| 13. Property, plant and equipment and intangible assets | |||
|---|---|---|---|
| Note | December 31st 2017 | December 31st 2016 | |
| Non-current assets of the Downstream segment | 13.1 | 8924.7 | 8431.7 |
| Property, plant and equipment | 13.1.1 | 8761.5 | 8261.7 |
| Intangible assets, including: | 163.2 | 170 | |
| Goodwill | 13.1.2 | 45.6 | 45.6 |
| Other intangible assets | 13.1.3 | 117.6 | 124.4 |
| Non-current assets of the Upstream segment | 13.2 | 2709 | 2871.8 |
| Property, plant and equipment | 2404.2 | 2390 | |
| Intangible assets, including: | 304.8 | 481.8 | |
| Goodwill | 1.1 | 1.1 | |
| Other intangible assets | 303.7 | 480.7 | |
| Total property, plant and equipment and intangible assets | 11633.7 | 11303.5 | |
| including: | |||
| Property, plant and equipment | 11165.7 | 10651.7 | |
| Intangible assets | 468 | 651.8 |
| 13.1.1 Property, plant and equipment of the downstream segment | ||||||||
|---|---|---|---|---|---|---|---|---|
| Land | Buildings, structures | Plant and equipment | Vehicles, other | Property, plant and equipment under construction | Total | |||
| Gross carrying amount Jan 1 2017 | 517.4 | 4562.4 | 5593.3 | 667.2 | 1092 | 12432.3 | ||
| Purchase | - | - | - | 20.7 | 999.2 | 1019.9 | (1) | |
| Transfer from property, plant and equipment under construction | 6.3 | 47.2 | 150.8 | 34.6 | -238.9 | - | ||
| Borrowing costs | - | - | - | - | 37.1 | 37.1 | ||
| Expenditure written off due to project discontinuation | - | - | - | - | -13.3 | -13.3 | ||
| Sale | - | -1.1 | -32.2 | (2) | -5.4 | - | -38.7 | |
| Other | - | - | -0.8 | -3 | -1.7 | -5.5 | ||
| Gross carrying amount Dec 31 2017 | 523.7 | 4608.5 | 5711.1 | 714.1 | 1874.4 | 13431.8 | ||
| Accumulated depreciation/amortisation Jan 1 2017 | 16.1 | 1609.4 | 2148.6 | 319.4 | - | 4093.5 | ||
| Depreciation and amortisation | 1.7 | 177.5 | 252.7 | 92.3 | - | 524.2 | ||
| Sale | - | -1.1 | -31.7 | (2) | -5.6 | - | -38.4 | |
| Other | - | - | 0.3 | 0.9 | - | 1.2 | ||
| Accumulated depreciation/amortisation Dec 31 2017 | 17.8 | 1785.8 | 2369.9 | 407 | - | 4580.5 | ||
| Impairment losses January 1st 2017 | 1.5 | 51.4 | 6.5 | 4.1 | 13.6 | 77.1 | ||
| Recognised | - | 23.8 | 2.6 | 1.5 | 0.6 | 28.5 | ||
| Used/Reversed | - | -1.6 | -0.2 | -0.9 | - | -2.7 | ||
| Other | - | - | - | - | -13.1 | -13.1 | ||
| Impairment losses Dec 31 2017 | 1.5 | 73.6 | 8.9 | 4.7 | 1.1 | 89.8 | ||
| Net carrying amount Dec 31 2017 | 504.4 | 2749.1 | 3332.3 | 302.4 | 1873.3 | 8761.5 | ||
| (1) Capital expenditure included chiefly expenditure on the construction of a delayed coking unit with auxiliary infrastructure of the EFRA Project (PLN 821.9m), purchase of catalysts (PLN 96.9m) and spare parts (PLN 20.8m), as well as expansion of the service station chain (PLN 32.8m), and construction of a hydrogen recovery unit (PLN 19.5m). | ||||||||
| (2) Including retirement of spent catalysts in Grupa LOTOS S.A. for an amount of (PLN 19.0m). | ||||||||
| Land | Buildings, structures | Plant and equipment | Vehicles, other | Property, plant and equipment under construction | Total | |||
| Gross carrying amount Jan 1 2016 | 510.2 | 4474.6 | 5556.4 | 620.2 | 395.9 | 11557.3 | ||
| Purchase | - | - | - | 20.4 | 903.1 | 923.5 | (1) | |
| Transfer from property, plant and equipment under construction | 12.8 | 93 | 53.4 | 49.5 | -208.7 | - | ||
| Borrowing costs | - | - | - | - | 4.8 | 4.8 | ||
