73349613 2024-01-01 2024-12-31 73349613 2024-01-01 2024-12-31 1 73349613 2024-01-01 2024-12-31 1 73349613 2024-01-01 2024-12-31 2 73349613 2024-01-01 2024-12-31 3 73349613 2024-01-01 2024-12-31 1 73349613 2024-01-01 2024-12-31 2 73349613 2023-01-01 2023-12-31 73349613 2024-12-31 73349613 2023-12-31 73349613 2023-12-31 fsa:ContributedCapitalMember 73349613 2023-12-31 fsa:RetainedEarningsMember 73349613 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 73349613 2024-01-01 2024-12-31 fsa:ContributedCapitalMember 73349613 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 73349613 2024-01-01 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 73349613 2024-12-31 fsa:ContributedCapitalMember 73349613 2024-12-31 fsa:RetainedEarningsMember 73349613 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 73349613 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 73349613 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 73349613 2023-01-01 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 73349613 2022-12-31 fsa:ContributedCapitalMember 73349613 2022-12-31 fsa:RetainedEarningsMember 73349613 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 73349613 2022-12-31 iso4217:DKK xbrli:pure Christian Vinten Management's StatementThe Executive Board and the Board of Directors have today discussed and approved the annual report of INEOS E&P A/S for the financial year 1 January - 31 December 2024.The annual report has been prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company's financial position at 31 De-cember 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024.In our opinion, Management's Commentary includes a fair review of the matters dealt with in the Manage-ment's CommentaryWe recommend the adoption of the annual report at the annual general meeting. Virum Mads Weng Gade Erik Fantoft Magnesen René Bak Lange Mads Weng Gade Chairman Deputy chairman To the shareholder of INEOS E&P A/S OpinionWe have audited the financial statements of INEOS E&P A/S for the financial year 1 January - 31 December 2024, which comprise the income statement, balance sheet, statement of changes in equity, notes, including a summary of significant accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31 Decem-ber 2024 and of the results of its operations for the financial year 1 January – 31 December 2024 in accor-dance with the Danish Financial Statements Act. Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and additional require-ments applicable in Denmark. Our responsibilities under those standards and requirements are further describ- ed in the Auditor’s responsibilities for the audit of the financial statements section of this auditor’s report. We are independent of the Entity in accordance with the International Ethics Standards Board for Accountants' In-ternation Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applic-able in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to pro-vide a basis for our opinion. Management’s Responsibilities for the financial StatementsManagement is responsible for the preparation of financial statements that give a true and fair view in accor-dance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquid-ate the Entity or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material mis-statement when it exists. Misstatements can arise from fraud or error and are considered material if, individu-ally or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suf- ficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten- tional omissions, misrepresentations, or the override of internal control.• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.• Conclude on the appropriateness of Management’s use of the going concern basis of accounting in prepa- ring the financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our au- ditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern.• Evaluate the overall presentation, structure and content of the financial statements, including the disclo- sures in the notes, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.• Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regar- ding the consolidated financial information of the entities or business units as a basis for forming an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on the management commentaryManagement is responsible for the management commentary.Our opinion on the financial statements does not cover the management commentary, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the management commen-tary and, in doing so, consider whether the management commentary is materially inconsistent with the finan-cial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether the management commentary provides the information required by relevant law and regulations.Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements by relevant law and regu-lations. We did not identify any material misstatement of the management commentary. Copenhagen DeloitteStatsautoriseret Revisionspartnerselskab 33963556 Lars Hillebrand Peter Kyhnauv-Vejgaard State-Authorised Public Accountant State-Authorised Public Accountant mne26712 mne42833 INEOS E&P A/S Teknikerbyen 5, 1. 2830 Virum www.ineos.com 73349613 Weidekampsgade 6 2300 København S Consolidated Financial The Company is included in the consolidated Financial Statements of INEOS StatementsUK E&P Holdings Limited.The consolidated financial statements of INEOS UK E&P Holdings Limited can be obtained by contacting INEOS E&P A/S or at:https://beta.companieshouse.gov.uk/company/SC20045925License overviewOil and gas Producing field under Oil and gas field Ownership Oil and gas develop-under evaluation LicenseOperatorInterestfieldmentincluding CCS1/06 Hejre Extension 48,00%INEOS E&P xA/S1/90 Luita 43,59%INEOS E&P xA/S3/09 Solsort 35,00%INEOS E&P xA/S4/95 Nini Field 57,14%INEOS E&P xA/S4/98 Solsort 35,00%INEOS E&P xA/S5/98 Hejre 60,00%INEOS E&P xA/S6/95 Siri 70,00%INEOS E&P xA/S7/86 Lulita Part 43,59%INEOS E&P xA/S7/89 Syd Arne Field 36,79%INEOS E&P xA/S16/98 Cecilie Field 56,41%INEOS E&P xA/SC2023/1 Iris (CCS) 40,00%INEOS E&P xA/SWintershall 40,00%xC2024/1 Greenstore (CCS)Dea Interna- tional GmbH INEOS E&P, CVR no. 73349613100%100%100%100% INEOS E&P 100% INEOS E&P (Petroleum INEOS E&P (Siri) INEOS Energy INEOS Energy (Norge) Denmark) ApSUK Ltd., (Lulita) DK A/S, (Syd Arne) ApSPetroleum DK ASCompany no. CVR no. CVR no. CVR no. Reg. no. 979 932 026500 06671453133162711773589118545100%Siri, branch of INEOS E&P (Siri) UK Ltd., CVR no. 20771593Financial HighlightsKey figuresIncome statement (DKKm)20242023202220212020Revenue 1.272 843 1.152 860 535EBITDA 563 148 316 175 237(Loss)/profit before financial income and expenses -923 -157 726 589 399Net financial items -449 -918 2.100 668 -651(Loss)/profit for the year-716-9642.6281.668-252Balance Sheet (DKKm)Total assets 7.491 7.694 11.046 9.970 8.282Investment in property, plant and equipment 511 428 12 0 28Equity1.6622.3786.3423.5631.876Financial ratiosEBIT margin -72,55% -18,65% 63,02% 68,45% 74,56%Return on assets -12,32% -2,04% 6,57% 5,91% 4,82%EBITDA margin 44,29% 17,54% 27,43% 20,32% 44,37%None-financial dataAverage number of employees (FTE's) 285 265 245 183 195OSHA Recordable injury rate for Siri Area(per 200,000 hours)* 0,18 0,50 0,98 0,00 0,45Discharging of oil into the sea, tonnes* 3,29 2,43 2,87 0,99 1,10Rejection of produced water, %* 86,9% 86,2% 87,0% 99,0% 98,8%Gas flaring from platforms (flaring), million Nm3*2,902,932,081,782,09The financial ratios are calculated in accordance with the Danish Finance Society's recommendations and gui-delines. For definitions, see the summary of significant accounting policies.