6 Apr 2017 08:01
OMV Petrom Group new Income Statement structure
OMV Petrom announces an update to the presentation of its Consolidated Income Statement, which has been restructured in line with industry best practice in order to better reflect the operations of the Group and enhance transparency for investors.
The main changes to the Consolidated Income Statement are:
1. Net income/(loss) from equity-accounted investments is now part of "Total revenues and other income".
· Previously, net income/(loss) from equity accounted investments was included within the net financial result;
· Starting from Q1/17, the net income/(loss) from equity accounted investments is included in "Total revenues and other income" and contributes to the "Operating result". The "Operating result" includes the former indicator "Earnings Before Interest and Taxes" and the net result from equity-accounted investments. Thus, the "Operating result" reflects the operational result of OMV Petrom Group including contributions from associates (OMV Petrom Global Solutions SRL).
2. The line items "purchases (net of inventory variation)", "production and operating expenses" and "production and similar taxes" are now shown separately.
· These items were previously disclosed mainly within the line "production cost of sales";
· Purchases (net of inventory variation): this line item includes cost of goods and materials that are used for conversion into finished or intermediary products, as well as goods purchased for reselling. This position also includes inventory changes and write-offs;
· Production and operating expenses: this line item contains all costs incurred when manufacturing a good or providing a service;
· Production and similar taxes: this line item contains production taxes, royalties and other taxes related to hydrocarbon production.
3. "Selling, distribution and administrative expenses" are now combined and reported in one line item.
· These costs were previously disclosed as part of selling expenses and administrative expenses;
· The new selling, distribution and administrative expenses line item includes all costs directly related to marketing and selling of products and administrative costs and also dealer commission costs which were previously presented as deduction from sales.
4. "Depreciation, amortization and impairment charges" are now disclosed as a separate line item.
· Previously, "depreciation, amortization and impairment charges" were included in "production cost of sales", "selling expenses" and "administrative expenses".
· Impairments related to exploration assets remain part of "exploration expenses".
The change is effective from 1 January 2017 and will be reported as part of the Group's Q1/17 results on 11 May 2017.
The new Consolidated Income Statement, the Operating result and the Clean CCS Operating result for each business segment, for the periods Q1-Q4/16 and full year 2016 can be found on OMV Petrom's website, www.omvpetrom.com, section Investor Relations>Investor Reports and Presentations>Interim Reports.
Contact:
OMV Petrom Investor Relations
Tel: +40 372 161 930E-mail: investor.relations.petrom@petrom.com