13. Quarterly financial information of KGHM Polska Miedź S.A.
in PLN millions, unless otherwise stated
Explanatory notes to the statement of profit or loss
INTERIM STATEMENT OF PROFIT OR LOSS
| | 4th quarter of 2017 | 4th quarter of 2016 | 4 quarters of 2017 | 4 quarters of 2016 |
|---|---|---|---|---|
| Sales revenue | 4 591 | 4 828 | 16 024 | 15 112 |
| Cost of sales | (3 657) | (3 659) | (12 022) | (11 630) |
| Gross profit | 934 | 1 169 | 4 002 | 3 482 |
| Selling costs and administrative expenses | ( 256) | ( 268) | ( 877) | ( 887) |
| Profit on sales | 678 | 901 | 3 125 | 2 595 |
| Other operating income/(costs) | (1 315) | (5 509) | (2 004) | (5 429) |
| Finance income/(costs) | 289 | ( 599) | 1 033 | ( 541) |
| Profit/(Loss) before income tax | (348) | (5 207) | 2 154 | (3 375) |
| Income tax expense | ( 179) | ( 160) | ( 831) | ( 710) |
| LOSS FOR THE PERIOD | ( 527) | (5 367) | (1 323) | (4 085) |
| | | | | |
| Weighted average number of ordinary shares (million) | 200 | 200 | 200 | 200 |
| Basic/diluted earnings per share (in PLN) | ( 2.64) | ( 26.83) | 6.62 | ( 20.42) |
Explanatory notes to the statement of profit or loss
Note 13.1 Expenses by nature
| 4th quarter of 2017 | 4th quarter of 2016 | 4 quarters of 2017 | 4 quarters of 2016 | |
|---|---|---|---|---|
| Depreciation of property, plant and equipment and amortisation of intangible assets | 280 | 257 | 1 072 | 993 |
| Employee benefits expenses | 864 | 805 | 3 210 | 3 023 |
| Materials and energy, including: | 1 447 | 1 487 | 5 831 | 5 482 |
| Purchased metal-bearing materials | 932 | 975 | 3 750 | 3 469 |
| Electrical and other energy | 196 | 186 | 775 | 745 |
| External services, including: | 456 | 390 | 1 531 | 1 392 |
| Transport | 54 | 68 | 215 | 228 |
| Repairs, maintenance and servicing | 140 | 121 | 446 | 392 |
| Mine preparatory work | 116 | 83 | 437 | 367 |
| Minerals extraction tax | 456 | 396 | 1 765 | 1 338 |
| Other taxes and charges | 79 | 90 | 389 | 387 |
| Advertising costs and representation expenses | 14 | 14 | 37 | 37 |
| Property and personal insurance | 5 | 5 | 21 | 19 |
| Other costs | 18 | 35 | 68 | 105 |
| Total expenses by nature | 3 619 | 3 479 | 13 924 | 12 776 |
| Cost of merchandise and materials sold (+) | 35 | 38 | 182 | 145 |
| Change in inventories of finished goods and work in progress (+/-) | 287 | 434 | (1 097) | ( 286) |
| Cost of manufacturing products for internal use (-) | ( 28) | ( 24) | ( 110) | ( 118) |
| Cost of sales, selling costs and administrative expenses, including: | 3 913 | 3 927 | 12 899 | 12 517 |
| Cost of sales | 3 657 | 3 659 | 12 022 | 11 630 |
| Selling costs | 29 | 41 | 112 | 126 |
| Administrative expenses | 227 | 227 | 765 | 761 |
Note 13.2 Other operating income/(costs)
| 4th quarter of 2017 | 4th quarter of 2016 | 4 quarters of 2017 | 4 quarters of 2016 | |
|---|---|---|---|---|
| Measurement and realisation of derivatives | (1) | 19 | 226 | 167 |
| Interest on loans granted | 55 | 122 | 300 | 376 |
| Foreign exchange gains on assets and liabilities other than borrowings | - | 482 | - | 482 |
| Fees and charges on re-invoicing bank guarantees costs securing payment of liabilities | 8 | 16 | 51 | 41 |
| Other | 43 | 17 | 103 | 79 |
| Total other income | 105 | 656 | 680 | 1 145 |
| Measurement and realisation of derivatives | ( 170) | ( 121) | ( 439) | ( 243) |
| Impairment loss on available-for-sale assets | - | - | - | ( 57) |
| Exchange differences on assets and liabilities other than borrowings | (280) | 163 | (1 179) | - |
| Impairment loss on shares in subsidiaries | ( 330) | (4 856) | ( 330) | (4 856) |
| Allowance for impairment of loans granted to subsidiaries | ( 606) | (1 130) | ( 606) | (1 130) |
| Impairment loss on exploration and evaluation assets | - | ( 136) | - | ( 136) |
| Other | ( 34) | ( 85) | ( 130) | ( 152) |
| Total other costs | (1 420) | (6 165) | (2 684) | (6 574) |
| Other operating income/(costs) | (1 315) | (5 509) | (2 004) | (5 429) |
Note 13.3 Finance income/(costs)
| 4th quarter of 2017 | 4th quarter of 2016 | 4 quarters of 2017 | 4 quarters of 2016 | |
|---|---|---|---|---|
| Exchange differences on borrowings | 334 | - | 1 247 | - |
| Measurement of derivatives | - | 26 | - | 26 |
| Total income | 334 | 26 | 1 247 | 26 |
| Interest on borrowings | ( 27) | ( 33) | ( 113) | ( 76) |
| Bank fees and charges on borrowings | ( 8) | ( 8) | ( 28) | ( 45) |
| Exchange differences on borrowings | - | ( 576) | - | ( 398) |
| Measurement of derivatives | - | 2 | ( 30) | ( 9) |
| Unwinding of the discount | ( 10) | ( 10) | ( 43) | ( 39) |
| Total costs | ( 45) | ( 625) | ( 214) | ( 567) |
| Finance income/(costs) | ( 289) | ( 599) | ( 1 033) | ( 541) |