OCI N.V. (\u2018OCI\u2019 or \u2018Company\u2019) was established on 2 January 2013 as a public limited liability company incorporated under Dutch law, with its head office located at Honthorststraat 19, Amsterdam, the Netherlands. OCI is registered in the Dutch commercial register under no. 56821166 dated 2 January 2013. The consolidated financial statements comprise the financial statements of the Company, its subsidiaries (together referred to as the \u2018Group\u2019) and the Group\u2019s interests in associates and joint ventures.
\nThe Group is primarily involved in the production and distribution of hydrogen-based and natural gas-based products.
\nThe consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU). The consolidated financial statements have been prepared on the historical cost convention, except when otherwise indicated.
\nThe financial year of the Group commences on 1 January and ends on 31 December. The Company\u2019s functional currency is the Euro (\u2018EUR\u2019). The Group presentation currency is the US dollar, as the Group\u2019s major foreign operations have the US dollar as their functional currency. All values are rounded to the nearest tenth of a million (in millions of USD), except when stated otherwise.
\nOn 15 December 2023 and 16 December 2023, OCI entered into agreements for the sale of its equity interests in Fertiglobe plc and Iowa Fertilizer Company LLC (\"IFCo\"), respectively. The consolidated statement of profit and loss in 2023 and 2022 has been (re)presented to show separately the impacts of continuing and discontinued operations. The consolidated statement of financial position in 2023 separately discloses the assets and liabilities held for sale, adhering to the requirements of IFRS 5. Further information is included in note 22 Discontinued operations and assets & liabilities held for sale. This results in a material presentation change to the 2023 financial statements.
\nThese financial statements have been authorized for issue by the Company\u2019s Board of Directors on 20 March 2024. These consolidated financial statements are subject to adoption by the Annual General Meeting of Shareholders.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-8": { "value": "OCI N.V.", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-2": { "value": "public limited liability company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-4": { "value": "Honthorststraat 19, Amsterdam, the Netherlands.", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-6": { "value": "The Group is primarily involved in the production and distribution of hydrogen-based and natural gas-based products.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-456": { "value": "\nThe consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU). The consolidated financial statements have been prepared on the historical cost convention, except when otherwise indicated.
\nThe financial year of the Group commences on 1 January and ends on 31 December. The Company\u2019s functional currency is the Euro (\u2018EUR\u2019). The Group presentation currency is the US dollar, as the Group\u2019s major foreign operations have the US dollar as their functional currency. All values are rounded to the nearest tenth of a million (in millions of USD), except when stated otherwise.
\nOn 15 December 2023 and 16 December 2023, OCI entered into agreements for the sale of its equity interests in Fertiglobe plc and Iowa Fertilizer Company LLC (\"IFCo\"), respectively. The consolidated statement of profit and loss in 2023 and 2022 has been (re)presented to show separately the impacts of continuing and discontinued operations. The consolidated statement of financial position in 2023 separately discloses the assets and liabilities held for sale, adhering to the requirements of IFRS 5. Further information is included in note 22 Discontinued operations and assets & liabilities held for sale. This results in a material presentation change to the 2023 financial statements.
\nThese financial statements have been authorized for issue by the Company\u2019s Board of Directors on 20 March 2024. These consolidated financial statements are subject to adoption by the Annual General Meeting of Shareholders.
\nWe have performed an assessment of the entity\u2019s ability to continue as a going concern for at least 12 months from the date of preparation of the Consolidated financial statements and have not identified any events or conditions that may cast significant doubt on the entity\u2019s ability to continue as a going concern. Our assessment included, amongst others, the impact of the intended disposal of the Company\u2019s investment in Fertiglobe plc and IFCo, our intended debt deleverage, the funding of the remaining capital expenditure required to complete Texas Blue Clean Ammonia, and the intended extraordinary return of capital to shareholders in FY 2024, including the proposed distribution as described in note 33 Subsequent events. We have also prepared a forecast for the continuing operations, including cash flows for at least 12 months from the date of preparation of the financial statements and taking into account the developments in the industry and market price developments in gas, ammonia, fertilizer and methanol.
\nOCI is committed to environmental principles integrated into our strategic objectives. These strategic objectives include a commitment to 20% green house gas intensity reduction by 2030 in comparison to 2019 and carbon neutrality by 2050 as well as 100% purchased electricity from renewable sources by 2030.
\nFor OCI\u2019s decarbonization roadmap, refer to the section Decarbonization roadmap and for the latest environmental performance, refer to the section Environmental performance of the Annual Report.
\nThe impact of this climate roadmap has been considered when preparing these consolidated financial statements. For more information, refer to note 5 Critical accounting judgment, estimates and assumptions.
\nThe consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU). The consolidated financial statements have been prepared on the historical cost convention, except when otherwise indicated.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-459": { "value": "\nThe financial year of the Group commences on 1 January and ends on 31 December. The Company\u2019s functional currency is the Euro (\u2018EUR\u2019). The Group presentation currency is the US dollar, as the Group\u2019s major foreign operations have the US dollar as their functional currency. All values are rounded to the nearest tenth of a million (in millions of USD), except when stated otherwise.
\nThe financial statements of foreign operations, including subsidiaries, joint ventures, joint operations, and associates, are prepared in the currencies which are determined based on the primary economic environment in which they operate (\u2018the functional currency\u2019). Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the transaction dates. At each balance sheet date, monetary items denominated in foreign currencies are revalued into the entity\u2019s functional currency at the then prevailing closing-rates.
\nExchange differences arising on the settlement and translation of monetary items are included in profit or loss for the period except when deferred to other comprehensive income for financial assets at fair value through other comprehensive income and the effective part of qualifying cash flow hedges.
\nUpon consolidation, the assets and liabilities of subsidiaries with a functional currency other than the US dollars are translated into US dollars using the exchange rates prevailing at the balance sheet date. Income and expense items are translated using exchange rates prevailing at the date of the transactions. Investments in joint ventures and associates with a functional currency other than the US dollars are translated into US dollars using exchange rates prevailing on the balance sheet date. Exchange rate differences arising during consolidation and on the translation of investments in subsidiaries, joint arrangements and associates and monetary items that form part of net investments in foreign operations are included in other comprehensive income, as \u2018Currency translation differences\u2019.
\nWhen a foreign operation is (partly) disposed of or sold, (the proportionate share of) the related currency translation differences that were recorded in other comprehensive income are recycled to profit or loss as part of the gain or loss on disposal or sale. Goodwill and fair value adjustments arising on the acquisition of a foreign subsidiary are considered as assets and liabilities denominated in the functional currency of the foreign subsidiary.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-460": { "value": "\nThese financial statements have been authorized for issue by the Company\u2019s Board of Directors on 20 March 2024. These consolidated financial statements are subject to adoption by the Annual General Meeting of Shareholders.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-461": { "value": "\nThe Group has applied the accounting policies set out in note 3 consistently over both periods presented in these consolidated financial statements.
\nThe consolidated financial statements include the financial statements of OCI, its subsidiaries and the Group\u2019s interests in associates and joint ventures.
\nSubsidiaries are all companies to which OCI has power over the relevant activities of the investee, is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, control accompanies a shareholding of more than half of the shares issued and related voting power. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases.
\nWhen the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any investment retained in the former subsidiary is recognized at fair value. The fair value shall be regarded as the fair value on initial recognition of a financial asset or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. Any resulting gain or loss is recognized in profit or loss including related cumulative translation adjustments accumulated in other comprehensive income. If a subsidiary becomes an associate or joint venture, the interest retained is subsequently measured in accordance with the equity method. The principal subsidiaries are listed in note 35.
\nIntra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group\u2019s interest in the investees. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
\nNon-controlling interests is presented as a separate component in equity. \u2018Profit or loss\u2019 and \u2018Total comprehensive income\u2019 attributable to the non-controlling interests are presented as a separate line item in the consolidated statement of profit or loss and other comprehensive income.
\nNon-controlling interests are measured at their proportionate share of the acquiree\u2019s identifiable net assets at the balance sheet date. Changes in Group\u2019s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
\nAssociates are companies in which the Group exercises significant influence over the financial and operating policies, but does not have control. Significant influence is presumed to exist when the Group holds 20% to 50% of the outstanding shares and related voting rights of the investee. Associates are accounted for under the equity method. The Group\u2019s share of the profit or loss of an associate is recognized in the Group's profit or loss from the date when significant influence begins up to the date when that significant influence ceases.
\nThe Group's share of the other comprehensive income of an investee is recognized in consolidated other comprehensive income. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group\u2019s interest in associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Unrealized gains on transactions between two associates are not eliminated. Investments in associates with negative shareholder\u2019s equity are impaired. The Group\u2019s share of losses in an associate may equal or exceed its interest in the associate (which includes any long-term interest that, in substance, forms part of the Group\u2019s net investment in an associate). In these cases, the Group recognizes a provision for further losses only to the extent that the Group has incurred a legal or constructive obligation or made payments on behalf of the associate.
\nInvestments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations of each investor. Those joint arrangements that are assessed as joint ventures are accounted for using the equity method. Interests in joint ventures are initially recognized at cost and adjusted subsequently for the Group\u2019s share in the post-acquisition profit or loss and movements in comprehensive income.
\nThe Group\u2019s share of losses in a joint venture may equal or exceed its interest in the joint venture (which includes any long-term interest that, in substance, forms part of the Group\u2019s net investment in joint ventures). In these cases, the Group recognizes a provision for further losses only to the extent that the Group has incurred a legal or constructive obligation or made payments on behalf of the joint venture.
\nJoint operations are accounted for by recognizing the direct right to the assets, liabilities, revenues and expenses of joint operations and the Group's share of any jointly held or incurred assets, liabilities, revenues and expenses.
\nBusiness combinations are accounted for using the acquisition method. As at the acquisition date, the Group measures the consideration transferred, the fair value of the identifiable assets acquired and liabilities assumed and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets. Acquisition related costs are expensed as incurred and included in administrative expenses.
\nWhen the Group acquires a business, it assesses the classification of particular financial assets as fair value through profit or loss, amortized cost or fair value through other comprehensive income. The Group assesses the classification of financial liabilities as either fair value through profit or loss or amortized cost. The Group makes an assessment of whether embedded derivatives of the acquiree should be separated from their host contracts. If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss or other comprehensive income, as appropriate.
\nThe consideration transferred in exchange for the acquiree includes any asset or liability resulting from contingent consideration arrangements. The Group measures the fair value of contingent consideration as at the acquisition date.
\nChanges in the fair value of consideration that are not measurement period adjustments shall be adjusted as follows:
Contingent consideration classified as equity shall not be remeasured.
Other contingent consideration shall be measured at fair value with changes recognized in profit or loss.
The financial statements of foreign operations, including subsidiaries, joint ventures, joint operations, and associates, are prepared in the currencies which are determined based on the primary economic environment in which they operate (\u2018the functional currency\u2019). Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the transaction dates. At each balance sheet date, monetary items denominated in foreign currencies are revalued into the entity\u2019s functional currency at the then prevailing closing-rates.
\nExchange differences arising on the settlement and translation of monetary items are included in profit or loss for the period except when deferred to other comprehensive income for financial assets at fair value through other comprehensive income and the effective part of qualifying cash flow hedges.
\nUpon consolidation, the assets and liabilities of subsidiaries with a functional currency other than the US dollars are translated into US dollars using the exchange rates prevailing at the balance sheet date. Income and expense items are translated using exchange rates prevailing at the date of the transactions. Investments in joint ventures and associates with a functional currency other than the US dollars are translated into US dollars using exchange rates prevailing on the balance sheet date. Exchange rate differences arising during consolidation and on the translation of investments in subsidiaries, joint arrangements and associates and monetary items that form part of net investments in foreign operations are included in other comprehensive income, as \u2018Currency translation differences\u2019.
\nWhen a foreign operation is (partly) disposed of or sold, (the proportionate share of) the related currency translation differences that were recorded in other comprehensive income are recycled to profit or loss as part of the gain or loss on disposal or sale. Goodwill and fair value adjustments arising on the acquisition of a foreign subsidiary are considered as assets and liabilities denominated in the functional currency of the foreign subsidiary.
\nIFRS 9 contains three principal classification and measurement categories for financial assets: amortized cost, fair value through profit or loss (\u2018FVTPL\u2019) and fair value through other comprehensive income (\u2018FVOCI\u2019). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
\nTrade and other receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the \u2018hold-to-collect\u2019 business model criteria for amortized cost measurement. Interest income from these assets is included in finance income using the effective interest rate method. Any gain or loss on derecognition is recognized directly in profit or loss. The Group sells certain trade receivables under a securitization agreement to a third party. For these selected debtors the Group will use the \u2018hold-to-collect-and-sell business model\u2019 as defined under IFRS 9 and will measure these receivables going forward at FVOCI.
\nDerivative financial instruments held by the Group are classified in the category FVTPL, unless the instrument is designated in a hedge relationship and the hedge meets the requirements for hedge accounting.
\nEquity investments, previously recognized as available-for-sale assets, are measured at FVOCI, based on the irrevocable election made by the Group. The Group elected this approach as these investments are not held for trading. Movements in the carrying amount are recognized in other comprehensive income, except for the recognition of impairment gains and losses, interest income and foreign exchange gains and losses which are recognized in the profit or loss. On derecognition the cumulative gain or loss recognized in other comprehensive income is not recycled from equity to profit or loss, and this cumulative change is reclassified within equity from accumulated other comprehensive income to retained earnings. Dividend income is recognized in profit or loss when the Group\u2019s right to receive payment is established.
\nThe Group has physical purchase contracts in place to procure natural gas for its production activities. These contracts are not accounted for as financial instruments if they meet the criteria for the own use exemption. The own use exemption applies to contracts that are entered into and continue to be held for the receipt of a non-financial item in accordance with the Group\u2019s expected purchase, sale or usage requirements and where the Group does not have a past practice of settling these contracts for a net amount of cash.
\nWhen a derivative instrument or a non-derivative financial liability is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of changes in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is recognized in other comprehensive income and presented in the translation reserve within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and losses on the non-derivative is recognized immediately in profit or loss. The amount recognized in other comprehensive income is fully or partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal of the foreign operation, respectively.
\nWhen a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognized in other comprehensive income is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.
\nFinancial liabilities, like loans and borrowings and trade and other payables, are measured at amortized cost, unless the financial liability:
Is a derivative at FVTPL;
Arose from the transfer of a financial assets that does not qualify for derecognition or if the continuing involvement approach applies;
Is a financial guarantee contract;
Is a commitment to provide a loan at a below-market interest rate; or
Is a contingent consideration resulting from a business combination to which IFRS 3 applies, measured at FVTPL.
The impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses. The Group allocates each exposure to a credit risk grade based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited financial statements, management accounts, cash flow projections and available press information about customers) and applies experienced credit judgment. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default and are aligned to external credit definitions from agencies (Standard & Poor\u2019s). Exposure within each credit risk grade are segmented by geographic region classification and an ECL rate is calculated for each segment based on delinquency status and actual credit loss experience over the past seven years (if possible). These rates are multiplied by scalar factors to reflect differences between economic conditions during the period over which historical data has been collected, current conditions and the Group\u2019s view of economic conditions over the expected lives of the financial instruments
\nFor the assessment of loss allowance for expected credit losses, a simplified model for trade receivables is applied. The loss allowance is measured at initial recognition and throughout the life of the receivable at an amount equal to lifetime ECL. They are estimated based on the present value of all cash shortfalls over the remaining expected life of the financial asset, i.e., the difference between:
The contractual cash flows that are due to an entity under the contract, and;
The cash flows that the holder expects to receive.
In order to assess the lifetime ECLs for trade receivables, both historic credit losses experience and forward-looking information is assessed.
\nExpected losses on trade receivables are recognized on a separate line item in the statement of profit and loss, if any.
\nFor other receivables (and other financial assets) the Group measures the loss allowance at an amount equal to the lifetime ECLs if the credit risk on that financial instrument has increased significantly since initial recognition. If at the reporting date, the credit risk of other receivables has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.
\nDerivative financial assets and derivative financial liabilities are measured at fair value. The Group investigates whether the counterparty\u2019s creditworthiness gives rise to a change in fair value. When determining the fair value, credit value and debit value adjustments are taken into account.
\nCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less from the acquisition date (original maturity) that are subject to an insignificant risk of changes in their fair value and are used by the Group in the management of its short-term commitments. Restricted cash comprises cash balances where specific restrictions exist on the Group's ability to use this cash.
\nOrdinary shares are classified as equity. Share premium is the excess amount received over the par value of the shares. Incremental costs directly attributable to the issue of new shares are recognized in equity as a deduction, net of tax, from the proceeds. When ordinary shares are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of tax effects, is recognized as a deduction from \u2018Reserves\u2019. Repurchased shares are classified as treasury shares and are presented in \u2018Reserves\u2019. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in \u2018Reserves\u2019, and the resulting surplus or deficit on the transaction is presented in share premium.
\nItems of property, plant and equipment are measured at cost less accumulated depreciation and any impairment. Cost includes any expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes cost of material, direct labour, other directly attributable cost incurred to bring the asset ready to its intended use, including the cost of asset retirement obligations and any capitalized borrowing cost.
\nPurchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When different parts of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
\nAny gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognized in profit or loss. Subsequent expenditures are capitalized only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance costs are expensed as incurred. Spare parts of property, plant and equipment are recognized under property, plant and equipment if the average turn-over exceeds 12 months or more, the cost exceeds USD 10,000 and the part is key for the functioning of the plant. Other spare parts are recognized within inventories.
\nExpenditures incurred for purchasing and constructing property, plant and equipment are initially recorded as \u2018under construction\u2019 until the asset is completed and ready for use. Upon the completion of the assets, the recognized costs are reclassified from \u2018under construction\u2019 to its final category of property, plant and equipment. Assets under construction are not depreciated and are measured at cost less any impairment losses.
\nItems of property, plant and equipment are depreciated on a straight-line basis through profit or loss over the estimated useful lives of each component, taking into account any residual values. Land is not depreciated. Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.
\nDepreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if necessary by the Group.
\nThe estimated useful lives for items of property, plant and equipment are as follows: | Years |
|---|---|
Buildings | 10 - 50 |
Plant and equipment | 5 - 30 |
Fixtures and fittings | 3 - 10 |
Borrowing costs attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to get ready for their intended use or sale, are recognized as part of the cost of those assets. All other borrowing costs are recognized as \u2018Finance cost\u2019 in the period in which they are incurred.
\nGoodwill represents the excess of total consideration transferred over the sum of the net amount of identifiable assets acquired and liabilities assumed and the non-controlling interest of the acquiree. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognized in profit or loss.
\nGoodwill on acquisition of entities that qualify as subsidiaries is presented under \u2018Goodwill and intangible assets\u2019. Goodwill on acquisitions of entities that qualify as associates or joint ventures is included in \u2018Equity-accounted investees\u2019. Goodwill on acquisition of subsidiaries is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or group of units that are expected to benefit from the business combination through which the goodwill arose, based on past experience.
\nGoodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any impairment losses. Goodwill is tested annually for impairment; an impairment loss is recognized for the amount by which the cash-generating unit\u2019s carrying amount exceeds its recoverable amount. The recoverable amount of the cash-generating unit is determined by the higher of its fair value less cost to sell and its value in use. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity include the carrying amount of goodwill related to the entity sold. All other expenditures on internally generated goodwill and other intangible assets are recognized in profit or loss as incurred.
\nOther intangible assets with a finite useful life (licenses, customer relations, trade names, software and other rights that are acquired separately or through business combinations) are amortized on a straight-line basis in profit or loss over their estimated useful lives. Amortization takes into account any residual value and impairment losses, from the date that the assets are available for use. Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if necessary.
\nThe estimated useful lives of intangible assets are as follows: | Years |
|---|---|
Licenses and trade names | 3 - 10 |
Purchased rights and other | 4 - 10 |
Software | 1 - 5 |
Inventories are measured at the lower of cost and net realizable value. The cost of inventories of raw materials, spare parts and supplies are based on the weighted average principle or the first-in-first-out method, and includes expenditures incurred in acquiring the inventories and bringing them to their existing location and condition. In case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
\nNon-financial assets that have an indefinite useful life, for example goodwill, are not subject to amortization but are tested annually for impairment or more frequently when indicators of impairment arise. Assets with a finite useful life are subject to depreciation or amortization and are reviewed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the assets\u2019 recoverable amount is estimated.
\nFor the purpose of assessing impairment, assets are grouped based on the lowest level for which there are separately identifiable cash flows (cash-generating units). An impairment loss is recognized for the amount by which the assets\u2019 carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in use. The value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit by continued use. Impairment losses are recognized in profit or loss.
\nNon-financial assets, which are impaired, are tested periodically to determine whether the recoverable amount has increased and the impairment be (partially) reversed. Impairment losses on goodwill are not reversed.
\nFor other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversal of impairments is only permitted if, in a subsequent period after an impairment loss has been recognized, the amount of the impairment loss decreases and the decrease can be related objectively to an event after the impairment loss was recognized.
\nProvisions are recognized when a present legal or constructive obligation based on past events exists, and it is probable that an outflow of economic benefits is required to settle the obligation. If the outflow is probable, but cannot be determined reliably, the obligation is disclosed. The non-current part of provisions is determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
\nThe Group recognizes a provision if the Group has an obligation to restore a leased asset in its original condition at the end of its lease term or there are legal requirements with respect to cleanup of contamination of land, and a reliable estimate can be made. Based on the land lease of their production facilities, some entities have the obligation to restore their site upon decommissioning.
\nThe Group has not recorded a liability for asset retirement obligations, as it does not believe there is currently a reasonable basis for estimating a date or range of dates of cessation of the operations, which is necessary to estimate the present value of this liability.
\nThe Group is subject to legal and regulatory proceedings in various jurisdictions. Such proceedings may result in criminal or civil sanctions, penalties or disgorgements against the Group. If it is probable that an obligation to the Group exists, which will result in an outflow of resources and the amount of the outflow can be reliably estimated, a provision is recognized.
\nOnerous contracts are contracts for which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. The net costs of continuing with the contract is determined based on both the incremental costs necessary to fulfill the obligation under the contract and an allocation of other costs that relate directly to fulfilling that contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.
\nRevenues are recognized for the transfer of goods or services to customers in the ordinary course of the Group\u2019s activities, in the amounts that reflect the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue is recognized when the Group satisfies the performance obligations by transferring promised goods or services to customers.
\nThe main performance obligation of the Group is the transfer of the Group\u2019s fertilizer and chemical products to customers. Revenue from the sale of fertilizer and chemical products are the two main revenue streams of the Group.
\nGoods are transferred when the customer obtains control of the asset. The timing of when control transfers depends on the sales and shipping terms agreed. Depending on its nature and the agreed sales terms, a performance obligation is either satisfied at certain point in time or over a certain period of time. Revenue is recognized net of expected discounts and rebates to customers. Accumulated experience and management judgment is used to estimate and provide for the discounts and rebates and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur.
\nThe Group does not have any contracts where the period of time between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, no adjustment is made to transaction prices for the time value of money.
\nGovernment grants that compensate the Group for expenses incurred are recognized in profit or loss as \u2018Other income\u2019 on a systematic basis in the periods in which the expenses are recognized. When the grant relates to an asset, it is recognized at the nominal amount of the grant and subsequently recognized as income in equal amounts over the expected useful life of the related asset, if applicable.
\nOther government grants are recognized initially as deferred income at fair value when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Subsequently, these are recognized in profit or loss as \u2018Other income\u2019 on a systematic basis over the useful life of the asset.
\nThe Group receives European Emission Allowances (\u201cEUAs\u201d) as a result of its industrial activities in the Netherlands. The EUAs are granted annually in advance by the Dutch Emission Authority. The amount of EUAs granted is based on an estimate of CO2 emissions in the Netherlands and the effective European emission legislation. In arrears, the Group must refund allowances to the Dutch Emission Authority based on actual CO2 emissions during the year. In December 2022, the European Parliament (\u201cEP\u201d) and the Council reached a provisional agreement on the reform of the EU Emissions Trading System (\u201cETS\u201d) as a result of which the free allocation of allowances within the EU ETS will be phased out gradually.
\nThe grant of these allowances is within the scope of IAS 20 Government Grants. The Group applies a specific accounting policy for the receipt of EUAs, different than the generic accounting for government grants. Upon initial recognition, the EUA\u2019s are recognized as inventory at the nominal amount of the grant (Nil). Concurrently, a liability is recognized for the obligation to refund the allowances for CO2 emissions during the compliance period. When no excess or deficit is identified, no liability is recognized as the Group has sufficient EUAs to settle the liability.
\nThe excess or deficit is calculated and recorded separately for each production facility. If a deficit in EUAs is identified, the Group has to purchase additional EUAs on the commodity markets to settle its liability to the Dutch Emission Authority. Purchased EUAs are recognized at cost and classified as inventory. The cost of the purchased EUAs to settle the liability for emission allowances during any given compliance period are recognized in cost of sales.
\nEUAs in excess of the liability to the Dutch Emission Authority that are controlled by the Group can be sold for the benefit of the Group. Sales of EUAs in excess of the liability for emission allowances during any given compliance period are recognized in cost of sales.
\nWhether an arrangement is, or contains, a lease is assessed at the commencement date of the lease. In general, an arrangement is considered to be or to contain a lease when all of the following apply:
There is an identified asset;
The Group obtains substantially all economic benefits from the use of the asset; and
The Group can direct the use of the identified asset.
Lease obligations are recognized based on the present value of the future minimum lease payments.
\nRight-of-use assets are initially valued at an amount equal to the lease liabilities. As leases do not easily provide for an implicit rate, the Group uses the incremental borrowing rate. The measurement at initial recognition may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option.
\nFor leases, each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statement of profit or loss over the term of the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset\u2019s useful life and the lease term on a straight-line basis.
\nThe Group has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For leases of offices and buildings, we account for the lease and non-lease components separately. For these types of leases, the allocation of the consideration between lease and non-lease components is based on the relative stand-alone prices of lease components included in the lease arrangements. Leases are presented as \u2018Right-of-use assets\u2019 and \u2018Lease obligations\u2019. Short term leases (less than 12 months) or low value leases (less than USD 5,000) are expensed through the statement of profit or loss as incurred.
\nFinance income comprises:
Interest income on funds invested (including on financial assets at fair value through other comprehensive income);
Gains on the disposal of financial assets at fair value through other comprehensive income;
Dividend income (excluding dividend from equity-accounted investees and subsidiaries);
Fair value gains on financial assets at fair value through profit or loss; and
Gains on hedging instruments related to foreign currency and interest rate derivatives that are recognized in profit or loss including reclassifications of amounts previously recognized in other comprehensive income.
Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Group\u2019s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date.
\nFinance cost comprises:
Interest expense on borrowings;
Unwinding of the discount on provisions and contingent consideration;
Interest expense related to lease obligations;
Losses on disposal of financial assets at fair value through other comprehensive income;
Fair value losses on financial assets at fair value through profit or loss;
Loss on hedging instruments related to foreign currency and interest rate derivatives that are recognized in profit or loss including reclassifications of amounts previously recognized in other comprehensive income; and
Impairment losses recognized on financial assets (other than trade receivables).
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss and expensed as incurred. Foreign currency gains and losses are recognized on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
\nCertain Group subsidiaries provide to their employees pension plans, end of service remuneration plans and long-term service benefits. These pension plans qualify as defined contribution plans. Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.
\nShort-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if both the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
\nThe Group long-term employee benefits are recognized if both the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably to determine its present value. The discount rate is the yield at the balance sheet date on triple-A (\u2018AAA\u2019) credit rated bonds that have maturity dates approximating the terms of the Group\u2019s obligations. Re-measurements are recognized in profit or loss in the period in which they arise.
\nEmployee termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when the Group is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or when the Group is providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to their present value.
\nCertain employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments. The grant date fair value of equity-settled share-based payment awards granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period (the vesting period) that the employees render service and become unconditionally entitled to the awards.
\nThe amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. At each reporting date, the progress of non-market conditions is measured and the expenses are trued-up accordingly.
\nCurrent tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. Current tax also includes any tax arising from the declaration of dividends. Current income tax receivable and payable are offset when there is a legally enforceable right to offset and when the current income tax relates to the same fiscal authority.
\nDeferred tax liabilities are recognized for all taxable temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements (\u2018balance sheet\u2019 method).
\nDeferred tax assets are recognized for all deductible temporary differences, unused carry forward losses and unused carry forward tax credits, to the extent that it is probable that future taxable profit will be available against which the deferred income tax assets can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.
\nDeferred income tax is not recognized if it arises from initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction it affects neither accounting nor taxable profit or loss. No deferred income tax is recognized from the initial recognition of goodwill. Also, no deferred tax is recognized from investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.
\nDeferred income tax is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date, Deferred income tax reflects uncertainty related to income taxes, if any.
\nDeferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax relates to the same fiscal authority.
\nIn cases where it is concluded it is not probable that the tax authorities will accept a tax treatment, the effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such changes to tax assets and liabilities will impact the income tax expense in the period during which such a determination is made.
\nOCI has determined that the global minimum top-up tax, which is required to be paid under Pillar Two legislation, is an income tax in the scope of IAS 12. OCI has applied a temporary mandatory relief from deferred tax accounting for the impact of the top-up tax and accounts for Pillar Two taxes as a current tax when it is incurred.
\nAn operating segment is a component of an entity that engages in business activities for which it may earn revenues and incur expenses (including from transactions with other components of the same entity), whose operating results are regularly reviewed by the entity\u2019s Chief Operating Decision Maker (\u2018CODM\u2019) to make decisions about resource allocation and to assess its performance, and for which discrete financial information is available.
\nThe Group determines and presents operating segments on the basis of information that internally is provided to the CODM during the period.Operating segments are aggregated based on similar economic environments and similar products.
\nOperating segments are disclosed as reportable segments, its financial metrics exceed the quantitative thresholds of IFRS 8.
\nThe consolidated statement of cash flows has been prepared using the \u2018indirect\u2019 method. Cash flows in foreign currencies have been translated applying average exchange rates. Currency translation differences on cash are shown separately in the consolidated statement of cash flows. Cash flows from investing activities consist mostly of investments and divestments in property, plant and equipment, intangible assets, and acquisitions insofar as these are paid for in cash.
\nAcquisitions or disposals of subsidiaries are presented as part of investing activities.Cash flows relating to capitalized borrowing cost are presented as cash flows from operating activities. Cash flows from financing activities consist of acquisition or divestment of non-controlling interests, dividends paid to non-controlling interests, and settlement of derivatives with the exception of interest rate derivatives which are presented as cash flows used in operating activities.
\nCash flows from discontinued operations are presented separately from the cash flows from continuing operations.
\nEarnings per ordinary share are calculated by dividing the profit or loss (net) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. In making this calculation the (ordinary) treasury shares are deducted from the number of ordinary shares outstanding. The calculation of the diluted earnings per share is based on the weighted average number of ordinary shares outstanding plus the potential increase as a result of the conversion of convertible bonds and the settlement of share-based compensation plans (share option plans).
\nAnti-dilutive effects are not included in the calculation. An adjustment is made to profit or loss (net) to eliminate interest charges, whilst allowing for effect of taxation. Regarding equity-settled share option plans it is assumed that all outstanding plans will vest. The dilutive effect of equity-settled share option plans is calculated based on the number of options issued, the exercise price of these options and the average market price of ordinary shares during the period.
\nThe difference between the number of ordinary shares issued and the number of ordinary shares that would have been issued at the average market price of ordinary shares for the period is considered as dilutive. This dilutive effect is only applied if the option has intrinsic value (i.e. is in the money).
\nThe Group classifies non-current assets or disposal groups as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. Non-current assets or disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell, with certain exceptions.
\nNon-current assets such as deferred tax assets, assets arising from employee benefits and financial assets are specifically exempt from this measurement requirement.Depreciation and amortization on non-current assets (including those that are part of a disposal group) ceases from the date that the non-current assets (or disposal groups) meet the criteria to be classified as held for sale.
\nNon-current assets or all assets of disposal groups classified as held for sale are presented separately from the other assets in the statement of financial position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the statement of financial position.
\nThe Group classifies a component of the business as discontinued operations if the following criteria are met: the operations and cash flows of the component can be clearly distinguished from the rest of the Group, it represents a separate major line of the business, and it is part of a plan to dispose of a major line of business. Classification as a discontinued operation occurs at the earlier of the date of disposal or when the operation meets the criteria to be classified as held for sale.
\nThe results of discontinued operations are presented separately in the statement of profit or loss. When an operation is classified as discontinued operations, the comparative statement of profit or loss and other comprehensive income are re-presented as if the portion of the business had been discontinued from the start of the comparative year.
\nIntra-group transactions between continuing and discontinued operations are eliminated as part of the consolidated financial statements. Intra-group transactions are eliminated against discontinued operations when management determines that the arrangement is not expected to continue after the sale or disposal of the discontinued operation. Intra-group transactions are eliminated against continuing operations when management determines that the arrangement is expected to continue after the sale.
\nSome overhead costs, such as IT costs, personnel costs, and interest expenses, are expected to reduce after the sale of the disposal groups. To the extent that there is a legal agreement in place for overhead costs to transfer to the buyer of the disposal group, either as part of the purchase agreement or otherwise, these costs are presented as discontinued operations. All other stranded costs are presented as part of continuing operations.
\nThe consolidated statement of financial position notes including movement schedules, represents the total movement of both continuing and discontinued operations. The portion of the closing balance representing discontinued operations are separately reclassified to assets held for sale or liabilities held for sale. Reference is made to note 22.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-462": { "value": "\nThe consolidated financial statements include the financial statements of OCI, its subsidiaries and the Group\u2019s interests in associates and joint ventures.
\nSubsidiaries are all companies to which OCI has power over the relevant activities of the investee, is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, control accompanies a shareholding of more than half of the shares issued and related voting power. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases.
\nWhen the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any investment retained in the former subsidiary is recognized at fair value. The fair value shall be regarded as the fair value on initial recognition of a financial asset or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. Any resulting gain or loss is recognized in profit or loss including related cumulative translation adjustments accumulated in other comprehensive income. If a subsidiary becomes an associate or joint venture, the interest retained is subsequently measured in accordance with the equity method. The principal subsidiaries are listed in note 35.
\nIntra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group\u2019s interest in the investees. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
\nNon-controlling interests is presented as a separate component in equity. \u2018Profit or loss\u2019 and \u2018Total comprehensive income\u2019 attributable to the non-controlling interests are presented as a separate line item in the consolidated statement of profit or loss and other comprehensive income.
\nNon-controlling interests are measured at their proportionate share of the acquiree\u2019s identifiable net assets at the balance sheet date. Changes in Group\u2019s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-463": { "value": "\nSubsidiaries are all companies to which OCI has power over the relevant activities of the investee, is exposed or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, control accompanies a shareholding of more than half of the shares issued and related voting power. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases.
\nWhen the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any investment retained in the former subsidiary is recognized at fair value. The fair value shall be regarded as the fair value on initial recognition of a financial asset or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. Any resulting gain or loss is recognized in profit or loss including related cumulative translation adjustments accumulated in other comprehensive income. If a subsidiary becomes an associate or joint venture, the interest retained is subsequently measured in accordance with the equity method. The principal subsidiaries are listed in note 35.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-464": { "value": "\nNon-controlling interests is presented as a separate component in equity. \u2018Profit or loss\u2019 and \u2018Total comprehensive income\u2019 attributable to the non-controlling interests are presented as a separate line item in the consolidated statement of profit or loss and other comprehensive income.
\nNon-controlling interests are measured at their proportionate share of the acquiree\u2019s identifiable net assets at the balance sheet date. Changes in Group\u2019s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-465": { "value": "\nAssociates are companies in which the Group exercises significant influence over the financial and operating policies, but does not have control. Significant influence is presumed to exist when the Group holds 20% to 50% of the outstanding shares and related voting rights of the investee. Associates are accounted for under the equity method. The Group\u2019s share of the profit or loss of an associate is recognized in the Group's profit or loss from the date when significant influence begins up to the date when that significant influence ceases.
\nThe Group's share of the other comprehensive income of an investee is recognized in consolidated other comprehensive income. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group\u2019s interest in associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Unrealized gains on transactions between two associates are not eliminated. Investments in associates with negative shareholder\u2019s equity are impaired. The Group\u2019s share of losses in an associate may equal or exceed its interest in the associate (which includes any long-term interest that, in substance, forms part of the Group\u2019s net investment in an associate). In these cases, the Group recognizes a provision for further losses only to the extent that the Group has incurred a legal or constructive obligation or made payments on behalf of the associate.
\nInvestments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations of each investor. Those joint arrangements that are assessed as joint ventures are accounted for using the equity method. Interests in joint ventures are initially recognized at cost and adjusted subsequently for the Group\u2019s share in the post-acquisition profit or loss and movements in comprehensive income.
\nThe Group\u2019s share of losses in a joint venture may equal or exceed its interest in the joint venture (which includes any long-term interest that, in substance, forms part of the Group\u2019s net investment in joint ventures). In these cases, the Group recognizes a provision for further losses only to the extent that the Group has incurred a legal or constructive obligation or made payments on behalf of the joint venture.
\nJoint operations are accounted for by recognizing the direct right to the assets, liabilities, revenues and expenses of joint operations and the Group's share of any jointly held or incurred assets, liabilities, revenues and expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-466": { "value": "\nAssociates are companies in which the Group exercises significant influence over the financial and operating policies, but does not have control. Significant influence is presumed to exist when the Group holds 20% to 50% of the outstanding shares and related voting rights of the investee. Associates are accounted for under the equity method. The Group\u2019s share of the profit or loss of an associate is recognized in the Group's profit or loss from the date when significant influence begins up to the date when that significant influence ceases.
