2.2.2 Gunvor Annual Report 2020

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2.2.2 GUNVOR_ANNUAL_REPORT_2020.pdf - Page 1
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Annual Report 2020

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GUNVOR
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GROUP LTD
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2020
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Annual
Report
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Gunvor Group Ltd Nicosia, Cyprus
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CONSOLIDATED
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ANNUAL REPORT
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For the year ended 31 December 2020

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Contents
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Board of Directors 01
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Management report 02 - 04
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Consolidated balance sheet 06 - 07
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Consolidated statement of comprehensive income 08 - 09
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Consolidated statement of cash flows 10

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Consolidated statement of changes in equity 11

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Notes to the consolidated financial statements 14 - 67

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Independent auditor’s report 70 - 72

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Board of directors
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Board of Directors
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Torbjörn Törnqvist - Chairman
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Menelaos Pissourios
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Gerhard Auer
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Mats Hakan Nilsson
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Jérôme Pierre Marie Gonelle
Georgios Loizou
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Company Secretary
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Vasiliki Papalli
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Assistant Company Secretary

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Roupen Tavitian
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Registered office
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8 Stasinou Avenue
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Photos Photiades Business Centre

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Office 401
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1060 Nicosia
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Management Report
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The Board of Directors presents its report and the audited consolidated
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financial statements of Gunvor Group Ltd and its subsidiaries (together
referred to as the “Group’’ or “Gunvor’’) for the year ended 31 December
1:2
2020.
1:1
Principal activities
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The Group is engaged in the trading of crude oil, refined oil products,
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natural gas, liquefied natural gas (LNG), and power, and provides logistics
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arrangements for the safe and efficient movement of goods from their initial
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source or storage location to the location of buyers. Gunvor’s main trading
centers are in Geneva, Singapore, Houston, Stamford, London, Dubai, and
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Nassau. The Group also operates through service centers, representative
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offices and branches in other locations, while supporting trading activities
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with investments in industrial assets, including shipping, refineries, terminals,
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pipelines, and storage. Additional details are presented in the notes.
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Review of current position, developments and performance
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In 2020, Gunvor responded effectively to extraordinary and historic changes in world markets, as the global
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economy faltered due to the COVID‑19 pandemic and energy prices crashed in response to the Saudi
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Arabia‑led oil price war. The Group’s investments in new talent, market analysis, and advanced trading systems,
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along with strengthened risk management and governance, paid off. Gunvor’s trading operations capitalised
on the massive market gyrations, and the Company moved quickly to stem potential long‑term loss‑making
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investments in refining.
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Gunvor recorded gross profit of USD 1.659 billion for the year, the highest in the Group’s history. After‑tax net
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profit was USD 320 million, a decrease from USD 435 million in 2019. Trading volumes were slightly lower at
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191 million MT from 198 million MT the year prior. The Company generated revenue of USD 50 billion, compared
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with USD 75 billion the year prior, reflecting historic lows in commodities prices, in particular crude oil.
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As the COVID‑19 crisis spread across the world during the first and second quarters, a massive sell‑off
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occurred as a result of a combination of several extraordinary factors, starting with a misjudged OPEC meeting
in March, which resulted in free‑for‑all production at a time when demand collapsed like never in history. The
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consequence was a massive oversupply of approximately 20 million‑30 million barrels for a short period of time.
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West Texas Intermediate crude dropped by almost 300%, trading at around negative $37 per barrel. Gunvor
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was well positioned to benefit from the resulting contango. Also, commodities not related to the oil collapse and
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contango, such as LNG and shipping, contributed to profits during this period.
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Early on during the COVID‑19 crisis, Gunvor concluded there would be a surplus of refining capacity globally for a
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long time to come, even after the pandemic subsided, and especially so in Europe. In response, the Group took
the decision at the end of the first half to mothball the Antwerp refinery. In Rotterdam, the Company shut down
1:2
the two crude units, and shifted operations to focus on the desulfurization of high‑sulfur products, the production
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of gasoline, and the processing of biofuels. The Ingolstadt facility, a top‑quartile European refinery with strong
location advantage, continued unchanged; the Group’s refining operations overall weighed on results for the year.
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While crude oil and oil product remain central to Gunvor’s business, by the end of 2020, about 50% of the
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Company’s physical trading consisted of “transitional” commodities, according to the EU Taxonomy, including
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biofuels, natural gas, and LNG. Gunvor has become one of the largest biofuels traders in Europe, while the
Company is already the largest independent trader of LNG worldwide, and one of the largest traders of physical
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natural gas in Europe. The reorientation of Gunvor’s trading mix is the fulfilment of a long‑term plan that began
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a decade ago. Today, these developments position the Company well in the midst of the “Energy Transition.”
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To further position Gunvor for a low‑carbon future, the decision was made during the year to target 10% of net
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equity to be spent on non‑hydrocarbon energy solutions over the next couple of years.
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With respect to other investments, the Ust‑Luga Oil Products Terminal was reclassified from “assets held for
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sale” back to “investments in associates and joint ventures,” given that its divestiture has been deprioritised
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and it continues to contribute meaningfully to earnings. Impairments were made for the Stargate Oil Terminal
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in Rotterdam, as well as for vessels under time charter, following the significative decline in demand for time
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chartering.
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The Group’s equity position strengthened further during the year to USD 2.227 billion.
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With respect to liquidity, the Group successfully refinanced its main facilities, as well as launched new financings
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for its natural gas trading and biofuels operations. Gunvor further initiated a second sustainability‑linked financing
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for the Ingolstadt refinery, having successfully met the targets for similar previous facilities. Going forward, the
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Group will continue to incorporate Environmental, Social, and Governance criteria into its financings. The Group
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continued to maintain a strong cash position and very liquid balance sheet.
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Principal risks, uncertainties and use of financial instruments

The Group is exposed to external factors which may impact its profitability. The main risks and their management
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are disclosed in note 24, and accounting estimates and judgments are disclosed in note 3.
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Management Report
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Dividends
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During the year the Company declared dividends for a total amount of USD 83,870,122 (2019: 65,749,780).
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Share capital
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The changes in the issued share capital of the Company during the year under review are stated in note 13 of
the consolidated financial statements.
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Board of Directors
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In accordance with the Company’s Articles of Association, all the Directors remain in office. There were no
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significant changes in the assignment of responsibilities and remuneration of the Board of Directors.
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Events after the reporting period
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There were no materials events after the reporting period, which have a bearing on the understanding of the
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consolidated financial statements.
Independent Auditors
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The Independent Auditors, PricewaterhouseCoopers Limited, have expressed their willingness to continue in
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office and a resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the
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Annual General Meeting.

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On behalf of the Board of Directors

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Torbjörn Törnqvist
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Chairman
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31 March 2021
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Consolidated balance sheet
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As at 31 December
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(In thousands of USD) Note 2020 2019 Restated
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ASSETS
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Non-current assets
Property, plant and equipment 4 500,717 713,522
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Right‑of‑use assets 5 1,483,319 1,302,109
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Intangible assets 6 3,574 25,268
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Investments in associates and joint ventures 7 788,341 904,343
Other financial assets 8 28,004 31,511
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Receivables 12 47,879 91,102
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Deferred income tax 9 41,892 36,151
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Derivative financial instruments 10 411,294 293,848
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Total non-current assets 3,305,020 3,397,854
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Current assets
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Other financial assets 8 106,494 103,792

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Inventories 11 4,804,909 3,944,125

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Receivables 12 4,178,644 5,166,702

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Derivative financial instruments 10 3,405,447 3,062,619

Cash 806,219
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Total current assets 13,301,713 13,218,120

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TOTAL ASSETS 16,606,733

16,615,974
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The accompanying notes on pages 14 to 67 are an integral part of these consolidated financial statements.
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As at 31 December
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EQUITY
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Share capital 13 2,179 2,384
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Share premium - 59,808
Other reserves 14 (31,324) 14,620
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Retained earnings 2,257,683
2,048,217
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Total equity 2,228,538
2,125,029
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LIABILITIES
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Non‑current liabilities
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Trade and other payables 15 40,233 46,137
Derivative financial instruments
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Borrowings 18 770,266 776,759
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Lease liabilities 1,050,084

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Deferred income tax 9 61,725 56,672

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Retirement benefit obligations 16 84,570 74,329

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Provisions 17 81,184 70,049

Total non‑current liabilities 2,420,891 2,304,480
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Current liabilities
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Trade and other payables 15 3,751,896 5,177,621

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Derivative financial instruments 10 3,480,921 3,119,807

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Borrowings 18 4,190,854 3,466,135

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Lease liabilities 533,633

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Total current liabilities 11,957,304 12,186,465

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Total liabilities 14,378,195

14,490,945
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TOTAL EQUITY AND LIABILITIES 16,606,733 16,615,974

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On 31 March 2021 the Board of Directors of Gunvor Group Ltd authorised these financial statements for issue.
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Torbjörn Törnqvist Gerhard Auer Jérôme Pierre Marie Gonelle

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Chairman Director Director

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Consolidated statement of comprehensive income
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Year ended 31 December
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Revenue 19 50,149,121 75,301,945
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Cost of sales (48,490,005) (73,837,972)
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Gross Profit 1,659,116
1,463,973

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Other operating income 20 44,669 17,733
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Other operating expenses 21 (1,193,308) (835,800)
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Operating profit 510,477
645,906

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Finance income 22 31,615 53,782
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Finance expense 22 (250,831) (321,093)
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Net finance costs (219,216) (267,311)
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Share of results of associates and joint ventures
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Profit before income tax 373,372 440,848
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Income tax 23 (53,269) (5,821)

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Profit for the year, net of tax 320,103 435,027

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Other comprehensive income:
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Items that may be reclassified subsequently to comprehensive income:
Share of other comprehensive (loss) / income of associates and joint ventures 7 (44,070) 29,097
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Items that will not be reclassified to comprehensive income:
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Remeasurements of post‑employment benefit obligations 14 (2,178) (15,308)
Fair value gain on other financial assets 14 304 30
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Other comprehensive (loss) / income for the year, net of tax (45,944) 13,819
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Total comprehensive income for the year 274,159 448,846
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Consolidated statement of cash flows
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(In thousands of USD) Note 2020 2019
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Profit before tax 373,372 440,848
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Adjustments:
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Depreciation and amortisation 715,273 515,603
Impairments 21 450,834 150,792
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Interest result, net 178,220 253,535
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Share of results of associates and joint ventures 7 (82,111) (62,264)
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Share-based payments 21 93,156 46,000
Allowance for doubtful receivables 12 29,970 22,219
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Other provisions (5,238) 51,098
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Cash generated by operating activities before working capital change 1,753,476 1,417,831
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Decrease in receivables 903,419 358,022
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Increase in inventories (860,784) (1,099,667)
Derivatives, net
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(Decrease) / increase in payables (1,346,933) 859,458
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Total working capital change (1,453,491) 638,374

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Income tax paid (30,773) (26,838)

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Interests paid, net (180,534) (272,804)

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Net cash generated from operating activities 88,678 1,756,563

Investing activities
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Acquisition of subsidiaries, net of cash acquired 25 - (14,759)

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Proceeds on disposal of subsidiaries, net of cash disposed of - 7,670

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Proceeds on disposal of associates, net of cash disposed of 7 5,239 -

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Purchases of property, plant and equipment 4 (213,097) (138,658)

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Investment in associates and joint ventures 7 (23,784) (24,600)

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Loans granted to related parties (173,642) (157,457)

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Loan repayments received from related parties 78,104 87,655

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Loans granted to third parties (227,917) (387,962)

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Loans repaid 242,073 359,088

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Acquisition of financial assets 8 (2,968) -

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Proceeds on disposal of financial assets 8 1,349 3,257

Dividends received 142,703 89,451
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Net cash used in investing activities (171,940) (176,315)

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Financing activities
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Dividends paid to the equity holders of the Company 13 (148,802) (750)

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Proceeds from borrowings 18 1,386,097 440,593

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Repayment of borrowings 18 (666,172) (1,476,974)

Repayment of lease liabilities (602,783) (373,360)
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Net cash used in financing activities (31,660) (1,410,491)

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Net (decrease) / increase in cash (114,922) 169,757

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Cash at 1 January 940,882 772,071

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Exchange losses (19,741) (946)

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Cash at 31 December 806,219 940,882

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Consolidated statement of changes in equity
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Attributable to equity holders of the Company
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Share Share Other Retained
capital premium reserves earnings
(In thousands of USD)
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(note 13) (1) (note 14) (2) Total
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Balance at 1 January 2019 2,451 29,000 801 1,740,620 1,772,872
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Profit for the year - - - 435,027 435,027
Other comprehensive income - - 13,819 - 13,819
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Total comprehensive income - - 13,819 435,027 448,846
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Transactions with owners:
Issue of shares 19 75,488 - (61,680) 13,827
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Cancellation of shares (86) (61,680) - - (61,766)
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Change in shares to be issued for
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share-based payments - 17,000 - - 17,000
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Dividends - - - (65,750) (65,750)
Total transactions with owners (67)
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30,808 - (127,430) (96,689)
Balance at 31 December 2019 (restated) 2,384 59,808 14,620 2,048,217 2,125,029

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Profit for the year - - - 320,103 320,103

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Other comprehensive loss - - (45,944) - (45,944)

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Total comprehensive income - - (45,944) 320,103 274,159

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Transactions with owners:

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Issue of shares - 162,160 - (162,160) -

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Cancellation of shares (205) (175,968) - - (176,173)

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Dividends - - - (83,870) (83,870)

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Share-based payments - (46,000) - 135,393 89,393

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Total transactions with owners (205) (59,808) - (110,637) (170,650)

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Balance at 31 December 2020 2,179 - (31,324) 2,257,683 2,228,538

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(1) Share premium is not available for distribution by way of dividend.

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(2) Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after
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the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits. Special contribution
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for defence at 17% for the tax year 2014 and thereafter will be payable on such deemed dividends to the extent that the
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shareholders (companies and individuals) are Cyprus tax residents. The amount of deemed distribution is reduced by any
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actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by
the Company for the account of the shareholders and is not significant to the Company.
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Notes to
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the consolidated
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Notes to the consolidated financial statements
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01 GENERAL INFORMATION
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Gunvor Group Ltd (the “Company’’) is domiciled in Cyprus and its registered office is at 8 Stasinou Avenue,
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Office 401, 1060 Nicosia, Cyprus. Its consolidated financial statements include the results of the Company and
its subsidiaries (together referred to as the “Group’’). Gunvor Group Ltd is the ultimate parent of the Group.
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The Group is engaged in the trading of crude oil, refined oil products, natural gas, liquefied natural gas (LNG), and
power, and provides logistics arrangements for the safe and efficient movement of goods from their initial source
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or storage location to the location of buyers. Gunvor’s main trading centers are in Geneva, Singapore, Houston,
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Stamford, London, Dubai, and Nassau. The Group also operates through service centers, representative
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offices and branches in other locations, while supporting trading activities with investments in industrial assets,
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including shipping, refineries, terminals, pipelines, and storage. Additional details are presented in the notes.
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All amounts stated in these financial statements are expressed in thousands of United States Dollars (USD),
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except value and dividend per share in note 13 and amounts in note 28 which are expressed in USD.
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02 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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2.1 BASIS OF PREPARATION

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The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies
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Law, Cap.113.
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As of the date of the authorisation of the financial statements, all IFRSs issued by the International Accounting
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Standards Board (IASB) that are effective as of 1 January 2020 have been adopted by the EU through the
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endorsement procedure established by the European Commission.

