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Annual Report 2016

Financial Information

Selected Financial Data

GROUP (amounts in millions €)

2016 2015 2014
Statement of Comprehensive Income
Sales 6,680 7,303 9,478
Adjusted EBITDA 731 758 417
Operating profit 626 245 (289)
Profit before income tax 466 39 (485)
Minority Interest 1 2 (3)
Profit for the year (attributable to owners of the parent) 330 47 (365)
Adjusted Net Income 265 268 2
EPS 1.08 0.15 (1.20)
Statement of Cash Flows
Net cash generated from operating activities (334) 460 853
Net cash used in investing activities (116) (136) (83)
Net cash generated from financing activities (589) (74) 85
Net increase/(decrease) in cash & cash equivalents (1,039) 250 855
Statement of Financial Position
Total Assets 7,189 8,029 7,719
Non-current assets 4,295 4,506 4,526
Cash and cash equivalents 1,082 2,108 1,848
Non-current liabilities 1,879 1,768 1,974
Long term borrowings 1,456 1,598 1,812
Short term borrowings 1,386 1,633 1,178
Minority Interest 102 106 110
Total Equity 2,142 1,790 1,729

REFINING, SUPPLY & TRADING (amounts in millions €)

2016 2015 2014
Sales 5,774 6,644 8,818
Adjusted EBITDA 536 561 253
Operating profit 508 117 (371)
Purchase of property, plant and equipment & intangible assets 95 138 110
Depreciation & amortisation of property, plant and equipment & intangible assets 154 139 138
Refinery production (MT million) 14.8 14.4 13.7
Refinery sales volume (MT million) 15.6 14.3 13.5
Average Brent price ($/bbl) 45 52 99
Benchmark FOB MED Cracking Margin ($/bbl) 5.0 6.5 3.4
Average exchange rate (€/$) 1.11 1.11 1.33

MARKETING (amounts in millions €)

2016 2015 2014
Sales 2,336 2,712 3,220
Adjusted EBITDA 101 107 90
Operating profit 45 55 27
Purchase of property, plant and equipment & intangible assets 30 26 25
Depreciation & amortisation of property, plant and equipment & intangible assets 48 49 52
Sales (‘000 tonnes) 4,668 4,672 4,131
Petrol stations 2,013 1,977 1,977

PETROCHEMICALS (amounts in millions €)

2016 2015 2014
Sales 252 263 322
Adjusted EBITDA 100 93 81
Operating profit 94 84 64
Purchase of property, plant and equipment & intangible assets 0 1 1
Depreciation & amortisation of property, plant and equipment & intangible assets 6 9 12
Sales (‘000 tonnes) 256 221 236

Group Consolidated Financial Statements

STATEMENT OF FINANCIAL POSITION (amounts in thousands €)

GROUP 31/12/16 31/12/15
ASSETS
Property, plant and equipment 3,302,923 3,385,270
Intangible assets 108,294 117,062
Other non-current assets 881,711 1,003,197
Inventories 929,164 662,025
Trade and other receivables 868,331 752,142
Derivative financial instruments 15,192 -
Cash, cash equivalents and restricted cash 1,081,580 2,108,364
Available-for-sale non-current assets 1,626 523
TOTAL ASSETS 7,188,821 8,028,583
EQUITY AND LIABILITIES
Share capital 666,285 666,285
Share premium 353,796 353,796
Retained earnings and other reserves 1,019,679 664,235
Capital and reserves attributable to Company Shareholders (a) 2,039,760 1,684,316
Non-controlling interests (b) 101,875 105,954
TOTAL EQUITY (c) = (a) + (b) 2,141,635 1,790,270
Long-term borrowings 1,456,204 1,597,954
Provisions and other long term liabilities 422,598 169,728
Short-term borrowings 1,386,299 1,633,033
Other short-term liabilities 1,782,085 2,837,598
Total liabilities (d) 5,047,186 6,238,313
TOTAL EQUITY AND LIABILITIES (c) + (d) 7,188,821 8,028,583

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD (amounts in thousands €)

GROUP 1/1/2016 - 31/12/16 1/1/2015 - 31/12/15
Sales 6,679,923 7,302,939
Gross profit 1,007,128 694,582
Operating profit / (loss) 626,271 245,244
Profit / (loss) before Income Tax 465,671 38,964
Less: Taxes (136,936) 6,063
Profit / (loss) for the year 328,735 45,027
Attributable to:
Owners of the parent 329,760 46,684
Non-controlling interests (1,025) (1,657)
328,735 45,027
Other comprehensive income / (loss) for the year, net of tax 25,930 20,503
Total comprehensive (loss) / income for the year 354,665 65,530
Attributable to:
Owners of the parent 355,819 67,239
Non-controlling interests (1,154) (1,709)
354,665 65,530
Basic and diluted earnings per share (in Euro per share) 1.08 1.15
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) 834,345 442,023

STATEMENT OF CHANGES IN EQUITY (amounts in thousands €)