\nThe Group's share of the other comprehensive income of an investee is recognized in consolidated other comprehensive income. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group\u2019s interest in associates. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Unrealized gains on transactions between two associates are not eliminated. Investments in associates with negative shareholder\u2019s equity are impaired. The Group\u2019s share of losses in an associate may equal or exceed its interest in the associate (which includes any long-term interest that, in substance, forms part of the Group\u2019s net investment in an associate). In these cases, the Group recognizes a provision for further losses only to the extent that the Group has incurred a legal or constructive obligation or made payments on behalf of the associate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-467": { "value": "\nInvestments in joint arrangements are classified as either joint ventures or joint operations depending on the contractual rights and obligations of each investor. Those joint arrangements that are assessed as joint ventures are accounted for using the equity method. Interests in joint ventures are initially recognized at cost and adjusted subsequently for the Group\u2019s share in the post-acquisition profit or loss and movements in comprehensive income.
\nThe Group\u2019s share of losses in a joint venture may equal or exceed its interest in the joint venture (which includes any long-term interest that, in substance, forms part of the Group\u2019s net investment in joint ventures). In these cases, the Group recognizes a provision for further losses only to the extent that the Group has incurred a legal or constructive obligation or made payments on behalf of the joint venture.
\nJoint operations are accounted for by recognizing the direct right to the assets, liabilities, revenues and expenses of joint operations and the Group's share of any jointly held or incurred assets, liabilities, revenues and expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-468": { "value": "\nBusiness combinations are accounted for using the acquisition method. As at the acquisition date, the Group measures the consideration transferred, the fair value of the identifiable assets acquired and liabilities assumed and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets. Acquisition related costs are expensed as incurred and included in administrative expenses.
\nWhen the Group acquires a business, it assesses the classification of particular financial assets as fair value through profit or loss, amortized cost or fair value through other comprehensive income. The Group assesses the classification of financial liabilities as either fair value through profit or loss or amortized cost. The Group makes an assessment of whether embedded derivatives of the acquiree should be separated from their host contracts. If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss or other comprehensive income, as appropriate.
\nThe consideration transferred in exchange for the acquiree includes any asset or liability resulting from contingent consideration arrangements. The Group measures the fair value of contingent consideration as at the acquisition date.
\nChanges in the fair value of consideration that are not measurement period adjustments shall be adjusted as follows:
Contingent consideration classified as equity shall not be remeasured.
Other contingent consideration shall be measured at fair value with changes recognized in profit or loss.
Business combinations are accounted for using the acquisition method. As at the acquisition date, the Group measures the consideration transferred, the fair value of the identifiable assets acquired and liabilities assumed and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets. Acquisition related costs are expensed as incurred and included in administrative expenses.
\nWhen the Group acquires a business, it assesses the classification of particular financial assets as fair value through profit or loss, amortized cost or fair value through other comprehensive income. The Group assesses the classification of financial liabilities as either fair value through profit or loss or amortized cost. The Group makes an assessment of whether embedded derivatives of the acquiree should be separated from their host contracts. If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss or other comprehensive income, as appropriate.
\nThe consideration transferred in exchange for the acquiree includes any asset or liability resulting from contingent consideration arrangements. The Group measures the fair value of contingent consideration as at the acquisition date.
\nChanges in the fair value of consideration that are not measurement period adjustments shall be adjusted as follows:
Contingent consideration classified as equity shall not be remeasured.
Other contingent consideration shall be measured at fair value with changes recognized in profit or loss.
Goodwill represents the excess of total consideration transferred over the sum of the net amount of identifiable assets acquired and liabilities assumed and the non-controlling interest of the acquiree. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognized in profit or loss.
\nGoodwill on acquisition of entities that qualify as subsidiaries is presented under \u2018Goodwill and intangible assets\u2019. Goodwill on acquisitions of entities that qualify as associates or joint ventures is included in \u2018Equity-accounted investees\u2019. Goodwill on acquisition of subsidiaries is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or group of units that are expected to benefit from the business combination through which the goodwill arose, based on past experience.
\nGoodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any impairment losses. Goodwill is tested annually for impairment; an impairment loss is recognized for the amount by which the cash-generating unit\u2019s carrying amount exceeds its recoverable amount. The recoverable amount of the cash-generating unit is determined by the higher of its fair value less cost to sell and its value in use. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity include the carrying amount of goodwill related to the entity sold. All other expenditures on internally generated goodwill and other intangible assets are recognized in profit or loss as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-471": { "value": "\nThe financial statements of foreign operations, including subsidiaries, joint ventures, joint operations, and associates, are prepared in the currencies which are determined based on the primary economic environment in which they operate (\u2018the functional currency\u2019). Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the transaction dates. At each balance sheet date, monetary items denominated in foreign currencies are revalued into the entity\u2019s functional currency at the then prevailing closing-rates.
\nExchange differences arising on the settlement and translation of monetary items are included in profit or loss for the period except when deferred to other comprehensive income for financial assets at fair value through other comprehensive income and the effective part of qualifying cash flow hedges.
\nUpon consolidation, the assets and liabilities of subsidiaries with a functional currency other than the US dollars are translated into US dollars using the exchange rates prevailing at the balance sheet date. Income and expense items are translated using exchange rates prevailing at the date of the transactions. Investments in joint ventures and associates with a functional currency other than the US dollars are translated into US dollars using exchange rates prevailing on the balance sheet date. Exchange rate differences arising during consolidation and on the translation of investments in subsidiaries, joint arrangements and associates and monetary items that form part of net investments in foreign operations are included in other comprehensive income, as \u2018Currency translation differences\u2019.
\nWhen a foreign operation is (partly) disposed of or sold, (the proportionate share of) the related currency translation differences that were recorded in other comprehensive income are recycled to profit or loss as part of the gain or loss on disposal or sale. Goodwill and fair value adjustments arising on the acquisition of a foreign subsidiary are considered as assets and liabilities denominated in the functional currency of the foreign subsidiary.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-473": { "value": "\nIFRS 9 contains three principal classification and measurement categories for financial assets: amortized cost, fair value through profit or loss (\u2018FVTPL\u2019) and fair value through other comprehensive income (\u2018FVOCI\u2019). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
\nTrade and other receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the \u2018hold-to-collect\u2019 business model criteria for amortized cost measurement. Interest income from these assets is included in finance income using the effective interest rate method. Any gain or loss on derecognition is recognized directly in profit or loss. The Group sells certain trade receivables under a securitization agreement to a third party. For these selected debtors the Group will use the \u2018hold-to-collect-and-sell business model\u2019 as defined under IFRS 9 and will measure these receivables going forward at FVOCI.
\nDerivative financial instruments held by the Group are classified in the category FVTPL, unless the instrument is designated in a hedge relationship and the hedge meets the requirements for hedge accounting.
\nEquity investments, previously recognized as available-for-sale assets, are measured at FVOCI, based on the irrevocable election made by the Group. The Group elected this approach as these investments are not held for trading. Movements in the carrying amount are recognized in other comprehensive income, except for the recognition of impairment gains and losses, interest income and foreign exchange gains and losses which are recognized in the profit or loss. On derecognition the cumulative gain or loss recognized in other comprehensive income is not recycled from equity to profit or loss, and this cumulative change is reclassified within equity from accumulated other comprehensive income to retained earnings. Dividend income is recognized in profit or loss when the Group\u2019s right to receive payment is established.
\nThe Group has physical purchase contracts in place to procure natural gas for its production activities. These contracts are not accounted for as financial instruments if they meet the criteria for the own use exemption. The own use exemption applies to contracts that are entered into and continue to be held for the receipt of a non-financial item in accordance with the Group\u2019s expected purchase, sale or usage requirements and where the Group does not have a past practice of settling these contracts for a net amount of cash.
\nWhen a derivative instrument or a non-derivative financial liability is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of changes in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is recognized in other comprehensive income and presented in the translation reserve within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and losses on the non-derivative is recognized immediately in profit or loss. The amount recognized in other comprehensive income is fully or partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal of the foreign operation, respectively.
\nWhen a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognized in other comprehensive income is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.
\nFinancial liabilities, like loans and borrowings and trade and other payables, are measured at amortized cost, unless the financial liability:
Is a derivative at FVTPL;
Arose from the transfer of a financial assets that does not qualify for derecognition or if the continuing involvement approach applies;
Is a financial guarantee contract;
Is a commitment to provide a loan at a below-market interest rate; or
Is a contingent consideration resulting from a business combination to which IFRS 3 applies, measured at FVTPL.
The impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses. The Group allocates each exposure to a credit risk grade based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited financial statements, management accounts, cash flow projections and available press information about customers) and applies experienced credit judgment. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default and are aligned to external credit definitions from agencies (Standard & Poor\u2019s). Exposure within each credit risk grade are segmented by geographic region classification and an ECL rate is calculated for each segment based on delinquency status and actual credit loss experience over the past seven years (if possible). These rates are multiplied by scalar factors to reflect differences between economic conditions during the period over which historical data has been collected, current conditions and the Group\u2019s view of economic conditions over the expected lives of the financial instruments
\nFor the assessment of loss allowance for expected credit losses, a simplified model for trade receivables is applied. The loss allowance is measured at initial recognition and throughout the life of the receivable at an amount equal to lifetime ECL. They are estimated based on the present value of all cash shortfalls over the remaining expected life of the financial asset, i.e., the difference between:
The contractual cash flows that are due to an entity under the contract, and;
The cash flows that the holder expects to receive.
In order to assess the lifetime ECLs for trade receivables, both historic credit losses experience and forward-looking information is assessed.
\nExpected losses on trade receivables are recognized on a separate line item in the statement of profit and loss, if any.
\nFor other receivables (and other financial assets) the Group measures the loss allowance at an amount equal to the lifetime ECLs if the credit risk on that financial instrument has increased significantly since initial recognition. If at the reporting date, the credit risk of other receivables has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.
\nDerivative financial assets and derivative financial liabilities are measured at fair value. The Group investigates whether the counterparty\u2019s creditworthiness gives rise to a change in fair value. When determining the fair value, credit value and debit value adjustments are taken into account.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-474": { "value": "\nIFRS 9 contains three principal classification and measurement categories for financial assets: amortized cost, fair value through profit or loss (\u2018FVTPL\u2019) and fair value through other comprehensive income (\u2018FVOCI\u2019). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
\nTrade and other receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the \u2018hold-to-collect\u2019 business model criteria for amortized cost measurement. Interest income from these assets is included in finance income using the effective interest rate method. Any gain or loss on derecognition is recognized directly in profit or loss. The Group sells certain trade receivables under a securitization agreement to a third party. For these selected debtors the Group will use the \u2018hold-to-collect-and-sell business model\u2019 as defined under IFRS 9 and will measure these receivables going forward at FVOCI.
\nDerivative financial instruments held by the Group are classified in the category FVTPL, unless the instrument is designated in a hedge relationship and the hedge meets the requirements for hedge accounting.
\nEquity investments, previously recognized as available-for-sale assets, are measured at FVOCI, based on the irrevocable election made by the Group. The Group elected this approach as these investments are not held for trading. Movements in the carrying amount are recognized in other comprehensive income, except for the recognition of impairment gains and losses, interest income and foreign exchange gains and losses which are recognized in the profit or loss. On derecognition the cumulative gain or loss recognized in other comprehensive income is not recycled from equity to profit or loss, and this cumulative change is reclassified within equity from accumulated other comprehensive income to retained earnings. Dividend income is recognized in profit or loss when the Group\u2019s right to receive payment is established.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-475": { "value": "\nTrade and other receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the \u2018hold-to-collect\u2019 business model criteria for amortized cost measurement. Interest income from these assets is included in finance income using the effective interest rate method. Any gain or loss on derecognition is recognized directly in profit or loss. The Group sells certain trade receivables under a securitization agreement to a third party. For these selected debtors the Group will use the \u2018hold-to-collect-and-sell business model\u2019 as defined under IFRS 9 and will measure these receivables going forward at FVOCI.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-476": { "value": "\nDerivative financial instruments held by the Group are classified in the category FVTPL, unless the instrument is designated in a hedge relationship and the hedge meets the requirements for hedge accounting.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-477": { "value": "\nDerivative financial instruments held by the Group are classified in the category FVTPL, unless the instrument is designated in a hedge relationship and the hedge meets the requirements for hedge accounting.
\nWhen a derivative instrument or a non-derivative financial liability is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of changes in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is recognized in other comprehensive income and presented in the translation reserve within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and losses on the non-derivative is recognized immediately in profit or loss. The amount recognized in other comprehensive income is fully or partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal of the foreign operation, respectively.
\nWhen a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognized in other comprehensive income is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-478": { "value": "\nDerivative financial instruments held by the Group are classified in the category FVTPL, unless the instrument is designated in a hedge relationship and the hedge meets the requirements for hedge accounting.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-483": { "value": "\nWhen a derivative instrument or a non-derivative financial liability is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of changes in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is recognized in other comprehensive income and presented in the translation reserve within equity. Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains and losses on the non-derivative is recognized immediately in profit or loss. The amount recognized in other comprehensive income is fully or partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal of the foreign operation, respectively.
\nWhen a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognized in other comprehensive income is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-486": { "value": "\nFinancial liabilities, like loans and borrowings and trade and other payables, are measured at amortized cost, unless the financial liability:
Is a derivative at FVTPL;
Arose from the transfer of a financial assets that does not qualify for derecognition or if the continuing involvement approach applies;
Is a financial guarantee contract;
Is a commitment to provide a loan at a below-market interest rate; or
Is a contingent consideration resulting from a business combination to which IFRS 3 applies, measured at FVTPL.
Financial liabilities, like loans and borrowings and trade and other payables, are measured at amortized cost, unless the financial liability:
Is a derivative at FVTPL;
Arose from the transfer of a financial assets that does not qualify for derecognition or if the continuing involvement approach applies;
Is a financial guarantee contract;
Is a commitment to provide a loan at a below-market interest rate; or
Is a contingent consideration resulting from a business combination to which IFRS 3 applies, measured at FVTPL.
The impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses. The Group allocates each exposure to a credit risk grade based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited financial statements, management accounts, cash flow projections and available press information about customers) and applies experienced credit judgment. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default and are aligned to external credit definitions from agencies (Standard & Poor\u2019s). Exposure within each credit risk grade are segmented by geographic region classification and an ECL rate is calculated for each segment based on delinquency status and actual credit loss experience over the past seven years (if possible). These rates are multiplied by scalar factors to reflect differences between economic conditions during the period over which historical data has been collected, current conditions and the Group\u2019s view of economic conditions over the expected lives of the financial instruments
\nFor the assessment of loss allowance for expected credit losses, a simplified model for trade receivables is applied. The loss allowance is measured at initial recognition and throughout the life of the receivable at an amount equal to lifetime ECL. They are estimated based on the present value of all cash shortfalls over the remaining expected life of the financial asset, i.e., the difference between:
The contractual cash flows that are due to an entity under the contract, and;
The cash flows that the holder expects to receive.
In order to assess the lifetime ECLs for trade receivables, both historic credit losses experience and forward-looking information is assessed.
\nExpected losses on trade receivables are recognized on a separate line item in the statement of profit and loss, if any.
\nFor other receivables (and other financial assets) the Group measures the loss allowance at an amount equal to the lifetime ECLs if the credit risk on that financial instrument has increased significantly since initial recognition. If at the reporting date, the credit risk of other receivables has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.
\nDerivative financial assets and derivative financial liabilities are measured at fair value. The Group investigates whether the counterparty\u2019s creditworthiness gives rise to a change in fair value. When determining the fair value, credit value and debit value adjustments are taken into account.
\nNon-financial assets that have an indefinite useful life, for example goodwill, are not subject to amortization but are tested annually for impairment or more frequently when indicators of impairment arise. Assets with a finite useful life are subject to depreciation or amortization and are reviewed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the assets\u2019 recoverable amount is estimated.
\nFor the purpose of assessing impairment, assets are grouped based on the lowest level for which there are separately identifiable cash flows (cash-generating units). An impairment loss is recognized for the amount by which the assets\u2019 carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in use. The value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit by continued use. Impairment losses are recognized in profit or loss.
\nNon-financial assets, which are impaired, are tested periodically to determine whether the recoverable amount has increased and the impairment be (partially) reversed. Impairment losses on goodwill are not reversed.
\nFor other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversal of impairments is only permitted if, in a subsequent period after an impairment loss has been recognized, the amount of the impairment loss decreases and the decrease can be related objectively to an event after the impairment loss was recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-489": { "value": "\nThe impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses. The Group allocates each exposure to a credit risk grade based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited financial statements, management accounts, cash flow projections and available press information about customers) and applies experienced credit judgment. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of default and are aligned to external credit definitions from agencies (Standard & Poor\u2019s). Exposure within each credit risk grade are segmented by geographic region classification and an ECL rate is calculated for each segment based on delinquency status and actual credit loss experience over the past seven years (if possible). These rates are multiplied by scalar factors to reflect differences between economic conditions during the period over which historical data has been collected, current conditions and the Group\u2019s view of economic conditions over the expected lives of the financial instruments
\nFor the assessment of loss allowance for expected credit losses, a simplified model for trade receivables is applied. The loss allowance is measured at initial recognition and throughout the life of the receivable at an amount equal to lifetime ECL. They are estimated based on the present value of all cash shortfalls over the remaining expected life of the financial asset, i.e., the difference between:
The contractual cash flows that are due to an entity under the contract, and;
The cash flows that the holder expects to receive.
In order to assess the lifetime ECLs for trade receivables, both historic credit losses experience and forward-looking information is assessed.
\nExpected losses on trade receivables are recognized on a separate line item in the statement of profit and loss, if any.
\nFor other receivables (and other financial assets) the Group measures the loss allowance at an amount equal to the lifetime ECLs if the credit risk on that financial instrument has increased significantly since initial recognition. If at the reporting date, the credit risk of other receivables has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.
\nDerivative financial assets and derivative financial liabilities are measured at fair value. The Group investigates whether the counterparty\u2019s creditworthiness gives rise to a change in fair value. When determining the fair value, credit value and debit value adjustments are taken into account.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-494": { "value": "\nCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less from the acquisition date (original maturity) that are subject to an insignificant risk of changes in their fair value and are used by the Group in the management of its short-term commitments. Restricted cash comprises cash balances where specific restrictions exist on the Group's ability to use this cash.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-495": { "value": "\nCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less from the acquisition date (original maturity) that are subject to an insignificant risk of changes in their fair value and are used by the Group in the management of its short-term commitments. Restricted cash comprises cash balances where specific restrictions exist on the Group's ability to use this cash.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-496": { "value": "\nOrdinary shares are classified as equity. Share premium is the excess amount received over the par value of the shares. Incremental costs directly attributable to the issue of new shares are recognized in equity as a deduction, net of tax, from the proceeds. When ordinary shares are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of tax effects, is recognized as a deduction from \u2018Reserves\u2019. Repurchased shares are classified as treasury shares and are presented in \u2018Reserves\u2019. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in \u2018Reserves\u2019, and the resulting surplus or deficit on the transaction is presented in share premium.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-497": { "value": "\nItems of property, plant and equipment are measured at cost less accumulated depreciation and any impairment. Cost includes any expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes cost of material, direct labour, other directly attributable cost incurred to bring the asset ready to its intended use, including the cost of asset retirement obligations and any capitalized borrowing cost.
\nPurchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When different parts of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
\nAny gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognized in profit or loss. Subsequent expenditures are capitalized only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance costs are expensed as incurred. Spare parts of property, plant and equipment are recognized under property, plant and equipment if the average turn-over exceeds 12 months or more, the cost exceeds USD 10,000 and the part is key for the functioning of the plant. Other spare parts are recognized within inventories.
\nExpenditures incurred for purchasing and constructing property, plant and equipment are initially recorded as \u2018under construction\u2019 until the asset is completed and ready for use. Upon the completion of the assets, the recognized costs are reclassified from \u2018under construction\u2019 to its final category of property, plant and equipment. Assets under construction are not depreciated and are measured at cost less any impairment losses.
\nItems of property, plant and equipment are depreciated on a straight-line basis through profit or loss over the estimated useful lives of each component, taking into account any residual values. Land is not depreciated. Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.
\nDepreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if necessary by the Group.
\nThe estimated useful lives for items of property, plant and equipment are as follows: | Years |
|---|---|
Buildings | 10 - 50 |
Plant and equipment | 5 - 30 |
Fixtures and fittings | 3 - 10 |
Borrowing costs attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to get ready for their intended use or sale, are recognized as part of the cost of those assets. All other borrowing costs are recognized as \u2018Finance cost\u2019 in the period in which they are incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-498": { "value": "\nAny gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognized in profit or loss. Subsequent expenditures are capitalized only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance costs are expensed as incurred. Spare parts of property, plant and equipment are recognized under property, plant and equipment if the average turn-over exceeds 12 months or more, the cost exceeds USD 10,000 and the part is key for the functioning of the plant. Other spare parts are recognized within inventories.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-499": { "value": "\nItems of property, plant and equipment are depreciated on a straight-line basis through profit or loss over the estimated useful lives of each component, taking into account any residual values. Land is not depreciated. Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.
\nDepreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if necessary by the Group.
\nThe estimated useful lives for items of property, plant and equipment are as follows: | Years |
|---|---|
Buildings | 10 - 50 |
Plant and equipment | 5 - 30 |
Fixtures and fittings | 3 - 10 |
Borrowing costs attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to get ready for their intended use or sale, are recognized as part of the cost of those assets. All other borrowing costs are recognized as \u2018Finance cost\u2019 in the period in which they are incurred.
\nBorrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss and expensed as incurred. Foreign currency gains and losses are recognized on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-501": { "value": "\nGoodwill represents the excess of total consideration transferred over the sum of the net amount of identifiable assets acquired and liabilities assumed and the non-controlling interest of the acquiree. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognized in profit or loss.
\nGoodwill on acquisition of entities that qualify as subsidiaries is presented under \u2018Goodwill and intangible assets\u2019. Goodwill on acquisitions of entities that qualify as associates or joint ventures is included in \u2018Equity-accounted investees\u2019. Goodwill on acquisition of subsidiaries is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or group of units that are expected to benefit from the business combination through which the goodwill arose, based on past experience.
\nGoodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any impairment losses. Goodwill is tested annually for impairment; an impairment loss is recognized for the amount by which the cash-generating unit\u2019s carrying amount exceeds its recoverable amount. The recoverable amount of the cash-generating unit is determined by the higher of its fair value less cost to sell and its value in use. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity include the carrying amount of goodwill related to the entity sold. All other expenditures on internally generated goodwill and other intangible assets are recognized in profit or loss as incurred.
\nOther intangible assets with a finite useful life (licenses, customer relations, trade names, software and other rights that are acquired separately or through business combinations) are amortized on a straight-line basis in profit or loss over their estimated useful lives. Amortization takes into account any residual value and impairment losses, from the date that the assets are available for use. Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if necessary.
\nThe estimated useful lives of intangible assets are as follows: | Years |
|---|---|
Licenses and trade names | 3 - 10 |
Purchased rights and other | 4 - 10 |
Software | 1 - 5 |
Goodwill represents the excess of total consideration transferred over the sum of the net amount of identifiable assets acquired and liabilities assumed and the non-controlling interest of the acquiree. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognized in profit or loss.
\nGoodwill on acquisition of entities that qualify as subsidiaries is presented under \u2018Goodwill and intangible assets\u2019. Goodwill on acquisitions of entities that qualify as associates or joint ventures is included in \u2018Equity-accounted investees\u2019. Goodwill on acquisition of subsidiaries is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or group of units that are expected to benefit from the business combination through which the goodwill arose, based on past experience.
\nGoodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any impairment losses. Goodwill is tested annually for impairment; an impairment loss is recognized for the amount by which the cash-generating unit\u2019s carrying amount exceeds its recoverable amount. The recoverable amount of the cash-generating unit is determined by the higher of its fair value less cost to sell and its value in use. Impairment losses on goodwill are not reversed. Gains or losses on the disposal of an entity include the carrying amount of goodwill related to the entity sold. All other expenditures on internally generated goodwill and other intangible assets are recognized in profit or loss as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-504": { "value": "\nOther intangible assets with a finite useful life (licenses, customer relations, trade names, software and other rights that are acquired separately or through business combinations) are amortized on a straight-line basis in profit or loss over their estimated useful lives. Amortization takes into account any residual value and impairment losses, from the date that the assets are available for use. Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if necessary.
\nThe estimated useful lives of intangible assets are as follows: | Years |
|---|---|
Licenses and trade names | 3 - 10 |
Purchased rights and other | 4 - 10 |
Software | 1 - 5 |
Inventories are measured at the lower of cost and net realizable value. The cost of inventories of raw materials, spare parts and supplies are based on the weighted average principle or the first-in-first-out method, and includes expenditures incurred in acquiring the inventories and bringing them to their existing location and condition. In case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-507": { "value": "\nNon-financial assets that have an indefinite useful life, for example goodwill, are not subject to amortization but are tested annually for impairment or more frequently when indicators of impairment arise. Assets with a finite useful life are subject to depreciation or amortization and are reviewed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the assets\u2019 recoverable amount is estimated.
\nFor the purpose of assessing impairment, assets are grouped based on the lowest level for which there are separately identifiable cash flows (cash-generating units). An impairment loss is recognized for the amount by which the assets\u2019 carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in use. The value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit by continued use. Impairment losses are recognized in profit or loss.
\nNon-financial assets, which are impaired, are tested periodically to determine whether the recoverable amount has increased and the impairment be (partially) reversed. Impairment losses on goodwill are not reversed.
\nFor other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversal of impairments is only permitted if, in a subsequent period after an impairment loss has been recognized, the amount of the impairment loss decreases and the decrease can be related objectively to an event after the impairment loss was recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-508": { "value": "\nProvisions are recognized when a present legal or constructive obligation based on past events exists, and it is probable that an outflow of economic benefits is required to settle the obligation. If the outflow is probable, but cannot be determined reliably, the obligation is disclosed. The non-current part of provisions is determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
\nThe Group recognizes a provision if the Group has an obligation to restore a leased asset in its original condition at the end of its lease term or there are legal requirements with respect to cleanup of contamination of land, and a reliable estimate can be made. Based on the land lease of their production facilities, some entities have the obligation to restore their site upon decommissioning.
\nThe Group has not recorded a liability for asset retirement obligations, as it does not believe there is currently a reasonable basis for estimating a date or range of dates of cessation of the operations, which is necessary to estimate the present value of this liability.
\nThe Group is subject to legal and regulatory proceedings in various jurisdictions. Such proceedings may result in criminal or civil sanctions, penalties or disgorgements against the Group. If it is probable that an obligation to the Group exists, which will result in an outflow of resources and the amount of the outflow can be reliably estimated, a provision is recognized.
\nOnerous contracts are contracts for which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. The net costs of continuing with the contract is determined based on both the incremental costs necessary to fulfill the obligation under the contract and an allocation of other costs that relate directly to fulfilling that contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-509": { "value": "\nThe Group recognizes a provision if the Group has an obligation to restore a leased asset in its original condition at the end of its lease term or there are legal requirements with respect to cleanup of contamination of land, and a reliable estimate can be made. Based on the land lease of their production facilities, some entities have the obligation to restore their site upon decommissioning.
\nThe Group has not recorded a liability for asset retirement obligations, as it does not believe there is currently a reasonable basis for estimating a date or range of dates of cessation of the operations, which is necessary to estimate the present value of this liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-510": { "value": "\nThe Group is subject to legal and regulatory proceedings in various jurisdictions. Such proceedings may result in criminal or civil sanctions, penalties or disgorgements against the Group. If it is probable that an obligation to the Group exists, which will result in an outflow of resources and the amount of the outflow can be reliably estimated, a provision is recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-511": { "value": "\nRevenues are recognized for the transfer of goods or services to customers in the ordinary course of the Group\u2019s activities, in the amounts that reflect the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue is recognized when the Group satisfies the performance obligations by transferring promised goods or services to customers.
\nThe main performance obligation of the Group is the transfer of the Group\u2019s fertilizer and chemical products to customers. Revenue from the sale of fertilizer and chemical products are the two main revenue streams of the Group.
\nGoods are transferred when the customer obtains control of the asset. The timing of when control transfers depends on the sales and shipping terms agreed. Depending on its nature and the agreed sales terms, a performance obligation is either satisfied at certain point in time or over a certain period of time. Revenue is recognized net of expected discounts and rebates to customers. Accumulated experience and management judgment is used to estimate and provide for the discounts and rebates and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur.
\nThe Group does not have any contracts where the period of time between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, no adjustment is made to transaction prices for the time value of money.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-512": { "value": "\nGovernment grants that compensate the Group for expenses incurred are recognized in profit or loss as \u2018Other income\u2019 on a systematic basis in the periods in which the expenses are recognized. When the grant relates to an asset, it is recognized at the nominal amount of the grant and subsequently recognized as income in equal amounts over the expected useful life of the related asset, if applicable.
\nOther government grants are recognized initially as deferred income at fair value when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Subsequently, these are recognized in profit or loss as \u2018Other income\u2019 on a systematic basis over the useful life of the asset.
\nThe Group receives European Emission Allowances (\u201cEUAs\u201d) as a result of its industrial activities in the Netherlands. The EUAs are granted annually in advance by the Dutch Emission Authority. The amount of EUAs granted is based on an estimate of CO2 emissions in the Netherlands and the effective European emission legislation. In arrears, the Group must refund allowances to the Dutch Emission Authority based on actual CO2 emissions during the year. In December 2022, the European Parliament (\u201cEP\u201d) and the Council reached a provisional agreement on the reform of the EU Emissions Trading System (\u201cETS\u201d) as a result of which the free allocation of allowances within the EU ETS will be phased out gradually.
\nThe grant of these allowances is within the scope of IAS 20 Government Grants. The Group applies a specific accounting policy for the receipt of EUAs, different than the generic accounting for government grants. Upon initial recognition, the EUA\u2019s are recognized as inventory at the nominal amount of the grant (Nil). Concurrently, a liability is recognized for the obligation to refund the allowances for CO2 emissions during the compliance period. When no excess or deficit is identified, no liability is recognized as the Group has sufficient EUAs to settle the liability.
\nThe excess or deficit is calculated and recorded separately for each production facility. If a deficit in EUAs is identified, the Group has to purchase additional EUAs on the commodity markets to settle its liability to the Dutch Emission Authority. Purchased EUAs are recognized at cost and classified as inventory. The cost of the purchased EUAs to settle the liability for emission allowances during any given compliance period are recognized in cost of sales.
\nEUAs in excess of the liability to the Dutch Emission Authority that are controlled by the Group can be sold for the benefit of the Group. Sales of EUAs in excess of the liability for emission allowances during any given compliance period are recognized in cost of sales.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-5": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-513": { "value": "\nWhether an arrangement is, or contains, a lease is assessed at the commencement date of the lease. In general, an arrangement is considered to be or to contain a lease when all of the following apply:
There is an identified asset;
The Group obtains substantially all economic benefits from the use of the asset; and
The Group can direct the use of the identified asset.
Lease obligations are recognized based on the present value of the future minimum lease payments.
\nRight-of-use assets are initially valued at an amount equal to the lease liabilities. As leases do not easily provide for an implicit rate, the Group uses the incremental borrowing rate. The measurement at initial recognition may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option.
\nFor leases, each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statement of profit or loss over the term of the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset\u2019s useful life and the lease term on a straight-line basis.
\nThe Group has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. For leases of offices and buildings, we account for the lease and non-lease components separately. For these types of leases, the allocation of the consideration between lease and non-lease components is based on the relative stand-alone prices of lease components included in the lease arrangements. Leases are presented as \u2018Right-of-use assets\u2019 and \u2018Lease obligations\u2019. Short term leases (less than 12 months) or low value leases (less than USD 5,000) are expensed through the statement of profit or loss as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-514": { "value": "\nFinance income comprises:
Interest income on funds invested (including on financial assets at fair value through other comprehensive income);
Gains on the disposal of financial assets at fair value through other comprehensive income;
Dividend income (excluding dividend from equity-accounted investees and subsidiaries);
Fair value gains on financial assets at fair value through profit or loss; and
Gains on hedging instruments related to foreign currency and interest rate derivatives that are recognized in profit or loss including reclassifications of amounts previously recognized in other comprehensive income.
Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Group\u2019s right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date.
\nFinance cost comprises:
Interest expense on borrowings;
Unwinding of the discount on provisions and contingent consideration;
Interest expense related to lease obligations;
Losses on disposal of financial assets at fair value through other comprehensive income;
Fair value losses on financial assets at fair value through profit or loss;
Loss on hedging instruments related to foreign currency and interest rate derivatives that are recognized in profit or loss including reclassifications of amounts previously recognized in other comprehensive income; and
Impairment losses recognized on financial assets (other than trade receivables).
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss and expensed as incurred. Foreign currency gains and losses are recognized on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-515": { "value": "\nFinance cost comprises:
Interest expense on borrowings;
Unwinding of the discount on provisions and contingent consideration;
Interest expense related to lease obligations;
Losses on disposal of financial assets at fair value through other comprehensive income;
Fair value losses on financial assets at fair value through profit or loss;
Loss on hedging instruments related to foreign currency and interest rate derivatives that are recognized in profit or loss including reclassifications of amounts previously recognized in other comprehensive income; and
Impairment losses recognized on financial assets (other than trade receivables).
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss and expensed as incurred. Foreign currency gains and losses are recognized on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-519": { "value": "\nCertain Group subsidiaries provide to their employees pension plans, end of service remuneration plans and long-term service benefits. These pension plans qualify as defined contribution plans. Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.
\nShort-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if both the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
\nThe Group long-term employee benefits are recognized if both the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably to determine its present value. The discount rate is the yield at the balance sheet date on triple-A (\u2018AAA\u2019) credit rated bonds that have maturity dates approximating the terms of the Group\u2019s obligations. Re-measurements are recognized in profit or loss in the period in which they arise.
\nEmployee termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when the Group is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or when the Group is providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to their present value.
\nCertain employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments. The grant date fair value of equity-settled share-based payment awards granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period (the vesting period) that the employees render service and become unconditionally entitled to the awards.
\nThe amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. At each reporting date, the progress of non-market conditions is measured and the expenses are trued-up accordingly.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-520": { "value": "\nEmployee termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when the Group is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or when the Group is providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to their present value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-521": { "value": "\nCertain employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments. The grant date fair value of equity-settled share-based payment awards granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period (the vesting period) that the employees render service and become unconditionally entitled to the awards.
\nThe amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. At each reporting date, the progress of non-market conditions is measured and the expenses are trued-up accordingly.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-522": { "value": "\nCurrent tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. Current tax also includes any tax arising from the declaration of dividends. Current income tax receivable and payable are offset when there is a legally enforceable right to offset and when the current income tax relates to the same fiscal authority.
\nDeferred tax liabilities are recognized for all taxable temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements (\u2018balance sheet\u2019 method).
\nDeferred tax assets are recognized for all deductible temporary differences, unused carry forward losses and unused carry forward tax credits, to the extent that it is probable that future taxable profit will be available against which the deferred income tax assets can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.
\nDeferred income tax is not recognized if it arises from initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction it affects neither accounting nor taxable profit or loss. No deferred income tax is recognized from the initial recognition of goodwill. Also, no deferred tax is recognized from investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.
\nDeferred income tax is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date, Deferred income tax reflects uncertainty related to income taxes, if any.
\nDeferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax relates to the same fiscal authority.
\nIn cases where it is concluded it is not probable that the tax authorities will accept a tax treatment, the effect of the uncertainty is reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a provision is made for the amount that is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the company to change its judgment regarding the adequacy of existing tax assets and liabilities. Such changes to tax assets and liabilities will impact the income tax expense in the period during which such a determination is made.
\nOCI has determined that the global minimum top-up tax, which is required to be paid under Pillar Two legislation, is an income tax in the scope of IAS 12. OCI has applied a temporary mandatory relief from deferred tax accounting for the impact of the top-up tax and accounts for Pillar Two taxes as a current tax when it is incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-523": { "value": "\nDeferred tax liabilities are recognized for all taxable temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements (\u2018balance sheet\u2019 method).
\nDeferred tax assets are recognized for all deductible temporary differences, unused carry forward losses and unused carry forward tax credits, to the extent that it is probable that future taxable profit will be available against which the deferred income tax assets can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.
\nDeferred income tax is not recognized if it arises from initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction it affects neither accounting nor taxable profit or loss. No deferred income tax is recognized from the initial recognition of goodwill. Also, no deferred tax is recognized from investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.
\nDeferred income tax is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date, Deferred income tax reflects uncertainty related to income taxes, if any.
\nDeferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax relates to the same fiscal authority.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-528": { "value": "\nAn operating segment is a component of an entity that engages in business activities for which it may earn revenues and incur expenses (including from transactions with other components of the same entity), whose operating results are regularly reviewed by the entity\u2019s Chief Operating Decision Maker (\u2018CODM\u2019) to make decisions about resource allocation and to assess its performance, and for which discrete financial information is available.
\nThe Group determines and presents operating segments on the basis of information that internally is provided to the CODM during the period.Operating segments are aggregated based on similar economic environments and similar products.
\nOperating segments are disclosed as reportable segments, its financial metrics exceed the quantitative thresholds of IFRS 8.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-529": { "value": "\nThe consolidated statement of cash flows has been prepared using the \u2018indirect\u2019 method. Cash flows in foreign currencies have been translated applying average exchange rates. Currency translation differences on cash are shown separately in the consolidated statement of cash flows. Cash flows from investing activities consist mostly of investments and divestments in property, plant and equipment, intangible assets, and acquisitions insofar as these are paid for in cash.
\nAcquisitions or disposals of subsidiaries are presented as part of investing activities.Cash flows relating to capitalized borrowing cost are presented as cash flows from operating activities. Cash flows from financing activities consist of acquisition or divestment of non-controlling interests, dividends paid to non-controlling interests, and settlement of derivatives with the exception of interest rate derivatives which are presented as cash flows used in operating activities.
\nCash flows from discontinued operations are presented separately from the cash flows from continuing operations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-530": { "value": "\nEarnings per ordinary share are calculated by dividing the profit or loss (net) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. In making this calculation the (ordinary) treasury shares are deducted from the number of ordinary shares outstanding. The calculation of the diluted earnings per share is based on the weighted average number of ordinary shares outstanding plus the potential increase as a result of the conversion of convertible bonds and the settlement of share-based compensation plans (share option plans).
