Accounting principles used in operating segments are in line with the accounting principles of the Group, described in note 3.4.4 The Management Board of PKN ORLEN and management boards of Group companies assess the segment financial results and decide about allocation of resources based on segment profit from operations plus depreciation and amortisation (EBITDA).
Revenues from transactions with external customers and transactions with other segments are carried out at arm’s length.
6.1 Revenues, costs, financial results, increase in investment expenditures by operating segments
Year 2014
NOTE | Downstream Segment | Retail Segment | Upstream Segment | Corporate Functions | Adjustments | Total | |
---|---|---|---|---|---|---|---|
Sales revenues from external customers | 70 549 | 35 913 | 298 | 72 | - | 106 832 | |
Sales revenues from transactions with other segments | 15 392 | 191 | - | 239 | (15 822) | - | |
Sales revenues | 7 | 85 941 | 36 104 | 298 | 311 | (15 822) | 106 832 |
Operating expenses | (85 971) | (35 015) | (271) | (1 007) | 15 822 | (106 442) | |
Other operating income | 9.1 | 468 | 182 | 4 | 112 | - | 766 |
Other operating expenses | 9.2 | (5 329) | (186) | (323) | (86) | - | (5 924) |
Share in profit from investments accounted for under equity method |
16 | 58 | - | - | (1) | - | 57 |
Segment profit/(loss) from operations | (4 833) | 1 085 | (292) | (671) | - | (4 711) | |
Net finance income and costs | 10 | (1 535) | |||||
(Loss) before tax | (6 246) | ||||||
Tax expense | 11 | 418 | |||||
Net (loss) | (5 828) | ||||||
Depreciation and amortisation | 8.2 | 1 408 | 355 | 122 | 106 | - | 1 991 |
EBITDA | (3 425) | 1 440 | (170) | (565) | - | (2 720) | |
Increases in investment expenditures (including borrowing costs) | 2 714 | 345 | 499 | 230 | - | 3 788 |
Year 2013
Downstream Segment | Retail Segment | Upstream Segment | Corporate Functions | Adjustments | Total | ||
---|---|---|---|---|---|---|---|
NOTE | (restated data) | (restated data) | (restated data) | (restated data) | |||
Sales revenues from external customers | 77 047 | 36 462 | 17 | 71 | - | 113 597 | |
Sales revenues from transactions with other segments | 15 939 | 162 | - | 243 | (16 344) | - | |
Sales revenues | 7 | 92 986 | 36 624 | 17 | 314 | (16 344) | 113 597 |
Operating expenses | (92 710) | (35 695) | (48) | (1 078) | 16 344 | (113 187) | |
Other operating income | 9.1 | 188 | 90 | 83 | 210 | - | 571 |
Other operating expenses | 9.2 | (399) | (102) | (90) | (123) | - | (714) |
Share in profit from investments accounted for under equity method |
16 | 41 | - | - | (1) | - | 40 |
Segment profit/(loss) from operations | 106 | 917 | (38) | (678) | - | 307 | |
Net finance income and costs | 10 | (150) | |||||
Profit before tax | 157 | ||||||
Tax expense | 11 | (67) | |||||
Net profit | 90 | ||||||
Depreciation and amortisation | 8.2 | 1 633 | 351 | 6 | 121 | - | 2 111 |
EBITDA | 1 739 | 1 268 | (32) | (557) | - | 2 418 | |
Increases in investment expenditures (including borrowing costs) | 1 596 | 467 | 304 | 117 | - | 2 484 |
6.2. Other segment data
6.2.1. Assets by operating segments
31/12/2014 |
31/12/2013 (restated data) | |
---|---|---|
Downstream Segment | 32 298 | 40 348 |
Retail Segment | 5 787 | 5 990 |
Upstream Segment | 2 422 | 1 375 |
Segment assets | 40 507 | 47 713 |
Corporate Functions | 6 425 | 3 888 |
Adjustments | (207) | (249) |
46 725 | 51 352 |
including:
Non - current assets classified as held for sale | Investments accounted for under equity method | ||||
---|---|---|---|---|---|
NOTE | 31/12/2014 |
31/12/2013 (restated data) | 31/12/2014 |
31/12/2013 (restated data) | |
Downstream Segment | 34 | 9 | 641 | 583 | |
Corporate Functions | - | 6 | 31 | 32 | |
16 | 34 | 15 | 672 | 615 |
As at 31 December 2014, non-current assets as held for sale in Downstream segment mainly relate to obtained for free of charge yellow energy rights and acquired red and green energy rights.