* With effect from April 1, 2022, INEOS E&P A/S took over as the operator of the Syd Arne licence. Therefore, 2022 - 2024 numbers include both Syd Arne and Siri Area. Financial reviewThe Company's income statement for the year ending 31 December shows a loss of DKK 716 million, and the balance sheet end 31 December 2024 shows equity of DKK 1.662 million.Revenue totaled DKK 1.272 million, which is DKK 429 million higher than in 2023. The increase is primarily due to first oil from Solsort. EBITDA increased by DKK 416 million to DKK 563 million in 2024. The increase was mainly due to first oil from Solsort EBIT decreased by DKK 766 million to DKK -923 million. The decrease is mainly due to recognising of impair-ments related to mainly Syd Arne Area but also Siri Area due to lower reserves than expected.Profit before tax decreased by DKK 297 million to DKK -1,372 million. The decrease is mainly the due to the circumstances descripted above, lower financial income offset by less negative result from subsidiaries. The lower negative result from subsidaries compared to 2023, is mainly related to INEOS Energy (Syd Arne) ApS offset by INEOS (Petroleum Denmark) ApS.Profit for the year increased by DKK 248 million to DKK -716 million. The increase is mainly due to the com-ments above and an adjustment of the deferred tax asset of DKK 656 million to DKK 992 million.Financial performance for 2024 was lower than expected due to impairment on Syd Arne area and Siri area. Production, operations and development updateOperational performance remained relatively strong in the year with reliability of 93.9% (2023: 92.8%) on ourexisting operated fields. Sales averaged 13.1 kboe of oil and gas per day (2023: 8.0 kboe per day) with appro-ximately 42% from the operated field Syd Arne (2023: 81%), 46% from the operated field Solsort (2023: 0%), 11% from the operated fields Siri, Nini and Cecilie (2023: 19%) and 0% from the non-operated Lulita field (2023: 0%). Siri AreaThe Siri Area comprises the Siri field, where the processing platform and associated wells are located along with satellite tie-back fields Stine, Nini, Nini East and Cecilie. Oil is exported by tanker and gas and produced water reinjected into the Siri field. The Siri license, comprising of Siri and Stine is 100% owned and operated by INEOS E&P A/S whereas the Nini (Nini and Nini East) and Cecilie licenses are joint ventures between the INEOS E&P A/S (Operator, 57.1% and 56.4% respectively) and Wintershall Dea International GmbH. Produc-tion from Siri commenced in 1999 with the satellite developments following in the next decade.Operational performance over the course of 2024 was challenged by the poor performance of the 26C com-pressor. During the summer of 2024, work completed to replace the complete High-Speed coupling and realign the compressor against the gearbox. This stabilised production towards expected levels. In October 2024, vi-brations on the main generator, prompted the shutdown of the main gas compressor, affecting availability of lift-gas and consequently lowering the level of oil production. During the November turn-around several activities were undertaken to investigate and correct the vibration issues. Coupling, bearings and diode bridges were in-spected, however no fault or excessive wear was observed.Production, operations and development update (continued)Siri AreaMeasurements indicate a failure in the generator rotor, which causes uneven heat distribution, resulting in vi-brations. It was decided to remove the rotor from the generator and ship to the manufacturer (Brush) for repair. The rotor is due back on Siri in Q3 2025, with production shut in until then. Syd Arne FieldThe Syd Arne field is a joint venture between the INEOS E&P A/S (Operator, 36.8%), INEOS Energy (Syd Arne) ApS (61.5%) and Danoil (1.7%). Production from the field commenced in 1999.2024 was the third full year with the Group responsible for the daily running of operations. Uptime of the facili-ties was very high for the entire year. During the month of June, a planned turnaround was executed success-fully by mid-month. The SAE-01 producer well was shut in mid-year due to integrity issues, but was repaired in February 2025. A conversion of the SA-02 producer well to water injection is planned in 2025.Execution of the Solsort West Lobe tieback project to the Syd Arne facilities, for processing and export, was completed with first oil in March 2024 and offshore execution was finished by September 2024. Maturation of a Syd Arne infill well in the Ekofisk West Flank area is ongoing with FID targeted in end 2025.Lulita FieldThe Lulita field is a joint venture between Total (Operator, 15.6%), INEOS E&P A/S (21.8%), INEOS Energy (Lulita) ApS (18.2%), Shell (18.4%), Noreco (10%), Nordsøfonden (10%) and Chevron (6%). Production com-prises a single well drilled from the Harald platform. The well fluids are processed on Harald and oil and gas is exported separately to the Tyra complex for onwards distribution. Production is currently shut in and, accor-ding to TotalEnergies, expected to restart in Q3 2025 following completion of the Tyra Redevelopment Project which is a prerequisite for Lulita production to resume. The Lulita license expires in 2026. Application for licence extension will be submitted during 2025.Hejre FieldThe Hejre area comprises of licenses 5/98 (INEOS E&P A/S (60%), INEOS E&P (Petroleum Denmark) ApS (15%) and INEOS E&P (Norge) Petroleum DK AS (25%)) and 1/06 between INEOS E&P A/S (48%), INEOS E&P (Petroleum Denmark) ApS (12%) and INEOS E&P (Norge) Petroleum DK AS (20%) and Nordsøfonden (20%). Development and exploration activities takes place in license 5/98 whilst only exploration activities takes place in license 1/06. Key exploration prospects called finke is taking place in 1/06. INEOS isworking against a drill/drop decision sometime in 2025.The ongoing Hejre development project is in the FEED phase and is expected finalized by Q3, 2025. The plan is for a tie-back to Syd Arne for processing and export of oil and gas. Based on encouraging results, a non-binding Plan for Development and Operation (PDO) was submitted to the authorities in December 2022 and was approved April 26th, 2024. Final investment decision is expected end-2025 with first oil expected in 2028.Solsort FieldThe Solsort license is a joint venture between INEOS E&P A/S (35.1396%), INEOS E&P (Petroleum Denmark) ApS (27.66%), INEOS Energy (Syd Arne) ApS (4.7982%), Nordsøfonden (18.44%) and Danoil (13.9622%).Solsort FieldThe Solsort West Lobe development (execution) was completed by September 2024, after having drilled one oil producer and one water injector well from the Syd Arne North Satellite platform and carrying out minor modi-fications to the Syd Arne facilities. First oil was achieved by early March 2024 and production performance has been better than expectations. The project was approved by INEOS and the Solsort Partnership in September 2022.CCS projectsIrisThe Iris license was awarded in February 2023 to a joint venture between the INEOS (Operator, 40%), Winter-shall Dea International GmbH (today a subsidiary of Harbour Energy) (40%) and Nordsøfonden (state-participa-tion, 20%). The license was awarded as a CO2 Exploration License, whereby the joint venture has a right and duty to explore for areas within the license where a suitable site for permanent CO2 storage can be established. The license area includes the areas of the Siri, Stine, Nini, Nini East and Cecilie fields. A first site suitable forCO2 storage has been identified by the joint venture within the Exploration License, and an application grantinga permanent Storage License has been filed with the Danish authorities in February 2024. It is the intention to further sites for permanent storage of CO2 within the Exploration License in the coming years.Greensand ProjectAfter the successful full value chain CO2 pilot project conducted Q1, 2023, the Greensand area has been ma-tured during 2024 following the below 2 tracks: 1. CCS Future – comprising intermediate onshore storage, and offshore transport and storage of bio-genic CO2 from biomethane facilities. in the Nini West reservoir facilitated by direct ship injection into an existing well. The project aims at storing 2.400.000 tons of CO2 during the project lifetime. The project was sanctioned by all IRIS licence partners on 9 December 2024 based on agreements across the entire value chain. Furthermore, the project has signed a Final Grant Agreement with the EU Innovation Fund following a successful application and subsequent election for support by the EUIF.2. CCS full scale – inclusion of additional Nini complex reservoirs, building further CO2 storage capa-city and ramp up to a capacity of up to 1.5 million tons per year, provided relevant permits and vo-lume contracts for CO2 are in place. This