Integrated Annual Report of LOTOS Capital Group 2015

Consolidated statement of cash flows for 2015

prepared using the indirect method

PLN '000	Note	Year ended Dec 31 2015	Year ended Dec 31 2014
Cash flows from operating activities
Net loss		(263,300)	(1,466,372)
Adjustments:		1,810,253	2,904,163
Income tax expense	10.1	68,026	(657,343)
Share in net profit/(loss) of equity-accounted    joint ventures	16	31,066	24,465
Depreciation/amortisation	9.1	714,568	808,941
Foreign exchange (gains)/losses		348,234	366,720
Interest and dividends		177,702	168,177
(Gain)/loss from investing activities		69,902	16,356
Impairment losses on property, plant and equipment and other  intangible assets	9.4	85,817	806,141
Settlement and valuation of financial instruments	9.5; 9.6	(78,809)	197,849
(Increase)/decrease in trade receivables		(144,399)	185,148
(Increase)/decrease in other assets		54,473	(6,376)
Decrease in inventories		719,073	1,811,755
(Decrease) in trade payables		(460,329)	(702,398)
Increase/(decrease) in other provisions and liabilities		187,754	(120,389)
Increase in employee benefit obligations		37,175	5,117
Income tax paid		(58,884)	(57,303)
Net cash from operating activities		1,488,069	1,380,488
Cash flows from investing activities
Dividends received - equity-accounted joint ventures	16.1	837	7,280
Dividends received from other entities		907	894
Interest received		16,053	6,033
Sale of property, plant and equipment and other intangible assets		23,615	14,015
Sale of organised part of business		2,600	4,880
Effect of final accounting for the acquisition of Heimdal assets		-	12,443
Purchase of property, plant and equipment and other intangible assets		(758,582)	(1,002,131)
Cash contributions - equity-accounted joint ventures	16.1	(3,898)	(339)
Acquisition of shares in related entities		-	(23)
Cash earmarked for the EFRA project		(433,357)	-
Security deposit		(4,293)	10,035
Funds contributed to the oil and gas extraction facilities decommissioning fund		(414)	(407)
Deposit securing the performance of an engineering, procurement and management services contract for the purposes of the offshore production unit on B-8 field		(10,488)	-
Option premium expense		(4,907)	-
Settlement of derivative financial instruments		10,554	(11,018)
Other investment cash outflows		(602)	-
Net cash from investing activities		(1,161,975)	(958,338)
Cash flows from financing activities
Proceeds from bank borrowings	27.1	798,209	562,963
Proceeds from non-bank borrowings	27.2	-	106,900
Proceeds from issue of Series D shares in Grupa LOTOS S.A.	18	981,268	-
Cash flows attributable to changes in interest in subsidiaries not resulting in loss of control		(31)	(1,681)
Grants received		-	1,239
Return of a deposit provided as security for repayment of credit facility at Energobaltic Sp. z o.o.		-	2,111
Repayment of bank borrowings	27.1	(1,161,456)	(1,030,408)
Repayment of non-bank borrowings	27.2	(10,781)	(12,983)
Redemption of notes	27.3	(19,350)	(17,397)
Arrangement fees paid under borrowings		(57,202)	-
Interest paid		(172,969)	(181,297)
Decrease in finance lease liabilities		(19,957)	(18,830)
Settlement of derivative financial instruments		(222,192)	4,439
Expenses related to the issue of Series D shares in Grupa LOTOS S.A.		-	(7,867)
Other cash used in financing activities		(820)	(4,460)
Net cash from financing activities		114,719	(597,271)
Total net cash flow		440,813	(175,121)
Effect of exchange rate fluctuations on cash held		3,944	11,509
Change in net cash		444,757	(163,612)
Cash at beginning of period		(166,687)	(3,075)
Cash at end of period	20	278,070	(166,687)