Segments’ Data
10. Operating segments
REFINING
- Refinery products processing and wholesale
- Oil production and sale
- Supporting production
ENERGY
- Production, distribution and sales of electricity and heat from conventional and renewable energy sources
- Trading in electricity
PETROCHEMICAL
- Production and wholesale of petrochemicals
- Production and sale of chemicals
- Supporting production
RETAIL
- Fuel station activities
- RUCH Group activities
CORPORATE FUNCTIONS
- Management
- Administration
- Remaining activities, i.e. reconciling items
UPSTREAM
- Exploration and extraction of mineral resources
SELECTED ACCOUNTING PRINCIPLES
The system of organization and management of the Group is established on the basis of separated operating segments. The division into operating segments is made on the basis of factors taking into account, inter alia, type of products and services offered, characteristics of the production process, type of customers and other economic similarities. The Group does not combine operating segments for reporting purposes, and therefore each operating segment is presented separately.
Assessments of the operating 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 the 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 and amortization costs. Revenues from transactions with external customers and transactions with other segments are carried out on an arm’s length basis.
In the Consolidated Financial Statements for 2020, the effect of valuation and settlement of CO2 forward contracts was presented in the Corporate Functions segment. In order to ensure comparability of data in these consolidated financial statements, the Group restated presented comparative data by allocating to segments the effect of valuation and settlement of CO2 forward contracts recognised in the 2020.
11. Revenues, costs, financial results, increases in non-current assets
| 2021 | NOTE | Refining Segment | Petrochemical Segment | Energy Segment | Retail Segment | Upstream Segment | Corporate Functions | Adjustments | Total |
| External revenues |
13.1, 13.2, 13.3 |
56 967 | 16 011 | 16 039 | 41 082 | 798 | 444 | – | 131 341 |
| Inter-segment revenues | 28 577 | 2 252 | 3 474 | 85 | – | 580 | (34 968) | – | |
| Sales revenues | 85 544 | 18 263 | 19 513 | 41 167 | 798 | 1 024 | (34 968) | 131 341 | |
| Total operating expenses | (79 532) | (16 698) | (18 876) | (39 079) | (523) | (2 171) | 34 968 | (121 911) | |
| Other operating income | 13.9 | 3 144 | 1 666 | 1 638 | 120 | 1 058 | 285 | – | 7 911 |
| Other operating expenses | 13.10 | (2 858) | (127) | (414) | (158) | (288) | (153) | – | (3 998) |
| (Loss)/reversal of loss due to impairment of trade receivables | 13.12 | (10) | (2) | (69) | (5) | – | – | – | (86) |
| Share in profit from investments accounted for using the equity method | 14.3 | 1 | 388 | 223 | – | – | 1 | – | 613 |
| Profit/(Loss) from operations | 6 289 | 3 490 | 2 015 | 2 045 | 1 045 | (1 014) | – | 13 870 | |
| Net finance income and costs | 13.11 | (179) | |||||||
| (Loss)/reversal of loss due to impairment of loans and interest on trade receivables | 13.12 | (8) | |||||||
| Profit before tax | 13 683 | ||||||||
| Tax expense | (2 495) | ||||||||
| Net profit | 11 188 | ||||||||
| Depreciation and amortisation | 13.8.2 | 1 367 | 1 029 | 1 588 | 805 | 260 | 292 | – | 5 341 |
| EBITDA | 7 656 | 4 519 | 3 603 | 2 850 | 1 305 | (722) | – | 19 211 | |
| Increases in non-current assets | 2 376 | 3 051 | 2 616 | 1 141 | 363 | 343 | – | 9 890 |
| 2020 | NOTE | Refining Segment (restated data) |
Petrochemical Segment (restated data) |
Energy Segment (restated data) |
Retail Segment | Upstream Segment | Corporate Functions (restated data) |
Adjustments | Total |
| External revenues |
13.1, 13.2, 13.3 |