concept entails more offloading points, more injection wells and chartering additional CO2 carriers with injection, heating and offshore sea-state capabili-ties. An application for permanent storage of CO2 within the context of the Greensand Expansion project is expected to be submitted by February 2026.Esbjerg Harbor Terminal HubThe Esbjerg Harbor Terminal is part of the Greensand Future project and comprises a truck receiving terminal and intermediate CO2 storage suitable for supporting the Greensand Future Project. INEOS as the IRIS opera-tor has entered agreements for renting the facility from the Port of Esbjerg in December 2024 and INEOS, as IRIS Operator, has been selected as contractor for establishing the terminal facilities.GreenstoreThe Greenstore CO2 exploration license was awarded in June 2025 to a partner group (equity): Wintershall Dea International GmbH as operator (today a subsidiary of Harbour Energy) (40%), INEOS Energy (40%) and Nordsøfonden (state participation with 20%). The 3-year license work programme includes acquisition of 3D seismic covering the contemplated geological storage structure in 2025 and drilling of 3 consecutive appraisal Greenstone (continued)wells in 2026. Based on the results and other maturation activities, the Partner group is looking to a potential investment decision in 2028 following successful approvals including a storage site development plan approval by the Danish Energy authorities.Greenport Scandinavia CO2 Import and Export Harbor Terminal Hub ProjectDuring 2023, the project was established and the scope of work developed in collaboration between the 7 part-ners including INEOS Energy. The project has been partially funded Just Transition Fund. The Greenport Scan-dinavia work in 2024 comprised of maturation work related to the development of a CO2 import/export terminal hub in the Port of Hirtshals. The intention of the CO2 hub is to connect (by Truck, Ship or Pipeline) to the regio-nal CO2 storage sites under development e.g. Greensand and Greenstore and offer this as a service to future customers in the European region. The work on Greenport Scandinavia is planned to continue in 2025 with fo-cus on aligning relevant CCS value chain time schedules.Market developmentBrent Crude and US dollarThe average price of brent crude in 2024 was approximately 81 USD/BBL, which is a 2 USD/BBL decrease compared to 2024. Brent crude started 2024 with an increase in prices and topped in beginning of April with a price of 93 USD/BBL. Following April the prices has been very unstable with prices around 76 USD/BBL in be-ginning of June to 89 USD/BBL in beginning of Juli. After July prices started to decent and traded between 70-80 USD/BBL and ended at 75 USD/BBL at year-end 2024.The USD exchange rate started 2024 at 6.74 DKK/USD but decreased during the year and closed at 7.21 DKK/USD.ProductionOil and gas production for INEOS E&P A/S totaled 2.4 million boe, up 72% from 2023. Increase in produc-tion is mainly due to first oil from Solsort in 2024 offset of natural decline in reservoir from existing fields.InvestmentsInvestments held by INEOS E&P A/S consist of technical installations on South Arne and Siri. Further, in 2024INEOS E&P A/S has completed the Solsort development project. Capital expenditure in 2024 amounted to DKK 511 million, as compared to DKK 428 million in 2023. Future outlookThe Company continues to monitor the ongoing Russian military hostilities in Ukraine and now the hostilities in the Middle East that may disrupt or curtail its operations or development activities. The Company is actively monitoring any factors and events that could adversely affect the Company and mitigating measures are imple-mented where appropriate.The Company is reviewing its strategy but will continue to pursue growth opportunities through further develop-ments in Denmark.The Company looks forward to the coming years with optimism in developing near term resources in a safe, reliable and profitable manner.Based on the uncertainties related to oil prices, the Company expect a loss before tax and income from sub-Future outlook (continued)sidaries between DKK 400 million and DKK 500 million. Further, we expect a increase in production by 5-15% due to first full year of production from Solsort in 2024. SubsidariesThe subsidaries in Denmark, UK, and Norway have contributed a loss of DKK 436 million in 2024. The loss ismainly related to INEOS (Petroleum Denmark) ApS and relates to impairment and write-down of deferred tax assets.At the end of 2024, INEOS E&P A/S (including subsidiaries) had 12 licenses in Denmark.Special risksManagement of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks affecting the Company are considered to relate to the safe and reliable operation of fields, specifically those for which the Company is operator, management of the impact of oil and gas price vola-tility on the revenues and cash flows as well as the ability to find and exploit gas deposits in the DK sector of the North Sea. The Company deploys highly skilled and experienced resources to identify, evaluate and financially assess development opportunities, applies the best safety and environmental practices in the production of pro-ven oil and gas reserves and adopts robust financial management which, together with appropriate monitoring of business performance seeks to mitigate such risks.Financial riskThe Company's operations are exposed to a variety of financial risks that include effects of the commodity price risk, credit risk, liquidity and cash flow risk, currency risk and interest rate risk. The Company has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the Com-pany where appropriate.The main financial risk which could affect the company are set out below:a) Commodity price risk: Oil and gas is traded commodities with open market prices. The Company is exposed to fluctuations in market prices to the extent that it has not entered into fixed price agree-ments. The directors regularly review cost-benefit of entering into price hedges to minimise risk. The company has no price hedging in place.b) Interest rate risk: The company has a mix of financing facilities including deposits to subsidiaries and shareholder deposit and loan facility. Deposits to subsidiaries and shareholders bears interest at variable rates based on SOFR and; the shareholder loan bear interest at variable rates based on CIBOR. The directors review the interest rate and assess the cost-benefit of interest rate hedging. The company has no interest rate hedging in place.c) Currency risk: The Company undertakes transactions in various currencies, and the Company ma-nages this risk by matching receipts and payments in the same currency (where possible) and mo-nitoring the movements in exchange rates. The Company also has shareholder and subsidiary loan and deposits facility in USD, GBP, NOK and DKK. Although the significant majority of transactions are denominated in USD and DKK (the Company's functional currency). The directors continue to review the cost-benefit of currency hedging. The company has no currency hedging in place.d) Credit risk: The Company has in place policies and procedures to mitigate the risk that customers default on amounts owed to the Company. Exposure to credit risk is further minimised by the na-ture of the customers with which the Company deals.Financial risk (continued)e)Liquidity and cash flow risk: The Company's operating assets generate sufficient positive cash flows to cover the Company's costs and development activities and service the Company's own obliga-tions. The Company has access to liquidity, through participation in external financing and support from shareholders to manage such risks.Recognition and measurement uncertaintiesThe recognition of Deferred Tax, Fixed Assets (impairments) and decommissioning liabilities are all subject to a high degree of uncertainty due to the level and nature of assumptions made when estimating the outcome of subsequent events. The assumptions which would change future measurement includes: - General price development or development in market prices - Expected useful live of production assets - Weighted average cost of capital (WACC) and risk free rate - Exchange rates, etc. - Development