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The consolidated financial statements have been prepared under the historical cost basis except for the following:
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Derivative financial instruments are measured at fair value

Trading inventories are measured at fair value less costs to sell
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Financial assets at fair value through profit and loss

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Financial assets at fair value through other comprehensive income (“OCI”)

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The methods used to measure fair values are described in notes 3, 11 and 24.
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2.2 CHANGES IN ACCOUNTING POLICY AND DISCLOSURES

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The Group has applied the following standards and amendments for the first time for the financial year beginning
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on 1 January 2020, none of them are material to the Group:

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Definition of Material – amendments to IAS 1 and IAS 8

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Definition of a Business – amendments to IFRS 3

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Interest Rate Benchmark Reform – amendments to IFRS 9, IAS 39 and IFRS 7

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Revised Conceptual Framework for Financial Reporting.

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(CONTINUED) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 02
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Comparatives
9P
On 1 January 2020, based on a reassessment of its interpretation of financial instruments presentation, the Group
amended its derivative financial instruments presentation policy for its exchange listed futures and swaps. The
1:2
Group aligned the netting methodology to the industry commonly used one, believing that this will provide more
1:1
relevant information to the readers and improve comparability of financial statements. For those agreements
where the conditions for offsetting financial instruments are met, the futures and swaps derivatives are netted
22
against the margin accounts with brokers. Comparative figures have been revised to conform with current year
/20
presentation as follows: Non current ‘Derivative financial instruments’ assets and liabilities decreased by USD
/26
38,101 and USD 267,482, respectively, Current ‘Derivative financial instruments’ assets’ decreased by USD
-4
528,009 and Current ‘Derivative financial instruments’ liabilities decreased by USD 194,055. Margin accounts
with brokers, included within ‘Receivables’ and ‘Payables’, decreased by USD 167,669 and USD 272,242
NG
respectively. The financial instruments subject to offsetting are further disclosed in note 24.
iL
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During the year, the Group’s investments classified as ‘Assets held for sale’ were no longer meeting the criteria
lam
of IFRS 5 and the sale process was deprioritised. As a consequence, these investments were reclassified to
‘Investments in associates and joint ventures’, and remeasured using the equity method retrospectively since
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the date of their classification as ‘Assets held for sale’. The comparative period was amended accordingly
-
as follows: ‘Assets held for sale’ decreased by USD 589,022, ‘Investments in associates and joint ventures’
no
increased by USD 687,326, ‘Share of results of associates and joint ventures’ increased by USD 68,389
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and ‘Other comprehensive income’ by USD 29,915. The only impact on the opening balance sheet of the
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comparative period would be a reclassification from ‘Assets held for sale’ to ‘Investments in associates and joint
ventures’. Refer to note 7 for further disclosures on associates and joint ventures.
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In August 2020, an inventory of iron ore stored in Inner Mongolia was reported missing. After investigation at
-A
the warehouse, it was established that the monthly storage reports submitted to Gunvor were not genuine
m
documents. The Group determined that the theft most probably occurred during the second half of 2019, after
.co
its last physical observation, and hence is adjusting the comparative period accordingly by decreasing the
g
‘Inventories’ by USD 14,556 and increasing the ‘Cost of sales’ by the same amount.
i-ln
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During the year, the Group changed its presentation of the Consolidated statement of cash flows by reporting
lam
the cash flows from operating activities using the direct method. Where necessary, comparative figures have
been revised to conform with the current year presentation.
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IMPACT OF COVID‑19 PANDEMIC 2.3

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lam
Gunvor Group, as a global physical commodities trading company, is at its core a risk management organisation,
ca
with more than 20 years of experience. From the onset of the COVID‑19 pandemic in early 2020, the Group
s-
took steps to mitigate risk related to operational uncertainties and market volatility. Prior to government‑imposed
lockdowns throughout the world, Gunvor had already moved to implement work‑from‑home policies and strict
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information security measures to ensure continuous operations. The Group had adequate cash and credit facilities
pa
to manage market volatility. Trading went uninterrupted throughout 2020. The resulting effect of the pandemic on
ter
global financial and energy markets, specifically the resulting crude oil price contango, served to positively impact
un
the Group’s results. The Group took additional steps during the year to limit long‑term market effects, such as
co
the decrease in global, and in particular European, demand, which adversely impacted the oil refining sector.
dit
The Group elected to mothball its Antwerp refinery. While uncertainties remain for the outcome of the pandemic,
re
these have been taken into account throughout Gunvor’s financial statements. However, the Group continues
c
to maintain adequate cash levels and a healthy balance sheet to weather potential adverse market conditions.
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02 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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2.4 BASIS OF CONSOLIDATION
9P
Subsidiaries
1:2
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
1:1
an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.
22
/20
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
/26
deconsolidated from the date that control ceases.
-4
The Group applies the acquisition method to account for business combinations. The consideration transferred
NG
for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former
iL
owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes
ar
the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets
lam
acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at
their fair values at the acquisition date. The Group recognises any non‑controlling interest in the acquiree on an
Ca
acquisition‑by‑acquisition basis, either at fair value or at the non‑controlling interest’s proportionate share of the
-
recognised amounts of acquiree’s identifiable net assets.

no
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Acquisition‑related costs are expensed as incurred.

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If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously
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held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising
nd
from such remeasurement are recognised in the statement of comprehensive income.

-A
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Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted
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to their present value as at the date of exchange.

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Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial
ar
liability are subsequently remeasured to fair value with changes in fair value recognised in the statement of
lam
comprehensive income.
ca
The excess of the consideration transferred, the amount of any non‑controlling interest in the acquiree and the
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acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net
ar
assets acquired is recorded as goodwill. If the total of consideration transferred, non‑controlling interest recognised
lam
and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in
ca
the case of a bargain purchase, the difference is recognised directly in the statement of comprehensive income.
s-
Inter‑company transactions, balances, income and expenses on transactions between group companies are
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eliminated. Profits and losses resulting from inter‑company transactions that are recognised in assets are also
pa
eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
ter
the policies adopted by the Group.

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Disposal of subsidiaries
9P
When the Group ceases to have control in an entity, any retained interest in the entity is remeasured to its
fair value at the date when control is lost, with the change in carrying amount recognised in comprehensive
1:2
income. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained
1:1
interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the
22
related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income
/20
are reclassified to the statement of comprehensive income.
/26
-4
Associates
Associates are all entities over which the Group has significant influence but not control, generally accompanying
NG
a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using
iL
the equity method of accounting, after initially being recognised at cost. The Group’s investment in associates
ar
includes goodwill identified on acquisition.
Joint arrangements
lam
Ca
Investments in joint arrangements are classified as either joint operations or joint ventures depending on the
-
contractual rights and obligations of each investor. Joint ventures are accounted for using the equity method.
no
The Group recognises its direct right to the assets, liabilities, revenues and expenses of the joint operations and
ra
its share of any jointly held or incurred assets, liabilities, revenues and expenses.
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sS
Equity method
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Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter
nd
to recognise the Group’s share of the post‑acquisition profits or losses and movements in other comprehensive
-A
income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in
m
the carrying amount of the investment.

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Where the Group’s share of losses in an equity‑accounted investment equals or exceeds its interests in the
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entity, including any other unsecured receivables, the Group does not recognise further losses, unless it has
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incurred obligations or made payments on behalf of the other entity.

lam
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to
ca
the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction
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provides evidence of an impairment of the asset transferred. Accounting policies of the equity‑accounted
ar
investees have been changed where necessary to ensure consistency with the policies adopted by the Group.
lam
ca
The carrying amount of equity‑accounted investments is tested for impairment in accordance with the policy
s-
described in note 2.8.

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2.5. FOREIGN CURRENCY
9P
Functional and presentation currency
1:2
Items included in the financial statements of each of the Group’s entities are measured using the currency of
1:1
the primary economic environment in which the entity operates (the ‘’functional currency’’). The consolidated
financial statements are presented in USD, which is the parent Company’s functional currency and the Group’s
22
presentation currency.
/20
/26
Transactions and balances
-4
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting
NG
from the settlement of such transactions and from the translation at year‑end exchange rates of monetary assets
iL
and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income, except
ar
when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment
lam
hedges. All foreign exchange gains and losses are presented in the statement of comprehensive income.
Ca
Changes in the fair value of monetary securities denominated in foreign currency classified as financial assets
-
at fair value through OCI are analysed between translation differences resulting from changes in the amortised
no
cost of the security and other changes in the carrying amount of the security. Translation differences related to
ra
changes in amortised cost are recognised in comprehensive income, and other changes in carrying amount are
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recognised in other comprehensive income.

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Non‑monetary items that are measured at fair value in a foreign currency are translated using the exchange
nd
rates at the date when the fair value was determined. Translation differences on non‑monetary financial assets
-A
and liabilities such as equities held at fair value through profit or loss are recognised in comprehensive income
m
as part of the fair value gain or loss. Translation differences on non‑monetary financial assets, such as equities
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measured at fair value through OCI, are included in other comprehensive income.
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2.6 PROPERTY, PLANT AND EQUIPMENT

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lam
Property, plant and equipment comprises mainly of land and constructions, machinery and equipment, oil
and gas properties, office equipment and work in progress. Property, plant and equipment is stated at cost
ca
less accumulated depreciation. Cost consists of purchase cost, together with any incidental expenses that is
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directly attributable to the acquisition.

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lam
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
ca
only when it is probable that future economic benefits associated with the item will flow to the Group and the
s-
cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. Repairs
and maintenance are charged to the statement of comprehensive income during the financial period in which
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they are incurred. Purchased software that is integral to the functionality of the related equipment is capitalised
pa
as part of that equipment.

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Land is not depreciated. Oil and gas properties are depreciated based on unit of production. Depreciation is
9P
calculated on other items of property, plant and equipment so as to write off its cost, less estimated residual
values, on a straight‑line basis over the estimated useful lives of the assets concerned. The estimated useful
1:2
lives are:
1:1
Constructions 20 - 40 years
22
Office equipment 5 - 10 years
/20
Machinery and equipment 2 - 25 years
/26
Computer and related software 3 years
-4
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
NG
reporting period.
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When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down
lam
immediately to its estimated recoverable amount and is reviewed at each reporting date for possible reversal
of the impairment loss.
- Ca
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
no
recognised within ‘other operating income’ or ‘other operating expenses’ in the statement of comprehensive
ra
income.
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Work in progress is stated at cost. When the asset is ready for its intended use, it is transferred from work in
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progress to the appropriate category under property, plant and equipment or intangible assets and depreciated
nd
or amortised in accordance with the Group’s policies.

-A
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Capitalised turnaround costs

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A turnaround is a required standard procedure for maintenance of a refinery that involves the shutdown and
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inspection of major processing units, which occurs approximately every two to five years. Turnaround costs
i-ln
include actual direct and contract labor, materials costs incurred for the overhaul, inspection and the replacement
ar
of major components of processing and support units performed during the turnaround. Turnaround costs,
lam
which are included in the Group’s consolidated balance sheet, are depreciated on a straight‑line basis over the
period until the next scheduled turnaround, beginning the month following completion. The depreciation of the
ca
turnaround costs is presented in the line item ‘cost of sales’ in the consolidated statement of comprehensive
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income.
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lam
Oil and gas properties

ca
Oil and gas properties comprise purchased exploration and evaluation of potential petroleum resources, and oil
s-
and gas producing assets. Oil and gas properties are recognised at cost at acquisition. Exploration and evaluation
expenditure includes costs such as acquisition of rights to explore, topographical, geological, geochemical
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and geophysical studies, exploratory drilling, and activities in relation to evaluating the technical feasibility and
pa
commercial viability of extracting mineral resources. These capitalised expenditures are transferred to oil and
ter
gas producing assets when the commercial production of the asset starts. Producing assets are depreciated
un
using the unit of production method over the commercially recoverable reserves.
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2.7 INTANGIBLE ASSETS
9P
Land concession
1:2
Land concession intangible assets are related to the refineries. They are initially measured at fair value and then
1:1
amortised using the straight‑line method over their estimated useful life.
22
Other intangible assets
/20
Other intangible assets are stated at cost, less accumulated amortisation and accumulated impairment losses.
/26
They are amortised over the term of their useful life, generally not exceeding 3 to 5 years.
-4
2.8 IMPAIRMENT OF NON-FINANCIAL ASSETS
NG
iL
Non‑financial assets are tested for impairment whenever events or changes in circumstances indicate that
ar
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the
lam
asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair
value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped
Ca
at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the
-
cash inflows from other assets or groups of assets (cash‑generating units). Non‑financial assets that suffered
no
impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
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2.9 FINANCIAL INSTRUMENTS

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The Group classifies its financial assets in the following measurement categories:
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Those to be measured subsequently at fair value (either through other comprehensive income, or
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through profit or loss), and

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Those to be measured at amortised cost.

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The classification depends on the Group’s business model for managing the financial assets and the contractual
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terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in the
lam
statement of comprehensive income or other comprehensive income. For investments in equity instruments,
this will depend on whether the Group has made an irrevocable election at the time of initial recognition to
ca
account for the equity investment at fair value through other comprehensive income. The Group reclassifies
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debt investments when and only when its business model for managing those assets changes.
ar
lam
Regular way purchases and sales of financial assets are recognised on trade date, the date on which the Group
ca
commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows
s-
from the financial assets have expired or have been transferred and the group has transferred substantially all
the risks and rewards of ownership.
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pa
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset
ter
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the
un
financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in
co
the statement of comprehensive income as incurred.

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Subsequent measurement of debt instruments depends on the Groups business model for managing the asset
9P
and the cash flow characteristics of the asset. There are three measurement categories into which the Group
classifies its financial assets:
1:2
1:1
Amortised cost: the Group classifies its financial assets as at amortised cost only if both of the following
criteria are met:
22
– The asset is held within a business model with the objective of collecting the contractual cash flows; and
/20
– The contractual terms give rise on specified dates to cash flows that are solely payments of principal
/26
and interest on the principal outstanding. Financial assets at amortised cost include trade and other
-4
receivables, and other financial assets that are held with the objective of collecting contractual cash
flows. After initial measurement at fair value, the financial assets are measured at amortised cost using
NG
the effective interest rate method, less impairment.
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Fair value through other comprehensive income: financial assets that are held for collection of contractual
lam
cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments
of principal and interest, are measured at fair value through other comprehensive income. Movements
Ca
in the carrying amount are taken through other comprehensive income, except for the recognition of
-
impairment losses, interest revenue and foreign exchange gains and losses which are recognised in the
no
statement of comprehensive income. When the financial asset is derecognised, the cumulative gain or
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loss previously recognised in other comprehensive income is reclassified from equity to the statement
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of comprehensive income and recognised in other operating income or expenses. Interest income from
these financial assets is included in finance income using the effective interest rate method. Where the
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Group has elected to present fair value gains and losses on equity investments in other comprehensive
nd
income, there is no subsequent reclassification of fair value gains and losses to the statement of
-A
comprehensive income following the derecognition of the investment.