\nAnti-dilutive effects are not included in the calculation. An adjustment is made to profit or loss (net) to eliminate interest charges, whilst allowing for effect of taxation. Regarding equity-settled share option plans it is assumed that all outstanding plans will vest. The dilutive effect of equity-settled share option plans is calculated based on the number of options issued, the exercise price of these options and the average market price of ordinary shares during the period.
\nThe difference between the number of ordinary shares issued and the number of ordinary shares that would have been issued at the average market price of ordinary shares for the period is considered as dilutive. This dilutive effect is only applied if the option has intrinsic value (i.e. is in the money).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-531": { "value": "\nThe Group classifies non-current assets or disposal groups as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. Non-current assets or disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell, with certain exceptions.
\nNon-current assets such as deferred tax assets, assets arising from employee benefits and financial assets are specifically exempt from this measurement requirement.Depreciation and amortization on non-current assets (including those that are part of a disposal group) ceases from the date that the non-current assets (or disposal groups) meet the criteria to be classified as held for sale.
\nNon-current assets or all assets of disposal groups classified as held for sale are presented separately from the other assets in the statement of financial position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the statement of financial position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-532": { "value": "\nThe Group classifies a component of the business as discontinued operations if the following criteria are met: the operations and cash flows of the component can be clearly distinguished from the rest of the Group, it represents a separate major line of the business, and it is part of a plan to dispose of a major line of business. Classification as a discontinued operation occurs at the earlier of the date of disposal or when the operation meets the criteria to be classified as held for sale.
\nThe results of discontinued operations are presented separately in the statement of profit or loss. When an operation is classified as discontinued operations, the comparative statement of profit or loss and other comprehensive income are re-presented as if the portion of the business had been discontinued from the start of the comparative year.
\nIntra-group transactions between continuing and discontinued operations are eliminated as part of the consolidated financial statements. Intra-group transactions are eliminated against discontinued operations when management determines that the arrangement is not expected to continue after the sale or disposal of the discontinued operation. Intra-group transactions are eliminated against continuing operations when management determines that the arrangement is expected to continue after the sale.
\nSome overhead costs, such as IT costs, personnel costs, and interest expenses, are expected to reduce after the sale of the disposal groups. To the extent that there is a legal agreement in place for overhead costs to transfer to the buyer of the disposal group, either as part of the purchase agreement or otherwise, these costs are presented as discontinued operations. All other stranded costs are presented as part of continuing operations.
\nThe consolidated statement of financial position notes including movement schedules, represents the total movement of both continuing and discontinued operations. The portion of the closing balance representing discontinued operations are separately reclassified to assets held for sale or liabilities held for sale. Reference is made to note 22.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-533": { "value": "\nOn a regular basis, the IASB issues new accounting standards, amendments and revisions to existing standards and interpretations. These new accounting standards, amendments and revisions to existing standards and interpretations are subject to adoption by the European Union.
\nThe Group has applied the following amendments to IFRS that became effective for annual periods beginning on or after 1 January 2023:
Disclosure of Accounting Policies \u2013 Amendments to IAS 1 and IFRS Practice Statement 2;
Definition of Accounting Estimates \u2013 Amendments to IAS 8;
Deferred Tax related to Assets and Liabilities arising from a Single Transaction \u2013 amendments to IAS 12; and
IFRS 17 Insurance Contracts.
The Group also elected to adopt the following amendments to IFRS early:
Classification of Liabilities as Current or Non-current & Non-current Liabilities with Covenants \u2013 Amendments to IAS 1;
The amendments listed above did not have any impact on the amounts recognized in prior periods and are not expected to materially affect the current or future periods.
\nThe Group has adopted International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) upon their release on 23 May 2023. The amendments provide a temporary mandatory exception from deferred tax accounting for the top-up tax, which is effective immediately, and require new disclosures about the Pillar Two Exposure. Pillar Two tax legislation was not effective for the Group in 2022, and therefore the adoption of the amendments to IAS 12 has no retrospective impact on the comparative figures. The Group has applied a temporary mandatory relief from deferred tax accounting from the impacts of the top-up tax and accounts for it as a current tax when it is incurred. Information about the Group\u2019s exposure to Pillar Two taxes is included in note 12 and note 22 .
\nIFRS standards and interpretations thereof not yet in force which may apply to the future Group\u2019s consolidated financial statements are being assessed for their potential impact. The following new and amended standards are not expected to have a significant impact on the Group\u2019s consolidated financial statements.
Lease Liability in a Sale and Leaseback \u2013 Amendments to IFRS 16; and
Supplier finance arrangements \u2013 Amendments to IAS 7 and IFRS 7.
The preparation of the financial statements in compliance with IFRS requires management to make judgments, estimates and assumptions that affect amounts reported in the consolidated financial statements. The estimates and assumptions are based on experience and various other factors that are believed to be reasonable under the circumstances and are used to judge the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, or the case that the changed estimates affect both the current and future periods, in both the revision period and future periods.
\nThe most critical accounting policies involve a higher degree of judgment and complexity in applying these principles and therefore changes in the assumptions and estimates could result in significantly different results than those recorded in the financial statements. The critical accounting policies are the following:
\nIntangible assets with finite useful lives are carried at cost less accumulated amortization and any impairment. Management makes estimates regarding the useful lives and residual values and assumes that amortization takes place on a \u2018straight-line\u2019 basis. The assets\u2019 useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
\nFor intangible assets with finite useful lives, OCI assesses annually, or more frequently as needed, whether indicators exist that suggest the intangible asset might be impaired by comparing the recoverable amounts with their carrying amounts. In determining the recoverable amounts of intangible assets, OCI makes estimates and assumptions about future cash flows based on the value in use. In doing so, OCI also makes assumptions and estimates regarding the discount rates and other key assumptions in order to calculate the net present value of the future cash flows. OCI tests at least annually whether goodwill is impaired by comparing the recoverable amounts of cash-generating units with their carrying amounts.
\nThe recoverable amount is the higher of the fair value less cost of disposal and the value in use. In determining the recoverable amount, OCI makes estimates and assumptions concerning future revenues, future costs, future working capital, future investments, Weighted Average Cost of Capital (\u2018WACC\u2019) and future inflation rates.
\nProperty, plant and equipment are carried at cost less accumulated amortization and any impairment. Management makes estimates regarding the useful lives and residual values and assumes that depreciation takes place on a \u2018straight-line\u2019 basis. The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. OCI assesses annually, or more frequently, whether indicators exist that suggest that an item of property, plant and equipment might be impaired by comparing the recoverable amounts with their carrying amounts.
\nIn the useful life reassessment and in assessing for impairment indicators, OCI also considers the impact of its ESG targets and of relevant transition and physical climate risks, if identified for a specific country or region. Transition risks are risks associated with transitioning to a lower-carbon economy and are primarily related to cost of climate impacts, new technologies, market developments and climate litigations. Physical risks are risks that arise from the physical effects of climate change. See Financial implications of climate change for further information on the impact of climate risks on the Group.
\nIn determining the recoverable amounts of property, plant and equipment, OCI makes estimates and assumptions about future cash flows based on the value in use. The discount rate to be used in order to calculate the net present value of the future cash flows in the impairment analysis is based on the WACC.
\nThe fair value of financial instruments traded in active markets (financial instruments in the fair value hierarchy level 1) is based on quoted market prices at the balance sheet date. The fair value of financial instruments not traded in an active market with observable market prices (financial instruments in the fair value hierarchy level 2) is determined using generally accepted valuation techniques. These valuation techniques include estimates and assumptions about forward rates, discount rates based on a single interest rate, or on a yield-curve based on market conditions existing at the balance sheet date.
\nThe fair value of borrowings and interest rate swaps is calculated based on the present value of the estimated future cash flows based on the yield-curve applicable at the balance sheet date. If the financial instrument contains a floating interest rate, the future expected interest rates are determined based on forward rates. The fair value of forward foreign exchange contracts is determined using quoted forward exchange rates at the balance sheet date. Gas price option and gas swap contracts are valued using applicable market yield curves.
\nAll inputs for the fair value calculations represent observable market data that are obtained from external sources that are deemed to be independent and reliable. The net carrying amount of trade receivables and trade payables is assumed to approximate the fair value due to the short-term nature. The fair value of financial instruments with no observable market prices (financial instruments in the fair value hierarchy level 3) is based on assumptions that market participants would use when pricing these assets or liability, including assumptions about risk. Assumptions about risk include the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and the risk inherent in the inputs to the valuation technique, including a risk adjustment when there is significant measurement uncertainty.
\nThe fair value of non-current financial liabilities is estimated by discounting the future cash flows using original effective yield-curves. A significant and prolonged decline in the fair value of a financial asset at fair value through other comprehensive income below its acquisition cost is considered as an indicator that the financial asset at fair value through other comprehensive income is impaired.
\nThe Group recognizes expected credit losses ('ECL') on the following financial assets measured at amortized cost: trade receivables, loans and trade receivables due from related parties, other receivables, and cash and cash equivalents. The calculation of expected credit losses is an estimate in nature and results in the recognition of a loss allowance before there has been any indication of impairment on financial assets.
\nThe group applies the IFRS 9 simplified approach to measuring expected credit losses on trade receivables, including those held with related parties. Under the simplified approach, the Group measures ECLs on trade receivables based on lifetime expected credit losses. The Group uses historical loss rates on trade receivables to estimate the forward-looking risk of default, while adjusting for any current or forward-looking information which may indicate that there has been a change in the risk of default. The Group is not required to assess if there has been a significant increase in credit risk for ECL estimates under the simplified approach.
\nThe ECLs measured on other receivables are estimated based on the general approach from IFRS 9, measured based on 12-month expected credit losses (so long as there has not been a significant increase in credit risk since the initial recognition of the instrument). The Group estimates the likelihood of default over the next 12 months based on past experience, and adjusts this estimate to be forward-looking by considering current and future macroeconomic trends.
\nIn estimating whether there has been a significant increase in credit risk, the Group considers reasonable and supportable information such as historical experience and information about the counterparty. The Group assumes that there has been a significant increase in credit risk if the receivable is more than 30 days past due. The expected credit losses on cash and cash equivalents is immaterial as these balances are held with regulated banks and creditworthy institutions.
\nIn determining the net realizable value of inventories, OCI estimates the selling prices in the ordinary course of business, cost of completion and cost to sell. In doing so, OCI makes estimates and assumptions based on current market prices, historical usage of various product categories versus current inventory levels and specific identified obsolescence risks (e.g. end of life of specific goods and spare parts and the impact of new environmental legislation).
\nRecognition of provisions include significant estimates, assumptions and judgments. IFRS requires only those provisions to be recognized if there is an expected outflow of resources and if the cost of these outflows can be estimated reliably. Accordingly, management exercises considerable judgment in determining whether it is more likely than not that there is a present obligation as a result of a past event at the end of the reporting period, whether it is probable that there outflow of resources and whether the amount of the obligation can be reliably estimated. These judgments are subject to change as new information becomes available. The required amount of a provision may change in the future due to new developments in the matter. Revisions to estimates may significantly impact future profit or loss. Upon resolution, the Group may incur charges in excess of the recorded provisions for such matters.
\nProvisions for asset retirement obligations represent estimated costs of decommissioning. Due to the long time period over which future cash outflows are expected to occur, including the respective interest accretion, the recognition and measurement of these provisions is subject to assumptions. Amongst others, the estimated cash outflows could alter significantly if, and when, political developments affect future laws and regulation with respect to asset retirements. The Group has not recognized any asset retirement obligations because a reliable estimate of the amount of the obligations cannot be made. With respect to legal cases, the Group has to estimate the outcome. Regulatory and legal proceedings as well as government investigations often involve complex legal issues and are subject to substantial uncertainties. The Company periodically reviews the status of these proceedings with both the internal and external legal counsels.
\nThe Group is subject to income taxes in several jurisdictions. Estimates are required in determining the groupwide provision for income taxes. There are some transactions and calculations for which the ultimate tax position is uncertain during the ordinary course of business. The Group recognizes provisions for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from amounts that were initially recorded, such differences will impact the current income tax and deferred tax provisions in the period in which such determination is made. The Group recognizes deferred tax assets to the extent that it is probable that future taxable profits will be available for the deferred tax asset to be recovered.
\nThis is based on estimates of taxable future income by jurisdiction in which the Group operates and the period over which deferred tax assets are expected to be recoverable. In the event that actual results or new estimates differ from previous estimates and depending on the possible tax strategies that may be implemented, changes to the recognition of deferred tax assets could be required, which could impact the financial position and profit or loss.
\nEstimates are also required to determine the impact of the Pillar Two legislation as the Pillar Two income taxes are closely linked to the provision of income taxes and the final outcome of tax audits for which an uncertain tax position is recognized.
\nThe assessment of whether a contract is or contains a lease requires judgment with respect to whether the lessor has substantive substitution rights, who obtains economic benefits from use of the asset and who takes the \u2018how and for what purpose\u2019 decisions during the period of use. Judgment is also applied in order to assess whether the entity will exercise any extension or cancellation options of a lease. The group applies judgments in order to determine the incremental borrowing rate in order to calculate the lease liabilities.
\nSubsidiaries that OCI controls are fully consolidated from the date that control commences until the date that control ceases. To determine whether OCI has control over its subsidiaries, the OCI performs an assessment based on the requirements of IFRS 10. The OCI evaluates whether it has power over the relevant activities of the investee, is exposed or has rights to variable returns from its involvement with the investee, and whether it has the ability to affect those returns through its power over the investee. Generally, control accompanies a shareholding of more than half of the shares issued and related voting power.
\nIn certain circumstances, the control assessment may require OCI to evaluate the effect of ownership structures, determine the relevant activities and assess other arrangements including the rights of other shareholders that could have an impact on the assessment of control. This specifically relates to control assessment of Fertiglobe and Sorfert.
\nIn determining whether OCI shall consolidate certain investments in strategic partnerships, OCI makes assumptions about whether certain decision rights are substantive or protective in nature. In doing so, OCI applies judgment regarding shareholder agreements it has with those other investees. If OCI determines it holds the majority of the substantive decision rights, OCI concludes it holds power over the investee. OCI also makes assumptions whether it is exposed to variable returns and whether these are linked to the power OCI holds. The linkage is tested by making assumptions whether OCI might be acting as a principal rather than an agent. If OCI meets all three criteria, OCI assumes it controls the investee.
\nAs part of the preparation of the financial statements, the Company has assessed its liquidity risk and going concern. Liquidity risk is the risk that the Group may encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company has made a number of assumptions in assessing its ability to meet its covenant requirements and satisfy obligations as they become due. Determining these assumptions requires significant judgment about future results and cash flows. Key assumptions include product pricing, gas pricing, utilization rates and the ability to arrange financing and obtain waivers for potential covenant breaches. Refer to note 2.2, note 6.2 and note 18 of the notes to the consolidated financial statements for the Company\u2019s analyses of going concern, liquidity risk and debt covenants, respectively.
\nThe Company periodically reviews its obligations with respect to CO2 emission under the ETS program. The estimation of CO2 emissions is primarily based on the expected utilization of the production capacity for the remaining part of the compliance period. The estimation of the utilization of the production capacity is dependent on a number of assumptions with inherent uncertainty making it a critical accounting estimate. The identification of the number of excess EUAs is dependent on this estimate.
\nOCI faces significant risks and opportunities as a result of climate change and governmental actions to reduce greenhouse gas (GHG) emissions and create low-carbon and climate-resilient economies. Refer to section Climate change risks and opportunities and Strategic risks for a description of these risks and opportunities.
\nThese risks and opportunities are integrated in the Group\u2019s risk management and strategy development processes, resulting in a decarbonization strategy. Accordingly, this is also embedded in OCI\u2019s governance structure e.g. by way of the mandate of the HSE & Sustainability Committee. OCI\u2019s decarbonization strategy includes a commitment to 20% greenhouse gas intensity reduction by 2030 compared to 2019 and carbon neutrality by 2050. In line with OCI's ongoing strategic review, OCI is assessing it's current targets and will adapt these, as needed, according to realigned benchmarks.
\nIn 2023, OCI has continued to assess global climate related risks and opportunities relevant for its business and continues to embed climate risks and opportunities into all relevant key business processes such as business planning, business performance reviews and capital value processes. Risk mitigating actions and new business opportunities are being targeted and developed. The risks of climate change for OCI\u2019s financial performance can be classified as physical risks or transition risks.
\nPhysical risks caused by rising global temperatures include extreme weather events (hurricanes, floods), changing weather patterns, increased water stress, and rising sea levels. These events and changes can impact our supply chain, disrupt planting cycles and growing conditions, and impede farmers\u2019 ability to apply crop nutrients. Transition risks associated with transitioning to a lower-carbon economy are primarily related to (i) changes in carbon-linked regulations and policies, such as the phase out of the ETS system, the European carbon border adjustment mechanism (\"CBAM\") that came into effect 1 October 2023, and other potential carbon taxation mechanisms, (ii) costs associated with transitioning to lower emissions technology and resource efficiency, and (iii) dietary shifts to more plant-based nutrition. Both types of risks can affect OCI in a multitude of ways.
\nAs of year end 2023, the main key transition risks identified in the time frame before 2030 relates to proposed climate change related regulations at both the international and national levels, such as the European Union\u2019s proposed carbon dioxide reduction targets, CBAM and the potential EU restrictions on nitrogen fertilizer application. The main physical risks identified refer to the impact to operations and the value chain by climate change in terms of more extreme weather conditions and natural disasters.
\nClimate risks may result in material adjustments to the carrying amounts of assets and liabilities as a result of, among others, future re-assessment of useful lives of tangible or intangible assets, changed assumptions used as basis for impairment testing of such assets, changes to environmental and decommission provisions, and changes to cost of capital. Significant judgment may be needed to estimate such adjustments.
\nAs of year end 2023, any current and future financial impact to OCI of climate risks and opportunities are uncertain. OCI expects potential effects on margins due to higher emission costs as well as higher capital expenditure to reduce the impact of climate change. CBAM's introduction may result in shifts in cost dynamics, but equitable market conditions are expected to safeguard against adverse financial impacts. These factors have been taken into account in the impairment testing of major tangible assets (i.e. plants) and intangible assets, including goodwill. However, such effects are currently assessed as limited due to replacement of assets with greener alternatives mostly after the useful lives have ended and has not led to impairments in 2023 nor to significant adjustment to useful lives of such assets at this time. Consequently, OCI has not identified significant assets which may be of reduced or of no value as of year end 2023 as a result of climate risk (\u201cstranded assets\u201d). Information on decommission provisions are provided in note 29 Contingencies.
\nThe sale of IFCo and Fertiglobe plc in North America and the Middle East during 2023, reduces the Group's exposure to climate-related risk and its potential financial impacts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-535": { "value": "\nThe Group has exposure to credit, liquidity and market risks from financial instruments. These risks arise from exposures that occur in the normal course of business and are managed on a consolidated company basis.
\nThis note presents information about the Group\u2019s exposure to each of the above risks, the Group\u2019s objectives, policies and processes for measuring and managing these risks. Additionally, it also includes the Group\u2019s management of capital.
\nThe Board of Directors has oversight responsibility on the establishment and monitoring of the Group\u2019s risk management framework. Senior (local) management is responsible for the effective operation of the internal risk management and control systems.
\nThe Audit and Risk department is responsible for the facilitation and supervision of the Risk Management function, compliance with OCI Internal Control Framework and supporting the Board of Directors in the exercise of their aforementioned risk management duties.
\nThe Group\u2019s risk management policies and practices are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group\u2019s business activities.
\nThe Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and responsibilities.
\nThe Audit Committee oversees how management monitors compliance with the Group\u2019s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.
\nThe Audit Committee is assisted in its oversight role by the Audit and Risk department. The Audit and Risk department undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
\nCredit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This arises principally from the Group\u2019s receivables from trade and other receivables, financial assets at fair value through other comprehensive income and from outstanding cash balances with banks. The Company mitigates the exposure to credit risk on outstanding cash balances by placing funds at multiple financial institutions with a sufficient credit rating.
\nThe Group\u2019s exposure to customer credit risk is monitored and mitigated by performing credit checks before selling any goods. No collateral is received. Customers are typically billed after the goods have been delivered or the services have been performed. Customary payment terms for the Group's receivables is 30 days. In certain instances, the Group receives upfront payment for services and recognizes deferred revenue. The Group establishes an allowance, if needed, for impairment that represents its estimate of expected losses in respect of trade and other receivables.
\nThe main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected based on historical performance. IFRS 9 establishes a three-stage impairment model, based on whether there has been a significant increase in the credit risk of a financial asset since its initial recognition. As at 31 December 2023, management assessed for any significant increase in credit risk based on internal and external factors related to the financial instruments and concluded no such significant increase in credit risk was present. Hence, the expected credit loss on instruments is calculated based on Stage 1 (i.e. 12-month expected credit losses). The Group has determined that expected credit losses on financial assets is immaterial as at 31 December 2023.
\nThe Group is party to a securitization agreement to sell certain trade receivables to an external financial institution. The agreement permits securitization of trade receivables up to USD 331.2 million (EUR 300.0 million). As per 31 December 2023 an amount of USD 202.0 million (EUR 183.0 million) of trade receivables were transferred.
\nWith respect to transactions with financial institutions, the Group sets a minimum credit rating for the counterparties. The maximum exposure to credit risk is the carrying amount of financial instruments, for an overview reference is made to the tables below. There is no significant concentration by counterparty of credit risk in trade and other receivables or financial assets at fair value through other comprehensive income. Concentrations of receivables by region can be seen in the table below.
\nThe maximum exposure to credit risk at the reporting date is as follows:
\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Trade and other receivables | (9) | 396.1 | 881.9 |
Financial assets at fair value through other comprehensive income | (11) | 9.0 | 18.8 |
Cash and cash equivalents | (14) | 156.9 | 1,717.0 |
Total | \u00a0 | 562.0 | 2,617.7 |
The maximum exposure to credit risk for trade and other receivables by geographic region is as follows:
\n$ millions | 2023 | 2022 |
|---|---|---|
Middle East and Africa | 69.7 | 138.4 |
Asia and Oceania | 9.4 | 171.5 |
Europe | 158.6 | 382.0 |
Americas | 158.4 | 190.0 |
Total | 396.1 | 881.9 |
The maximum exposure to credit risk for cash and cash equivalents by geographic region is as follows:
\n$ millions | 2023 | 2022 |
|---|---|---|
Middle East and Africa | 55.2 | 1,442.0 |
Europe | 76.3 | 193.1 |
Americas | 25.4 | 81.9 |
Total | 156.9 | 1,717.0 |
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.
\nThe future obligations will be managed by the future incoming cash from operations, proceeds from disposal of the Group's investments in Fertiglobe plc and IFCo, cash and cash equivalents of USD 156.9 million (2022: USD 1,717.0 million) and unused amounts on credit facility agreements in the amount of USD 387.3 million (2022: USD 1,750.0 million), reference is made to note 18' Undrawn bank facilities'.
\nThe Group\u2019s approach to managing liquidity risk is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group\u2019s reputation.
\nThe securitization of trade receivables is one mechanism used to manage the Group's liquidity risk. This is also safeguarded by using multiple financial institutions in order to mitigate any concentration of liquidity risk. The Group\u2019s financing strategy is to secure external financing primarily at OCI N.V. with debt at an operating company level only if there is a compelling economic rationale. OCI N.V. acts as the financing company thus limiting the number of cross relationships within the Group and maximizing flexibility to divest operating companies.
\nThe liquidity risk is monitored internally at Group level. On an ongoing basis the Group prepares liquidity forecasts to verify whether the Group is able to meet its future debt obligations. The Company has also carefully evaluated the funding of its Business Plan for at least the next 12 months from the date of issuance of the financial statements and has applied sensitivities to the forecast level of liquidity headroom available. Key assumptions include product pricing, natural gas pricing and utilization rates and the ability to arrange financing and obtain waivers for potential covenant breaches. Management has applied these assumptions to the forecasts, which would leave sufficient liquidity headroom. Refer to note 2.2 and note 18 of the notes to the consolidated financial statements for the Company\u2019s analyses of going concern and debt covenants, respectively.
\n31 December 2023 | Note | Carrying amount | Contractual cash flow | Less than 1 year | Between 1 and 5 years | More than 5 years |
|---|---|---|---|---|---|---|
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,157.4 | 2,618.4 | 241.7 | 1,636.0 | 740.7 |
Lease obligations | (19) | 142.3 | 142.1 | 28.5 | 49.0 | 64.6 |
Trade and other payables | (20) | 490.6 | 490.6 | 455.4 | 35.0 | 0.2 |
Derivatives | (20) | 177.9 | 180.5 | 74.4 | 106.1 | - |
Total | \u00a0 | 2,968.2 | 3,431.6 | 800.0 | 1,826.1 | 805.5 |
31 December 2022 | Note | Carrying amount | Contractual cash flow | Less than 1 year | Between 1 and 5 years | More than 5 years |
|---|---|---|---|---|---|---|
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,875.7 | 3,863.7 | 371.1 | 2,010.0 | 1,482.6 |
Lease obligations | (19) | 276.1 | 515.2 | 50.0 | 101.0 | 364.2 |
Trade and other payables | (20) | 786.7 | 786.7 | 718.8 | 65.4 | 2.5 |
Derivatives | (20) | 141.4 | 142.1 | 82.4 | 59.7 | - |
Total | \u00a0 | 4,079.9 | 5,307.7 | 1,222.3 | 2,236.1 | 1,849.3 |
The interest on floating rate loans and borrowings is based on forward interest rates at period-end. This interest rate may change as the market interest rate changes.
\nThe following refinancing activities were completed during 2023 to optimize the Group\u2019s finance cost and enhance its cashflow up-streaming to OCI N.V.:
On 10 March 2023, OCI N.V. announced a bond offering consisting of USD 600.0 million senior unsecured fixed rate notes due 2033 as part of a USD 2.0 billion global medium term program. The notes bear interest at a rate of 6.7% per annum. The notes are senior unsecured obligations of the Company and are guaranteed by IFCo. Interest is payable semi-annually. The proceeds from the offering were used for general corporate purposes of the Group.
For an overview of all loans and borrowings, reference is made to note 18.
\nMarket risk is the risk of changes in market prices, such as foreign exchange rates, interest rates, commodity prices and equity prices that will affect the Group\u2019s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
\nThe Group is exposed to foreign currency risk arising in separate ways:
\nThe Group entities predominantly execute their activities in their respective functional currencies. The Group is however exposed to foreign exchange transaction risk when Group entities enter into foreign currency denominated transactions. The Group monitors the exposure to foreign currency risk arising from operating activities and enters selectively into foreign exchange contracts to hedge foreign currency exposures. The nominal amount of the foreign currency derivatives outstanding used to hedge transaction risk as per 31 December 2023 was USD 2.3 million (2022: USD 62.3 million) and relates to the USD exposure of the Group (on Euro currencies). The functional currencies of the continuing operations of the Group are primarily the US dollar and the Euro.
\nThe Group is exposed to the translation of foreign currency denominated monetary assets and liabilities. These exposures are managed by the Group's treasury function, which may hedge a portion of the foreign currency exposures estimated to arise in the foreseeable future.
\nFor the unhedged portion the Group seeks to mitigate translation risk by matching the remaining currency of debt with available cashflows in the respective currency. A portion of the translation risks related to the Group's financing of its subsidiaries is hedged by utilizing net investment hedging.The Group is exposed to foreign exchange fluctuations through monetary items denominated in foreign currencies other than the relevant functional currency and intercompany balances. The summary of this exposure is as follows:
\n31 December 2023 | USD | EUR |
|---|---|---|
Trade and other receivables | 32.8 | 0.0 |
Trade and other receivables - Intercompany | 784.9 | 24.1 |
Trade and other payables | (142.9) | - |
Trade and other payables - Intercompany | (112.2) | (0.2) |
Loans and borrowings | (55.7) | - |
Loans and borrowings - Intercompany | (41.6) | (99.1) |
Provisions | - | - |
Cash and cash equivalents | 71.6 | 55.7 |
31 December 2022 | USD | EUR | EGP |
|---|---|---|---|
Trade and other receivables | 72.7 | 20.0 | 72.9 |
Trade and other receivables - Intercompany | 183.5 | 285.8 | 40.7 |
Trade and other payables | (124.3) | (3.4) | (7.4) |
Trade and other payables - Intercompany | (88.5) | (247.7) | (0.4) |
Loans and borrowings | - | - | - |
Loans and borrowings - Intercompany | (475.1) | (109.3) | - |
Provisions | - | - | (76.8) |
Cash and cash equivalents | 890.0 | 22.8 | 16.5 |
The Group's exposure to foreign exchange fluctuations are higher in 2022 than those shown in the current year as they include disposal groups held for sale / discontinued operations.
\nThe Group's risk management strategy is to hedge the spot foreign exchange risk on net investments in foreign operations. The risk management objective is to reduce foreign exchange results on net investments in USD.
\nIn 2021, the Group has adopted a net investment in foreign operation hedging relationship. The hedge relationship is a hedge of the foreign currency exposures on net investment in foreign operations in USD. The hedge relationship is designated at the level of the Group for the purpose of the consolidated financial statements. The hedged items are all operational USD foreign operations of the Group. To comply with the risk management policy, the hedge ratio is based on hedging the spot rate foreign currency exposure of USD foreign operations with hedging instruments with same or lower notional amount. This results in a hedge ratio of 1:1 or 100%. Change in the amount of net assets in the foreign operations below the notional amount of hedging instruments will result in ineffectiveness.
\nThe hedging instruments relate to the USD denominated unsecured senior notes and unsecured loan facility recorded in OCI N.V., reference is made to note 18 for further details.
\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Carrying amount hedging instruments | (18) | 1,253.3 | 288.3 |
Principal amount of hedging instruments | (18) | 1,988.3 | 1,388.3 |
Changes in fair value of hedging instruments carrying amount | \u00a0 | 39.0 | (49.9) |
Cumulative amount recognized1 | \u00a0 | (148.3) | (187.3) |
The following significant exchange rates applied during the year against the US dollar:
\n| \u00a0 | Average 2023 | Average 2022 | Closing 2023 | Closing 2022 |
|---|---|---|---|---|
Euro | 1.0815 | 1.0533 | 1.1039 | 1.0711 |
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rate to increase or (decrease) against the EUR, with all other variables held constant. The continuing operations of the Group has reduced its exposure to EGP and DZD due to the pending sale of Fertiglobe. The Group\u2019s exposure to foreign currency changes for all other currencies is not material.
\n31 December 2023 | Change in FX rate | Effect on profit before tax | Effect on equity |
|---|---|---|---|
EUR - USD | 8 percent | 41.7 | 100.3 |
| \u00a0 | (8) percent | (41.7) | (100.3) |
31 December 2022 | Change in FX rate | Effect on profit before tax | Effect on equity |
|---|---|---|---|
EUR - USD | 10 percent | (49.0) | (34.7) |
| \u00a0 | (10) percent | 49.0 | 34.7 |
EGP - USD | 10 percent | 4.5 | - |
| \u00a0 | (10) percent | (4.5) | - |
DZD - USD | 4 percent | 36.7 | - |
| \u00a0 | (4) percent | (36.7) | - |
The figures in the above overview are determined based on the currency volatility of the respective years. A significant part of the Group\u2019s exposure to foreign currency transaction risk relates to intercompany balances.
\nThe Group\u2019s cash flow interest rate risks arise from the exposure to variability in future cash flows of floating rate financial instruments and refinancing fixed rate borrowings. The Group regularly reviews its exposure to the global interest rate environment.
\nThe Group analyses its interest rate exposure on a dynamic basis. The Group calculates the impact on profit or loss of a defined interest rate shift. The same interest rate shift is used for all currencies. The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market data, showing a higher volatility compared to prior years. The interest rate sensitivity calculation is based on the interest-bearing liabilities. With all other variables held constant, the Group\u2019s profit before tax is affected through the impact on floating rate borrowings plus refinancing of fixed rate borrowings. The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings affected:
\n$ millions | In basis points | 2023 | 2022 |
|---|---|---|---|
Effect on profit before tax for the coming year | + 200 bps | (15.8) | (26.9) |
Effect on profit before tax for the coming year | - 200 bps | 15.8 | 26.9 |
A fundamental reform of major interest rate benchmarks has occurred globally, including the replacement of some interbank offered rates (IBOR), with alternative nearly risk-free rates. The Group\u2019s main IBOR exposure was USD LIBOR on its loans. The alternative reference rate for USD LIBOR is the Secured Overnight Financing Rate (SOFR). The Group finished the process of amending contractual terms in response to IBOR reform during 2022. The USD LIBOR ceased as per 30 June 2023.
\nAll other financial instruments that were subject to the interest rate benchmark reform had contractual provisions in place to seamlessly transition to a new reference rate when publication of LIBOR ceased. All other instruments subject to the reform were non-derivative financial liabilities.
\nIn connection with the announced strategic transactions, the Group has entered into a interest rate hedge. The notional amount hedged is USD 895.0\u00a0million. The fair value gain of the interest rate hedge as at 31 December 2023 amount to USD 5.0\u00a0million.
\nNatural gas is one of the primary raw materials used in the Group\u2019s production processes. The Group is exposed to natural gas price commodity risk for those entities that buy natural gas at spot prices.
\nManagement monitors the development of gas prices and products\u2019 selling prices on a daily basis using external historical and forecast market data provided by several data vendors. Management analyzes the potential profit margin per product based on this data in order to make operational and hedging decisions.
\nFor the entities that are impacted by changes in natural gas prices during FY 2024, a change in the average natural gas prices by USD 1 per MMBtu would impact the total annual cost of sales by USD 63.0 million (2022: USD 103.0 million), excluding the impact of hedges. The decrease is mainly due to IFCo being presented as discontinued operations in 2023.
\nThe Group enters into gas hedges in order to hedge future gas price levels over a certain period of time (reference is made to note 20). The Group uses derivatives (Basis swaps, Index swaps and options) in order to do so and does not apply hedge accounting on these instruments, therefore all fair value changes related to these financial instruments are recognized in profit or loss. Where there is no past practice of being net cash-settled, fixed price gas contracts and month-ahead swaps are accounted for under the \u2018own use\u2019 exemption. The fiscal year 2024 gas price risk is reduced by the Group to an extent of 60% (including both physical pricings and financial hedges). The outstanding gas hedges in MMBtu as per 31 December 2023 for the years 2024-2029 are:
Flat priced contracts: 211.8 million (2022: 317.6 million);
Options (delta equivalent): 7.3 million (2022: 7.3 million);
Basis Swaps: Nil (2022: 0.9 million)
The Group has a cash collateral obligation for the outstanding gas hedges with one counterparty for any mark-to-market liability that exceeds USD 25 million. These hedges in MMBtu approximate 78% of the outstanding volume of gas hedges. As at 31 December 2023, the margin calls which have taken place under this obligation amounted to USD 84.4 million (2022: Nil). Reference is made to note 9.
\nDuring the year, the Group generated additional liquidity by selling EUAs to the market. This generated total net proceeds of USD 0.5 million (2022: USD 94.6 million) resulted from the sale and repurchase of EUAs. Included in the net proceeds received, a gross amount of USD 36.4 million (2022: USD 132.2 million) was recognized in cost of sales related to the sale of excess EUAs.
\nWhen EUAs were sold for cash management purposes, a liability is recognized for the obligation to refund the allowances for CO2 emissions during the compliance period. This liability is subsequently measured at fair value. The total liability recorded as 31 December 2023 was Nil (2022: USD 36.7 million).
\nTo manage the fair value risk of the EUA liability, the Group entered into financial hedges in 2022 to purchase 0.9 million of EUAs. The fair value of these forward contracts amounts to was USD (5.2) million in 2022. In 2023 the group did not enter into any financial hedges. The group did not apply hedge accounting to these contracts.
\nThe following table presents the various categories of financial instruments:
\n31 December 2023 | Note | Loans and receivables / payables at amortized cost | Derivatives at fair value | Financial assets at fair value through other comprehensive income |
|---|---|---|---|---|
Assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | (9) | 304.7 | 2.9 | - |
Financial assets at fair value through other comprehensive income | (11) | - | - | 9.0 |
Cash and cash equivalents | (14) | 156.9 | - | - |
Total | \u00a0 | 461.6 | 2.9 | 9.0 |
Liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,157.4 | - | - |
Trade and other payables | (20) | 634.6 | 177.9 | - |
Total | \u00a0 | 2,792.0 | 177.9 | - |
31 December 2022 | Note | Loans and receivables / payables at amortized cost | Derivatives at fair value | Financial assets at fair value through other comprehensive income |
|---|---|---|---|---|
Assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | (9) | 582.6 | 22.9 | - |
Financial assets at fair value through other comprehensive income | (11) | - | - | 18.8 |
Cash and cash equivalents | (14) | 1,717.0 | - | - |
Total | \u00a0 | 2,299.6 | 22.9 | 18.8 |
Liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,875.7 | - | - |
Trade and other payables | (20) | 1,220.3 | 178.1 | - |
Total | \u00a0 | 4,096.0 | 178.1 | - |
The Group has limited financial instruments carried at fair value. For derivative financial instruments, the fair value is calculated within hierarchy category level 2. Financial assets at fair value through other comprehensive income recognized as level 1 is USD 1.7 million (2022: USD 2.2 million).
\nThe investment in the Infrastructure and Growth Capital Fund was recognized as level 2 as the valuation was partially derived from listed shares (2022: USD 1.5 million). The investment was sold in October 2023, reference is made to 11 and 16, respectively. The investment in Notore Chemical of USD 7.3 million (2022: USD 15.1 million) is designated as fair value through other comprehensive income. Any gains or losses from changes in the fair value of this investment are recognized in other comprehensive income. The fair value of this investment in Notore is classified as level 3, reference is made to note 11. Notore is listed on the Nigerian Stock Exchange since 2018, however due to the lack in trading volumes the investment is still valued within the hierarchy category level 3 based on audited financial statements. In 2023 and 2022, there were no transfers between the fair value hierarchy categories. The fair value of loans and borrowings and receivables are disclosed in notes 18 and 9, respectively.
\nThe Board\u2019s policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future development of the business. Capital consists of ordinary shares, retained earnings and non-controlling interests of the Group. The Board of Directors monitors the return on capital as well as the level of dividends to ordinary shareholders. The Group is required by external financial institutions to maintain certain capital requirements compared to its debt. Reference is made to note 18 for a description of financial covenants.
