Staatsolie Annual Report 2017

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