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Fair value through profit of loss: Assets that do not meet the criteria for amortised cost or fair value
g
through other comprehensive income are measured at fair value through profit or loss. A gain or loss on
i-ln
a debt investment that is subsequently measured at fair value through profit or loss is recognised in the
ar
statement of comprehensive income in the period in which it arises.

lam
Impairment of financial assets

ca
The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments
i@
carried at amortised cost and fair value through other comprehensive income. The impairment methodology
ar
applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group
lam
applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised
ca
from initial recognition of the receivables.

s-
Derivative financial instruments

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Certain contracts to purchase and sell commodities are required to be accounted as if the contracts were
pa
financial instruments. These are contracts where the Group has a practice of taking delivery of the underlying
ter
and selling it within a short period after delivery for the purpose of generating a profit. Such contracts are
un
recognised at fair value based on market prices including premiums or discounts for location and quality with
co
gains and losses recognised in the statement of comprehensive income.

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The Group uses derivative financial instruments to hedge its exposure to the commodity price as well as to the
9P
foreign exchange exposure. The Group does not apply hedge accounting principles to derivative instruments
that economically hedge the commodity price risks arising from trading activities. Changes in the fair value of
1:2
such derivatives are hence recognised as gains and losses on derivative instruments and are reported on a net
1:1
basis within ‘cost of sales’.
22
Derivatives are classified as financial assets or financial liabilities at fair value through profit or loss and are
/20
measured at fair value, and changes therein are recognised in the statement of comprehensive income. They
/26
are classified as a non‑current asset or liability if the remaining maturity of the item is more than 12 months and,
-4
as a current asset or liability, if the maturity of the item is less than 12 months.
NG
Derivative financial instruments are recognised initially and measured subsequently at fair value; attributable
iL
transaction costs are recognised in comprehensive income when incurred. Fair values of derivatives are
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determined on the basis of market prices. The fair value of financial instruments that are not traded in an
lam
active market (for example, over‑the‑counter derivatives) is determined by using valuation techniques. These
valuation techniques maximise the use of observable market data where it is available and rely as little as
Ca
possible on entity‑specific estimates. Gain or loss on remeasurement to fair value is recognised immediately in
-
the statement of comprehensive income.

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2.10 OFFSETTING FINANCIAL INSTRUMENTS

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Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
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enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise
nd
the asset and settle the liability simultaneously.

-A
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2.11 INVENTORIES
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Trading inventories are measured at fair value less costs to sell. The fair value of inventories is determined based
i-ln
on market prices including premiums or discounts for location and quality. Costs to sell are estimated depending
ar
on specific contractual conditions, location of the buyer, historical experience and present assessments of
lam
costs related to similar transactions. Changes in fair value less costs to sell are recognised in the statement of
comprehensive income in the period of the change within ‘cost of sales’.
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2.12 TRADE RECEIVABLES

ar
lam
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary
ca
course of business. If collection is expected in one year or less they are classified as current assets. If not, they
are presented as non‑current assets.
s-
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Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
pa
effective interest method, less provision for impairment.

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MARGIN ACCOUNTS WITH BROKERS 2.13
9P
Margin accounts with brokers represent either cash deposited to cover potential obligations of the Group in
1:2
respect of derivatives, or cash received to cover potential obligations of the brokers towards the Group in
1:1
respect of derivatives, and are included in receivables, or trade and other payables respectively.
22
CASH AND CASH EQUIVALENTS 2.14
/20
/26
In the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at
-4
call with banks, other short‑term highly liquid investments with original maturities of three months or less. In the
consolidated balance sheet, bank overdrafts are shown within borrowings in current liabilities.
NG
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SHARE CAPITAL 2.15
ar
lam
Ordinary shares are classified as equity. On each issue of shares, the difference between the par value of the
shares and the paid‑in amount is recognised as share premium.
- Ca
BORROWINGS 2.16
no
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Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
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measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
sS
amount is recognised in the statement of comprehensive income over the period of the borrowings using the
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effective interest method.

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General and specific borrowing costs directly attributable to the acquisition, construction or production of
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qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their
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intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready
g
for their intended use or sale.

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All other borrowing costs are recognised in the statement of comprehensive income in the period in which they
lam
are incurred.
ca
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2.17 TRADE PAYABLES
9P
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
1:2
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year
1:1
or less. If not, they are presented as non‑current liabilities.
22
Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
/20
interest method.
/26
-4
2.18 CURRENT AND DEFERRED INCOME TAX
NG
The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based
iL
on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities
ar
attributable to temporary differences and to unused tax losses.
lam
Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items
Ca
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
-
comprehensive income or directly in equity respectively.

no
ra
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
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reporting date in the countries where the Company and its subsidiaries operate and generate taxable income.
sS
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
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tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
nd
expected to be paid to the tax authorities.

-A
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Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax
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bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
g
the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a
i-ln
transaction other than a business combination that at the time of the transaction affects neither accounting nor
ar
taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or
lam
substantially enacted by the reporting date and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
ca
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Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be
ar
available against which the temporary differences can be utilised. Deferred income tax is provided on temporary
lam
differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the
ca
temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse
in the foreseeable future.
s-
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Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
pa
assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income
ter
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where
un
there is an intention to settle the balances on a net basis.

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M
EMPLOYEE BENEFITS 2.19
9P
Short-term benefits
1:2
Short‑term employee benefit obligations are measured on an undiscounted basis and are expensed as the
1:1
related service is provided. The Group recognises a liability and an expense for bonuses and profit‑sharing,
where contractually obliged or where there is a past practice that has created a constructive obligation.
22
/20
Share‑based payments
/26
Senior employees of the Group participate in equity compensation plans which are equity‑settled. The fair value
-4
of all equity compensation awards granted to employees is estimated at the grant date and recorded as an
expense on a straight‑line basis over the period the awards are expected to vest. The expense is charged to
NG
the appropriate statement of comprehensive income heading within the operating results.
iL
ar
Pension obligations
lam
The Group has defined benefit plans. Typically defined benefit plans define an amount of pension benefit that
an employee will receive on retirement, usually dependent on one or more factors such as age, years of service
Ca
and compensation.
-
no
The liability recognised in the consolidated balance sheet in respect of the defined benefit pension plans is the
ra
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.
er
The obligation is calculated annually by independent actuaries using the projected unit credit method. The
sS
present value of the defined benefit obligation is determined by discounting the estimated future cash outflows
re
using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits
nd
will be paid and that have terms to maturity approximating to the terms of the related pension obligations.
-A
m
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
.co
charged or credited to equity in other comprehensive income in the period in which they arise.
g
i-ln
Past‑service costs are recognised immediately in the statement of comprehensive income.

ar
lam
PROVISIONS 2.20
ca
A provision is recognised in the consolidated balance sheet when the Group has a present legal or constructive
i@
obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the
ar
obligation; and the amount has been reliably estimated. Provisions are measured at the present value of the
lam
expected expenditure at a pre‑tax rate that reflects current market assessments of the time value of money and,
ca
where appropriate, the risks specific to the obligation.

s-
rtie
CONTINGENT LIABILITIES 2.21

pa
Possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or
ter
non‑occurrence of one or more uncertain future events not wholly within the control of the Group are disclosed
un
in the notes as contingent liabilities, unless the outflow of resources is probable and the amount can be reliably
co
measured where the liability is recognised in the consolidated balance sheet.

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2. 1
. 24
90
-1
M
2.22 REVENUE AND EXPENSES
9P
Goods and shipping income
1:2
Revenue is recognised when the performance obligations have been satisfied, which is once control of the
1:1
goods or services has transferred from Gunvor to the buyer. Revenue is measured based on consideration
specified in the contract with a customer and excludes amounts collected on behalf of third parties. The
22
same recognition and presentation principles apply to revenues arising from physical settlement of forward sale
/20
contracts that do not meet the own use exemption. Revenue related to the sale of goods is recognised when
/26
the product is delivered to the destination specified by the customer, which is typically the vessel on which it is
-4
shipped, the destination port or the customer’s premises and the buyer has gained control through their ability
to direct the use of and obtain substantially all the benefits from the asset.
NG
iL
For goods sold where the sales price is contractually determined on a future quotation, revenue is recognised on
ar
a provisional basis at the date of sale; adjustments to the sales price subsequently occurs based on movements
lam
in quoted market or contractual prices up to the date of final pricing. The period between provisional and final
pricing is typically of a short‑term nature. Revenue on provisionally priced sales is recognised based on the
Ca
estimated fair value of the total consideration receivable. The revenue adjustment mechanism embedded within
-
provisionally priced sales arrangements has the character of a commodity derivative which is closely related to
no
the host contract. Accordingly, the fair value of the final sales price adjustment is re‑estimated continuously and
ra
changes in fair value are recognised as an adjustment to cost of sales. In all cases, fair value is estimated by
er
reference to forward market prices.

sS
re
Revenue is derived principally from the sale of goods and in some instances the goods are sold on Cost and
nd
Freight (‘’CFR’’) or Cost, Insurance and Freight (‘’CIF’’) incoterms. When goods are sold on a CFR or CIF basis,
-A
the Group is responsible for providing these shipping and insurance services to the customer, sometimes after
m
the date at which Group has lost control of the goods.

.co
g
Revenue related to the provision of shipping and insurance related activities is recognised over time as the
i-ln
service is rendered.
ar
lam
Dividend income
Dividend income is recognised when the right to receive payment is established and is presented in the
ca
statement of comprehensive income within ‘finance income’.

i@
ar
Cost of Sales
lam
Cost of sales includes the purchase price of the product sold, costs of purchasing, storing and transporting
ca
the products and finance expenses directly related to trade transactions. It also includes the changes in the fair
value of inventories, derivatives, forward contracts and depreciation expenses from operating units.
s-
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2.23 FINANCE INCOME AND EXPENSES

pa
ter
Finance income comprises interest income on funds invested and on prepayments for products. Interest income
un
is recognised as it accrues, using the effective interest rate method.

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01
2. 1
. 24
90
-1
M
Finance expenses comprise interest expense on borrowings and foreign exchange losses. Interest expense is
9P
recognised in the statement of comprehensive income using the effective interest method.
1:2
Finance income and expenses are presented within “Net finance costs”.
1:1
LEASES 2.24
22
/20
The Group leases various oil and gas storages, vessels, land for refineries, equipments and offices.
/26
-4
Contracts may contain both lease and non‑lease components. The Group has elected not to separate lease
and non‑lease components and instead accounts for these as a single lease component.
NG
iL
Leases are recognised as a right‑of‑use asset and a corresponding liability at the date at which the leased asset
ar
is available for use by the Group.
lam
Assets and liabilities arising from a lease are initially measured at the net present value of future lease payments.
Ca
Lease payments to be made under reasonably certain extension options are also included in the measurement
-
of the liability. The lease payments are discounted using the Group’s incremental borrowing rate to obtain
no
an asset of similar value to the right‑of‑use asset in a similar economic environment with similar terms. The
ra
incremental borrowing rates were derived from yields of corporate bonds, adjusted for currencies and country
er
specific risks.
sS
re
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which
nd
are not included in the lease liability until they take effect. When adjustments to lease payments based on an
-A
index or rate take effect, the lease liability is reassessed and adjusted against the right‑of‑use asset.
m
.co
Lease payments are allocated between principal and finance cost. The finance cost is charged to the statement
g
of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the
i-ln
remaining balance of the liability for each period.

ar
lam
Right‑of‑use assets are depreciated over the lease term on a straight‑line basis.
ca
Payments associated with short‑term leases and all leases of low‑value assets are recognised on a straight‑line
i@
basis as an expense in the statement of comprehensive income. Short‑term leases are leases with a lease term
ar
of 12 months or less.
lam
ca
The lease liabilities are remeasured, with a corresponding adjustment to the related right-of-use assets, when:
s-
The lease term changes following a change in the assessment of a renewal or termination option, and
rtie
discounting the revised lease payments using a revised discount rate; or,
pa
The lease payments change due to changes in an index or rate, and discounting the revised lease
ter
payments using an unchanged discount rate.

un
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2. 1
. 24
90
-1
M
2.25 DIVIDENDS
9P
Interim dividends are recognised in equity in the year in which they are declared. Final dividend distribution to
1:2
the Group’s shareholders is recognised in the Company’s financial statements in the year in which they are
1:1
approved by the Company’s shareholders.
22
/20
03 USE OF ACCOUNTING ESTIMATES AND JUDGMENTS
/26
-4
The preparation of consolidated financial statements in conformity with IFRS requires management to make
NG
judgments, estimates and assumptions that affect the application of accounting policies and the reported
iL
amounts of assets and liabilities, income and expenses. The areas involving a higher degree of judgment or
ar
complexity, or areas where assumptions and estimates are significant to the consolidated financial statements,
lam
are summarised below:
Ca
Valuation of open physical contracts
-
Management estimates the premiums and discounts used for valuing open physical contracts based on
no
observable market data. LNG market still being in a growing stage, long‑term contracts require judgment for
ra
their fair valuation (note 24). Some natural gas arrangements are valued using complex models, which maximise
er
the use of observable market date (note 24).

sS
re
Impairment
nd
Management reviews for impairment investments in associates and joint ventures, other financial assets,
-A
property, plant and equipment, intangible assets and right‑of‑use assets whenever events or changes in
m
circumstances indicate that the carrying amount may not be fully recoverable. If an asset’s recoverable amount
.co
is less than the asset’s carrying amount, an impairment loss is recognised in the consolidated statement of
g
comprehensive income. Future cash flow estimates, which are used to calculate the asset’s fair value, are
i-ln
discounted using asset specific discount rates and are based on expectations about future operations primarily
ar
comprising estimates about production and sales volumes, commodity prices, operating costs and capital
lam
expenditures. Changes in such estimates could impact recoverable values of these assets (note 21).
ca
Environmental restoration
i@
A provision for future restoration, rehabilitation and decommissioning costs requires estimates and assumptions
ar
to be made around the relevant regulatory framework, the magnitude of the possible disturbance and the
lam
timing, extent and costs of the required closure and rehabilitation activities. Most of these rehabilitation and
ca
decommissioning events are expected to take place many years in the future and the currently estimated
requirements and costs that will have to be met when the restoration event occurs are inherently uncertain and
s-
could materially change over time.