of existing technologiesThe recognition and measurement of items in the financial statements is not subject to any other significant uncertainty.Unusual mattersThe Company's financial position at 31 December 2024 and the results of its operations for the financial yearended 31 December 2024 has been affected by the unusual matter described below.During the current financial year, management identified an error in the financial models used to calculate the decommissioning provision. The error related specifically to foreign exchange (FX) rates applied in the underly-ing assumptions for the financial years ended 2022 and 2023.The issue arose from the use of a USD FX rate sourced from a third-party provider, which was inconsistent with the internal FX rate ranges approved and utilised by the Company. As a result, the decommissioning provision recognised in the financial statements for 2022 and 2023 was misstated.The incorrect application of the FX rate impacted both the total liability recognised in relation to the decommis-sioning provision and the related expense recognised in the consolidated statement of profit or loss. The finan-cial impact of the restatement is summarised in the section restatements under accounting policy. In addition, the comparative figures in the financial highlights have also been restated.Statutory report on corporate governanceBusiness modelThe Company's main activity is exploration and production of oil and gas in the Danish part of the North Sea.Oil and gas are sold to primarily oil refineries in Europe.A part of our strategy is to transform the business into a leading North Sea oil and gas company in terms of returns and cash generation. Furthermore, we continue to assess other opportunities for value creation, with investments focused on field extensions or build-out near existing producing assets as well as already initiated developments. Main activityThe company’s objects are to engage in activities in the energy sector and ancillary activities, including sub-soil CO2 storage activities. Corporate social responsibilityINEOS publishes a group sustainability report in relation to the legal entity INEOS AG, which is prepared in accordance with GRI standards (GRI 1 Foundation 2021) and assured by KPMG. Our 2024 group report is available on our website: www.ineos.com/globalassets/sustainability/sustainability-reports/ineos_sustainabilityreport_2024_250430.pdfAs a subsidiary of INEOS AG, INEOS Energy (Syd Arne) ApS is included within the reporting boundary of the INEOS group sustainability report.Group-wide policies include our Code of Conduct, Supplier Code of Conduct, SHEQ policy, 7 Life-saving Rules,20 Safety Principles, INEOS Group Guidance Notes and ESG procedures. INEOS’ climate targets to reduce operational emissions by 33% by 2030 (compared to 2019) and reach net-zero emissions by 2050 also apply at group level, as do our 2025 and 2030 polymer pledges.Human rightsWe refer to section 3.2 - 3.2.3 in the INEOS Group sustainability report which is available on our website:www.ineos.com/globalassets/sustainability/sustainability-reports/ineos_sustainabilityreport_2024_250430.pdfAnti-Corruption PolicyWe refer to section 4.1 - 4.1.3 in the INEOS Group sustainability report which is available on our website:www.ineos.com/globalassets/sustainability/sustainability-reports/ineos_sustainabilityreport_2024_250430.pdfSocial and employee conditionsWe refer to section 3.1 - 3.1.5.4 in the INEOS Group sustainability report which is available on our website:www.ineos.com/globalassets/sustainability/sustainability-reports/ineos_sustainabilityreport_2024_250430.pdfEnvironmental and climate changeWe refer to section 2.1 - 2,5.4.2 in the INEOS Group sustainability report which is available on our website:www.ineos.com/globalassets/sustainability/sustainability-reports/ineos_sustainabilityreport_2024_250430.pdf Data ethicsINEOS E&P A/S has not defined a separate "Data ethics Policy". INEOS E&P A/S have defined General Data Protection Policy, Data Breach Policy and Data Retention Policy which defines rules on how data is managed and protected. Any violation of the policy or other internal procedures may be reported by employees through the group's whistleblower system or to the company's Compliance Officer. No report were filed in 2024. Report on payments to authoritiesPursuant to section 99c of the Danish Financial Statements Act, INEOS E&P A/S is obliged to account for pay-ment authorities. In 2024 INEOS E&P A/S has made payment of DKK 2,829 thousand regarding Nitrogen Oxide (NOx) fee. 1272104000 842656000 26408000 30154000 4448000 49276000 449166000 525733000 844898000 297801000 195474000 150040000 1486272000 304933000 86015000 0 -922863000 -157172000 -436192000 -1020540000 120599000 241543000 133888000 139194000 -1372344000 -1075363000 -656219000 -111000000 -716125000 -964363000 132255000 116761000 0 116000 132255000 116877000 2604000 30000 1986154000 2390529000 163046000 285414000 222278000 247315000 2374082000 2923288000 884051000 1320243000 1060612000 988455000 992219000 336000000 2936882000 2644698000 5443219000 5684863000 14592000 25697000 381663000 150389000 1408257000 1132375000 122047000 190317000 0 11766000 120541000 154933000 2047100000 1665477000 810000 343226000 2047910000 2008703000 7491129000 7693566000 500000000 500000000 1161915000 1878040000 1661915000 2378040000 4684741000 4242095000 200450000 226453000 4885191000 4468548000 37917000 34931000 298459000 332545000 102381000 21744000 147592000 251838000 357674000 205920000 944023000 846978000 5829214000 5315526000 7491129000 7693566000 500000000 1878040000 0 2378040000 0 -716125000 0 -716125000 500000000 1161915000 0 1661915000 500000000 2497878000 3000000000 5997878000 344525000 344525000 500000000 2842403000 3000000000 6342403000 0 -964363000 0 -964363000 0 0 3000000000 3000000000 500000000 1878040000 0 2378040000 2024 2023DKK'000 DKK'0001RevenueType of goods/servicesOil and gas 1.256.387 796.124 Other income relating to oil and gas production 15.717 46.532 Total1.272.104842.656Geographical information by location of customersDenmark 111.949 32.639 Rest of EU 733.668 247.084 Rest of world 426.487 562.933 Total1.272.104842.656Timing of revenue recognition from customersAt a point in time 1.160.155 812.522 Over time 111.949 30.134 1.272.104842.656 2Other operating incomeChange in decommissioning provision3.527 - Income from subleasing right-of-use assets 19.498 28.753 Compensation - Loss of production 3.229 - Sale of materials 154 1.149 Other - 252 26.40830.1545Other operating incomeChange in decommissioning provision without a related asset86.016 - 86.016- 3Staff costsWages and salaries 345.925 309.846 Pensions 27.709 25.692 Other staff costs 1.480 1.719 375.114 337.257 Payroll capitalised and charged to partners etc. -179.640 -187.217 195.474150.040According to section 98 B(3) of the Danish Financial Statements Act, Remuneration to the Executive Board has not been disclosed. 285 265 2024 2023DKK'000 DKK'0004Depreciation, amortisation and impairment of intangible assetsand property, plant and equipmentAmortisation of intangible assets 116 199 Depreciation of tangible assets 309.868 284.900 Impairment 1.138.215 366.600 Reserval of impairment of tangible assets - -382.981 Depreciation of leased assets 38.074 36.215 1.486.272304.933 6Income from investments in subsidiariesNet profit/loss for the year -436.192 -953.885 -436.192-953.885 7Financial incomeBank interest 3.038 7.157 Interest received from group companies 113.026 234.165 Other interest income 4.535 221 120.599241.543 8Financial expensesBank interest 1.848 1 Financial expenses to group companies 13.882 18.313 Other financial expenses 2.225 4 Exchange loss 1.757 13.468 Lease interest 8.458 9.117 Interest element, provision 105.718 98.291 133.888139.194 9Tax on profit for the yearDeferred tax for the year -656.219 -111.000 -656.219-111.000 -716125000 -964363000 -716125000 -964363000 11Intangible assetsSoftware Intagible TotalDKK'000 DKK'000 DKK'000Cost at 1 January 35.782 116.761 152.543 Additions for the year - 74.680 74.680 Disposals for the year - -59.186 -59.186 Cost at 31 December 35.782 132.255 168.037 Impairment losses and amortisation at 1 January 35.666 - 35.666 Amortisation for the year 