Material associates and joint ventures

Borealis owns a 36% stake (2023: 36%) in Borouge PLC (PLC) and Abu Dhabi National Oil Company owns 54%, the remaining 10% is listed on the Abu Dhabi Securities Exchange. 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, 2024, 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 6,807 mn, based on the quoted market price available on the UAE stock exchange. The corresponding book value of PLC was EUR 3,799 mn as of December 31, 2024.

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, health care, 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), is a petrochemical company primarily engaged in the manufacturing and sales of polyethylene and ethylene, under the trade name Baystar. 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% (2023: 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.

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

Statement of comprehensive income – material associates

In EUR mn

 

 

 

2024

2023

 

Abu Dhabi
Oil Refining
Company

Abu Dhabi
Oil Refining
Company

Sales revenue

25,498

29,259

Net income for the year

–101

1,187

Other comprehensive income

7

11

Total comprehensive income

–94

1,198

Statement of financial position – material associates

In EUR mn

 

 

 

2024

2023

 

Abu Dhabi
Oil Refining
Company

Abu Dhabi
Oil Refining
Company

Non-current assets

16,961

16,212

Current assets

5,328

5,846

Non-current liabilities

5,226

4,289

Current liabilities

4,403

4,456

Equity

12,661

13,313

Group’s share

1,899

1,997

Impairment of investment

–588

–553

Carrying amount of investment

1,311

1,444

 

 

 

Dividends received

202

206

Statement of comprehensive income – material joint ventures

In EUR mn

 

 

 

 

 

2024

2023

 

Borouge investments

Bayport Polymers LLC

Borouge investments

Bayport Polymers LLC

Sales revenue

5,566

644

5,356

577

Depreciation, amortization, impairments, and write-ups

–746

–200

–760

–135

Interest income

26

2

25

2

Interest expenses

–189

–199

–204

–107

Taxes on income and profit

–397

–1

–301

–0

Net income for the year

978

–280

764

–317

Other comprehensive income

4

–7

Total comprehensive income

982

–280

757

–317

Statement of financial position – material joint ventures

In EUR mn

 

 

 

 

 

2024

2023

 

Borouge investments

Bayport Polymers LLC

Borouge investments

Bayport Polymers LLC

Non-current assets

7,159

3,992

7,318

3,871

Current assets

2,090

266

1,823

352

thereof cash and cash equivalents

403

22

320

41

Non-current liabilities

3,428

2,915

3,479

2,683

thereof non-current financial liabilities
(excl. other liabilities and provisions)

2,985

2,912

2,988

2,681

Current liabilities

900

363

815

343

thereof current financial liabilities (excl. trade payables, other liabilities, and provisions)

9

178

8

195

Equity

4,922

980

4,846

1,197

Group’s share

1,784

490

1,752

598

Goodwill

2,113

1,986

Intercompany profit elimination

–2

–12

–2

–12

Carrying amount of investment

3,895

478

3,737

586

 

 

 

 

 

Dividends received

436

455

Carrying amount reconciliation

In EUR mn

 

 

 

 

 

 

 

2024

2023

 

Associate

Joint Ventures

Associate

Joint Ventures

 

Abu Dhabi Oil Refining Company

Borouge investments

Bayport Polymers LLC

Abu Dhabi Oil Refining Company

Borouge investments

Bayport Polymers LLC

January 1

1,444

3,737

586

1,524

4,030

674

Currency translation differences

83

230

32

–54

–117

–22

Additions and other changes

921

Net income

–15

359

–140

178

281

–158

Other comprehensive income

1

2

2

–1

Dividends distributed

–202

–434

–206

–455

December 31

1,311

3,895

478

1,444

3,737

586

1

Refers to capital contribution

Individually immaterial associates and joint ventures

OMV holds a 55.6% (2023: 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.

Borealis owns a 40% stake (2023: 40%) 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. The Borouge 4 project was previously part of the 40% direct interest in ADP but was scoped out of Borouge PLC, following 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%, 2023: 25%), registered in Abu Dhabi, and Pak-Arab Refinery Limited (PARCO; indirect interest of OMV amounts to 10%, 2023: 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 (2023: 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.

Statement of comprehensive income for individually immaterial associates and joint ventures – Group’s share

In EUR mn

 

 

 

 

 

2024

2023

 

Associates

Joint ventures

Associates

Joint ventures

Sales revenue

6,212

329

5,797

360

Net income for the year

122

–27

23

2

Total comprehensive income

122

–27

23

2

Carrying amount reconciliation for individually immaterial associates and joint ventures

In EUR mn

 

 

 

 

 

2024

2023

 

Associates1

Joint ventures

Associates1

Joint ventures

January 1

458

443

568

498

Currency translation differences

25

26

–15

–33

Changes in the consolidated group2

70

7

Additions and other changes

2

Net income

122

–27

23

2

Impairments3

–23

Disposals and other changes

–1

–2

Dividends distributed

–116

–24

–102

–23

December 31

488

489

458

443

1

Including associated companies accounted at-cost.

2

Changes in the consolidated group in 2024 represented the acquisitions of shares in jointly controlled entities in the area of renewable energy. For further details, please refer to Note 38 – Direct and indirect investments of OMV Aktiengesellschaft.

3

Refers to the impairment for the investment in BlueAlp Holding B.V. in 2023

IAS
International Accounting Standards
IFRS
International Financial Reporting Standards
Pearl
Pearl Petroleum Company Limited

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