5.3.33Related Party Transactions
During 2016, no major related party transactions requiring additional disclosure in the financial statements took place.
For relations with Supervisory Board Members, Managing Directors and other key personnel reference is made to Note 5.3.6 ‘Employee benefit expenses’.
The Company has transactions with joint ventures and associates which are recognized as follows in the Company’s consolidated financial statements:
Related party transactions
|
Note |
2016 |
2015 |
|
|---|---|---|---|
|
Revenue |
10 |
56 |
|
|
Cost of sales |
(106) |
(222) |
|
|
Loans to joint ventures and associates |
215 |
299 |
|
|
Trade receivables |
164 |
204 |
|
|
Trade payables |
78 |
60 |
The Company has provided loans to joint ventures and associates such as shareholder loans and funding loans at rates comparable to the commercial rates of interest.
During the period, the Company entered into trading transactions with joint ventures and associates on terms equivalent to those that prevail in arm’s length transactions. The decrease of revenue mainly relates to the finalisation of the construction of the FPSOs Cidade de Marica, Cidade de Saquarema and Turitella. The decrease of cost of sales is mainly driven by lower transactions with the Brasa yard.
Additional information regarding the joint ventures and associates is available in 5.3.31 ‘Interest in Joint Ventures and Associates’.