GROUP 31/12/16 31/12/15
Total equity at beginning of the year (1/1/2016 & 1/1/2015) 1,790,270 1,728,546
Total comprehensive (loss) / income for the year 354,665 65,530
Dividends to non-controlling interests (2,925) (2,741)
Expenses relating to share capital increase of subsidiary - (772)
Tax on intra-group dividends (375) (293)
Total equity at the end of the year 2,141,635 1,790,270

STATEMENT OF CASH FLOW (amounts in thousands €)

GROUP 1/1/2016 - 31/12/16 1/1/2015 - 31/12/15
Cash flows from operating activities
(Loss) / Profit before Tax 465,671 38,964
Adjustments for:
Depreciation and amortisation of tangible and intangible assets 209,478 198,900
Impairment of fixed assets 8,313 -
Amortisation of government grants (1,404) (2,121)
Interest expense and similar charges 205,909 209,842
Interest income (5,129) (8,797)
Share of operating profit of associates (19,407) (21,518)
Provisions for expenses and valuation charges 77,011 69,851
Foreign exchange (gains) / losses (20,773) 26,753
(Gain)/Loss from disposal of available for sale financial assets - 6
Discounting effect on long term payables (8,285) -
(Gain)/Loss from disposal of Non Current Assets (633) 614
910,751 512,494
Changes in working capital
(Increase) / decrease in inventories (281,476) (50,492)
(Increase) / decrease in trade and other receivables (155,812) (73,892)
Increase / (decrease) in payables (790,829) 106,249
Less:
Income tax paid (16,159) (34,648)
Net cash generated from / (used in) operating activities (a) (333,525) 459,711
Cash flows from investing activities
Purchase of property,plant and equipment & intangible assets (125,719) (165,253)
Cash from sale of property, plant and equipment & tangible assets 2,168 828
Interest received 5,129 8,797
Acquisition of subsidiary, net of cash acquired (350) -
Dividends received 1,139 18,289
Expenses paid relating to share capital increase of subsidiary - (772)
Grants received 1,431 1,182
Participation in share capital (increase) / decrease of associates - 18
Proceeds from disposal of available for sale financial assets - 771
Net cash used in investing activities (b) (116,202) (136,140)
Cash flows from financing activities
Interest paid (190,479) (200,793)
Dividends paid to shareholders of the Company (473) (64,004)
Dividends paid to non-controlling interests (2,925) (2,770)
Movements in restricted cash (1,969) 44,444
Proceeds from borrowings 507,732 420,924
Repayments of borrowings (900,799) (226,690)
Net cash generated from / (used in ) financing activities (c) (588,913) (28,889)
Net (decrease) / increase in cash & cash equivalents (a)+(b)+(c) (1,038,640) 294,682
Cash and cash equivalents at the beginning of the year 1,952,808 1,647,842
Exchange gains / (losses) on cash and cash equivalents 9,887 10,284
Net (decrease) / increase in cash and cash equivalents (1,038,640) 294,682
Cash and cash equivalents at end of the year 924,055 1,952,808

Segmental Information

FOR THE YEAR ENDED 31/12/16 31/12/15
Sales
Refining 4,094,631 4,323,969
Marketing 2,327,990 2,706,061
Petro-chemicals 252,387 263,403
Gas & Power 1,641 1,705
Other 3,274 7,801
Total 6,679,923 7,302,939
Operating profit / (loss)
Refining 507,699 116,723
Marketing 44,996 55,571
Exploration & Production (5,559) (4,690)
Petro-chemicals 93,920 83,578
Gas & Power (5,138) (6,201)
Other (9,647) 263
Total 626,271 245,244
Currency exchange gains / (losses) 20,773 (26,753)
Share of profit of investments in associates and joint ventures 19,407 21,518
Finance (expense) / income - net (200,780) (201,045)
Profit / (loss) before income tax 465,671 38,964
Income tax (expense) / credit (136,936) 6,063
Profit / (loss) for the period 328,735 45,027
(Income) / loss applicable to non-controlling interests 1,025 1,657
Profit / (loss) for the period attributable to the owners of the parent 329,760 46,684
Total Assets
Refining 5,337,313 6,424,209
Marketing 1,272,293 1,316,248
Exploration & Production 9,123 8,602
Petro-chemicals 367,398 310,833
Gas & Power 693,498 670,355
Other Segments 1,662,431 1,260,858
Inter-Segment (2,153,235) (1,962,522)
Total 7,188,821 8,028,583
Total Liabilities
Refining 3,783,405 5,115,315
Marketing 630,432 715,217
Exploration & Production 14,626 11,909
Petro-chemicals 111,208 64,175
Gas & Power 3,337 3,475
Other Segments 1,648,586 1,238,035
Inter-Segment (1,144,408) (909,813)
Total 5,047,186 6,238,313

Parent Company Financial Statements

STATEMENT OF FINANCIAL POSITION (amounts in thousands €)

