16. Trade receivables and other assets
|Note||Dec 31 2016||Dec 31 2015|
|Non-current financial assets:||306,897||145,991|
|Security deposits receivable||17,042||20,458|
|Finance lease receivables||16.2||14,571||11,018|
|Oil and Gas Extraction Facility Decommissioning Fund (1)||33,195||31,794|
|Cash for removal of the MOPU from the YME field||-||69,453|
|Security deposit - ICE Futures||19,564||3,176|
|Security deposits related to licensed activities||20,663||-|
|Cash securing contractual obligations related to future decommissioning of assets||192,017||-|
|Current financial assets:||2,569,646||2,223,366|
|- including from related entities||31.1||16,149||12,219|
|Security deposits receivable||14,643||7,761|
|Cash earmarked for the EFRA Project||-||438,329|
|Cash for removal of the MOPU from the YME field (2)||75,284||39,087|
|Security deposit under EPCM contract for the offshore production unit in the B-8 field||-||10,620|
|Settlements under joint operations (Norwegian fields) (3)||1,415||15,431|
|Security deposits related to the use of gas fuel distribution and transmission system||14,386||13,952|
|Receivables under commodity swap settlement||-||49,208|
|Receivables under payment cards (service stations)||9,063||4,426|
|Non-current non-financial assets||5,216||55,017|
|Costs related to disbursement of the EFRA Project financing||-||48,568|
|Current non-financial assets:||259,317||183,870|
|Value-added tax receivable||110,247||95,753|
|Property and other insurance||25,615||28,294|
|Excise duty on inter-warehouse transfers||34,734||31,015|
|Settlements under joint operations (Norwegian fields) (3)||68,019||-|
|Prepayments for IT services||5,404||7,141|
|- trade payables||2,251,727||1,550,900|
(1) Cash deposited in the bank account of the Oil and Gas Facility Decommissioning Fund (created pursuant to the Geological and Mining Law of February 4th 1994 and the Minister of Economy’s Regulation of June 24th 2002) to cover future costs of decommissioning of oil extraction facilities, see Note 30.1.
(2) Cash held in an escrow account associated with the agreement concluded between the parties involved in the YME project in Norway (for more details on the agreement, see Note 30.1).
(3) Receivables of LOTOS Exploration and Production Norge AS (LOTOS Petrobaltic Group, the upstream segment) under mutual settlements between the operator and consortium members concerning specific Norwegian fields.
As at December 31st 2016 and December 31st 2015, deposits included the Parent’s deposits designated for the overhaul shutdown of the refinery planned for 2017, deposits securing payments of interest under credit facilities contracted for the financing of the 10+ Programme, as well as for the financing and refinancing of inventories.
The collection period for trade receivables in the ordinary course of business is 7−35 days.
As at December 31st 2016, the Group’s receivables of PLN 23,250 thousand (December 31st 2015: PLN 20,845 thousand) were assigned by way of security for the Group’s liabilities.
For description of the financial instruments, see Note 7.22. For description of objectives and policies of financial risk management, see Note 28.
For currency risk sensitivity analysis of financial assets, see Note 28.3.1.
For interest rate risk sensitivity analysis of financial assets, see Note 28.4.1.
For maximum credit risk exposure of financial assets, see Note 28.6.
|At beginning of period||171,640||177,694|
|At end of period||165,313||171,640|
The amounts resulting from recognition or reversal of impairment losses on receivables are presented under Other income or Other expenses (the principal portion) and under Finance income or Finance costs (the default interest portion). In the statement of comprehensive income, recognised and reversed impairment losses on receivables are presented on a net basis under: Other income/expenses (in accordance with the adopted accounting policy the Group offsets corresponding items of Other income and Other expenses in line with Section 34 and 35 of IAS 1 Presentation of Financial Statements).
Recognised impairment losses included PLN 3,489 thousand in respect of the principal (2015: PLN 8,094 thousand) and PLN 547 thousand in respect of interest (2015: PLN 505 thousand).
Reversed impairment losses included PLN 1,935 thousand in respect of the principal (2015: PLN 10,021 thousand) and PLN 559 thousand in respect of interest (2015: PLN 899 thousand).
In 2016, the Group disclosed the recognised and reversed impairment losses on the principal amount of receivables under other expenses, in the amount of PLN 1,554 thousand, including: PLN 3,489 thousand under recognised impairment losses, and PLN 1,935 thousand under impairment loss reversal (see Note 9.4).
In 2015, the Group disclosed the recognised and reversed impairment losses on the principal amount of receivables under other income, in the amount of PLN 1,927 thousand, including: PLN 8,094 thousand under recognised impairment losses, and PLN 10,021 thousand under impairment loss reversal (see Note 9.3).
|Ageing of unimpaired past due receivables:||Dec 31 2016||Dec 31 2015|
|Up to 1 month||75,664||26,123|
|From 1 to 3 months||1,249||707|
|From 3 to 6 months||39||359|
|From 6 months to 1 year||37||1,262|
|Over 1 year||4,048||358|
No impairment losses were recognised on past due receivables because they are secured against credit risk with a mortgage, pledge, insurance policy, bank guarantee or surety.
As at December 31st 2016 and December 31st 2015, the share of trade receivables from the Group’s five largest customers as at the end of the reporting period was 32% of total trade receivables (individually: 2%–11%). In the Group’s opinion, with the exception of receivables from the above-mentioned customers, there is no material concentration of credit risk. The Group’s maximum exposure to credit risk as at the end of the reporting period is best represented by the carrying amounts of those instruments.
The Group has developed and operates the “LOTOS Family” Franchise Programme, which defines the procedures for managing service stations. The Group has entered into franchise agreements with entities operating service stations at their own risk and for their own account (Partners). Receivables under franchise agreements represent mainly expenditure on the design of DOFO service stations operated by dealers under agreements executed for periods from 5 to 10 years.
|Minimum lease payments||Present value of minimum lease payments|
|Dec 31 2016||Dec 31 2015||Dec 31 2016||Dec 31 2015|
|Up to 1 year||7,166||5,608||7,108||5,568|
|From 1 to 5 years||14,671||10,940||14,551||10,862|
|Over 5 years||20||157||20||156|
|Less unrealised finance income||(178)||(120)||-||-|
|Present value of minimum lease payments||21,679||16,585||21,679||16,586|