Operating segments include all assets except for financial assets (disclosed in notes 17, 21, 22) and tax assets (note 11.2). Assets used jointly by different operating segments are allocated based on revenues generated by particular operating segments.
6.2.2. Recognition and reversal of impairment allowances
Recognition | Reversal | ||||
---|---|---|---|---|---|
NOTE | 2014 | 2013 (restated data) | 2014 | 2013 (restated data) | |
Downstream Segment | (5 982) | (385) | 108 | 96 | |
Retail Segment | (100) | (47) | 119 | 42 | |
Upstream Segment | (322) | (89) | - | - | |
Impairment allowances by segments | (6 404) | (521) | 227 | 138 | |
Corporate Functions | (29) | (43) | 26 | 24 | |
Impairment allowances in operating activities | 19.1, 9.1,9.2 | (6 433) | (564) | 253 | 162 |
Impairment allowances in financing activities | 10.1,10.2 | (4) | (14) | 9 | 10 |
(6 437) | (578) | 262 | 172 |
including:
Impairment allowances of property, plant and equipment and intangible assets
Recognition | Reversal | ||||
---|---|---|---|---|---|
NOTE | 2014 |
2013 (restated data) | 2014 |
2013 (restated data) | |
Downstream Segment | (5 074) | (101) | 14 | 9 | |
Retail Segment | (93) | (42) | 116 | 38 | |
Upstream Segment | (322) | (89) | - | - | |
Impairment allowances by segments | (5 489) | (232) | 130 | 47 | |
Corporate Functions | (3) | (6) | 2 | 6 | |
9.1,9.2,18 | (5 492) | (238) | 132 | 53 |
6.2.3. Geographical information
Revenues from sale are disclosed in geographical information by customer’s premises countries
NOTE | 2014 |
2013 (restated data) | % share | ||
---|---|---|---|---|---|
2014 | 2013 | ||||
Poland | 45 095 | 47 065 | 42.2% | 41.4% | |
Germany | 19 310 | 18 745 | 18.1% | 16.5% | |
Czech Republic | 12 669 | 11 193 | 11.9% | 9.9% | |
Lithuania, Latvia, Estonia | 8 802 | 11 091 | 8.2% | 9.8% | |
Other countries | 20 956 | 25 503 | 19.6% | 22.4% | |
7 | 106 832 | 113 597 | 100.0% | 100.0% |
“Other countries” entry comprises of sales to customers from Switzerland, Ukraine, Denmark, Slovakia, Great Britain and Austria.
Geographical allocation of non-current assets
31/12/2014 | 31/12/2013 | % share | ||
---|---|---|---|---|
(restated data) | 2014 | 2013 | ||
Poland | 17 181 | 15 637 | 73.0% | 60.3% |
Germany | 889 | 862 | 3.8% | 3.3% |
Czech Republic | 3 219 | 3 806 | 13.7% | 14.7% |
Lithuania, Latvia, Estonia | 546 | 4 829 | 2.3% | 18.6% |
Canada | 1 712 | 809 | 7.2% | 3.1% |
23 547 | 25 943 | 100.0% | 100.0% |
1) Additional information concerning restatement of revenues by operating segments in relation to changes in operating segments and implemented new IFRS 11 - Joint Agreements is presented in note 3.2.1.
Non-current assets by geographical allocation include non-current assets, intangible assets, investment property and perpetual usufruct of land
6.3. Sales revenues
31/12/2014 | 31/12/2013 | % share | ||
---|---|---|---|---|
(restated data) | 2014 | 2013 | ||
Poland | 17 181 | 15 637 | 73.0% | 60.3% |
Germany | 889 | 862 | 3.8% | 3.3% |
Czech Republic | 3 219 | 3 806 | 13.7% | 14.7% |
Lithuania, Latvia, Estonia | 546 | 4 829 | 2.3% | 18.6% |
Canada | 1 712 | 809 | 7.2% | 3.1% |
23 547 | 25 943 | 100.0% | 100.0% |
1) Additional information concerning restatement of revenues by operating segments in relation to changes in operating segments and implemented new IFRS 11 - Joint Agreements is presented in note 3.2.1.
6.4. Information about major customers
In 2014 and 2013 no leading customers were identified in the Group, for which turnover would exceeded 10% of total revenues from sale of the ORLEN Group.