rtie
pa
ter
un
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28
Gu
Gu
nv
or
cre
dit
co
un
ter
pa
rtie
s-
ca
lam
ar
i@
ca
lam
ar
i-ln
g
.co
m
-A
nd
re
sS
er
ra
no
- Ca
lam
ar
iL
NG
-4
/26
/20
22
1:1
1:2
9P
M
-1
90
. 24
2. 1
01
.18
.18
01
2. 1
. 24
04 PROPERTY, PLANT AND EQUIPMENT
90
-1
Land and Machinery and Oil and Gas Work in Office
M
Note constructions equipment properties progress equipment Total
9P
1:2
Cost
1:1
Balance at 1 January 2019 254,059 753,016 107,358 138,279 31,182 1,283,894
22
Additions - 5,023 14,926 138,103 75 158,127
Disposals (618) (48,250) - (9,665) (66) (58,599)
/20
Business combination 2,404 7,731 - - - 10,135
/26
Impairment 21 (15) - - (7,912) - (7,927)
-4
Transfers 6 90,871 51,992 - (146,494) 1,937 (1,694)
NG
Balance at 31 December 2019 346,701 769,512 122,284 112,311 33,128 1,383,936
iL
Additions - 959 1,243 210,892 634 213,728
ar
Disposals (846)
(25,361) - - (1,089)
(27,296)
lam
Impairment 21 - - -
(41,470) -
(41,470)
Transfers 6 47,729 176,938
Ca
-
- (218,642) 1,174 7,199
Balance at 31 December 2020 393,584 922,048 123,527 63,091 33,847 1,536,097

no
ra
er
Depreciation
sS
Balance at 1 January 2019 52,675 391,015 56,700 - 18,457 518,847

re
Charge for the year 23,177 77,525 11,996 - 3,767 116,465

nd
Disposals (601)
(44,231) - - (66)
(44,898)
-A
Impairment 21 24,200 54,798 - - 1,002 80,000

m
.co
Balance at 31 December 2019 99,451 479,107 68,696 - 23,160 670,414

g
Charge for the year 25,272 58,347 16,617 - 3,199 103,435

i-ln
Disposals (641)
(22,240) - - (1,134)
(24,015)
ar
Impairment 21 119,958 156,762 - - 994 277,714

lam
Transfers 6 10,686 (3,211) - - 357 7,832

ca
i@
Balance at 31 December 2020 254,726 668,765 85,313 - 26,576 1,035,380

ar
Net book amount

lam
Balance at 31 December 2020 138,858 253,283 38,214 63,091 7,271 500,717

ca
Balance at 31 December 2019 247,250 290,405 53,588 112,311 9,968 713,522

s-
rtie
Depreciation expense of USD 98,509 (2019: USD 111,133) has been charged in ‘cost of sales’ and USD 4,881
pa
(2019: USD 5,332) in ‘other operating expenses’.

ter
un
At reporting date, the Group has contracted capital expenditure amounting to USD 14,836 (2019: USD 57,106).
co
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c
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30
Gu
.18
01
2. 1
. 24
RIGHT-OF-USE ASSETS 05
90
-1
Land and Machinery and Office
M
Note constructions equipment Vessels equipment Total
9P
1:2
Recognition on initial application
of IFRS 16 at 1 January 2019 135,965 271,399 595,078 830 1,003,272
1:1
Additions 19,373 55,459 620,564 7 695,403
22
Depreciation charge for the year (12,293) (108,384) (275,483) (309) (396,469)
Disposals - (97) - - (97)
/20
/26
Balance at 31 December 2019 143,045 218,377 940,159 528 1,302,109
-4
Additions 9,737 142,322 771,069 1,605 924,733
Depreciation charge for the year (13,353) (146,984) (448,586) (665) (609,588)
NG
Disposals - - (88,294) (98) (88,392)
iL
Impairment 21 - - (45,543) - (45,543)
ar
lam
Balance at 31 December 2020 139,429 213,715 1,128,805 1,370 1,483,319
Ca
-
Other lease disclosures:

no
ra
er
2020 2019
sS
Expenses recognised during the period:

re
Interests 56,669 51,376

nd
Short-term leases 563,624

342,469
-A
Low-value assets 46 42
m
Variable lease payments not included in lease liabilities 53,708 33,732

.co
Cash outflow for leases - repayments and interests 659,452 330,173

g
i-ln
ar
lam
ca
i@
ar
lam
ca
s-
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pa
ter
un
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2. 1
. 24
06 INTANGIBLE ASSETS
90
-1
Computer Land Licences and
M
Note software concession brand Total
9P
1:2
Cost
1:1
Balance at 1 January 2019 16,695 25,702 3,141 45,538
22
Additions 85 - 84 169
Disposals (156) - - (156)
/20
Transfers 4 1,603 - 91 1,694
/26
-4
Balance at 31 December 2019 18,227 25,702 3,316 47,245
Additions 336 - - 336
NG
Disposals (10) - - (10)
iL
Transfers 4 548 - 85 633
ar
lam
Ca
Amortisation
-
no
Balance at 1 January 2019 12,723 4,902 2,119 19,744

ra
er
Charge for the year 1,475 735 179 2,389

sS
Disposals (156) - - (156)

re

nd
Charge for the year 1,412 735 147 2,294

-A
Disposals (10) - - (10)

m
Impairment 21 1,039 19,330 - 20,369

.co
g

i-ln
ar
Net book amount

lam
Balance at 31 December 2020 2,618 - 956 3,574

ca

i@
ar
Amortisation of USD 1,785 (2019: USD 1,819) has been charged in ‘cost of sales’ and USD 509 (2019: USD
lam
570) in ‘other operating expenses’.

ca
s-
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2. 1
. 24
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 07
90
-1
2019
M
Note 2020
Restated (4)
9P

1:2
Balance at 1 January 904,343 928,843
Additions (1) (3) (7) 23,784 22,210
1:1
Disposal (2) (5) (6) (20,828) (370)
22
Dividends (123,599)
(109,851)
/20
Share of results 82,111 62,253
Impairment 21
(33,400)
(35,509)
/26
Transfer from Group entities (8) - 7,670
-4
Share of results in other comprehensive income, net 14 (44,070) 29,097
NG
Balance at 31 December 788,341 904,343
iL
ar
Of which:
lam
Associates 741,024
848,975
Joint ventures 47,317 55,368
- Ca
no
During 2020 the Group’s main investing transactions were as follows:

ra
er
sS
(1) On 11 March 2020, acquired 50% of California 19 Inc. and California 20 Inc., Marshall Islands ship
owner companies.
re
nd
(2) On 3 April 2020, disposed entirely its 50% shareholding in Aria Petroleum (CY) Limited, IAT Inter Asia
-A
Trade Ltd and Yurovesk Holdings Ltd.

m
.co
(3) On 20 July 2020, acquired 24% of E4C Shipping Pte. Ltd, a Singaporean ship construction company.
g

i-ln
(4) In December 2020, investments in JSC Ust‑Luga Oil (“ULO’’) and Sandmark Operations Limited were
ar
reclassified from assets held for sale to investment in associates.

lam
(5) On 30 December 2020, Mintley (Caspian) Limited was liquidated.

ca
i@
(6) During the year, some of the ship owner companies repaid equity contributions back to their
ar
shareholders.
lam
ca
During 2019 the Group’s main investing transactions were as follows:

s-
(7) Further invested in ClearOcean Tankers Limited and Dealhill Limited.

rtie
pa
(8) On 26 June 2019, disposed 50% of its wholly owned subsidiary Dealhill Limited. As of this date the
ter
remaining 50% investment in this entity is classified as a joint venture.

un
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2. 1
. 24
07 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (CONTINUED)
90
-1
Country of % Interest % Interest held
M
incorporation held 2020 2019 Restated
9P
1:2
Associates
ClearOcean Tankers Limited Cyprus 33.33 33.33
1:1
E4C Shipping Pte. Ltd. Singapore 24 ‑
22
Geneva Tankers AS Norway 37 37
Global Mining Holding Company, LLC USA 33.33 33.33
/20
JSC Ust‑Luga Oil Russia 26 26
/26
Krasnoyarsk Processing Company LLC Russia 49.5 49.5
-4
Mintley (Caspian) Limited Cyprus ‑ 30
Monte Alegre Sociedad Anonima Paraguay 40 40
NG
Nordic Handysize III AS Norway 35 35
iL
Nordic LR1 AS Norway 35.5 35.5
ar
PA Resources AB Sweden 29.73 29.73
lam
PT Oiltanking Karimun Indonesia 35 35
Sandmark Operations Limited
Ca Cyprus 26 26
Ust‑Luga Logistics LLC Russia 26 26
-
Ust‑Luga Marine Products Limited Cyprus 35 35

no
ra
er
Joint ventures
sS
Aipec Oil and Gas Limited Nigeria 50 50

Aipec Properties Limited Nigeria 50 50
re
Aria Petroleum (Cy) Limited Cyprus ‑ 50

nd
City of Athens Pte. Ltd. Singapore 50 50

-A
ClearSea Maritime Inc. Liberia 50 50

m
Dealhill Limited Cyprus 50 50

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Eco Nine Pte. Ltd. Singapore 50 50

g
IAT Inter Asia Trade Ltd Cyprus ‑ 50

i-ln
Port Union Oil Export Limited Cyprus 50 50

ar
Yurovesk Holdings Ltd Cyprus ‑ 50

lam
California 19 Inc. Marshall Islands 50 ‑

ca
California 20 Inc. Marshall Islands 50 ‑

i@
ar
As at 31 December 2020, all investments are privately owned.

lam
ca
7.1 INVESTMENT IN JSC UST-LUGA OIL

s-
ULO is the equity‑accounted investee which in the opinion of management is significant to the Group as at 31
rtie
December 2020. Its country of incorporation and registration is also its principal place of business.
pa
ter
Summarised IFRS financial information of the company for the year 2020, reflecting 100% of its relevant
un
figures is set out below.

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. 24
(CONTINUED) INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 07
90
-1
M
Summarised balance sheet:
9P
2020 2019
1:2
Current assets 80,987 78,123
1:1
Non‑current assets 845,339
1,076,382
22
Current liabilities
(143,692)
(17,975)
Non‑current liabilities
(113,853)
(142,117)
/20
/26
Net assets 668,781
994,413
-4
Ownership interest 26.00% 26.00%
Goodwill 427,461
427,461
NG
Carrying value 601,344
686,008
iL
ar
lam
Summarised statement of comprehensive income:
2020 2019
- Ca
Revenue 384,386
415,900
no
Profit from continuing operations 247,896 259,316

ra
er
Other comprehensive (loss) / income (170,023) 115,059

sS
Total comprehensive income 77,873

374,375
re
nd
INVESTMENT IN OTHER ASSOCIATES 7.2

-A
m
Summarised IFRS financial information reflecting 100% of the relevant figures for non‑significant associates is
.co
set out below:

g
2020
2019 Restated
i-ln
ar
Profit / (loss) from continuing operations 27,284 (11,187)

lam
Other comprehensive loss - (2,038)

ca
Total comprehensive profit / (loss) 27,284 (13,225)

i@
ar
INVESTMENT IN JOINT VENTURES 7.3

lam
ca
Financial information reflecting 100% of the relevant figures for non‑significant joint ventures that are accounted
s-
for using the equity method is set out below:

rtie
2020
2019 Restated
Profit / (loss) from continuing operations 16,744 (4,674)

pa
Total comprehensive profit / (loss) 16,744 (4,674)

ter
un
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. 24
08 OTHER FINANCIAL ASSETS
90
-1
M
2020 2019
9P
Listed equity securities 2,101 3,600
1:2
Listed debt instruments 195 192
1:1
Unlisted equity securities 130,304
131,511
22
Unlisted debt instruments 1,898 -
Total other financial assets 134,498 135,303
/20
/26
Less non‑current other financial assets (28,004) (31,511)
-4
Total current other financial assets 106,494 103,792
NG
iL
The fair value of unlisted securities is based on discounted cash flows, market interest rates and risk premiums
ar
specific to the unlisted securities, and recent transactions and is within level 3 of the fair value hierarchy.
lam
The fair value of listed securities and debt instruments is determined using current bid prices in an active market
Ca
(note 24). Cash flows associated with financial assets at fair value through profit or loss are presented within
-
‘’investing activities’’ in the consolidated statement of cash flows.

no
ra
The Group’s exposure to commodity price, credit, liquidity, currency and interest rate risks related to financial
er
sS
assets and liabilities is disclosed in note 24.

re
nd
09 DEFERRED INCOME TAX

-A
m
.co
The movements in deferred income tax assets during the year are as follows:
g
Provisions and
i-ln
retirement benefit Taxable Leasing

Deferred tax assets obligations goodwill and other Total
ar
lam
Balance at 1 January 2019 20,797 5,238 779 26,814

ca
Credited / (charged) to comprehensive income 905 (673) 4,984 5,216

i@
Credited to other comprehensive income 4,121 - - 4,121

ar

lam
Credited / (charged) to comprehensive income 3,573 (225) 1,897 5,245

ca
Transfer to equity 496 - - 496

s-
rtie

pa
ter
The Group did not recognise deferred income tax assets of USD 288,621 (2019: USD 273,633) in respect of losses
un
of USD 1,210,402 (2019: USD 1,170,978) that can be carried forward against future taxable income. Sufficient
co
future profitability in the countries where these losses were originated is unlikely. The majority of these losses expire
dit
between 2022 and 2023, and tax losses carried forward of USD 202,447 (2019: USD 1,254) have no expiry date.
re
c
The majority of the reported deferred taxes will be settled after 12 months from the balance sheet date.
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36
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01
2. 1
. 24
(CONTINUED) DEFERRED INCOME TAX 09
90
-1
M
The movements in deferred income tax liabilities during the year are as follows:
9P
Property, plant Inventory
1:2
Deferred tax liabilities and equipment valuation Other Total
1:1
Balance at 1 January 2019 54,662 1,009 396 56,067
22
(Credited) / charged to comprehensive income (783) 1,783 (395) 605
/20
Balance at 31 December 2019 53,879 2,792 1 56,672
/26
Charged to comprehensive income 1,006 1,200 2,847 5,053
-4
NG
iL
ar
DERIVATIVE FINANCIAL INSTRUMENTS 10
lam
Ca
2020 2019 Restated
Assets Liabilities Assets Liabilities
-
no
Exchange listed futures, options and swaps 251,724 410,083 201,335 187,251
ra
er
Over‑the‑counter swaps and options 6,817 12,004 9,603 8,920

sS
Contracts to purchase or sell physical commodities 3,146,906 3,058,834 2,851,681 2,923,636

Current portion 3,405,447 3,480,921 3,062,619 3,119,807
re

nd
Exchange listed futures, options and swaps 8,164 10,640 1,398 3,753
-A
Contracts to purchase or sell physical commodities 403,130 322,189 292,450 379,109

m
Non‑current portion 411,294 332,829 293,848 382,862

.co
g
Total 3,816,741 3,813,750 3,356,467 3,502,669

i-ln
ar
lam
Futures, options and swaps consist of commodity derivatives and foreign exchange derivatives.
ca
i@

ar
lam
ca
s-
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. 24
11 INVENTORIES
90
-1
M
2020
2019 Restated
9P
Product inventories
4,721,751
3,877,518
1:2
Supplies 83,158 66,607
1:1
22
Total inventories
4,804,909
3,944,125
/20
/26
Product inventories include stocks in oil and gas terminals, refineries, pipelines and floating storages. At 31
-4
December 2020 inventories were carried at fair value less costs to sell except for supplies i.e. bunker fuel
inventory on tankers for own consumption and technical inventories, which comprise materials and spare parts,
NG
which were carried at cost.
iL
ar
With the exception mentioned above, inventories are measured at fair value and are included in level 2 on fair
lam
value hierarchy. The fair value is determined based on market prices including premiums or discounts for location
and quality adjustments. If a listed market price is not available, then fair value of product inventories is determined
Ca
based on a benchmark which reflects an estimated market selling price in the ordinary course of business.
-
no
Details of pledges on inventories are disclosed in note 18.

