6.1. Group's structure
SELECTED ACCOUNTING PRINCIPLES
Principles of consolidation
The consolidated financial statements of the Group include assets, liabilities, equity, income, expenses and cash flows of the Parent Company and its subsidiaries that are presented as those of a single economic entity and are prepared as at the same reporting period as separate financial statements of the Parent Company and using uniform accounting principles in relation to similar transactions and other events in similar circumstances.
The subsidiaries are consolidated using full consolidation method, non-controlling interests shall be presented in the consolidated statement of financial position as noncontrolling interest, separately from the equity of the owners of the Parent Company. Joint operations by recognition of respective share in assets, liabilities, revenues and cost.
The joint ventures as well as investments in associates are accounted for under equity method. The Group's share in profit or loss of the investee is recognized in the Group's profit or loss as other operating activity. For investments in associates - the Group has a significant influence if it holds, directly or indirectly (i.e. through subsidiaries), from 20% to 49% of the voting rights of an entity, unless it can be clearly stated otherwise.
PROFESSIONAL JUDGEMENTS
Investments in subsidiaries and jointly controlled entities
The Group, regardless of the nature of its involvement in the entity (the entity in which it invested) defines its status by assessment, whether it controls the entity in which the investment was made, and whether it has a joint control in a joint venture, after consideration of all the facts and circumstances.
PKN ORLEN as the Parent Company is a multi-segment entity, appropriately allocated to all operating segments and corporate functions.
Name of entity | Parent company | Share in total voting rights | Consolidation method/Valuation method | ||
---|---|---|---|---|---|
31/12/2017 | 31/12/2016 | ||||
Downstream Segment | |||||
ORLEN Lietuva Group | |||||
AB ORLEN Lietuva | PKN ORLEN S.A. | 100% | 100% | full | |
UAB Mazeikiu Naftos prekybos namai |
AB ORLEN Lietuva | 100% | 100% | full | |
OU ORLEN Eesti |
UAB Mezeikiu naftos prekybos namai | 100% | 100% | full | |
SIA ORLEN Latvija |
UAB Mezeikiu naftos prekybos namai | 100% | 100% | full | |
UAB Emas |
AB ORLEN Lietuva | 100% | 100% | full | |
UNIPETROL Group | |||||
PARAMO, a.s. | UNIPETROL, a.s. | 100% | 100% | full | |
Paramo Oil, s.r.o. (in liquidation) |
PARAMO, a.s. | 100% | 100% | full | |
UNIPETROL RPA, s.r.o. | UNIPETROL, a.s. | 100% | 100% | full | |
UNIPETROL Slovensko, s.r.o. |
UNIPETROL RPA, s.r.o. | 100% | 100% | full | |
UNIPETROL Deutschland GmbH |
UNIPETROL RPA, s.r.o. | 100% | 100% | full | |
UNIPETROL RPA Hungary Kft. |
UNIPETROL RPA, s.r.o. | 100% | 100% | full | |
Spolana a.s. |
UNIPETROL RPA, s.r.o. | 100% | 100% | full | |
UNIPETROL DOPRAVA, s.r.o. |
UNIPETROL RPA, s.r.o. | 100% | 100% | full | |
PETROTRANS, s.r.o. | UNIPETROL RPA, s.r.o. | 100% | 100% | full | |
ČESKÁ RAFINÉRSKÁ, a.s.1 | UNIPETROL, a.s. | - | 100% | full | |
Butadien Kralupy a.s. | UNIPETROL, a.s. | 51% | 51% | share in assets and liabilities | |
Basell Orlen Polyolefins Group | |||||
Basell ORLEN Polyolefins Sp. z o.o. | PKN ORLEN S.A. | 50% | 50% | equity method | |
Basell ORLEN Polyolefins Sprzedaż Sp. z o.o. |
Basell ORLEN Polyolefins Sp. z.o.o. | 100% | 100% | equity method | |
ORLEN Południe Group | |||||
ORLEN Południe S.A. | PKN ORLEN S.A. | 100% | 100% | full | |
Energomedia Sp. z o.o. |
ORLEN POŁUDNIE S.A. | 100% | 100% | full | |
Euronaft Trzebinia Sp. z o.o. |
ORLEN POŁUDNIE S.A. | 100% | 100% | full | |
Konsorcjum Olejów Przepracowanych - Organizacja Odzysku S.A. |
ORLEN Południe S.A. | 89% | 89% | full | |
ORLEN Oil Group | |||||
ORLEN Oil Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full | |
Platinum Oil Wielkopolskie Centrum Dystrybucji Sp. z o.o.2 |
ORLEN Oil Sp. z o.o. | 67.49% | 22% | full | |
Orlen Oil Cesko s.r.o. |