| Reclassification to non-current assets (or disposal group) held for sale | - | - | - | -2.1 | - | -2.1 | ||
| Sale | -5.6 | -5.6 | -15.3 | -12.1 | -0.4 | -39 | ||
| Other | - | 0.4 | -1.2 | -8.7 | -2.7 | -12.2 | ||
| Gross carrying amount Dec 31 2016 | 517.4 | 4562.4 | 5593.3 | 667.2 | 1092 | 12432.3 | ||
| Accumulated depreciation/amortisation Jan 1 2016 | 14.8 | 1436.8 | 1926.4 | 266.7 | - | 3644.7 | ||
| Depreciation and amortisation | 1.7 | 174.9 | 236.1 | 61.6 | - | 474.3 | ||
| Reclassification to non-current assets (or disposal group) held for sale | - | - | - | -1.4 | - | (1,4) | ||
| Sale | -0.4 | -2.6 | -14.5 | -9.1 | - | -26.6 | ||
| Other | - | 0.3 | 0.6 | 1.6 | - | 2.5 | ||
| Accumulated depreciation/amortisation Dec 31 2016 | 16.1 | 1609.4 | 2148.6 | 319.4 | - | 4093.5 | ||
| Impairment losses January 1st 2016 | 1.2 | 44.4 | 5.7 | 2.6 | 13.6 | 67.5 | ||
| Recognised | 0.3 | 11.3 | 1 | 2 | - | 14.6 | ||
| Used/Reversed | - | -4.3 | -0.2 | -0.5 | - | -5 | ||
| Impairment losses Dec 31 2016 | 1.5 | 51.4 | 6.5 | 4.1 | 13.6 | 77.1 | ||
| Net carrying amount Dec 31 2016 | 499.8 | 2901.6 | 3438.2 | 343.7 | 1078.4 | 8261.7 | ||
| (1) Capital expenditure included chiefly expenditure on the construction of a delayed coking unit with auxiliary infrastructure of the EFRA Project (PLN 672.3m), as well as expansion of the service station chain (PLN 105.5m) and construction of a hydrogen recovery unit (PLN 55.6m). |
| 13.1.2 Goodwill of the downstream segment | ||
|---|---|---|
| Goodwill is allocated to cash-generating units, as presented in the table below: | ||
| December 31st 2017 | December 31st 2016 | |
| Goodwill arising on the acquisition of an organised part of business by LOTOS Paliwa Sp. z o.o.: | ||
| - wholesale of LPG | 10 | 10 |
| - service stations chains (ESSO, Slovnaft Polska) | 33,7 | 33.7 |
| Total | 43.7 | 43.7 |
| Goodwill arising on acquisition of other entities | 1.9 | 1.9 |
| Total goodwill | 45.6 | 45.6 |
| 13.1.3 Other intangible assets of the downstream segment | |||||
|---|---|---|---|---|---|
| Patents, trademarks and licences | Other | Intangible assets under development | Total | ||
| Gross carrying amount Jan 1 2017 | 205.3 | 37.1 | 17.3 | 259.7 | |
| Purchase | - | 0.1 | 7.2 | 7.3 | |
| Transfer from intangible assets under development | 3.5 | 0.5 | -4 | - | |
| Expenditure written off due to project discontinuation | - | - | -9 | (1) | -9 |
| Other | -1.9 | -0.3 | -1.1 | -3.3 | |
| Gross carrying amount Dec 31 2017 | 206.9 | 37.4 | 10.4 | 254.7 | |
| Accumulated depreciation/amortisation Jan 1 2017 | 111.3 | 15 | - | 126.3 | |
| Depreciation and amortisation | 11.4 | 1.4 | - | 12.8 | |
| Other | -1.9 | -0.1 | - | -2 | |
| Accumulated depreciation/amortisation Dec 31 2017 | 120.8 | 16.3 | - | 137.1 | |
| Impairment losses January 1st 2017 | - | - | 9 | 9 | |
| Recognised | - | - | - | - | |
| Used/Reversed | - | - | -9 | (1) | -9 |
| Impairment losses Dec 31 2017 | - | - | - | - | |
| Net carrying amount Dec 31 2017 | 86.1 | 21.1 | 10.4 | 117.6 | |
| Gross carrying amount Jan 1 2016 | 197.9 | 36.3 | 18.8 | 253 | |
| Purchase | - | 0.2 | 7 | 7.2 | |
| Transfer from intangible assets under development | 7.6 | 0.9 | -8.5 | - | |
| Other | -0.2 | -0.3 | - | -0.5 | |
| Gross carrying amount Dec 31 2016 | 205.3 | 37.1 | 17.3 | 259.7 | |
| Accumulated depreciation/amortisation Jan 1 2016 | 100.9 | 13.9 | - | 114.8 | |
| Depreciation and amortisation | 10.4 | 1.2 | - | 11.6 | |
| Other | - | -0.1 | - | -0.1 | |