ra
er
sS
12 RECEIVABLES
re
nd
-A
2020
2019 Restated
m
.co
Trade receivables
2,756,221
3,596,327
g
Other receivables 354,302

347,061
i-ln
Tax receivables 29,638 21,849

ar
Prepayments to suppliers 281,033 268,694

lam
Margin accounts with brokers 805,329 1,023,873

ca
Total receivables
4,226,523
5,257,804
i@
Less non‑current receivables (47,879) (91,102)

ar
Total current receivables 4,178,644 5,166,702

lam
ca
s-
The carrying amounts of the receivables approximate their fair values.

rtie
Related parties receivables are disclosed in note 27.

pa
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(CONTINUED) RECEIVABLES 12
90
-1
M
Movements on the Group’s loss allowance for trade receivables are as follows:
9P
1:2
2020
2019 Restated
1:1
At 1 January 31,219 19,032
22
Loss allowance 34,810 22,219
Receivables written off (33,697) (9,824)
/20
Unused amounts reversed (4,867) (208)
/26
-4
At 31 December 27,465 31,219
NG
iL
ar
SHARE CAPITAL 13
lam
Ca
The movements in the number of ordinary shares are as follows:
-
no
ra
Class A shares Class D shares Class E shares Total

er
sS
Authorised 5,190,481 1,850,940 1,958,579 9,000,000

re
Issued and fully paid

nd
-A
Balance at 1 January 2019 1,856,128 515,889 78,689 2,450,706

m
Issue of shares 1 19,114 - 19,115

.co
Conversion 137,194 (113,892) (23,302) -

g
Cancellation (85,383) - - (85,383)

i-ln
ar
Balance at 31 December 2019 1,907,940 421,111 55,387 2,384,438

lam
Issue of shares 2 - - 2
ca
Conversion 190,481 (149,060) (41,421) -

i@
Cancellation (205,792) - -
(205,792)
ar
Balance at 31 December 2020 1,892,631 272,051 13,966 2,178,648

lam
ca
s-
At 31 December 2020 the share capital of the Company consists of Class A, Class D and Class E, all voting
shares of nominal value of USD 1.00 each as shown in the table above. Dividends may be paid only to holders
rtie
of Class A shares or to all holders of Class A, Class D and Class E shares, pari passu in proportion to the
pa
amounts paid or credited as paid on the nominal value of each share.

ter
un
Dividends
co
During the year the Company declared a dividend of USD 420 (2019: USD 750) to holders of Class A shares,
dit
and USD 83,450 (2019: USD 65,000) to all holders of Class A, Class D and Class E shares at USD 37.50 per
re
share (2019: USD 27.26 per share).

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. 24
14 OTHER RESERVES
90
-1
Remeasurement
of post-
M
employment
9P
Fair value other benefit
Note financial assets obligations Translation Total
1:2
Balance at 1 January 2019 (43) 1,880 (1,036) 801
1:1
Revaluation of other financial assets 30 - - 30
22
Remeasurement of post‑employment benefits 16 - (15,308) - (15,308)
Remeasurement pension ‑ Investments 7 - 23 - 23
/20
Currency translation differences ‑ Investments 7 - - 29,074 29,074
/26
-4
Balance at 31 December 2019 (restated) (13) (13,405) 28,038 14,620
Revaluation of other financial assets 304 - - 304
NG
Remeasurement of post‑employment benefits 16 - (2,178) - (2,178)
iL
Currency translation differences ‑ Investments 7 - (44,070) (44,070)
ar
lam
Balance at 31 December 2020 291 (15,583) (16,032) (31,324)
Ca-
15 TRADE AND OTHER PAYABLES

no
ra
er
sS
2020
2019 Restated
re
Trade payables
3,090,109
4,265,768
nd
Other payables 453,668

462,089
-A
Tax payables 72,681 19,101

m
Prepayments from customers 80,686 213,502

.co
Margin accounts with brokers 94,985 263,298

g
i-ln
Total trade and other payables 3,792,129 5,223,758

ar
Less non‑current payables (40,233)

(46,137)
lam
ca
Total current trade and other payables 3,751,896 5,177,621

i@
ar
The carrying amounts of trade and other payables approximate their fair values. The Group’s exposure to
lam
commodity price, credit, liquidity, currency and interest rate risks related to financial assets and liabilities is
ca
disclosed in note 24.

s-
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. 24
RETIREMENT BENEFIT OBLIGATIONS AND PERSONNEL COSTS 16
90
-1
M
The Group operates defined benefit post‑employment schemes in Switzerland (CH), Germany (D) and Belgium
9P
(B). These schemes provide retirement, death and disability benefits to employees covered by them. The
majority of plans are externally funded.
1:2
1:1
The Group operates in Switzerland three different defined benefit pension plans for three different companies.
They all offer the same pension benefits. This pension scheme is managed in a multi‑employer plan, whose
22
risks are fully reinsured by an insurance company. The schemes cover substantially all of the employees of the
/20
Group in Switzerland and provide retirement, death and disability benefits for the employees according to the
/26
Swiss pension legislation.
-4
The Group operates three defined benefit pension plans in Belgium. The first pension plan insures the payment
NG
of indexed annuities to labourers, the second pension plan insures lump sum capitals to management and the
iL
third insures lump sum capitals to management members. The three pension schemes are fully reinsured by an
ar
insurance company. The schemes cover substantially all of the personnel of the Group in Belgium and provide
lam
retirement and death benefits for the employees according to the Belgian pension legislation. The Company
also pays jubilee premiums to workers after 25 years of service, and pays annuities to pre‑pensioned workers.
Ca
Following the mothballing of the Belgian refinery and its subsequent restructuring, a curtailment charge was
-
recognised in 2020.
no
ra
The Group operates a defined benefit pension plan in Germany. Employees who joined before 31 March 2012
er
sS
are entitled to receive benefits under this plan. This pension scheme provides retirement, death and disability
benefits for the employees covered by this plan based on the service rendered after 31 March 2012. The
re
pension plan in Germany is unfunded.

nd
-A
The amounts recognised in the balance sheet are determined as follows:

m
.co
2020 2019
g
i-ln
Present value of funded obligations 111,014 92,679

ar
Fair value of plan assets (71,677) (56,375)

lam
Deficit of funded plans 39,337 36,304

ca
Present value of unfunded obligations 45,233 38,025

i@
Total deficit of defined benefit pension plans 84,570 74,329

ar
Liability in the balance sheet 84,570 74,329

lam
ca
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16 RETIREMENT BENEFIT OBLIGATIONS AND PERSONNEL COSTS (CONTINUED)
90
-1
M
The movements in the defined benefit obligation over the year are as follows:
9P
Present value Fair value of
1:2
of obligation plan assets Total
1:1
Balance at 1 January 2019 98,286 (47,091) 51,195
22
Current service cost 8,089 - 8,089
Interest expense / (income) 1,652 (728) 924
/20
/26
Total recognised in comprehensive income 9,741 (728) 9,013
-4
Remeasurements:
NG
Return on plan assets excluding amounts included in interest income - 495 495
iL
Loss / (gain) from change in financial assumptions 18,581 (1,320) 17,261
ar
Experience gains 1,673 - 1,673
lam
Total recognised in other comprehensive income
Ca 20,254 (825) 19,429
Exchange differences 68 (486) (418)
-
no
Contributions:
ra
er
Employers - (4,809) (4,809)

sS
Plan participants 8,971 (8,971) -

re
Payments from plans:

nd
Benefit payments (5,921) 5,840 (81)

-A
Net insurance premiums and expenses (695) 695 -

m
.co
Balance at 31 December 2019 130,704 (56,375) 74,329

g
i-ln
ar
lam
ca
i@
ar
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. 24
(CONTINUED) RETIREMENT BENEFIT OBLIGATIONS AND PERSONNEL COSTS 16
90
-1
Present value Fair value of
M
of obligation plan assets Total
9P
1:2
Current service cost 10,156 - 10,156
1:1
Interest expense / (income) 1,165 (395) 770
22
Total recognised in comprehensive income 11,321 (395) 10,926
/20
/26
Remeasurements:
-4
Return on plan assets excluding amounts included in interest income - (251) (251)
Loss / (gain) from change in financial assumptions (2,134) (1,186) (3,320)
NG
Experience gains 5,320 926 6,246
iL
ar
Total recognised in other comprehensive income 3,186 (511) 2,675
lam
Exchange differences 12,794 (5,857) 6,937
Ca
Contributions:
-
Employers - (6,707) (6,707)

no
Plan participants 7,684 (7,684) -

ra
er
sS
Payments from plans:

Benefit payments (5,031) 4,921 (110)
re
Net insurance premiums and expenses (931) 931 -

nd
Curtailment (3,480) - (3,480)

-A
m

.co
g
i-ln
ar
lam
ca
i@
ar
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. 24
90
-1
M
Actuarial assumptions are unbiased and mutually compatible estimates of variables that determine the ultimate
9P
cost of providing post‑employment benefits. They consist of demographic assumptions on matters such as
mortality and employee turnover, and financial assumptions on matters such as salary and benefit levels, interest
1:2
rates and return on investments. The significant actuarial assumptions were as follows:
1:1
22
2020 2019
/20
CH D B CH D B
/26
Discount rate 0.30% 0.85% 0.85% 0.40% 1.40% 1.40%
-4
Salary growth rate 1.00% 1.75% 1.75% 1.00% 2.25% 2.25%
Pension growth rate - % 1.25% 1.25% - % 1.75% 1.75%
NG
Actuarial tables LPP 2020 Heubeck MR‑3/FR‑3 LPP 2015 Heubeck MR‑3/FR‑3
iL
Gen RT 2018 G Gen RT 2018 G
ar
lam
The sensitivity of the defined benefit obligation to changes in the main assumptions is as follows (the sensitivity
Ca
percentages are weighted according to the defined benefit obligation of each country):
-
no
Impact on defined benefit obligation as at 31 December 2020

ra
Change in Increase in Decrease in

er
assumption assumption assumption

sS
Discount rate +‑ 50bp (8.58%) 10.02%

re
Salary growth rate +‑ 50bp 4.28% (3.80%)

nd
Pension growth rate +‑ 50bp 5.07% (3.63%)

-A
Life expectancy +‑ 1 year 1.85% (2.11%)

m
.co
Impact on defined benefit obligation as at 31 December 2019

Change in Increase in Decrease in
g
assumption assumption assumption

i-ln
ar
Discount rate +‑ 50bp (8.89%) 10.40%

lam
Salary growth rate +‑ 50bp 6.37% (5.51%)

ca
Pension growth rate +‑ 50bp 4.10% (1.26%)

i@
Life expectancy +‑ 1 year 1.40% (1.93%)

ar
lam
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
ca
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
s-
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same
method (present value of the defined benefit obligation calculated with the projected unit credit method at the
rtie
end of the reporting period) has been applied as when calculating the pension liability recognised within the
pa
balance sheet.
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. 24
(CONTINUED) RETIREMENT BENEFIT OBLIGATIONS AND PERSONNEL COSTS 16
90
-1
M
Plan assets are allocated as follows:
9P
1:2
2020 2019
1:1
Equity instruments 16,628 12,097
22
Debt instruments 21,068 17,334
Property 12,119 9,778
/20
Cash and cash equivalents 18,782 15,036
/26
Alternative investments 3,080 2,130
-4
Total plan assets 71,677 56,375
NG
iL
ar
All investments have been fair valued based on quoted market prices.
lam
Through its defined benefit pension plans the Group is exposed to a number of risks, the most significant of
Ca
which are detailed below:
-
no
Asset volatility
ra
The plan liabilities are calculated using a discount rate based on corporate bond yields. If plan assets
er
sS
underperform this yield, this will create a deficit. Switzerland’s plans have partially invested in equities, which
are expected to outperform corporate bonds in the long‑term while providing volatility and risk in the short‑term.
re
Germany’s plans are unfunded and therefore holds no plan assets. In Belgium, for the funded plans, the assets
nd
are managed by an insurance company and invested in funds with guaranteed interest. This return is guaranteed
-A
by this insurance company and therefore there is no asset volatility in Belgium.

m
.co
Changes in bond yields

g
A decrease in corporate bond yields will increase plan liabilities although this will be partially offset by an
i-ln
increase in the value of the plans’ bond holdings.

ar
lam
Inflation risk
The majority of the plans’ benefit obligations are linked to inflation, and a higher inflation will lead to higher
ca
liabilities (although, in most cases, caps on the level of inflationary increases are in place to protect the plan
i@
against extreme inflation). The majority of the plans’ assets are either unaffected by (fixed interest bonds) or
ar
loosely correlated with (equities) inflation, meaning that an increase in inflation will also increase the deficit. In
lam
Switzerland’s plans, the payments into the pension plan are not linked to inflation, implying a less material risk.
ca
In Belgium and Germany, the payment into the pension plans are linked to inflation and are increased based on
s-
the development of the consumer price index. The expected rate of increase is based on the long-term inflation
rate assumption.
rtie
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. 24
90
-1
M
Life expectancy
9P
Switzerland’s plans obligations provide benefits for the life of the employees, so an increase in life expectancy
will result in an increase in the plans’ liabilities.
1:2
1:1
In Germany, the pension plan provides disability, death and old‑age benefits. The disability and death benefits are
projected to age 60/63, and so far only few years of service have been rendered. An increase in life expectancy
22
will result in a decrease in the plan’s liability. Since death and disability benefits are more accrued than old‑age
/20
benefits and since employees are entitled to a full service death or disability pension, the effect of the increase
/26
in life expectancy is overcompensated by the effect of the decreased in death and disability probabilities.
-4
In Belgium, one pension plan provides the payment of indexed annuities and two pension plans provide the
NG
payment of lump sums. An increase in life expectancy will result in a decrease in the plan’s liability since fewer
iL
lump sum payments will be provided in the two pension plans.
ar
lam
Assets-liability matching strategy
In Switzerland (fully‑funded plans), the reinsurance company has to ensure that the investment positions are
Ca
managed within an asset‑liability matching (“ALM’’) framework that has been developed to achieve long‑term
-
investments that are in line with the obligations under the pension schemes.
no
ra
The weighted average duration of the defined benefit obligation is 23.03 years (2019: 23.6 years).
er
sS
Personnel expenses
re
nd
2020
2019 Restated
-A
m
Salaries 478,365
481,291
.co
Social security costs 67,762 34,988

g
Pension costs 13,351 13,859

i-ln
Other 43,044 4,256

ar
lam
Total personnel expenses

602,522
534,394
ca
i@
The expected contributions to post‑employment benefit plans for the year ending 31 December 2021 amounts
ar
to USD 6,802.
lam
ca
The average number of employees employed by the Group during the year is 1,671 (2019: 1,757). The average
s-
number of employees employed by joint operations during the year is 70 (2019: 69).
rtie
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. 24
PROVISIONS 17
90
-1
M
Environmental restoration 2020 2019
9P
1:2
Balance at 1 January 70,049 64,006
Recognised during the period 354 11,199
1:1
Charged to comprehensive income 13,792 (788)
22
Amounts used during the year (3,011) (4,368)
/20
Balance at 31 December 81,184 70,049
/26
-4
The amount mainly represents provisions for the expenses related to land environmental restoration at the
NG
Antwerp and Rotterdam refineries. At expiry of the land concession in 2047 and 2036 respectively, the land has
iL
to be returned back free of pollution. Assessment and estimation of impact were performed by independent
ar
environmental consultants.
lam
Ca
BORROWINGS 18
-
no
ra
er
2020 2019
sS
Revolving credit facilities 251,818

