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Results

4 – Segment Reporting

Changes in segment reporting

Starting with Q1/22 the OMV Group structure was reorganized, which involved the transfer of Gas Marketing Western Europe, which includes Supply, Marketing, Trading and Logistics, from Refining & Marketing to Exploration & Production in order to extract synergies from the entire end-to-end gas value chain. Internal reporting and the relevant information provided to the chief operating decision-maker in order to assess performance and allocate resources has been updated to reflect the current organizational structure.

Business operations and key markets

For business management purposes, OMV is divided into three operating Business Segments: Chemicals & Materials, Refining & Marketing, and Exploration & Production, as well as the segment Corporate and Other (C&O). Each segment represents a strategic unit and operates in different markets. Each Business Segment is managed independently. Strategic business decisions are made by the Executive Board of OMV. With the exception of C&O, the reportable segments of OMV are the same as the operating segments.

The Chemicals & Materials () Business Segment is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers, and plastics recycling.

OMV Group has a production capacity, including joint ventures, of 7.5 mn base chemicals, 5.9 mn t polyolefins, 0.4 mn t compounding and 4.3 mn t fertilizers. The majority of production is located in Europe, with two overseas manufacturing facilities in the United States, one in Brazil and one in South Korea. In addition, OMV holds minority stakes in various equity-accounted investments, the most significant ones being Borouge (United Arab Emirates) a Borealis’ joint venture with ADNOC that operates the largest petrochemical complex in the world and the Baystar joint venture (Pasadena, United States) which serves the customer base in the North American markets and operates Port Arthur Refinery with the production capacity of 0.5 mn t OMV share.

OMV group is pursuing various initiatives in mechanical and chemical recycling and renewable polyolefins. A new polyethylene plant based on Borstar technology on the site in Pasadena is currently under construction with the target to deliver a broad range of products to meet the growing global demand of sustainable and high energy efficient plastic products.

The Refining & Marketing () Business Segment refines and markets crude oil and other feedstock. It operates the refineries Schwechat (Austria), Burghausen (Germany) and Petrobrazi (Romania) with an annual capacity of 17.8 mn t. In these refineries, crude oil is processed into petroleum products, which are sold to commercial and private customers. The activities of this business segment also cover supply and marketing of gas in Eastern Europe and the Group’s power business activities, with one gas-fired power plant in Romania.

OMV has a strong position in the markets located within the areas of its supply, serving commercial customers, and operating a retail business of approximately 1,800 filling stations.

OMV holds minority stakes in various equity-accounted investments, the most significant one is the 15% participation in ADNOC Refining (United Arab Emirates) with annual capacity of 7.1 mn t OMV share.

Exploration & Production (E&P) engages in the business of oil and gas exploration, development and production and focuses on the regions Central and Eastern Europe, North Sea, Middle East and Africa and Asia-Pacific. In addition, E&P is engaged in gas supply, marketing, trading, and logistics in Western Europe.

Group management, financing and insurance activities as well as certain service functions are concentrated in the Corporate & Other (C&O) segment.

One of the key measures of operating performance for the Group is . Total assets include intangible assets as well as property, plant and equipment. Sales to external customers are split up by geographical areas on the basis of where the risk is transferred to the customers. The net revenues of commodity trading activities within the scope of 9 and hedging results are reported in the country in which the reporting subsidiary is located. Accounting policies of the operating segments are the same as those described in the summary of significant accounting policies, with certain exceptions for intra-group sales and cost allocations by the parent company, which are determined in accordance with internal OMV policies. Management is of the opinion that the transfer prices of goods and services exchanged between segments correspond to market prices. Business transactions not attributable to operating segments are included in the results of the C&O segment.

The disclosure of is considered appropriate in order to facilitate analysis of ordinary business performance. To reflect comparable figures, certain items affecting the result are added back or deducted. These items can be divided into four subcategories: personnel restructuring, unscheduled depreciation and write-ups, asset disposals and other. Furthermore, to enable effective performance management in an environment of volatile prices and comparability with peers, the is eliminated from the accounting result. The CCS effect, also called inventory holding gains and losses, is the difference between the cost of sales calculated using the current cost of supply, and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances. In volatile energy markets, measurement of the costs of petroleum products sold based on historical values (e.g. weighted average cost) can have distorting effects on reported results. This performance measurement enhances the transparency of results and is commonly used in the oil industry. OMV, therefore, publishes this measure in addition to the Operating Result determined according to IFRS.

