Staatsolie Annual Report 2017

Annual Report 2017 47
Staatsolie Maatschappij Suriname N.V.
Staatsolie Maatschappij Suriname N.V.
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Notes to the Consolidated financial statements for the years ended December 31, 2017 and 2016
(continued)
Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated
Section 1. Corporate and group information
selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs to sell.
1.1. Corporate information
The cost of crude oil and refined products is the purchase cost, the cost of refining, including the
The consolidated financial statements of the Group, which comprise Staatsolie Maatschappij Suriname
appropriate proportion of depreciation, depletion and amortization and overheads based on normal
NV (Staatsolie, as the parent) and all its subsidiaries, for the year ended December 31, 2017, were
operating capacity, determined on a weighted average basis.
authorized for issue in accordance with a resolution of the Supervisory Board on November 14, 2018.
The Staatsolie net realizable is a limited value company of crude incorporated oil and refined and products domiciled is in based Suriname on the whose estimated shares selling are solely price owned in the
ordinary by the Government course of business, of Suriname less the (GoS). estimated The registered costs of completion office is located and the at estimated Dr. Ir. H. costs S. Adhinstraat necessary 21, to
make Paramaribo, the sale. Suriname
Materials Staatsolie and (the supplies Company) are valued is an using integrated the weighted oil company average in cost the method. Republic of Suriname of which the
integrated activities include exploration, production, refining, marketing and distribution of petroleum and
Pipeline retail products. fill
Crude Through oil, its which subsidiary is necessary (SPCS), to Staatsolie bring a is pipeline engaged into in working electric power order, generation. 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
Group’s parent and other related party relationships is presented in section 7- Group information and
necessary to the operation of a facility during more than one operating cycle, and its cost cannot be
related party disclosures.
recouped through sale (or is significantly impaired). This applies even if the part of inventory that is
Staatsolie’s vision is:
deemed to be an item of property, plant and equipment cannot be separated physically from the rest of
• Leading the sustainable development of Suriname’s energy industry.
inventory. It is valued at cost and is depreciated over the useful life of the related asset.
• Making a strong contribution to the advancement of our society.
• Becoming a regional player with a global identity in the energy sector.
n. Impairment of non-financial assets
Staatsolie’s mission is:
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
• To develop Suriname's hydrocarbon potential over the full value chain, to generate electricity and
If any indication exists, or when annual impairment testing for an asset is required, the Group estimates
to develop renewable sustainable energy resources.
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash
• To secure the energy supply of Suriname and to establish a solid position in the regional market.
generating units (CGU) fair value less costs of disposal and its value in use. It is determined for an
• To expand our reputation based on our growth performance, flexibility and corporate social
individual asset, unless the asset does not generate cash inflows that are largely independent of those
responsibility.
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its
Its values are:
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
1. HSEC Focused: We put health and safety first, strive for zero harm to our people and the
assessing value in use, the estimated future cash flows are discounted to their present value using a pretax
discount rate that reflects current market assessments of the time value of money and the risks
communities around us, and minimize negative impacts upon the environment.
2. Integrity: We are honest and do what we say we will do.
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
3. People Focused: We create a supportive and collaborative environment, respect each other, are
into account. If no such transactions can be identified, an appropriate valuation model is used.
open to other's ideas and facilitate personal and professional growth.
Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss
4. Excellence: We set high standards for quality, strive to exceed expectations and do our work with
in those expense categories consistent with the function of the impaired asset, except for a property
a sense of urgency.
previously revalued where the revaluation was taken to OCI. In this case, the impairment is also
5. Accountability: We accept responsibility for our job and actions, are cooperative, and create a
recognized in OCI up to the amount of any previous revaluation.
non-blaming environment.
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