116 - 116 Impairment losses and amortisation at 31 December 35.782 - 35.782 Carrying value at 31 December-0132.255132.255 12Tangible assetsOther fixtures and fittings, Production tools and Production assets under equipmentassetsconstructionTotalDKK'000 DKK'000 DKK'000 DKK'000Cost at 1 January 1.800 17.471.752 7.179.764 24.653.316 Effect of error in decommissioning calculation - -68.427 -21.708 -90.135 Cost at 1 January - as restated 1.800 17.403.325 7.158.056 24.563.181 Additions for the year 2.693 354.451 154.149 511.294 Change in decommissioning provision - 412.724 - 412.724 Transfers for the year - 276.518 -276.518 - Disposals - -105 - -105 Cost at 31 December 4.493 18.446.914 7.035.688 25.487.094 Impairment losses and depreciaiton at 1January1.770 15.081.223 6.894.350 21.977.343 Effect of error in decommissioning calculation - -68.427 -21.708 -90.135 Impairment losses and depreciaiton at 1January - as restated1.770 15.012.796 6.872.642 21.887.208 Depreciation for the year 119 324.572 324.691 Impairment 1.138.215 1.138.215 Disposals - -14.823 - -14.823 Impairment losses and depreciaiton at 31December1.889 16.460.760 6.872.642 23.335.291 Carrying amount at 31 December2.6041.986.154163.0462.151.803Interest expenses recognised as part of cost of assets - - - - Due to change in key assumptions and lower prices compared to 2023 an impairment of 873 million is recognised re-lated to Syd Arne. Further, a impairment of 265 million has been recognised related to the Siri area. Key assumptions are disclosed by Group (INEOS UK E&P Holdings Limited) in note 9 of the financial statements for INEOS UK E&P Holdings Limited. 13Lease assetsLand and Furniture and buildingsequipmentTotalDKK'000 DKK'000 DKK'000Cost at 1 January 183.864 193.961 377.825 Lease modifications 6.452 6.584 13.037 Disposals -35.775 -35.775 Cost at 31 December 190.316 164.770 355.086 Depreciaiton at 1 January 49.229 81.281 130.510 Depreciation for the year 10.988 27.086 38.074 Disposals -35.775 -35.775 Depreciaiton at 31 December 60.217 72.591 132.808 Carrying amount at 31 December130.09992.179222.278The Company leases a number of assets as part of its activities. This primarily includes its offices, storage and vessel charter. Some leases will have payments that vary with market interest or inflation rates. The Company’s obligations are secured by the lessors’ title to the leased assets for such leases. Amount recognised in profit and loss2024 2023DKK'000 DKK'000Expense relating to short-term leases for which recognition exemption is applied 168.314 217.966 Expense relating to low value leases for which recognition exemption is applied 108 104 Income from subleasing right-of-use assets 19.278 28.418 Interests on lease debt expensed in profit (loss) were DKK 8.5 million in 2023 (2023: DKK 9.1 million).Lease liabilitiesMaturity analysis - contractual undiscounted cash flowsWithin 1 year 45.423 43.078 Between 1 and 5 year 125.830 149.019 Over 5 years 112.404 121.220 Less: impact on discounting -45.290 -51.933 Balance at 31 December238.367261.384Current 37.917 34.931 Non-current 200.450 226.453 Total238.367261.384Commitment to short term leases as at 31 December 55.546 169.667 Commitment to low value leases as at 31 December 114 108 Total commitment55.660169.774 2024 2023DKK'000 DKK'00014Investments in subsidiariesCost at 1 January 1.995.981 2.320.981 Disposals for the year - -325.000 Cost at 31 December 1.995.981 1.995.981 Revaluations at 1 January -675.738 898.966 Effect of error in decommissioning calculation - 151.051 Revaluations at 1 January - as restated -675.738 1.050.017 Net profit for the year -436.192 -1.020.540 Dividend - -1.030.215 Disposals for the year - 325.000 Revaluations at 31 December -1.111.930 -675.738 Carrying amount at 31 December884.0511.320.243Investments in subsidiaries are specified as follows:Votes and Net profit/loss for the NameownershipPlace of registered officeEquityyearINEOS E&P (Siri) UK Ltd. 100% -104.816 -41.593 London, United KingdomINEOS Energy (Lulita) A/S 100% 79.387 2.467 Virum, DenmarkINEOS Energy (Syd Arne) ApS 100% 858.000 -23.987 Virum, DenmarkINEOS E&P (Petroleum Denmark) ApS Virum, Denmark 100% 253.058 -338.686 INEOS E&P (Norge) Petroleum DK AS Stavanger, Norway 100% -201.578 -34.393 884.051 -436.192 2024 2023DKK'000 DKK'00015Receivables from group enterprisesBetween 1 and 5 years 1.060.612 988.455 Non-current portion 1.060.612 988.455 Other short-term debt to subsidiaries 1.408.257 1.132.375 2.468.8692.120.8302024 2023DKK'000 DKK'00017Cash at bank and in handAvailable cash 810 546 Licenses and restricted cash - 342.680 810343.226 16Deferred tax assetDeferred tax asset at 1 January 336.000 225.000 Amounts recognised in the income statement for the year 656.219 111.000 Deferred tax at 31 December992.219336.000Property, plant and equipment (chapter 2 taxes) 677.962 - Tax loss carry-forward (ordinary taxes) 254.087 - Decommissioning (chapter 2 taxes) 60.170 225.000 992.219225.000INEOS E&P A/S has recognized a deferred tax assets of DKK 992 million (2023: DKK 336 million).16Deferred tax asset (continued)The basis for the recognition has been the model applied to determine impairment of non-financial assets adjusted for certain items to determine the future estimated taxable income. The increase in recognised deferred tax assets is pri-marily due to expected higher long-term oil prices compared to last year. The recognised deferred tax asset is related to Hydrocarbon chapter 2 taxable income.The recognised deferred tax assets relates to tax losses and timely diffreences, which will be utilised to offset future ordinary income and future chapter 2 income in jointly taxed subsidiaries. There is a non-recognized deferred tax assets of DKK 18,458 million (2023: DKK 18,266 million), which relates partly to unutilised losses DKK 9,990 million (2023: DKK 9,939 million) in hydrocarbon income and partly to timely differen-ces DKK 8,468 million (2023: DKK 8,327 million). It is considered more likely than not, that these losses and timely differences can not be utilised in the future. 18EquityThe share capital consists of 500,000 shares of a nominal value of DKK 1,000. No shares carry any special rights.The share capital has developed as follows:2024 2023 2022 2021 2020DKK'000 DKK'000 DKK'000 DKK'000 DKK'000Share capital at 1 January 500.000 500.000 500.000 500.000 500.000 Share capital at 31December500.000500.000500.000500.000500.000 2024 2023DKK'000 DKK'00019ProvisionsBalance at 1 January 4.448.015 4.250.528 Effect of error in decommissioning calculation - -193.473 Balance at 1 January - as restated 4.448.015 4.057.055 Provision made during the year 163.868 47.303 Provision used during the year -88.005 -69.148 Change in estimated, interest and other factors 518.537 412.805 Balance at 31 December5.042.4154.448.015Provsions by category:Decommissioning obligations 4.899.692 4.274.815 Onerous contracts 79.200 74.100 Other provisions 63.523 99.100 5.042.4154.448.01519ProvisionsThe expected due dates of other provsions are:Within one year 357.674 205.920 Between 1 and 5 years 1.975.467 2.128.193 Over 5 years 2.709.274 2.113.902 5.042.4154.448.015Provisions comprises of decommissioning obligations relating to demolition and decommissioning of the Company's oil and gas fields, provision for onerous contracts and other provision. Decommissioning obligations are measured at the present value of the future liability in respect of decommissioning and restoration as expected at the balance sheet date. The value of the decommissioning provision is recognised in property, plant and equipment and depre-ciated together with the associated asset. The values of the provision for onerous contracts is recognised in the In-come Statement as impairment of tangible assets. 20Payables to group enterprisesBetween 1 and 5 years - - Non-current portion - - Other short-term debt to subsidiaries 102.381 21.744 102.38121.744 21Fee to auditors appointed at the general meetingDeloitteAudit fee 943 938 Other services 23 25 966963 22Subsequent eventsNo events have occurred after the balance sheet date which could significantly affect the Company's financial position. 