\nProceeds from the sale of equity interests in Fertiglobe and IFCo will be used to significantly reduce holding company debt to maintain a strong capital base, alongside a substantial distribution of capital to shareholders, whilst continuing to execute announced growth initiatives. OCI has suspended its semi-annual cash distribution in light of recent strategic activity during the period and given extraordinary distributions of capital to shareholders expected to be made in FY 2024 from transaction proceeds.
\nThe Group\u2019s net debt to equity ratio at the reporting date was as follows:
\n$ millions | Note | 31 December 2023 | 31 December 2022 |
|---|---|---|---|
Loans and borrowings | (18) | 2,157.4 | 2,875.7 |
Less: cash and cash equivalents | (14) | 156.9 | 1,717.0 |
Net debt | \u00a0 | 2,000.5 | 1,158.7 |
Total equity | \u00a0 | 1,950.4 | 4,339.7 |
Net debt to equity ratio | \u00a0 | 1.03 | 0.27 |
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This arises principally from the Group\u2019s receivables from trade and other receivables, financial assets at fair value through other comprehensive income and from outstanding cash balances with banks. The Company mitigates the exposure to credit risk on outstanding cash balances by placing funds at multiple financial institutions with a sufficient credit rating.
\nThe Group\u2019s exposure to customer credit risk is monitored and mitigated by performing credit checks before selling any goods. No collateral is received. Customers are typically billed after the goods have been delivered or the services have been performed. Customary payment terms for the Group's receivables is 30 days. In certain instances, the Group receives upfront payment for services and recognizes deferred revenue. The Group establishes an allowance, if needed, for impairment that represents its estimate of expected losses in respect of trade and other receivables.
\nThe main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected based on historical performance. IFRS 9 establishes a three-stage impairment model, based on whether there has been a significant increase in the credit risk of a financial asset since its initial recognition. As at 31 December 2023, management assessed for any significant increase in credit risk based on internal and external factors related to the financial instruments and concluded no such significant increase in credit risk was present. Hence, the expected credit loss on instruments is calculated based on Stage 1 (i.e. 12-month expected credit losses). The Group has determined that expected credit losses on financial assets is immaterial as at 31 December 2023.
\nThe Group is party to a securitization agreement to sell certain trade receivables to an external financial institution. The agreement permits securitization of trade receivables up to USD 331.2 million (EUR 300.0 million). As per 31 December 2023 an amount of USD 202.0 million (EUR 183.0 million) of trade receivables were transferred.
\nWith respect to transactions with financial institutions, the Group sets a minimum credit rating for the counterparties. The maximum exposure to credit risk is the carrying amount of financial instruments, for an overview reference is made to the tables below. There is no significant concentration by counterparty of credit risk in trade and other receivables or financial assets at fair value through other comprehensive income. Concentrations of receivables by region can be seen in the table below.
\nThe maximum exposure to credit risk at the reporting date is as follows:
\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Trade and other receivables | (9) | 396.1 | 881.9 |
Financial assets at fair value through other comprehensive income | (11) | 9.0 | 18.8 |
Cash and cash equivalents | (14) | 156.9 | 1,717.0 |
Total | \u00a0 | 562.0 | 2,617.7 |
The maximum exposure to credit risk for trade and other receivables by geographic region is as follows:
\n$ millions | 2023 | 2022 |
|---|---|---|
Middle East and Africa | 69.7 | 138.4 |
Asia and Oceania | 9.4 | 171.5 |
Europe | 158.6 | 382.0 |
Americas | 158.4 | 190.0 |
Total | 396.1 | 881.9 |
The maximum exposure to credit risk for cash and cash equivalents by geographic region is as follows:
\n$ millions | 2023 | 2022 |
|---|---|---|
Middle East and Africa | 55.2 | 1,442.0 |
Europe | 76.3 | 193.1 |
Americas | 25.4 | 81.9 |
Total | 156.9 | 1,717.0 |
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.
\nThe future obligations will be managed by the future incoming cash from operations, proceeds from disposal of the Group's investments in Fertiglobe plc and IFCo, cash and cash equivalents of USD 156.9 million (2022: USD 1,717.0 million) and unused amounts on credit facility agreements in the amount of USD 387.3 million (2022: USD 1,750.0 million), reference is made to note 18' Undrawn bank facilities'.
\nThe Group\u2019s approach to managing liquidity risk is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group\u2019s reputation.
\nThe securitization of trade receivables is one mechanism used to manage the Group's liquidity risk. This is also safeguarded by using multiple financial institutions in order to mitigate any concentration of liquidity risk. The Group\u2019s financing strategy is to secure external financing primarily at OCI N.V. with debt at an operating company level only if there is a compelling economic rationale. OCI N.V. acts as the financing company thus limiting the number of cross relationships within the Group and maximizing flexibility to divest operating companies.
\nThe liquidity risk is monitored internally at Group level. On an ongoing basis the Group prepares liquidity forecasts to verify whether the Group is able to meet its future debt obligations. The Company has also carefully evaluated the funding of its Business Plan for at least the next 12 months from the date of issuance of the financial statements and has applied sensitivities to the forecast level of liquidity headroom available. Key assumptions include product pricing, natural gas pricing and utilization rates and the ability to arrange financing and obtain waivers for potential covenant breaches. Management has applied these assumptions to the forecasts, which would leave sufficient liquidity headroom. Refer to note 2.2 and note 18 of the notes to the consolidated financial statements for the Company\u2019s analyses of going concern and debt covenants, respectively.
\n31 December 2023 | Note | Carrying amount | Contractual cash flow | Less than 1 year | Between 1 and 5 years | More than 5 years |
|---|---|---|---|---|---|---|
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,157.4 | 2,618.4 | 241.7 | 1,636.0 | 740.7 |
Lease obligations | (19) | 142.3 | 142.1 | 28.5 | 49.0 | 64.6 |
Trade and other payables | (20) | 490.6 | 490.6 | 455.4 | 35.0 | 0.2 |
Derivatives | (20) | 177.9 | 180.5 | 74.4 | 106.1 | - |
Total | \u00a0 | 2,968.2 | 3,431.6 | 800.0 | 1,826.1 | 805.5 |
31 December 2022 | Note | Carrying amount | Contractual cash flow | Less than 1 year | Between 1 and 5 years | More than 5 years |
|---|---|---|---|---|---|---|
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,875.7 | 3,863.7 | 371.1 | 2,010.0 | 1,482.6 |
Lease obligations | (19) | 276.1 | 515.2 | 50.0 | 101.0 | 364.2 |
Trade and other payables | (20) | 786.7 | 786.7 | 718.8 | 65.4 | 2.5 |
Derivatives | (20) | 141.4 | 142.1 | 82.4 | 59.7 | - |
Total | \u00a0 | 4,079.9 | 5,307.7 | 1,222.3 | 2,236.1 | 1,849.3 |
The interest on floating rate loans and borrowings is based on forward interest rates at period-end. This interest rate may change as the market interest rate changes.
\nThe following refinancing activities were completed during 2023 to optimize the Group\u2019s finance cost and enhance its cashflow up-streaming to OCI N.V.:
On 10 March 2023, OCI N.V. announced a bond offering consisting of USD 600.0 million senior unsecured fixed rate notes due 2033 as part of a USD 2.0 billion global medium term program. The notes bear interest at a rate of 6.7% per annum. The notes are senior unsecured obligations of the Company and are guaranteed by IFCo. Interest is payable semi-annually. The proceeds from the offering were used for general corporate purposes of the Group.
For an overview of all loans and borrowings, reference is made to note 18.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-7": { "value": "OCI N.V.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-538": { "value": "\nMarket risk is the risk of changes in market prices, such as foreign exchange rates, interest rates, commodity prices and equity prices that will affect the Group\u2019s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
\nThe Group is exposed to foreign currency risk arising in separate ways:
\nThe Group entities predominantly execute their activities in their respective functional currencies. The Group is however exposed to foreign exchange transaction risk when Group entities enter into foreign currency denominated transactions. The Group monitors the exposure to foreign currency risk arising from operating activities and enters selectively into foreign exchange contracts to hedge foreign currency exposures. The nominal amount of the foreign currency derivatives outstanding used to hedge transaction risk as per 31 December 2023 was USD 2.3 million (2022: USD 62.3 million) and relates to the USD exposure of the Group (on Euro currencies). The functional currencies of the continuing operations of the Group are primarily the US dollar and the Euro.
\nThe Group is exposed to the translation of foreign currency denominated monetary assets and liabilities. These exposures are managed by the Group's treasury function, which may hedge a portion of the foreign currency exposures estimated to arise in the foreseeable future.
\nFor the unhedged portion the Group seeks to mitigate translation risk by matching the remaining currency of debt with available cashflows in the respective currency. A portion of the translation risks related to the Group's financing of its subsidiaries is hedged by utilizing net investment hedging.The Group is exposed to foreign exchange fluctuations through monetary items denominated in foreign currencies other than the relevant functional currency and intercompany balances. The summary of this exposure is as follows:
\n31 December 2023 | USD | EUR |
|---|---|---|
Trade and other receivables | 32.8 | 0.0 |
Trade and other receivables - Intercompany | 784.9 | 24.1 |
Trade and other payables | (142.9) | - |
Trade and other payables - Intercompany | (112.2) | (0.2) |
Loans and borrowings | (55.7) | - |
Loans and borrowings - Intercompany | (41.6) | (99.1) |
Provisions | - | - |
Cash and cash equivalents | 71.6 | 55.7 |
31 December 2022 | USD | EUR | EGP |
|---|---|---|---|
Trade and other receivables | 72.7 | 20.0 | 72.9 |
Trade and other receivables - Intercompany | 183.5 | 285.8 | 40.7 |
Trade and other payables | (124.3) | (3.4) | (7.4) |
Trade and other payables - Intercompany | (88.5) | (247.7) | (0.4) |
Loans and borrowings | - | - | - |
Loans and borrowings - Intercompany | (475.1) | (109.3) | - |
Provisions | - | - | (76.8) |
Cash and cash equivalents | 890.0 | 22.8 | 16.5 |
The Group's exposure to foreign exchange fluctuations are higher in 2022 than those shown in the current year as they include disposal groups held for sale / discontinued operations.
\nThe Group's risk management strategy is to hedge the spot foreign exchange risk on net investments in foreign operations. The risk management objective is to reduce foreign exchange results on net investments in USD.
\nIn 2021, the Group has adopted a net investment in foreign operation hedging relationship. The hedge relationship is a hedge of the foreign currency exposures on net investment in foreign operations in USD. The hedge relationship is designated at the level of the Group for the purpose of the consolidated financial statements. The hedged items are all operational USD foreign operations of the Group. To comply with the risk management policy, the hedge ratio is based on hedging the spot rate foreign currency exposure of USD foreign operations with hedging instruments with same or lower notional amount. This results in a hedge ratio of 1:1 or 100%. Change in the amount of net assets in the foreign operations below the notional amount of hedging instruments will result in ineffectiveness.
\nThe hedging instruments relate to the USD denominated unsecured senior notes and unsecured loan facility recorded in OCI N.V., reference is made to note 18 for further details.
\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Carrying amount hedging instruments | (18) | 1,253.3 | 288.3 |
Principal amount of hedging instruments | (18) | 1,988.3 | 1,388.3 |
Changes in fair value of hedging instruments carrying amount | \u00a0 | 39.0 | (49.9) |
Cumulative amount recognized1 | \u00a0 | (148.3) | (187.3) |
The following significant exchange rates applied during the year against the US dollar:
\n| \u00a0 | Average 2023 | Average 2022 | Closing 2023 | Closing 2022 |
|---|---|---|---|---|
Euro | 1.0815 | 1.0533 | 1.1039 | 1.0711 |
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rate to increase or (decrease) against the EUR, with all other variables held constant. The continuing operations of the Group has reduced its exposure to EGP and DZD due to the pending sale of Fertiglobe. The Group\u2019s exposure to foreign currency changes for all other currencies is not material.
\n31 December 2023 | Change in FX rate | Effect on profit before tax | Effect on equity |
|---|---|---|---|
EUR - USD | 8 percent | 41.7 | 100.3 |
| \u00a0 | (8) percent | (41.7) | (100.3) |
31 December 2022 | Change in FX rate | Effect on profit before tax | Effect on equity |
|---|---|---|---|
EUR - USD | 10 percent | (49.0) | (34.7) |
| \u00a0 | (10) percent | 49.0 | 34.7 |
EGP - USD | 10 percent | 4.5 | - |
| \u00a0 | (10) percent | (4.5) | - |
DZD - USD | 4 percent | 36.7 | - |
| \u00a0 | (4) percent | (36.7) | - |
The figures in the above overview are determined based on the currency volatility of the respective years. A significant part of the Group\u2019s exposure to foreign currency transaction risk relates to intercompany balances.
\nThe Group\u2019s cash flow interest rate risks arise from the exposure to variability in future cash flows of floating rate financial instruments and refinancing fixed rate borrowings. The Group regularly reviews its exposure to the global interest rate environment.
\nThe Group analyses its interest rate exposure on a dynamic basis. The Group calculates the impact on profit or loss of a defined interest rate shift. The same interest rate shift is used for all currencies. The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market data, showing a higher volatility compared to prior years. The interest rate sensitivity calculation is based on the interest-bearing liabilities. With all other variables held constant, the Group\u2019s profit before tax is affected through the impact on floating rate borrowings plus refinancing of fixed rate borrowings. The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings affected:
\n$ millions | In basis points | 2023 | 2022 |
|---|---|---|---|
Effect on profit before tax for the coming year | + 200 bps | (15.8) | (26.9) |
Effect on profit before tax for the coming year | - 200 bps | 15.8 | 26.9 |
A fundamental reform of major interest rate benchmarks has occurred globally, including the replacement of some interbank offered rates (IBOR), with alternative nearly risk-free rates. The Group\u2019s main IBOR exposure was USD LIBOR on its loans. The alternative reference rate for USD LIBOR is the Secured Overnight Financing Rate (SOFR). The Group finished the process of amending contractual terms in response to IBOR reform during 2022. The USD LIBOR ceased as per 30 June 2023.
\nAll other financial instruments that were subject to the interest rate benchmark reform had contractual provisions in place to seamlessly transition to a new reference rate when publication of LIBOR ceased. All other instruments subject to the reform were non-derivative financial liabilities.
\nIn connection with the announced strategic transactions, the Group has entered into a interest rate hedge. The notional amount hedged is USD 895.0\u00a0million. The fair value gain of the interest rate hedge as at 31 December 2023 amount to USD 5.0\u00a0million.
\nNatural gas is one of the primary raw materials used in the Group\u2019s production processes. The Group is exposed to natural gas price commodity risk for those entities that buy natural gas at spot prices.
\nManagement monitors the development of gas prices and products\u2019 selling prices on a daily basis using external historical and forecast market data provided by several data vendors. Management analyzes the potential profit margin per product based on this data in order to make operational and hedging decisions.
\nFor the entities that are impacted by changes in natural gas prices during FY 2024, a change in the average natural gas prices by USD 1 per MMBtu would impact the total annual cost of sales by USD 63.0 million (2022: USD 103.0 million), excluding the impact of hedges. The decrease is mainly due to IFCo being presented as discontinued operations in 2023.
\nThe Group enters into gas hedges in order to hedge future gas price levels over a certain period of time (reference is made to note 20). The Group uses derivatives (Basis swaps, Index swaps and options) in order to do so and does not apply hedge accounting on these instruments, therefore all fair value changes related to these financial instruments are recognized in profit or loss. Where there is no past practice of being net cash-settled, fixed price gas contracts and month-ahead swaps are accounted for under the \u2018own use\u2019 exemption. The fiscal year 2024 gas price risk is reduced by the Group to an extent of 60% (including both physical pricings and financial hedges). The outstanding gas hedges in MMBtu as per 31 December 2023 for the years 2024-2029 are:
Flat priced contracts: 211.8 million (2022: 317.6 million);
Options (delta equivalent): 7.3 million (2022: 7.3 million);
Basis Swaps: Nil (2022: 0.9 million)
The Group has a cash collateral obligation for the outstanding gas hedges with one counterparty for any mark-to-market liability that exceeds USD 25 million. These hedges in MMBtu approximate 78% of the outstanding volume of gas hedges. As at 31 December 2023, the margin calls which have taken place under this obligation amounted to USD 84.4 million (2022: Nil). Reference is made to note 9.
\nDuring the year, the Group generated additional liquidity by selling EUAs to the market. This generated total net proceeds of USD 0.5 million (2022: USD 94.6 million) resulted from the sale and repurchase of EUAs. Included in the net proceeds received, a gross amount of USD 36.4 million (2022: USD 132.2 million) was recognized in cost of sales related to the sale of excess EUAs.
\nWhen EUAs were sold for cash management purposes, a liability is recognized for the obligation to refund the allowances for CO2 emissions during the compliance period. This liability is subsequently measured at fair value. The total liability recorded as 31 December 2023 was Nil (2022: USD 36.7 million).
\nTo manage the fair value risk of the EUA liability, the Group entered into financial hedges in 2022 to purchase 0.9 million of EUAs. The fair value of these forward contracts amounts to was USD (5.2) million in 2022. In 2023 the group did not enter into any financial hedges. The group did not apply hedge accounting to these contracts.
\nThe following table presents the various categories of financial instruments:
\n31 December 2023 | Note | Loans and receivables / payables at amortized cost | Derivatives at fair value | Financial assets at fair value through other comprehensive income |
|---|---|---|---|---|
Assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | (9) | 304.7 | 2.9 | - |
Financial assets at fair value through other comprehensive income | (11) | - | - | 9.0 |
Cash and cash equivalents | (14) | 156.9 | - | - |
Total | \u00a0 | 461.6 | 2.9 | 9.0 |
Liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,157.4 | - | - |
Trade and other payables | (20) | 634.6 | 177.9 | - |
Total | \u00a0 | 2,792.0 | 177.9 | - |
31 December 2022 | Note | Loans and receivables / payables at amortized cost | Derivatives at fair value | Financial assets at fair value through other comprehensive income |
|---|---|---|---|---|
Assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | (9) | 582.6 | 22.9 | - |
Financial assets at fair value through other comprehensive income | (11) | - | - | 18.8 |
Cash and cash equivalents | (14) | 1,717.0 | - | - |
Total | \u00a0 | 2,299.6 | 22.9 | 18.8 |
Liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | (18) | 2,875.7 | - | - |
Trade and other payables | (20) | 1,220.3 | 178.1 | - |
Total | \u00a0 | 4,096.0 | 178.1 | - |
The Group has limited financial instruments carried at fair value. For derivative financial instruments, the fair value is calculated within hierarchy category level 2. Financial assets at fair value through other comprehensive income recognized as level 1 is USD 1.7 million (2022: USD 2.2 million).
\nThe investment in the Infrastructure and Growth Capital Fund was recognized as level 2 as the valuation was partially derived from listed shares (2022: USD 1.5 million). The investment was sold in October 2023, reference is made to 11 and 16, respectively. The investment in Notore Chemical of USD 7.3 million (2022: USD 15.1 million) is designated as fair value through other comprehensive income. Any gains or losses from changes in the fair value of this investment are recognized in other comprehensive income. The fair value of this investment in Notore is classified as level 3, reference is made to note 11. Notore is listed on the Nigerian Stock Exchange since 2018, however due to the lack in trading volumes the investment is still valued within the hierarchy category level 3 based on audited financial statements. In 2023 and 2022, there were no transfers between the fair value hierarchy categories. The fair value of loans and borrowings and receivables are disclosed in notes 18 and 9, respectively.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-539": { "value": "\nThe Group is exposed to foreign currency risk arising in separate ways:
\nThe Group entities predominantly execute their activities in their respective functional currencies. The Group is however exposed to foreign exchange transaction risk when Group entities enter into foreign currency denominated transactions. The Group monitors the exposure to foreign currency risk arising from operating activities and enters selectively into foreign exchange contracts to hedge foreign currency exposures. The nominal amount of the foreign currency derivatives outstanding used to hedge transaction risk as per 31 December 2023 was USD 2.3 million (2022: USD 62.3 million) and relates to the USD exposure of the Group (on Euro currencies). The functional currencies of the continuing operations of the Group are primarily the US dollar and the Euro.
\nThe Group is exposed to the translation of foreign currency denominated monetary assets and liabilities. These exposures are managed by the Group's treasury function, which may hedge a portion of the foreign currency exposures estimated to arise in the foreseeable future.
\nFor the unhedged portion the Group seeks to mitigate translation risk by matching the remaining currency of debt with available cashflows in the respective currency. A portion of the translation risks related to the Group's financing of its subsidiaries is hedged by utilizing net investment hedging.The Group is exposed to foreign exchange fluctuations through monetary items denominated in foreign currencies other than the relevant functional currency and intercompany balances. The summary of this exposure is as follows:
\n31 December 2023 | USD | EUR |
|---|---|---|
Trade and other receivables | 32.8 | 0.0 |
Trade and other receivables - Intercompany | 784.9 | 24.1 |
Trade and other payables | (142.9) | - |
Trade and other payables - Intercompany | (112.2) | (0.2) |
Loans and borrowings | (55.7) | - |
Loans and borrowings - Intercompany | (41.6) | (99.1) |
Provisions | - | - |
Cash and cash equivalents | 71.6 | 55.7 |
31 December 2022 | USD | EUR | EGP |
|---|---|---|---|
Trade and other receivables | 72.7 | 20.0 | 72.9 |
Trade and other receivables - Intercompany | 183.5 | 285.8 | 40.7 |
Trade and other payables | (124.3) | (3.4) | (7.4) |
Trade and other payables - Intercompany | (88.5) | (247.7) | (0.4) |
Loans and borrowings | - | - | - |
Loans and borrowings - Intercompany | (475.1) | (109.3) | - |
Provisions | - | - | (76.8) |
Cash and cash equivalents | 890.0 | 22.8 | 16.5 |
The Group's exposure to foreign exchange fluctuations are higher in 2022 than those shown in the current year as they include disposal groups held for sale / discontinued operations.
\nThe Group's risk management strategy is to hedge the spot foreign exchange risk on net investments in foreign operations. The risk management objective is to reduce foreign exchange results on net investments in USD.
\nIn 2021, the Group has adopted a net investment in foreign operation hedging relationship. The hedge relationship is a hedge of the foreign currency exposures on net investment in foreign operations in USD. The hedge relationship is designated at the level of the Group for the purpose of the consolidated financial statements. The hedged items are all operational USD foreign operations of the Group. To comply with the risk management policy, the hedge ratio is based on hedging the spot rate foreign currency exposure of USD foreign operations with hedging instruments with same or lower notional amount. This results in a hedge ratio of 1:1 or 100%. Change in the amount of net assets in the foreign operations below the notional amount of hedging instruments will result in ineffectiveness.
\nThe hedging instruments relate to the USD denominated unsecured senior notes and unsecured loan facility recorded in OCI N.V., reference is made to note 18 for further details.
\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Carrying amount hedging instruments | (18) | 1,253.3 | 288.3 |
Principal amount of hedging instruments | (18) | 1,988.3 | 1,388.3 |
Changes in fair value of hedging instruments carrying amount | \u00a0 | 39.0 | (49.9) |
Cumulative amount recognized1 | \u00a0 | (148.3) | (187.3) |
The following significant exchange rates applied during the year against the US dollar:
\n| \u00a0 | Average 2023 | Average 2022 | Closing 2023 | Closing 2022 |
|---|---|---|---|---|
Euro | 1.0815 | 1.0533 | 1.1039 | 1.0711 |
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rate to increase or (decrease) against the EUR, with all other variables held constant. The continuing operations of the Group has reduced its exposure to EGP and DZD due to the pending sale of Fertiglobe. The Group\u2019s exposure to foreign currency changes for all other currencies is not material.
\n31 December 2023 | Change in FX rate | Effect on profit before tax | Effect on equity |
|---|---|---|---|
EUR - USD | 8 percent | 41.7 | 100.3 |
| \u00a0 | (8) percent | (41.7) | (100.3) |
31 December 2022 | Change in FX rate | Effect on profit before tax | Effect on equity |
|---|---|---|---|
EUR - USD | 10 percent | (49.0) | (34.7) |
| \u00a0 | (10) percent | 49.0 | 34.7 |
EGP - USD | 10 percent | 4.5 | - |
| \u00a0 | (10) percent | (4.5) | - |
DZD - USD | 4 percent | 36.7 | - |
| \u00a0 | (4) percent | (36.7) | - |
The figures in the above overview are determined based on the currency volatility of the respective years. A significant part of the Group\u2019s exposure to foreign currency transaction risk relates to intercompany balances.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-541": { "value": "\nNatural gas is one of the primary raw materials used in the Group\u2019s production processes. The Group is exposed to natural gas price commodity risk for those entities that buy natural gas at spot prices.
\nManagement monitors the development of gas prices and products\u2019 selling prices on a daily basis using external historical and forecast market data provided by several data vendors. Management analyzes the potential profit margin per product based on this data in order to make operational and hedging decisions.
\nFor the entities that are impacted by changes in natural gas prices during FY 2024, a change in the average natural gas prices by USD 1 per MMBtu would impact the total annual cost of sales by USD 63.0 million (2022: USD 103.0 million), excluding the impact of hedges. The decrease is mainly due to IFCo being presented as discontinued operations in 2023.
\nThe Group enters into gas hedges in order to hedge future gas price levels over a certain period of time (reference is made to note 20). The Group uses derivatives (Basis swaps, Index swaps and options) in order to do so and does not apply hedge accounting on these instruments, therefore all fair value changes related to these financial instruments are recognized in profit or loss. Where there is no past practice of being net cash-settled, fixed price gas contracts and month-ahead swaps are accounted for under the \u2018own use\u2019 exemption. The fiscal year 2024 gas price risk is reduced by the Group to an extent of 60% (including both physical pricings and financial hedges). The outstanding gas hedges in MMBtu as per 31 December 2023 for the years 2024-2029 are:
Flat priced contracts: 211.8 million (2022: 317.6 million);
Options (delta equivalent): 7.3 million (2022: 7.3 million);
Basis Swaps: Nil (2022: 0.9 million)
The Group has a cash collateral obligation for the outstanding gas hedges with one counterparty for any mark-to-market liability that exceeds USD 25 million. These hedges in MMBtu approximate 78% of the outstanding volume of gas hedges. As at 31 December 2023, the margin calls which have taken place under this obligation amounted to USD 84.4 million (2022: Nil). Reference is made to note 9.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-542": { "value": "\nThe Group has a cash collateral obligation for the outstanding gas hedges with one counterparty for any mark-to-market liability that exceeds USD 25 million. These hedges in MMBtu approximate 78% of the outstanding volume of gas hedges. As at 31 December 2023, the margin calls which have taken place under this obligation amounted to USD 84.4 million (2022: Nil). Reference is made to note 9.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-543": { "value": "\nThe Board\u2019s policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future development of the business. Capital consists of ordinary shares, retained earnings and non-controlling interests of the Group. The Board of Directors monitors the return on capital as well as the level of dividends to ordinary shareholders. The Group is required by external financial institutions to maintain certain capital requirements compared to its debt. Reference is made to note 18 for a description of financial covenants.
\nProceeds from the sale of equity interests in Fertiglobe and IFCo will be used to significantly reduce holding company debt to maintain a strong capital base, alongside a substantial distribution of capital to shareholders, whilst continuing to execute announced growth initiatives. OCI has suspended its semi-annual cash distribution in light of recent strategic activity during the period and given extraordinary distributions of capital to shareholders expected to be made in FY 2024 from transaction proceeds.
\nThe Group\u2019s net debt to equity ratio at the reporting date was as follows:
\n$ millions | Note | 31 December 2023 | 31 December 2022 |
|---|---|---|---|
Loans and borrowings | (18) | 2,157.4 | 2,875.7 |
Less: cash and cash equivalents | (14) | 156.9 | 1,717.0 |
Net debt | \u00a0 | 2,000.5 | 1,158.7 |
Total equity | \u00a0 | 1,950.4 | 4,339.7 |
Net debt to equity ratio | \u00a0 | 1.03 | 0.27 |
$ millions | Land and buildings | Plant and equipment | Fixtures and fittings | Under construction | Total |
|---|---|---|---|---|---|
Cost | 748.6 | 9,208.8 | 73.8 | 147.8 | 10,179.0 |
Accumulated depreciation | (209.1) | (4,380.3) | (46.1) | - | (4,635.5) |
At 1 January 2022 | 539.5 | 4,828.5 | 27.7 | 147.8 | 5,543.5 |
Additions | 38.9 | 42.2 | 2.6 | 310.4 | 394.1 |
Disposals | (1.7) | (1.1) | 0.1 | (2.2) | (4.9) |
Depreciation | (29.0) | (495.0) | (5.9) | - | (529.9) |
Impairment | - | (22.3) | - | - | (22.3) |
Transfers | 0.4 | 193.8 | 1.0 | (195.2) | - |
Reclassification | - | 32.5 | - | (1.1) | 31.4 |
Asset retirement obligation | - | - | (6.3) | - | (6.3) |
Movement in exchange rates | 0.4 | (10.7) | (1.1) | (3.1) | (14.5) |
At 31 December 2022 | 548.5 | 4,567.9 | 18.1 | 256.6 | 5,391.1 |
Cost | 778.6 | 9,371.6 | 67.8 | 256.6 | 10,474.6 |
Accumulated depreciation | (230.1) | (4,803.7) | (49.7) | - | (5,083.5) |
At 31 December 2022 | 548.5 | 4,567.9 | 18.1 | 256.6 | 5,391.1 |
Additions | 7.2 | 57.6 | 2.9 | 781.8 | 849.5 |
Disposals | - | (3.8) | (0.1) | (1.3) | (5.2) |
Depreciation | (27.7) | (522.5) | (4.2) | - | (554.4) |
Impairment | - | (1.5) | - | - | (1.5) |
Transfers | 9.0 | 367.1 | (0.4) | (375.7) | - |
Reclassified to assets held for sale | (479.7) | (3,860.2) | (15.1) | (119.7) | (4,474.7) |
Movement in exchange rates | 1.5 | 25.0 | 0.3 | 3.8 | 30.6 |
At 31 December 2023 | 58.8 | 629.6 | 1.5 | 545.5 | 1,235.4 |
Cost | 80.1 | 2,165.3 | 8.8 | 545.5 | 2,799.7 |
Accumulated depreciation | (21.3) | (1,535.7) | (7.3) | - | (1,564.3) |
At 31 December 2023 | 58.8 | 629.6 | 1.5 | 545.5 | 1,235.4 |
As at 31 December 2023, the Group has land with a carrying amount of USD 39.4 million (2022: USD 69.7 million). The transfers of USD 375.7 million (2022: USD 195.2 million) are assets under construction that were put into use during the year. Transfers mainly relate to OCIN for USD 148.4 million, OCIB for USD 9.9 million, which are both included as part of continuing operations. Transfers also related to IFCo for USD 192.4 million and Fertil for USD 6.3 million, which are included as part of assets held for sale. The additions of USD 849.5 million (2022: USD 394.1 million) mainly relate to OCI Clean Ammonia LLC for USD 393.9 millio and OCIN for USD 104.1 million as part of continuing operations and IFCo for USD 192.8 million, Sorfert for USD 32.6 million and EFC for USD 33.9 million as part of discontinued operations.
\nThe effect of movement in exchange rates in 2023 mainly relates to BioMCN and OCIN, which have a functional currency of the Euro, compared to the Group\u2019s presentation currency. The effect of movement in exchange rates in 2023 also relates to Sorfert before it was classified as part of a disposal group held for sale, as the functional currency of Sorfert (Algerian dinar) is not the same as the presentation currency of the Group. The Algerian dinar increased by 2.7% and the Euro increased by 3.1% against the US dollar in 2023. The capitalized borrowing costs in 2023 were USD 9.7 million (2022: USD 1.0 million) based on a weighted average borrowing rate of 4.48% (2022: 4.49%).
\nThe difference between the additions in the above schedule and the investments in property, plant and equipment mentioned in the consolidated statement of cash flows is mainly caused by changes in capital expenditure creditors not yet paid and capitalized borrowing costs, which are presented as part of interest expenses under cash flows from operating activities in the consolidated statement of cash flows. Further, any additions to property, plant and equipment incurred by discontinued operations is included in the cash flow statement under the line 'Net cash used in investing activities - discontinued operations'. For capital commitments reference is made to note 30.
\nDuring 2023 an impairment loss of USD 1.5 million on property, plant and equipment (2022: USD 12.8 million) was recognized in cost of sales of BioMCN. During 2022 and 2023, production at this facility has been shut down in response to the high gas price environment. The carrying amount of these asset is Nil as of 31 December 2023. The impairment losses on BioMCN's property, plant and equipment pertain to investments made to maintain the plant, which are subsequently impaired as the recoverable amount for the cash generating unit is deemed zero. In 2022, an impairment loss of USD 5.2 million was recorded relating to a lease modification that was subsequently impaired on the same basis. BioMCN is included in the segment 'Methanol EU'.
\n$ millions | Land and buildings | Plant and equipment | Fixtures and fittings | Total |
|---|---|---|---|---|
At 1 January 2022 | 145.8 | 60.7 | 41.7 | 248.2 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | 12.6 | 27.8 | 2.4 | 42.8 |
Modifications | 0.4 | 2.9 | - | 3.3 |
Disposals | - | (0.3) | - | (0.3) |
Depreciation | (10.3) | (22.0) | (9.6) | (41.9) |
Impairment | (0.5) | (4.7) | - | (5.2) |
Movement in exchange rates | (5.5) | (1.2) | - | (6.7) |
At 31 December 2022 | 142.5 | 63.2 | 34.5 | 240.2 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | 2.2 | 67.8 | 2.4 | 72.4 |
Modifications | (5.8) | 6.7 | - | 0.9 |
Disposals | - | (0.3) | (1.2) | (1.5) |
Depreciation | (16.3) | (34.1) | (11.7) | (62.1) |
Reclassified to assets held for sale | (50.2) | (56.9) | (23.9) | (131.0) |
Movement in exchange rates | 2.5 | 0.7 | - | 3.2 |
At 31 December 2023 | 74.9 | 47.1 | 0.1 | 122.1 |
The additions of USD 72.4 million (2022: USD 42.8 million) mainly relate to OCIN for USD 7.6 million (included in assets held for use). The additions also relate to N-7 for USD 39.7 million, FD for USD 19.2 million, before these subsidiaries were classified as part of a disposal group held for sale. The effect of movement in exchange rates of USD 3.2 million (2022: USD 6.7 million) mainly relates to OCIN, which have a different functional currency (Euro) compared to the Group\u2019s presentation currency. The Group recognized expenses of USD 0.1 million (2022: USD 0.1 million) related to leases that either meet the short term exemption or the low value exemption of IFRS 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-545": { "value": "\n$ millions | Land and buildings | Plant and equipment | Fixtures and fittings | Total |
|---|---|---|---|---|
At 1 January 2022 | 145.8 | 60.7 | 41.7 | 248.2 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | 12.6 | 27.8 | 2.4 | 42.8 |
Modifications | 0.4 | 2.9 | - | 3.3 |
Disposals | - | (0.3) | - | (0.3) |
Depreciation | (10.3) | (22.0) | (9.6) | (41.9) |
Impairment | (0.5) | (4.7) | - | (5.2) |
Movement in exchange rates | (5.5) | (1.2) | - | (6.7) |
At 31 December 2022 | 142.5 | 63.2 | 34.5 | 240.2 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | 2.2 | 67.8 | 2.4 | 72.4 |
Modifications | (5.8) | 6.7 | - | 0.9 |
Disposals | - | (0.3) | (1.2) | (1.5) |
Depreciation | (16.3) | (34.1) | (11.7) | (62.1) |
Reclassified to assets held for sale | (50.2) | (56.9) | (23.9) | (131.0) |
Movement in exchange rates | 2.5 | 0.7 | - | 3.2 |
At 31 December 2023 | 74.9 | 47.1 | 0.1 | 122.1 |
The additions of USD 72.4 million (2022: USD 42.8 million) mainly relate to OCIN for USD 7.6 million (included in assets held for use). The additions also relate to N-7 for USD 39.7 million, FD for USD 19.2 million, before these subsidiaries were classified as part of a disposal group held for sale. The effect of movement in exchange rates of USD 3.2 million (2022: USD 6.7 million) mainly relates to OCIN, which have a different functional currency (Euro) compared to the Group\u2019s presentation currency. The Group recognized expenses of USD 0.1 million (2022: USD 0.1 million) related to leases that either meet the short term exemption or the low value exemption of IFRS 16.
\nThe Group leases a number of office spaces, warehouses, land, employee accommodation, computers, machinery and vehicles. Lease terms vary from 1 year to indefinite renewal options. Calculations of the lease obligation for leases with indefinite renewal options are done using a lease term based on the expected renewal periods and can be more than 100 years.