| Accumulated depreciation/amortisation Dec 31 2016 | 111.3 | 15 | - | 126.3 | |
| Impairment losses January 1st 2016 | - | - | 9 | 9 | |
| Recognised | - | - | - | - | |
| Used/Reversed | - | - | - | - | |
| Impairment losses Dec 31 2016 | - | - | 9 | 9 | |
| Net carrying amount Dec 31 2016 | 94 | 22.1 | 8.3 | 124.4 | |
| (1) Refining units (no effect on net profit or loss). |
| 13.2 Non-current assets of the upstream segment | |||
|---|---|---|---|
| Note | December 31st 2017 | December 31st 2016 | |
| Oil and gas exploration and evaluation assets | 13.2.1 | 256.9 | 396.7 |
| Property, plant and equipment | 52.2 | 55.7 | |
| Intangible assets | 204.7 | 341 | |
| Oil and gas development and production assets | 13.2.2 | 2103.4 | 2098.2 |
| Property, plant and equipment | W 2017 roku Grupa Kapitałowa LOTOS nie posiadała żadnego odbiorcy, którego udział w przychodach ze sprzedaży ogółem Grupy Kapitałowej LOTOS przekroczył 10%. | 1966.9 | |
| Intangible assets | 85.4 | 131.3 | |
| Other non-current assets of the upstream segment | 13.2.3 | 348.7 | 376.9 |
| Property, plant and equipment | 334 | 367.4 | |
| Intangible assets | 14.7 | 9.5 | |
| Total non-current assets of the upstream segment | 2709 | 2871.8 | |
| including: | |||
| Property, plant and equipment | 2404.2 | 2390 | |
| Intangible assets | 304.8 | 481.8 |
| 13.2.1 Oil and gas exploration and evaluation assets | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Property, plant and equipment classified as exploration and evaluation assets | Intangible assets classified as exploration and evaluation assets | Total | |||||||
| Note | Poland | Poland | Norway | Lithuania | |||||
| Gross carrying amount Jan 1 2017 | 167.6 | 9.3 | 429.7 | 10.6 | 617.2 | ||||
| Purchase | 20.2 | 4.4 | 32.8 | - | 57.4 | ||||
| Exchange differences on translating foreign operations | - | - | -44.4 | -0.6 | -45 | ||||
| Reclassification to development assets | - | - | -200.8 | (2) | - | -200.8 | |||
| Gross carrying amount Dec 31 2017 | 187.8 | 13.7 | 217.3 | 10 | 428.8 | ||||
| Accumulated depreciation/amortisation Jan 1 2017 | - | 8.9 | - | - | 8.9 | ||||
| Depreciation and amortisation | - | 0.5 | - | - | 0.5 | ||||
| Accumulated depreciation/amortisation Dec 31 2017 | - | 9.4 | - | - | 9.4 | ||||
| Impairment losses January 1st 2017 | 111.9 | - | 89.1 | 10.6 | 211.6 | ||||
| Recognised | 9.4 | 23.7 | (1) | - | - | - | 23.7 | ||
| Exchange differences on translating foreign operations | - | - | -7.3 | -0.6 | -7.9 | ||||
| Reclassification to development assets | - | - | -64.9 | (2) | - | -64.9 | |||
| Impairment losses Dec 31 2017 | 135.6 | - | 16.9 | 10 | 162.5 | ||||
| Net carrying amount Dec 31 2017 | 52.2 | 4.3 | 200.4 | - | 256.9 | ||||
| (1) Expenditure on exploration and evaluation work on the Kamień Pomorski area (of PLN 23.7m). | |||||||||
| (2) Utgard (formerly Alfa Sentral) licences forming part of the acquired Sleipner assets in Norway. | |||||||||
| Property, plant and equipment classified as exploration and evaluation assets | Intangible assets classified as exploration and evaluation assets | Total | |||||||
| Note | Poland | Poland | Norway | Lithuania | |||||
| Gross carrying amount Jan 1 2016 | 167.8 | 9.9 | 467.2 | 10.2 | 655.1 | ||||
| Purchase | 1.7 | 0.3 | 52 | (2) | - | 54 | |||
| Exchange differences on translating foreign operations | - | - | 43.6 | 0.4 | 44 | ||||
| Expenditure written off due to project discontinuation | 9.4 | -1.9 | (1) | -0.9 | (1) | -133.1 | (3) | - | -135.9 |
