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11 – Net financial result

Interest income

In EUR mn

 

 

 

2022

2021

Cash & cash equivalents

193

27

Discounted receivables

5

5

Other financial and non-financial assets

20

9

Loans

51

120

Interest income

269

161

Interest income on cash and cash equivalents in 2022 was primarily related to interest income on RON, USD and EUR bank deposits.

Interest income from loans included EUR 17 mn (2021: EUR 92 mn) related to the Nord Stream 2 financing agreement and EUR 32 mn (2021: EUR 27 mn) related to loan agreement towards Bayport Polymers LLC. For further details see Note 18 – Financial assets.

Interest expenses

In EUR mn

 

 

 

2022

2021

Bonds

120

142

Lease liabilities

30

26

Other financial and non-financial liabilities

47

26

Provisions for decommissioning and restoration obligations

196

114

Provisions for jubilee payments, personnel reduction schemes and other employee benefits

3

2

Provisions for pensions and severance payments

14

12

Provisions for onerous contracts

14

17

Other

11

8

Interest expenses, gross

435

348

Capitalized borrowing costs

(18)

(14)

Interest expenses

417

334

For further details on bonds see Note 24 – Liabilities.

For OMV Petrom SA the unwinding expenses for decommissioning provision are included net of the unwinding income for related Romanian State receivables. For further details see Note 18 – Financial assets.

Interest expenses on provisions for decommissioning and restoration obligations in 2022 were impacted by the negative reassessment effects of receivables from the Romanian State amounting to EUR 65 mn (2021: EUR 41 mn). The remaining part of interest expenses on provisions for decommissioning and restoration obligations related entirely to unwinding effects. Both effects increased in 2022 due to the increase in discount rates.

The interest expenses on pension provisions were netted against interest income on pension plan assets which amounted to EUR 6 mn (2021: EUR 5 mn).

Provisions for onerous contracts included the unwinding expenses for the Gate obligation and associated transportation commitments of OMV Gas Marketing & Trading GmbH. For further details see Note 23 – Provisions.

Capitalized borrowings costs applied to the carrying value of qualifying assets were mainly related to propane dehydrogenation plant under construction at the Borealis production site in Kallo, Belgium and construction of the ReOil and Bio-Oil plant in Austria.

Other financial income and expense

In EUR mn

 

 

 

2022

2021

Carrying amount of sold trade receivables

(10,857)

(9,348)

Proceeds on sold trade receivables

10,811

9,315

Financing charges for factoring and securitization

(46)

(33)

Net foreign exchange gains/(losses)

95

9

Other

(1,393)

(17)

Other financial income and expense

(1,345)

(40)

In 2022 net foreign exchange gains were predominantly impacted by USD and were partly offset by NOK.

The position Other was mainly related to impairment of the Nord Stream 2 loan (EUR 1,004 mn) and fair value adjustment of investments in Russia (EUR 370 mn). For further details see Note 2 – Accounting policies, judgements and estimates, section ‘Impact of Russia’s invasion of Ukraine and related significant estimates and assumptions’.

LNG
Liquefied Natural Gas