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Finance

COVA is a not-for-profit foundation. The State will be liable for any debts of COVA that remain if it should be liquidated.

COVA’s operating costs are funded from a stockholding levy on oil products. This levy amounts to EUR 8 per 1,000 litres, as laid down in Section 27 of the Petroleum Products Stockpiling Act 2012 (Wva).

As a legal person with a statutory task, COVA makes use of State treasury banking and does not have a credit rating. Its annual accounts are submitted for approval to the Minister for Climate and Energy.

COVA’s key figures

COVA’s operating costs are mostly costs of renting storage facilities. In addition, there are costs of inspection, insurance, logistics and payment of interest on the loans outstanding with the government. The organisation’s expenditure consists of staff costs, accommodation costs and IT. COVA achieved operating surpluses in recent years. These surpluses are used to reduce the debt position, which means that they revert to the State.

COVA’s stocks are valued at historical cost, where necessary adjusted to a lower market value. These stocks represent more than 90% of COVA’s balance sheet total.

Funding of COVA

COVA’s operating costs are funded from a stockholding levy on oil products, imposed on end users of transport fuels. The Petroleum Products Stockpiling Act (Wva) has set the stockholding levy at EUR 8 per 1,000 litres. This levy is imposed in the same way as excise duty. The income which COVA receives from the stockholding levy therefore moves in line with the annual consumption of gasoline, diesel and LPG. Under international arrangements, kerosene used in international aviation is exempt from excise duty and thereby also from the stockholding levy.

Loans

COVA funds its oil stock purchases with loans it takes out from the Ministry of Finance, under the terms of State treasury banking. The Ministry of Economic Affairs and Climate Policy guarantees loans up to EUR 1,465 million. This guarantee offers sufficient scope for funding the purchase of the necessary stocks. The Wva provides that the State will be liable for any debts of COVA which remain after its liquidation as a legal person (Section 25 Wva).

COVA annual report

Current tensions in the oil and gas markets and the energy transition are high on the agenda. Due to COVA’s important role in the security of supply for crude oil and oil products in the Netherlands, we strive to report transparently on this. COVA’s annual reports are published below.

COVA annual report 2023
COVA annual report 2022
COVA annual report 2021

In the year 2023, the consequences of the import sanctions on Russian oil have been processed in an impressive way by the oil markets. COVA has completed the purchase of the 500 kilotons of extra diesel. The Dutch strategic oil stock (COVA and companies), with a volume of more than 90 days of domestic consumption, offers sufficient security. And for the first time in our 45-year history, a renewable product is part of the inventory.

COVA’s position within the national resilience framework has been consolidated with the publication of the National Oil Crisis Plan (L-CPO). The plan outlines clear steps in case of an oil crisis. COVA has developed a scenario model to help forecast the oil stock levels in the ARA region. Our contribution to the oil dashboard provides a public insight into the current status of the oil markets.

Even with the rising costs related to the ordered expansion of the strategic stock, COVA’ maintained a healthy financial situation during 2023. In our annual report we describe developments in the (international) oil and oil storage market, and how they have been taken into account in our risk analysis. We also discuss COVA’s inventory overview and our governance in detail.

In the Financial Statements you will find an explanation of the annual figures and accountability within the framework of the Standards for Remuneration Act (WNT). The remuneration data are an integral part of COVA’s financial statements for which an auditor’s report has been issued. As a legal person with a statutory task, COVA is subject to the Standards for Remuneration Act and thus obliged to publish the data from previous years.

WNT register 2023
WNT register 2022
WNT register 2021
WNT register 2020

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