18 – Equity-accounted investments

Material associates and joint ventures

Borealis owns a 36% stake (2022: 36%) in Borouge PLC (PLC) and Abu Dhabi National Oil Company owns the remaining 54%. PLC is registered in Abu Dhabi and is the holding company for its 100% interest in Abu Dhabi Polymers Company Limited (Borouge) (ADP) and its 84.75% interest in Borouge Pte. Ltd. (PTE).

As of December 31, 2023, the fair value of the Group’s interest in PLC, which is listed on the Abu Dhabi Securities Exchange of the United Arab Emirates (UAE), was EUR 6,586 mn, based on the quoted market price available on the UAE stock exchange. The corresponding book value of PLC was EUR 3,653 mn as of December 31, 2023.

The “Borouge investments” (representing the total OMV share in PLC, ADP, PTE) are a leading provider of innovative, value-creating plastic solutions for the energy, infrastructure, automotive, healthcare, and agriculture industries, as well as advanced packaging applications. They are also responsible for the marketing and sales of the products produced. As joint control is exercised, Borouge investments are accounted for as a joint venture.

Bayport Polymers LLC (Baystar), registered in Pasadena (incorporated in Wilmington), passed a significant milestone in October 2023 with the start-up of the new 625,000 metric t/year Borstar^® polyethylene (PE) unit at the production site in Pasadena, Texas (United States). The goal is to deliver a broad range of products to meet the growing global demand for sustainable and highly energy-efficient plastic products. Baystar also started its operation of the new 1 mn metric t/year ethane cracker at Port Arthur, Texas (United States) in 2022. This cracker processes ethane, which is abundantly available and competitively priced in the United States and will supply the Baystar PE units. As OMV has joint control over Bayport Polymers LLC (50/50 share split) and rights to the net assets, it accounts for the company as a joint venture.

OMV also holds a 15% (2022: 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 that represent a significant influence as per the definition in IAS 28. In 2022, a net write-up of EUR 67 mn was recognized for the ADNOC Refining & Trading CGU.

The tables below contain summarized financial information for the material associates and joint ventures.

Individually immaterial associates and joint ventures

OMV holds a 55.6% (2022: 55.6%) share in Erdöl-Lagergesellschaft m.b.H (ELG), registered in Lannach, which holds the majority 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. Any major decisions on 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 has a 40% interest (2022: 40%) through Borealis in Borouge 4 LLC, registered in Abu Dhabi. The company executes the ongoing Borouge 4 project by developing an ethane-based steam cracker, two polyolefin plants, a 1-Hexene unit, a cross-linked polyethylene plant (XPLE) and an in-depth study for a carbon capture unit. It was previously part of the 40% direct interest in ADP but was scoped out of the Initial Public Offering in June 2022, and was therefore transferred to this newly founded company. However, it is intended to recontribute Borouge 4 at a later point. Given that no board-reserved matters, which affect all relevant activities, can be decided without an affirmative vote by Borealis, OMV has joint control over Borouge 4 LLC and accounts for it as a joint venture.

OMV exercises joint control over Abu Dhabi Petroleum Investments LLC (ADPINV, OMV’s interest 25%, 2022: 25%), registered in Abu Dhabi, and Pak-Arab Refinery Limited (PARCO; indirect interest of OMV amounts to 10%, 2022: 10%), registered in Karachi, and accounts for 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 classifies the companies as joint ventures according to IFRS 11.

Furthermore, OMV has a 10% interest (2022: 10%) in Pearl Petroleum Company Limited, registered in Road Town, British Virgin Islands, which is involved in the exploration and production of hydrocarbons in the Kurdistan region of Iraq. According to the joint venture agreement 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 even though OMV’s share is just 10%. In 2023, exploration & appraisal assets included in OMV’s initial purchase price allocation of its share in Pearl were partly impaired.

Through Borealis, OMV acquired additional stakes in Renasci N.V. (Renasci) in 2023. As control was obtained, Renasci is no longer classified as an associated company. Part of the identified assets of Renasci are shares in associated companies: a 21.25% share in BlueAlp Holding B.V. based in Groot-Ammers (Netherlands) and a 25% share in Petrogas International B.V. based in Eindhoven (Netherlands). For further details, please refer to Note 40 – Direct and indirect investments of OMV Aktiengesellschaft.

In 2023, an impairment was recognized for the investment in BlueAlp Holding B.V. For further details please refer to Note 8 – Depreciation, Amortization, Impairments and Write-ups.