ORLEN OIL Sp. z o.o. | - | - | full | |
ORLEN Asfalt Group | |||||
ORLEN Asfalt Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full | |
ORLEN Asfalt Ceska Republika s.r.o. |
ORLEN ASFALT Sp. z o.o. | 100% | 100% | full | |
Anwil S.A. | PKN ORLEN S.A. | 100% | 100% | full | |
Inowrocławskie Kopalnie Soli „Solino" S.A. | PKN ORLEN S.A. | 100% | 100% | full | |
Kopalnia Soli Lubień Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full | |
ORLEN Paliwa Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
Name of entity | Parent company | Share in total voting rights | Consolidation method/Valuation method | |
---|---|---|---|---|
31/12/2017 | 31/12/2016 | |||
ORLEN Aviation Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Eko Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
Baltic Power Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN KolTrans Sp. z o.o. | PKN ORLEN S.A. | 99.88% | 99.85% | full |
Ship-Service S.A. | PKN ORLEN S.A. | 60.86% | 60.86% | full |
ORLEN Serwis S.A. | PKN ORLEN S.A. | 100.00% | 100.00% | full |
Retail Segment | ||||
AB Ventus-Nafta | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Deutschland GmbH | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Budonaft Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Centrum Serwisowe Sp. z o.o. | PKN ORLEN S.A. | 99.33% | 99.33% | full |
UNIPETROL RPA, s.r.o. | UNIPETROL, a.s. | 100% | 100% | full |
Upstream Segment | ||||
ORLEN Upstream Group | ||||
ORLEN Upstream Sp. z o.o. |
PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Upstream Kanada Ltd. |
PKN ORLEN S.A. | 100% | 100% | full |
1426628 Alberta Ltd. |
ORLEN Upstream Kanada Ltd. | 100% | 100% | full |
OneEx Operations Partnership |
ORLEN Upstream Kanada Ltd. | 100% | 100% | full |
Pieridae Production GP Ltd |
ORLEN Upstream Kanada Ltd. | 50% | 50% | equity method |
671519 NB Ltd |
Pieridae Production GP Ltd | 50% | 50% | equity method |
KCK Atlantic Holdings Ltd. |
ORLEN Upstream Kanada Ltd. | 100% | 100% | full |
Pieridae Production LP |
KCK Atlantic Holdings Ltd. | 80% | 80% | equity method |
FX Energy, Inc. |
ORLEN Upstream Sp. z o.o. | 100% | 100% | full |
Frontier Exploration, Inc. |
FX Energy, Inc. | 100% | 100% | full |
FX Energy Netherlands Partnership C.V. |
FX Energy, Inc. | 100% | 100% | full |
FX Energy Netherlands B.V. |
FX Energy Netherlands Partnership C.V. | 100% | 100% | full |
FX Energy Poland Sp. z o.o. |
FX Energy Netherlands Partnership C.V. | 100% | 100% | full |
Corporate Functions | ||||
AB ORLEN Lietuva | PKN ORLEN S.A. | 100% | 100% | full |
UNIPETROL Group | ||||
UNIPETROL, a.s. | PKN ORLEN S.A. | 62.99% | 62.99% | full |
UNIPETROL RPA, s.r.o. |
UNIPETROL, a.s. | 100% | 100% | full |
Unipetrol výzkumně vzdělávací centrum, a.s. |
UNIPETROL, a.s. | 100% | 100% | full |
HC Verva Litvinov, a.s. | UNIPETROL RPA, s.r.o. | 70.95% | 70.95% | full |
ORLEN Administracja Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Capital AB | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Centrum Usług Korporacyjnych Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Finance AB | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Holding Malta Group | ||||
ORLEN Holding Malta Ltd. |
PKN ORLEN S.A. | 100% | 100% | full |
Orlen Insurance Ltd. |
ORLEN HOLDING MALTA Ltd. | 100% | 100% | full |
ORLEN Ochrona Group | ||||
ORLEN Ochrona Sp. z o.o. | PKN ORLEN S.A. | 100% | 100% | full |
ORLEN Apsauga UAB |
ORLEN OCHRONA Sp. z o.o. | 100% | 100% | full |
ORLEN Projekt S.A. | PKN ORLEN S.A. | 99.77% | 99.77% | full |
ORLEN Laboratorium S.A. | PKN ORLEN S.A. | 100% | 99.38% | full |
Płocki Park Przemysłowo -Technologiczny Group | ||||
Płocki Park Przemysłowo-Technologiczny S.A. (PPPT S.A.) | PKN ORLEN S.A. | 50% | 50% | equity method |
Centrum Edukacji Sp. z o.o. |
PPPT S.A. | 69.43% | 69.43% | equity method |
1From 01.01.2017 UNIPETROL RPA, s.r.o.
2In 2016, the Company accounted for under equity method, in 2017 consolidated using the full consolidation method, detailed information in note 6.2.