368,077
re
Other non‑current borrowings

518,448
408,682
nd
-A
Total non‑current borrowings

770,266
776,759
m
Revolving credit facilities 749,800

843,251
.co
Borrowing bases 477,206

762,099
g
Current portion of the non‑current borrowings - 21,028

i-ln
Other current bank borrowings 1,798,378 1,063,724

ar
Bank overdrafts
1,165,470
776,033
lam
ca
Total current borrowings

4,190,854
3,466,135
i@
Letters of credit and guarantees issued by banks 3,342,937 4,620,736

ar
Total used credit facilities 8,304,057 8,863,630

lam
Unused credit facilities

8,408,041
10,047,641
ca
s-
Total credit facilities available to the Group 16,712,098 18,911,271

rtie
pa
The fair value of the non‑current borrowings at 31 December 2020 is approximately USD 733,802 (2019: USD
ter
743,989) using borrowing interest rates available to the Group at year‑end to finance projects with similar
un
risk profiles. The fair value of current borrowings approximates to their carrying amount at 31 December, as
co
the impact of discounting is not significant. The fair values are based on cash flows discounted using a rate
dit
based on the market rates adjusted for risk and are within level 2 of the fair value hierarchy.
re
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. 24
18 BORROWINGS (CONTINUED)
90
-1
M
Two non‑current borrowings are pledged as at 31 December 2020. One of the long term borrowing is
9P
secured by pledges on shares of one subsidiary (2019: one) and two investments in associates (2019: two)
for a total amount of USD 250,000 (2019: USD 250,000). The other long term borrowing is secured by
1:2
pledges on shares of one subsidiary (2019: none) for a total amount of USD 185,000 (2019: none).
1:1
At 31 December 2020 the Group had transactional credit facilities, solely available at the banks’ discretion,
22
from thirty‑seven commercial banks (2019: thirty six), including multi‑bank borrowing bases with no specified
/20
maturity dates, subject to an annual renewal. Additionally, the Group had available committed revolving
/26
credit facilities (‘’RCF”) from two syndicates totalling forty five banks (2019: forty nine), covered by negative
-4
pledges covering all goods and receivables not pledged in the frame of the transactional credit facilities.
NG
The interest rate on the non‑current loans vary from USD Libor +1.5% to 3.5% (2019: USD Libor +1.5% to +3.5%).
iL
ar
The weighted average of the interest rate of all the current credit facilities as at 31 December 2020 was USD
lam
Libor +1.183% p.a. (2019: USD Libor +1.039% p.a.). Effective interest rates equal the contractual ones.
Ca
Certain borrowing arrangements require compliance with specific financial covenants mainly related to
-
working capital and financing structure.

no
ra
As part of obtaining and using the credit facilities, the trading entities of the Group have signed pledge of
er
sS
goods and receivables agreements as collateral for the banks. These borrowings were secured by:
re
nd
Note 2020 2019

-A
Inventories 11
3,837,026
3,419,915
m
Receivables 12
2,130,212
2,391,945
.co
Cash 565,282
665,260
g
i-ln
Total 6,532,520
6,477,120
ar
lam
ca

i@
ar
lam
ca
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. 24
REVENUE 19
90
-1
M
2020 2019
9P
Crude and oil products 33,176,996 55,189,947
1:2
Gas and other products 15,398,430 18,966,842
1:1
Shipping and other logistical services 1,573,695 1,145,156
22
Total revenue
50,149,121
75,301,945
/20
/26
-4
Revenue is derived principally from the sale of commodities recognised once the control of the goods has
transferred to the buyer. Revenue derived from shipping and other logistical services is recognised over time as
NG
the service is rendered.
iL
ar
lam
OTHER OPERATING INCOME 20
- Ca
no
2020 2019
ra
er
Other income (1) 44,669 11,712

sS
Gain on sale of investment (2) - 6,021

re
Total other operating income 44,669 17,733

nd
-A
m
(1) The 2020 other operating income are mainly made of US biofuel blending tax receivable and gain on the
.co
settlement and collection of prior fully written‑off receivables.

g
i-ln
(2) On 26 June 2019 the Group disposed 50% of its wholly owned subsidiary Dealhill Limited. The result of
ar
the sale transaction comprises the gain on the sale and the gain on the non‑controlling investment, which
lam
was recognised on the remeasurement of the remaining investment in Dealhill Limited at its fair value.
ca
i@
ar
lam
ca
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. 24
21 OTHER OPERATING EXPENSES
90
-1
M
Note 2020
2019 Restated
9P
Personnel expenses 548,171
483,037
1:2
Impairment of receivables 32,340 27,103
1:1
Impairment of investments (3) 7 33,400 35,509
22
Impairment of right‑of‑use assets (2) 5 45,543 -
Impairment of property, plant and equipment and intangible assets (1) 4 + 6 339,553 80,000
/20
Depreciation and amortisation 12,258 11,730
/26
General overheads and services 182,043 198,421
-4
Total other operating expenses 1,193,308 835,800
NG
iL
ar
Personnel expenses include the Group’s equity settled share-based payments, under which the participants
lam
are granted share awards with vesting periods of 2 to 3 years (2019: 2 to 3 years), subject to performance
obligations. The fair value of the share awards are determined based on the net asset value of the Group. For
Ca
the year, 110,796 share awards (2019: 126,218) will be granted with a value of USD 113,333 (2019: USD
-
108,000) and an expense of USD 93,189 (2019: USD 46,000) was recognised.
no
ra
General overheads also include fees of the Company’s auditor for this year’s statutory audits of USD 97 (2019:
er
sS
USD 88), and USD 2 for other non‑assurance services (2019: USD 98).
re
(1) Following the pressure on the European refinery sector and their margin, which was accelerated by the
nd
global pandemic, the Antwerpen and Rotterdam refineries and terminal were impaired by USD 339,553
-A
(2019: USD 80,000). The refineries’ and terminal’s recoverable amounts were based on their value in
m
use and a discount rate of 11.1% for Gunvor Petroleum Antwerpen, 7.7% for Stargate Oil Terminal
.co
Rotterdam B.V., and 9.3% for Gunvor Petroleum Rotterdam B.V. (2019: 10%)
g
i-ln
(2) The fleet of tanker vessels hired by the Group and recognised as Right‑of‑use assets were significantly
ar
impacted by the global decrease in demand for spot voyages as a result of COVID‑19 resulted in a
lam
trigger to perform an impairment test. Each vessel’s recoverable amount was based on its value in use
based on physical freight forward curves from brokers.
ca
i@
(3) During the year, a write down of USD 24,000 of the coal mine investment Global Mining Holding
ar
Company, LLC was recognised, mirroring the sustainability challenges for this commodity and its
lam
negative long‑term outlook. In addition, an impairment of USD 9,400 was recorded on the Paraguayan
ca
company Monte Alegre SA, reflecting the difficulties in the downstream business in the region. In 2019,
s-
the main investment impaired was the investment in PT Oiltanking Karimun for USD 25,509.
rtie
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. 24
FINANCE INCOME AND EXPENSE 22
90
-1
M
2020 2019
9P
1:2
Finance income
Interest income 18,862 46,288
1:1
Gains on financial assets at fair value through profit or loss 2,300 -
22
Other income 10,453 7,494
/20
Total finance income 31,615 53,782
/26
-4
Finance expense
Interest expense 197,082
297,682
NG
Loss on financial assets at fair value through profit or loss 7,220 3,818
iL
Other finance expenses 926 2,142
ar
Net foreign exchange losses 45,603 17,451
lam
Total finance expense
Ca
-
250,831 321,093
Net finance result (219,216) (267,311)

no
ra
er
sS
INCOME TAX 23
re
nd
-A
Note 2020
2019 Restated
m
.co
Current tax expense

g
Current income tax expense 53,461 10,432

i-ln
Deferred income tax 9 (192) (4,611)

ar
lam
Total current income tax expense 53,269 5,821

ca
i@
ar
lam
ca
s-
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. 24
23 INCOME TAX (CONTINUED)
90
-1
M
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the applicable
9P
tax rates as follows:
1:2
2020
2019 Restated
1:1
22
Profit before income tax from continuing operations 373,372 440,848
Income tax using the domestic corporation tax rate 46,672 55,106
/20
Tax effect of income not subject to tax (19,886) (6,235)
/26
Tax effect of expenses not deductible for tax purposes 34,898 15,591
-4
Tax calculated at domestic rates applicable in the respective countries (36,716) 6,033
Re-measurement of deferred taxation - 278
NG
Tax effect of associates and joint ventures results net of tax (10,264) (7,515)
iL
Adjustment in respect of prior years 3,570 (8,791)
ar
Previously unrecognised tax losses (14,882) (48,646)
lam
Tax losses for which no deferred tax asset was recognised 49,878 -
Ca
Tax expense 53,270 5,821
-
no
ra
The Company is subject to corporation tax in Cyprus at the rate of 12.5% (2019: 12.5%).
er
sS
All subsidiaries of the Group are subject to taxation in the country of their operation, except Gunvor (Bahamas)
re
Ltd. whose USA source income is subject to USA income tax. Group subsidiaries’ tax rates vary from 0% to 35%.
nd
-A
The tax credit relating to components of other comprehensive income is as follows:

m
.co
g
Note 2020 2019

i-ln
ar
Tax credit
lam
Remeasurement of post‑employment benefit obligations 16 496 4,121

ca
i@
Total tax recognised in other comprehensive income 496 4,121

ar
lam
ca
s-
rtie
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Gu
Gu
nv
or
cre
dit
co
un
ter
pa
rtie
s-
ca
lam
ar
i@
ca
lam
ar
i-ln
g
.co
m
-A
nd
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sS
er
ra
no
- Ca
lam
ar
iL
NG
-4
/26
/20
22
1:1
1:2
9P
M
-1
90
. 24
2. 1
01
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2. 1
. 24
24 FINANCIAL INSTRUMENTS
90
-1
M
FINANCIAL INSTRUMENTS BY CATEGORY
9P
1:2
At fair
At amortised value through At fair value
31 December 2020 Note cost profit or loss through OCI Total
1:1
22
Assets
Other financial assets 8 - 132,405 2,093 134,498
/20
Receivables (excluding prepayments) 12 3,945,492 - - 3,945,492
/26
Derivative financial instruments 10 - 3,816,741 - 3,816,741
-4
Cash 806,219 - - 806,219
NG
Total 4,751,711 3,949,146 2,093 8,702,950
iL
ar
At fair
lam
At amortised value through
31 December 2020 Note cost profit or loss Total
Ca
Liabilities
-
Trade and other payables (excluding prepayments) 15 3,711,443 - 3,711,443

no
Derivative financial instruments 10 - 3,813,750 3,813,750

ra
er
Lease liabilities 1,583,717 - 1,583,717

sS
Borrowings 18 4,961,120 - 4,961,120

re
Total 10,256,280 3,813,750 14,070,030

nd
-A
m
.co
g
i-ln
ar
lam
ca
i@
ar
lam
ca
s-
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. 24
(CONTINUED) FINANCIAL INSTRUMENTS 24
90
-1
At fair
At amortised value through At fair value
M
31 December 2019 (restated) Note cost profit or loss through OCI Total
9P
1:2
Assets
Other financial assets 8 - 135,111 192 135,303
1:1
Receivables (excluding prepayments) 12 4,989,110 - - 4,989,110
22
Derivative financial instruments 10 - 3,356,468 - 3,356,468
Cash 940,882 - - 940,882
/20
/26
Total 5,929,992 3,491,579 192 9,421,763
-4
NG
At fair
At amortised value through
31 December 2019 (restated) Note cost profit or loss Total
iL
ar
Liabilities
lam
Trade and other payables (excluding prepayments) 15 5,010,256 - 5,010,256
Derivative financial instruments 10
Ca - 3,502,669 3,502,669
Lease liabilities 1,320,574 - 1,320,574
-
Borrowings 18 4,242,894 - 4,242,894

no
ra
er
Total 10,573,724 3,502,669 14,076,393

sS
re
Financial risk management

nd
The Group is exposed to a number of external factors which may impact its profitability. It is the Group’s policy
-A
to identify and actively manage such risks. Specifically, the Group is exposed to commodity price risk, credit
m
risk, liquidity risk, currency risk, interest rate risk, capital risk and operational risk. Centralised risk management
.co
and finance teams are responsible to monitor and mitigate the overall risk exposure within approved guidelines.
g
i-ln
Commodity price risk

ar
The Group is exposed to price movements for the inventories it holds, and for sale or purchase contracts where
lam
physical products are to be delivered in the future. The Group manages this exposure through futures, swap and
options transactions on world‑wide commodity exchanges or on Over‑The‑Counter markets (‘’OTC’’). The Group
ca
enters in OTC transactions with high credit‑rated counterparties either on an open account basis or covered
i@
by letters of credit. Commodity price risk management is a fully integrated part of the trading activities. The fair
ar
value of financial instruments used to hedge commodity price risk is included as assets or liabilities towards
lam
derivative counterparties including futures brokers. The use of derivative instruments is confined to specialists
ca
with skills and experience who operate under management’s supervision and continuous reporting through
s-
trading systems. The overall trading positions is monitored daily to ensure proper hedging of price exposure.
rtie
In 2020 more than 91% of stocks of commodities were economically hedged by derivative instruments with
pa
respect to price risk (2019: 91%).

ter
un
The supply agreements for crude oil and refined petroleum products that the Group enters into do not usually
co
bear a price risk further out than four months. The Group has entered into one LNG physical purchase contract
dit
with deliveries until 2041.