34 090 | 10 587 | 10 095 | 30 837 | 483 | 88 | – | 86 180 |
| Inter-segment revenues | 17 920 | 2 053 | 3 367 | 74 | – | 505 | (23 919) | – | |
| Sales revenues | 52 010 | 12 640 | 13 462 | 30 911 | 483 | 593 | (23 919) | 86 180 | |
| Total operating expenses | (56 228) | (11 885) | (11 356) | (28 339) | (606) | (1 712) | 23 919 | (86 207) | |
| Other operating income, incl.: | 13.9 | 4 443 | 435 | 4 604 | 123 | 367 | 106 | – | 10 078 |
| gain on bargain purchase of the ENERGA Group | – | – | 4 062 | – | – | – | – | 4 062 | |
| Other operating expenses | 13.10 | (3 813) | (42) | (172) | (218) | (1 692) | (289) | – | (6 226) |
| (Loss)/reversal of loss due to impairment of trade receivables | 13.12 | – | – | (27) | (4) | (2) | (33) | – | (66) |
| Share in profit from investments accounted for using the equity method | 14.3 | (1) | 143 | 6 | – | – | 1 | – | 149 |
| Profit/(Loss) from operations | (3 589) | 1 291 | 6 517 | 2 473 | (1 450) | (1 334) | – | 3 908 | |
| Net finance income and costs | 13.11 | (1 037) | |||||||
| (Loss)/reversal of loss due to impairment of loans and interest on trade receivables | 13.12 | (15) | |||||||
| Profit before tax | 2 856 | ||||||||
| Tax expense | (31) | ||||||||
| Net profit | 2 825 | ||||||||
| Depreciation and amortisation | 13.8.2 | 1 187 | 914 | 1 180 | 720 | 350 | 206 | – | 4 557 |
| EBITDA | (2 402) | 2 205 | 7 697 | 3 193 | (1 100) | (1 128) | – | 8 465 | |
| Increases in non-current assets | 3 174 | 1 912 | 1 722 | 1 329 | 400 | 455 | – | 8 992 |
Increase in non-current assets (CAPEX) includes increase of property, plant and equipment, intangible assets, investment property and right-of-use asset together with the capitalisation of borrowing costs and a decrease in received/due penalties for the improper execution of a contract.
Impairment allowances of property, plant and equipment, intangible assets, right-of-use assets, other non-current assets and non-current assets classified as held for sale
| Recognition | Reversal | ||||
|---|---|---|---|---|---|
| NOTE | 2021 | 2020 | 2021 | 2020 | |
| Refining Segment | (91) | (147) | 81 | 36 | |
| Petrochemical Segment | (2) | (10) | 32 | – | |
| Energy Segment | (92) | (7) | 15 | 2 | |
| Retail Segment | (98) | (106) | 51 | 67 | |
| Upstream Segment | (128) | (1 687) | 1 046 | 265 | |
| Impairment allowances in segments | (411) | (1 957) | 1 225 | 370 | |
| Corporate Functions | (4) | (4) | 1 | – | |
| 13.9, 13.10, 14.4 | (415) | (1 961) | 1 226 | 370 | |
12. Assets by operating segments and by geographical area
12.1. Assets by operating segments
| 31/12/2021 | 31/12/2020 (restated data) |
|
|---|---|---|
| Refining Segment | 35 343 | 25 908 |
| Petrochemical Segment | 17 897 | 13 873 |
| Energy Segment | 29 399 | 24 844 |
| Retail Segment | 11 688 | 10 983 |
| Upstream Segment | 4 284 | 3 070 |
| Segment assets | 98 611 | 78 678 |
| Corporate Functions | 8 228 | 5 589 |
| Adjustments | (85) | (219) |
| 106 754 | 84 048 |
Operating segments include all assets except for financial assets, tax assets and cash. Assets used jointly by the operating segments are allocated based on revenues generated by individual operating segments.
12.2. Non-current assets by geographical area
| 31/12/2021 | 31/12/2020 (restated data) |
% share | ||
|---|---|---|---|---|
| Poland | 47 639 | 42 273 | 72.00% | 73.20% |
| Germany | 2 079 | 2 042 | 3.10% | 3.60% |
| Czech Republic | 11 280 | 9 676 | 17.10% | 16.80% |
| Lithuania, Latvia, Estonia | 1 814 | 1 420 | 2.70% | 2.50% |
| Canada | 3 309 | 2 246 | 5.10% | 3.90% |
| 66 121 | 57 657 | 100.00% | 100.00% | |
Non-current assets by geographical area as at 31 December 2021 and 31 December 2020 include property, plant and equipment (note 14.1), intangible assets and goodwill (note 14.2), investment property (note 14.10.1), investment property (note 17.2.1).
