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Staatsolie Annual Report 2017

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<strong>Annual</strong> <strong>Report</strong> <strong>2017</strong> 93<br />

<strong>Staatsolie</strong> Maatschappij Suriname N.V.<br />

<strong>Staatsolie</strong> Maatschappij Suriname N.V.<br />

Notes to the Consolidated financial statements for the years ended December 31, <strong>2017</strong> and 2016<br />

(continued)<br />

Notes to the Consolidated financial statements for the years ended December 31, <strong>2017</strong> and 2016<br />

(continued)<br />

Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated<br />

selling price in the ordinary course of business, less estimated costs of completion and the estimated<br />

costs to sell.<br />

x US$ 1,000<br />

Year ended December 31, 2016 Upstream Downstream Gold mining Corporate<br />

The cost of crude oil and refined products is the purchase cost, the cost of refining, including the<br />

Revenue<br />

appropriate External customers proportion of depreciation, - depletion 357,705 and -amortization - and 357,705 overheads based - on 357,705 normal<br />

Inter segment crude 181,571 (181,571) - - - - -<br />

operating capacity, determined on a weighted average basis.<br />

The net realizable value of crude oil and refined products is based on the estimated selling price in the<br />

Income/(expenses)<br />

ordinary course of business, less the estimated costs of completion and the estimated costs necessary to<br />

Depreciation and impairment of PPE (38,016) (56,317) - (1,295) (95,628) - (95,628)<br />

make Amortization the of sale. intangible assets - - - (2,817) (2,817) - (2,817)<br />

Pipeline fill<br />

Crude<br />

Segment<br />

oil,<br />

profit<br />

which<br />

(loss) (before<br />

is necessary<br />

tax) 87,662<br />

to bring a pipeline<br />

(38,691)<br />

into<br />

8,114<br />

working<br />

(57,203)<br />

order, is treated<br />

(118)<br />

as a part<br />

(9,088)<br />

of the<br />

(9,206)<br />

related<br />

pipeline. This is on the basis that it is not held for sale or consumed in a production process, but is<br />

Income tax expense - (9,993) - 11,602 1,609 - 1,609<br />

necessary to the operation of a facility during more than one operating cycle, and its cost cannot be<br />

Segment net profit (loss) for the<br />

87,662 (48,684) 8,114 (45,601) 1,491 (9,088) (7,597)<br />

recouped year through sale (or is significantly impaired). This applies even if the part of inventory that is<br />

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<br />

inventory. It is valued at cost and is depreciated over the useful life of the related asset.<br />

Project JV n. Impairment of non-financial assets<br />

Capital expenditure 39,456 6,589 - 436 46,481 - 46,481<br />

The Group assesses at each reporting date whether there is an indication that an asset may be impaired.<br />

If any indication exists, or when annual impairment testing for an asset is required, the Group estimates<br />

Adjustments and eliminations<br />

the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash<br />

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<br />

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<br />

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<br />

recoverable including amount, assets the from asset the is acquisition considered of impaired subsidiaries. and is written down to its recoverable amount. In<br />

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<br />

discount rate that reflects current market assessments of the time value of money and the risks<br />

*Explanation of non-IFRS measures<br />

specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken<br />

The Group discloses one financial measure, namely earnings before interest, taxes, depreciation and<br />

into account. If no such transactions can be identified, an appropriate valuation model is used.<br />

amortization (EBITDA), that is not prepared in accordance with IFRS and is therefore considered a non-<br />

Impairment losses of continuing operations are recognized in the consolidated statement of profit or loss<br />

IFRS financial measure. The Group calculated EBITDA by taking the net income and adding back<br />

in those expense categories consistent with the function of the impaired asset, except for a property<br />

interest, taxes, depreciation, and amortization. As EBITDA is used by management as a key performance<br />

previously revalued where the revaluation was taken to OCI. In this case, the impairment is also<br />

indicator, the Group believes that it is useful to be presented to the readers of the consolidated financial<br />

recognized in OCI up to the amount of any previous revaluation.<br />

statements.<br />

Page 63<br />

Page 93<br />

Total<br />

segments<br />

Corporate -<br />

adjustments<br />

&<br />

eliminations<br />

Consolidated<br />

Inter segment other - 118,966 - - 118,966 (118,966) -<br />

Total revenue 181,571 295,100 - - 476,671 (118,966) 357,705<br />

Accretion (5,434) (595) - - (6,029) - (6,029)<br />

Share of profit of Suriname Gold<br />

Materials and supplies are valued -using the weighted - average 8,114 cost method.<br />

- 8,114 - 8,114<br />

Project JV<br />

EBITDA* 131,062 21,719 12,494 (2,336) 162,939 (9,088) 153,851<br />

Other disclosures<br />

Investments in Suriname Gold<br />

- - 285,306 - 285,306 - 285,306

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