Activity of core companies belonging to ORLEN Group
Name of entity | Headquarters | Principal activity |
---|---|---|
AB ORLEN Lietuva (including its own Capital Group) | Lithuania - Juodeikiai | crude oil processing, production of refining products and wholesale |
UNIPETROL a.s. (including its own Capital Group) | Republika Czeska - Praga | crude oil processing as well as manufacture and distribution of refinery, petrochemical and chemical products |
ANWIL S.A. | Poland - Włocławek | production of nitrogen fertilizers, plastic and chemicals |
ORLEN Południe S.A. | Poland - Trzebinia | crude oil processing, production and sale of biofuels, oils |
ORLEN Oil Sp. z o.o. | Poland - Cracow | production, distribution and sale of grease oils, maintenance liquids |
ORLEN Asfalt Sp. z o.o. | Poland - Płock | manufacture and sale of road bitumens and specific bitumen products |
ORLEN Paliwa Sp. z o.o. | Poland - Płock | liquid fuels trade |
Inowrocławskie Kopalnie Soli „Solino" S.A. | Poland - Inowrocław | storage of crude oil, fuels , extraction of brine and packaging of salt |
ORLEN Upstream Sp. z o.o. (including its own Capital Group) | Poland - Warsaw | exploration and recognition of hydrocarbon deposits, extraction of crude oil and natural gas |
6.2. Changes in shareholder structure of the ORLEN Group
TYPE OF TRANSACTION / ENTITY | TRANSACTION DATE | NUMBER OF AQUIRED / (SOLD) SHARES | SHARE IN TOTAL VOTING RIGHTS AFTER TRANSACTIONS |
---|---|---|---|
PURCHASE OF SHARES | |||
by PKN ORLEN: | |||
in ORLEN Laboratorium S.A. |
10 March 2017 | 6,213 | 100.00% |
by PKN ORLEN: | |||
in ORLEN KolTrans Sp. z o.o. |
30 November 2017 | 11,201 | 99.88% |
by ORLEN KolTrans Sp. z o.o, for depreciation: | |||
in ORLEN KolTrans Sp. z o.o. |
30 November 2017 | 2,660 | 0.00% |
by ORLEN OIL Sp. z o.o.: | |||
in Platinum Oil Wielkopolskie Centrum Dystrybucji Sp. z o.o. |
20 December 2017 | 1,064 | 67.49% |
MERGERS OF ENTITIES | |||
Unipetrol RPA s.r.o. i ČESKÁ RAFINÉRSKÁ a.s. as a result, one company was established under the company: Unipetrol RPA. |
1 January 2017 | - | 100.00% |
INCREASE IN SHARE CAPITAL AND SUBSCRIPTION OF SHARES | |||
by PKN ORLEN: | |||
in ORLEN Upstream Sp. z o.o.* |
15 September 2017 | 4,534 | 100.00% |
by PKN ORLEN: | |||
in ORLEN Upstream Sp. z o.o.* |
7 November 2017 | 2,472 | 100.00% |
by Euronaft Trzebinia Sp. z o.o.: | |||
in ORLEN KolTrans Sp. z o.o. |
2 October 2017 | 13,861 | 25.33% |
shares of shareholders in the ORLEN KolTrans share capital following the increase: PKN ORLEN - 74.55%, Euronaft Trzebinia - 25.33%, minority shareholders - 0.12%. |
|||
CHANGE OF ENTITIES NAMES | |||
from Petrolot Sp. z o.o. to ORLEN Aviation Sp. z o.o. |
19 May 2017 | - | 100% |
*Date of transaction means the date of entry to the court register.
Changes in the Group structure are an element of the strategy, assuming a focus on core activities and allocating the resulting available capital for development of the Group in the most prospective areas.
STRUCTURED ENTITIES
ORLEN Capital AB
The company’s business is raising funds through the issuance of bonds and other financial instruments for institutional and private investors. ORLEN Capital AB specializes in granting borrowings or loans to Group companies and conduct any other activities related to the financial instruments. On 30 June 2014 and on 7 June 2016 ORLEN Capital AB issued Eurobonds with 7-year redemption of approximately of PLN 5,214 million translated using exchange rate as at 31 December 2017 (representing EUR 1,250 million).The funds obtained by ORLEN Capital through the issue were transferred to PKN ORLEN under the borrowing agreement. PKN ORLEN is the guarantor of the both issued bonds by an irrevocable and unconditional guarantees issued to the bondholders of PLN 8,759 million translated using exchange rate as at 31 December 2017 (representing of EUR 2.1 billion). The guarantees were granted for the time of the Eurobonds issues, until 30 June 2021 and 7 June 2023, respectively.
ORLEN Finance AB
The company’s business is to conduct financial services within the ORLEN Group, including intercompany borrowings, as well as any other financial instruments. In the 2nd half of 2017, were commenced operations leading to the liquidation of the company.
ORLEN Insurance Ltd.
ORLEN Insurance is an internal insurance company (i.e. captive), which main purpose is insurance and reinsurance the Group's business, matching insurance to the individual needs of its property and the potential loss of margin.