23Contingent assets, liabilities and other financial obligationsContingent liabilitiesAccording to legislation, INEOS E&P A/S are liable to pay compensation for any environmental accidents or other types of damage caused by our oil and gas activities, even when there is no proof of negligence (strict liability). We have taken out insurance to cover any such claims.INEOS E&P A/S is taxed jointly with all Danish subsidiaries. As management company, the company has unlimited and joint and several liability together with the other jointly taxed companies for Danish income taxes and withholding taxes on dividends, interest and royalties within the jointly taxed companies.GuaranteesINEOS Holdings AG has furnished the Danish Ministry for Economic Affairs and the Interior with guarantees for fulfil-ment of obligations and liability in damages towards the Danish State or third parties incurred by INEOS E&P A/S in connection with the company’s participation in exploration and production licences, irrespective of whether the obli-gations and liability rest on INEOS E&P A/S alone or jointly and severally with others. The guarantees are not capped, but cannot exceed a sum corresponding to twice INEOS E&P A/S’s share of each obligation or liability. 24Related parties and group informationTransactions with related partiesAccording to the Danish Financial Statement Act section 98 c transactions with related parties are not disclosed as all transactions have been affected at arm's length.Group informationINEOS E&P A/S immediate parant company is INEOS UK E&P Holdings Limited, United Kingdom (100 percent own-ership). The ultimate parent is INEOS Limited, a company incorporated in the Isle of Man.INEOS E&P A/S is included in the consolidated financial statements prepared by INEOS UK E&P Holdings Limited, United Kingdom.The consolidated financial statements of INEOS UK E&P Holdings Limited can be obtained by contacting INEOS E&P A/S or at:https://beta.companieshouse.gov.uk/company/SC200459 Basis of preparationThe annual report of INEOS E&P A/S for 2024 has been prepared in accordance with the provisions of the Dan-ish Financial Statements Act applying to large enterprises of reporting class C as well as selected provisions of the International Financial Reporting Standards approved by EU.The annual report for 2024 is presented in Thousand Danish Kroner (DKK '000).RestatementDuring the current financial year, management identified an error in the financial models used to calculate the decommissioning provision. The error related specifically to foreign exchange (FX) rates applied in the underly-ing assumptions for the financial years ended 2022 and 2023.The issue arose from the use of a USD FX rate sourced from a third-party provider, which was inconsistent with the internal FX rate ranges approved and utilised by the Company. As a result, the decommissioning provision recognised in the financial statements for 2022 and 2023 was misstated.The incorrect application of the FX rate impacted both the total liability recognised in relation to the decommis-sioning provision and the related expense recognised in the consolidated statement of profit or loss. The finan-cial impact of the restatement is summarised in the table below. In addition, the comparative figures in the fi-nancial highlights have also been restated.Restate-Restated2023 2023mentDKK'000 DKK'000 DKK'000Profit and lossAmortisation, depreciation, impairment losses on intangible assets and property, plant and equipment -214.520 -90.413 -304.933Income from investments in subsidiaries -953.885 -66.655 -1.020.540Financial expenses -144.157 4.963 -139.194Profit before tax-923.258-152.105-1.075.363Balance sheetInvestments in subsidiaries 1.235.847 84.396 1.320.243Retained earnings 1.685.620 192.420 1.878.040Provisions (non-current) 4.368.608 -126.513 4.242.095Provisions (current) 187.430 18.490 205.920Liabilities and equity7.609.16984.3977.693.566Basis of recognition and measurementIncome is recognised in the income statement as earned, including value adjustments of financial assets and liabilities. All expenses, including amortisation, depreciation and impairment losses, are also recognised in theincome statement.Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the company's and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company's and the value of the liability can be measured reliably.On initial recognition, assets and liabilities are measured at cost. On subsequent recognition, assets and liabi-lities are measured as described below for each individual accounting item.Certain financial assets and liabilities are measured at amortised cost using the effective interest method. Amortised cost is calculated as the historic cost less any instalments and plus/less the accumulated amorti-sation of the difference between the cost and the nominal amount.On recognition and measurement, allowance is made for predictable losses and risks which occur before the annual report are presented and which confirm or invalidate matters existing at the balance sheet date.Income statementSegment informationInformation is provided on business segments and geographical markets. The segment information is provided in consideration of the company's accounting policies, risks and management control.RevenueThe Company has chosen IFRS 15 as basis of recognition and measurement.Revenue, which is stated net of value added tax, represents oil and gas products sold to third parties. Contracts for goods and services are analysed to determine the distinct performance obligations against which revenue should be recognised. The amount to be recognised is determined from the standalone selling prices for goods and services, allocated to the performance obligations.Revenue is recognised when (or as) the performance obligations are satisfied by transferring a promised good or service to a customer. For sales resulting from hydrocarbon production, this generally occurs when the pro-duct is physically transferred into a vessel, pipe or other delivery mechanism. Revenue resulting from hydro-carbon production from properties in which the Company has an interest with partners in joint arrangements is recognised on the basis of the Company’s volumes lifted and sold. Lifting or offtake arrangements for oil and gas produced in certain of the Company’s oil and gas properties are such that each participant may not receive and sell its precise share of the overall production in each period. The resulting imbalance between cumulative entitlement and cumulative volume sold less inventory is an “underlift”’ or “overlift”. Underlift and overlift are va-lued at cost price and included within receivables and payables respectively. Movements during an accounting period are adjusted through cost of sales in the income statement. Other income relating to gas production include technical service to third or related parties, and revenue arised from tariffs for third or related parties use of owned pipelines and infrastructure. Tariffs are recognised at the end of the month for pipeline movements during the month and are based on quantity transported through the pipeline.Raw materials and consumablesExpenses for raw materials and consumables comprise the raw materials and consumables consumed to achi-eve revenue for the year.Other operating income and expensesOther operating income and other operating expenses comprise items of a secondary nature relative to the company's activities.Other external expensesOther external costs comprise expenses for distribution, sales, advertising, administration, premises, bad debts,operating leases, etc.Over-/under lift is recognised at cost price. Over-/under lift refers to the situation in which the Company partici-pates in producing fields with several participants and where the Company has lifted and sold more or less crude oil from a producing field than what the Company is entitled at the time of lifting.Other external expenses also comprise cost for exploration and appraisal wells that do not qualify for capitalisa-tion.Employee costsEmployee costs comprise wages and salaries as well as payroll dependent expenses, including pensions, so-cial security costs and other employee related costs.