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 2022
– COVA annual report 2021
– The English version of the COVA annual report 2022 will be available soon.
The year 2022 was an exceptional year for COVA. The Russian invasion of Ukraine caused turmoil on the european energy markets and also affected the oil market. In the spring of 2022, the Minister for Climate and Energy decided two times in a row to participate in an IEA led collective action with the use of strategic oil stocks. Later that year, COVA was instructed to replenish and expand its strategic diesel stock. Even in the turbuluent year 2022, COVA’s financial situation remained robust.
In the annual report, we describe the developments in the (international) oil and oil storage market, and how these have been taken into account in our risk analysis. We also elaborate on COVA’s stock overview and our governance.
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 2022
– WNT register 2021
– WNT register 2020
