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ORLEN Group 2016 Integrated Report

II nagroda specjalna w kategorii Raport Zintegrowany | Najlepszy raport on-line

Consolidated financial statements

Capitals:  

1. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

  NOTE 2016 2015 change (y/y)
value
change (y/y)
%
Sales revenues 6.2
7.1.1
7.1.2
79 553 88 336 (8 783) (9.9)

revenues from sales of finished goods and services

  57 775 68 768 (10 993) (16.0)

revenues from sales of merchandise and raw materials

  21 778 19 568 2 210 11.3
Cost of sales 7.1.3 (68 223) (77 792) 9 569 12.3

cost of finished goods and services sold

  (47 976) (59 489) 11 513 19.4

cost of merchandise and raw materials sold

  (20 247) (18 303) (1 944) (10.6)
Gross profit on sales   11 330 10 544 786 7.5
Distribution expenses   (4 125) (3 971) (154) (3.9)
Administrative expenses   (1 426) (1 552) 126 8.1
Other operating income 7.1.4 2 163 420 1 743 415.0
Other operating expenses 7.1.5 (707) (1 354) 647 47.8
Share in profit from investments accounted for under equity method 9.3 297 253 44 17.4
Profit from operations   7 532 4 340 3 192 73.5
Finance income 7.1.6.1 248 390 (142) (36.4)
Finance costs 7.1.6.2 (893) (1 032) 139 13.5
Net finance income and costs   (645) (642) (3) (0.5)
Profit before tax   6 887 3 698 3 189 86.2

Tax expense

7.1.7 (1 147) (465) (682) (146.7)

current tax

  (751) (310) (441) (142.3)

deferred tax

  (396) (155) (241) (155.5)
Net profit   5 740 3 233 2 507 77.5
Other comprehensive income:          
which will not be reclassified into profit or loss   (4) 3 (7) -

fair value measurement of investment property as at the date of reclassification

  6 - 6 -

actuarial gains and losses

  (10) 4 (14) -

deferred tax

  - (1) 1 -
which will be reclassified into profit or loss   221 1 327 (1 106) (83.3)
hedging instruments 7.2.7.3 (396) 1 530 (1 926) -
exchange differences on translating foreign operations   542 88 454 515.9
deferred tax

7.1.7.2
7.2.7.3

75 (291) 366 -
    217 1 330 (1 113) (83.7)
Total net comprehensive income   5 957 4 563 1 394 30.6
Net profit attributable to   5 740 3 233 2 507 77.5

equity owners of the parent

  5 261 2 837 2 424 85.4

non-controlling interest

  479 396 83 21.0
Total net comprehensive income attributable to   5 957 4 563 1 394 30.6

equity owners of the parent

  5 445 4 107 1 338 32.6

non-controlling interest

  512 456 56 12.3
Net profit and diluted net profit per share attributable to equity owners of the parent (in PLN per share)   12.30 6.63 5.67 85.5

Total sales volume amounted to 39.5 million tons in 2016 and was higher by 2.0% (y/y). Lower sales revenues by (9.9)% (y/y) resulted from cheaper crude oil and the effect listing of the Group products.

Positive change in the balance of other net operating activities amounted to PLN 1,456 million and mainly related to the recognition of compensation from insurers due to the steam cracker unit accident in Unipetrol Group in the amount of PLN 1,280 million, and positive impact of net reversal of impairment allowances of property, plant and equipment and intangible assets in the amount PLN 145 million.

Detailed information is presented in note 7.1.4, 7.1.5 and 7.2.4.

Net finance costs for 2016 amounted to PLN (645) million and include mainly PLN (542) million net foreign exchange losses.

Detailed information is presented in note 7.1.6.

2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

  NOTE 31/12/2016 31/12/2015 change (y/y)
value
change (y/y)
%
ASSETS          
Non-current assets          
Property, plant and equipment 7.2.1 27 671 24 536 3 135 12.8
Intangible assets 7.2.2 1 377 1 298 79 6.1
Investments accounted for under equity method 9.3 763 774 (11) (1.4)
Deferred tax assets 7.1.7.2 167 365 (198) (54.2)
Embedded derivatives and hedging instruments 7.2.8 66 135 (69) (51.1)
Other assets 7.2.8 277 254 23 9.1
    30 321 27 362 2 959 10.8
Current assets          
Inventories 7.2.5.1 11 182 10 715 467 4.4
Trade and other receivables 7.2.5.2 8 553 6 597 1 956 29.7
Current tax assets   121 44 77 175.0
Cash and cash equivalents   5 072 2 348 2 724 116.0
Non-current assets classified as held for sale   61 97 (36) (37.1)
Embedded derivatives and hedging instruments 7.2.8 97 806 (709) (88.0)
Other assets 7.2.8 152 168 (16) (9.5)
    25 238 20 775 4 463 21.5
Total assets   55 559 48 137 7 422 15.4

