Staatsolie Annual Report 2017

More documents

Recommendations

Info

Confidence in Our Own Abilities 72 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 Notes (continued) to the Consolidated financial statements for the years ended December 31, 2017 and 2016 (continued) Available-for-sale (AFS) financial investments consolidated financial statement. The provision for decommissioning increases by unwinding the AFS financial finance investments charge to include the profit equity and and loss. debt An securities. evaluation Equity of investments the decommissioning classified as assets availablefor-sale performed are those neither as we classified re-measured held-for-trading the decommissioning nor designated liability, at which fair value resulted through in revised profit or asset loss. was After initial values. measurement, US GAAP AFS requires financial that investments periodically are an subsequently evaluation of measured the assumptions at fair value of with the unrealized decommissioning gains or losses asset recognized value and as provision OCI until needs the investment to be performed. is derecognized, Since this was at which not performed time, the cumulative in prior gain years, or loss this was recognized done as in at other January operating 1, 2016 income and or December expense, 31, or 2016. the investment As a result, is determined adjustments to be impaired, were made at which to time, decommissioning the cumulative assets loss is value reclassified and the to provision the consolidated in the respective statement of profit years. or loss The in finance oil, exploration costs and and removed producing from properties the OCI. The were Group increased evaluates by US$11,728 its AFS financial as at January assets to determine 1, 2016 whether and with the US$ ability 11,729 and intention as at December to sell them 31, in 2016, the near respectively. term is still Additional appropriate. depreciation was recognized for US$ 674 as at December 31, 2016 due to changes in useful lives. (ii) Financial liabilities A reclassification of (US$ 2,035) was made to other intangible assets as at January 1, 2016 and Recognition December and measurement 31, 2016 respectively. Furthermore a reclassification of US$ 3,063 and US$ 3,071 was Financial made liabilities from are investment classified, in at initial joint ventures recognition, as as at financial January liabilities 1, 2016 at and fair value December through 31, profit 2016 or loss, loans respectively. and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The b. Group’s The refinery financial decommissioning liabilities include assets trade were and other increased payables, by US$ loans 5,970 and and borrowings US$ 4,468 including as at January bank overdrafts. 1, 2016 and December 31, 2016 respectively. Marketing assets amounting to US$ 314 relating to the asset type other property, plant and equipment were reclassified to refinery assets as at Loans and January borrowings 1, 2016 and December 31, 2016 from other property, plant and equipment assets. The This is depreciation the category included most relevant in cost of to sales the Group. was also After decreased initial recognition, with US$ 321 interest as at December bearing loans 31, 2016 and borrowings due are to a subsequently change in useful measured life of certain at amortized PPE asset cost categories. 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 c. Other EIR PPE amortization assets decreased process. Amortized by (US$ cost 3,394) is calculated and (US$ by 2,211) taking as into at account January any 1, discount 2016 and or premium December on acquisition 31, 2016 and respectively. fees or costs The that adjustment are an integral as at January part of the 1, 2016 EIR. of The (US$ EIR 2,249) amortization was done is included due in finance to the sale costs of in a the parcel consolidated of land to a statement related party, of profit N.V. or Energie loss. This Bedrijven category Suriname generally (N.V. applies EBS) to interest-bearing 2014. loans Staatsolie and borrowings. settled the receivable with GoS through the dividend payable. As of today, the transfer of the asset has not yet been finalized. Furthermore, the power plant decommissioning m. assets Inventories were adjusted for (US$ 831) as at January 1, 2016 and December 31, 2016 respectively. Petroleum Marketing products assets are valued amounting at the lower to (US$ of cost 314) and were net reclassified realizable value. to refinery assets as at January 1, 2016 and December 31, 2016. The depreciation in cost of sales was also increased with US$ 201 Raw materials: as at December 31, 2016 due to changes in the useful life of certain PPE assets. Furthermore • Purchase cost is valued on weighted average method GOw2 assets were decreased as at December 31, 2016 due to the effects of currency translation Finished adjustments goods and work for (US$865) in progress: with the corresponding entry through cost of sales • Cost of direct materials and labor and a proportion of manufacturing overheads based on normal 2. The operating amortization capacity of but other excluding intangible borrowing assets costs was adjusted for (US$ 2,426) and (US$ 1,629) as at January 1, 2016 and December 31, 2016 respectively to present the amortization in the years they relate Page 62 Page 72
