|PLN '000||Note||Dec 31 2015||Dec 31 2014|
|Non-current financial assets|
|Other financial assets:||31.1||145,991||71,102|
|Security deposits receivable||20,458||20,631|
|Finance lease receivables||18.2||11,018||9,111|
|Oil and Gas Extraction Facility Decommissioning Fund (1)||32.4.1||31,794||30,911|
|Cash for work related to the removal of the MOPU from the YME field (2)||32.3.1; 32.4.1||69,453||-|
|Current financial assets|
|- including from related entities||36.1||12,219||23,318|
|Other financial assets:||31.1||672,466||1,260,931|
|Security deposits receivable||7,761||10,085|
|Cash earmarked for the EFRA project||32.4.1||438,329||-|
|Cash for work related to the removal of the MOPU from the YME field (2)||32.3.1.; 32.4.1.||39,087||179,377|
|Cash for other capital expenditure commitments||32.4.1.||10,620||-|
|Settlements under joint operations (Norwegian fields) (3)||15,431||26,100|
|Security deposits (margins) related to the use of gas fuel distribution and transmission system||13,952||7,342|
|Restricted cash - issue of shares||-||996,939|
|Receivables under commodity swap settlement||49,208||-|
|Receivables under payment cards (service stations)||4,426||3,134|
|Total financial assets||2,369,357||2,738,534|
|Non-current non-financial assets|
|Fees and commissions related to B8 project financing||-||23,839|
|Costs related to financing of the EFRA Project||48,568||-|
|Current non-financial assets|
|Value-added tax receivable||95,753||71,262|
|Property and other insurance||28,294||16,729|
|Prepayments for lease of railway locomotives||-||2,336|
|Excise duty on inter-warehouse transfers||31,015||36,661|
|Prepayments for IT services||7,141||4,617|
|Total non-financial assets||238,887||194,791|
|- trade payables||1,550,900||1,406,501|
(1) Cash deposited in the bank account of the Oil and Gas Facility Decommissioning Fund (created pursuant to the Geological and Mining Law of February 4th 1994 and the Minister of Economy’s Regulation of June 24th 2002) to cover future costs of decommissioning of oil facilities, see Note 30.1.
(2) Cash held in an escrow account associated with the agreement concluded between the parties involved in the YME Project in Norway (for more details on the agreement, see Note 35.1, see also Note 30.1 and Note 13.1.2).
(3) Receivables of LOTOS Exploration and Production Norge AS (LOTOS Petrobaltic Group, the upstream segment) under mutual settlements between the operator and consortium members concerning specific Norwegian fields.
As at December 31st 2014, Restricted cash - issue of shares comprised cash proceeds from the issue of Series D shares in Grupa LOTOS S.A., deposited in a separate bank account of the Central Securities Depository of Poland (see Note 21) until the day of registration of the share capital increase.
The Company uses the issue proceeds to pursue the objectives indicated in the Prospectus approved by the Polish Financial Supervision Authority on November 7th 2014 (the “Prospectus”), including the construction of a delayed coking unit with auxiliary infrastructure (the “EFRA Project”) and development of the B-4 and B-6 gas fields by LOTOS Petrobaltic S.A. in collaboration with CalEnergy Resources Poland Sp. z o.o. (see “Use of proceeds from the offering” in the Prospectus).
Net of issue costs incurred in 2015, proceeds from the issue of Series D shares in the Company amounted to PLN 981.3m and are presented in the consolidated statement of cash flows under Proceeds from issue of Series D shares in Grupa LOTOS S.A.
The Company also notes that pursuant to the agreement for assistance in the form of non-public aid executed with the Minister of the State Treasury, acting as a representative of the State Treasury, the Company undertook to use PLN 535.0m from the Business Restructuring Fund, which had been allocated by the State Treasury to cover the Issue Price of the Offer Shares subscribed for by the State Treasury in exercise of its pre-emptive rights, to finance the EFRA Project. As at December 31st 2015, the funds were presented under Cash earmarked for the EFRA project. The funds are deposited in a separate bank account, which is reflected in the consolidated statement of cash flows under Cash earmarked for the EFRA project in cash flows from investing activities.