 

  NOTE 31/12/2016 31/12/2015 change (y/y)
value
change (y/y)
%
EQUITY AND LIABILITIES          
EQUITY          
Share capital 7.2.7.1 1 058 1 058 - -
Share premium 7.2.7.2 1 227 1 227 - -
Hedging reserve 7.2.7.3 (355) (80) (275) 343.8
Revaluation reserve   5 - 5 -
Exchange differences on translating foreign operations   946 537 409 76.2
Retained earnings 7.2.7.4 23 882 19 431 4 451 22.9
Equity attributable to owners of the parent   26 763 22 173 4 590 20.7
Non-controlling interests 7.2.7.5 2 522 2 071 451 21.8
Total equity   29 285 24 244 5 041 20.8
LIABILITIES          
Non-current liabilities          
Loans, borrowings and bonds 7.2.6.1 7 446 8 131 (685) (8.4)
Provisions 7.2.9 828 710 118 16.6
Deferred tax liabilities 7.1.7.2 809 674 135 20.0
Embedded derivatives and hedging instruments 7.2.8 280 239 41 17.2
Other liabilities 7.2.8 289 473 (184) (38.9)
    9 652 10 227 (575) (5.6)
Current liabilities          
Trade and other liabilities 7.2.5.3 13 591 10 658 2 933 27.5
Loans and borrowings 7.2.6.1 989 1 027 (38) (3.7)
Provisions 7.2.9 666 749 (83) (11.1)
Current tax liabilities   659 162 497 306.8
Embedded derivatives and hedging instruments 7.2.8 403 767 (364) (47.5)
Other liabilities 7.2.8 314 303 11 3.6
    16 622 13 666 2 956 21.6
Total liabilities   26 274 23 893 2 381 10.0
Total equity and liabilities   55 559 48 137 7 422 15.4

As at 31 December 2016, the value of non-current assets was higher by PLN 2,959 million (y/y) mainly due to increase of property, plant and equipment and intangible assets in the amount of PLN 3,214 million, which includes mainly investment expenditures in the amount of PLN 4,673 million, depreciation and amortization in the amount of PLN (2,110) million, the positive impact of decrease of net impairment allowances of assets in the amount of PLN 145 million and  exchange differences from recalculation of balances of foreign entities of the Group in the amount of PLN 481 million.

As at 31 December 2016 current assets increased by PLN 4,463 million (y/y), mainly as result of an increase in the balance of cash and cash equivalents by PLN 2,724 million as well as trade and other receivables in the amount of PLN 1,956 million and changes by PLN (709) million of valuation of cash flows hedging instruments.

As at 31 December 2016, total equity amounted to PLN 29,285 million and was higher by PLN 5,041 million (y/y), mainly as a result of net profit for 2016 in the amount of PLN 5,740 million and the distribution of the net profit for 2015, and the allocation of the dividend for the shareholders of the Parent Company in the amount of PLN (855) million.

As at 31 December 2016, net debt of ORLEN Group amounted to PLN 3,363 million and was lower by PLN (3,447) (y/y). Detailed information included in note 7.2.6.

3. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Equity attributable to owners of the parent
  Share capital and share premium Hedging reserve Revaluation reserve Exchange differences on translating foreign operations Retained earnings Total Non-controlling interests Total equity
NOTE 7.2.7.1
7.2.7.2
7.2.7.3     7.2.7.4   7.2.7.5  
01/01/2016 2 285 (80) - 537 19 431 22 173 2 071 24 244
Net profit - - - - 5 261 5 261 479 5 740
Items of other comprehensive income - (275) 5 463 (9) 184 33 217
Total net comprehensive income - (275) 5 463 5 252 5 445 512 5 957
Change in structure - - - (54) 54 - (1) (1)
Buy out non-controlling interest - - - - (1) (1) (1)  
merger/sale of related parties - - - (54) 55 1 - 1
Dividends - - - - (855) (855) (60) (915)
31/12/2016 2 285 (355) 5 946 23 882 26 763 2 522 29 285
01/01/2015 2 285 (1 319) - 509 17 296 18 771 1 615 20 386
Net profit - - - - 2 837 2 837 396 3 233
Items of other comprehensive income - 1 239 - 28 3 1 270 60 1 330
Total net comprehensive income - 1 239 - 28 2 840 4 107 456 4 563
Change in the structure of non-controlling interest - - - - 1 1 - 1
Dividends - - - - (706) (706) - (706)
31/12/2015 2 285 (80) - 537 19 431 22 173 2 071 24 244