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses comprise the year's depreciation, amortisation and impair-ment losses on intangible assets and property, plant and equipment.Financial income and expensesFinancial income and expenses are recognised in the income statement at the amounts relating to the financialyear. Financial income and expenses comprise interest income and expense, gains and losses and liabilities and foreign currency transactions. It also includes realized and unrealized gains and losses on hedge interestrate and currency risks that are not hedges of net sales, cost of sales or fixed assets.Income from investments in subsidiariesThe income statement includes the pro rata share of the net profit after the elimination of intercompany profit/-losses and amortization of goodwill under the item "Results from investments in subsidiaries". Investments in subsidiaries are recognised and measured using the equity method. Further gains and losses due to sale of subsidiaries are included.Joint venturesJoint venture represent contractually agreed arrangements on joint economic activities where there is no under-taking involved, and exists only when the strategic financial and operating decisions relating to the activity requi-re the unanimous consent of the parties sharing control (the venturers). Each of the venturers recognises in itsindividual financial statements the assets that it controls and the liabilities and expenses that it incurs and its share of the income that it earns from the sale of goods and services. The Company’s exploration, development and production activities are generally conducted as co-licensee in joint operations with other companies (Joint Venture).Tax on profit for the yearTax on profit/loss for the year, consisting of current tax for the year and deferred tax for the year, is recognised in the income statement to the extent that it relates to profit/loss for the year and directly in equity to the extent that it relates to entries made directly in equity. The company is subject to the Danish rules on compulsory joint taxation. Subsidiaries are included in the joint taxation from the date they are included in the consolidation in theconsolidated financial statements and up to the date on which they are no longer included in the consolidation.INEOS E&P A/S is the management company for the joint taxation and consequently settles all income tax payments with the tax authorities.In connection with the settlement of joint taxation contributions, current Danish income tax is allocated amongthe jointly taxed Danish companies in proportion to their taxable income. In this connection, Danish subsidiaries with tax losses receive joint taxation contributions from the parent company equivalent to the tax base of the tax losses utilised (full allocation), while companies that utilise tax losses in other Danish companies pay joint ta-xation contributions to the parent company equivalent to the tax base of the utilised losses.INEOS E&P A/S is covered by the Danish Hydrocarbon Tax Act. Hydrocarbon taxes are recognised under tax on profit/loss for the year. INEOS E&P A/S is the management company responsible for the carbon tax joint taxation and thus settles all hydrocarbon tax payments with the tax authorities.The company is jointly taxed with Danish Hydrocarbon group enterprises. The Hydrocarbon tax is distributed among the enterprises in proportion to their taxable incomes.Balance sheetIntangible assetsSoftware is measured at cost less accumulated depreciation or the recoverable amount, whichever is lower. Software is amortized over 3-5 years.Cost includes direct and indirect costs associated with acquisition and implementation up to the date when the asset is ready for use.Costs of development projects comprise salaries and other expensens directly or indirectly attributable to the Company's development activities. As of the date of completion, capitalised development cost are amortised on a straight-line basis.Tangible assetsTangible assets are measured at cost less accumulated depreciation and impairment losses.Cost comprises the purchase price and any expenses directly attributable to the acquisition until the date the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, components and sub-suppliers.Cost is increased by estimated expenses for dismantling and removing the asset and restoration to the extent that they are recognised as a provision.Exploration comprises recognised expenses for drilling successful exploration and appraisal wells where deve-lopment of the field has yet to commence. Expenses are recognised using the successful efforts method. Under the successful efforts method, expenses for drilling specific exploration wells are recognised in the balance she-et. Acquired licences where discoveries have been made, including acquired reserves, are also recognisedTangible assets (continued)under exploration. General exploration expenses and expenses for unsuccessful exploration wells are recog-nised in the income statement. Recognition in the balance sheet is maintained pending determination of com-mercial viability. Where a discovery is found not to be commercially viable, the drilling expenses incurred are recognised in the income statement as Other external costs. Other exploration expenses are recognised in the income statement as Other external costs as incurred.In the case of oil and gas production assets, cost is depreciated using the unit-of-production method based on the ratio of current production to estimated recoverable reserves by individual field.Exploration assets and production assets under construction is not depreciated until production of oil and gas is started.Interest expenses on loans raised directly for financing the construction of property, plant and equipment are capitalized over the period of construction. All indirectly attributable borrowing costs are recognised in the in-come statement.The basis of depreciation is determined as cost reduced by any residual value, and depreciation is charged on a straight-line basis over the expected useful lives of the assets, which are:Other fixtures and fittings, tools and equipmentInvestments in subsidiariesInvestments in subsidiaries and associates are measured at the proportionate share of the net asset value of the entities, calculated on the basis of the group's accounting policies, less or plus unrealised intra-group gains or losses and plus or less any remaining value of positive or negative goodwill made up according to the pur-chase method.Investments in subsidiaries and associates with a negative net asset value are measured at DKK 0, and the carrying amount of any receivables from these entities is reduced to the extent that they are considered irre-coverable. If the parent company has a legal or constructive obligation to cover a deficit that exceeds the recei-vable, the balance is recognised under provisions.Net revaluations of investments in subsidiaries and associates are taken to the net revaluation reserve accor-ding to the equity method to the extent that the carrying amount exceeds the cost. Dividends from subsidiaries which are expected to be declared before the annual report of INEOS E&P A/S is adopted are not taken to the net revaluation reserve.Acquisitions are accounted for using the purchase method.Impairment of fixed assetsThe carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries are reviewed annually to determine whether there is any indication of impairment.If there are indications of impairment, an impairment test is carried out for each asset or group of assets. Im-pairment is made to the lower of the recoverable amount and the carrying amount.The recoverable amount of the asset is calculated as the higher of the net selling price and the value in use. The value in use is calculated as the present value of expected net cash flows from the use of the asset or group of assets and the expected net cash flows from the sale of the asset or group of assets after the end of their useful lives.InventoryInventories consist of petroleum, condensate, liquid petroleum gas. Inventories are valued at the lower of cost and net realisable value.Cost is determined as lifiting cost for the month.ReceivablesReceivables are measured at amortised cost, which normally corresponds to nominal value. Provisions for bad debts are made.PrepaymentsPrepayments