13. Quarterly financial information of KGHM Polska Miedź S.A.
in PLN millions, unless otherwise stated
STATEMENT OF PROFIT OR LOSS
| from 1 October 2018 to 31 December 2018 | from 1 October 2017 to 31 December 2017 | from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | |
|---|---|---|---|---|
| Revenues from contracts with customers, including: | 4 440 | 4 591 | 15 757 | 16 024 |
| from sales, for which the amount of revenue was not finally determined at the end of the reporting period (IFRS 15, 114) | 199 | N/A* | 831 | N/A* |
| Cost of sales | (3 642) | (3 657) | (12 537) | (12 022) |
| Gross profit | 798 | 934 | 3 220 | 4 002 |
| Selling costs and administrative expenses | ( 269) | ( 256) | ( 923) | ( 877) |
| Profit on sales | 529 | 678 | 2 297 | 3 125 |
| Other operating income/(costs) | 490 | (1 315) | 1 149 | (2 004) |
| interest income calculated using the effective interest rate method | 55 | N/A* | 242 | N/A* |
| reversal/(recognition) of impairment losses on financial instruments and (recognition) of impairment losses on purchased or originated credit-impaired assets at the moment of initial recognition (POCI) | 109 | N/A* | 270 | N/A* |
| Finance income/(costs) | ( 275) | 289 | ( 774) | 1 033 |
| Profit/(Loss) before income tax | 744 | ( 348) | 2 672 | 2 154 |
| Income tax expense | ( 149) | ( 179) | ( 647) | ( 831) |
| PRFIT/(LOSS) FOR THE PERIOD | 595 | ( 527) | 2 025 | 1 323 |
| Weighted average number of ordinary shares (million) | 200 | 200 | 200 | 200 |
| Basic/diluted earnings per share (in PLN) | 2.98 | ( 2.64) | 10.13 | 6.62 |
* N/A – not applicable – items in which the following did not occur: measurement in accordance with principles arising from the application, from 1 January 2018, of IFRS 9, and the disclosure requirement of IFRS 15.
Explanatory notes to the statement of profit or loss
Note 13.1 Expenses by nature
| from 1 October 2018 to 31 December 2018 | from 1 October 2017 to 31 December 2017 | from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | |
|---|---|---|---|---|
| Depreciation of property, plant and equipment and amortisation of intangible assets | 305 | 280 | 1 173 | 1 072 |
| Employee benefits expenses | 805 | 864 | 3 324 | 3 210 |
| Materials and energy, including: | 1 471 | 1 447 | 5 312 | 5 831 |
| Purchased metal-bearing materials | 862 | 932 | 3 040 | 3 750 |
| Electrical and other energy | 203 | 196 | 803 | 775 |
| External services, including: | 455 | 456 | 1 649 | 1 531 |
| Transport | 58 | 54 | 216 | 215 |
| Repairs, maintenance and servicing | 150 | 140 | 511 | 446 |
| Mine preparatory work | 115 | 116 | 477 | 437 |
| Minerals extraction tax | 374 | 456 | 1 671 | 1 765 |
| Other taxes and charges | 97 | 79 | 412 | 389 |
| Advertising costs and representation expenses | 18 | 14 | 43 | 37 |
| Property and personal insurance | 6 | 5 | 23 | 21 |
| Other costs | 2 | 18 | 26 | 68 |
| Total expenses by nature | 3 533 | 3 619 | 13 633 | 13 924 |
| Cost of merchandise and materials sold (+) | 45 | 35 | 177 | 182 |
| Change in inventories of products and work in progress (+/-) | 366 | 287 | ( 236) | (1 097) |
| Cost of products for internal use (-) | ( 33) | ( 28) | ( 114) | ( 110) |
| Total cost of sales, selling costs and administrative expenses, including: | 3 911 | 3 913 | 13 460 | 12 899 |
| Cost of sales | 3 642 | 3 657 | 12 537 | 12 022 |
| Selling costs | 34 | 29 | 115 | 112 |
| Administrative expenses | 235 | 227 | 808 | 765 |
Note 13.2 Other operating income/(costs)
| from 1 October 2018 to 31 December 2018 | from 1 October 2017 to 31 December 2017 | from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | |
|---|---|---|---|---|
| Measurement and realisation of derivatives | 56 | ( 1) | 167 | 226 |
| Exchange differences on assets and liabilities other than borrowings | 162 | - | 386 | - |
| Interest on loans granted and other financial receivables | 56 | 58 | 244 | 310 |
| Fees and charges on re-invoicing of costs of bank guarantees securing payments of liabilities | 4 | 8 | 53 | 51 |
| Reversal of allowances for impairment of loans due to restructuring of intra-group financing | - | N/A* | 778 | N/A* |
| Reversal of allowances for impairment of loans measured at amortised cost | ( 6) | N/A* | 183 | N/A* |
| Reversal of impairment losses on shares in subsidiaries | 402 | - | 402 | - |
| Reversal of allowances for impairment of loans recognised at the moment of initial recognition | 85 | N/A* | 85 | N/A* |
| Gains on changes in fair value of financial assets measured at fair value through profit or loss | 14 | N/A* | 184 | N/A* |
| Dividends income | - | - | 239 | 4 |
| Other | 10 | 40 | 78 | 89 |
| Total other income | 783 | 105 | 2 799 | 680 |
| Measurement and realisation of derivatives | ( 105) | ( 170) | ( 303) | ( 439) |
| Losses due to initial recognition of POCI loans due to restructuring of intra-group financing | - | N/A* | ( 763) | N/A* |
| Allowance for impairment of loans under IFRS 9 | 40 | N/A* | ( 4) | N/A* |
| Allowance for impairment of loans under IAS 39 | N/A* | ( 606) | N/A* | ( 606) |
| Fair value losses on financial assets measured at fair value through profit or loss | ( 129) | N/A* | ( 247) | N/A* |
| Exchange differences on assets and liabilities other than borrowings | - | ( 280) | - | (1 179) |
| Impairment losses on shares and investment certificates in subsidiaries | ( 47) | ( 330) | ( 47) | ( 330) |
| Provisions recognised | ( 10) | ( 5) | ( 162) | ( 23) |
| Other | ( 42) | ( 29) | ( 124) | ( 107) |
| Total other costs | ( 293) | (1 420) | (1 650) | (2 684) |
| Other operating income and (costs) | 490 | (1 315) | 1 149 | (2 004) |
* N/A – not applicable – items in which the following did not occur: measurement in accordance with principles arising from the application, from 1 January 2018, of IFRS 9, and the disclosure requirement of IFRS 15.
Note 13.3 Finance income/(costs)
| from 1 October 2018 to 31 December 2018 | from 1 October 2017 to 31 December 2017 | from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | |
|---|---|---|---|---|
| Exchange differences on borrowings | - | 334 | - | 1 247 |
| Measurement of derivatives | ( 17) | - | 11 | - |
| Total income | ( 17) | 334 | 11 | 1 247 |
| Interest on borrowings | ( 37) | ( 27) | ( 127) | ( 113) |
| Bank fees and charges on borrowings | ( 5) | ( 8) | ( 23) | ( 28) |
| Exchange differences on borrowings | ( 206) | - | ( 592) | - |
| Measurement of derivatives | - | - | - | ( 30) |
| Unwinding of the discount | ( 10) | ( 10) | ( 43) | ( 43) |
| Total costs | ( 258) | ( 45) | ( 785) | ( 214) |
| Finance income/(costs) | ( 275) | 289 | ( 774) | 1 033 |