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24 FINANCIAL INSTRUMENTS (CONTINUED)
90
-1
M
All derivative instruments related to refined petroleum products and crude oil, mature in December 2024 at the
9P
latest, and the vast majority expire during the period January ‑ December 2021 covering price risk related to
physical sales or purchases to be delivered during that period.
1:2
1:1
All derivative instruments related to natural gas, LNG, power and emissions, mature in December 2025 at the
latest and cover price risk related to physical sales or purchases to be delivered during that period for the majority.
22
/20
Credit risk
/26
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
-4
its contractual obligations, and arises principally from the Group’s receivables from customers and debt instruments
carried at amortised costs. In monitoring customer credit risk, customers are grouped according to their credit
NG
characteristics. New customers can only be accepted once they are approved by compliance, risk and finance
iL
after an assessment of the profile, type of trades and financial security provided such as Letter of Credit or Parent
ar
Company Guarantee in most cases. Open account terms are granted following approval by the credit committee.
lam
The Group’s credit risk is significantly mitigated since all of its customers are spread across a wide geographic
Ca
spectrum and due to the strong past experience the Group has with them.
-
no
At the initial phase of the negotiation, the Group analyses the creditworthiness of the customer by ensuring that:
ra
er
sS
(i) the customer has a strong past experience without delinquency of payments;
(ii) the customer has good track record with international banks;
re
(iii) the customer can provide reliable financial statements for analysis by the credit risk function.
nd
-A
The carrying amount of financial assets represents the maximum credit exposure.
m
.co
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s large number
g
of customers. Five most significant individual counterparties covered 14% of the total credit risk exposure
i-ln
related to accounts receivable as at 31 December 2020 (at 31 December 2019: 16%) and are all well‑known,
ar
major companies in the industry with strong financial positions. The Group’s historical experience in collection
lam
of accounts receivable and debt instruments, so as current market conditions analysis and forward looking
estimates fall within the recorded allowances for expected credit losses. Due to these factors, management
ca
believes that no additional credit risk beyond amounts provided for collections losses is inherent in the Group’s
i@
trade receivables and debt instruments.

ar
lam
Impairment risk
ca
The aging of trade and other receivables at the reporting date was:
s-
rtie
2020 % 2019 Restated %

pa
Not past due 2,917,642 92.9 3,593,761 90.6

ter
Past due 0‑30 days 105,861 3.4 324,160 8.2

un
Past due 31‑365 days 105,836 4.4 37,334 0.9

co
More than 365 days 10,822 0.3 9,982 0.3

dit
re
Total 3,140,161 100.0 3,965,237 100.0

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90
-1
M
Most of these amounts were settled by February 2021.
9P
Liquidity risk
1:2
Liquidity risk is the risk that the Group is unable to meet its payment obligations when due or is unable to borrow
1:1
funds from its banks or from the market.
22
The Group mainly relies on its equity base and short‑term overdrafts to finance its working capital needs. The
/20
working capital cycle is usually short and ranges between 15 and 60 days (aging of trade and other receivables
/26
table). The Group has put in place a diversified pool of banks to ensure availability of credit lines for its liquidity
-4
needs. The overdraft facilities with no specified maturities from banks are USD 14,608 million as at the year end
(2019: USD 16,181 million), are drawn when liquidity needs require so and borrowings are repaid to the banks
NG
when receivables are collected from the customers. Additional flexibility to liquidity management is provided by
iL
the RCF of USD 2,185 million (2019: USD 2,398 million).
ar
lam
The table below analyses the Group’s financial liabilities and net‑settled derivative financial liabilities into relevant
maturity groupings based on the remaining period at the consolidated balance sheet to the contractual maturity
Ca
date. The amounts disclosed in the table are the contractual undiscounted cash flows.
-
no
ra
Less than Between 1 After

er
31 December 2020 1 year and 2 years 2 years

sS
Trade and other payables (excluding prepayments) 3,671,210 3,156 37,077

re
Borrowings 4,200,407
230,163
547,720
nd
Derivative financial instruments 3,480,921 323,256 9,573

-A
Lease liabilities 575,962 343,461 830,832

m
.co
11,928,500
Total 900,036
1,425,202
g
i-ln
ar
Less than Between 1 After

31 December 2019 (restated) 1 year and 2 years 2 years
lam
ca
Trade and other payables (excluding prepayments) 4,964,119 5,554 40,582

i@
Borrowings 3,499,938
199,687
598,993
Derivative financial instruments 3,313,862 620,587 29,756
ar
Lease liabilities 464,586 267,710 724,775

lam
ca
Total
12,242,505
1,093,538
1,394,106
s-
rtie
Currency risk
pa
Currency risk represents the risk of losses from movements in exchange rates related to balances in currencies
ter
other than the USD.

un
co
The majority of the Group’s sales, purchases and borrowings are denominated in USD which is also the
dit
functional and presentation currency of the parent company and most of the operating subsidiaries. Non‑USD
re
transactions are primarily in Euro and British Pound. Management has set up guidelines to manage their foreign
c
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. 24
90
-1
M
exchange risk against their functional currency. To manage their foreign exchange risk arising from future
9P
commercial transactions and recognised assets and liabilities, the Group uses forward contracts transacted
through external financial institutions.
1:2
1:1
The impact of foreign currency exchange gains or losses is recognised immediately in the statement
of comprehensive income during the monthly reporting cycles. The impact of a sudden adverse currency
22
movement, in particular a weakening of the USD, will not significantly impact the results of the Group.
/20
/26
At 31 December 2020, the Group is not exposed to significant currency risks.
-4
Interest rate risk
NG
The Group is exposed to risks associated with the effects of fluctuations in the underlying interest rate. The
iL
operations are to a great extent financed with overdraft and other short‑term loan facilities provided by first‑class
ar
banks at variable floating rates. The Group does not use specific instruments to manage interest rate risk and
lam
is exposed to the cash flow risk of USD Libor fluctuations.
Ca
The Group’s exposure to interest rate fluctuations is partially mitigated by interest income billed contractually
-
to suppliers in case of prepayments and interest income on deposits. Assuming the amount of floating rate
no
liabilities at the reporting period end were outstanding for the whole year, interest rates were 1% higher/lower
ra
and all other variables held constant, the Group’s income and equity for the year ended 31 December 2020
er
sS
would decrease/increase by USD 14,315 (2019: USD 14,362).

re
Capital risk management

nd
Management’s policy is to keep a sufficient equity base so as to maintain banks and market confidence and to
-A
sustain future development of the business. In this respect it monitors return on capital, based on the equity as
m
reported in the balance sheet, and determines the dividend policy to ordinary shareholders.
.co
g
Borrowings and lease liabilities reconciliation

i-ln
The reconciliation between Borrowings and lease liabilities, as presented on the consolidated balance sheet
ar
and the consolidated statement of cash flows, is as follows:

lam
ca
2020 2019
i@
Borrowings Lease liabilities Borrowings Lease liabilities

ar
Balance at 1 January 4,242,893 1,320,574 5,287,259 1,003,272

lam
Cash flows 723,100 (602,783) (1,036,381) (373,360)

ca
Additions - 924,733 - 695,403

s-
Disposals - (85,055) - (97)

rtie
Exchange differences (3,263) 23,295 (7,045) (5,358)

Other changes (1) (1,609) 2,953 (940) 714
pa
ter
Balance at 31 December 4,961,121 1,583,717 4,242,893 1,320,574

un
co
dit
(1) Other changes include non-cash movements and accrued interest expenses on leases, which will be
re
presented in the consolidated statement of cash flows within operating cash flows when paid.
c
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. 24
90
-1
Fair value estimation
M
The table below analyses financial instruments carried at fair value, by valuation method. The different levels
9P
have been defined as follows:
1:2
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
1:1
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices).
22
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
/20
/26
Level 1 classifications primarily include futures with a maturity of less than one year and options that are
-4
exchange traded.
NG
Level 2 classifications primarily include futures with a maturity greater than one year, over the counter options,
iL
swaps and physical forward transactions which derive their fair value primarily from exchange quotes and
ar
readily observable broker quotes.
lam
Level 3 classifications primarily include physical forward transactions which derive their fair value predominantly
Ca
from calculations that use broker quotes and applicable market‑based estimates surrounding locations, quality
-
and credit differentials and investment in equity investments which are not quoted on an active market.
no
ra
The Group’s financial assets and liabilities that are measured at fair value are:
er
sS
31 December 2020 Level 1 Level 2 Level 3 Total

re
nd
Financial assets at fair value through profit or loss

-A
Derivative financial instruments 253,427 2,757,206 806,108 3,816,741

m
Other financial assets 2,101 - 130,304 132,405

g.co
Financial assets at fair value through other comprehensive income

i-ln
Other financial assets 195 1,898 - 2,093

ar
lam
Total assets 255,723 2,759,104 936,412 3,951,239

ca
i@
Financial liabilities at fair value through profit or loss

ar
lam
Total liabilities 418,039 3,133,726 261,986 3,813,751

ca
s-
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-1
M
31 December 2019 (restated) Level 1 Level 2 Level 3 Total
9P
1:2
Financial assets at fair value through profit or loss
1:1
Other financial assets 3,600 - 131,511 135,111
22
Financial assets at fair value through other comprehensive income
/20
Other financial assets 192 - - 192
/26
-4
Total assets 118,752 2,508,481 864,538 3,491,771
NG
Financial liabilities at fair value through profit or loss
iL
ar
lam
Total liabilities 93,040 2,739,861 669,768 3,502,669
Ca
-
Other financial assets such as receivables, margin accounts with brokers, cash are measured at amortised cost
no
using the effective interest method, less any impairment losses. Financial liabilities as loans, trade and other
ra
payables and borrowings are measured at amortised cost using the effective interest method.
er
sS
The following table presents the changes in level 3 instruments:

re
nd

Derivative financial Other
instruments financial assets
-A
m
Balance at 1 January 2019 224,491 132,434

.co
Acquisitions - 2,781
g
Loss recognised in comprehensive income (60,225) (3,704)

i-ln
Loss realised (101,008) -

ar
lam
Balance at 31 December 2019 63,258 131,511

ca
Acquisitions - 2,698
i@
Gain / (loss) recognised in comprehensive income 537,260 (4,175)

Loss realised (56,396) -
ar
lam
Balance at 31 December 2020 544,122 130,034

ca
s-
Derivative financial instruments classified as level 3 consist of long-term LNG contracts and some natural gas
rtie
arrangements.The Group values these contracts on the basis of observable inputs on the forward price of LNG,
pa
natural gas and crude oil, on the basis of internal assumptions for price evolution beyond observable horizon, on
ter
the credit quality of the counterparties and on uncertainties related to the execution of contracts. These valuation
un
methods lead to an assessment of the fair value of the portfolio of contracts over an effective horizon of two years.
co
dit
Other financial assets, which represent unlisted equity securities, are measured using discounted cash
re
flow analysis. These cash flows are determined by using projections for volumes and future prices which
c
are unobservable on the long‑term and based on management experience and knowledge of the market.
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. 24
90
-1
M
If the change in the cash flow discounted in the valuation models was to increase / decrease by 5%, the impact
9P
on equity would be USD 6,496 (2019: USD 6,556 ).
1:2
OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES
1:1
(a) Financial assets
22
The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements:
/20
/26
Related amounts not set
Gross amounts Margin account off in the balance sheet
of recognised recognised in Net amounts of
-4
Gross amounts financial liabilities trade payables financial assets Amounts subject
of recognised set off in the set off in the presented in the to master netting Financial
NG
financial assets balance sheet balance sheet balance sheet agreements collateral Net amount
iL
31 December 2020
ar
Derivative financial
lam
instruments 6,090,041 (1,897,390) (375,910) 3,816,741 - (94,985) 3,721,756
Trade receivables
4,657,346 (1,322)
(429,500)
4,226,524 - -
4,226,524
- Ca
Total 10,747,387 (1,898,712) (805,410) 8,043,265 - (94,985) 7,948,280

no
ra
er
31 December 2019 (restated)

sS
instruments 3,922,919 (294,209) (272,243) 3,356,467 (3,096) (263,298) 3,090,073
re
Trade receivables
6,672,984
(1,247,512)
(167,668)
5,257,804 - -
5,257,804
nd
-A
Total 10,595,903 (1,541,721) (439,911) 8,614,271 (3,096) (263,298) 8,347,877

m
.co
(b) Financial liabilities

g
The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements:
i-ln
ar
Related amounts not set

Gross amounts Margin account off in the balance sheet
lam
of recognised recognised in Net amounts of

Gross amounts financial assets trade payables financial liabilities Amounts subject
of recognised set off in the set off in the presented in the to master netting Financial
ca
financial liabilities balance sheet balance sheet balance sheet agreements collateral Net amount
i@
31 December 2020
ar
lam
instruments 6,140,640 (1,897,390) (429,500) 3,813,750 - (805,329) 3,008,421

ca
Trade payables 4,169,361 (1,322)

(375,910)
3,792,129 - -
3,792,129
s-
rtie
Total 10,310,001 (1,898,712) (805,410) 7,605,879 - (805,329) 6,800,550

pa
31 December 2019 (restated)

ter
un
instruments 3,964,547 (294,209) (167,669) 3,502,669 (3,096) (1,023,873) 2,475,700

co
Trade payables 6,743,513

(1,247,512)
(272,243)
5,223,758 - -
5,223,758
dit
re
Total 10,708,060 (1,541,721) (439,912) 8,726,427 (3,096) (1,023,873) 7,699,458

c
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. 24
90
-1
M
For the financial assets and liabilities subject to enforceable master netting arrangements or similar arrangements
9P
above, each agreement between the Group and the counterparty allows for net settlement of the relevant financial
assets and liabilities when both elect to settle on a net basis. In the absence of such an election, financial assets
1:2
and liabilities will be settled on a gross basis, however, each party to the master netting agreement or similar
1:1
agreement will have the option to settle all such amounts on a net basis in the event of default of the other
party. Per the terms of each agreement, an event of default includes failure by a party to make payment when
22
due; failure by a party to perform any obligation required by the agreement (other than payment) if such failure
/20
is not remedied within periods of 30 to 60 days after notice of such failure is given to the party or bankruptcy.
/26
-4
25 GROUP ENTITIES
NG
iL
ar
The Group’s parent company is Gunvor Group Ltd. The list of the principal subsidiaries in year 2020 is as follows:
lam
Country of Ownership interest Ca
Subsidiary incorporation 2020 2019 Activity
Gunvor SA Switzerland 100 100 Trading

-
Gunvor Singapore Pte. Ltd. Singapore 100 100 Trading

no
Gunvor (Bahamas) Ltd. Bahamas 100 100 Trading

ra
er
Gunvor Enerji Anonim Sirketi Turkey 100 100 Trading

sS
Gunvor International B.V. (1) (2) Netherlands 100 100 Trading

C‑Breeze Pte. Ltd. Singapore 100 100 Trading
re
Gunvor Middle East DMCC Dubai 100 100 Trading

nd
Gunvor (China) Trading Co., Ltd. (3) China 100 100 Trading
-A
Gunvor USA LLC (4) USA 100 100 Trading

m
Gunvor UK Limited United Kingdom 100 100 Trading agent

.co
Gunvor Belgium NV Belgium 100 100 Marketing

g
Gunvor Deutschland GmbH Germany 100 100 Marketing

i-ln
Gunvor Marketing (España), S.L.U. Spain 100 100 Marketing

ar
Gunvor Petroleum Antwerpen Belgium 100 100 Refinery

lam
Gunvor Raffinerie Ingolstadt GmbH Germany 100 100 Refinery

ca
Gunvor Petroleum Rotterdam B.V. Netherlands 100 100 Refinery

i@
Stargate Oil Terminal Rotterdam B.V. Netherlands 100 100 Terminal

Gunvor España, S.L.U. Spain 100 100 Biofuel plant
ar
Gunvor Biodiesel Berantevilla, S.L.U. Spain 100 100 Biofuel plant

lam
Clearlake Shipping Pte. Ltd. Singapore 100 100 Ship charterer

ca
Clearlake Chartering USA Inc. USA 100 100 Ship charterer

s-
Gunvor Resources Limited (5) Bahamas 100 100 Oil exploration

rtie
Gunvor Services AS Estonia 100 100 Services

Gunvor LLC Russia 100 100 Services
pa
Gunvor Colombia S.A.S. Colombia 100 100 Representative office

ter
Clearlake SA Switzerland 100 100 Ship Brokerage

un
Gunvor LLC Mongolia 100 100 Representative office

co
Gunvor Argentina S.A. Argentina 100 100 Representative office

dit
ClearBay B.V.
Netherlands 100 100 Financing
re
Sandshore S.A. Costa Rica 100 100 Financing

c
Gunvor (Schweiz) AG Switzerland 100 100 Holding

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(CONTINUED) GROUP ENTITIES 25
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Country of Ownership interest
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Subsidiary incorporation 2020 2019 Activity
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Brightshore Overseas Ltd. British Virgin Islands 100 100 Holding
C‑Wave Limited (formerly Castor Cayman Ltd.) Bahamas 100 100 Holding
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OceanWave B.V.
Netherlands 100 100 Holding
1:1
Pinesdale LLC USA 100 100 Holding
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Clearlake Invest Ltd Cyprus 100 100 Holding
Sandmark Limited Cyprus 100 100 Holding
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Capefar Limited Cyprus 100 100 Holding
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Vanderblue Limited Cyprus 100 100 Holding
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Sandmaster B.V.
Sandbrook Limited Cyprus 100 100 Holding
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C‑Blue B.V. Netherlands 100 100 Holding
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Gunvor Investments Limited Cyprus 100 100 Holding
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J‑Sun Limited Cyprus 100 100 Holding
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Jaybay Limited Cyprus 100 100 Holding
Just‑C Limited Cyprus 100 100
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Coral Cay Pte. Ltd. Singapore 100 100 Holding
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Gunvor Asia Investments Pte. Ltd. Singapore 100 100 Holding

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C‑Sand Pte. Ltd. Singapore 100 100 Holding

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Nero Plan Pte. Ltd. Singapore 100 100 Holding

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Gunvor Asia Pte. Ltd. Singapore 100 100 Holding

SandCape B.V.
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SandCreek B.V.
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ClearCoast B.V.
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Gunvor Petroleum International B.V. Netherlands 100 100 Holding

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Gunvor Infrastructure LLC Russia 100 ‑ Terminal operations

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(1) The company also operates through a branch in Geneva. (4) The company also operates through a branch in Calgary.
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(2) The company also operates through a branch in Berlin. (5) The company also operates through a branch in Malabo.
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(3) The company also operates through a branch in Beijing.