| Gross carrying amount Dec 31 2016 | 167.6 | 9.3 | 429.7 | 10.6 | 617.2 | ||||
| Accumulated depreciation/amortisation Jan 1 2016 | - | 8 | - | - | 8 | ||||
| Depreciation and amortisation | - | 1.6 | - | - | 1.6 | ||||
| Expenditure written off due to project discontinuation | 9.4 | - | -0.7 | (1) | - | - | -0.7 | ||
| Accumulated depreciation/amortisation Dec 31 2016 | - | 8.9 | - | - | 8.9 | ||||
| Impairment losses January 1st 2016 | 49 | 0.2 | 125.5 | 10.2 | 184.9 | ||||
| Recognised | 9.4 | 64.8 | (1) | - | 73.4 | (4) | - | 138.2 | |
| Exchange differences on translating foreign operations | - | - | 10.9 | 0.4 | 11.3 | ||||
| Used/Reversed | 9.4 | -1.9 | (1) | -0.2 | (1) | -120.7 | (3) | - | -122.8 |
| Impairment losses Dec 31 2016 | 111.9 | - | 89.1 | 10.6 | 211.6 | ||||
| Net carrying amount Dec 31 2016 | 55.7 | 0.4 | 340.6 | - | 396.7 | ||||
| (1) Expenditure on exploration and evaluation work related to the Słupsk area (decision to abandon the project) and the Gaz Południe area (a PLN 64.8m write-off of expenditure on seismic surveys). | |||||||||
| (2) Including expenditure on Sleipner assets (PLN 18.7m) and Heimdal assets (PLN 31.2m). | |||||||||
| (3) Capitalised expenditures related to PL643 and PL655 licences (effect on the Group’s profit/(loss): PLN 12.3m). | |||||||||
| (4) Including the Utgard (formerly Alfa Sentral) field assets of PLN 67.6m and PL797 licence of PLN 5.8m. | |||||||||
| Property, plant and equipment are classified as exploration and evaluation assets until the technical feasibility and commercial viability of extracting the discovered resources are demonstrated. | |||||||||
| Due to significant market volatility, in particular with respect to oil and gas prices, the adopted assumptions may be subject to justifiable changes, and such changes may necessitate a revision of the carrying amounts of the Utgard field’s assets in the future. To determine the effect of key factors on the test results, the Group carried out an analysis of sensitivity to a -15%/+15% change in oil and gas price, -15%/+15% change in production volumes, -15%/+15% change in the USD/NOK exchange rate, and -0.5pp/+ 0.5pp change in the discount rate. The table below presents the estimated changes in impairment losses following changes in the key assumptions: | |||||||||
| Factor | Change | Impact on impairment losses | |||||||
| PLN m | |||||||||
| Crude oil and gas prices | 64.9 | -20.3 | |||||||
| Production volume | 64.9 | -8 | |||||||
| USD/NOK exchange rate | 64.9 | -11.8 | |||||||
| Discount rate | - | 4.9 | |||||||
| 13.2.2 Oil and gas development and production assets | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Oil and gas development assets | Oil and gas production assets | Total | |||||||||||
| Note | Poland | Norway | Total | Poland | Norway | Lithuania | Total | ||||||
| Gross carrying amount Jan 1 2017 | - | 1592.1 | 1592.1 | 1650.4 | 1603.4 | 659.8 | 3913.6 | 5505.7 | |||||
| Purchase | - | 82 | (1) | 82 | 154.8 | (2) | 47.7 | 2.7 | 205.2 | 287.2 | |||
| Exchange differences on translating foreign operations | - | -224.4 | -224.4 | - | -208.1 | -37.8 | -245.9 | -470.3 | |||||
| Estimated costs of decommissioning of oil and gas extraction facilities | - | - | - | 6.6 | -35.6 | - | -29 | -29 | |||||
| Reclassification of refining and other assets to oil and gas development and production assets | - | - | - | 0.1 | - | - | 0.1 | 0.1 | |||||
