ORLEN ORLEN Group 2017
Integrated Report

Segment Data

GRI INDICATORS:
Capitals:

8.1. Operating segments

 
DOWNSTREAM
  • Production
  • Refining and petrochemical and sales
  • Energy
 
UPSTREAM
  • Exploration and extraction of mineral resources
 
RETAIL
  • Activity at the petrol stations
 
CORPORATE FUNCTIONS
  • Management
  • Administration
  • Remaining activities, i.e. reconciling items

SELECTED ACCOUNTING PRINCIPLES

Assessments of the segments’ financial results and decisions on allocation of resources are performed mainly on the basis of EBITDA. EBITDA is one of a measure of the
efficiency of the activity, which is not defined in IFRS. The ORLEN Group defines EBITDA as net profit/(loss) for the reporting period before taking into account the impact of
the income tax, effects of financing activities and depreciation costs.

Revenues from transactions with external customers and transactions with other segments are carried out on an arm’s length basis.


8.2. Revenues, costs, financial results, investments expenditures

2017

  NOTE  Downstream Segment Retail Segment Upstream Segment Corporate Functions Adjustments Total
External revenues 9.1.1
9.1.2
61,425 33,350 515 74 - 95,364
Inter-segment revenues   13,816 280 - 342 (14,438) -
Sales revenues   75,241 33,630 515 416 (14,438) 95,364
Operating expenses   (68,410) (31,986) (540) (1,132) 14,438 (87,630)
Other operating income 9.1.4 1,048 105 4 86 - 1 243
Other operating expenses 9.1.5 (194) (133) (145) (96) - (568)
Share in profit from investments accounted for under equity method 9.2.4 247 - 1 - - 248
Profit/(Loss) from operations   7,932 1,616 (165) (726) - 8,657
Net finance income and costs 9.1.6.1
9.1.6.2
          60
Profit before tax             8,717
Tax expense             (1,544)
Net profit             7,173
Depreciation and amortisation 9.1.3 1,568 422 318 113 - 2,421
EBITDA   9,500 2,038 153 (613) - 11,078
CAPEX   2,925 678 778 221 - 4,602

2016

  NOTE Downstream Segment Retail Segment Upstream Segment Corporate Functions Adjustments Total
External revenues 9.1.1
9.1.2
49,202 29,841 442 68 - 79,553
Inter-segment revenues   10,892 280 - 283 (11,455) -
Sales revenues   60,094 30,121 442 351 (11,455) 79,553
Operating expenses   (54,939) (28,681) (537) (1,072) 11,455 (73,774)
Other operating income 9.1.4 1,964 87 60 53 (1) 2,163
Other operating expenses 9.1.5 (324) (125) (83) (176) 1 (707)
Share in profit from investments accounted for under equity method 9.2.4 298 - (1) - - 297
Profit/(Loss) from operations   7,093 1,402 (119) (844) - 7,532
Net finance income and costs 9.1.6.1
9.1.6.2
          (645)
Profit before tax             6,887
Tax expense             (1,147)
Net profit             5,740
Depreciation and amortisation 9.1.3 1,317 392 301 100 - 2,110
EBITDA   8,410 1,794 182 (744) - 9,642
CAPEX   3,533 479 525 136 - 4,673

CAPEX - increase of property, plant and equipment, intangible assets, investment property and perpetual usufruct of land together with the capitalisation of borrowing costs.


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