50
51
Interim Financial Statements
- The provisions of the article 139 of L. 4389/2016 and the relevant decision of the Governmental Board for Economic Policy (KYSOIP)
No 35/20.5.2016, which specifies the cost elements for calculating the variable cost of production from Lignite fired plants in the context of
determining the reserve price for the disposal of futures on Electricity products with physical delivery.
However, given that as of the date of approval of MYTILINEOS HOLDINGS SA’s interim financial statements for the 1st half of 2016, the two
parties have not yet reached an agreement in relation to the basic terms for pricing electricity supplied by PPC to the Subsidiary , the latter
has recognized in the results for the said period the tariff determined by the Arbitral Decision as true and fair, plus System charges, the SGI
charge, the Special RES Duty charge and provisions related to the Electricity Excise Tax, Execution of Customs Operations (ΔΕΤΕ) and
provisions for non-recoverable (by way of the compensation mechanism) carbon dioxide (CO2) emissions.
For the reported period of 2016, the difference between the amount recognized by the Subsidiary in its results of operations regarding the
cost of electricity and the amount that would have been recognized had the Subsidiary accepted the invoices that PPC unilaterally and
arbitrarily continues to issue, amounts to 10,8 mil
€
. Respectively, said difference calculated from 1/1/2014 up to 30/6/2016 amounts to 53,1
mil
€
.
As it is noted, the two parties have not yet, as of the date of approval of the Group’s Interim Financial Statements for the 1st half of 2016,
reached an agreement. Therefore, none of the above differences constitute contingent liabilities, nor can they be considered as such,
because contingent claims and contingent liabilities which cannot be accurately estimated at this stage may arise for the Subsidiary, as
a result of the finalization of negotiations between the two parties, or following new legal or arbitration procedures, or procedures before
another competent authority.
Other Contingent Assets & Liabilities
There is a pending legal claim of the parent company METKA from a supplier of
€
16.8 million which relates to compensation for poor per-
formance. The defendant company has filed a declaratory action claiming that it has no obligation to pay the Company the above amount.
The Company shall acknowledge in its results the amount that may be assigned to it at the time of a positive outcome and recovery. For
the above case, the defendant company has also requested arbitration against the absorbed company RODAX S.A., the cases of which
are automatically taken over by METKA.
There are other contingent liabilities against the Group, amounting to 4.03 m
€
, for which no provision is formed on the results since the
outcome of these is deemed uncertain. Moreover there are Groups’ claims against third parties amounting to 70.42 m
€
.
8.18 Provisions
The Group’s and the Company’s recorded provisions as at 30.06.2016 are analyzed bellow:
MYTILINEOS GROUP
(Amounts in thousands
€
)
Litigation
Provision
Environmental
Restoration
Tax liabilities
Other
Total
1/1/2015
-
408
2.437
12.667
15.512
Additional Provisions For The Period
-
1.039
(9)
1.552
2.582
Exchange Rate Differences
-
-
1
-
1
Realised Provisions For The Period
-
(179)
(1.114)
(1.310)
(2.603)
31/12/2015
-
1.269
1.315
12.909
15.492
Long -Term
-
1.269
1.315
12.208
14.791
Short - Term
-
-
-
701
701
Additional Provisions For The Period
-
-
-
414
414
Realised Provisions For The Period
-
(96)
-
(1.707)
(1.804)
30/06/2016
-
1.172
1.315
11.615
14.102
Long -Term
-
1.172
1.315
11.597
14.084
Short - Term
-
-
-
18
18
MYTILINEOS S.A.
(Amounts in thousands
€
)
Litigation
Provision
Environmental
Restoration Tax liabilities Other
Total
1/1/2015
-
-
1.102
266
1.368
Additional Provisions For The Period
-
-
-
683
683
Realised Provisions For The Period
-
-
(1.100)
-
(1.100)
31/12/2015
-
-
2
949
951
Long -Term
-
-
2
266
268
Short - Term
-
-
-
683
683
Realised Provisions For The Period
-
-
-
(683)
(683)
30/06/2016
-
-
2
266
268
Long -Term
-
-
2
266
268
Environmental Restoration.
This provision represents the present value of the estimated costs to reclaim quarry sites and other
similar post-closure obligations.
Tax Liabilities.
This provision relates to future obligations that may result from tax audits.
Other provisions.
Comprise other provisions relating to other risks none of which are individually
material to the Group and to contingent liabilities arising from current commitments.
8.19 Trade Receivables
MYTILINEOS GROUP
MYTILINEOS S.A.
(Amounts in thousands
€
)
30/06/2016
31/12/2015
30/06/2016
31/12/2015
Customers
456.042
439.566
1.926
1.771
Checks receivable
4.279
4.377
1.917
1.917
Less: Impairment Provisions
826
(5.655)
(3.603)
(3.603)
Net trade Receivables
461.147
438.287
241
85
Advances for inventory purchases
130
171
-
-
Advances to trade creditors
34.045
31.556
-
-
Total
495.321
470.014
241
85
MYTILINEOS GROUP
MYTILINEOS S.A.
(Amounts in thousands
€
)
30/06/2016
31/12/2015
30/06/2016
31/12/2015
Customers - Withholding quarantees falling due after
one year
202.950
213.511
-
-
Given Guarantees
1.400
1.498
178
175
Other long term receivables
5.044
5.084
-
-
Other Long-term Receivables
209.394
220.092
178
175
8.20 Other Long Term Receivables
The Long-term receivables from related parties relate to intercompany loans.