| Reclassification of exploration and evaluation assets | - | 200.8 | (3) | 200.8 | - | - | - | - | 200.8 | ||||
| Borrowing costs | - | - | - | 12.5 | - | - | 12.5 | 12.5 | |||||
| Expenditure written off due to project discontinuation | - | - | - | -0.5 | - | - | -0.5 | -0.5 | |||||
| Other | - | - | - | - | - | 1.7 | 1.7 | 1.7 | |||||
| Gross carrying amount Dec 31 2017 | - | 1650.5 | 1650.5 | 1823.9 | 1407.4 | 626.4 | 3857.7 | 5508.2 | |||||
| Accumulated depreciation/amortisation Jan 1 2017 | - | - | - | 461 | 827 | 293 | 1581 | 1581 | |||||
| Depreciation and amortisation | - | - | - | 38.4 | 206.4 | 18.2 | 263 | 263 | |||||
| Exchange differences on translating foreign operations | - | - | - | - | -120.5 | -17.1 | -137.6 | -137.6 | |||||
| Reclassification to production assets | - | - | - | 0.1 | - | - | 0.1 | 0.1 | |||||
| Accumulated depreciation/amortisation Dec 31 2017 | - | - | - | 499.5 | 912.9 | 294.1 | 1706.5 | 1706.5 | |||||
| Impairment losses January 1st 2017 | - | 1579.7 | 1579.7 | - | 40.1 | 206.7 | 246.8 | 1826.5 | |||||
| Recognised | 9.4 | - | - | - | - | - | 32.9 | 32.9 | 32.9 | ||||
| Exchange differences on translating foreign operations | - | -208.4 | -208.4 | - | -5.2 | -12.4 | -17.6 | -226 | |||||
| Reclassification of exploration and evaluation assets | - | 64.9 | (3) | 64.9 | - | - | - | - | 64.9 | ||||
| Impairment losses Dec 31 2017 | - | 1436.2 | 1436.2 | - | 34.9 | 227.2 | 262.1 | 1698.3 | |||||
| Net carrying amount Dec 31 2017 | - | 214.3 | 214.3 | 1324.4 | 459.6 | 105.1 | 1889.1 | 2103.4 | |||||
| (1) Expenditures on YME (PLN 47.2m) and Sleipner (PLN 34.9m) assets. | |||||||||||||
| (2) Expenditure on the B8 field. | |||||||||||||
| (3) Utgard (formerly Alfa Sentral) licence forming part of the acquired Sleipner assets in Norway. | |||||||||||||
| Oil and gas development assets | Oil and gas production assets | Total | |||||||||||
| Note | Poland | Norway | Total | Poland | Norway | Lithuania | Total | ||||||
| Gross carrying amount Jan 1 2016 | - | 1452.4 | 1452.4 | 1384.7 | 1497.2 | 636.1 | 3518 | 4970.4 | |||||
| Purchase | - | 12 | -1 | 12 | 213.2 | (2) | 46.3 | -5 | 0.1 | 259.6 | 271.6 | ||
| Exchange differences on translating foreign operations | - | 127.7 | 127.7 | - | 146.4 | 24.3 | 170.7 | 298.4 | |||||
| Estimated costs of decommissioning of oil and gas extraction facilities | - | - | - | -2.9 | -87.9 | -0.4 | -91.2 | -91.2 | |||||
| Reclassification to oil and gas production assets | - | - | - | 58.5 | (3) | - | - | 58.5 | 58.5 | ||||
| Expenditure written off due to project discontinuation | - | - | - | -3.3 | -4 | - | - | -3.3 | -3.3 | ||||
| Other | - | - | - | 0.2 | 1.4 | -0.3 | 1.3 | 1.3 | |||||
| Gross carrying amount Dec 31 2016 | - | 1592.1 | 1592.1 | 1650.4 | 1603.4 | 659.8 | 3913.6 | 5505.7 | |||||
| Accumulated depreciation/amortisation Jan 1 2016 | - | - | - | 398.4 | 310.3 | 258.1 | 966.8 | 966.8 | |||||
| Depreciation and amortisation | - | - | - | 38.8 | 471.8 | 25.1 | 535.7 | 535.7 | |||||
| Exchange differences on translating foreign operations | - | - | - | - | 44.9 | 10.1 | 55 | 55 | |||||
| Reclassification to oil and gas production assets | - | - | - | 27.1 | -3 | - | - | 27.1 | 27.1 | ||||
| Expenditure written off due to project discontinuation | - | - | - | -3.3 | -4 | - | - | -3.3 | -3.3 | ||||
| Other | - | - | - | - | - | -0.3 | -0.3 | -0.3 | |||||