Segment reporting

In EUR mn

 

 

 

 

 

 

 

 

2022

 

C&M

R&M

E&P

C&O

Total

Consoli­dation

OMV Group

 

 

 

 

 

 

 

 

Sales revenues1

13,450

28,634

30,857

424

73,365

(11,067)

62,298

Intersegmental sales

(1,181)

(2,818)

(6,661)

(407)

(11,067)

11,067

Sales to third parties

12,269

25,816

24,197

17

62,298

62,298

Other operating income

548

857

181

58

1,644

1,644

Net income from equity-accounted investments

332

477

60

869

869

Depreciation and amortization

533

422

1,478

41

2,474

2,474

Impairment losses (incl. exploration & appraisal)

7

15

825

7

853

853

Write-ups

266

68

327

660

660

Operating Result

2,039

3,392

6,936

(86)

12,281

(35)

12,246

Special items for personnel restructuring

2

1

4

8

8

Special items for unscheduled depreciation and write-ups

(263)

(47)

252

(58)

(58)

Special items for asset disposal

(315)

(409)

(724)

(724)

Other special items

(4)

(321)

207

31

(87)

(87)

Special items

(582)

(774)

460

36

(861)

(861)

Clean Operating Result

1,457

2,618

7,396

(50)

11,420

(35)

11,385

CCS effect

(202)

(202)

(8)

(210)

Clean CCS Operating Result

1,457

2,415

7,396

(50)

11,218

(43)

11,175

Segment assets2

5,964

4,223

11,407

234

21,826

21,826

Additions in PPE/IA3

1,285

826

1,512

41

3,664

3,664

Equity-accounted investments4

5,179

1,765

350

7,294

7,294

1

Including intersegmental sales

2

Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale

3

Excluding additions in assets reclassified to held for sale and additions to decommissioning assets

4

Excluding assets held for sale

Segment reporting information of earlier periods has been adjusted consequently to comply with IFRS 8.29. The tables below depict the segment reporting information as restated after the reorganization and reported in 2021:

Segment reporting

In EUR mn

 

 

 

 

 

 

 

 

2021 restated

 

C&M

R&M

E&P

C&O

Total

Consoli­dation

OMV Group

 

 

 

 

 

 

 

 

Sales revenues1

11,618

16,547

14,650

376

43,191

(7,636)

35,555

Intersegmental sales

(1,109)

(2,452)

(3,713)

(361)

(7,636)

7,636

Sales to third parties

10,509

14,095

10,937

14

35,555

35,555

Other operating income

249

246

375

63

933

933

Net income from equity-accounted investments

534

10

56

600

600

Depreciation and amortization

535

427

1,399

41

2,401

2,401

Impairment losses (incl. exploration & appraisal)

495

717

326

0

1,538

1,538

Write-ups

3

0

4

4

Operating Result

1,828

451

2,910

(74)

5,115

(51)

5,065

Special items for personnel restructuring

7

14

9

30

30

Special items for unscheduled depreciation and write-ups

483

713

101

1,297

1,297

Special items for asset disposal

(7)

(209)

(6)

(223)

(223)

Other special items

(87)

212

75

9

210

210

Special items

396

924

(18)

12

1,315

1,315

Clean Operating Result

2,224

1,376

2,892

(62)

6,430

(51)

6,379

CCS effect

(430)

(430)

12

(418)

Clean CCS Operating Result

2,224

945

2,892

(62)

5,999

(39)

5,961

Segment assets2

5,283

3,894

12,312

241

21,730

21,730

Additions in PPE/IA3

724

619

1,253

28

2,624

2,624

Equity-accounted investments4

5,133

1,320

433

6,887

6,887

1

Including intersegmental sales

2

Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale

3

Excluding additions in assets reclassified to held for sale and additions to decommissioning assets

4

Not including assets held for sale

Segment reporting

In EUR mn

 

 

 

 

 

 

 

 

2021 reported

 

C&M

R&M

E&P

C&O

Total

Consoli­dation

OMV Group

 

 

 

 

 

 

 

 

Sales revenues1

11,618

25,928

6,712

376

44,634

(9,079)

35,555

Intrasegmental sales

(1,109)

(2,780)

(4,828)

(361)

(9,079)

9,079

Sales to third parties

10,509

23,148

1,884

14

35,555

35,555

Other operating income

249

274

347

63

933

933

Net income from equity-accounted investments

534

12

55

600

600

Depreciation and amortization

535

429

1,396

41

2,401

2,401

Impairment losses (incl. exploration & appraisal)

495

718

325

0

1,538

1,538

Write-ups

3

0

4

4

Operating Result

1,828

922

2,439

(74)

5,115

(51)

5,065

Special items for personnel restructuring

7

14

9

30

30

Special items for unscheduled depreciation and write-ups

483

713

100

1,297

1,297

Special items for asset disposal

(7)

(209)

(6)

(223)

(223)

Other special items

(87)

(204)

492

9

210

210

Special items

396

509

398

12

1,315

1,315

Clean Operating Result

2,224

1,431

2,837

(62)

6,430

(51)

6,379

CCS effect

(430)