As at December 31st 2015 and December 31st 2014, the item Deposits included the Parent’s deposits designated for the overhaul shutdown of the refinery planned for 2017, deposits securing payments of interest under credit facilities contracted for the financing of the 10+ Programme, as well as for financing and refinancing of inventories, referred to in Note 27.1.
The collection period for trade receivables in the ordinary course of business is 7−35 days.
As at December 31st 2015, the Group’s receivables of PLN 20,845 thousand (December 31st 2014: PLN 31,676 thousand) were assigned by way of security for the Group’s liabilities.
For currency risk sensitivity analysis of financial assets, see Note 32.3.1.
For interest rate risk sensitivity analysis of financial assets, see Note 32.4.1.
The maximum credit risk exposure of financial assets is presented in Note 32.6.
|PLN '000|| Year ended
Dec 31 2015
| Year ended
Dec 31 2014
|At beginning of period||177,694||175,293|
|Exchange differences on translating foreign operations||-||12|
|At end of period||171,640||177,694|
(1) Additional amounts awarded in court proceedings.
The amounts resulting from recognition or reversal of impairment losses on receivables are presented under other income or expenses (the principal portion) and under finance income or costs (the default interest portion). In the statement of comprehensive income, recognised and reversed impairment losses on receivables are presented on a net basis under: Other income/expenses (in accordance with the adopted accounting policy the Group offsets corresponding items of Other income and Other expenses in line with Section 34 and 35 of IAS 1 Presentation of Financial Statements).
Recognised impairment losses included PLN 8,094 thousand in respect of the principal (2014: PLN 15,928 thousand) and PLN 505 thousand in respect of interest (2014: PLN 2,149 thousand).
Reversed impairment losses included PLN 10,021 thousand in respect of the principal (2014: PLN 2,850 thousand) and PLN 899 thousand in respect of interest (2014: PLN 1,754 thousand).
In 2015, the Group disclosed the recognised and reversed impairment losses on the principal under Other expenses, in the amount of PLN 1,927 thousand, including: PLN 8,094 thousand under recognised impairment losses, and PLN 10,021 thousand under impairment loss reversal (see Note 9.3).
In 2014, the Group disclosed the recognised and reversed impairment losses on the principal under Other expenses in the amount of PLN 13,078 thousand, including: PLN 15,928 thousand under recognised impairment losses, and PLN 2,850 thousand under impairment loss reversal (see Note 9.4).
The table below presents aging of past due receivables for which no impairment losses were recognised:
|PLN '000||Dec 31 2015||Dec 31 2014|
|Up to 1 month||26,123||41,973|
|From 1 to 3 months||707||5,752|
|From 3 to 6 months||359||956|
|From 6 months to 1 year||1,262||385|
|Over 1 year||358||24|
No impairment losses were recognised on past due receivables because they are secured against credit risk with a mortgage, pledge, insurance policy, bank guarantee or surety.
As at December 31st 2015 and December 31st 2014, the share of trade receivables from the Group’s five largest customers as at the end of the reporting period was approximately 32% and 25%, respectively, of total trade receivables (individually: 1%–11%). In the Group’s opinion, with the exception of receivables from the above-mentioned customers, there is no material concentration of credit risk. The Group’s maximum exposure to credit risk as at the end of the reporting period is best represented by the carrying amounts of those instruments.
The Group has developed and operates the “LOTOS Family” Franchise Programme, which defines the procedures for managing service stations. The Group has entered into franchise agreements with entities operating service stations at their own risk and for their own account (Partners). Receivables under franchise agreements represent mainly expenditure on the design of DOFO service stations operated by dealers under agreements executed for periods from 5 to 10 years.
|PLN '000||Minimum lease payments
||Present value of minimum lease
|Dec 31 2015||Dec 31 2014||Dec 31 2015||Dec 31 2014|
|Up to 1 year (1)||5,608||4,429||5,568||4,394|
|From 1 to 5 years||10,940||8,951||10,862||8,881|
|Over 5 years||157||232||156||230|
|Less unrealised finance income||(120)||(107)||-||-|
|Present value of minimum lease payments||16,585||13,505||16,586||13,505|
(1) Present value of minimum lease payments is disclosed under Trade receivables.
The Notes to the consolidated financial statements are an integral part of the statements.
(This is a translation of a document originally issued in Polish)