Staatsolie Annual Report 2017

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Confidence in Our Own Abilities 70 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) Available-for-sale (AFS) financial investments Group reconciliation of comprehensive income for the year ended December 31, 2016 AFS financial investments include equity and debt securities. Equity investments classified as availablefor-sale are those neither classified as held-for-trading previously nor designated US GAAP at fair value through IFRS profit December or loss. 31, US GAAP As at x US$ 1,000 Notes audited Restatements restated Notes adjustments 2016 After initial measurement, AFS financial investments are subsequently measured at fair value with unrealized Revenue gains or losses recognized 17 as OCI 368,291 until the investment (10,586) 357,705 is derecognized, at which - time, 357,705 the Cost of sales 17,18 (201,744) (50,143) (251,887) Aii, C 640 (251,247) cumulative Gross profit gain or loss is recognized in other 166,547 operating (60,729) income 105,818 or expense, or the 640 investment 106,458 is determined Other income/(expense) to be impaired, at which 19time, the cumulative 13,846 loss (389) is reclassified 13,457 to the consolidated - statement 13,457 Expensed projects 17 (1,411) (948) (2,359) - (2,359) of Exploration profit or expenses loss in finance costs and 27 removed from (1,524) the OCI. (4,983) The Group (6,507) evaluates its AFS - financial assets (6,507) to Selling determine and distribution whether expenses the ability and 20 intention to (21,898) sell them in the (3,079) near term (24,977) is still appropriate. - (24,977) Other operating expenses 17,21 (81,138) 68,146 (12,992) Diii, G 1,349 (11,643) General and administrative expenses 17,22 (28,248) (1,630) (29,878) I (1,589) (31,467) Operating profit (loss) 46,174 (3,612) 42,562 400 42,962 (ii) Financial liabilities Finance income 23 4,810 30 4,840 - 4,840 Finance costs 1,17,23 (46,375) (6,407) (52,782) Bi, Eii (12,340) (65,122) Recognition and measurement Share of profit of Suriname Gold Project JV 8,121 - 8,121 Bii (7) 8,114 Financial Profit (loss) before liabilities income are taxclassified, at initial recognition, 12,730 as financial (9,989) liabilities 2,741 at fair value (11,947) through profit (9,206) or Income tax expense 12 (7,508) 6,196 (1,312) F 2,921 1,609 loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair Profit (loss) for the year 5,222 (3,793) 1,429 (9,026) (7,597) value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Attributable to: The Group’s financial liabilities include trade and other payables, loans and borrowings including bank Equity holders of the parent 5,222 (3,793) 1,429 (9,026) (7,597) overdrafts. 5,222 (3,793) 1,429 (9,026) (7,597) Basic and diluted earnings per ordinary share (US$ per share) 1.04 0.29 (1.52) Loans and borrowings This is the category most relevant to the Group. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the consolidated statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. m. Inventories Petroleum products are valued at the lower of cost and net realizable value. Raw materials: • Purchase cost is valued on weighted average method Finished goods and work in progress: • Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs Page 62 Page 70
Annual Report 2017 71 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 Group reconciliation of other comprehensive income for the year ended December 31, 2016 selling price in the ordinary course of business, less estimated costs of completion and the estimated costs to sell. x US$ 1,000 US GAAP previously US GAAP IFRS As at December The cost of crude oil and refined Notes products audited is Restatements the purchase restated cost, Notes the cost adjustments of refining, 31, including 2016 the appropriate proportion of depreciation, depletion and amortization and overheads based on normal Other comprehensive income not to be operating reclassified to capacity, profit or loss determined on a weighted average basis. subsequent periods The Pensions net and realizable other postretirement value of crude oil and refined products is based on the estimated selling price in the 24 (6,556) (4,396) (10,952) 1,845 (9,107) benefits I ordinary course of business, less the estimated costs of completion and the estimated costs necessary to Tax effect 24 2,360 1,162 3,522 I (385) 3,137 make the sale. (4,196) (3,234) (7,430) 1,460 (5,970) Net other comprehensive income Materials (loss) not to and be reclassified supplies to are profit valued or using the (4,196) weighted (3,234) average cost (7,430) method. 1,460 (5,970) loss in subsequent periods Pipeline Other comprehensive fill income to be reclassified to profit or loss in Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related subsequent periods pipeline. Unrealized gains This and is (losses) on the shortterm investments basis that it is not held for sale or consumed in a production process, but is 25 (3,156) 43 (3,113) - (3,113) necessary to the operation of a facility during more than one operating cycle, and its cost cannot be Tax effect 25 1,136 (127) 1,009 - 1,009 recouped through sale (or is significantly (2,020) impaired). This (84) applies (2,104) even if the part - of inventory (2,104) that is deemed to be an item of property, plant and equipment cannot be separated physically from the rest of Currency translation adjustment GOw2 26 (3,159) (12,147) (15,306) - (15,306) inventory. Tax effect It is valued at cost and is depreciated - over the - useful life - of the related asset. - - (3,159) (12,147) (15,306) - (15,306) Net other comprehensive n. Impairment income of non-financial assets (loss) to be reclassified to profit or loss (5,179) (12,231) (17,410) - (17,410) The Group assesses at each reporting date whether there is an indication that an asset may be impaired. in subsequent periods If Other any comprehensive indication exists, income (loss) or when for annual impairment testing for an asset is required, the Group estimates (9,375) (15,465) (24,840) 1,460 (23,380) the year net of tax the asset’s recoverable amount. An asset’s recoverable 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 individual asset, unless the asset does not generate cash inflows that are largely independent of those from Notes other to the assets reconciliation or groups of of assets. equity Where as at January the carrying 1, 2016 amount and of December an asset or 31, CGU 2016 exceeds and total its recoverable comprehensive amount, income the asset for the is year considered ended December impaired and 31, is 2016 written down to its recoverable amount. In 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 The following restatements and presentation reclassification adjustments were made to the US GAAP consolidated financial statement (in thousands US$). specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken 1 Property, plant and equipment (PP&E) into account. If no such transactions can be identified, an appropriate valuation model is used. a. Under US GAAP, Staatsolie has recognized provisions for decommissioning its production field Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss and related facilities, the refinery and the power plant on the basis of discounted expected in those expense categories consistent with the function of the impaired asset, except for a property expenditures. Initially an asset for decommissioning was recognized for the same amount, and previously revalued where the revaluation was taken to OCI. In this case, the impairment is also amortized using the units of production method (UOP). Under the UOP method the asset is recognized in OCI up to the amount of any previous revaluation. amortized in proportion to the amount of asset usage, as described in the general notes to the Page 63 Page 71
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Contact Information Head Office Dr.
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Staatsolie Annual Report 2017

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