(430)

12

(418)

Clean CCS Operating Result

2,224

1,001

2,837

(62)

5,999

(39)

5,961

Segment assets2

5,283

3,989

12,217

241

21,730

21,730

Additions in PPE/IA3

724

621

1,251

28

2,624

2,624

Equity-accounted investments4

5,133

1,325

429

6,887

6,887

1

Including intersegmental sales

2

Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale

3

Excluding additions in assets reclassified to held for sale and additions to decommissioning assets

4

Not including assets held for sale

In 2022 special items for unscheduled depreciation and write-ups were mainly driven by the revaluation of the fertilizer business, partly offset by the non-cash net impairment charges related to E&P assets. For further details on write-ups and impairments see Note 7 – Depreciation, amortization, impairments and write-ups.

Special items for asset disposals were related to the sale of the German filling station business in May 2022 and the Borouge IPO on ADX (the Abu Dhabi Securities Exchange). For further details see Note 6 – Other operating income and net income from equity-accounted investments and Note 16 – Equity-accounted investments.

Other special items mainly consisted of non-cash valuation effects related to the reassessment of reserves redetermination rights of the Yuzhno Russkoye field in Russia and the effects of deconsolidation of the Russian entities. 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’. In addition, other special items consisted of temporary hedging effects and the release of a provision in the business.

Information on geographical areas

In EUR mn

 

 

 

 

 

 

 

2022

2021

 

Sales to third parties

Segment assets1

Equity-accounted investments2

External sales

Segment assets1

Equity-accounted investments2

Austria

14,911

4,365

16

5,326

4,207

14

Belgium

987

1,950

45

854

1,247

24

Germany

14,102

1,200

31

8,499

1,061

31

Romania

10,149

5,437

4,433

5,628

Norway

1,584

1,219

1,003

1,508

Russia3

212

642

592

117

New Zealand

598

864

443

550

United Arab Emirates

1,644

1,677

6,073

784

1,671

5,352

Rest of CEE4

7,548

554

5,246

556

Rest of Europe

7,454

1,848

22

5,968

1,893

22

Rest of the world5

3,110

2,162

1,107

2,356

2,289

1,328

Allocated

62,298

21,274

7,294

35,555

21,201

6,887

Not allocated assets

552

529

Total

62,298

21,826

7,294

35,555

21,730

6,887

1

Property, plant and equipment (PPE), intangible assets (IA), not including assets reclassified to assets held for sale

2

Equity-accounted investments are allocated based on the seat of the registered office of the parent company, not including assets held for sale

3

Sales in 2022 relate to the period before the change in the consolidation method (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’).

4

Including Turkey

5

Rest of the world: Principally Algeria, Argentina, Brazil, Canada, Chile, China, Colombia, Cuba, Egypt, India, Libya, Malaysia, Morocco, Mexico, Nigeria, Peru, Qatar, Saudi Arabia, South Africa, South Korea, Tunisia, United States of America and Yemen

Not allocated assets contained goodwill in amount of EUR 342 mn (2021: EUR 322 mn) related to the cash-generating unit ‘Middle East and Africa’ and EUR 210 mn (2021: EUR 198 mn) related to the cash generating unit ‘SapuraOMV’ as these CGUs are operating in more than one geographical area. In 2021, not allocated assets also included goodwill in the amount of EUR 9 mn related to cash generating unit ‘Refining West’.

C&M
Chemicals & Materials business segment
t
Metric ton
R&M
Refining & Marketing business segment
Clean CCS Operating Result
Operating Result adjusted for special items and CCS effects
The Group clean CCS Operating Result is calculated by adding the clean CCS Operating Result of Refining & Marketing, the clean Operating Result of other segments and the reported consolidation effect adjusted for changes in valuation allowances, in case the net realizable value of the inventory is lower than its cost.
IFRSs
International Financial Reporting Standards
Special items
Special items are expenses and income reflected in the financial statements that are disclosed separately, as they are not part of underlying ordinary business operations. They are being disclosed separately in order to enable investors to better understand and evaluate the OMV Group’s reported financial performance.
CCS/CCS effects/inventory holding gains/(losses)
Current Cost of Supply
Inventory holding gains and losses represent the difference between the cost of sales calculated using the current cost of supply and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances in case the net realizable value of the inventory is lower than its cost. In volatile energy markets, measurement of the costs of petroleum products sold based on historical values (e.g., weighted average cost) can have distorting effects on reported results (Operating Result, net income, etc.). The amount disclosed as CCS effect represents the difference between the charge to the income statement for inventory on a weighted average basis (adjusted for the change in valuation allowances related to net realizable value) and the charge based on the current cost of supply. The current cost of supply is calculated monthly using data from supply and production systems at the Refining & Marketing level.
LNG
Liquefied Natural Gas