\n$ millions | Non-current lease obligations | Current lease obligations | Total |
|---|---|---|---|
At 1 January 2022 | 237.5 | 39.7 | 277.2 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 |
Payments | - | (47.4) | (47.4) |
Accretion of interest | 7.6 | 0.6 | 8.2 |
Additions | 33.2 | 9.8 | 43.0 |
Disposals | (0.4) | 0.1 | (0.3) |
Transfers | (46.7) | 46.7 | - |
Modifications | 3.3 | - | 3.3 |
Effect of movement in exchange rates | (7.0) | (0.9) | (7.9) |
At 31 December 2022 | 227.5 | 48.6 | 276.1 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 |
Payments | - | (67.8) | (67.8) |
Accretion of interest | 4.9 | 2.5 | 7.4 |
Additions | 49.1 | 22.9 | 72.0 |
Disposals | (0.5) | (1.7) | (2.2) |
Transfers | (59.9) | 59.9 | 0.0 |
Modifications | 0.9 | - | 0.9 |
Reclassified to liabilities held for sale | (111.6) | (36.4) | (148.0) |
Effect of movement in exchange rates | 3.4 | 0.5 | 3.9 |
At 31 December 2023 | 113.8 | 28.5 | 142.3 |
For the lease obligations included as part of the disposal groups held for sale, reference is made to note 22.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-546": { "value": "\n$ millions | Goodwill | Licences and trademarks | Other intangible assets | Under construction | Total |
|---|---|---|---|---|---|
Cost | 1,807.1 | 74.0 | 6.5 | - | 1,887.6 |
Accumulated amortization and impairment | (1,322.9) | (74.0) | (5.0) | - | (1,401.9) |
At 1 January 2022 | 484.2 | - | 1.5 | - | 485.7 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | - | - | - | 6.4 | 6.4 |
Reclassification | - | - | - | 1.1 | 1.1 |
Amortization | - | - | (0.3) | - | (0.3) |
Movement in exchange rates | (1.2) | - | (0.2) | - | (1.4) |
At 31 December 2022 | 483.0 | - | 1.0 | 7.5 | 491.5 |
Cost | 1,805.9 | 70.7 | 6.3 | 7.5 | 1,890.4 |
Accumulated amortization and impairment | (1,322.9) | (70.7) | (5.3) | - | (1,398.9) |
At 31 December 2022 | 483.0 | - | 1.0 | 7.5 | 491.5 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | - | - | 0.3 | 17.5 | 17.8 |
Disposals | - | - | - | (0.5) | (0.5) |
Transfers | - | - | 16.7 | (16.7) | - |
Amortization | - | - | (2.0) | - | (2.0) |
Reclassified to assets held for sale | (440.0) | - | (6.7) | (3.0) | (449.7) |
Movement in exchange rates | 0.6 | - | 0.2 | 0.2 | 1.0 |
At 31 December 2023 | 43.6 | - | 9.5 | 5.0 | 58.1 |
Cost | 1,366.5 | - | 16.5 | 5.0 | 1,388.0 |
Accumulated amortization and impairment | (1,322.9) | - | (7.0) | - | (1,329.9) |
At 31 December 2023 | 43.6 | -1 | 9.5 | 5.0 | 58.1 |
Goodwill held for use has been allocated to the cash generating units as follows:
\nCash generating units | Reporting segment | 2023 | 2022 |
|---|---|---|---|
Egyptian Fertilizers Company ('EFC') | Fertiglobe | - | 440.0 |
OCI Beaumont ('OCIB') | Methanol US | 23.0 | 23.0 |
OCI Nitrogen ('OCIN') | Nitrogen Europe | 20.6 | 20.0 |
Total | \u00a0 | 43.6 | 483.0 |
The goodwill associated with EFC is included in the balance of assets held for sale presented in 2023. Further information is included in note 22.
\nThe determination of the recoverable amounts for the cash generating units requires significant judgments and estimates, including projections of future cash flows from the businesses. The recoverable amounts have been estimated based on value in use.
\nThe tests were carried out by discounting future cash flows to be generated from the continuing use of the cash-generating units to which the goodwill applies and on the assumption of an indefinite life. Key assumptions used in the calculation of recoverable amounts are the discount rate, the terminal value growth rate, selling price outlook per product, natural gas prices and the number of expected operating days per plant. The terminal growth rate was determined based on the compound annual growth rate ('CAGR') for the fertilizer industry. The discount rate is estimated based on the capital asset pricing model and adjusted to derive a pre-tax measure. Selling price and natural gas price assumptions are based on a published independent price outlook prepared by global experts. The other assumptions used are based on past experiences and external sources, however these assumptions are unpredictable and inherently uncertain.
\nThe impairment tests are based on specific estimates for cash flow projections for the years 2024 to 2028 (this period captures the cyclical nature of the industry). For the subsequent years, the residual values were calculated based on the average EBITDA margin of the last two years of the projection period and whereby a perpetual growth rate of 2023 was used. The estimated cash flows are discounted using a present value technique.
\nThe following rates were applied in performing the impairment test in 2023:
\nEntity | Percentage | 2023 |
|---|---|---|
OCIB | Pre-tax discount rate | 10.71% |
OCIB | Perpetual growth rate | 2.95% |
OCIN | Pre-tax discount rate | 10.64% |
OCIN | Perpetual growth rate | 2.95% |
The material balance of goodwill in 2022 related to EFC. As at 31 December 2023, EFC is included in the Fertiglobe disposal group classified as held for sale. Reference is made to note 22. The following rates were applied in performing the impairment test of EFC in 2022:
\nEntity | Percentage | 2022 |
|---|---|---|
EFC | Pre-tax discount rate | 19.85% |
EFC | Perpetual growth rate | 4.08% |
For all cash generating units, their recoverable amounts significantly exceed their carrying amounts. No reasonably possible change in a key assumption would cause a cash generating unit\u2019s carrying amount to exceed its recoverable amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-547": { "value": "\n$ millions | Goodwill | Licences and trademarks | Other intangible assets | Under construction | Total |
|---|---|---|---|---|---|
Cost | 1,807.1 | 74.0 | 6.5 | - | 1,887.6 |
Accumulated amortization and impairment | (1,322.9) | (74.0) | (5.0) | - | (1,401.9) |
At 1 January 2022 | 484.2 | - | 1.5 | - | 485.7 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | - | - | - | 6.4 | 6.4 |
Reclassification | - | - | - | 1.1 | 1.1 |
Amortization | - | - | (0.3) | - | (0.3) |
Movement in exchange rates | (1.2) | - | (0.2) | - | (1.4) |
At 31 December 2022 | 483.0 | - | 1.0 | 7.5 | 491.5 |
Cost | 1,805.9 | 70.7 | 6.3 | 7.5 | 1,890.4 |
Accumulated amortization and impairment | (1,322.9) | (70.7) | (5.3) | - | (1,398.9) |
At 31 December 2022 | 483.0 | - | 1.0 | 7.5 | 491.5 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | - | - | 0.3 | 17.5 | 17.8 |
Disposals | - | - | - | (0.5) | (0.5) |
Transfers | - | - | 16.7 | (16.7) | - |
Amortization | - | - | (2.0) | - | (2.0) |
Reclassified to assets held for sale | (440.0) | - | (6.7) | (3.0) | (449.7) |
Movement in exchange rates | 0.6 | - | 0.2 | 0.2 | 1.0 |
At 31 December 2023 | 43.6 | - | 9.5 | 5.0 | 58.1 |
Cost | 1,366.5 | - | 16.5 | 5.0 | 1,388.0 |
Accumulated amortization and impairment | (1,322.9) | - | (7.0) | - | (1,329.9) |
At 31 December 2023 | 43.6 | -1 | 9.5 | 5.0 | 58.1 |
Goodwill held for use has been allocated to the cash generating units as follows:
\nCash generating units | Reporting segment | 2023 | 2022 |
|---|---|---|---|
Egyptian Fertilizers Company ('EFC') | Fertiglobe | - | 440.0 |
OCI Beaumont ('OCIB') | Methanol US | 23.0 | 23.0 |
OCI Nitrogen ('OCIN') | Nitrogen Europe | 20.6 | 20.0 |
Total | \u00a0 | 43.6 | 483.0 |
The goodwill associated with EFC is included in the balance of assets held for sale presented in 2023. Further information is included in note 22.
\nThe determination of the recoverable amounts for the cash generating units requires significant judgments and estimates, including projections of future cash flows from the businesses. The recoverable amounts have been estimated based on value in use.
\nThe tests were carried out by discounting future cash flows to be generated from the continuing use of the cash-generating units to which the goodwill applies and on the assumption of an indefinite life. Key assumptions used in the calculation of recoverable amounts are the discount rate, the terminal value growth rate, selling price outlook per product, natural gas prices and the number of expected operating days per plant. The terminal growth rate was determined based on the compound annual growth rate ('CAGR') for the fertilizer industry. The discount rate is estimated based on the capital asset pricing model and adjusted to derive a pre-tax measure. Selling price and natural gas price assumptions are based on a published independent price outlook prepared by global experts. The other assumptions used are based on past experiences and external sources, however these assumptions are unpredictable and inherently uncertain.
\nThe impairment tests are based on specific estimates for cash flow projections for the years 2024 to 2028 (this period captures the cyclical nature of the industry). For the subsequent years, the residual values were calculated based on the average EBITDA margin of the last two years of the projection period and whereby a perpetual growth rate of 2023 was used. The estimated cash flows are discounted using a present value technique.
\nThe following rates were applied in performing the impairment test in 2023:
\nEntity | Percentage | 2023 |
|---|---|---|
OCIB | Pre-tax discount rate | 10.71% |
OCIB | Perpetual growth rate | 2.95% |
OCIN | Pre-tax discount rate | 10.64% |
OCIN | Perpetual growth rate | 2.95% |
The material balance of goodwill in 2022 related to EFC. As at 31 December 2023, EFC is included in the Fertiglobe disposal group classified as held for sale. Reference is made to note 22. The following rates were applied in performing the impairment test of EFC in 2022:
\nEntity | Percentage | 2022 |
|---|---|---|
EFC | Pre-tax discount rate | 19.85% |
EFC | Perpetual growth rate | 4.08% |
For all cash generating units, their recoverable amounts significantly exceed their carrying amounts. No reasonably possible change in a key assumption would cause a cash generating unit\u2019s carrying amount to exceed its recoverable amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-548": { "value": "\n$ millions | Goodwill | Licences and trademarks | Other intangible assets | Under construction | Total |
|---|---|---|---|---|---|
Cost | 1,807.1 | 74.0 | 6.5 | - | 1,887.6 |
Accumulated amortization and impairment | (1,322.9) | (74.0) | (5.0) | - | (1,401.9) |
At 1 January 2022 | 484.2 | - | 1.5 | - | 485.7 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | - | - | - | 6.4 | 6.4 |
Reclassification | - | - | - | 1.1 | 1.1 |
Amortization | - | - | (0.3) | - | (0.3) |
Movement in exchange rates | (1.2) | - | (0.2) | - | (1.4) |
At 31 December 2022 | 483.0 | - | 1.0 | 7.5 | 491.5 |
Cost | 1,805.9 | 70.7 | 6.3 | 7.5 | 1,890.4 |
Accumulated amortization and impairment | (1,322.9) | (70.7) | (5.3) | - | (1,398.9) |
At 31 December 2022 | 483.0 | - | 1.0 | 7.5 | 491.5 |
Movements in carrying amount: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions | - | - | 0.3 | 17.5 | 17.8 |
Disposals | - | - | - | (0.5) | (0.5) |
Transfers | - | - | 16.7 | (16.7) | - |
Amortization | - | - | (2.0) | - | (2.0) |
Reclassified to assets held for sale | (440.0) | - | (6.7) | (3.0) | (449.7) |
Movement in exchange rates | 0.6 | - | 0.2 | 0.2 | 1.0 |
At 31 December 2023 | 43.6 | - | 9.5 | 5.0 | 58.1 |
Cost | 1,366.5 | - | 16.5 | 5.0 | 1,388.0 |
Accumulated amortization and impairment | (1,322.9) | - | (7.0) | - | (1,329.9) |
At 31 December 2023 | 43.6 | -1 | 9.5 | 5.0 | 58.1 |
Goodwill held for use has been allocated to the cash generating units as follows:
\nCash generating units | Reporting segment | 2023 | 2022 |
|---|---|---|---|
Egyptian Fertilizers Company ('EFC') | Fertiglobe | - | 440.0 |
OCI Beaumont ('OCIB') | Methanol US | 23.0 | 23.0 |
OCI Nitrogen ('OCIN') | Nitrogen Europe | 20.6 | 20.0 |
Total | \u00a0 | 43.6 | 483.0 |
The goodwill associated with EFC is included in the balance of assets held for sale presented in 2023. Further information is included in note 22.
\nThe determination of the recoverable amounts for the cash generating units requires significant judgments and estimates, including projections of future cash flows from the businesses. The recoverable amounts have been estimated based on value in use.
\nThe tests were carried out by discounting future cash flows to be generated from the continuing use of the cash-generating units to which the goodwill applies and on the assumption of an indefinite life. Key assumptions used in the calculation of recoverable amounts are the discount rate, the terminal value growth rate, selling price outlook per product, natural gas prices and the number of expected operating days per plant. The terminal growth rate was determined based on the compound annual growth rate ('CAGR') for the fertilizer industry. The discount rate is estimated based on the capital asset pricing model and adjusted to derive a pre-tax measure. Selling price and natural gas price assumptions are based on a published independent price outlook prepared by global experts. The other assumptions used are based on past experiences and external sources, however these assumptions are unpredictable and inherently uncertain.
\nThe impairment tests are based on specific estimates for cash flow projections for the years 2024 to 2028 (this period captures the cyclical nature of the industry). For the subsequent years, the residual values were calculated based on the average EBITDA margin of the last two years of the projection period and whereby a perpetual growth rate of 2023 was used. The estimated cash flows are discounted using a present value technique.
\nThe following rates were applied in performing the impairment test in 2023:
\nEntity | Percentage | 2023 |
|---|---|---|
OCIB | Pre-tax discount rate | 10.71% |
OCIB | Perpetual growth rate | 2.95% |
OCIN | Pre-tax discount rate | 10.64% |
OCIN | Perpetual growth rate | 2.95% |
The material balance of goodwill in 2022 related to EFC. As at 31 December 2023, EFC is included in the Fertiglobe disposal group classified as held for sale. Reference is made to note 22. The following rates were applied in performing the impairment test of EFC in 2022:
\nEntity | Percentage | 2022 |
|---|---|---|
EFC | Pre-tax discount rate | 19.85% |
EFC | Perpetual growth rate | 4.08% |
For all cash generating units, their recoverable amounts significantly exceed their carrying amounts. No reasonably possible change in a key assumption would cause a cash generating unit\u2019s carrying amount to exceed its recoverable amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-549": { "value": "\nThe determination of the recoverable amounts for the cash generating units requires significant judgments and estimates, including projections of future cash flows from the businesses. The recoverable amounts have been estimated based on value in use.
\nThe tests were carried out by discounting future cash flows to be generated from the continuing use of the cash-generating units to which the goodwill applies and on the assumption of an indefinite life. Key assumptions used in the calculation of recoverable amounts are the discount rate, the terminal value growth rate, selling price outlook per product, natural gas prices and the number of expected operating days per plant. The terminal growth rate was determined based on the compound annual growth rate ('CAGR') for the fertilizer industry. The discount rate is estimated based on the capital asset pricing model and adjusted to derive a pre-tax measure. Selling price and natural gas price assumptions are based on a published independent price outlook prepared by global experts. The other assumptions used are based on past experiences and external sources, however these assumptions are unpredictable and inherently uncertain.
\nThe impairment tests are based on specific estimates for cash flow projections for the years 2024 to 2028 (this period captures the cyclical nature of the industry). For the subsequent years, the residual values were calculated based on the average EBITDA margin of the last two years of the projection period and whereby a perpetual growth rate of 2023 was used. The estimated cash flows are discounted using a present value technique.
\nThe following rates were applied in performing the impairment test in 2023:
\nEntity | Percentage | 2023 |
|---|---|---|
OCIB | Pre-tax discount rate | 10.71% |
OCIB | Perpetual growth rate | 2.95% |
OCIN | Pre-tax discount rate | 10.64% |
OCIN | Perpetual growth rate | 2.95% |
The material balance of goodwill in 2022 related to EFC. As at 31 December 2023, EFC is included in the Fertiglobe disposal group classified as held for sale. Reference is made to note 22. The following rates were applied in performing the impairment test of EFC in 2022:
\nEntity | Percentage | 2022 |
|---|---|---|
EFC | Pre-tax discount rate | 19.85% |
EFC | Perpetual growth rate | 4.08% |
For all cash generating units, their recoverable amounts significantly exceed their carrying amounts. No reasonably possible change in a key assumption would cause a cash generating unit\u2019s carrying amount to exceed its recoverable amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-551": { "value": "\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Trade receivables (net) | \u00a0 | 184.2 | 500.7 |
Loans and trade receivables due from related parties | (31) | 2.3 | 25.8 |
Prepayments | \u00a0 | 69.7 | 135.0 |
Other tax receivables | \u00a0 | 12.5 | 102.4 |
Supplier advance payments | \u00a0 | 6.3 | 39.0 |
Commodity and natural gas derivatives | \u00a0 | 1.6 | 18.7 |
EUA derivatives | \u00a0 | - | 0.4 |
Foreign currency derivatives | \u00a0 | 1.3 | 3.8 |
Margin call deposits | (6.3) | 84.4 | - |
Other receivables | \u00a0 | 33.8 | 56.1 |
Total | \u00a0 | 396.1 | 881.9 |
Non-current | \u00a0 | 30.6 | 61.7 |
Current | \u00a0 | 365.5 | 820.2 |
Total | \u00a0 | 396.1 | 881.9 |
The Group is party to a securitization agreement to sell certain trade receivables to an external financial institution. By doing so, the Group is able to receive cash flows from selected debtors sooner than would normally be the case.
\nUpon transfer of the balances, OCI derecognizes the trade receivables, since substantially all risks and rewards of ownership are transferred. The agreement permits securitization of trade receivables up to USD 331.2 million (EUR 300.0 million) (2022: USD 428.4 million / EUR 400.0 million). As per 31 December 2023 an amount of USD 202.0 million (EUR 183.0 million) (2022: USD 275.4 million / EUR 257.1 million) of trade receivables had been transferred. The transferred trade receivables are pledged as security under the securitization program. The Group's continuing operations incurred expenses of USD 10.0 million (2022: USD 5.0 million) in connection with the securitization program.
\nThe carrying amount of \u2018Trade and other receivables\u2019 as at 31 December 2023 approximates its fair value.
\nThe aging of current trade receivables at the reporting date were as follows:
\n$ millions | \u00a0 | 2023 | 2022 |
|---|---|---|---|
Neither past due nor impaired | \u00a0 | 171.3 | 480.9 |
Past due 1 - 30 days | \u00a0 | 11.5 | 16.3 |
Past due 31 - 90 days | \u00a0 | 1.0 | 1.7 |
Past due 91 - 360 days | \u00a0 | 0.4 | 1.5 |
More than 360 days | \u00a0 | - | 0.3 |
Total | \u00a0 | 184.2 | 500.7 |
Management believes that the unimpaired amounts that are past due by more than 30 days (USD 1.4 million) are collectible in full, based on historic payment behavior and extensive analysis of customer credit risk, including underlying customers\u2019 credit ratings if they are available. The Group has not recognized any allowance for trade receivables.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-552": { "value": "\nThe following table shows the movements in the carrying amount of the Group\u2019s associates and joint ventures:
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | 522.3 | 494.9 |
Share in income | (100.9) | 21.7 |
Transfer to assets held for sale | (18.2) | - |
Dividends | (1.2) | (1.8) |
Other comprehensive income | (3.5) | 9.7 |
Effect of movement in exchange rates | 1.0 | (2.2) |
At 31 December | 399.5 | 522.3 |
Joint ventures | 0.6 | 1.2 |
Associates | 398.9 | 521.1 |
Total | 399.5 | 522.3 |
There are no material associates or joint ventures included as part of assets held for sale.
\nThe Group has interests in the following associates and joint ventures:
\nName | Type | Participation via | Country | Participation |
|---|---|---|---|---|
Firewater LLC (Natgasoline LLC) | Associate | Firewater B.V. | United States | 50.0% |
Rainbow Holdco B.V. | Associate | OCI Nitrogen B.V. | The Netherlands | 43.0% |
OCI Nitrogen Iberian Company | Joint venture | OCI Nitrogen B.V. | Spain | 50.0% |
The following table summarizes the financial information of the Group\u2019s associates and joint ventures (on a 100% basis):
\n| \u00a0 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
$ millions | Associates | Joint ventures | Total | Associates | Joint ventures | Total |
Non-current assets | 1,751.2 | 1.8 | 1,753.0 | 2,041.4 | - | 2,041.4 |
Current assets | 171.5 | (2.0) | 169.5 | 457.1 | 33.7 | 490.8 |
Non-current liabilities | (1,031.2) | - | (1,031.2) | (1,115.1) | (5.5) | (1,120.6) |
Current liabilities | (82.5) | (2.6) | (85.1) | (294.1) | (25.7) | (319.8) |
Net assets | 809.0 | (2.8) | 806.2 | 1,089.3 | 2.5 | 1,091.8 |
Income | 330.8 | 6.6 | 337.4 | 1,109.6 | 43.4 | 1,153.0 |
Expenses | (537.9) | (6.4) | (544.3) | (1,060.8) | (43.1) | (1,103.9) |
Net profit | (207.1) | 0.2 | (206.9) | 48.8 | 0.3 | 49.1 |
Associates and joint ventures in the Group have no profit from discontinued operations nor other comprehensive income.
\nThe following chart summarizes the financial information of significant associates (on a 100% basis):
\n| \u00a0 | Firewater LLC | |
|---|---|---|
$ millions | 2023 | 2022 |
Non-current assets | 1,670.6 | 1,846.4 |
Current assets (excluding cash and cash equivalents) | 127.3 | 190.4 |
Cash and cash equivalents | 44.2 | 60.5 |
Non-current liabilities | (1,031.2) | (1,051.6) |
Current liabilities | (82.4) | (95.7) |
Net assets | 728.5 | 950.0 |
Group's share of net assets | 364.2 | 475.0 |
Revenues | 323.3 | 518.2 |
Depreciation | (190.1) | (153.9) |
Interest income | 3.1 | 0.8 |
Interest expense | (69.7) | (61.5) |
Profit / (loss) before taxes | (214.8) | 32.0 |
Tax expense | 0.2 | (8.5) |
Profit / (loss) after taxes | (214.6) | 23.5 |
Other comprehensive income | (7.0) | 19.4 |
Total comprehensive income | (221.6) | 42.9 |
Group's share in total comprehensive income | (110.8) | 22.8 |
Dividends | - | - |
Included in the associates is Firewater LLC, the holding company of Natgasoline LLC, which is a methanol plant in Texas USA.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-553": { "value": "\nThe following table shows the movements in the carrying amount of the Group\u2019s associates and joint ventures:
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | 522.3 | 494.9 |
Share in income | (100.9) | 21.7 |
Transfer to assets held for sale | (18.2) | - |
Dividends | (1.2) | (1.8) |
Other comprehensive income | (3.5) | 9.7 |
Effect of movement in exchange rates | 1.0 | (2.2) |
At 31 December | 399.5 | 522.3 |
Joint ventures | 0.6 | 1.2 |
Associates | 398.9 | 521.1 |
Total | 399.5 | 522.3 |
There are no material associates or joint ventures included as part of assets held for sale.
\nThe Group has interests in the following associates and joint ventures:
\nName | Type | Participation via | Country | Participation |
|---|---|---|---|---|
Firewater LLC (Natgasoline LLC) | Associate | Firewater B.V. | United States | 50.0% |
Rainbow Holdco B.V. | Associate | OCI Nitrogen B.V. | The Netherlands | 43.0% |
OCI Nitrogen Iberian Company | Joint venture | OCI Nitrogen B.V. | Spain | 50.0% |
The following table summarizes the financial information of the Group\u2019s associates and joint ventures (on a 100% basis):
\n| \u00a0 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
$ millions | Associates | Joint ventures | Total | Associates | Joint ventures | Total |
Non-current assets | 1,751.2 | 1.8 | 1,753.0 | 2,041.4 | - | 2,041.4 |
Current assets | 171.5 | (2.0) | 169.5 | 457.1 | 33.7 | 490.8 |
Non-current liabilities | (1,031.2) | - | (1,031.2) | (1,115.1) | (5.5) | (1,120.6) |
Current liabilities | (82.5) | (2.6) | (85.1) | (294.1) | (25.7) | (319.8) |
Net assets | 809.0 | (2.8) | 806.2 | 1,089.3 | 2.5 | 1,091.8 |
Income | 330.8 | 6.6 | 337.4 | 1,109.6 | 43.4 | 1,153.0 |
Expenses | (537.9) | (6.4) | (544.3) | (1,060.8) | (43.1) | (1,103.9) |
Net profit | (207.1) | 0.2 | (206.9) | 48.8 | 0.3 | 49.1 |
Associates and joint ventures in the Group have no profit from discontinued operations nor other comprehensive income.
\nThe following chart summarizes the financial information of significant associates (on a 100% basis):
\n| \u00a0 | Firewater LLC | |
|---|---|---|
$ millions | 2023 | 2022 |
Non-current assets | 1,670.6 | 1,846.4 |
Current assets (excluding cash and cash equivalents) | 127.3 | 190.4 |
Cash and cash equivalents | 44.2 | 60.5 |
Non-current liabilities | (1,031.2) | (1,051.6) |
Current liabilities | (82.4) | (95.7) |
Net assets | 728.5 | 950.0 |
Group's share of net assets | 364.2 | 475.0 |
Revenues | 323.3 | 518.2 |
Depreciation | (190.1) | (153.9) |
Interest income | 3.1 | 0.8 |
Interest expense | (69.7) | (61.5) |
Profit / (loss) before taxes | (214.8) | 32.0 |
Tax expense | 0.2 | (8.5) |
Profit / (loss) after taxes | (214.6) | 23.5 |
Other comprehensive income | (7.0) | 19.4 |
Total comprehensive income | (221.6) | 42.9 |
Group's share in total comprehensive income | (110.8) | 22.8 |
Dividends | - | - |
Included in the associates is Firewater LLC, the holding company of Natgasoline LLC, which is a methanol plant in Texas USA.
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-554": { "value": "\nThe following table shows the movements in the carrying amount of the Group\u2019s associates and joint ventures:
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | 522.3 | 494.9 |
Share in income | (100.9) | 21.7 |
Transfer to assets held for sale | (18.2) | - |
Dividends | (1.2) | (1.8) |
Other comprehensive income | (3.5) | 9.7 |
Effect of movement in exchange rates | 1.0 | (2.2) |
At 31 December | 399.5 | 522.3 |
Joint ventures | 0.6 | 1.2 |
Associates | 398.9 | 521.1 |
Total | 399.5 | 522.3 |
There are no material associates or joint ventures included as part of assets held for sale.
\nThe Group has interests in the following associates and joint ventures:
\nName | Type | Participation via | Country | Participation |
|---|---|---|---|---|
Firewater LLC (Natgasoline LLC) | Associate | Firewater B.V. | United States | 50.0% |
Rainbow Holdco B.V. | Associate | OCI Nitrogen B.V. | The Netherlands | 43.0% |
OCI Nitrogen Iberian Company | Joint venture | OCI Nitrogen B.V. | Spain | 50.0% |
The following table summarizes the financial information of the Group\u2019s associates and joint ventures (on a 100% basis):
\n| \u00a0 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
$ millions | Associates | Joint ventures | Total | Associates | Joint ventures | Total |
Non-current assets | 1,751.2 | 1.8 | 1,753.0 | 2,041.4 | - | 2,041.4 |
Current assets | 171.5 | (2.0) | 169.5 | 457.1 | 33.7 | 490.8 |
Non-current liabilities | (1,031.2) | - | (1,031.2) | (1,115.1) | (5.5) | (1,120.6) |
Current liabilities | (82.5) | (2.6) | (85.1) | (294.1) | (25.7) | (319.8) |
Net assets | 809.0 | (2.8) | 806.2 | 1,089.3 | 2.5 | 1,091.8 |
Income | 330.8 | 6.6 | 337.4 | 1,109.6 | 43.4 | 1,153.0 |
Expenses | (537.9) | (6.4) | (544.3) | (1,060.8) | (43.1) | (1,103.9) |
Net profit | (207.1) | 0.2 | (206.9) | 48.8 | 0.3 | 49.1 |
Associates and joint ventures in the Group have no profit from discontinued operations nor other comprehensive income.
\nThe following chart summarizes the financial information of significant associates (on a 100% basis):
\n| \u00a0 | Firewater LLC | |
|---|---|---|
$ millions | 2023 | 2022 |
Non-current assets | 1,670.6 | 1,846.4 |
Current assets (excluding cash and cash equivalents) | 127.3 | 190.4 |
Cash and cash equivalents | 44.2 | 60.5 |
Non-current liabilities | (1,031.2) | (1,051.6) |
Current liabilities | (82.4) | (95.7) |
Net assets | 728.5 | 950.0 |
Group's share of net assets | 364.2 | 475.0 |
Revenues | 323.3 | 518.2 |
Depreciation | (190.1) | (153.9) |
Interest income | 3.1 | 0.8 |
Interest expense | (69.7) | (61.5) |
Profit / (loss) before taxes | (214.8) | 32.0 |
Tax expense | 0.2 | (8.5) |
Profit / (loss) after taxes | (214.6) | 23.5 |
Other comprehensive income | (7.0) | 19.4 |
Total comprehensive income | (221.6) | 42.9 |
Group's share in total comprehensive income | (110.8) | 22.8 |
Dividends | - | - |
Included in the associates is Firewater LLC, the holding company of Natgasoline LLC, which is a methanol plant in Texas USA.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-555": { "value": "\nThe 2022 figures in the note below have been re-presented to disclose information about income tax expenses related to continuing operations.
\n$ millions | 2023 | 2022 |
|---|---|---|
Current tax | (7.6) | (22.6) |
Deferred tax | 83.8 | (24.7) |
Total income tax reported in profit or loss | 76.2 | (47.3) |
$ millions | 2023 | 2022 |
|---|---|---|
Current year | (3.2) | (23.0) |
Dividend withholding tax | (0.3) | (0.6) |
Changes in estimates relating to prior years | (4.1) | 1.0 |
Income tax expense reported in profit or loss | (7.6) | (22.6) |
$ millions | 2023 | 2022 |
|---|---|---|
Origination and reversal of temporary differences | 42.9 | (52.9) |
Recognition of previously unrecognized tax assets | 40.9 | 28.2 |
Income tax benefit / (expense) reported in profit or loss | 83.8 | (24.7) |
$ millions | 2023 | 2022 |
|---|---|---|
Cash flow hedges, effective portion of changes in fair value | - | 2.5 |
Income tax benefit reported in OCI | - | 2.5 |
OCI\u2019s operations are subject to income taxes in various foreign jurisdictions. The statutory income tax rates for continuing operations vary from 0.0% to 25.8%, which results in a difference between the effective income tax rate and the Netherlands\u2019 statutory income tax rate of 25.8%. Reconciliation of the statutory income tax rate in the Netherlands with the effective income tax rate can be summarized as follows:
\n$ millions | 2023 | % | 2022 | % |
|---|---|---|---|---|
Profit before income tax | (551.2) | \u00a0 | 364.6 | \u00a0 |
Enacted income tax rate in the Netherlands | 25.8% | \u00a0 | 25.8% | \u00a0 |
Income tax expense calculated at the enacted Dutch tax rate | 142.2 | (25.8) | (94.1) | (25.8) |
Effect of tax rates in foreign jurisdictions | (16.5) | 3.0 | 3.7 | 1.0 |
Expenses non-deductible | (41.7) | 7.6 | (5.2) | (1.4) |
Income not subject to tax | 11.5 | (2.1) | 21.0 | 5.8 |
Adjustments prior years | (4.1) | 0.7 | 1.0 | 0.3 |
Change in tax rates | (0.5) | 0.1 | - | - |
Recognition of previously unrecognized tax assets | 21.8 | (4.0) | 28.2 | 7.7 |
Unrecognized tax losses | (35.8) | 6.5 | (1.9) | (0.5) |
Dividend withholding tax | (0.3) | 0.1 | (0.6) | (0.2) |
Other | (0.4) | 0.1 | 0.6 | 0.2 |
Total income tax in profit or loss | 76.2 | (13.8) | (47.3) | (12.9) |
The Group\u2019s consolidated effective tax rate in respect of continuing operations for the period ended 31 December 2023 was 13.8% (2022: 12.9%). Compared to the statutory tax rate applicable in the Netherlands (25.8%) the following elements are the main drivers for the lower effective tax rate of 13.8%:
The main driver for the effective tax rate is the impact of non-deductible expenses. These expenses mainly relate to the Egypt donation expense as well as shareholder costs and non-deductible interest expenses incurred by OCI N.V.
In addition, the effective tax rate is mainly impacted by tax rates of foreign jurisdictions and by unrecognized tax losses incurred in the current period, primarily those incurred by Firewater B.V. The latter impact was partially offset by the utilization of previously unrecognized tax assets by BioMCN.
During 2022 and 2023, a portion of BioMCN's property plant and equipment was impaired for tax purposes, thereby reversing a deductible temporary difference related to these assets. This tax benefit was offset against current year taxable income of BioMCN.
\nOn 20 December 2021, the jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (\u2018OECD BEPS\u2019) released the so-called Pillar Two Model Rules (also referred to as the \u201cAnti Global Base Erosion\u201d or \u201cGloBE\u201d Rules) which are designed to ensure that large multinational enterprises ('MNE's) pay a minimum level of tax of 15% on the aggregated qualifying income arising in each jurisdiction where they operate (\u2018Pillar Two\u2019). On 15 December 2022, the EU Member States unanimously adopted an EU directive ensuring a global minimum level of taxation and agreed to apply these rules for fiscal years starting on or after 31 December 2023. A taxpayer will fall within the scope of Pillar Two if it has foreign presence, more than EUR 750 million in consolidated revenues and is not listed as an out-of-scope entity.
\nA qualifying taxpayer calculates its effective tax rate for the aggregated activities in each jurisdiction where it operates and pays top-up tax for the difference between its effective tax rate per jurisdiction and the global minimum tax rate of 15%. Any resulting top-up tax is generally charged in the jurisdiction of the ultimate parent of the MNE (OCI N.V.).
\nOCI operates in the Netherlands, which has enacted new legislation to implement the global minimum top-up tax as per 1 January 2024. However, since the newly enacted tax legislation in the Netherlands in only effective from 1 January 2024, there is no current tax impact for the year ended 31 December 2023.
\nThe continuing operations of OCI N.V. are not at risk for the top-up tax since the effective tax rate in all jurisdictions included in continuing operations exceeds 15%. For the impact of the Pillar Two Rules on discontinued operations we refer to note 22 Discontinued operations and assets & liabilities held for sale.
\nChanges in deferred tax asset and liabilities (net):
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | (404.0) | (406.7) |
Profit or loss | 38.8 | (172.3) |
Reclassification to current income tax payable | - | 183.0 |
Effect of movement in exchange rates (recognized in equity) | 4.1 | (8.0) |
Reclassification to assets/liabilities classified as held for sale | 353.8 | - |
At 31 December | (7.3) | (404.0) |
Recognized deferred tax assets and liabilities:
\n| \u00a0 | Assets | Liabilities | Net | |||
|---|---|---|---|---|---|---|
$ millions | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Intangible assets | 3.1 | 63.8 | (0.4) | (63.0) | 2.7 | 0.8 |
Property, plant and equipment | - | - | (109.0) | (650.8) | (109.0) | (650.8) |
Inventory | 0.4 | 13.2 | (5.3) | (16.8) | (4.9) | (3.6) |
Investment in partnership | 2.0 | - | - | - | 2.0 | - |
Trade and other receivables | 0.3 | 0.5 | (0.6) | (0.4) | (0.3) | 0.1 |
Loans and borrowings | 45.8 | 47.9 | - | 6.4 | 45.8 | 54.3 |
Trade and other payables | 9.4 | 23.4 | - | (13.9) | 9.4 | 9.5 |
Uncertain tax positions | - | - | - | (14.3) | - | (14.3) |
Undistributed earnings | - | - | (0.6) | (24.5) | (0.6) | (24.5) |
Operating losses carry forward and tax credits | 47.6 | 224.5 | - | - | 47.6 | 224.5 |
At 31 December | 108.6 | 373.3 | (115.9) | (777.3) | (7.3) | (404.0) |
Netting of fiscal positions | (101.7) | (292.0) | 101.7 | 292.0 | - | - |
Amounts recognized in the Statement of Financial Position | 6.9 | 81.3 | (14.2) | (485.3) | (7.3) | (404.0) |
Deferred tax liabilities recognized in relation to property, plant and equipment will be realized over the depreciation period of the related asset, and mainly relate to OCIB (USD 60.4\u00a0million) and OCIN (USD 29.1\u00a0million). The deferred tax assets related to loans and borrowings are mainly related to lease liabilities.
\nThe deferred tax liability \u2018undistributed earnings\u2019 relates to income tax consequences of undistributed earnings of subsidiaries and associates that will reverse in the foreseeable future. The Company does not anticipate any other income tax consequences resulting from the undistributed earnings of subsidiaries and associates.
\nDeferred tax assets relate to temporary differences, tax credits and tax losses carry forwards. The Company has net tax losses carry forward and tax credits totaling USD 104.5 million, for which an amount of USD 56.9 million has not been recognized. The losses carry forward mainly relate to the US operations.
\nThe group is subject to the application of complex tax laws in multiple jurisdictions. Application of these complex tax laws may lead to uncertainties in determining tax positions. We aim to resolve these uncertainties in discussions with the tax authorities. The financial effect of the existing uncertainties per balance sheet date are determined in accordance with IAS 12 and IFRIC 23, which requires us to estimate the potential outcome of any tax position. Our estimate for the potential outcome of any uncertain tax position is judgmental.
\nAs of 31 December 2023, the continuing operations of the Group had no uncertain tax positions.
\nAs of 31 December 2022, the Group recorded uncertain tax positions to an amount of USD 14.3 million related to taxable profits, which is classified as a deferred tax liability. In total, the Group recorded USD 220.0 million of current uncertain tax positions in 2022. Expected interest and penalties related to uncertain income tax liabilities were accrued for and were included in the uncertain tax positions and in the income tax expense.
\nThe Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience.
