Grupa LOTOS S.A. - Integrated Annual Report 2012
18. Trade receivables and other assets
PLN '000 | Dec 31 2012 |
Dec 31 2011 (restated) |
1 stycznia 2011 (restated) |
---|---|---|---|
Financial assets | |||
Non-current financial assets | |||
Other financial assets: | 90,198 | 117,404 | 63,303 |
Security deposits receivable | 28,555 | 20,919 | 12,594 |
Finance lease receivables | 6,180 | 3,564 | 4,599 |
Other receivables | 7,063 | 8,830 | 11,419 |
Shares | 9,756 | 9,746 | 9,915 |
Oil and Gas Facility Decommissioning Fund (1) | 27,481 | 24,491 | 21,668 |
Deposits (2) | - | 38,106 | - |
Security deposits (margins) (3) | 11,163 | 11,748 | 3,108 |
Total | 90,198 | 117,404 | 63,303 |
Current financial assets | |||
Trade receivables, including: | 1,640,360 | 2,075,562 | 1,740,890 |
- from related entities | 2,507 | 90 | - |
Other financial assets: | 173,238 | 119,789 | 26,168 |
Security deposits receivable | 10,483 | 7,998 | 4,896 |
Other | 21,872 | 21,555 | 15,340 |
Deposits (2) | 122,563 | 40,565 | 5,932 |
Cash blocked in bank accounts | 18,320 (4) | 49,671 (4), (5) | - |
Total | 1,813,598 | 2,195,351 | 1,767,058 |
Total financial assets | 1,903,796 | 2,312,755 | 1,830,361 |
Non-financial assets | |||
Non-current non-financial assets | |||
Prepayments for lease of railway locomotives | 8,990 | - | - |
Other | 8,044 | 6,789 | 7,379 |
Total | 17,034 | 6,789 | 7,379 |
Current non-financial assets | |||
Receivables from the state budget other than income tax (6) | 167,932 | 52,858 | 39,914 |
Property and other insurance | 39,207 | 31,015 | 24,070 |
Prepayments for lease of railway locomotives | 2,336 | - | - |
Joint venture receivables (Norwegian deposits) | 41,756 | 50 | - |
Other (7) | 37,632 | 42,987 | 29,515 |
Total | 288,863 | 126,910 | 93,499 |
Total non-financial assets | 305,897 | 133,699 | 100,878 |
Total | 2,209,693 | 2,446,454 | 1,931,239 |
including: | |||
non-current | 107,232 | 124,193 | 70,682 |
current | 2,102,461 | 2,322,261 | 1,860,557 |
(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 and gas facilities, referred to in Note 31.1.
(2) “Deposits” include primarily deposits of the Parent:
- deposits of PLN 83,826 thousand (December 31st 2011: PLN 38,106 thousand), comprising funds earmarked for the financing of an overhaul shutdown planned for 2013, as provided for in the credit facility agreements executed to finance the 10+ Programme, referred to on Note 28.1.
- deposits of PLN 11,432 thousand (December 31st 2011: PLN 7,874 thousand), serving as security for payment of interest on an inventory financing facility, referred to in Note 28.1.
- deposits of PLN 27,244 thousand (December 31st 2011: PLN 32,623 thousand), serving as security for payment of interest on credit facilities contracted to finance the 10+ Programme, referred to in Note 28.1.
(3) Including security deposit provided by the Parent as margin to BNP Paribas Bank Polska to enable execution of transactions on the ICE Futures Internet platform, in the amount of PLN 11,163 thousand (December 31st 2011: PLN 11,748 thousand margin placed with Marex Financial, a brokerage firm).
(4) Cash of PLN 18,320 thousand blocked in LOTOS Paliwa Sp. z o.o.’s bank account by a court enforcement officer in connection with court proceedings concerning WANDEKO.
(5) Blocked cash, including:
- cash of PLN 26,169 thousand, representing AB LOTOS Geonafta's liabilities under the acquisition of shares in UAB Meditus. The amount of the liabilities was held in an escrow account to secure AB LOTOS Geonafta’s potential claims against the selling shareholders. The amount was paid in full on February 3rd 2012.
