaterial associates and joint ventures

OMV holds 55.6% (2019: 55.6%) of Erdöl-Lagergesellschaft m.b.H (ELG), registered in Lannach, which is holding the major part of the emergency stock of crude and petroleum products in Austria. In spite of holding the majority of voting rights in the general assembly, OMV does not have control over ELG. The significant decisions on the financial and operating policies are delegated to the standing shareholder’s committee in which a quorum of two thirds of the share capital is required for decisions.

OMV holds 15.53% (2019: 15.53%) in Trans Austria Gasleitung GmbH, registered in Vienna. As unanimous consent of the parties is required for decisions about relevant activities and OMV has rights to the net assets of Trans Austria Gasleitung GmbH based on the legal structure, OMV classified it as a joint venture according to IFRS 11. In 2020 Trans Austria Gasleitung GmbH has been reclassified to held for sale following the planned sale of OMV´s 51% share in Gas Connect Austria GmbH (for more details see Note 20 – Assets and liabilities held for sale).

OMV exercises joint control over Abu Dhabi Petroleum Investments LLC (ADPI, OMV’s interest 25%, 2019: 25%), registered in Abu Dhabi, and Pak-Arab Refinery Limited (PARCO; indirect interest of OMV amounts to 10%, 2019: 10%), registered in Karachi, and accounts both investments at-equity. ADPI is a holding company for its 40% interest in PARCO. As unanimous consent of the parties is required for decisions about relevant activities and OMV has rights to the net assets based on the legal structure, OMV classified the companies as joint ventures according to IFRS 11.

Furthermore, OMV has a 10% interest (2019: 10%) in Pearl Petroleum Company Limited, registered in Road Town, British Virgin Islands, which is involved in exploration and production of hydrocarbons in the Kurdistan Region of Iraq. According to the contractual agreement between OMV and Pearl Petroleum Company Limited (Pearl), OMV has significant influence within the meaning of IAS 28, as unanimous consent is required for some strategic decisions. Therefore Pearl is accounted for using the equity method although OMV’s share is just 10%.

Following the full consolidation of Borealis AG, OMV now also holds 50% share in Borouge Pte.Ltd., based in Singapore, which is responsible for marketing and sales of the products produced by Abu Dhabi Polymers Company Limited (Borouge). Even though OMV holds a 50% interest in Borouge Pte. Ltd., OMV has no joint control and thus accounts for it as an associated company.