\nExpiration scheme of gross unrecognized carry forward tax losses, tax credits and deductible temporary differences:
\n2023 | Less than 1 year | Between 1 and 5 years | Between 5 and 10 years | Between 10 and 15 years | Between 15 and 20 years | Unlimited | Total |
|---|---|---|---|---|---|---|---|
Temporary differences | 6.6 | 25.6 | 31.8 | - | - | - | 64.0 |
Tax losses and credit carry forwards | - | 1.4 | 10.2 | 0.5 | 0.1 | 715.9 | 728.1 |
Unrecognized deferred tax assets | 6.6 | 27.0 | 42.0 | 0.5 | 0.1 | 715.9 | 792.1 |
2022 | Less than 1 year | Between 1 and 5 years | Between 5 and 10 years | Between 10 and 15 years | Between 15 and 20 years | Unlimited | Total |
|---|---|---|---|---|---|---|---|
Temporary differences | 15.5 | 61.9 | 74.7 | - | - | - | 152.1 |
Tax losses and credit carry forwards | 45.2 | 176.0 | 7.8 | - | - | 852.6 | 1,081.6 |
Unrecognized deferred tax assets | 60.7 | 237.9 | 82.5 | - | - | 852.6 | 1,233.7 |
The above unrecognized temporary differences, tax losses and tax credit carry forwards relate to tax jurisdictions in which OCI has suffered a tax loss in the current or a preceding period. Significant judgment is required in determining whether deferred tax assets can be utilized. OCI determines this based on expected taxable profits arising from the reversal of recognized deferred tax liabilities and based on budget, cash flow forecasts and impairment models and the recent history of taxable results. Where utilization is not considered probable, deferred tax assets are not recognized. The above unrecognized temporary differences, tax losses and credit carry forwards mainly stem from our US operations. In addition to the above, OCI N.V. has unrecognized interest deduction carry forwards amounting to USD 224.0 million (2022: USD 183.0 million) with an unlimited carry forward period.
\nChanges in income tax receivables and payables:
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | (246.1) | (68.9) |
Profit or loss | (104.6) | (241.5) |
Changes in estimates relating to prior years | (7.5) | 2.1 |
Other comprehensive income | - | 2.5 |
Payments | 78.4 | 241.9 |
Reversal of uncertain tax positions | - | 3.3 |
Reclassification from deferred tax liabilities (note 12.4) | - | (183.0) |
Effect of movement in exchange rates | 1.2 | (2.5) |
Reclassification to assets/liabilities classified as held for sale | 270.5 | - |
At 31 December | (8.1) | (246.1) |
Income tax receivable | 0.6 | 5.6 |
Income tax payable | (8.7) | (251.7) |
Total | (8.1) | (246.1) |
$ millions | 2023 | 2022 |
|---|---|---|
Origination and reversal of temporary differences | 42.9 | (52.9) |
Recognition of previously unrecognized tax assets | 40.9 | 28.2 |
Income tax benefit / (expense) reported in profit or loss | 83.8 | (24.7) |
Changes in deferred tax asset and liabilities (net):
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | (404.0) | (406.7) |
Profit or loss | 38.8 | (172.3) |
Reclassification to current income tax payable | - | 183.0 |
Effect of movement in exchange rates (recognized in equity) | 4.1 | (8.0) |
Reclassification to assets/liabilities classified as held for sale | 353.8 | - |
At 31 December | (7.3) | (404.0) |
Recognized deferred tax assets and liabilities:
\n| \u00a0 | Assets | Liabilities | Net | |||
|---|---|---|---|---|---|---|
$ millions | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Intangible assets | 3.1 | 63.8 | (0.4) | (63.0) | 2.7 | 0.8 |
Property, plant and equipment | - | - | (109.0) | (650.8) | (109.0) | (650.8) |
Inventory | 0.4 | 13.2 | (5.3) | (16.8) | (4.9) | (3.6) |
Investment in partnership | 2.0 | - | - | - | 2.0 | - |
Trade and other receivables | 0.3 | 0.5 | (0.6) | (0.4) | (0.3) | 0.1 |
Loans and borrowings | 45.8 | 47.9 | - | 6.4 | 45.8 | 54.3 |
Trade and other payables | 9.4 | 23.4 | - | (13.9) | 9.4 | 9.5 |
Uncertain tax positions | - | - | - | (14.3) | - | (14.3) |
Undistributed earnings | - | - | (0.6) | (24.5) | (0.6) | (24.5) |
Operating losses carry forward and tax credits | 47.6 | 224.5 | - | - | 47.6 | 224.5 |
At 31 December | 108.6 | 373.3 | (115.9) | (777.3) | (7.3) | (404.0) |
Netting of fiscal positions | (101.7) | (292.0) | 101.7 | 292.0 | - | - |
Amounts recognized in the Statement of Financial Position | 6.9 | 81.3 | (14.2) | (485.3) | (7.3) | (404.0) |
Deferred tax liabilities recognized in relation to property, plant and equipment will be realized over the depreciation period of the related asset, and mainly relate to OCIB (USD 60.4\u00a0million) and OCIN (USD 29.1\u00a0million). The deferred tax assets related to loans and borrowings are mainly related to lease liabilities.
\nThe deferred tax liability \u2018undistributed earnings\u2019 relates to income tax consequences of undistributed earnings of subsidiaries and associates that will reverse in the foreseeable future. The Company does not anticipate any other income tax consequences resulting from the undistributed earnings of subsidiaries and associates.
\nDeferred tax assets relate to temporary differences, tax credits and tax losses carry forwards. The Company has net tax losses carry forward and tax credits totaling USD 104.5 million, for which an amount of USD 56.9 million has not been recognized. The losses carry forward mainly relate to the US operations.
\nThe group is subject to the application of complex tax laws in multiple jurisdictions. Application of these complex tax laws may lead to uncertainties in determining tax positions. We aim to resolve these uncertainties in discussions with the tax authorities. The financial effect of the existing uncertainties per balance sheet date are determined in accordance with IAS 12 and IFRIC 23, which requires us to estimate the potential outcome of any tax position. Our estimate for the potential outcome of any uncertain tax position is judgmental.
\nAs of 31 December 2023, the continuing operations of the Group had no uncertain tax positions.
\nAs of 31 December 2022, the Group recorded uncertain tax positions to an amount of USD 14.3 million related to taxable profits, which is classified as a deferred tax liability. In total, the Group recorded USD 220.0 million of current uncertain tax positions in 2022. Expected interest and penalties related to uncertain income tax liabilities were accrued for and were included in the uncertain tax positions and in the income tax expense.
\nThe Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience.
\nExpiration scheme of gross unrecognized carry forward tax losses, tax credits and deductible temporary differences:
\n2023 | Less than 1 year | Between 1 and 5 years | Between 5 and 10 years | Between 10 and 15 years | Between 15 and 20 years | Unlimited | Total |
|---|---|---|---|---|---|---|---|
Temporary differences | 6.6 | 25.6 | 31.8 | - | - | - | 64.0 |
Tax losses and credit carry forwards | - | 1.4 | 10.2 | 0.5 | 0.1 | 715.9 | 728.1 |
Unrecognized deferred tax assets | 6.6 | 27.0 | 42.0 | 0.5 | 0.1 | 715.9 | 792.1 |
2022 | Less than 1 year | Between 1 and 5 years | Between 5 and 10 years | Between 10 and 15 years | Between 15 and 20 years | Unlimited | Total |
|---|---|---|---|---|---|---|---|
Temporary differences | 15.5 | 61.9 | 74.7 | - | - | - | 152.1 |
Tax losses and credit carry forwards | 45.2 | 176.0 | 7.8 | - | - | 852.6 | 1,081.6 |
Unrecognized deferred tax assets | 60.7 | 237.9 | 82.5 | - | - | 852.6 | 1,233.7 |
The above unrecognized temporary differences, tax losses and tax credit carry forwards relate to tax jurisdictions in which OCI has suffered a tax loss in the current or a preceding period. Significant judgment is required in determining whether deferred tax assets can be utilized. OCI determines this based on expected taxable profits arising from the reversal of recognized deferred tax liabilities and based on budget, cash flow forecasts and impairment models and the recent history of taxable results. Where utilization is not considered probable, deferred tax assets are not recognized. The above unrecognized temporary differences, tax losses and credit carry forwards mainly stem from our US operations. In addition to the above, OCI N.V. has unrecognized interest deduction carry forwards amounting to USD 224.0 million (2022: USD 183.0 million) with an unlimited carry forward period.
\nChanges in income tax receivables and payables:
\n$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | (246.1) | (68.9) |
Profit or loss | (104.6) | (241.5) |
Changes in estimates relating to prior years | (7.5) | 2.1 |
Other comprehensive income | - | 2.5 |
Payments | 78.4 | 241.9 |
Reversal of uncertain tax positions | - | 3.3 |
Reclassification from deferred tax liabilities (note 12.4) | - | (183.0) |
Effect of movement in exchange rates | 1.2 | (2.5) |
Reclassification to assets/liabilities classified as held for sale | 270.5 | - |
At 31 December | (8.1) | (246.1) |
Income tax receivable | 0.6 | 5.6 |
Income tax payable | (8.7) | (251.7) |
Total | (8.1) | (246.1) |
$ millions | 31 December 2023 | 31 December 2022 |
|---|---|---|
Finished goods | 127.3 | 280.6 |
Raw materials and consumables | 2.7 | 25.3 |
Spare parts, fuels and others | 25.9 | 115.5 |
Total | 155.9 | 421.4 |
During 2023, there were no write-downs in continuing operations (2022: USD 9.2 million). During 2023 reversal of write downs amounted to USD 0.8 million (2022: Nil) of which USD 0.4 million relates to spare parts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-559": { "value": "\n$ millions | 2023 | 2022 |
|---|---|---|
Cash on hand | - | 0.1 |
Bank balances | 100.3 | 1,692.1 |
Restricted cash | 56.6 | 24.8 |
Total | 156.9 | 1,717.0 |
Cash held by disposal groups are included as part of assets held for sale. Refer to note 22.
\nThe balance of restricted cash as at 31 December 2023 is made up of USD 55.0 million paid to an escrow account. In 2024 the escrow was released and the funds are no longer restricted.
\nIn 2022, the restricted balances were held as collateral against letters of credit and letters of guarantees issued.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-560": { "value": "\nThe balance of restricted cash as at 31 December 2023 is made up of USD 55.0 million paid to an escrow account. In 2024 the escrow was released and the funds are no longer restricted.
\nIn 2022, the restricted balances were held as collateral against letters of credit and letters of guarantees issued.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-561": { "value": "\nThe movements in the number of shares can be summarized as follows:
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Number of shares at 1 January | 210,712,004 | 210,306,101 |
Number of issued shares | 285,643 | 405,903 |
On issue at 31 December - fully paid | 210,997,647 | 210,712,004 |
Par value per share (in EUR) | 0.02 | 0.02 |
At 31 December (in millions of USD) | 5.6 | 5.6 |
The authorized capital of the Company amounts to EUR 12.0 million. The authorized capital is divided into 600 million shares, with a nominal value of EUR 0.02 each.
\nThe share capital movements relate to the increase and subsequent decrease in the nominal value of the ordinary shares, to facilitate a capital repayment in relation to the distribution. Shareholders received a cash distribution for the repayment of capital of EUR 3.50 per share in 2023 (USD 796.9 million), which was debited from share capital. Shareholders also received a cash distribution of per share in 2023 (USD 194.4 million) which was debited from retained earnings as a dividend distribution to owners of the Company.
An amount of USD 11.2 million related to share-based compensation expense was recognized in retained earnings.
The share capital movements relate to the increase and subsequent decrease in the nominal value of the ordinary shares, to facilitate a capital repayment in relation to the distribution. Shareholders received a cash distribution for the repayment of capital of EUR 3.55 per share in October 2022. In addition, shareholders received a cash distribution of EUR 1.45 per share in June 2022, where they could elect to receive this as either a regular dividend or a repayment of capital. The total distribution to shareholders that was a capital repayment (USD 1,069.1 million) was debited from share capital. The remaining distribution of USD 14.4 million was debited to retained earnings as a dividend distribution to owners of the Company.
The sale of shares in the OCI Methanol Group resulted in an increase in retained earnings of USD 221.4 million and an increase in non-controlling interests of USD 7.8 million. Reference is made to note 17.
An amount of USD 9.2 million related to share-based compensation expense was recognized in retained earnings.
The movements in the number of shares can be summarized as follows:
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Number of shares at 1 January | 210,712,004 | 210,306,101 |
Number of issued shares | 285,643 | 405,903 |
On issue at 31 December - fully paid | 210,997,647 | 210,712,004 |
Par value per share (in EUR) | 0.02 | 0.02 |
At 31 December (in millions of USD) | 5.6 | 5.6 |
The authorized capital of the Company amounts to EUR 12.0 million. The authorized capital is divided into 600 million shares, with a nominal value of EUR 0.02 each.
\nThe share capital movements relate to the increase and subsequent decrease in the nominal value of the ordinary shares, to facilitate a capital repayment in relation to the distribution. Shareholders received a cash distribution for the repayment of capital of EUR 3.50 per share in 2023 (USD 796.9 million), which was debited from share capital. Shareholders also received a cash distribution of per share in 2023 (USD 194.4 million) which was debited from retained earnings as a dividend distribution to owners of the Company.
An amount of USD 11.2 million related to share-based compensation expense was recognized in retained earnings.
The share capital movements relate to the increase and subsequent decrease in the nominal value of the ordinary shares, to facilitate a capital repayment in relation to the distribution. Shareholders received a cash distribution for the repayment of capital of EUR 3.55 per share in October 2022. In addition, shareholders received a cash distribution of EUR 1.45 per share in June 2022, where they could elect to receive this as either a regular dividend or a repayment of capital. The total distribution to shareholders that was a capital repayment (USD 1,069.1 million) was debited from share capital. The remaining distribution of USD 14.4 million was debited to retained earnings as a dividend distribution to owners of the Company.
The sale of shares in the OCI Methanol Group resulted in an increase in retained earnings of USD 221.4 million and an increase in non-controlling interests of USD 7.8 million. Reference is made to note 17.
An amount of USD 9.2 million related to share-based compensation expense was recognized in retained earnings.
$ millions | Hedge reserve | Financial assets at fair value through other comprehensive income | Currency translation | Treasury shares | Total |
|---|---|---|---|---|---|
At 1 January 2022 | (11.2) | (17.8) | (344.1) | (10.9) | (384.0) |
Movement in hedge reserve | 19.4 | - | - | - | 19.4 |
Currency translation differences | - | - | (78.0) | 0.8 | (77.2) |
Financial assets at fair value through other comprehensive income | - | - | - | - | - |
Other comprehensive income | 19.4 | - | (78.0) | 0.8 | (57.8) |
Treasury shares sold / delivered | - | - | - | 15.6 | 15.6 |
Treasury shares acquired | - | - | - | (2.0) | (2.0) |
Issuing shares | - | - | - | (14.5) | (14.5) |
At 31 December 2022 | 8.2 | (17.8) | (422.1) | (11.0) | (442.7) |
Movement in hedge reserve | (3.4) | - | - | - | (3.4) |
Currency translation differences | - | - | (6.5) | 0.6 | (5.9) |
Financial assets at fair value through other comprehensive income | - | (3.7) | - | - | (3.7) |
Other comprehensive income | (3.4) | (3.7) | (6.5) | 0.6 | (13.0) |
Treasury shares sold / delivered | - | - | - | 18.6 | 18.6 |
Transfer of loss on disposal of equity investments | - | (5.5) | - | - | (5.5) |
Treasury shares acquired | - | - | - | (6.5) | (6.5) |
Issuing shares | - | - | - | (9.1) | (9.1) |
At 31 December 2023 | 4.8 | (27.0) | (428.6) | (7.4) | (458.2) |
OCI is a company incorporated under Dutch law. In accordance with the Dutch Civil Code, legal reserves have to be established in certain circumstances. The hedging reserve, the financial assets at fair value through other comprehensive income reserve and the currency translation reserve are legal reserves that limit distributions to shareholders to the extent that these reserves individually have a credit balance.
\nThe reserve related to FVOCI instruments is used to record the cumulative change in fair value of financial assets measured at FVOCI. For further information, see note 11.
\nThe currency translation reserve is used to record the cumulative effect of the translation of the Group's consolidated financial statements from its functional currency, EUR, to its presentation currency, USD.
\nDuring the financial year ended 31 December 2023 the company acquired 23,519 shares (2022: 100,651) and sold and delivered out of share-based payment plans 494,663 shares (2022: 54,935).
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Number of shares | 282,827 | 306,346 |
Average carrying value per share (USD) | 26.24 | 35.95 |
Total (in millions USD) | 7.4 | 11.0 |
Foreign exchange effect | - | - |
Total carrying value of treasury shares (in millions of USD) | 7.4 | 11.0 |
$ millions | Hedge reserve | Financial assets at fair value through other comprehensive income | Currency translation | Treasury shares | Total |
|---|---|---|---|---|---|
At 1 January 2022 | (11.2) | (17.8) | (344.1) | (10.9) | (384.0) |
Movement in hedge reserve | 19.4 | - | - | - | 19.4 |
Currency translation differences | - | - | (78.0) | 0.8 | (77.2) |
Financial assets at fair value through other comprehensive income | - | - | - | - | - |
Other comprehensive income | 19.4 | - | (78.0) | 0.8 | (57.8) |
Treasury shares sold / delivered | - | - | - | 15.6 | 15.6 |
Treasury shares acquired | - | - | - | (2.0) | (2.0) |
Issuing shares | - | - | - | (14.5) | (14.5) |
At 31 December 2022 | 8.2 | (17.8) | (422.1) | (11.0) | (442.7) |
Movement in hedge reserve | (3.4) | - | - | - | (3.4) |
Currency translation differences | - | - | (6.5) | 0.6 | (5.9) |
Financial assets at fair value through other comprehensive income | - | (3.7) | - | - | (3.7) |
Other comprehensive income | (3.4) | (3.7) | (6.5) | 0.6 | (13.0) |
Treasury shares sold / delivered | - | - | - | 18.6 | 18.6 |
Transfer of loss on disposal of equity investments | - | (5.5) | - | - | (5.5) |
Treasury shares acquired | - | - | - | (6.5) | (6.5) |
Issuing shares | - | - | - | (9.1) | (9.1) |
At 31 December 2023 | 4.8 | (27.0) | (428.6) | (7.4) | (458.2) |
OCI is a company incorporated under Dutch law. In accordance with the Dutch Civil Code, legal reserves have to be established in certain circumstances. The hedging reserve, the financial assets at fair value through other comprehensive income reserve and the currency translation reserve are legal reserves that limit distributions to shareholders to the extent that these reserves individually have a credit balance.
\nThe reserve related to FVOCI instruments is used to record the cumulative change in fair value of financial assets measured at FVOCI. For further information, see note 11.
\nThe currency translation reserve is used to record the cumulative effect of the translation of the Group's consolidated financial statements from its functional currency, EUR, to its presentation currency, USD.
\nDuring the financial year ended 31 December 2023 the company acquired 23,519 shares (2022: 100,651) and sold and delivered out of share-based payment plans 494,663 shares (2022: 54,935).
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Number of shares | 282,827 | 306,346 |
Average carrying value per share (USD) | 26.24 | 35.95 |
Total (in millions USD) | 7.4 | 11.0 |
Foreign exchange effect | - | - |
Total carrying value of treasury shares (in millions of USD) | 7.4 | 11.0 |
During the financial year ended 31 December 2023 the company acquired 23,519 shares (2022: 100,651) and sold and delivered out of share-based payment plans 494,663 shares (2022: 54,935).
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Number of shares | 282,827 | 306,346 |
Average carrying value per share (USD) | 26.24 | 35.95 |
Total (in millions USD) | 7.4 | 11.0 |
Foreign exchange effect | - | - |
Total carrying value of treasury shares (in millions of USD) | 7.4 | 11.0 |
The non-controlling interests in the respective entities can be summarized as follows:
\nThe financial information included below is on a proportionate basis.
\n2023 | Fertil | EFC | EBIC | Sorfert | OCI Methanol Group | Other1 | Total |
|---|---|---|---|---|---|---|---|
Non-controlling interests | 50.00% | 50.06% | 62.50% | 74.51% | 15.00% | - | - |
Non-current assets | 760.7 | 820.4 | 163.7 | 504.3 | 111.3 | 950.9 | 3,311.3 |
Current assets | 118.3 | 314.3 | 53.0 | 235.3 | 238.7 | 2,319.0 | 3,278.6 |
Non-current liabilities | (138.4) | (58.3) | (4.1) | (92.6) | (30.7) | (2,044.5) | (2,368.6) |
Current liabilities | (42.0) | (156.3) | (18.7) | (137.6) | (372.2) | (2,470.6) | (3,197.4) |
Net assets | 698.6 | 920.1 | 193.9 | 509.4 | (52.9) | (1,245.2) | 1,023.9 |
Revenues | 339.5 | 260.6 | 157.3 | 432.2 | 202.9 | 1,702.7 | 3,095.2 |
Profit / (Loss) | 58.7 | 97.4 | 67.5 | 182.5 | (29.4) | (71.2) | 305.5 |
Other comprehensive income | - | - | - | 21.8 | 0.2 | - | 22.0 |
Total comprehensive income | 58.7 | 97.4 | 67.5 | 204.3 | (29.2) | (71.2) | 327.5 |
Dividend cash flows | - | - | (29.2) | (856.5) | (30.6) | (487.5) | (1,403.8) |
2022 | Fertil | EFC | EBIC | Sorfert | OCI Methanol Group | Other1 | Total |
|---|---|---|---|---|---|---|---|
Non-controlling interests | 50.00% | 50.06% | 62.50% | 74.51% | 15.00% | - | - |
Non-current assets | 808.7 | 818.8 | 174.6 | 670.9 | 169.2 | 1,028.3 | 3,670.5 |
Current assets | 141.6 | 209.8 | 66.3 | 827.4 | 189.8 | 1,935.2 | 3,370.1 |
Non-current liabilities | (149.1) | (60.1) | (4.2) | (143.1) | (94.3) | (1,891.9) | (2,342.7) |
Current liabilities | (56.3) | (145.9) | (37.2) | (125.9) | (305.7) | (2,010.9) | (2,681.9) |
Net assets | 744.9 | 822.6 | 199.5 | 1,229.3 | (41.0) | (939.3) | 2,016.0 |
Revenues | 593.5 | 439.4 | 326.9 | 973.5 | 239.7 | 3,502.1 | 6,075.1 |
Profit / (Loss) | 249.9 | 153.0 | 155.2 | 617.6 | 15.3 | (2.1) | 1,188.9 |
Other comprehensive income | - | - | - | 46.7 | 1.4 | - | 48.1 |
Total comprehensive income | 249.9 | 153.0 | 155.2 | 664.3 | 16.7 | (2.1) | 1,237.0 |
Dividend cash flows | - | - | (87.4) | (374.8) | (105.0) | (545.0) | (1,112.2) |
Total dividends declared to non-controlling interests amounted to USD 1,366.3 million (2022: USD 1,056.4 million).
Impact of difference in profit sharing with non-controlling interests: In the partnership agreement of Sorfert between OCI and the partner, a profit-sharing arrangement is agreed, where the other investor will receive a relatively higher portion of dividends in compensation for lower natural gas prices arranged for by the partner, which is recognized in cost of sales. As a result of this agreement, the non-controlling interests increased by USD 46.7 million (2022: USD 318.4 million). The effect of the profit sharing agreement represents the gross amount allocated to the partner. This amount is subsequently diluted by the other non-controlling interests in Fertiglobe.
In 2022, the sale of shares in the OCI Methanol Group resulted in an increase in non-controlling interests of USD 7.8 million. This balance is made up of initial recognition of the non-controlling interest of USD 135.2 million, adjusted for the effect of the earn-out consideration and dividend to the non-controlling interests paid accrued during 2022. The Company has agreed with the buyers to a yearly guaranteed dividend for the period 2022-2025.
On 18 February 2022, a 15% stake of the OCI Methanol Group was sold for a total consideration of USD 375.0\u00a0million. As a result of this transaction OCI's share in the OCI Methanol Group decreased from 100% to 85%. The following table summarizes the effect of the transaction on the Company's equity attributable to owners of the Company:
\n$ millions | 2022 |
|---|---|
Proceeds from sale of shares | 375.0 |
Fees related to the sale of shares | (1.3) |
Fair value of earn-out consideration | (17.1) |
Net proceeds from the sale of shares | 356.6 |
Non-controlling interests | 135.2 |
Effect on equity attributable to owners of the Company | 221.4 |
$ millions | 2023 | 2022 |
|---|---|---|
At 1 January | 2,875.7 | 3,800.8 |
Proceeds from loans | 3,770.8 | 1,073.0 |
Repayment / proceeds from bank overdraft facility | 90.4 | (354.8) |
Repayment and redemption of loans and borrowings | (2,115.2) | (1,587.8) |
Newly incurred transaction costs / (bond) premiums | (18.3) | (2.5) |
Amortization of transaction costs / (bond) premiums | 6.0 | 28.1 |
Effect of movement in exchange rates | 56.9 | (81.1) |
Reclassified to liabilities held for sale | (2,508.9) | - |
At end of period | 2,157.4 | 2,875.7 |
Non-current | 1,983.6 | 2,572.3 |
Current | 173.8 | 303.4 |
Total | 2,157.4 | 2,875.7 |
The effect of movement in exchange rates mainly relates to Euro denominated loans, and the impact of Algerian dinar denominated loans before being classified as discontinued operations. These currencies are different from the Group\u2019s presentation currency. Information about the Group\u2019s exposure to interest rate, foreign currency and liquidity risk is disclosed in the financial risk and capital management paragraph in note 6.
\nBorrowing company | Type of loan | Principal amount ($ millions) | Interest rate | Date of maturity | Carrying amount ($ millions)1 | Long-term portion ($ millions) | Short-term portion ($ millions) | Fair value ($ millions) | Collateral / guarantee |
|---|---|---|---|---|---|---|---|---|---|
OCI N.V. | Unsecured senior notes | USD 288.3 | Fixed 4.625% | October 2025 | 287.2 | 287.2 | - | 281.0 | 2 |
| \u00a0 | \u00a0 | EUR 360.0 | Fixed 3.625% | October 2025 | 395.7 | 395.7 | - | 392.8 | \u00a0 |
| \u00a0 | \u00a0 | USD 600.0 | Fixed 6.70% | March 2033 | 593.1 | 593.1 | - | 596.2 | 3 |
OCI N.V. | Unsecured loan facility | USD 1,100.0 | USD: SOFR + 0.85% | April 2027 | 707.6 | 707.6 | - | - | 4 |
OCI N.V. | Bank Overdraft | N/a | N/a | No defined maturity | 52.3 | - | 52.3 | n/a | \u00a0 |
OCI Chemicals B.V. | Bank Overdraft | N/a | N/a | No defined maturity | 39.2 | - | 39.2 | n/a | \u00a0 |
OCIN | Inventory financing | USD 82.3 | EURIBOR +0.85% | No defined maturity | 82.3 | - | 82.3 | 82.3 | 5 |
Total 31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,157.4 | 1,983.6 | 173.8 | N/a | \u00a0 |
Borrowing company | Type of loan | Principal amount ($ millions) | Interest rate | Date of maturity | Carrying amount ($ millions)1 | Long-term portion ($ millions) | Short-term portion ($ millions) | Fair value ($ millions) | Collateral / guarantee |
|---|---|---|---|---|---|---|---|---|---|
Sorfert | Secured loan facility | USD 961.3 | Algerian bank interest rate plus rate of 1.95% | June 2026 | 231.9 | 165.6 | 66.3 | N/a | 2 |
IFCo | Unsecured senior notes | USD 150.0 | Fixed 4.00% | December 2032 | 148.1 | 148.1 | - | 143.7 | 3 |
| \u00a0 | \u00a0 | USD 344.4 | Fixed 5.00% | December 2042 | 349.6 | 349.6 | - | 323.6 | \u00a0 |
| \u00a0 | \u00a0 | USD 344.4 | Fixed 5.00% | December 2050 | 345.4 | 345.4 | - | 322.7 | \u00a0 |
Fertiglobe plc | Unsecured loan facility | USD 1,100.0 | LIBOR + 1.05% | February 2023 (extendable) | 900.0 | 900.0 | - | 900.0 | 4 |
| \u00a0 | \u00a0 | USD 300.0 | SOFR +1.50% | January 2026 | - | - | - | - | \u00a0 |
| \u00a0 | \u00a0 | USD 600.0 | SOFR +1.75% | January 2028 | - | - | - | - | \u00a0 |
Fertiglobe plc | Unsecured loan facility | USD 600.0 | SOFR +1.4% | December 2027 | - | - | - | - | N/a |
OCI N.V. | Unsecured senior notes | USD 288.3 | Fixed 4.625% | October 2025 | 285.8 | 285.8 | - | 273.9 | 5 |
| \u00a0 | \u00a0 | EUR 360.0 | Fixed 3.625% | October 2025 | 384.0 | 384.0 | - | 380.9 | \u00a0 |
OCI N.V. | Unsecured loan facility | USD 1,100.0 | Libor + 0.85% | April 2027 | (6.2) | (6.2) | - | - | 6 |
OCIN | Inventory financing | USD 213.7 | EURIBOR +0.85% | No defined maturity | 213.8 | - | 213.8 | 213.8 | 7 |
FD, FFT | Trade finance facility | USD 95.0 | SOFR + 1.00% | Renewed annually | 23.3 | - | 23.3 | 23.3 | N/a |
FD, FFT, Fertil | Working capital facility | USD 50.0 | LIBOR/EIBOR/SOFR + 1.50% | April 2023 (extendable) | - | - | - | - | 8 |
Total 31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,875.7 | 2,572.3 | 303.4 | N/a | \u00a0 |
Certain loan agreements include financial covenants. The definitions for calculating the financial covenants applicable to the facilities within the Group can be summarized as follows:
Debt Service Coverage Ratio: Income Available (revenue earned less operating expenses) to Debt Service (net finance charges including the capital element of finance leases) or gross profit less change in working capital to interest and principal payments. The financial covenant is applicable to the Fertiglobe plc facilities which are classified as liabilities held for sale.
Debt to Equity Ratio: Gross Debt (current and long-term debt obligations) to total Equity (the sole capital of the borrower). The financial covenant is applicable to the Fertiglobe plc facilities which are classified as liabilities held for sale.
Net Leverage Ratio: the Group\u2019s Net Debt (meaning the aggregate amount of all obligations of the Group, excluding intergroup loans and cash and cash equivalents, but including finance leases) to adjusted EBITDA.
Interest Coverage Ratio: EBITDA, EBIT or Distribution Receipts (cash received by the borrower by way of dividends or repayments of loans) to Finance Charges (meaning finance payments in respect of borrowings including the interest element of finance leases).
As per 31 December 2023 all financial covenants were met.
\nIn the event the respective borrowing companies would not comply with the covenant requirements, in total an amount of USD 712.7 million (2022: USD 1,132.1 million) of the loans would become immediately due. Refer to note 6.2 and note 6.4 for additional discussion of the Company\u2019s liquidity risk and capital management.
\nThe senior secured notes of OCI N.V. Is calculated within fair value hierarchy category of level 1. The fair value of all other loans and facilities is calculated within hierarchy category level 2.
\nReference is made to note 6.2.2 Refinancing activity.
\nProceeds from borrowings in 2023 totaled an amount of USD 3,770.8 million (2022: USD 1,073.0) million, which consisted of net proceeds of the OCI N.V. bonds, drawdown of OCI N.V. Revolving Credit Facility, drawdown of Fertiglobe Term Loan Facility, drawdown of Fertiglobe Revolving Credit Facility and changes in OCIN's inventory financing. Fertiglobe facilities have been reclassified to assets held for sale.
\nRedemptions of borrowings in 2023 totaled an amount of USD 2,115.2 million (2022: USD 1,587.8 million), which consisted of the which consisted of the full repayment of the Bridge Loan Facility at Fertiglobe using the proceeds of the Term Loan Facility, regular installments for borrowings and changes in the outstanding amounts of the revolving credit and trade finance facilities within the Group. Fertiglobe facilities have been reclassified to liabilities held for sale.
\nOn 4 January 2023, Fertiglobe executed the drawdown of USD 900.0 million from the 2022 Term Loan Facility. On 28 November 2023, Fertiglobe executed the drawdown of USD 500.0 million from the 2023 amended and restated term loan. Both the proceeds were directly received by the agent and were used to repay the existing balance under the Revolving Credit facility and Bridge Loan facility respectively. The Bridge Loan Facility is no longer available following this settlement. These are material non-cash transactions in 2023.
\nAs of 31 December 2023, the Group had not drawn external bank facilities in the amount of USD 387.3 million (2022: USD 1,750.0 million). This relates to an external bank facility at OCI N.V. of USD 387.3 million.
\nAs of 31 December 2023, the bank overdraft facility of OCI N.V. amounts to USD 52.3 million (2022: Nil) and OCI Chemicals BV amounts to USD 39.2 million (2022: Nil).
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-569": { "value": "\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Trade payables | \u00a0 | 215.2 | 273.7 |
Trade payables due to related parties | (31) | 48.6 | 142.4 |
Amounts payable under the securitization agreement | \u00a0 | 104.4 | 177.4 |
Dividend liabilities to non-controlling interests | \u00a0 | 70.5 | 102.8 |
Other payables | \u00a0 | 33.6 | 77.8 |
EUA liabilities | (6.3) | - | 36.7 |
Employee benefit liabilities | \u00a0 | 0.2 | 14.1 |
Accrued expenses | \u00a0 | 140.0 | 345.9 |
Accrued interest | \u00a0 | 18.3 | 12.6 |
Customer advance payment / deferred revenue | \u00a0 | 2.0 | 69.1 |
Other tax payable | \u00a0 | 1.8 | 4.5 |
Derivative financial instruments | \u00a0 | 177.9 | 141.4 |
Total | \u00a0 | 812.5 | 1,398.4 |
Non-current | \u00a0 | 141.2 | 114.1 |
Current | \u00a0 | 671.3 | 1,284.3 |
Total | \u00a0 | 812.5 | 1,398.4 |
Information about the Group\u2019s exposure to currency and liquidity risk is included in note 6. The carrying amount of \u2018Trade and other payables\u2019 approximates its fair value. The Group recognized revenue of USD 69.1 million (2022: USD 222.7 million) related to customer advance payments and deferred revenue accrued for as a liability at the beginning of the period.
\nDerivative financial instruments consist of commodity gas hedges contracts in order to hedge future gas price levels. The fair value of these contracts amounts to USD 177.9 million as per 31 December 2023 (2022: USD 141.4 million). All derivatives included in trade and other payables are classified in the fair value hierarchy level 2. For market and commodity risks related to these hedges we refer to note 6.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-570": { "value": "\nDerivative financial instruments consist of commodity gas hedges contracts in order to hedge future gas price levels. The fair value of these contracts amounts to USD 177.9 million as per 31 December 2023 (2022: USD 141.4 million). All derivatives included in trade and other payables are classified in the fair value hierarchy level 2. For market and commodity risks related to these hedges we refer to note 6.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-571": { "value": "\n$ millions | Claims and other provisions, onerous contracts | Donation provision | Total |
|---|---|---|---|
At 1 January 2023 | 67.3 | 76.9 | 144.2 |
Recorded during the year | 24.2 | 50.0 | 74.2 |
Used during the year | (14.6) | (50.0) | (64.6) |
Reversed | (10.6) | (61.7) | (72.3) |
Effect of the movement in exchange rates | (1.7) | (15.2) | (16.9) |
Reclassified to liabilities held for sale | (36.0) | - | (36.0) |
At 31 December 2023 | 28.6 | - | 28.6 |
Non-current | 14.2 | - | 14.2 |
Current | 14.4 | - | 14.4 |
Total | 28.6 | - | 28.6 |
As a consequence of the Fertiglobe IPO, all other shareholders of Fertiglobe plc will be indemnified for the outcome of certain legacy legal exposures. An indemnification asset of USD 29.3 million (2022: USD 28.2 million) was recognized in other receivables as the offsetting criteria are not met.
\nThe Group is involved in various litigations, arbitrations and commercial disputes. In cases where it is probable that the outcome of the legal proceedings and commercial disputes will be unfavorable, and where the financial outcome can be measured reliably, a provision has been recognized. Reference is made to note 29 for detailed information with respect to major ongoing litigations and claims for which no provision has been recognized.
\nIn October 2012, the Egyptian Tax Authority (\u2018ETA\u2019) raised a tax evasion claim against our Egyptian subsidiary, OCI S.A.E. The tax dispute related to the sale of OCI S.A.E.\u2019s cement business to Lafarge SA in 2007. Although OCI S.A.E. and its legal and tax advisors believed that the aforementioned transaction was exempted of tax, management entered into a settlement agreement with the ETA whereby EGP 7.1\u00a0billion would be paid over a 5-year period. The agreement was followed by payment of a first instalment of EGP 2.5\u00a0billion in 2013.
\nSubsequently, the company was exonerated from the tax claim by the Egyptian Public Prosecutor on 18 February 2014 and additionally by the ETA\u2019s Independent Appeals Committee on 4 November 2014. The ETA appealed this decision at the court of first instance. In March 2015, following the decision of the Independent Appeals Committee of 4 November 2014, the ETA reimbursed OCI S.A.E. EGP 1,904\u00a0million. In 2016 OCI S.A.E. was required to pay a second instalment of EGP 900\u00a0million related to the original settlement agreement of 2013. OCI S.A.E. has lodged a reimbursement claim for this amount.
\nOn 23 January 2023, a judgment was issued in favor of OCI S.A.E. rejecting the appeal of the ETA and on 14 May 2023, the judgment has become irrevocable. As a result the EGP 1.9\u00a0billion paid to OCI S.A.E. in 2015 may no longer be reclaimed by the ETA and OCI S.A.E. has a claim of EGP 900\u00a0million against the ETA.
\nOn 13 November 2014 OCI N.V. announced that it would transfer its rights to EGP 2.5\u00a0billion undue paid tax amounts to an Egyptian development fund. Following the guidance under IAS 37 (constructive obligations), the Company has presented the transfer of rights to the fund as a donation provision, which was set at EGP 1.9\u00a0billion representing the amount reimbursed in March 2015.
\nAs part of the demerger of the Engineering and Construction Group that formed Orascom Construction plc (\u2018OC\u2019) in 2015, parties agreed that OCI S.A.E. would retain the reimbursed sum of EGP 1.9\u00a0billion and reimbursement claim of EGP 900\u00a0million to fulfil the constructive obligation upon final verdict of the case. Any excess liabilities and recoveries were agreed to be shared on a 50:50 basis between OCI N.V. and OC.
\nIn June 2023, OCI N.V. entered into an agreement with OC to pay the respective 50% share in the reimbursed sum (USD 26.7\u00a0million paid in July 2023 which is net of prior payments), to assign 50% in the reimbursement claim against the ETA and split the constructive obligation on a 50:50 basis. As a result of this settlement and due to the devaluation of the EGP the donation provision was reduced to USD 30.9\u00a0million.
