7 – Depreciation, amortization, impairments and write-ups

Impairment losses are part of the income statement line “Depreciation, amortization, impairments and write-ups”, except for impairment losses related to exploration and appraisal assets which are shown in “Exploration expenses”. The following tables provide a reconciliation to the amounts reported in the income statement.

Impairments and write-ups in Chemicals & Materials

In 2022, a write-up of EUR 266 mn was recognized related to the the sale of the nitrogen business unit of Borealis group including fertilizer, melamine, and technical nitrogen products. The valuation was based on a binding offer from AGROFERT, a.s. as of June 2, 2022 to reflect the fair value less cost to sell. The binding offer received from EuroChem in February 2022 was declined in March 2022 after assessing developments resulting from the war in Ukraine and related sanctions.

In 2021, impairment losses of EUR 444 mn were recognized for the nitrogen business unit of Borealis Group to reflect the fair value less cost to sell as of December 31, 2021. The valuation was based on the binding offer from EuroChem for the acquisition of the disposal group received on February 2, 2022.

Impairments and write-ups in Refining & Marketing

In 2022, there was a net write-up of EUR 67 mn of the ADNOC Refining and Trading CGU, mainly related to the impairment testing triggered by the positive near-term margin outlook for refining margins in Middle East.

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 due to lower refining margins and production volumes in ADNOC Refining.

Impairments and write-ups in Exploration & Production

In Q4/22, OMV updated its commodity price assumptions. Whereas the European gas prices increased for the near and long-term, the expected production volume of some oil and gas assets in Romania decreased due to higher expected natural decline rates and operating costs increased. These effects led to pre-tax impairments of EUR 117 mn (net of write-ups) of some development and production oil and gas assets, related to assets in Romania, New Zealand and Austria. For more details on price assumptions see Note 2 – Accounting policies, judgements and estimates.

In 2022 reported impairment losses attributable to exploration and appraisal (EUR 183 mn) were mainly related to unsuccessful exploration wells and exploration licenses in Norway, New Zealand, Romania and Australia.

Additionally, impairments in 2022 included mainly unsuccessful workovers, obsolete or replaced assets in Romania (EUR 84 mn) and a production license in Libya (EUR 70 mn).

The planned sale of OMVs relevant operating entities in Yemen in Q2/22 led to the reclassification to “held for sale”, which triggered a pre-tax impairment of EUR 48 mn. For more details please see Note 20 – Assets and liabilities held for sale.

In 2021 based on impairment testing EUR 111 mn of exploration and appraisal assets were impaired, mainly related to assets in Norway, New Zealand, Mexico and Tunisia. Furthermore, impairment losses in 2021 included impairments of EUR 74 mn mainly related to unsuccessfull exploration wells and exploration licenses in Australia, Norway, Romania and New Zealand.

Other impairments in 2021 were mainly related to unsuccessful workovers and obsolete or replaced assets in Romania (EUR 87 mn).

For further information related to significant judgements and assumptions with regards to impairment testing refer to Note 2 – Accounting Policies, judgements and estimates.