NOTES TO THE FINANCIAL STATEMENTS
03. Segment information:// CONTINUED
REGULATED NETWORKS $000
INTER- SEGMENT $000
GAS TRADING $000
TECHNOLOGY $000
TOTAL $000
2017
External revenue: Sales
674,762 281,846 202,973
– 1,159,581
Third party contributions
61,220
– –
1,050
–
62,270
Intersegment revenue
5,963
9,972 (15,935)
–
Segment revenue
741,945 281,846 213,995 (15,935) 1,221,851
External expenses: Electricity transmission expenses
(212,620)
–
– –
– (212,620) – (181,744)
Gas purchases and production expenses
– (181,744)
Technology cost of sales Asset maintenance expenses Employee benefit expenses
–
–
(35,662) (14,366) (26,039) (13,027) (1,307) (90,401)
– – – –
(35,662) (85,267) (57,086) (66,531)
(50,877) (16,056) (31,661) (8,326) (319,540) 422,405 (103,512) 318,893
(20,024) (14,991) (21,843) (6,302) (244,904)
Other expenses
Intersegment expenses
15,935
–
Segment operating expenses
15,935 (638,910)
Segment EBITDA
36,942 123,594
– 582,941 – (187,426) – 395,515
Depreciation and amortisation
(15,127) 21,815
(68,787) 54,807
Segment profit/(loss)
Segment capital expenditure
210,624
32,651 104,335
– 347,610
In March 2017, the Technology segment granted an indefeasible right of use (“IRU”) to the Regulated Networks segment for the exclusive use of a network of fibre and fibre-associated telecommunications assets. The agreement is recognised as a finance lease and replaces the previous telecommunications services agreement between the two segments. The impact is a reduction in intersegment sales for the Technology segment and an equivalent reduction in intersegment expenses for the Regulated Networks segment. During the year, the Technology segment procured and sold $1.4 million of battery assets to Regulated Networks at zero margin. The battery assets are included in the segment capital expenditure for Regulated Networks. The impact of the sale transaction is not reflected in the segment information presented for Technology.
PROFIT/(LOSS) BEFORE INCOME TAX $000
Reconciliation to revenue, profit/(loss) before income tax and capital expenditure reported in the financial statements: 2017
CAPITAL EXPENDITURE $000
REVENUE $000
Reported in segment information
1,221,851
395,515
347,610
Amounts not allocated to segments (corporate activities): Revenue
4,802
4,802
– – – – – – –
Employee benefit expenses Other operating expenses Depreciation and amortisation
– – – – – – –
(25,770) (25,287) (12,140) (137,272)
Interest costs (net)
Fair value change on financial instruments Associates (share of net profit/(loss))
1,571 1,568
Capital expenditure
–
19,831 367,441
Reported in the financial statements
1,226,653
202,987
86
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