\nOn 12 September 2023, the OCI N.V. Board approved a donation to be made by OCI N.V., to the Tahya Misr Fund in Egypt, to the amount of USD 50.0\u00a0million.
\nFollowing the OCI N.V. board decision to donate USD 50.0\u00a0million towards the Tahya Misr Fund, the donation provision of OCI S.A.E was released. OCI N.V.\u2019s\u00a0 indemnification liability towards its subsidiary Fertiglobe plc has lapsed.
\nOn 14 September 2023, OCI N.V. made the first payment of USD 25.0\u00a0million to the Tahya Misr Fund. On 2 November 2023, OCI N.V. made the second and final payment of USD 25.0 million to the Tahya Misr Fund.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-572": { "value": "\nOn December 15, 2023, the Group entered into an agreement to sell its 50% + 1 share stake in Fertiglobe PLC to the Abu Dhabi National Oil Company P.J.S.C. (\u201cADNOC\u201d) for a total consideration of USD 3.62 billion. Fertiglobe is presented as its own reportable segment. The transaction is expected to close in 2024.
\nOn December 16, 2023, the Group entered into a binding equity purchase agreement to sell its stake of 100% of the equity interests in Iowa Fertilizer Company LLC (\u201cIFCo\u201d) to Koch Ag & Energy Solutions (\u201cKoch\u201d) for a purchase price consideration of USD 3.60 billion on cash-free, debt-free basis. IFCo is presented as part of the Nitrogen US segment. The transaction is expected to close in 2024.
\nIn the consolidated statement of financial position, the assets and liabilities of Fertiglobe and IFCo are classified as held for sale as at 31 December 2023. The profit or loss and other comprehensive income of Fertiglobe and IFCo are presented separately as discontinued operations in the statement of profit or loss. The comparative consolidated statements of profit or loss and other comprehensive income have been re-presented to show the discontinued operations separately from continuing operations.
\nSubsequent to the date of the agreements and before the year-end date, intra-group transactions occurred between the continuing and discontinued operations. These transaction include the purchases and sales of product in the normal course of business. Intra-group transactions have been eliminated in full in the consolidated financial statements. Management has eliminated these intra-group transactions in either continuing operations or discontinued operations based on the expectation of whether this arrangement will continue subsequent to the disposal. This accounting policy provides information to the users of the financial statements to assess the results of the continuing operation.
\nThe Group incurs overhead charges based on the current structure and scale of the business, including IT and licensing costs, personnel costs, and interest expenses. These stranded costs are presented as continuing operations unless there is a legal agreement for the underlying contracts or activities to transfer to the respective buyer(s) after the sale(s). Management is evaluating opportunities to reduce or eliminate stranded costs after the sale of Fertiglobe and IFCo.
\nThe profit from discontinued operations of USD 388.5 million (2022: USD 2,109.0 million), USD 53.6 million (2022: USD 935.5 million) is attributable to the owners of the company.
\n$ millions | Fertiglobe | IFCo | Total |
|---|---|---|---|
Revenue | 2,303.5 | 755.4 | 3,058.9 |
Cost of sales | (1,438.3) | (716.8) | (2,155.1) |
Results from operating activities | 723.7 | 2.8 | 726.5 |
Income tax | (84.2) | (80.9) | (165.1) |
Profit (loss) from discontinued operations, net of tax | 516.8 | (128.3) | 388.5 |
$ millions | Fertiglobe | IFCo | Total |
|---|---|---|---|
Revenue | 4,633.3 | 1,366.2 | 5,999.5 |
Cost of sales | (2,279.0) | (795.0) | (3,074.0) |
Results from operating activities | 2,188.1 | 550.0 | 2,738.1 |
Income tax | (239.4) | (127.1) | (366.5) |
Profit (loss) from discontinued operations, net of tax | 1,822.8 | 286.2 | 2,109.0 |
The Group is at risk of a top-up tax for the activities held by the Fertiglobe group due to respective source jurisdictions having a potential effective tax rate below 15% as determined under the Pillar Two rules. As the Pillar Two rules allow for a levy by the source jurisdiction under the so-called Qualifying Domestic Minimum Top-up Tax as well as by an intermediate holding jurisdiction under the Partially Owned Parent Entity rules, it remains uncertain in which jurisdiction the top-up tax will need to be remitted as well as based on which ownership percentage. It is expected that in the course of 2024 other relevant jurisdictions will announce further guidance on the implementation of the Pillar Two rules in their respective jurisdictions.
\nIf the top-up tax had applied in 2023, OCI expects to be subject to top-up tax in Algeria, where Sorfert's export activities are exempt, and Egypt, where EBIC operates in a tax free zone. If Pillar Two would have been in effect in FY23, then the profits relating to OCI's activities in Algeria and Egypt that would be subject to Pillar Two would be USD 498.8 million, with an average effective tax rate of 6.78%.
\nThe top-up tax levied in the Netherlands as of 2024 will be based on the indirect ownership of OCI for the period 1 January 2024 up to the moment the transaction closes in 2024. After closing, Fertiglobe would need to re-assess its Pillar II position on a stand-alone basis taking into consideration the tax position of its new majority shareholder ADNOC.
\nThe following assets and liabilities are presented as held for sale as at 31 December 2023:
\n$ millions | Fertiglobe | IFCo | Other1 | Total |
|---|---|---|---|---|
Property, plant and equipment | 2,710.1 | 1,764.6 | - | 4,474.7 |
Right of use assets | 75.2 | 55.8 | - | 131.0 |
Goodwill and other intangible assets | 449.7 | - | - | 449.7 |
Trade and other receivables | 337.0 | 47.1 | - | 384.1 |
Equity-accounted investees | - | - | 18.4 | 18.4 |
Deferred tax assets | 0.3 | 16.8 | - | 17.1 |
Inventories | 130.1 | 58.9 | - | 189.0 |
Cash and cash equivalents | 759.8 | 9.3 | - | 769.1 |
Other assets | 0.9 | - | - | 0.9 |
Total assets of disposal group held for sale | 4,463.1 | 1,952.5 | 18.4 | 6,434.0 |
$ millions | Fertiglobe | IFCo | Other | Total |
|---|---|---|---|---|
Loans and borrowings | 1,665.1 | 843.8 | - | 2,508.9 |
Lease obligations | 90.6 | 57.4 | - | 148.0 |
Trade and other payables | 330.6 | 195.3 | - | 525.9 |
Deferred tax liabilities | 346.6 | 24.3 | - | 370.9 |
Income tax payables | 270.5 | - | - | 270.5 |
Other liabilities | 36.2 | - | - | 36.2 |
Total liabilities of disposal group held for sale | 2,739.6 | 1,120.8 | - | 3,860.4 |
The following table presents the various categories of financial instruments for discontinued operations:
\n31 December 2023 | Loans and receivables / payables at amortized cost | Derivatives at fair value | Financial assets at fair value through other comprehensive income |
|---|---|---|---|
Assets | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | 215.0 | 1.4 | - |
Cash and cash equivalents | 769.1 | - | - |
Total | 984.1 | 1.4 | - |
Liabilities | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | 2,508.9 | - | - |
Trade and other payables | 471.1 | 54.8 | - |
Total | 2,980.0 | 54.8 | - |
Expiration scheme of gross unrecognized carry forward tax losses, tax credits and deductible temporary differences:
\n2023 | Less than 1 year | Between 1 and 5 years | Between 5 and 10 years | Between 10 and 15 years | Between 15 and 20 years | Unlimited | Total |
|---|---|---|---|---|---|---|---|
Tax losses and credit carry forwards | - | - | - | - | - | 76.2 | 76.2 |
Unrecognized deferred tax assets | - | - | - | - | - | 76.2 | 76.2 |
$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Raw materials and consumables and finished goods | \u00a0 | 1,728.2 | 2,928.0 |
Maintenance and repair | \u00a0 | 85.4 | 107.7 |
Employee benefit expenses | (23.2) | 205.0 | 178.7 |
Depreciation, amortization and impairment | \u00a0 | 193.8 | 178.0 |
Consultancy expenses | \u00a0 | 44.7 | 31.4 |
Other | \u00a0 | 59.0 | 29.5 |
Total | \u00a0 | 2,316.1 | 3,453.3 |
Cost of sales | \u00a0 | 2,127.2 | 3,291.4 |
Selling, general and administrative expenses | \u00a0 | 188.9 | 161.9 |
Total | \u00a0 | 2,316.1 | 3,453.3 |
The comparative figures above have been reclassified to include the effects of continuing operations. The depreciation figures above relate only to continuing operations, and not to the depreciation incurred by the Group before disposal groups were classified as held for sale.
\nIn 2023, a gross amount of USD 36.4 million (2022: USD 132.2 million) is recognized in cost of sales related to the sale of excess EUAs.
\n$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Wages and salaries | \u00a0 | 129.0 | 113.4 |
Social securities | \u00a0 | 13.3 | 9.3 |
Employee incentive plans | \u00a0 | 15.4 | 22.5 |
Pension cost | \u00a0 | 16.6 | 14.5 |
Share-based compensation expenses | (23.3) | 11.3 | 9.2 |
Other employee expenses | \u00a0 | 19.4 | 9.8 |
Total | \u00a0 | 205.0 | 178.7 |
During the financial year ended 31 December 2023, the number of key executives was 4 (2022: 4 key executives), which represents the Executive Board members; Nassef Sawiris (Executive Chair), Ahmed El-Hoshy (Chief Executive Officer), Hassan Badrawi (Chief Financial Officer) and Maud de Vries (Chief Legal and Human Capital Officer). During the financial year ended 31 December 2023, the number of total staff employed in the Group amounted to 4,141 employees (2022: 4,059 employees). The number of staff employed in the Netherlands, during the financial year ended 31 December 2023, amounted to 726 employees (2022: 805 employees).
\nOCI has currently award agreements outstanding under four different share-based compensation plans. In 2023 share based compensation awards were granted under the Performance Share Unit Plan for Executive Directors, the Restricted Stock Unit Plan, and the Employee Performance Share Unit Plan. In 2022, a One Off Share Award was granted.
\nThe Performance Share Unit plan, introduced in 2019, comprises of the conditional granting of shares in OCI. Each year a plan with a 3-year vesting period starts. Up to 2021, Total Shareholder Return (\u2018TSR\u2019) was the only performance measure. In 2021, the plan was amended and new performance measures were added. For each Award, starting with the 2021 Award made on 8 February 2021, vesting will be dependent on relative TSR (60% weight) and additional performance measures (40% weight), being operational excellence, decarbonization and diversity & inclusion. The relative TSR performance is measured against a peer group of companies operating in a similar or the same market.
\nBetween 0% and 150% of this award will vest at the end of 3-year performance period based on actual performance. The fair value of these awards has been calculated using a Monte-Carlo simulation model.
\nThe relative TSR ranking that OCI achieves in the peer group and the achievements on the other performance measures determine the definitive number of shares that vest at the end of the vesting period. The shares vested must be retained by the members of the Executive Board for a period of 2 years. The expected volatility is based on the annualized volatility of the historic daily share price return data prior to the grant date over a period equal to the remaining performance period. The fair value of the awards with non-market vesting conditions (40%) is equal to the share price on the grant date since the participants are entitled to dividend equivalents during the vesting period.
\nPerformance Share Units Plan | 2023 Grant | 2022 Grant | 2021 Grant | 2020 Grant |
|---|---|---|---|---|
Conditional shares granted | 210,873 | 170,650 | 230,612 | 316,729 |
Fair value at grant date (EUR) | 3,810,803 | 4,075,463 | 4,065,690 | 4,336,020 |
Weighted average fair value at grant date (EUR per share) | 18.07 | 23.88 | 17.63 | 13.69 |
Vesting period at issuance (years) | 3 | 3 | 3 | 3 |
Risk free interest rate | 3.230% | -0.171% | -0.728% | -0.660% |
Expected share price volatility | 38.8% | 44.3% | 44.2% | 34.5% |
Dividend yield | 0.0% | 0.0% | 0.0% | 0.0% |
Outstanding 31 December 2022 | - | 193,913 | 262,048 | 359,908 |
Vested in 2023 | - | - | - | (359,908)1 |
Expired in 2023 | - | - | - | - |
Dividend equivalent shares2 | 36,339 | 29,423 | 39,798 | - |
Outstanding 31 December 2023 | 247,212 | 223,336 | 301,846 | - |
To reward the exceptional performance of the Executive Directors in 2021, One Off Share Awards were granted to the CEO, CFO and CLHCO. The One Off Share Awards granted on May 25th, 2022 comprise of conditional stock units which each cover the value of one fully paid OCI share. For the purpose of this exceptional One Off Share Award, vesting of the conditional stock units shall not be subject to forward-looking performance conditions. Apart from this, the terms and conditions of the One Off Share Awards are in line with the terms and conditions as set out in the Executive Performance Stock Unit Plan 2019. The One Off Share Awards concern a grant of conditional stock units that will generally vest, subject to the Executive Directors\u2019 continued engagement as an Executive Director of the Company on the date which is the third anniversary of the Date of Grant, with Shares (to the extent applicable, net of tax or following sell-to-cover) being subject to a two-year holding period, in line with the Dutch Corporate Governance Code. The fair value of the One Off Share Awards is equal to OCI\u2019s share price at the grant date since the participants are entitled to dividend equivalents during the vesting period.
\nOne Off Share Award | 2022 Grant |
|---|---|
Conditional shares granted | 49,519 |
Fair value at grant date (EUR) | 1,736,136 |
Fair value at grant date (EUR per share) | 35.06 |
Vesting period at issuance (years) | 3 |
Dividend yield | 0.0% |
Outstanding 31 December 2022 | 56,268 |
Dividend equivalent shares1 | 8,536 |
Outstanding 31 December 2023 | 64,804 |
For the level below the Board, a Restricted Stock Units Plan was implemented in 2019. Executive Directors are not eligible for RSU grants. The Restricted Stock Units Plan comprises the conditional granting of shares in OCI. The total gross entitlement of an eligible employee under the applicable short-term incentive plan will be paid out partly in cash in accordance with the short-term incentive plan and partly in awards in accordance with this RSU plan. Shares will vest for one third of the restricted stock units comprising the award at the second anniversary of the grant date and for two thirds of the restricted stock units comprising the award on the third anniversary of the date of grant subject to still being employed by OCI. The RSU entitles the participants to dividend equivalents.
\nThe fair value of the RSUs awarded is equal to OCI\u2019s share price at the grant date since the participants are entitled to dividend equivalents during the vesting period.
\nRestricted Stock Units Plan | 2023 Grant | 2022 Grant | 2021 Grant | 2020 Grant |
|---|---|---|---|---|
Conditional shares granted | 200,942 | 273,706 | 132,666 | 89,900 |
Fair value at grant date (EUR) | 5,895,419 | 7,762,302 | 2,409,215 | 945,748 |
Fair value at grant date (EUR per share) | 29.34 | 28.36 | 18.16 | 10.52 |
Vesting period at issuance (years) | 3 | 3 | 3 | 3 |
Dividend yield | 0.0% | 0.0% | 0.0% | 0.0% |
Outstanding 31 December 2022 | - | 310,173 | 150,413 | 57,074 |
Forfeited in 2023 | (2,823) | (11,294) | (7,195) | - |
Vested in 2023 | (3,834) | (9,713) | (56,772) | (57,074) |
Initial awards (new joiners) | 18,915 | 4,243 | - | - |
Dividend equivalent shares1 | 34,385 | 45,624 | 13,627 | - |
Outstanding 31 December 2023 | 247,585 | 339,033 | 100,073 | - |
In 2021, the Employee Performance Share Units Plan was introduced for key Employees. The Employee Performance Share Units Plan is similar to the Executive Director Performance Share Units Plan. For the 2021 Award made on 8 February 2021 vesting will be dependent on relative TSR (60% weight) and additional performance measures (40% weight), being operational excellence, decarbonization and diversity & inclusion. Please refer to Executive Director Performance Share Units Plan for further details regarding the vesting conditions and the fair value measurement for the awards made under this plan.
\nEmployee Performance Share Units Plan | 2023 Grant | 2022 Grant | 2021 Grant |
|---|---|---|---|
Conditional shares granted | 38,422 | 12,234 | 14,006 |
Fair value at grant date (EUR) | 694,345 | 292,172 | 246,926 |
Weighted average fair value at grant date (EUR per share) | 18.07 | 23.88 | 17.63 |
Vesting period at issuance (years) | 3 | 3 | 3 |
Risk free interest rate | 3.230% | -0.171% | -0.728% |
Expected share price volatility | 38.8% | 44.3% | 44.2% |
Dividend yield | 0.0% | 0.0% | 0.0% |
Outstanding 31 December 2022 | - | 13,900 | 15,915 |
Vested in 2022 | - | - | - |
Expired in 2023 | - | - | - |
Dividend equivalent shares1 | 6,615 | 2,107 | 2,414 |
Outstanding 31 December 2023 | 45,037 | 16,007 | 18,329 |
$ millions | Note | 2023 | 2022 |
|---|---|---|---|
Wages and salaries | \u00a0 | 129.0 | 113.4 |
Social securities | \u00a0 | 13.3 | 9.3 |
Employee incentive plans | \u00a0 | 15.4 | 22.5 |
Pension cost | \u00a0 | 16.6 | 14.5 |
Share-based compensation expenses | (23.3) | 11.3 | 9.2 |
Other employee expenses | \u00a0 | 19.4 | 9.8 |
Total | \u00a0 | 205.0 | 178.7 |
During the financial year ended 31 December 2023, the number of key executives was 4 (2022: 4 key executives), which represents the Executive Board members; Nassef Sawiris (Executive Chair), Ahmed El-Hoshy (Chief Executive Officer), Hassan Badrawi (Chief Financial Officer) and Maud de Vries (Chief Legal and Human Capital Officer). During the financial year ended 31 December 2023, the number of total staff employed in the Group amounted to 4,141 employees (2022: 4,059 employees). The number of staff employed in the Netherlands, during the financial year ended 31 December 2023, amounted to 726 employees (2022: 805 employees).
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-575": { "value": "\nDuring the financial year ended 31 December 2023, the number of key executives was 4 (2022: 4 key executives), which represents the Executive Board members; Nassef Sawiris (Executive Chair), Ahmed El-Hoshy (Chief Executive Officer), Hassan Badrawi (Chief Financial Officer) and Maud de Vries (Chief Legal and Human Capital Officer). During the financial year ended 31 December 2023, the number of total staff employed in the Group amounted to 4,141 employees (2022: 4,059 employees). The number of staff employed in the Netherlands, during the financial year ended 31 December 2023, amounted to 726 employees (2022: 805 employees).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-3": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-576": { "value": "\nOCI has currently award agreements outstanding under four different share-based compensation plans. In 2023 share based compensation awards were granted under the Performance Share Unit Plan for Executive Directors, the Restricted Stock Unit Plan, and the Employee Performance Share Unit Plan. In 2022, a One Off Share Award was granted.
\nThe Performance Share Unit plan, introduced in 2019, comprises of the conditional granting of shares in OCI. Each year a plan with a 3-year vesting period starts. Up to 2021, Total Shareholder Return (\u2018TSR\u2019) was the only performance measure. In 2021, the plan was amended and new performance measures were added. For each Award, starting with the 2021 Award made on 8 February 2021, vesting will be dependent on relative TSR (60% weight) and additional performance measures (40% weight), being operational excellence, decarbonization and diversity & inclusion. The relative TSR performance is measured against a peer group of companies operating in a similar or the same market.
\nBetween 0% and 150% of this award will vest at the end of 3-year performance period based on actual performance. The fair value of these awards has been calculated using a Monte-Carlo simulation model.
\nThe relative TSR ranking that OCI achieves in the peer group and the achievements on the other performance measures determine the definitive number of shares that vest at the end of the vesting period. The shares vested must be retained by the members of the Executive Board for a period of 2 years. The expected volatility is based on the annualized volatility of the historic daily share price return data prior to the grant date over a period equal to the remaining performance period. The fair value of the awards with non-market vesting conditions (40%) is equal to the share price on the grant date since the participants are entitled to dividend equivalents during the vesting period.
\nPerformance Share Units Plan | 2023 Grant | 2022 Grant | 2021 Grant | 2020 Grant |
|---|---|---|---|---|
Conditional shares granted | 210,873 | 170,650 | 230,612 | 316,729 |
Fair value at grant date (EUR) | 3,810,803 | 4,075,463 | 4,065,690 | 4,336,020 |
Weighted average fair value at grant date (EUR per share) | 18.07 | 23.88 | 17.63 | 13.69 |
Vesting period at issuance (years) | 3 | 3 | 3 | 3 |
Risk free interest rate | 3.230% | -0.171% | -0.728% | -0.660% |
Expected share price volatility | 38.8% | 44.3% | 44.2% | 34.5% |
Dividend yield | 0.0% | 0.0% | 0.0% | 0.0% |
Outstanding 31 December 2022 | - | 193,913 | 262,048 | 359,908 |
Vested in 2023 | - | - | - | (359,908)1 |
Expired in 2023 | - | - | - | - |
Dividend equivalent shares2 | 36,339 | 29,423 | 39,798 | - |
Outstanding 31 December 2023 | 247,212 | 223,336 | 301,846 | - |
To reward the exceptional performance of the Executive Directors in 2021, One Off Share Awards were granted to the CEO, CFO and CLHCO. The One Off Share Awards granted on May 25th, 2022 comprise of conditional stock units which each cover the value of one fully paid OCI share. For the purpose of this exceptional One Off Share Award, vesting of the conditional stock units shall not be subject to forward-looking performance conditions. Apart from this, the terms and conditions of the One Off Share Awards are in line with the terms and conditions as set out in the Executive Performance Stock Unit Plan 2019. The One Off Share Awards concern a grant of conditional stock units that will generally vest, subject to the Executive Directors\u2019 continued engagement as an Executive Director of the Company on the date which is the third anniversary of the Date of Grant, with Shares (to the extent applicable, net of tax or following sell-to-cover) being subject to a two-year holding period, in line with the Dutch Corporate Governance Code. The fair value of the One Off Share Awards is equal to OCI\u2019s share price at the grant date since the participants are entitled to dividend equivalents during the vesting period.
\nOne Off Share Award | 2022 Grant |
|---|---|
Conditional shares granted | 49,519 |
Fair value at grant date (EUR) | 1,736,136 |
Fair value at grant date (EUR per share) | 35.06 |
Vesting period at issuance (years) | 3 |
Dividend yield | 0.0% |
Outstanding 31 December 2022 | 56,268 |
Dividend equivalent shares1 | 8,536 |
Outstanding 31 December 2023 | 64,804 |
For the level below the Board, a Restricted Stock Units Plan was implemented in 2019. Executive Directors are not eligible for RSU grants. The Restricted Stock Units Plan comprises the conditional granting of shares in OCI. The total gross entitlement of an eligible employee under the applicable short-term incentive plan will be paid out partly in cash in accordance with the short-term incentive plan and partly in awards in accordance with this RSU plan. Shares will vest for one third of the restricted stock units comprising the award at the second anniversary of the grant date and for two thirds of the restricted stock units comprising the award on the third anniversary of the date of grant subject to still being employed by OCI. The RSU entitles the participants to dividend equivalents.
\nThe fair value of the RSUs awarded is equal to OCI\u2019s share price at the grant date since the participants are entitled to dividend equivalents during the vesting period.
\nRestricted Stock Units Plan | 2023 Grant | 2022 Grant | 2021 Grant | 2020 Grant |
|---|---|---|---|---|
Conditional shares granted | 200,942 | 273,706 | 132,666 | 89,900 |
Fair value at grant date (EUR) | 5,895,419 | 7,762,302 | 2,409,215 | 945,748 |
Fair value at grant date (EUR per share) | 29.34 | 28.36 | 18.16 | 10.52 |
Vesting period at issuance (years) | 3 | 3 | 3 | 3 |
Dividend yield | 0.0% | 0.0% | 0.0% | 0.0% |
Outstanding 31 December 2022 | - | 310,173 | 150,413 | 57,074 |
Forfeited in 2023 | (2,823) | (11,294) | (7,195) | - |
Vested in 2023 | (3,834) | (9,713) | (56,772) | (57,074) |
Initial awards (new joiners) | 18,915 | 4,243 | - | - |
Dividend equivalent shares1 | 34,385 | 45,624 | 13,627 | - |
Outstanding 31 December 2023 | 247,585 | 339,033 | 100,073 | - |
In 2021, the Employee Performance Share Units Plan was introduced for key Employees. The Employee Performance Share Units Plan is similar to the Executive Director Performance Share Units Plan. For the 2021 Award made on 8 February 2021 vesting will be dependent on relative TSR (60% weight) and additional performance measures (40% weight), being operational excellence, decarbonization and diversity & inclusion. Please refer to Executive Director Performance Share Units Plan for further details regarding the vesting conditions and the fair value measurement for the awards made under this plan.
\nEmployee Performance Share Units Plan | 2023 Grant | 2022 Grant | 2021 Grant |
|---|---|---|---|
Conditional shares granted | 38,422 | 12,234 | 14,006 |
Fair value at grant date (EUR) | 694,345 | 292,172 | 246,926 |
Weighted average fair value at grant date (EUR per share) | 18.07 | 23.88 | 17.63 |
Vesting period at issuance (years) | 3 | 3 | 3 |
Risk free interest rate | 3.230% | -0.171% | -0.728% |
Expected share price volatility | 38.8% | 44.3% | 44.2% |
Dividend yield | 0.0% | 0.0% | 0.0% |
Outstanding 31 December 2022 | - | 13,900 | 15,915 |
Vested in 2022 | - | - | - |
Expired in 2023 | - | - | - |
Dividend equivalent shares1 | 6,615 | 2,107 | 2,414 |
Outstanding 31 December 2023 | 45,037 | 16,007 | 18,329 |
$ millions | 2023 | 2022 |
|---|---|---|
Insurance proceeds | 11.3 | 5.0 |
Other | 7.2 | 1.1 |
Total | 18.5 | 6.1 |
$ millions | \u00a0 | 2023 | 2022 |
|---|---|---|---|
Other | \u00a0 | 36.8 | 0.2 |
Total | \u00a0 | 36.8 | 0.2 |
In 2023, other expenses is made up of USD 19.0 million related to the donation payment and USD 17.8 million related to minimum dividend payments agreed with non-controlling shareholders.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-578": { "value": "\n$ millions | 2023 | 2022 |
|---|---|---|
Insurance proceeds | 11.3 | 5.0 |
Other | 7.2 | 1.1 |
Total | 18.5 | 6.1 |
$ millions | \u00a0 | 2023 | 2022 |
|---|---|---|---|
Other | \u00a0 | 36.8 | 0.2 |
Total | \u00a0 | 36.8 | 0.2 |
In 2023, other expenses is made up of USD 19.0 million related to the donation payment and USD 17.8 million related to minimum dividend payments agreed with non-controlling shareholders.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-581": { "value": "\n$ millions | 2023 | 2022 |
|---|---|---|
Interest income and other financing income on loans and receivables | 10.1 | 4.7 |
Derivatives gain | 9.8 | 31.2 |
Finance income | 19.9 | 35.9 |
Interest expense and other financing costs on financial liabilities measured at amortized cost | (87.0) | (22.7) |
Derivatives loss | (0.6) | (7.8) |
Finance cost | (87.6) | (30.5) |
Net foreign exchange gain / (loss) | (10.8) | 71.2 |
Net finance cost recognized in profit or loss | (78.5) | 76.6 |
In 2023, interest expense and other financing costs on financial liabilities measured at amortized cost primarily consist of interest expense on third party loans and borrowings.
\nThe gains and losses on derivative instruments relates to foreign exchange derivatives and interest derivatives where hedge accounting is not applied. These instruments are mandatorily measured at fair value through profit or loss.
\nFor the interest expense related to lease obligations, reference is made to note 19.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-582": { "value": "\n$ millions | 2023 | 2022 |
|---|---|---|
Interest income and other financing income on loans and receivables | 10.1 | 4.7 |
Derivatives gain | 9.8 | 31.2 |
Finance income | 19.9 | 35.9 |
Interest expense and other financing costs on financial liabilities measured at amortized cost | (87.0) | (22.7) |
Derivatives loss | (0.6) | (7.8) |
Finance cost | (87.6) | (30.5) |
Net foreign exchange gain / (loss) | (10.8) | 71.2 |
Net finance cost recognized in profit or loss | (78.5) | 76.6 |
In 2023, interest expense and other financing costs on financial liabilities measured at amortized cost primarily consist of interest expense on third party loans and borrowings.
\nThe gains and losses on derivative instruments relates to foreign exchange derivatives and interest derivatives where hedge accounting is not applied. These instruments are mandatorily measured at fair value through profit or loss.
\nFor the interest expense related to lease obligations, reference is made to note 19.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-583": { "value": "\n$ millions | 2023 | 2022 |
|---|---|---|
Interest income and other financing income on loans and receivables | 10.1 | 4.7 |
Derivatives gain | 9.8 | 31.2 |
Finance income | 19.9 | 35.9 |
Interest expense and other financing costs on financial liabilities measured at amortized cost | (87.0) | (22.7) |
Derivatives loss | (0.6) | (7.8) |
Finance cost | (87.6) | (30.5) |
Net foreign exchange gain / (loss) | (10.8) | 71.2 |
Net finance cost recognized in profit or loss | (78.5) | 76.6 |
In 2023, interest expense and other financing costs on financial liabilities measured at amortized cost primarily consist of interest expense on third party loans and borrowings.
\nThe gains and losses on derivative instruments relates to foreign exchange derivatives and interest derivatives where hedge accounting is not applied. These instruments are mandatorily measured at fair value through profit or loss.
\nFor the interest expense related to lease obligations, reference is made to note 19.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-584": { "value": "\n$ millions | 2023 | 2022 |
|---|---|---|
i. Basic | \u00a0 | \u00a0 |
Continuing Operations | \u00a0 | \u00a0 |
Net profit / (loss) attributable to shareholders | (445.6) | 301.9 |
Weighted average number of ordinary shares (basic) | 210,628,291 | 210,274,265 |
Basic earnings per ordinary share - continuing operations | (2.116) | 1.436 |
Discontinued Operations | \u00a0 | \u00a0 |
Net profit / (loss) attributable to shareholders | 53.6 | 935.5 |
Weighted average number of ordinary shares (basic) | 210,628,291 | 210,274,265 |
Basic earnings per ordinary share - discontinued operations | 0.255 | 4.449 |
Total operations | \u00a0 | \u00a0 |
Net profit / (loss) attributable to shareholders | (392.0) | 1,237.4 |
Weighted average number of ordinary shares (basic) | 210,628,291 | 210,274,265 |
Basic earnings per ordinary share - total operations | (1.861) | 5.885 |
ii. Diluted | \u00a0 | \u00a0 |
Continuing Operations | \u00a0 | \u00a0 |
Net profit / (loss) attributable to shareholders | (445.6) | 301.9 |
Weighted average number of ordinary shares (diluted) | 212,235,048 | 211,556,266 |
Diluted earnings per ordinary share - continuing operations | (2.116) | 1.427 |
Discontinued Operations | \u00a0 | \u00a0 |
Net profit / (loss) attributable to shareholders | 53.6 | 935.5 |
Weighted average number of ordinary shares (diluted) | 212,235,048 | 211,556,266 |
Diluted earnings per ordinary share - discontinued operations | 0.255 | 4.422 |
Total operations | \u00a0 | \u00a0 |
Net profit / (loss) attributable to shareholders | (392.0) | 1,237.4 |
Weighted average number of ordinary shares (diluted) | 212,235,048 | 211,556,266 |
Diluted earnings per ordinary share - total operations | (1.861) | 5.849 |
Shares | 2023 | 2022 |
|---|---|---|
Issued ordinary shares at the beginning of the period | 210,712,004 | 210,611,918 |
Effect of treasury shares held | (295,793) | (337,653) |
Effect of shares issued during the period | 212,080 | - |
Weighted average number of ordinary shares outstanding as per 31 December | 210,628,291 | 210,274,265 |
Adjustment for assumed equity-settled share-based compensation | 1,606,757 | 1,282,001 |
Weighted average number of ordinary shares outstanding (diluted) as per 31 December | 212,235,048 | 211,556,266 |
OCI\u2019s reportable segments are consistent with how the Chief Operating Decision Maker (\u2018CODM\u2018) manages the business operations and views the markets it serves. The reportable segments are: Methanol US, Methanol Europe, and Nitrogen Europe. The organizational structure of the segments is based on a number of factors that the CODM uses to evaluate, view, and direct business operations. Information on the segmentation of discontinued operations is included in note 22.
\nThe Company derives the results of the business segments directly from its internal management reporting system. All segments are managed separately because they require different operating strategies and use their own assets and employees. The entities grouped together in each segment have similar regulatory environments, macroeconomic conditions, banking, insurance and public utilities.
\nThe Group has two revenue streams from contracts with customers that relate to the sale of goods, namely, Nitrogen and Methanol.
\nSegment revenues includes revenues from sales to external customers and intersegment revenues. Intersegment transactions are included in the totals presented per reportable segment and are eliminated in the reconciliation of these balances to the financial statements.
\nEBITDA, Adjusted EBITDA and profit / (loss) are the primary performance measure used by our CODM to evaluate operating results and allocate capital resources among segments. These are also the profitability measures used to set management and executive incentive compensation goals. Included in the \u2018Other\u2019 segment is share-based compensation and certain corporate general and administrative expenses that are not allocated to the segments. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be reasonably and consistently re-allocated.
\nA summary description of each reportable segment is as follows:
\nThis segment consists of OCI Beaumont (OCIB), Natgasoline LLC, the trading entity OCI Methanol Marketing LLC (OMM US) and OCI USA Inc., an entity that serves as the US corporate income tax payer for OCIB and OMM US.
\nOCI Beaumont is an integrated methanol and ammonia production facility that is strategically located on the Texas Gulf Coast near Beaumont. Natgasoline LLC is a world scale methanol production complex in Beaumont, Texas. OCI and its partner, Consolidated Energy Limited (CEL)/G2X, each own 50% stakes.
\nNatgasoline LLC is an equity-accounted investee of the Group, reference is made to note 10. Due to the similarities in regulatory environment, products and customer base, this equity-accounted investee has been included in the \u2018Methanol US\u2019 segment on a proportionally consolidated basis. The elimination column is used to eliminate the proportionally consolidated figures of Natgasoline LLC that are included in the US Methanol segment and to include the investment in, and results from Natgasoline LLC (associate) and thereby reconcile to the Group\u2019s reported figures.
\nOCIB and Natgasoline LLC sell mainly domestically; primarily to industrial customers in and around the U.S. Gulf Coast through pipeline connections to adjacent customers, port access with dedicated methanol and ammonia import / export jetties, and truck loading facilities for both methanol and ammonia. OMM US is a trading entity that sells products produced by OCIB and Natgasoline LLC.
\nThis segment consists of BioMCN, located at Delfzijl in the Netherlands, OCI Fuels Ltd, OCI Fuels B.V. and OCI Methanol Marketing B.V. (OMM EU). BioMCN is one of Europe\u2019s largest methanol producers. BioMCN produces two types of methanol: bio-methanol and regular (also known as grey) methanol. OCI Fuels is a trading entity that supplies biogas, which is processed into bio-methanol and bio-fuel, and sells the bio-methanol products produced by BioMCN. OMM EU is a trading entity that sells grey methanol products produced by BioMCN.
\nThis segment consists of OCI Nitrogen (OCIN) and OCI Terminal Europoort B.V.. OCI Nitrogen is Europe\u2019s second largest integrated nitrates fertilizer producer and the world\u2019s largest melamine producer with production site in Geleen, the Netherlands. OCI Terminal Europoort B.V. provides storage and shipment services of ammonia through at their location in Rotterdam, the Netherlands.
\nThis segment consists of Iowa Fertilizer Company LLC (IFCo), a wholly owned nitrogen fertilizer complex in Iowa, the trading entity, discontinued operations of N-7 and Iowa Intermediate Fertilizer Holding, an entity that serves as the US corporate income tax payer for IFCo. IFCo products are sold via the trading entity.
\nThe Fertiglobe segment consists of the following entities: Egyptian Fertilizers Company (EFC), Egypt Basic Industries Corporation (EBIC), Sorfert Algerie (Sorfert), Ruwais Fertilizer Industries LLC (Fertil), Fertiglobe Distribution (FD), Fertiglobe Fertilizer Trading (FFT, previously OCI Fertilizer Trading), OCI Fertilizer Trade and Supply (OFTS), Fertiglobe plc and OCI S.A.E. EFC is a granular urea producer in Egypt. EBIC is an ammonia plant in Egypt. Sorfert is a partnership with Algeria\u2019s state-owned oil and gas authority and is one of the largest nitrogen fertilizer producers in North Africa. Fertil is a producer of urea fertilizer in Abu Dhabi. FD, FFT and OFTS are trading entities based in Abu Dhabi, Dubai and the Netherlands.
\nThis segment consists of all remaining entities of the Group, including OCI Clean Ammonia LLC and the continuing operations of N-7. OCI Clean Ammonia LLC is identified as an operating segment, but as it is in the pre-operating phase, it does not meet the criteria to be considered a reportable segment. The portion of N-7 relating to the continuing operations is included in 'Other', where as the portion which relates to the assets and liabilities held for sale are included in the 'Nitrogen US' segment as part of discontinued operations. Further information on the discontinued operations is included in note 22.
