Integrated Annual Report of LOTOS Capital Group 2016

⁽¹⁾ The ownership interests as at December 31st 2016 were determined based on the value of contributions made by individual partners relative to the sum of all contributions: 

• Baltic Gas Sp. z o.o. (general partner) 0.001%, (December 31st 2015: 0.001%),
• LOTOS Petrobaltic S.A. (limited partner) 44.908% (December 31st 2015: 43.968%),
• CalEnergy Resources Poland Sp. z o.o. (“CalEnergy”) (limited partner) 55.091% (December 31st 2015: 56.031%).

The Group’s indirect ownership interest in Baltic Gas spółka z ograniczoną odpowiedzialnością i wspólnicy sp. k. (jointly-controlled entity) is 44.90% (December 31st 2015: 43.96%).
In 2016, CalEnergy Resources Poland Sp. z o.o. and LOTOS Petrobaltic S.A. made the agreed cash contributions to Baltic Gas spółka z ograniczoną odpowiedzialnością i wspólnicy sp. k. of PLN 27,163 thousand and PLN 24,515 thousand, respectively, which changed the Group’s ownership interest in the company. Furthermore, in the current reporting period, the shareholders acquired new shares in the increased (by PLN 81 thousand) share capital of Baltic Gas Sp. z o.o. The expenditure of PLN 24,365 thousand, representing the cash contributions made by LOTOS Petrobaltic S.A. to these companies, was disclosed in the consolidated statement of cash flows under cash contributions − equity-accounted joint ventures.

⁽¹⁾ In the partnership agreement, the shares of each of the partners in the profit or loss of Baltic Gas Sp. z o.o. i wspólnicy sp.k. were defined as follows:

• Baltic Gas Sp. z o.o. holds a 0.001% share in profit and a 100% share in loss, 
• LOTOS Petrobaltic S.A. holds a 50.9995% share in profit and
• CalEnergy holds a 48.9995% share in profit.

Accordingly, for IFRS purposes, Baltic Gas Sp. z o.o. i wspólnicy sp.k is an entity jointly controlled by the Group (equity-accounted joint venture under IFRS 11).
⁽²⁾ Following impairment tests, in 2015 the Group recognised an impairment loss on the interest held in UAB Minijos Nafta. In 2015, the impairment loss amounted to PLN 28,457 thousand and brought the cost of the project to zero. The impairment loss on the interest held in UAB Minijos Nafta was disclosed in the consolidated statement of comprehensive income under Share in net profit/loss of equity-accounted joint ventures.

^* For IFRS purposes, Baltic Gas Sp. z o.o. i wspólnicy sp.k is an entity jointly controlled by the Group (equity-accounted joint venture under IFRS 1; see Note 14 above).

⁽¹⁾ PLN 6,736 thousand gain on fair value measurement of a retained interest in a previously controlled entity as at the date of loss of control.