comprise costs incurred concerning subsequent financial years.The item also includes underlift of crude oil, which is measured at realisable value. Because producing fields have several partners, situations may arise in which a partner has lifted and sold more or less oil than its rela-tive entitlement at the point of lifting. Such situations are described as overlift or underlift, repectively. Overlift of crude oil is recognised as deferred income in current liabilities.EquityDividendProposed dividends are disclosed as a separate item under equity. Dividends are recognised as a liability at the date of declaration by the annual general meeting.ProvisionsProvisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the company has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation.In measuring provisions, the expenses required to settle the liability are discounted to net present value, if this has a significant effect on the measurement of the liability. A pre-tax discount rate is used that reflects the gen-eral interest rate level in the market. The change in present values for the financial year is recognised as finan-cial expenses.Provisions for decommissioning of production assets and restoration are measured at the present value of the future liability in respect of decommissioning and restoration as estimated at the balance sheet date. The amount provided is determined on the basis of existing requirements and estimated expenses, which are dis-counted to present value. If specific risks are deemed to be attached to a provision, the estimated expenses are recognised. A discount rate is used that reflects the general interest rate level in the market. These liabili-ties are recognised as they arise and are adjusted on a regular basis to reflect changes in requirements, price level, etc. The value of the provision is recognised within property, plant and equipment and depreciated toget-her with the relevant assets. The increase in time of the present value of the provision is recognised in net profit for the year as financial expenses.A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. If it is considered unlikely that an outflow from the Company of resources embodying economic benefits will be required to settle an obligation, or if the obligation cannot be measured reliably, the obligation is accounted for as a contingent liability that is not recognised in the balance sheet. Material contingent liabilities are disclosed in the notes.LeasesAt inception of a contract, the Company assesses whether the contract is, or contains, a lease. If a contract is, or contains a lease, the Company applies IFRS 16 when accounting for such contracts. For all other contracts, it applies other IFRSs as appropriate. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company assesses whether:At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices.The Company, as lessee, has availed the exemption from lessee accounting for its short-term leases and leases of low-value items. Accordingly for these leases, it recognises the lease payments as an expense, on either a straight line basis over the lease term or another systematic basis if that basis is more representative of the pattern of the Company's benefit.The Company recognizes the full lease liability, rather than its working interest share, for leases entered into on behalf of a joint operation if the Company has the primary responsibility for making the lease payments. For contracts in scope, the Company, as the lessee, recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.The right-of-use asset is subsequently depreciated using the straight line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re‐measurements of the lease liability. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate.Lease payments included in the measurement of the lease liability comprise the following:- Fixed payments, including in‐substance fixed payments;- Variable lease payments that depend on an index or a rate, initially measured using- the index or rate as at the commencement date;- Amounts expected to be payable under a residual value guarantee; and- The exercise price under a purchase option that the Company is reasonably certain to exercise, lease pay- ments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.The lease liability is measured at amortised cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.Leases (continued)When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.Income tax and defered taxCurrent tax payable and current tax receivable are recognised in the balance sheet as tax calculated on the taxable income for the year, adjusted for tax on previous years' taxable income and taxes paid on account.Deferred tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts on the basis of the intended use of the asset and settlement of the liability, respectively.Deferred tax assets, including the tax base of tax loss carry forwards, are measured at the value at which the asset is expected to be realised, either through elimination against tax on future earnings or through offsetting against deferred tax liabilities.Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation enacted at the balance sheet date when the deferred tax is expected to materialise as current tax. Where the tax base can be determined applying alternative tax rules, deferred tax is measured on the basis of the intend-ed use of the asset or settlement of the liability, respectively.Any changes in deferred tax due to changes to tax rates are recognised in the income statement. For the cur-rent year a tax rate of 25% on hydrocarbon activities and 22% on corporate tax has been applied.LiabilitiesFinancial liabilities such as mortgage loans and loans from credit institutions are recognised at the date of in-ception at the proceeds received net of transaction costs. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. The differ-ence between the proceeds received and the nominal value is recognised in the income statement over the term of the loan.Mortgage debt is measured at amortised cost, which for cash loans corresponds to the debt outstanding. For bond loans, amortised cost corresponds to the debt outstanding calculated as the underlying cash value of theloan at the date of inception, adjusted for depreciation charged over the repayment period on the market value adjustment of the loan at inception.Other payables are measured at amortised cost, corresponding to nominal value.Deferred incomeDeferred income comprises payments received in respect of income in subsequent financial years.Foreign currency translationTransactions in foreign currencies are translated on initial recognition at the exchange rates applicable at the dates of transaction. Exchange differences arising between the exchange rate applicable at the transaction date and at the date of payment are recognised in the income statement as financial income or expenses.Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statementsForeign currency translation (continued)is recognised in the income statement as financial income or financial expenses.Non-current assets acquired in foreign currencies are measured at the transaction date rates.Financial HighlightsDefinitions of financial ratios.EBIT marginProfit/loss before financials x 100RevenueReturn on assetsProfit/loss before financials x 100Total assetsEBITDA marginEarnings before interest, taxes, depreciation and amortisation x 100Revenue In pursuant of Section 112 of the Danish Financial Statements Act, the company has not prepared consolidated financial statements as the company is included in the cash flow statement of the INEOS UK E&P Holdings Limited. In pursuance of Section 86(4) of the Danish Financial Statements Act, the company has omitted preparing a cash flow statement as the company is included in the cash flow statement of the INEOS UK E&P Holdings Limited. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2024-01-01 2024-12-31 2023-01-01 2023-12-31 2025-06-27 Reporting class C, large enterprise 2025-06-27 33963556 Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 København S Opinion Basis for Opinion 2025-06-27 33963556 Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 2300 København S