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26 CONTINGENT LIABILITIES
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As part of its trading operations, the Group is party to different legal and regulatory proceedings. These
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contingent liabilities are reviewed on a regular basis, subject to their inherent uncertainties and unpredictability.
Where feasible and necessary an estimate is made of any potential impact on the Group financial statements.
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1:1
The uncertainties around the existence, timing or possible financial obligations of the Group cannot be
determined, in particular with respect to the subpoena dated 27 October 2020 from the US Department of
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Justice to produce documents and other records with respect to the Group’s business in Ecuador.
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Guarantees
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All transactional credit facilities as well as the Revolving Credit Facilities granted by banks to Group companies
are covered in full by corporate guarantees issued by the holding Company of the Group.
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Additionally, the Company issued corporate guarantees to business counterparties that grant open credit lines
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to Group companies, for an aggregated amount of USD 2,640,823 (2019: USD 2,837,706).
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27 RELATED PARTY TRANSACTIONS
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The Group is controlled by Frefika Holdings Ltd, incorporated in Cyprus, and Mr. Törnqvist who own 74.2% and 12.67%
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of the Company’s shares, respectively. The Group is ultimately controlled by Mr. Törnqvist, who is beneficial owner of
the majority of the Company’s shares.
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The following transactions were carried out with related parties:

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(A) SALES OF GOODS AND SERVICES AND INTEREST INCOME

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Nature of transactions 2020 2019

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Associates and joint ventures Sales of goods and services 30,514 21,102
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Associates and joint ventures Interest income 983 691

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Shareholders and other related parties Interest income 3,035 3,740

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Interest is charged on rates that would be available to third parties.

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(B) PURCHASES OF GOODS AND SERVICES

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Associates and joint ventures Purchases of goods and services 57,667 60,199
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Goods and services are bought from associates and entities under common control on normal commercial
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terms and conditions.

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(CONTINUED) RELATED PARTY TRANSACTIONS 27
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DIRECTORS AND KEY MANAGEMENT COMPENSATION (C)
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The compensation expense recognised for Directors and key management is shown below:
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2020 2019
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Short-term employee benefits 13,310 15,659
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Share-based payments 3,109 3,454
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Total 16,419 19,113
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YEAR‑END BALANCES ARISING FROM SALES/PURCHASES OF GOODS/SERVICES/FINANCING (D)
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Receivables from related parties
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Associates and joint ventures Sales of goods and services 15,191 16,368
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Associates and joint ventures Financing 9 29,585

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Directors and management Financing 2,388 2,608

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Shareholders and other related parties Financing 90,882 94,244

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Payables to related parties

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Associates and joint ventures Purchases of goods and services 3,207 -

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Associates and joint ventures Leasing - 223,324

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Shareholders and other related parties Financing 2,825 52,010

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The receivables and payables from and to related parties arise from sale and purchase transactions, and from
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leases of assets under normal commercial terms and conditions. They are unsecured in nature and bear no
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interest. No amounts were provided against receivables from related parties.

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The loans receivable from shareholders, directors and management are denominated in USD, bear interest at
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Libor +2% to Libor +3% (2019: Libor +2% to Libor +2.5%), are repayable on demand and can be set off against
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dividends.
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During the year, the share capital and share premium reduction amount of USD 176,173 (2019: USD 61,766)
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was fully set off against the Group’s receivable balance with the majority shareholder (note 13).
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28 GROUP’S INSURANCE POLICY
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The Group has a broad insurance program in place that provides coverage for its assets and operations at a level
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considered to be appropriate for the risks associated therewith. Such insurance protection is maintained with
leading international insurance providers with credit rating A‑ or higher from Standard & Poor’s or a comparable
1:2
rating from an internationally recognised credit rating agency. Such insurances include coverage for physical
1:1
loss and damage to assets, cargo or vessels as well as third party liabilities, including pollution. Assets such as
refineries are insured on the Estimated Maximum Loss basis or for replacement values. Gunvor is committed to
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the highest standards of international best practice in shipping and all chartered vessels are IACS classed with
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full P&I cover of a member of International Group of P&I Clubs and all are under 25 years of age. The Group is
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fully protected against an unlikely event of any accident or oil spill under a comprehensive Charterer’s Liability
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Policy in the amount of USD 1 billion per event at sea and USD 250 million per event elsewhere.
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29 EVENTS AFTER THE REPORTING PERIOD
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There were no material events after the reporting period, which have a bearing on the understanding of the
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consolidated financial statements.
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Independent
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auditor’s report
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Map and locations
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OFFICE
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Amsterdam,
The Netherlands
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TERMINAL
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Rotterdam,
The Netherlands
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REFINERY
REP OFFICE Rotterdam,
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Calgary, The Netherlands
Alberta
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Ca TRADING OFFICE
London,
UK
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TRADING OFFICE
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Stamford, TERMINAL
Connecticut Antwerp,
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Belgium
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TRADING OFFICE
Houston, BIOFUEL PLANT
Texas Basque Country(Berantevilla),
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Spain
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BIOFUEL PLANT
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Huelva,
Spain
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TRADING OFFICE
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Nassau, REP OFFICE

The Bahamas Madrid,
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Spain
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PIPELINE
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David,
Panama
REP OFFICE
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Bogotá,
Columbia
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MIDSTREAM
REP OFFICE Asunción,
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Buenos Aires, Paraguay

Argentina
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REP OFFICE
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Berlin,
Germany
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SERVICES
Tallinn,
Estonia
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TERMINAL
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Baltic Sea,
Ust-Luga
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REP OFFICE
Ulaanbaatar,
Mongolia
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REFINERY
Ingolstadt,
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Germany REP OFFICE

Beijing,
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China
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REP OFFICE
Istanbul,
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Turkey
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TRADING
OFFICE
Geneva,
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Switzerland TRADING OFFICE

OFFICE Shanghai,
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Nicosia, China
Cyprus
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REP OFFICE
Barcelona,
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Spain TRADING OFFICE

Dubai,
United Arab Emirates
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TRADING OFFICE
Singapore
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UPSTREAM TERMINAL
Equatorial Guinea Karimun,
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Indonesia
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SHIPS / TANKERS
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The main trading centers are in Geneva, Singapore, Houston, London and the Bahamas.
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We also operate through service centers, representative offices and branches throughout the world.
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Addresses
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EUROPE AMERICAS ASIA & MIDDLE EAST
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1:2
CYPRUS ESTONIA UNITED STATES OF AMERICA SINGAPORE
Gunvor Group Ltd Gunvor Services AS Gunvor USA LLC Gunvor Singapore Pte. Ltd.
1:1
8 Stasinou Avenue Tornimäe 5 Clearlake Chartering USA Inc. Clearlake Shipping Pte. Ltd.
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Photos Photiades Business Centre 10145 Tallinn 600 Travis Street 12 Marina Boulevard
/20
Office 401 Houston TX, 77002 Marina Bay Financial Centre,
1060 Nicosia RUSSIAN FEDERATION Tower 3
/26
Gunvor LLC Gunvor USA LLC Office 35-03
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SWITZERLAND Gunvor Infrastructure Limited Two Stamford Plaza Singapore 018982
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Gunvor SA Liability Company 281 Tresser Boulevard (Suite 1001)
Gunvor International B.V., Geneva Federation Tower MIBC Stamford, Connecticut 06901 CHINA
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Branch 12 Presnenskaya Embankment Gunvor (China) Trading Co., Ltd.
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Clearlake SA 123112 Moscow CANADA 100 Century Avenue
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80-84 Rue du Rhône Gunvor Calgary. Office T30
1204 Geneva SPAIN

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421 7th Avenue S.W. 281 Suite 63/F, Shanghai World Financial
Gunvor España, S.L.U. 3097 Calgary Alberta T2P 4K9 Centre
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THE NETHERLANDS Poligono Industrial Nuevo Puerto 52 Pudong Shanghai 200120

Gunvor International B.V. 21810 Palos de la Frontera THE BAHAMAS
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Barbara Strozzilaan 201 Huelva Gunvor (Bahamas) Ltd. Gunvor (China) Trading Co., Ltd.
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1083HN Amsterdam Lyford Cay House, 4th Floor Beijing Representative Office
Gunvor Biodiesel Berantevilla, S.L.U. P.O. Box SP-63847 Office 1108, Tower A
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Gunvor Petroleum Rotterdam B.V. Polígono Industrial Lacorzanilla New Providence Hehua City Wall
Stargate Oil Terminal Rotterdam B.V. LZ-2, Parcela 9 Nassau No. 7 Jian Guo Men South Ave.
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Moezelweg 255 01218 Berantevilla, Álava Dong Cheng District

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3198 LS Rotterdam-Europoort COLOMBIA Beijing 100005

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Gunvor Marketing (Espana), S.L.U. Gunvor Colombia CI S.A.S.

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GERMANY Edificio “Torre INBISA” de la Plaza Calle 84A # 12-18 UNITED ARAB EMIRATES
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Gunvor Raffinerie Ingolstadt GmbH Europa 9-11, 9º Oficina A Office 401 Gunvor Middle East DMCC
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Essostrasse 1 L’Hospitalet de Llobregat 110221 Bogotá D.C. 35A Almas Tower

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85092 Kösching 08908 Barcelona Jumeirah Lakes Towers

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ARGENTINA P.O.Box 340576 Dubai

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Gunvor Deutschland GmbH Gunvor Argentina S.A.
Schoberstrasse 3 Lola Mora 421 12º

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85055 Ingolstadt Office 1201
1107 Capital Federal

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BELGIUM
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Gunvor Petroleum Antwerpen

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Gunvor Belgium NV
Scheldelaan 490
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2040 Antwerpen
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UNITED KINGDOM
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Gunvor UK Limited
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123 Pall Mall EMAIL

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London SW1Y 5EA info@gunvorgroup.com

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2.2.2 Gunvor Annual Report 2020

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2.2.2 Gunvor Annual Report 2020

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Annual Report 2020

For the year ended 31 December 2020

Consolidated statement of cash flows 10

Consolidated statement of changes in equity 11

Notes to the consolidated financial statements 14 - 67

Independent auditor’s report 70 - 72

Assistant Company Secretary

Photos Photiades Business Centre

Principal risks, uncertainties and use of financial instruments

Annual General Meeting.

On behalf of the Board of Directors

Other financial assets 8 106,494 103,792

Inventories 11 4,804,909 3,944,125

Receivables 12 4,178,644 5,166,702

Derivative financial instruments 10 3,405,447 3,062,619

Total current assets 13,301,713 13,218,120

TOTAL ASSETS 16,606,733

Lease liabilities 1,050,084

Deferred income tax 9 61,725 56,672

Retirement benefit obligations 16 84,570 74,329

Provisions 17 81,184 70,049

Trade and other payables 15 3,751,896 5,177,621

Derivative financial instruments 10 3,480,921 3,119,807

Borrowings 18 4,190,854 3,466,135

Lease liabilities 533,633

Total current liabilities 11,957,304 12,186,465

Total liabilities 14,378,195

TOTAL EQUITY AND LIABILITIES 16,606,733 16,615,974

Torbjörn Törnqvist Gerhard Auer Jérôme Pierre Marie Gonelle

Chairman Director Director

Income tax 23 (53,269) (5,821)

Profit for the year, net of tax 320,103 435,027

Total working capital change (1,453,491) 638,374

Income tax paid (30,773) (26,838)

Interests paid, net (180,534) (272,804)

Net cash generated from operating activities 88,678 1,756,563

Acquisition of subsidiaries, net of cash acquired 25 - (14,759)

Proceeds on disposal of subsidiaries, net of cash disposed of - 7,670

Proceeds on disposal of associates, net of cash disposed of 7 5,239 -

Purchases of property, plant and equipment 4 (213,097) (138,658)

Investment in associates and joint ventures 7 (23,784) (24,600)

Loans granted to related parties (173,642) (157,457)

Loan repayments received from related parties 78,104 87,655

Loans granted to third parties (227,917) (387,962)

Loans repaid 242,073 359,088

Acquisition of financial assets 8 (2,968) -

Proceeds on disposal of financial assets 8 1,349 3,257

Net cash used in investing activities (171,940) (176,315)

Dividends paid to the equity holders of the Company 13 (148,802) (750)

Proceeds from borrowings 18 1,386,097 440,593

Repayment of borrowings 18 (666,172) (1,476,974)

Net cash used in financing activities (31,660) (1,410,491)

Net (decrease) / increase in cash (114,922) 169,757

Cash at 1 January 940,882 772,071

Exchange losses (19,741) (946)

Cash at 31 December 806,219 940,882

Balance at 31 December 2019 (restated) 2,384 59,808 14,620 2,048,217 2,125,029

Profit for the year - - - 320,103 320,103

Other comprehensive loss - - (45,944) - (45,944)

Total comprehensive income - - (45,944) 320,103 274,159

Transactions with owners:

Issue of shares - 162,160 - (162,160) -

Cancellation of shares (205) (175,968) - - (176,173)