| Accumulated depreciation/amortisation Dec 31 2016 | - | - | - | 461 | 827 | 293 | 1581 | 1581 | |||||
| Impairment losses January 1st 2016 | - | 1452.4 | 1452.4 | - | 40.6 | 194.3 | 234.9 | 1687.3 | |||||
| Recognised | 9.4 | - | - | - | - | - | 12.4 | -7 | 12.4 | 12.4 | |||
| Exchange differences on translating foreign operations | - | 127.3 | 127.3 | - | 3.9 | 7.5 | 11.4 | 138.7 | |||||
| Used/Reversed | - | - | - | - | -4.4 | -6 | -7.5 | -8 | -11.9 | -11.9 | |||
| Impairment losses Dec 31 2016 | - | 1579.7 | 1579.7 | - | 40.1 | 206.7 | 246.8 | 1826.5 | |||||
| Net carrying amount Dec 31 2016 | - | 12.4 | 12.4 | 1189.4 | 736.3 | 160.1 | 2085.8 | 2098.2 | |||||
| (1) Expenditure on the YME field. | |||||||||||||
| (2) Expenditure on development of the B-8 field (PLN 212.4m) and the B-3 field (PLN 0.8m). | |||||||||||||
| (3) Offshore gas pipeline from the B-3 field. | |||||||||||||
| (4) Expenditure related to the Piła area (no effect on the LOTOS Group’s profit/(loss)). | |||||||||||||
| (5) Expenditure on Sleipner assets (PLN 42.5m) and Heimdal assets (PLN 3.6m) | |||||||||||||
| (6) Expenditure on Heimdal assets. | |||||||||||||
| (7) Production infrastructure on the: Auksoras, Vėžaičiai, Kretinga, Ablinga and Ližiai fields. | |||||||||||||
| (8) Girkaliai field. | |||||||||||||
| The table below presents the estimated changes in potential impairment losses on the tested Heimdal and Sleipner assets following changes in the key assumptions: | |||||||||||||
| Factor | Change | Impact on impairment losses | |||||||||||
| PLN m | |||||||||||||
| Crude oil and gas prices | 20.7 | -12.8 | |||||||||||
| Production volume | 19.5 | -11.6 | |||||||||||
| USD/NOK exchange rate | 20.4 | -12.5 | |||||||||||
| Discount rate | - | 4.9 | |||||||||||
| The table below presents the estimated changes in impairment losses on the Lithuanian assets referred to above following changes in the key assumptions: | |||||||||||||
| Factor | Change | Impact on impairment losses | |||||||||||
| PLN m | |||||||||||||
| Crude oil and gas prices | 32.3 | -32.6 | |||||||||||
| Production volume | 26 | -26.2 | |||||||||||
| USD/EUR exchange rate | 24 | -24.2 | |||||||||||
| Discount rate | -2.9 | 2.9 | |||||||||||
| Assets related to future costs of decommissioning of oil and gas extraction facilities | |||||||||||||
| Oil and gas development assets | Oil and gas production assets | Total | |||||||||||
| Norway | Poland | Norway | Lithuania | Total | |||||||||
| Gross carrying amount Jan 1 2017 | 134.9 | 107.4 | 821.1 | 1.7 | 930.2 | 1065.1 | |||||||
| Estimated costs of decommissioning of oil and gas extraction facilities | - | 6.6 | -35.7 | - | -29.1 | -29.1 | |||||||
| Exchange differences on translating foreign operations | -17.4 | - | -103.8 | -0.1 | -103.9 | -121.3 | |||||||
| Gross carrying amount Dec 31 2017 | 117.5 | 114 | 681.6 | 1.6 | 797.2 | 914.7 | |||||||
| Accumulated depreciation/amortisation Jan 1 2017 | - | 80.1 | 405.8 | 1.6 | 487.5 | 487.5 | |||||||
| Depreciation and amortisation | - | 1.2 | 100 | - | 101.2 | 101.2 | |||||||
| Exchange differences on translating foreign operations | - | - | -59 | - | -59 | -59 | |||||||
| Accumulated depreciation/amortisation Dec 31 2017 | - | 81.3 | 446.8 | 1.6 | 529.7 | 529.7 | |||||||
| Impairment losses January 1st 2017 | 134.9 | - | 33.1 | - | 33.1 | 168 | |||||||
| Recognised | - | - | - | - | - | - | |||||||
| Exchange differences on translating foreign operations | -17.4 | - | -4.2 | -0.1 | -4.3 | -21.7 | |||||||
