Staatsolie Annual Report 2017

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Confidence in Our Own Abilities 92 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 about resource allocation and performance assessment. Segment performance is evaluated based on AFS operating financial profit investments or loss and include is measured equity and consistently debt securities. with operating Equity investments profit or loss classified in the as consolidated availablefor-sale financial are statements. those neither classified as held-for-trading nor designated at fair value through profit or loss. After initial measurement, AFS financial investments are subsequently measured at fair value with Corporate - unrealized x US$ 1,000 gains or losses recognized as OCI until the investment is derecognized, Total at which time, the adjustments Upstream Downstream Gold mining Corporate Consolidated Year ended December 31, 2017 segments cumulative gain or loss is recognized in other operating income or expense, or & the investment is eliminations determined to be impaired, at which time, the cumulative loss is reclassified to the consolidated statement Revenue of External profit customers or loss in finance costs and - removed 433,678 from the -OCI. The Group - evaluates 433,678 its AFS - financial 433,678assets Inter segment crude 272,697 (272,697) - - - - - to determine whether the ability and intention to sell them in the near term is still appropriate. Inter segment other - 156,313 - - 156,313 (156,313) - Total revenue 272,697 317,294 - - 589,991 (156,313) 433,678 (ii) Income/(expenses) Financial liabilities Depreciation (38,436) (54,108) - (755) (93,299) - (93,299) Amortization (2,037) - - (780) (2,817) - (2,817) Recognition Accretion and measurement (4,118) (579) - - (4,697) - (4,697) Share of profit of Suriname Gold Financial liabilities are classified, -at initial recognition, - 63,725 as financial - liabilities 63,725 at fair value - through 63,725 profit or Project JV loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognized initially at fair EBITDA* 213,683 22,974 91,995 (26,320) 302,332 (16,915) 285,417 value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Segment Group’s profit (loss) financial (before tax) liabilities 169,091 include trade (34,133) and other 63,725 payables, (87,498) loans 111,185 and borrowings (16,915) including 94,270 bank overdrafts. Income tax expense - (9,380) - (23,945) (33,325) 206 (33,119) Segment net profit (loss) for the 169,091 (43,513) 63,725 (111,443) 77,860 (16,709) 61,151 Loans year and borrowings This Total assets is the category most relevant 626,766 to 1,274,676 the Group. 277,306 After initial 459,664 recognition, 2,638,412 interest (427,525) bearing 2,210,887 loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized Other disclosures in the consolidated statement of profit or loss when the liabilities are derecognized as well as Investments in Suriname Gold - - 277,306 - 277,306 - 277,306 through Project JV the EIR amortization process. Amortized cost is calculated by taking into account any discount or Capital expenditure 111,450 20,690 - 221 132,361 - 132,361 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 92
Annual Report 2017 93 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 selling price in the ordinary course of business, less estimated costs of completion and the estimated costs to sell. x US$ 1,000 Year ended December 31, 2016 Upstream Downstream Gold mining Corporate The cost of crude oil and refined products is the purchase cost, the cost of refining, including the Revenue appropriate External customers proportion of depreciation, - depletion 357,705 and -amortization - and 357,705 overheads based - on 357,705 normal Inter segment crude 181,571 (181,571) - - - - - operating capacity, determined on a weighted average basis. The net realizable value of crude oil and refined products is based on the estimated selling price in the Income/(expenses) ordinary course of business, less the estimated costs of completion and the estimated costs necessary to Depreciation and impairment of PPE (38,016) (56,317) - (1,295) (95,628) - (95,628) make Amortization the of sale. intangible assets - - - (2,817) (2,817) - (2,817) Pipeline fill Crude Segment oil, profit which (loss) (before is necessary tax) 87,662 to bring a pipeline (38,691) into 8,114 working (57,203) order, is treated (118) as a part (9,088) of the (9,206) related pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is Income tax expense - (9,993) - 11,602 1,609 - 1,609 necessary to the operation of a facility during more than one operating cycle, and its cost cannot be Segment net profit (loss) for the 87,662 (48,684) 8,114 (45,601) 1,491 (9,088) (7,597) recouped year through sale (or is significantly impaired). This applies even if the part of inventory that is deemed Total assets to be an item of property, 588,669plant 1,289,535 and equipment 285,306 cannot 383,291 be separated 2,546,801 physically (354,962) from the 2,191,839 rest of inventory. It is valued at cost and is depreciated over the useful life of the related asset. Project JV n. Impairment of non-financial assets Capital expenditure 39,456 6,589 - 436 46,481 - 46,481 The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates Adjustments and eliminations the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating • Finance units income (CGU) and fair costs, value and less fair costs value of gains disposal and and losses its on value financial use. assets It is are determined not allocated for an to individual individual asset, unless segments the asset the does underlying not generate instruments cash are inflows managed that are on a largely group independent basis. of those from • other Capital assets expenditure or groups consists of assets. of additions Where of the property, carrying plant amount and equipment of an asset and or intangible CGU exceeds assets its recoverable including amount, assets the from asset the is acquisition considered of impaired subsidiaries. and is written down to its recoverable amount. In assessing • Inter-segment value in use, revenues the estimated are eliminated future cash on flows consolidation 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 *Explanation of non-IFRS measures specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken The Group discloses one financial measure, namely earnings before interest, taxes, depreciation and into account. If no such transactions can be identified, an appropriate valuation model is used. amortization (EBITDA), that is not prepared in accordance with IFRS and is therefore considered a non- Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss IFRS financial measure. The Group calculated EBITDA by taking the net income and adding back in those expense categories consistent with the function of the impaired asset, except for a property interest, taxes, depreciation, and amortization. As EBITDA is used by management as a key performance previously revalued where the revaluation was taken to OCI. In this case, the impairment is also indicator, the Group believes that it is useful to be presented to the readers of the consolidated financial recognized in OCI up to the amount of any previous revaluation. statements. Page 63 Page 93 Total segments Corporate - adjustments & eliminations Consolidated Inter segment other - 118,966 - - 118,966 (118,966) - Total revenue 181,571 295,100 - - 476,671 (118,966) 357,705 Accretion (5,434) (595) - - (6,029) - (6,029) Share of profit of Suriname Gold Materials and supplies are valued -using the weighted - average 8,114 cost method. - 8,114 - 8,114 Project JV EBITDA* 131,062 21,719 12,494 (2,336) 162,939 (9,088) 153,851 Other disclosures Investments in Suriname Gold - - 285,306 - 285,306 - 285,306
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Contact Information Head Office Dr.
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Staatsolie Annual Report 2017

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