Staatsolie Annual Report 2017

Annual Report 2017 135
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Loan Inventories SPCS are stated at the lower of cost and net realizable value. Net realizable value is the estimated
In selling September price in 2013, the ordinary SPCS entered course of into business, a seven less year estimated loan with costs Credit of Suisse completion for the and expansion the estimated of the
power costs to plant. sell. On November 17, 2014, SPCS restated and amended its credit agreement of US$ 74,000 to
The US$ cost 120,000. of crude The outstanding oil refined loan balance products as is at the December purchase 31, cost, 2017 the amounted cost of to refining, US$ 80,064. including With the a
grace appropriate period proportion of 4 quarters, of a depreciation, total of US$ 20 depletion million was and repaid amortization in 2017. and Repayment overheads of the based loan on is planned normal
operating for 24 quarterly capacity, installments. determined The on a maturity weighted date average of the basis. loan is November 2021. The applicable annual
interest rate is 5.50% plus 3 months LIBOR.
The net realizable value of crude oil and refined products is based on the estimated selling price in the
ordinary Staatsolie course acts as of business, guarantor less for this the loan estimated and will costs make of completion the repayments and the in estimated US dollars. costs As collateral necessary the to
make bank requested the sale. 100% of SPCS’s fixed assets, all rights and benefits gained in the Power Purchase
Agreement (PPA) as well as the establishment of various offshore collateral accounts.
Materials and supplies are valued using the weighted average cost method.
As at December 31, 2017, unamortized debt arrangement fees amounted to US$ 1,776 (2016: US$
Pipeline 2,234). The fill amortization of debt arrangement fees for 2017 amounted to US$ 458 (2016: US$ 460) and
is Crude expensed oil, which in the is consolidated necessary to statement bring a pipeline of profit or into loss. working order, is treated as a part of the related
pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is
Loan necessary from the to the Government operation of of Suriname a facility during more than one operating cycle, and its cost cannot be
In recouped November through 2016 sale Staatsolie (or is refinanced significantly the impaired). secured long This term applies bank even loan if with the part a secured of inventory loan from that the is
GoS. deemed The to GoS be an garnered item of property, these proceeds plant and from equipment an international cannot bond be separated issued on physically October from 26, 2016. the rest One of
coupon inventory. was It is sold valued for at US$ cost 100,000 and is depreciated each. The over loan the amounts useful life to US$ of the 261,534, related asset. disclosed in section 7,
related party disclosures, bears 9.25% semi-annual interest payable in April and October and requires a
bullet repayment n. Impairment in November of non-financial 2026. assets
As The at Group December assesses 31, 2017, at each unamortized reporting date debt whether arrangement there fees is an amounted indication to that US$3,122 an asset (2016: may be US$3,475). impaired.
The If any amortization indication exists, of debt or when arrangement annual impairment fees for 2017 testing amounted for an asset to US$353 is required, (2016: the US$ Group 55) estimates and is
expensed the asset’s in recoverable the consolidated amount. statement An asset’s of profit recoverable or loss. amount is the higher of an asset’s or cash
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
Loan individual receivables asset, unless the asset does not generate cash inflows that are largely independent of those
In from accordance other assets with or the groups Power of Purchase assets. Agreement Where the dated carrying March amount 1, 2013 of (with an asset latest or amendment CGU exceeds in April its
2016) recoverable by and amount, between the SPCS asset and is considered the GoS, SPCS impaired constructed and is written a transmission down to line its recoverable to the grid of amount. EBS. The In
aggregated assessing value cost in of use, US$27,293 the estimated was divested future cash in favor flows of GoS are discounted in 2016, and to accordingly their present derecognized value using a in pretax
discount of SPCS. rate In that 2017 reflects and 2016, current US$ market 4,249 of assessments the principal of balance the time was value repaid of by money GoS. The and remaining the risks
the
books
balance specific to is the to asset. be considered In determining as long fair term value loan less with costs interest of disposal, rate recent of 5.76% market p.a., transactions payable in are quarterly taken
installment into account. with If no maturity such transactions date of November can be 2021. identified, As at an December appropriate 31, valuation 2017, the model short is term used. portion of this
loan Impairment amounts losses to US$8,368 of continuing (2016: operations US$9,173) are and recognized the long in term the consolidated portion amounts statement to US$11,007 of profit or (2016: loss
US$14,677). in those expense The loan categories receivable consistent disclosed with in the section function 7, related of the party impaired disclosures. asset, except for a property
previously revalued where the revaluation was taken to OCI. In this case, the impairment is also
recognized in OCI up to the amount of any previous revaluation.
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