16 – Equity-accounted investments

Material associates and joint ventures

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 (2020: 40%) 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 abundantly 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% (2020: 15%) interest in Abu Dhabi Oil Refining Company, 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. In 2021 the deterioration in the margin outlook led to a change in price assumptions and triggered impairment testing in the ADNOC Refining and Trading CGU. This led to an impairment of EUR 669 mn. For further details please refer to Note 7 – Depreciation, amortization, impairments and write-ups.

The above mentioned 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.

Individually immaterial associates and joint ventures

OMV holds 55.6% (2020: 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 exercises joint control over Abu Dhabi Petroleum Investments LLC (ADPINV, OMV’s interest 25%, 2020: 25%), registered in Abu Dhabi, and Pak-Arab Refinery Limited (PARCO; indirect interest of OMV amounts to 10%, 2020: 10%), registered in Karachi, and accounts both investments at-equity. ADPINV 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 (2020: 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%.

OMV also holds 50% share (2020: 50%) 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.

In June 2021, OMV subscribed through Borealis Group to a new share issue, thus acquiring 10% in Renasci N.V., a company incorporated in Belgium. Renasci N.V. is principally engaged in the development of the proprietary processes and know how about various technologies regarding waste treatment and recycling. Through the shareholder agreement, Borealis is guaranteed two seats on the board of Renasci N.V. and participates in major significant financial and operating decisions. The Group has therefore determined that it has significant influence over this entity, even though it only holds 10% of the voting rights. Therefore, the investment is accounted for as an associated company.

As per September 30, 2021, OMV finalized the sale of its 40% share in SMATRICS GmbH & Co KG (based in Vienna) and its 40% share in E-Mobility Provider Austria GmbH (based in Vienna) to VERBUND AG.

For further details, please refer to Note 38 – Direct and indirect investments of OMV Aktiengesellschaft.