| Used/Reversed | - | - | - | - | - | - | |||||||
| Impairment losses Dec 31 2017 | 117.5 | - | 28.9 | -0.1 | 28.8 | 146.3 | |||||||
| Net carrying amount Dec 31 2017 | - | 32.7 | 205.9 | 0.1 | 238.7 | 238.7 | |||||||
| Oil and gas | Oil and gas production assets | Total | |||||||||||
| development assets | |||||||||||||
| Norway | Poland | Norway | Lithuania | Total | |||||||||
| Gross carrying amount Jan 1 2016 | 122.8 | 108.1 | 829.8 | 2 | 939.9 | 1062.7 | |||||||
| Estimated costs of decommissioning of oil and gas extraction facilities | - | -2.9 | -87.9 | -0.4 | -91.2 | -91.2 | |||||||
| Exchange differences on translating foreign operations | 12.1 | - | 79.2 | 0.1 | 79.3 | 91.4 | |||||||
| Reclassification to oil and gas development and production assets | - | 2.2 | -1 | - | - | 2.2 | 2.2 | ||||||
| Gross carrying amount Dec 31 2016 | 134.9 | 107.4 | 821.1 | 1.7 | 930.2 | 1065.1 | |||||||
| Accumulated depreciation/amortisation Jan 1 2016 | - | 76.6 | 124 | 1.3 | 201.9 | 201.9 | |||||||
| Depreciation and amortisation | - | 1.3 | 261.6 | 0.2 | 263.1 | 263.1 | |||||||
| Exchange differences on translating foreign operations | - | - | 20.2 | 0.1 | 20.3 | 20.3 | |||||||
| Reclassification of development assets to production assets | - | 2.2 | -1 | - | - | 2.2 | 2.2 | ||||||
| Accumulated depreciation/amortisation Dec 31 2016 | - | 80.1 | 405.8 | 1.6 | 487.5 | 487.5 | |||||||
| Impairment losses January 1st 2016 | 122.8 | - | 32 | - | 32 | 154.8 | |||||||
| Recognised | - | - | - | - | - | - | |||||||
| Exchange differences on translating foreign operations | 12.1 | - | 3.1 | - | 3.1 | 15.2 | |||||||
| Used/Reversed | - | - | -2 | - | -2 | -2 | |||||||
| Impairment losses Dec 31 2016 | 134.9 | - | 33.1 | - | 33.1 | 168 | |||||||
| Net carrying amount Dec 31 2016 | - | 27.3 | 382.2 | 0.1 | 409.6 | 409.6 | |||||||
| (1) Offshore gas pipeline from the B-3 field. |
| 13.2.3 Other non-current assets of the upstream segment | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Land | Buildings, structures | Plant and equipment | Vehicles, other | Property, plant and equipment under construction | Intangible assets | Total | ||||
| Gross carrying amount Jan 1 2017 | 11.4 | 53.1 | 69.1 | 560.4 | 15.3 | 31.1 | 740.4 | |||
| Purchase | - | - | 0.5 | 0.1 | 12.5 | 9.9 | 23 | |||
| Transfer from property, plant and equipment under construction | - | - | 0.3 | 13.6 | -13.9 | - | - | |||
| Exchange differences on translating foreign operations | - | - | -2 | -30.5 | -0.2 | -3.2 | -35.9 | |||
| Reclassification of refining and other assets to production assets | - | - | - | -0.1 | - | - | -0.1 | |||
| Other | - | - | 0.9 | - | - | - | 0.9 | |||
| Sale | - | - | -0.1 | -44.1 | -0.1 | - | -44.3 | |||
| Gross carrying amount Dec 31 2017 | 11.4 | 53.1 | 68.7 | 499.4 | 13.6 | 37.8 | 684 | |||
| Accumulated depreciation/amortisation Jan 1 2017 | 4.2 | 20 | 39.1 | 272.8 | - | 21.6 | 357.7 | |||
| Depreciation and amortisation | 0.3 | 1.8 | 3.1 | 35.4 | - | 3.2 | 43.8 | |||
| Exchange differences on translating foreign operations | - | - | -1.5 | -25.9 | - | -1.7 | -29.1 | |||
| Reclassification of refining and other assets to production assets | - | - | - | -0.1 | - | - | -0.1 | |||
| Sale | - | - | -0.1 | -39.7 | - | - | -39.8 | |||
| Other | - | - | - | 0.3 | - | - | 0.3 | |||
| Accumulated depreciation/amortisation Dec 31 2017 | 4.5 | 21.8 | 40.6 | 242.8 | - | 23.1 | 332.8 | |||
