Production, distribution and sales of electricity and heat from conventional and renewable energy sources
Trading in electricity
Production and wholesale of petrochemicals
Production and sale of chemicals
Fuel station activities
RUCH Group activities
Remaining activities, i.e. reconciling items
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
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
12. Assets by operating segments and by geographical area
12.1. Assets by operating segments
31/12/2020 (restated data)
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
Lithuania, Latvia, Estonia
Non-current assets by geographical area as at 31 December 2021 and 31 December 2020 include property, plant and equipment (note 14.1), intangible assetsand goodwill (note 14.2), investment property (note 14.10.1),investment property (note 17.2.1).