4. CONSOLIDATED STATEMENT OF CASH FLOWS

  NOTE 2016 2015 value (r/r)
value
value (r/r)
%
Cash flows from operating activities          
Profit before tax   6 887 3 698 3 189 86.2
Adjustments for:          
Share in profit from investments accounted for under equity method 9.3 (297) (253) (44) (17.4)
Depreciation and amortisation 7.1.3 2 110 1 895 215 11.4
Foreign exchange loss 7.1.6.4 287 24 263 1 095.8
Interest, net 7.1.6.3 219 199 20 10.1
Dividends   (5) (2) (3) (150.0)
(Profit)/Loss on investing activities, incl.:   (299) 1 106 (1 405) -

recognition/(reversal) of impairment allowances of property,
plant and equipment and intangible assets

7.1.4
7.1.5
7.2.4
(145) 993 (1 138) -
Change in provisions 7.2.9 330 463 (133) (28.7)
Change in working capital 7.2.5 816 (1 320) 2 136 -
   inventories   (287) (655) 368 56.2
   receivables   (1 679) 1 258 (2 937) -
   liabilities   2 782 (1 923) 4 705 -
Other adjustments, incl.:   (381) (252) (129) (51.2)
compensation from insurers due to Unipetrol Group 7.2.5.2 (222) - (222) -
Income tax (paid) 7.1.7.3 (336) (204) (132) (64.7)
Net cash from operating activities   9 331 5 354 3 977 74.3
Cash flows from investing activities          
Acquisition of property, plant and equipment,
intangible assets and perpetual usufruct of land
  (5 033) (3 079) (1 954) (63.5)
Acquisition of shares adjusted for received cash   (2) (1 195) 1 193 99.8
Disposal of property, plant and equipment,
intangible assets and perpetual usufruct of land
  141 131 10 7.6
Sale of subsidiary   77 - 77 -
Dividends received   317 192 125 65.1
Other   64 (145) 209 -
Net cash (used) in investing activities   (4 436) (4 096) (340) (8.3)
Cash flows from financing activities          
Proceeds from loans and borrowings received   3 586 1 896 1 690 89.1
Bonds issued   3 258 - 3 258 -
Repayments of loans and borrowings   (7 943) (3 771) (4 172) (110.6)
Interest paid 7.1.6.3 (223) (258) 35 13.6
Dividends paid   (912) (706) (206) (29.2)
   equity owners of the parent 7.2.7.7 (855) (706) (149) (21.1)
   non-controlling interest   (57) - (57) -
Payments of liabilities under finance lease agreements   (28) (28) - -
Other   52 1 51 5 100.0
Net cash (used) in financing activities   (2 210) (2 866) 656 22.9
Net increase/(decrease) in cash and cash equivalents   2 685 (1 608) 4 293 -
Effect of exchange rate changes   39 19 20 105.3
Cash and cash equivalents, beginning of the period   2 348 3 937 (1 589) (40.4)
Cash and cash equivalents, end of the period   5 072 2 348 2 724 116.0

Proceeds of net cash from operating activities for 2016 amounted to PLN 9,331 million and comprised mainly profit from operations increased by depreciation and amortisation in the amount of PLN 9,642 million and the positive impact of decrease in a net working capital of PLN 816 million decreased by share in financial result from investments accounted for under equity method of PLN (297) million, impairment allowance of property, plant and equipment and intangible assets in the amount of PLN (145) million and paid income taxes in the amount of PLN (336) million and other adjustments in the amount of PLN (381) million.

Net cash used in investing activities for 2016 amounted to PLN (4,436) million and comprised mainly net expenses for the acquisition of property, plant and equipment, intangible assets and perpetual usufruct of land of PLN (4,892) million and inflows from the received dividends and sale of ORLEN Transport in the amount of PLN 317 million and of PLN 74 million, respectively.

Net expenses of cash used in financing activities for 2016 amounted to PLN (2,210) million and comprised mainly the net repayment of loans and borrowings of PLN (4,357) million, proceeds of the bond issue in the amount of PLN 3,258 million, paid dividends in the amount of PLN (912) million including amount for equity owners of the Parent Company of PLN (855) million and interest paid in the amount of PLN (223) million.


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