- cash of PLN 5,182 thousand held by the LOTOS Petrobaltic Group, serving as security for payment of interest on credit facilities; the amount was released following repayment of the facilities.
(6) Including value added tax of PLN 165,152 thousand (December 31st 2011: 42,236 thousand).
(7) Including excise duty of PLN 29,678 thousand due to inter-warehouse transfers at Grupa LOTOS S.A. (December 31st 2011: PLN 33,620 thousand).
The payment period for trade receivables in the ordinary course of business is 7 - 35 days.
As at December 31st 2012 and December 31st 2011, the Group’s receivables were not subject to any assignment by way of security for the Group's liabilities.
Financial instruments are described in Note 7.23. The financial risk management objectives and policies are described in Note 33.
Maximum exposure to credit risk arising from financial assets as at December 31st 2012 and December 31st 2011 is presented in Note 33.6.
For sensitivity analysis of financial assets with respect to currency risk as at December 31st 2012 and December 31st 2011, see Note 33.3.1.
For sensitivity analysis of financial assets with respect to interest rate risk as at December 31st 2012 and December 31st 2011, see Note 33.4.1.
18.1 Change in impairment losses on receivables
PLN '000 |
Year ended Dec 31 2012 |
Year ended Dec 31 2011 |
---|---|---|
At beginning of the period | 195,646 | 182,354 |
Recognised (1) | 11,325 | 14,438 |
Acquisition of control (AB LOTOS Geonafta Group) | - | 16,707 (2) |
Exchange differences on translating foreign operations | (1,025) | 1,116 |
Used | (20,179) | (12,063) |
Reversed (3) | (8,615) | (6,325) |
Reclassification to assets held for sale | - | (581) |
At end of the period | 177,152 | 195,646 |
including: | ||
non-current | - | 17,236 |
current | 177,152 | 178,410 |
(1) Including PLN 3,006 thousand charged to other expenses (2011: PLN 11,053 thousand) and PLN 1,416 thousand (2011: PLN 412 thousand) reducing finance income on interest.
(2) Effect of the acquisition of control over AB Geonafta (currently AB LOTOS Geonafta); for more information see Note 2 to the consolidated financial statements for 2011.
(3) Including PLN 8,018 thousand charged to other income (2011: PLN 4,151 thousand).
The table below presents the age structure of past due receivables for which no impairment losses were recognised.
PLN '000 | Dec 31 2012 | Dec 31 2011 |
---|---|---|
Up to 1 month | 81,742 | 104,255 |
From 1 to 3 months | 11,932 | 10,051 |
From 3 to 6 months | 4,800 | 1,057 |
From 6 months to 1 year | 2,275 | 4,106 |
Over 1 year | 5,357 | 4,888 |
Total | 106,106 | 124,357 |
As at December 31st 2012, the share of trade receivables from the Group’s four largest customers as at the end of the reporting period represented 20.94% of total trade receivables (December 31st 2011: a 14.59% share of three largest customers). In the Group’s opinion, with the exception of receivables from the above-mentioned customers, there is no material concentration of credit risk.
Concentration of risk relating to the Group’s trading activities is limited as the Group enters into transactions with a large number of customers.
18.2 Finance lease receivables
The Group has developed and implemented 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 5-10 year agreements.
Minimum lease payment | Present value of minimum lease payments | |||
---|---|---|---|---|
PLN '000 | Dec 31 2012 | Dec 31 2011 | Dec 31 2012 | Dec 31 2011 |
Up to 1 year (1) | 2,716 | 1,942 | 2,683 | 1,914 |
From 1 to 5 years | 5,970 | 3,526 | 5,896 | 3,475 |
Over 5 years | 288 | 90 | 284 | 89 |
Total | 8,974 | 5,558 | 8,863 | 5,478 |
Less unrealised finance income | (111) | (80) | - | - |
Present value of minimum lease payments | 8,863 | 5,478 | 8,863 | 5,478 |
including: | ||||
Non-current | 6,180 | 3,564 | ||
Current | 2,683 | 1,914 |
(1) Present value of minimum lease payments is disclosed under Trade receivables.