| Impairment losses January 1st 2017 | - | - | 0.6 | 5.1 | 0.1 | - | 5.8 | |||
| Recognised | - | - | - | 0.8 | - | - | 0.8 | |||
| Exchange differences on translating foreign operations | - | - | - | -0.5 | - | - | -0.5 | |||
| Used/Reversed | - | - | - | -3.5 | -0.1 | - | -3.6 | |||
| Impairment losses Dec 31 2017 | - | - | 0.6 | 1.9 | - | - | 2.5 | |||
| Net carrying amount Dec 31 2017 | 6.9 | 31.3 | 27.5 | 254.7 | 13.6 | 14.7 | 348.7 | |||
| Land | Buildings, structures | Plant and equipment | Vehicles, other | Property, plant and equipment under construction | Intangible assets | Total | ||||
| Gross carrying amount Jan 1 2016 | 11.4 | 96.3 | 84.6 | 539.1 | 15.1 | 29.5 | 776 | |||
| Purchase | - | - | 0.3 | 11.6 | 12.3 | 0.2 | 24.4 | |||
| Transfer from property, plant and equipment under construction | - | - | 0.1 | 10.6 | -10.7 | - | - | |||
| Exchange differences on translating foreign operations | - | 0.1 | 0.7 | 12.8 | - | 1.7 | 15.3 | |||
| Reclassification of refining and other assets to production assets | - | -42.4 | -1 | -16.1 | -1 | - | - | - | -58.5 | |
| Expenditure written off due to project discontinuation | - | - | - | - | - | - | - | |||
| Sale | - | - | -0.5 | -13.7 | - | -0.3 | -14.5 | |||
| Other | - | -0.9 | - | - | -1.4 | - | -2.3 | |||
| Gross carrying amount Dec 31 2016 | 11.4 | 53.1 | 69.1 | 560.4 | 15.3 | 31.1 | 740.4 | |||
| Accumulated depreciation/amortisation Jan 1 2016 | 3.9 | 34.4 | 45.5 | 235.1 | - | 16.6 | 335.5 | |||
| Depreciation and amortisation | 0.3 | 2.3 | 4 | 33.7 | - | 4.4 | 44.7 | |||
| Exchange differences on translating foreign operations | - | - | 0.6 | 11.2 | - | 0.9 | 12.7 | |||
| Reclassification of refining and other assets to production assets | - | -16.5 | -1 | -10.6 | -1 | - | - | - | -27.1 | |
| Sale | - | - | -0.4 | -7.2 | - | -0.3 | -7.9 | |||
| Other | - | -0.2 | - | - | - | - | -0.2 | |||
| Accumulated depreciation/amortisation Dec 31 2016 | 4.2 | 20 | 39.1 | 272.8 | - | 21.6 | 357.7 | |||
| Impairment losses January 1st 2016 | - | - | 0.6 | 5.3 | 0.1 | - | 6 | |||
| Recognised | - | - | - | 5.4 | -2 | - | - | 5.4 | ||
| Exchange differences on translating foreign operations | - | - | - | 0.3 | - | - | 0.3 | |||
| Used/Reversed | - | - | - | -5.9 | - | - | -5.9 | |||
| Impairment losses Dec 31 2016 | - | - | 0.6 | 5.1 | 0.1 | - | 5.8 | |||
| Net carrying amount Dec 31 2016 | 7.2 | 33.1 | 29.4 | 282.5 | 15.2 | 9.5 | 376.9 | |||
| (1) Offshore gas pipeline from the B-3 field. | ||||||||||
| (2) Including ships valued at PLN 5.3m, see Note 9.4. | ||||||||||
| Other property, plant and equipment and intangible assets of the upstream segment include ships and a multi-purpose mobile drilling rig. |
| 13.3 Other information on property, plant and equipment and intangible assets | ||
|---|---|---|
| Property, plant and equipment used under finance lease | ||
| December 31st 2017 | December 31st 2016 | |
| Gross carrying amount | 323.1 | 312.3 |
| Accumulated depreciation | 141.5 | 103.7 |
| Impairment losses | - | 0.8 |
| Net carrying amount | 181.6 | 207.8 |
| The Group uses finance leases to finance primarily rolling stock assets (downstream segment); see also Note 22.4. | ||
| Allocation of depreciation | 2017 | 2016 |
| Cost of sales | 716.6 | 936.3 |
| Distribution costs | 77.8 | 87.5 |
| Administrative expenses | 37.1 | 35.6 |
| Change in products and adjustments to cost of sales | 12.8 | 8.5 |
| Total | 844.3 | 1067.9 |
