23. Related party transactions and balances
Balances with related parties – continued operations
Balances with related parties at December 31 are as follows:
|
|
|
2017 |
||||||
|
|
|
Receivables |
|
Payables |
||||
|
|
|
Non-Current |
|
Current |
|
Non-Current |
|
Current |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Inmobiliaria Espacio, S.A. |
|
— |
|
3,033 |
|
— |
|
4 |
|
Grupo Villar Mir, S.A.U. |
|
— |
|
83 |
|
— |
|
— |
|
Enérgya VM Generación, S.L |
|
— |
|
1,420 |
|
— |
|
6 |
|
Villar Mir Energía, S.L.U. |
|
2,398 |
|
35 |
|
— |
|
12,065 |
|
Espacio Information Technology, S.A.U. |
|
— |
|
— |
|
— |
|
861 |
|
Blue Power Corporation, S.L. |
|
— |
|
— |
|
— |
|
29 |
|
Other related parties |
|
2 |
|
1 |
|
— |
|
8 |
|
Total |
|
2,400 |
|
4,572 |
|
— |
|
12,973 |
|
|
|
2016 |
||||||
|
|
|
Receivables |
|
Payables |
||||
|
|
|
Non-Current |
|
Current |
|
Non-Current |
|
Current |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Inmobiliaria Espacio, S.A. |
|
— |
|
2,664 |
|
— |
|
1,751 |
|
Grupo Villar Mir, S.A.U. |
|
— |
|
6,743 |
|
— |
|
— |
|
Marco International Corporation |
|
— |
|
756 |
|
— |
|
— |
|
Enérgya VM Generación, S.L |
|
— |
|
— |
|
— |
|
23 |
|
Enérgya VM Gestión, S.L |
|
— |
|
1,765 |
|
— |
|
— |
|
Villar Mir Energía, S.L.U. |
|
2,108 |
|
39 |
|
— |
|
5,239 |
|
Espacio Information Technology, S.A.U. |
|
— |
|
— |
|
— |
|
130 |
|
Alloys International |
|
— |
|
— |
|
— |
|
918 |
|
Blue Power Corporation, S.L. |
|
9,845 |
|
— |
|
— |
|
— |
|
Key management personnel (Note 26) |
|
— |
|
— |
|
— |
|
22,672 |
|
Other related parties |
|
— |
|
4 |
|
— |
|
5 |
|
Total |
|
11,953 |
|
11,971 |
|
— |
|
30,738 |
Balances with related parties – assets held for sale
|
|
|
2016 |
||||||
|
|
|
Receivables |
|
Payables |
||||
|
|
|
Non-Current |
|
Current |
|
Non-Current |
|
Current |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Enérgya VM Generación, S.L |
|
— |
|
2,792 |
|
— |
|
— |
|
Villar Mir Energía, S.L.U. |
|
— |
|
— |
|
— |
|
231 |
|
Other related parties |
|
— |
|
— |
|
— |
|
23 |
|
|
|
— |
|
2,792 |
|
— |
|
254 |
The short-term loans granted by Grupo Villar Mir, S.A.U. relate mainly to renewable cash loans earning interest at a market rate and maturing at short term.
The loan granted to Inmobiliaria Espacio, S.A. accrues a market interest and has a maturity in the short-term that is renewed tacitly upon maturity, unless the parties agreed it’s repaid until maturity, extended it automatically for one year.
A former member of the board of directors until the end of 2016 is affiliated with Marco International Corporation, from which the Company purchases certain raw materials and to whom the Company sells silicon-based alloys.
During 2016 the loan granted to Blue Power Corporation, S.L. relates mainly to the financing of the new Spanish solar project. This loan accrues a market interest and will be repaid on long-term basis. On February 24, 2017, the loan was novated to OpCo as part of a capital injection by Blue Power to OpCo.
The balance with the other related parties arose as a result of the commercial transactions performed with them (see explanation of main transactions below).