Annual Report 2017 73 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 Notes (continued) 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 to (see also note 22). The corresponding entries were recorded through retained earnings and general selling price in the ordinary course of business, less estimated costs of completion and the estimated and administrative cost respectively. Moreover oil, exploration and producing properties were costs to sell. reclassified for US$ 2,035 (see note 1a above). The cost of crude oil and refined products is the purchase cost, the cost of refining, including the 3. appropriate Restricted proportion cash and cash of depreciation, and short term depletion deposits and amortization and overheads based on normal a. operating In accordance capacity, determined with US GAAP on a ASC weighted 210 average and IAS basis. 1, cash held in bank accounts which have legal The restrictions net realizable that value prevent of crude its general oil and use refined also may products be considered is based on restricted. the estimated Staatsolie selling has price restricted in the ordinary cash course for a period of business, longer less than the a year estimated which costs should of be completion classified and as non-current the estimated assets. costs This necessary was not to make done the previously, sale. therefore the Group reclassified those amounts from “cash and short term deposits” as current assets to “restricted cash” as non-current assets for US$ 14,412 and US$ 11,850 as at Materials and supplies are valued using the weighted average cost method. January 1, 2016 and December 31, 2016 respectively. In addition, Staatsolie has restricted cash for a period shorter than a year for US$ 6,444 and US$ 7,370 as at January 1, 2016 and December 31, Pipeline fill 2016 respectively which should be identified within the consolidated statement of financial position, Crude oil, which is necessary to bring a pipeline into working order, is treated as a part of the related therefore the Group reclassified those amounts from “cash and short term deposits” to “restricted pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is cash” within the current assets. necessary to the operation of a facility during more than one operating cycle, and its cost cannot be recouped through sale (or is significantly impaired). This applies even if the part of inventory that is b. In addition, cash and short-term deposits as at January 1, 2016 and December 31, 2016 was reduced deemed to be an item of property, plant and equipment cannot be separated physically from the rest of by (US$ 2,576). This adjustment included a reclassification of US$ 750 from prepayments and other inventory. It is valued at cost and is depreciated over the useful life of the related asset. current assets (see note 8) to cash and an adjustment of (US$ 3,326) to profit and loss due to a system conversion error during the migration process from the previous accounting software to SAP. n. Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. 4. If any Investments indication in exists, joint venture or when decreased annual impairment by US$ 3,063 testing as for at January asset 1, is 2016 required, and December the Group estimates 31, 2016, because the asset’s the recoverable capital investment amount. of POC An asset’s has been recoverable reclassified amount to oil, is exploration the higher and of producing an asset’s properties or cash (see generating note 1a). 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 5. from Deferred other assets tax liability or groups was recalculated of assets. Where based the on carrying the adjustments amount of and an separately asset or CGU disclosed exceeds under its section recoverable 3.3. amount, the asset is considered impaired and is 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 Deferred discount tax rate asset that was reflects recalculated current and market separately assessments disclosed of under the time section value 3.3. of money and the risks 6. specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken 7. into Trade account. receivables If no such decreased transactions by US$ can be 360 identified, and US$ an 6,728 appropriate as at January valuation 1, model 2016 is and used. December 31, 2016 respectively. The adjustment as at January 1, 2016 and as at December 31, 2016 included the Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss down payments received from customers amounting to US$ 971 transferred from accrued liabilities and a in those expense categories consistent with the function of the impaired asset, except for a property cash payment from our subsidiary POC amounting to (US$ 1,329) reclassified from trade receivables to previously revalued where the revaluation was taken to OCI. In this case, the impairment is also prepayments and other current assets. As at December 31, 2016 adjustments were made to increase the recognized in OCI up to the amount of any previous revaluation. provision for doubtful accounts by (US$ 5,094), reclassify US$ 1,201 to prepayment and other current Page 63 Page 73
Page 1:
Staatsolie Maatschappij Suriname N.
Page 4 and 5:
Confidence in Our Own Abilities Vis
Page 6 and 7:
Confidence in Our Own Abilities Sup
Page 8 and 9:
Confidence in Our Own Abilities 8 G
Page 10 and 11:
Confidence in Our Own Abilities 10
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23: Confidence in Our Own Abilities 22
Page 44 and 45: Confidence in Our Own Abilities Not
Page 46 and 47: Confidence in Our Own Abilities 6.2
Page 68 and 69: Page 68 Confidence in Our Own Abili
Page 105: Annual Report 2017 104 Staatsolie M
Page 123:
Annual Report 2017 118 Staatsolie M
Page 126:
Annual Report 2017 120 Staatsolie M
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161:
Contact Information Head Office Dr.
show all

Staatsolie Annual Report 2017

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?