PARENT COMPANY 31/12/16 31/12/15
ASSETS
Property, plant and equipment 2,718,798 2,774,026
Intangible assets 6,490 8,371
Other non-current assets 729,213 850,619
Inventories 839,306 580,747
Trade and other receivables 1,036,420 1,001,818
Derivative financial instruments 15,192 -
Cash, cash equivalents and restricted cash 888,783 1,839,156
Available-for-sale non-current assets 1,017 50
TOTAL ASSETS 6,235,219 7,054,787
EQUITY AND LIABILITIES
Share capital 666,285 666,285
Share premium 353,796 353,796
Retained earnings and other reserves 570,069 204,810
Capital and reserves attributable to Company Shareholders (a) 1,590,150 1,224,891
Non-controlling interests (b) - -
TOTAL EQUITY (c) = (a) + (b) 1,590,150 1,224,891
Long-term borrowings 1,460,281 1,536,414
Provisions and other long term liabilities 341,755 92,900
Short-term borrowings 1,150,418 1,419,687
Other short-term liabilities 1,692,615 2,780,895
Total liabilities (d) 4,645,069 5,829,896
TOTAL EQUITY AND LIABILITIES (c) + (d) 6,235,219 7,054,787

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD (amounts in thousands €)

PARENT COMPANY 1/1/2016 - 31/12/16 1/1/2015 - 31/12/15
Sales 5,992,446 6,584,471
Gross profit 701,165 382,041
Operating profit / (loss) 215,198 620,236 215,198
Profit / (loss) before Income Tax 466,224 22,725
Less: Taxes (131,901) 4,816
Profit / (loss) for the year 334,323 27,541
Attributable to:
Owners of the parent
Non-controlling interests
Other comprehensive income / (loss) for the year, net of tax 30,936 20,663
Total comprehensive (loss) / income for the year 365,259 48,204
Attributable to:
Owners of the parent
Non-controlling interests
Basic and diluted earnings per share (in Euro per share) 1.09 0.09
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) 770,416 351,273

STATEMENT OF CHANGES IN EQUITY (amounts in thousands €)

PARENT COMPANY 31/12/16 31/12/15
Total equity at beginning of the year (1/1/2016 & 1/1/2015) 1,224,891 1,176,687
Total comprehensive (loss) / income for the year 365,259 48,204
Dividends to non-controlling interests - -
Expenses relating to share capital increase of subsidiary - -
Tax on intra-group dividends - -
Total equity at the end of the year 1,590,150 1,224,891

STATEMENT OF CASH FLOW (amounts in thousands €)

PARENT COMPANY 1/1/2016 - 31/12/16 1/1/2015 - 31/12/15
Cash flows from operating activities
(Loss) / Profit before Tax 466,224 22,725
Adjustments for:
Depreciation and amortisation of tangible and intangible assets 151,452 137,696
Impairment of fixed assets - -
Amortisation of government grants (1,272) (1,621)
Interest expense and similar charges 189,015 187,235
Interest income (13,541) (20,663)
Share of operating profit of associates (38,348) (32,659)
Provisions for expenses and valuation charges 55,413 52,948
Foreign exchange (gains) / losses (21,462) 25,901
(Gain)/Loss from disposal of available for sale financial assets - -
Discounting effect on long term payables - -
(Gain)/Loss from disposal of Non Current Assets 71 866
787,552 372,428
Changes in working capital
(Increase) / decrease in inventories (272,911) (62,309)
(Increase) / decrease in trade and other receivables (83,302) 5,088
Increase / (decrease) in payables (826,694) 121,562
Less:
Income tax paid (1,279) (16,993)
Net cash generated from / (used in) operating activities (a) (396,634) 419,776
Cash flows from investing activities
Purchase of property,plant and equipment & intangible assets (91,161) (134,691)
Cash from sale of property, plant and equipment & tangible assets 82 812
Interest received 13,541 20,663
Acquisition of subsidiary, net of cash acquired - -
Dividends received 38,348 32,659
Expenses paid relating to share capital increase of subsidiary - -
Grants received - 1,182
Participation in share capital (increase) / decrease of associates (9,711) (3,500)
Proceeds from disposal of available for sale financial assets - -
Net cash used in investing activities (b) (48,901) (82,875)
Cash flows from financing activities
Interest paid (180,425) (186,577)
Dividends paid to shareholders of the Company (474) (64,011)
Dividends paid to non-controlling interests - -
Movements in restricted cash (1,969) 44,444
Proceeds from borrowings 505,968 475,892
Repayments of borrowings (839,789) (326,743)
Net cash generated from / (used in ) financing activities (c) (516,689) (56,995)
Net (decrease) / increase in cash & cash equivalents (a)+(b)+(c) (962,224) 279,906
Cash and cash equivalents at the beginning of the year 1,683,600 1,393,262
Exchange gains / (losses) on cash and cash equivalents 10,432 9,882 10,432
Net (decrease) / increase in cash and cash equivalents (962,224) 279,906
Cash and cash equivalents at end of the year 731,258 1,683,600