\n2023 | Methanol US1 | Methanol EU | Nitrogen EU | Other2 | Elimination | Continuing | Nitrogen US | Fertiglobe | Elimination | Discontinued | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
Total revenues | 602.7 | 492.9 | 950.2 | 146.0 | (229.2) | 1,962.6 | 821.2 | 2,416.2 | (178.5) | 3,058.9 | 5,021.5 |
EBITDA3 | (55.8) | 57.7 | (40.6) | (122.6) | (16.7) | (178.0) | 159.5 | 986.1 | 6.1 | 1,151.7 | 973.7 |
Adjusted EBITDA3 | 32.5 | 65.4 | (50.8) | (75.0) | 4.3 | (23.6) | 231.4 | 1,000.3 | 6.1 | 1,237.8 | 1,214.2 |
Share of results of equity-accounted investees | - | - | 6.4 | - | (107.3) | (100.9) | - | - | - | - | (100.9) |
Depreciation, amortization and impairment | (187.2) | (1.9) | (86.7) | (13.1) | 95.1 | (193.8) | (156.7) | (268.5) | - | (425.2) | (619.0) |
Finance income | 6.2 | 3.7 | 10.5 | 56.2 | (56.7) | 19.9 | 25.5 | 16.3 | (23.4) | 18.4 | 38.3 |
Finance expense | (57.2) | (3.7) | (9.9) | (106.9) | 90.1 | (87.6) | (75.6) | (119.4) | 23.4 | (171.6) | (259.2) |
Net foreign exchange gain / (loss) | (0.1) | (1.3) | (0.8) | (8.6) | - | (10.8) | - | (19.7) | - | (19.7) | (30.5) |
Income tax (expense) / income | 34.6 | 4.4 | 33.6 | 3.6 | - | 76.2 | (80.9) | (83.6) | (0.6) | (165.1) | (88.9) |
Net profit / (loss) | (259.5) | 58.9 | (87.5) | (191.4) | 4.5 | (475.0) | (128.2) | 511.2 | 5.5 | 388.5 | (86.5) |
Equity-accounted investees | - | - | 35.3 | - | 364.2 | 399.5 | - | - | - | - | 399.5 |
Capital expenditures non-current assets | 38.6 | 1.9 | 122.7 | 404.5 | (8.6) | 559.1 | 194.4 | 110.9 | - | 305.3 | 864.4 |
Total assets | 1,493.2 | 112.8 | 778.5 | 734.3 | (559.9) | 2,558.9 | 1,952.5 | 4,463.1 | - | 6,415.6 | 8,974.5 |
2022 | Methanol US1 | Methanol EU | Nitrogen EU | Other2 | Elimination | Continuing | Nitrogen US | Fertiglobe | Elimination | Discontinued | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
Total revenues | 908.9 | 498.9 | 2,382.8 | 387.2 | (464.2) | 3,713.6 | 1,549.3 | 5,027.5 | (577.3) | 5,999.5 | 9,713.1 |
EBITDA3 | 284.2 | 108.3 | 239.1 | (76.9) | (110.5) | 444.2 | 705.3 | 2,451.7 | 3.0 | 3,160.0 | 3,604.2 |
Adjusted EBITDA3 | 372.1 | 109.1 | 252.6 | (71.4) | 12.7 | 675.1 | 739.9 | 2,473.0 | 3.0 | 3,215.9 | 3,891.0 |
Share of results of equity-accounted investees | - | - | 8.8 | - | 13.0 | 21.8 | - | - | - | - | 21.8 |
Depreciation, amortization and impairment | (155.2) | (18.4) | (76.0) | (5.4) | 77.0 | (178.0) | (155.6) | (266.3) | - | (421.9) | (599.9) |
Finance income | 6.7 | 0.7 | 1.7 | 66.4 | (39.6) | 35.9 | 5.5 | 1.5 | (4.7) | 2.3 | 38.2 |
Finance expense | (41.5) | (1.9) | (7.0) | (50.2) | 70.1 | (30.5) | (142.3) | (83.2) | 4.7 | (220.8) | (251.3) |
Net foreign exchange gain / (loss) | 1.5 | - | (0.7) | 70.4 | - | 71.2 | - | (44.1) | - | (44.1) | 27.1 |
Income tax (expense) / income | (23.6) | - | (41.3) | 13.3 | 4.3 | (47.3) | (127.1) | (239.2) | (0.2) | (366.5) | (413.8) |
Net profit / (loss) | 72.1 | 88.7 | 124.6 | 17.6 | 14.3 | 317.3 | 285.8 | 1,820.4 | 2.8 | 2,109.0 | 2,426.3 |
Equity-accounted investees | - | - | 47.1 | 0.2 | 475.0 | 522.3 | - | - | - | - | 522.3 |
Capital expenditures non-current assets | 77.7 | 14.0 | 96.6 | 69.2 | (4.4) | 253.1 | 36.3 | 111.1 | - | 147.4 | 400.5 |
Total assets | 1,551.5 | 95.0 | 927.4 | 366.0 | (583.9) | 2,356.0 | 2,094.8 | 5,320.3 | - | 7,415.1 | 9,771.1 |
The geographic information below analyses the Group\u2019s revenue (by destination of the goods) and non-current assets (by the Company where the activities are being operated). OCI has no single customer that represents 10% or more of revenues and therefore information about major customers is not provided.
\n| \u00a0 | Revenue - Continuing | Revenue - Discontinued | Non-current assets | |||
|---|---|---|---|---|---|---|
$ million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Europe | 1,286.3 | 2,614.6 | 1,028.8 | 1,632.6 | 613.1 | 565.3 |
Americas | 650.0 | 1,008.4 | 1,030.3 | 1,815.3 | 756.7 | 2,841.5 |
Africa & Middle East | 8.5 | 42.4 | 416.3 | 1,049.7 | 491.8 | 3,384.2 |
Asia & Oceania | 17.8 | 48.2 | 583.5 | 1,501.9 | - | 15.9 |
Total | 1,962.6 | 3,713.6 | 3,058.9 | 5,999.5 | 1,861.6 | 6,806.9 |
The key performance obligation of the OCI group is always the supply of products as specified in the contracts with customers. Possible additional performance obligations included are transportation and related cost of insurance, depending on the incoterms. The Group has two revenue streams from contracts with customers that relate to the supply of products i.e. Nitrogen and Methanol. No impairment losses on receivables have been recognized (reference is made to note 6.1 and note 9).
\nBased on the IFRS 15 accounting policies adopted, the following modifications to the contracts are allowed: discounts and rebates. They are all taken into account when presenting the segment revenues. Time value of money is not considered to be relevant for the amendment of the revenue amount, as the payment terms are short. Also, there are no non-cash considerations that would need to be disclosed separately. No information is provided about remaining performance obligations at current and comparative year end date that have an original expected duration of one year or less, as allowed by IFRS 15.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-586": { "value": "\nOCI has a committed guarantee facility with Rabobank for a maximum guarantee amount of EUR 150.0 million (USD 165.6 million). Under this guarantee facility, EUR 56.6 million (USD 62.5 million) has been utilized. The facility is used to issue guarantees on behalf of the subsidiaries, mainly for operational purposes.
\nOCI has an uncommitted guarantee facility with Tokio Marine Europe SA, Z\u00fcrich Insurance plc and Huler Hermes SA for a maximum guarantee amount of EUR 150.0 million (USD 165.6 million). Under this guarantee facility, EUR 0.6 million (USD 0.7 million) has been drawn. The facility is used to issue a performance guarantee on behalf of OCIN.
\nOCI has an uncommitted guarantee facility for the issuance of payment undertakings with BNP Paribas for an amount of USD 53.7 million. The facility is utilized for USD 6.8 million. The facility is used to issue guarantees on behalf of the subsidiaries, mainly for operational purposes.
\nIn the normal course of business, the Group entities and joint ventures are involved in some arbitration, commercial disputes or court cases as defendants or claimants. These litigations and commercial disputes are carefully monitored by the entities\u2019 and Group management and legal counsels, and are regularly assessed with due consideration for possible insurance coverage and recourse rights on third parties. OCI does not expect these proceedings to result in liabilities that have a material effect on the Group's financial position.
\nIn cases where it is probable that the outcome of the proceedings will be unfavorable, and the financial outcome can be measured reliably, a provision has been recognized in the financial statements which is disclosed in note 21 Provisions. It should be understood that, in light of possible future developments, such as (a) potential additional lawsuits, (b) possible future settlements, and (c) rulings or judgments in pending lawsuits, certain cases may result in additional liabilities and related costs. At this point in time, OCI cannot estimate any additional amount of loss or range of loss in excess of the recorded amounts with sufficient certainty to allow such amount or range of amounts to be meaningful. Moreover, if and to the extent that the contingent liabilities materialize, they are typically paid over a number of years and the timing of such payments cannot be predicted with confidence.
\nWhile the outcome of said cases, claims and disputes cannot be predicted with certainty, we believe, based upon legal advice and information received, that the final outcome will not materially affect our consolidated financial position but could be material to our results of operations or cash flows in any one accounting period.
\nIn October 2012, the Egyptian Tax Authority (\u2018ETA\u2019) raised a tax evasion claim against our Egyptian subsidiary, OCI S.A.E. The tax dispute related to the sale of OCI S.A.E.\u2019s cement business to Lafarge SA in 2007. Although OCI S.A.E. and its legal and tax advisors believed that the aforementioned transaction was exempted of tax, management entered into a settlement agreement with the ETA whereby EGP 7.1 billion would be paid over a 5-year period. The agreement was followed by payment of a first instalment of EGP 2.5 billion in 2013. Subsequently, the company was exonerated from the tax claim by the Egyptian Public Prosecutor on 18 February 2014 and additionally by the ETA\u2019s Independent Appeals Committee on 4 November 2014. The ETA appealed this decision at the court of first instance. In March 2015, following the decision of the Independent Appeals Committee of 4 November 2014, the ETA reimbursed OCI S.A.E. EGP 1,904 million. In 2016 OCI S.A.E. was required to pay a second instalment of EGP 900 million related to the original settlement agreement of 2013. OCI S.A.E. has lodged a reimbursement claim for this amount. On 23 January 2023, a judgment was issued in favor of OCI S.A.E. rejecting the appeal of the ETA and on 14 May 2023, the judgment has become irrevocable by a decision from the Supreme Court. As a result, the EGP 1.9 billion paid to OCI S.A.E. in 2015 may no longer be reclaimed by the ETA and OCI S.A.E. has a claim of EGP 900 million against the ETA.
\nOn 13 November 2014 OCI N.V. announced that it would transfer its rights to EGP 2.5 billion undue paid tax amounts to an Egyptian development fund. Following the guidance under IAS 37 (constructive obligations), the Company has presented the transfer of rights to the fund as a donation provision, which was set at EGP 1.9 billion representing the amount reimbursed in March 2015.
\nAs part of the demerger of the Engineering and Construction Group that formed Orascom Construction plc (\u2018OC\u2019) in 2015, parties agreed that OCI S.A.E. would retain the reimbursed sum of EGP 1.9 billion and reimbursement claim of EGP 900 million to fulfil the constructive obligation upon final verdict of the case. Any excess liabilities and recoveries were agreed to be shared on a 50:50 basis between OCI N.V. and OC.
\nIn June 2023, OCI N.V. entered into an agreement with OC to pay the respective 50% share in the reimbursed sum (USD 26.7 million paid in July 2023 which is net of prior payments), to assign 50% in the reimbursement claim against the ETA and split the constructive obligation on a 50:50 basis. As a result of this settlement and due to the devaluation of the EGP, the donation provision was reduced to USD 30.9 million.
\nOn 12 September 2023, the OCI N.V. Board approved a donation to be made by OCI N.V., to the Tahya Misr Fund in Egypt, to the amount of USD 50.0 million.
\nFollowing the OCI N.V. board decision to donate USD 50.0 million towards the Tahya Misr Fund, the donation provision of OCI S.A.E was released. OCI N.V.\u2019s indemnification liability towards its subsidiary Fertiglobe plc has lapsed.
\nOn 14 September 2023, OCI N.V. made the first payment of USD 25.0 million and the second and final payment of USD 25.0 million on 2 November 2023, to the Tahya Misr Fund.
\nOCIN entered into agreements with Royal DSM N.V. and associated company Sitech for respectively the lease of the sites (land) on which it operates its plant and for site services/usage. These agreements have an indefinite term and include an asset dismantling obligation and the obligation to clean up environmental pollution occurred after zero measurement. These obligations have not been accounted for, since the company has no plans to end its business activities in the foreseeable future. As such the financial impact is assessed as not material by the company\u2019s management.
\nBioMCN has a contractual asset retirement obligation in connection with the lease of its land. This asset retirement obligation is being disclosed as a contingent liability because it is not possible to determine a reliable estimate in both timing and value of this obligation.
\nOCI Fuels B.V. enters into biogas purchase agreements around the USA for the production of biomethanol in the methanol plant in Beaumont (Texas, USA) and for sale to the USA transportation market. Through these long-term agreements OCI purchases biogas for a fixed price. Per 31 December 2023, an expected 16.3 million mmbtu biogas will be purchased over the coming years (2024 - 2030). The total expected purchase commitment per 31 December 2023 amounts to USD 124.5 million (2022: USD 147.7 million). Total contract volume is 35.2 million mmbtu and the total contract value is USD 265.4 million (2022: USD 364.5 million).
\nCapital commitments relate to purchase commitments of property, plant and equipment.
\n$ millions | 2023 | 2022 |
|---|---|---|
BioMCN | - | 0.2 |
OCIN | 10.3 | 20.7 |
OCI Clean Ammonia LLC | 403.5 | 202.4 |
Total | 413.8 | 223.3 |
In November 2022, OCI Clean Ammonia LLC signed an offtake agreement for the offtake of blue hydrogen to supply our greenfield blue ammonia facility located on the Gulf Coast of the United States. The agreement involves the offtake of approximately 200,000 metric tonnes of blue hydrogen per annum. The pricing of blue hydrogen is largely derived from natural gas and power prices, supplemented by a fixed fee component. The commencement of the offtake agreement will be aligned with the commencement of production at our blue ammonia plant, which is planned for Q1 2025. OCI N.V. acts as a guarantor for any operational liabilities resulting from this offtake agreement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-587": { "value": "\nOCI has a committed guarantee facility with Rabobank for a maximum guarantee amount of EUR 150.0 million (USD 165.6 million). Under this guarantee facility, EUR 56.6 million (USD 62.5 million) has been utilized. The facility is used to issue guarantees on behalf of the subsidiaries, mainly for operational purposes.
\nOCI has an uncommitted guarantee facility with Tokio Marine Europe SA, Z\u00fcrich Insurance plc and Huler Hermes SA for a maximum guarantee amount of EUR 150.0 million (USD 165.6 million). Under this guarantee facility, EUR 0.6 million (USD 0.7 million) has been drawn. The facility is used to issue a performance guarantee on behalf of OCIN.
\nOCI has an uncommitted guarantee facility for the issuance of payment undertakings with BNP Paribas for an amount of USD 53.7 million. The facility is utilized for USD 6.8 million. The facility is used to issue guarantees on behalf of the subsidiaries, mainly for operational purposes.
\nIn the normal course of business, the Group entities and joint ventures are involved in some arbitration, commercial disputes or court cases as defendants or claimants. These litigations and commercial disputes are carefully monitored by the entities\u2019 and Group management and legal counsels, and are regularly assessed with due consideration for possible insurance coverage and recourse rights on third parties. OCI does not expect these proceedings to result in liabilities that have a material effect on the Group's financial position.
\nIn cases where it is probable that the outcome of the proceedings will be unfavorable, and the financial outcome can be measured reliably, a provision has been recognized in the financial statements which is disclosed in note 21 Provisions. It should be understood that, in light of possible future developments, such as (a) potential additional lawsuits, (b) possible future settlements, and (c) rulings or judgments in pending lawsuits, certain cases may result in additional liabilities and related costs. At this point in time, OCI cannot estimate any additional amount of loss or range of loss in excess of the recorded amounts with sufficient certainty to allow such amount or range of amounts to be meaningful. Moreover, if and to the extent that the contingent liabilities materialize, they are typically paid over a number of years and the timing of such payments cannot be predicted with confidence.
\nWhile the outcome of said cases, claims and disputes cannot be predicted with certainty, we believe, based upon legal advice and information received, that the final outcome will not materially affect our consolidated financial position but could be material to our results of operations or cash flows in any one accounting period.
\nIn October 2012, the Egyptian Tax Authority (\u2018ETA\u2019) raised a tax evasion claim against our Egyptian subsidiary, OCI S.A.E. The tax dispute related to the sale of OCI S.A.E.\u2019s cement business to Lafarge SA in 2007. Although OCI S.A.E. and its legal and tax advisors believed that the aforementioned transaction was exempted of tax, management entered into a settlement agreement with the ETA whereby EGP 7.1 billion would be paid over a 5-year period. The agreement was followed by payment of a first instalment of EGP 2.5 billion in 2013. Subsequently, the company was exonerated from the tax claim by the Egyptian Public Prosecutor on 18 February 2014 and additionally by the ETA\u2019s Independent Appeals Committee on 4 November 2014. The ETA appealed this decision at the court of first instance. In March 2015, following the decision of the Independent Appeals Committee of 4 November 2014, the ETA reimbursed OCI S.A.E. EGP 1,904 million. In 2016 OCI S.A.E. was required to pay a second instalment of EGP 900 million related to the original settlement agreement of 2013. OCI S.A.E. has lodged a reimbursement claim for this amount. On 23 January 2023, a judgment was issued in favor of OCI S.A.E. rejecting the appeal of the ETA and on 14 May 2023, the judgment has become irrevocable by a decision from the Supreme Court. As a result, the EGP 1.9 billion paid to OCI S.A.E. in 2015 may no longer be reclaimed by the ETA and OCI S.A.E. has a claim of EGP 900 million against the ETA.
\nOn 13 November 2014 OCI N.V. announced that it would transfer its rights to EGP 2.5 billion undue paid tax amounts to an Egyptian development fund. Following the guidance under IAS 37 (constructive obligations), the Company has presented the transfer of rights to the fund as a donation provision, which was set at EGP 1.9 billion representing the amount reimbursed in March 2015.
\nAs part of the demerger of the Engineering and Construction Group that formed Orascom Construction plc (\u2018OC\u2019) in 2015, parties agreed that OCI S.A.E. would retain the reimbursed sum of EGP 1.9 billion and reimbursement claim of EGP 900 million to fulfil the constructive obligation upon final verdict of the case. Any excess liabilities and recoveries were agreed to be shared on a 50:50 basis between OCI N.V. and OC.
\nIn June 2023, OCI N.V. entered into an agreement with OC to pay the respective 50% share in the reimbursed sum (USD 26.7 million paid in July 2023 which is net of prior payments), to assign 50% in the reimbursement claim against the ETA and split the constructive obligation on a 50:50 basis. As a result of this settlement and due to the devaluation of the EGP, the donation provision was reduced to USD 30.9 million.
\nOn 12 September 2023, the OCI N.V. Board approved a donation to be made by OCI N.V., to the Tahya Misr Fund in Egypt, to the amount of USD 50.0 million.
\nFollowing the OCI N.V. board decision to donate USD 50.0 million towards the Tahya Misr Fund, the donation provision of OCI S.A.E was released. OCI N.V.\u2019s indemnification liability towards its subsidiary Fertiglobe plc has lapsed.
\nOn 14 September 2023, OCI N.V. made the first payment of USD 25.0 million and the second and final payment of USD 25.0 million on 2 November 2023, to the Tahya Misr Fund.
\nOCIN entered into agreements with Royal DSM N.V. and associated company Sitech for respectively the lease of the sites (land) on which it operates its plant and for site services/usage. These agreements have an indefinite term and include an asset dismantling obligation and the obligation to clean up environmental pollution occurred after zero measurement. These obligations have not been accounted for, since the company has no plans to end its business activities in the foreseeable future. As such the financial impact is assessed as not material by the company\u2019s management.
\nBioMCN has a contractual asset retirement obligation in connection with the lease of its land. This asset retirement obligation is being disclosed as a contingent liability because it is not possible to determine a reliable estimate in both timing and value of this obligation.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-589": { "value": "\nOCI Fuels B.V. enters into biogas purchase agreements around the USA for the production of biomethanol in the methanol plant in Beaumont (Texas, USA) and for sale to the USA transportation market. Through these long-term agreements OCI purchases biogas for a fixed price. Per 31 December 2023, an expected 16.3 million mmbtu biogas will be purchased over the coming years (2024 - 2030). The total expected purchase commitment per 31 December 2023 amounts to USD 124.5 million (2022: USD 147.7 million). Total contract volume is 35.2 million mmbtu and the total contract value is USD 265.4 million (2022: USD 364.5 million).
\nCapital commitments relate to purchase commitments of property, plant and equipment.
\n$ millions | 2023 | 2022 |
|---|---|---|
BioMCN | - | 0.2 |
OCIN | 10.3 | 20.7 |
OCI Clean Ammonia LLC | 403.5 | 202.4 |
Total | 413.8 | 223.3 |
In November 2022, OCI Clean Ammonia LLC signed an offtake agreement for the offtake of blue hydrogen to supply our greenfield blue ammonia facility located on the Gulf Coast of the United States. The agreement involves the offtake of approximately 200,000 metric tonnes of blue hydrogen per annum. The pricing of blue hydrogen is largely derived from natural gas and power prices, supplemented by a fixed fee component. The commencement of the offtake agreement will be aligned with the commencement of production at our blue ammonia plant, which is planned for Q1 2025. OCI N.V. acts as a guarantor for any operational liabilities resulting from this offtake agreement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-590": { "value": "\nTransactions with related parties occur when a relationship exists between the Company and their directors and key management personnel. The Company engages in the following types of related party transactions:
Those with NNS Luxembourg Sarl for occasional consultancy services and Residencia Europe Ltd for personnel recharges.
The Executive Chair\u2019s travel as per his right to expense the use of a private aircraft for OCI-related business travel.
The Company\u2019s former construction arm which was divested on 7 March 2015 and incorporated as a separate legal entity, \"Orascom Conctruction plc\" (OC) in the United Arab Emirates. The Sawiris family, the majority shareholders of OCI, also owns the majority of the outstanding shares of OC, which qualifies OC and its subsidiaries to be classified as related parties.
The following is an overview of the transactions and outstanding amounts as at 31 December 2023:
\nRelated party | Relation | Recharges | AR at year end | Purchases | AP at year end | Interest expense |
|---|---|---|---|---|---|---|
Orascom Construction Egypt | OC Group company | - | - | - | - | - |
Orascom Construction Holding Cyprus | OC Group company | - | - | - | - | - |
Orascom Construction plc | OC Group company | - | - | - | - | 0.4 |
NNS Luxembourg Sarl | Related via shareholder Sarl | - | 0.5 | - | - | - |
Residencia Europe Ltd | Related via shareholder | 0.9 | 0.1 | - | - | - |
Nassef Sawiris | Executive chair | - | - | 1.0 | 0.4 | - |
Total | \u00a0 | 0.9 | 0.6 | 1.0 | 0.4 | 0.4 |
The following is an overview of the transactions and outstanding amounts as at 31 December 2022:
\nRelated party | Relation | Recharges | AR at year end | Purchases | AP at year end | Interest expense |
|---|---|---|---|---|---|---|
Orascom Construction Egypt | OC Group company | - | 1.1 | 0.1 | 0.1 | - |
Orascom Construction Holding Cyprus | OC Group company | - | - | - | 0.9 | - |
Orascom Construction plc | OC Group company | - | - | - | - | 9.8 |
NNS Luxembourg Sarl | Related via shareholder Sarl | - | 0.5 | - | - | - |
Residencia Europe Ltd | Related via shareholder Sarl | 1.0 | 0.6 | - | - | - |
Nassef Sawiris | Executive chair | - | - | 0.9 | 0.5 | - |
Total | \u00a0 | 1.0 | 2.2 | 1.0 | 1.5 | 9.8 |
OCI conducts transactions with its associates and joint ventures (as defined in note 3.2, together \u201cEquity-accounted investees\u201d) in the ordinary course of business by buying and selling goods and services from and to various equity-accounted investees within the group. For more information we refer to note 10 and 22.
\nThe following is an overview of the transactions and outstanding amounts as at 31 December 2023:
\nRelated party | Relation | Revenue | AR at year end | Purchases | AP at year end | Interest income |
|---|---|---|---|---|---|---|
Natgasoline LLC | Related via associate | 7.7 | - | 170.9 | 39.2 | - |
Suez Industrial Development Company | Associate | - | - | - | - | - |
Utility Support Group B.V. | Related via associate | 29.3 | 1.7 | 103.6 | 7.2 | - |
Circle Infra Partners B.V.1 | Associate | - | - | 12.2 | 1.8 | - |
Nitrogen Iberian Company SL | Joint venture | 2.2 | - | 0.1 | - | - |
Shanxi Fenghe Melamine Co Ltd. | Joint venture | - | - | 0.5 | - | - |
Egypt Green Hydrogen SAE | Associate | - | - | - | - | - |
Integrated Inspection Association (IIA) Cooperatief U.A | Associate | - | - | 0.2 | 0.2 | - |
Total | \u00a0 | 39.2 | 1.7 | 287.3 | 48.2 | - |
The following is an overview of the transactions and outstanding amounts as at 31 December 2022:
\nRelated party | Relation | Revenue | AR at year end | Purchases | AP at year end | Interest income |
|---|---|---|---|---|---|---|
Natgasoline LLC | Related via associate | 11.8 | 0.5 | 262.1 | 54.0 | - |
Sitech Manufacturing Services C.V. | Associate | - | - | 145.2 | 73.8 | - |
Utility Support Group B.V. | Related via associate | 69.7 | 1.8 | 253.4 | 10.2 | - |
Sitech Services B.V. | Associate | - | - | 17.1 | 2.9 | - |
Nitrogen Iberian Company SL | Joint venture | 39.0 | 19.6 | - | - | - |
Shanxi Fenghe Melamine Co Ltd. | Joint venture | 0.3 | - | 24.0 | - | - |
Egypt Green Hydrogen SAE | Associate | - | 1.7 | - | - | - |
Total | \u00a0 | 120.8 | 23.6 | 701.8 | 140.9 | - |
As these are transactions with equity-accounted investees and related parties, the terms and conditions may not necessarily be the same as transactions negotiated between third parties. Management believes that the terms and conditions of all transactions and outstanding balances with our equity-accounted investees and related parties are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-591": { "value": "\nWe considered the members of the Board of Directors (Executive and Non-executive) to be the key management personnel as defined in IAS 24 \u2018Related parties\u2019. For transactions with key management personnel reference is made to note 31. No other benefits or remuneration were provided to or have been entered into with above mentioned key management personnel except as disclosed below.
\nDuring the financial year ended 31 December 2023, the total remuneration costs relating to the Executive Directors amounted to USD 12.3 million (2022: USD 13.3 million) consisting of the elements listed in the table below:
\n2023 | Age | Base salary1 | Fertiglobe fees2 | Annual bonus | Share-based compensation | Total remuneration |
|---|---|---|---|---|---|---|
N. Sawiris | 62 | 1,050,000 | 150,000 | - | 1,066,865 | 2,266,865 |
A. El-Hoshy | 39 | 1,312,500 | 478,1253 | 1,247,203 | 1,576,725 | 4,614,553 |
H. Badrawi | 47 | 1,207,500 | 150,000 | 917,942 | 1,417,158 | 3,692,600 |
M. de Vries | 51 | 588,000 | 16,338 | 357,598 | 763,736 | 1,725,672 |
Total | \u00a0 | 4,158,000 | 794,463 | 2,522,743 | 4,824,484 | 12,299,690 |
2022 | Age | Base salary1 | Fertiglobe fees2 | Annual bonus | Share-based compensation | Total remuneration |
|---|---|---|---|---|---|---|
N. Sawiris | 61 | 1,000,000 | 150,000 | - | 1,415,114 | 2,565,114 |
A. El-Hoshy | 38 | 1,250,000 | 462,5003 | 1,764,328 | 1,469,509 | 4,946,337 |
H. Badrawi | 46 | 1,150,000 | 150,000 | 1,298,546 | 1,345,970 | 3,944,516 |
M. de Vries | 50 | 560,000 | 16,338 | 632,335 | 654,897 | 1,863,567 |
Total | \u00a0 | 3,960,000 | 778,838 | 3,695,209 | 4,885,490 | 13,319,537 |
At 31 December 2023, the Executive Directors held 772,394 conditional performance shares (2022: 815,870 including the conditional performance shares granted to A. El-Hoshy prior to his appointment to the Board).
\n| \u00a0 | Outstanding year end 2022 | Granted conditional | Granted Dividend Equivalent Shares | Vested | Expired | Outstanding year end 2023 | Vesting date |
|---|---|---|---|---|---|---|---|
N. Sawiris | 153,808 | 14,7651 | - | (168,573) | - | - | 14-02-2023 |
| \u00a0 | 66,173 | - | 10,056 | - | - | 76,229 | 14-02-2024 |
| \u00a0 | 48,968 | - | 7,429 | - | - | 56,397 | 07-02-2025 |
| \u00a0 | - | 48,945 | 8,435 | - | - | 57,380 | 07-02-2026 |
N. Sawiris total | 268,949 | 63,710 | 25,920 | (168,573) | - | 190,006 | \u00a0 |
A. El-Hoshy | 80,7492 | 7,751 | - | (88,500) | - | - | 14-02-2023 |
| \u00a0 | 82,717 | - | 12,560 | - | - | 95,277 | 14-02-2024 |
| \u00a0 | 61,210 | - | 9,289 | - | - | 70,499 | 07-02-2025 |
| \u00a0 | - | 71,379 | 12,301 | - | - | 83,680 | 07-02-2026 |
A. El-Hoshy total | 224,676 | 79,130 | 34,150 | (88,500) | - | 249,456 | \u00a0 |
H. Badrawi | 88,439 | 8,490 | - | (96,929) | - | - | 14-02-2023 |
| \u00a0 | 76,101 | - | 11,556 | - | - | 87,657 | 14-02-2024 |
| \u00a0 | 56,314 | - | 8,545 | - | - | 64,859 | 07-02-2025 |
| \u00a0 | - | 56,287 | 9,700 | - | - | 65,987 | 07-02-2026 |
H. Badrawi total | 220,854 | 64,777 | 29,801 | (96,929) | - | 218,503 | \u00a0 |
M. de Vries | 36,913 | 3,543 | - | (40,456) | - | - | 14-02-2023 |
| \u00a0 | 37,057 | - | 5,626 | - | - | 42,683 | 14-02-2024 |
| \u00a0 | 27,421 | - | 4,160 | - | - | 31,581 | 07-02-2025 |
| \u00a0 | - | 34,262 | 5,903 | - | - | 40,165 | 07-02-2026 |
M. de Vries total | 101,391 | 37,805 | 15,689 | (40,456) | - | 114,429 | \u00a0 |
At 31 December 2023, the Executive Directors held 64,804 One Off Share Awards (2022: 56,268).
\n| \u00a0 | Outstanding year end 2022 | Granted conditional | Granted Dividend Equivalent Shares | Vested | Expired | Outstanding year end 2023 | Vesting date |
|---|---|---|---|---|---|---|---|
A. El-Hoshy | 21,291 | - | 3,231 | - | - | 24,522 | 25-05-2025 |
A. El-Hoshy total | 21,291 | - | 3,231 | - | - | 24,522 | \u00a0 |
H. Badrawi | 21,291 | - | 3,230 | - | - | 24,521 | 25-05-2025 |
H. Badrawi total | 21,291 | - | 3,230 | - | - | 24,521 | \u00a0 |
M. de Vries | 13,686 | - | 2,075 | - | - | 15,761 | 25-05-2025 |
M. de Vries total | 13,686 | - | 2,075 | - | - | 15,761 | \u00a0 |
At 31 December 2023, all Restricted Stock Units awarded to Executive Directors are fully vested (2022: 14,751 awards outstanding).
\n| \u00a0 | Outstanding year end 2022 | Granted conditional | Granted Dividend Equivalent Shares | Vested | Expired | Outstanding year end 2023 | Vesting date |
|---|---|---|---|---|---|---|---|
A. El-Hoshy | 14,751 | \u00a0 | \u00a0 | (14,751) | \u00a0 | - | 14-02-2023 |
A. El-Hoshy total | 14,751 | - | - | (14,751) | - | - | \u00a0 |
In 2023, the total remuneration costs relating to the Non-Executive Directors amounted to USD 2.1 million (2022: USD 2.1 million) consisting of the elements in the table below:
\n2023 | Annual fixed fee | Audit committee membership | Additional fee | Nomination, governance and remuneration committee | Health safety environment committee | Travel Allowances | Total |
|---|---|---|---|---|---|---|---|
M. Bennett | 330,000 | - | - | 22,500 | - | 25,000 | 377,500 |
S. Schat | 165,000 | 22,500 | - | 27,500 | - | 15,000 | 230,000 |
D. Fraser | 165,000 | 22,500 | - | - | - | 25,000 | 212,500 |
G. Heckman | 165,000 | - | - | 22,639 | \u00a0 | 25,000 | 212,639 |
H. van de Kerkhof | 165,000 | 14,979 | - | - | 22,500 | 15,000 | 217,479 |
R.J. van de Kraats | 165,000 | 27,500 | - | 22,500 | - | 15,000 | 230,000 |
A. Montijn-Groenewoud | 165,000 | - | - | 22,500 | 27,500 | 15,000 | 230,000 |
N. Sawiris1 | 109,849 | - | - | - | 14,979 | 17,500 | 142,328 |
D. Welch | 165,000 | - | - | - | 22,500 | 25,000 | 212,500 |
J. Guiraud1 | 56,168 | 7,659 | - | 7,659 | - | 5,000 | 76,486 |
Total | 1,651,017 | 95,138 | - | 125,298 | 87,479 | 182,500 | 2,141,432 |
2022 | Annual fixed fee | Audit committee membership | Additional fee | Nomination, governance and remuneration committee | Health safety environment committee | Travel Allowances | Total |
|---|---|---|---|---|---|---|---|
M. Bennett | 300,000 | - | - | 7,500 | - | - | 307,500 |
S. Schat | 150,000 | 20,000 | - | 20,000 | - | - | 190,000 |
D. Fraser | 150,000 | 20,000 | - | - | - | - | 170,000 |
G. Heckman | 150,000 | - | - | 7,500 | \u00a0 | - | 157,500 |
H. van de Kerkhof | 150,000 | - | - | - | 7,500 | - | 157,500 |
R.J. van de Kraats | 150,000 | 25,000 | - | 7,500 | - | - | 182,500 |
A. Montijn-Groenewoud | 150,000 | - | - | 7,500 | 20,000 | - | 177,500 |
D. Welch | 150,000 | - | 449,6981 | - | 7,500 | - | 607,198 |
J. Guiraud | 150,000 | 20,000 | - | 7,500 | - | - | 177,500 |
Total | 1,500,000 | 85,000 | 449,698 | 57,500 | 35,000 | - | 2,127,198 |
On 23 February 2024, OCI N.V. has fully executed a EUR 400.0 million bridge loan facility. The facility bears interest at a rate of EURIBOR + 0.85%. The proceeds will be used to partially repay the OCI N.V. Revolving Credit Facility and to finance operational and capital expenditure requirements for the Group.
\nOn 6 March 2024, The Central Bank of Egypt announced a substantial increase to the interest rate and a transition to a floating exchange rate for the currency. This resulted in the devaluation of the Egyptian Pound against the US Dollar to approximately 0.0203 USD per EGP. This is a non-adjusting subsequent event.
\nOn 14 March 2024, OCI N.V. has convened an extraordinary shareholders meeting (EGM) to be held on 25 April 2024. The purpose of the EGM is to request shareholder approval for (i) the divestment of OCI\u2019s entire equity stake of 50% plus 1 share in the share capital of Fertiglobe Plc to Abu Dhabi National Oil Company P.J.S.C. (ADNOC) through its wholly-owned subsidiary, ADNOC Fertilisers (the \u201cTransaction\u201d); and (ii) the payment of an interim cash distribution of EUR 4.50 per share, subject to the completion of the Transaction, through a repayment of capital or, at the election of the shareholder, as a regular dividend. This will result in a distribution to shareholders scheduled for July 2024, subject to a statutory two-month creditor opposition period. The Board unanimously supports the Transaction, including the capital repayment. The convening notice and other materials regarding the EGM are available at www.oci-global.com.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-593": { "value": "\nThe service fees recognized in the financial statements 2023 for the service of PWC amounted to USD 6.0 million (2022 KPMG: USD 5.1 million). Other audit services provided to the Group mainly include the ESG limited assurance engagement, review of interim financial statements, other audits and a number of locally required additional audit and assurance procedures.
\nThe amounts per service category are shown in the following table:
\n| \u00a0 | Total service fee | of which The Netherlands | ||
|---|---|---|---|---|
$ millions | 2023 | 2022 | 20231 | 20222 |
Audit of group financial statements | 4.7 | 4.3 | 2.6 | 2.4 |
Other audit services | 1.3 | 0.8 | 0.6 | 0.7 |
Total assurance services | 6.0 | 5.1 | 3.2 | 3.1 |
Tax services | - | 0.1 | - | - |
Total | 6.0 | 5.2 | 3.2 | 3.1 |
Companies | Country | Percentage of interest | Consolidation method |
|---|---|---|---|
Fertiglobe plc1 | UAE | 50.00 | Full |
OCI Fuels B.V. | The Netherlands | 85.00 | Full |
OCI Methanol Marketing B.V. | The Netherlands | 85.00 | Full |
OCI Nitrogen B.V. | The Netherlands | 100.00 | Full |
BioMCN B.V. | The Netherlands | 85.00 | Full |
Iowa Fertilizer Company LLC1 | United States | 100.00 | Full |
OCI USA Inc. | United States | 85.00 | Full |
OCI Beaumont LLC | United States | 85.00 | Full |
N-7 LLC2 | United States | 50.00 | Full |
OCI Methanol Marketing LLC | United States | 85.00 | Full |
Key subsidiaries held via Fertiglobe plc1 | \u00a0 | \u00a0 | \u00a0 |
Ruwais Fertilizer Industries LLC (Fertil) | UAE | 100.00 | Full |
Egypt Basic Industries Corporation S.A.E. | Egypt | 75.00 | Full |
Egyptian Fertilizers Company S.A.E. | Egypt | 99.96 | Full |
Sorfert Alg\u00e9rie Spa | Algeria | 50.99 | Full |
Orascom Construction Industries S.A.E. | Egypt | 99.96 | Full |
Fertiglobe Distribution Limited | UAE | 100.00 | Full |
A full list of affiliated companies will be available for public inspection at the Commercial Registry in conformity with the provisions of Article 2:379 and 2:414 of the Dutch Civil Code.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-0": { "value": "OCI N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:549300NCMRGIBJYUOE57", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }