36. Related parties

A A A

36.1 Related-party transactions

PLN ’000 Year ended
Dec 31 2013		 Year ended
Dec 31 2012
Jointly-controlled entities    
Sale 19,983 6,831
Purchases 516 35,702
In-kind contribution 51,700 (1) -

(1) LOTOS Petrobaltic S.A., as the other limited partner in Baltic Gas Sp. z o.o. i wspólnicy sp. k., increased its equity interest in the partnership in exchange for contributions, including an in-kind contribution in the form of non-current assets related to B-4 and B-6 fields, see Note 2.

In 2013, the Group made sale transactions primarily with LOTOS - Air BP Polska Sp. z o.o. (executed subsequently to the loss of control over the company, see Note 2). The transactions involved sales of aviation fuel. The value of the sales stood at PLN 19,533 thousand.

In 2012, the Group mainly purchased crude oil from UAB Manifoldas (transactions executed prior to the acquisition of control over UAB Manifoldas on November 28th 2012, as discussed in Note 2 to the 2012 consolidated financial statements). The value of the purchases stood at PLN 34,651 thousand.

PLN ’000 Note Dec 31 2013 Dec 31 2012
Jointly-controlled entities      
Receivables 18 16,657 2,507
Payables 30 207 138

As at December 31st 2013, the Group disclosed mainly receivables from LOTOS - Air BP Polska Sp. z o.o. in the amount of PLN 16,321 thousand (December 31st 2012: UAB Minijos Nafta).

36.2 Group's controlling entity

As at December 31st 2013 and December 31st 2012, the State Treasury held a 53.19% interest in Grupa LOTOS S.A. In 2013 and 2012, no transactions were concluded between Grupa LOTOS S.A. and the State Treasury.

36.2.1 Transactions with related entities over which the State Treasury has control, joint control or significant influence

In 2013, the Group executed transactions with parties related to it through the State Treasury. The aggregate value of the transactions was material. They were concluded at arm’s length in the course of the Group’s day-to-day business and involved mainly sale of fuels, sale and purchase of storage services, purchase of transport services, energy, natural gas and other fuels. In 2013, the value of sales generated under the transactions totalled PLN 353,978 thousand (2012: PLN 797,327 thousand), with the value of purchases standing at PLN 1,649,885 thousand (2012: PLN 1,337,438 thousand).

36.3 Remuneration of members of the Management and Supervisory Boards, along with information on loans and other similar benefits granted to members of the management and supervisory staff

The remuneration paid to members of the Company’s Management and Supervisory Boards was as follows:
PLN ’000 Year ended
Dec 31 2013		 Year ended
Dec 31 2012
Management Board    
Short-term employee benefits
(salaries and wages), including:		 1,580 1,404
- annual bonus paid 249 (1) 249 (2)
- length-of-service awards
(jubilee benefits)		 41 -
Management Board – subsidiaries (3)    
Short-term employee benefits
(salaries)		 3.562 3,104
Supervisory Board    
Short-term employee benefits
(salaries and wages)		 246 242
Total (4) 5,388 4,750

(1)  Remuneration paid in 2013 on account of annual bonus for 2012.

(2)  Remuneration paid in 2012 on account of annual bonus for 2011.

(3) Remuneration paid to members of the Company’s Management Board for serving in corporate bodies of direct and indirect subsidiaries.

(4) The amount reflects changes in the composition of the Company's Management Board (increased number of members) and Supervisory Board.

Other employee benefits
PLN ’000 Dec 31 2013 Dec 31 2012
Management Board    
Post-employment benefits,
length-of-service awards
and other benefits		 522 570
Current liabilities under
annual bonus (1)		 311 249
     
Total 833 819

(1) Pursuant to the Act on Remunerating Persons Who Manage Certain Legal Entities (the Public Sector Salary Cap Act). Taking into account changes in the composition of the Company's Management Board (increased number of members).

In 2013 and 2012, the Company did not grant any loans or similar benefits to members of its management and supervisory staff. No other material transactions were concluded with members of the Company’s Management and Supervisory Boards. Grupa LOTOS S.A. did not become aware of any transactions concluded with the Company or a company of the LOTOS Group by the spouses, relatives by blood or marriage in the direct line up to the second degree, of members of the Management and Supervisory Boards, or persons related to them through guardianship or adoption or other persons with whom they have personal relationships.

36.4 Remuneration paid or payable to other members of key management staff

Remuneration paid to members of key management staff (other than members of the Management Board of Grupa LOTOS S.A.)
PLN ’000

Year ended
Dec 31 2013

 Year ended
Dec 31 2012
Short-term employee benefits
(salaries and wages), including:		 30,187 30,205
- annual bonus paid 5,606 (1) 7,045 (2)

(1) Remuneration paid in 2013 on account of annual bonus for 2012.

(2) Remuneration paid in 2012 on account of annual bonus for 2011.

Other employee benefits:
PLN ’000 Dec 31 2013 Dec 31 2012
Post-employment benefits,
length-of-service awards
and other benefits		 8,886 7,457
Current liabilities under annual bonus 7,163 7,339
Loans and other similar benefits 6 16
Total 16,055 14,812

In 2013 and 2012, the Group did not provide any loans or similar benefits to members of its key management staff.