Accounting policy
Inventories are recognized at the lower of cost and net realizable value. Costs incurred are generally determined based on the individual costs for goods that are not interchangeable, the average price method for oil and gas inventories, or the FIFO method for chemical products. Costs of production comprise directly attributable material and labor costs as well as fixed and variable indirect material and production overhead costs. In refineries, a carrying capacity approach is applied according to which the production costs are allocated to product groups on the basis of their relative market values at the end of the period.
In EUR mn |
|
|
|---|---|---|
|
2024 |
2023 |
Crude oil |
652 |
585 |
Natural gas |
582 |
367 |
Petrochemical feedstock |
308 |
364 |
Other raw materials and supplies |
416 |
341 |
Refined petroleum products (including work in progress) |
1,041 |
1,013 |
Petrochemical products (including work in progress) |
853 |
785 |
Other finished products |
84 |
73 |
Inventories |
3,936 |
3,529 |
The line item “Purchases (net of inventory variation)” in OMV’s Consolidated Income Statement includes costs of goods and materials, inventory changes and inventory valuations. In 2024, net income from inventory valuation amounting to EUR 294 mn was recognized, compared to net expenses of EUR 73 mn in 2023. The figures in both years were mainly related to gas in storage.