Transactions with related parties and other related parties
Transactions with related parties in 2017, 2016 and 2015 are as follows:
|
|
|
2017 |
||||||||
|
|
|
Sales and |
|
|
|
|
|
Other |
|
Finance |
|
|
|
Operating |
|
|
|
|
|
Operating |
|
Income |
|
|
|
Income |
|
Cost of Sales |
|
Staff costs |
|
Expenses |
|
(Note 25.4) |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Inmobiliaria Espacio, S.A. |
|
— |
|
— |
|
— |
|
2 |
|
70 |
|
Villar Mir Energía, S.L.U. |
|
— |
|
94,049 |
|
— |
|
3,362 |
|
— |
|
Espacio Information Technology, S.A.U. |
|
— |
|
— |
|
— |
|
3,807 |
|
— |
|
Enérgya VM Generación, S.L |
|
17,222 |
|
— |
|
— |
|
226 |
|
— |
|
Enérgya VM Gestión, S.L |
|
— |
|
— |
|
— |
|
22 |
|
— |
|
Other related parties |
|
— |
|
— |
|
— |
|
1,440 |
|
154 |
|
Total |
|
17,222 |
|
94,049 |
|
— |
|
8,859 |
|
224 |
|
|
|
2016 |
||||||||
|
|
|
Sales and |
|
|
|
|
|
Other |
|
Finance |
|
|
|
Operating |
|
|
|
|
|
Operating |
|
Income |
|
|
|
Income |
|
Cost of Sales |
|
Staff costs |
|
Expenses |
|
(Note 25.4) |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Inmobiliaria Espacio, S.A. |
|
— |
|
— |
|
— |
|
2 |
|
74 |
|
Grupo Villar Mir, S.A.U. |
|
403 |
|
— |
|
— |
|
— |
|
— |
|
Villar Mir Energía, S.L.U. |
|
45 |
|
69,083 |
|
— |
|
3,626 |
|
— |
|
Espacio Information Technology, S.A.U. |
|
— |
|
— |
|
— |
|
4,049 |
|
— |
|
Enérgya VM Generación, S.L |
|
20,553 |
|
— |
|
— |
|
503 |
|
— |
|
Enérgya VM Gestión, S.L |
|
— |
|
253 |
|
— |
|
— |
|
— |
|
Marco International Corporation |
|
765 |
|
5,212 |
|
— |
|
— |
|
— |
|
Key management personnel (Note 26) |
|
— |
|
— |
|
10,080 |
|
— |
|
— |
|
Other related parties |
|
— |
|
— |
|
— |
|
92 |
|
— |
|
Total |
|
21,766 |
|
74,548 |
|
10,080 |
|
8,272 |
|
74 |
|
|
|
2015 |
||||||||
|
|
|
Sales and |
|
|
|
|
|
Other |
|
Finance |
|
|
|
Operating |
|
|
|
|
|
Operating |
|
Income |
|
|
|
Income |
|
Cost of Sales |
|
Staff costs |
|
Expenses |
|
(Note 25.4) |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Inmobiliaria Espacio, S.A. |
|
— |
|
— |
|
— |
|
3 |
|
170 |
|
Enérgya VM Generación, S.L |
|
28,881 |
|
— |
|
— |
|
306 |
|
— |
|
Grupo Villar Mir, S.A.U. |
|
— |
|
— |
|
— |
|
— |
|
255 |
|
Torre Espacio Castellana, S.A.U. |
|
— |
|
— |
|
— |
|
1,138 |
|
— |
|
Villar Mir Energía, S.L.U. |
|
66 |
|
85,511 |
|
— |
|
4,850 |
|
— |
|
Espacio Information Technology, S.A.U. |
|
— |
|
— |
|
— |
|
2,581 |
|
— |
|
Marco International Corporation |
|
— |
|
360 |
|
— |
|
— |
|
— |
|
Key management personnel (Note 26) |
|
— |
|
— |
|
3,909 |
|
|
|
|
|
Other related parties |
|
1 |
|
— |
|
— |
|
156 |
|
— |
|
Total |
|
28,948 |
|
85,871 |
|
3,909 |
|
9,034 |
|
425 |
“Cost of sales” of the related parties vis-à-vis Villar Mir Energía, S.L.U. relates to the purchase of energy from the latter by the Company’s Electrometallurgy - Europe segment. FerroAtlántica pays VM Energía a service charge in addition to paying for the cost of energy purchase from the market. For the fiscal years ended December 31, 2017, 2016 and 2015, FerroAtlántica’s and Hidro Nitro Española’s obligations to make payments to VM Enérgia under their respective agreements - for the purchase of energy plus the service charge - amounted to $94,049 thousand, $69,083 thousand and $85,511 thousand, respectively. These contracts are similar to contracts FerroAtlántica signs with other third-party brokers.
“Other operating expenses” relates mainly to service fees paid to Espacio Information Technology, S.A.U. for managing and maintenance services rendered related, basically, to the enterprise resource planning (‘ERP’) that some Company entities use; and, and other IT development projects.
“Sales and operating income” relates mainly to sales from Hidro Nitro Española to Enérgya VM for the sales made by its hydroelectric plant of $7,419 thousand, $5,155 thousand and $6,686 thousand for the fiscal years ended December 31, 2017, 2016 and 2015 and FerroAtlántica sales to Enérgya VM for the sales made by its hydroelectric plant of $9,803 thousand, $15,398 thousand and $22,195 thousand for the fiscal years ended December 31, 2017, 2016 and 2015.
During 2017, under the solar joint venture agreement FerroAtlántica and other subsidiaries have purchased property, plant and equipment of $3,611 thousand from Aurinka and Blue Power Corporation, S.L.