OIL TERMINAL - Notes of simplified interim financial...

OIL TERMINAL - Notes of simplified interim financial reports on 30 June 2015 (all amounts are expressed in lei (RON) if not mentioned otherwise)

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1. General information and main activities OIL TERMINAL

Oil Terminal S.A. Constanta is a stock company residing in Romania. The company has the social headquarter in Constanta, no.2, Caraiman str.

The company was founded according to Law 15/1990 and Romanian Government decision no.1200/12.11.1990, S.C.Oil Terminal S.A., being a stock company and was registered at Commerce Registrar Office of Constanta Court under no. J13/512/01.02.1991, having fiscal register code RO 2410163. OIL TERMINAL is the largest terminal for import/export of crude oil, petroleum and petrochemical products at a national level. According to the company’ statute, the object of activity contains services supplies regarding crude oil, petroleum and liquid chemical products storage, receiving, loading, discharging and conditioning from import/export and transit. Oil Terminal SA Constanta has a storage capacity of about 1.5 million cubic metric, being the largest operator by sea in Constanta port, representing a stategic location in the Black Sea area.. Oil Terminal is interconnected to Romanian refineries by transport company CONPET SA Ploiesti for crude oil transport from terminal to refineries, by underground pipelines, being part of national transport network. It also has connections to the railway national network, road network and the Danube-Black Sea channel. Its main internal market competitors are:

- Midia port terminal operated by SC Rompetrol Rafinare SA Constanta; - Terminal Unicom-Oil Terminal Galati; - Frial SA Constanta and Minmetal SA Constanta

The main external market competitors are: - Terminal of Omisalj port in Croatia, which undertook the total crude oil transit to Serbia; - Reni terminal.

The company has certificate for quality management received from Bureau Veritas Certification Holding SAS – UK Branch , available until 13 May 2018. The turnover achieved in semester I 2015 is 64,355,889 lei increasing than the previous year by 13,438,602 lei. The turnover distribution achieved by handled products in semester I 2015 by comparison with semester I 2014 is as followings:

Petroleum products 30 June 2015 (lei)

30 June 2014 (lei)

Crude oil 23,055,232 15,889,495 Gas oil 24,028,156 13,367, 03 Gasolene 5,061,576 4,765,281 Fuel oil 2,337,955 3,987,283 Chemical products 6,024,861 8,642,125 Jet oil 0 258,991 Residual products 236,947 248,984 Other products and services

3,611,162 3,757,325

TOTAL 64,355,889 50,917,287

The main economic financial indicators achieved by the company in semester I 2015 comparing to semester I 2014 are the followings:


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Indicator name 30 June 2015

30 June 2014

Current liquidity 1.91 1.09 Immediate liquidity 1.87 1.04 Rotation speed of clients debts (days) 32 39 Rotation speed of suppliers credits (days) 18 27 Rotation speed of intangible assets (rot) 0.14 0.11 Rotation speed of total assets (rot) 0.14 0.11 Rentability of the engaged capital (%) 2.87 (0.02) Result on base share (lei/share) 0.017668 (0.002420) Indicator regarding the interests recovery (number of times) 40.72 (0.19) Gross limit from sales (%) 19.90 (2)

On 30.06.2015, the employees average number is 974 employees, the employees effective number is 979, structured on training levels as followings:

- high training employees 175 from which 39 with management positions - medium/gymnasium training employees: 804 employees, from which 747 trained

stuff and 57 untrained stuff. Comparing with 30.06.2014, the employees number decreased by 69 employees, namely a decrease of 6.6%. Structure of employees expenses is as followings:

Indicator 30 June 2015 30 June 2014 Salaries, eal tickets, indemnities expenses 22,182,583 22,684,079 Expenses regarding the bonus of the profit participation 0 0 Insurances and social protection 5,315,578 6,414,689 Employees expenses 20,980,831 21,451,226 Employees average number 974 1,030

OIL TERMINAL SA’ executive management in the period 01.01.205-30.06.2015:

No. Name/first name Position 1. Viorel Sorin CIUTUREANU General Director 06.07.2012 - present 2. Cristian Dan POPESCU Deputy General Director 10.05.2013 – present 3. Adriana FRANGU Economic Director 10.07.2012 – present 4. Emil ROHAT Technical Director 01.01.2012 - present 5. Armando Traian ANDREŞOIU Logistics Repairs Director 10.07.2012 - present 4. Gabriel DARABAN Commercial Director 10.07.2012 - present

The indemnities of the Board of Directors’ members in the period 01.01.2015-30.06.2015 are in a total amount of 111,381 lei. On 30.06.2015, there are no recorded advances and credits given to the management entities. The company’ management is assured by a Board of Directors made of 7 members.


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In the period 01.01.2015-30.06.2015 the Board of Directors’ structure was:

No. Name/first name Birth date Profession Position

1. S.C. STAAR RATING SRL - Legal entity represented by Dan Cristian BARBULESCU

Manager 20.12.2013- present

In the period 20.02.2015-14.05.2015, he went on having the position of

manager, having in view the intervention request submitted by the

minor shareholder Broadhurst Investments Limited towards the

decision no.8/14.05.2015

2. Corin COMŞULEA 31.05.1974 Economist

Manager 24.11.2011-14.05.2015

In the period 24.11.2011-14.05.2015 he went on having the position of

manager, having in view the intervention request submitted by the

minor shareholder Broadhurst Investments Limited towards the

decision no.8/14.05.2015

3. Laurentiu Gabriel CIOCÎRLAN 24.11.1966 Economist

Manager 13.08.2014-20.02.2015

Board of Directors’ Chairman 12.09.2014-20.02.2015

4. Mihai Daniel ANITEI 16.12.1969 Engineer Manager

13.08.2014-20.02.2015

5. Valeriu IVAN 17.08.1968 Legal adviser Manager

13.08.2014-20.02.2015

6. Mihai Cristian CHEBAC 05.12.1967 Economist Manager

13.08.2014-20.02.2015

7. Anca Maria GHERMAN 18.09.1984 Economist Manager

13.08.2014-24.10.2014

8. Daniel Marius BOGDAN 30.11.1971 Engineer

Interim manager 12.11.2014-20.02.2015

Manager unrecorded in the Commerce registar office, AGOA

decision being blocked by the intervention request submitted by the shareholder Broadhurst Investments

Limited.

9. Daniel Marius Crisan 18.09.1961 Engineer

Manager 14.05.2015-present Board of Directors’ Chairman

appointed by BOD decision no. 27/29.05.2015


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10. Dumitru Matei 08.07.1965 Engineer

Manager unrecorded, in the Commerce registar office, AGOA

decision being blocked by the intervention request submitted by the shareholder Broadhurst Investments

Limited.

11. Toma Bogdan Costreie 13.11.1976 Legal adviser

Manager 14.05.2015-present Manager unrecorded, in the

Commerce registar office, AGOA decision being blocked by the

intervention request submitted by the shareholder Broadhurst Investments

Limited.

12. Cristian Florin Gheorghe 03.08.1975 Engineer

Manager 14.05.2015- present Manager unrecorded, in the



Limited.

13. Elena Daniela David 11.08.1976 Legal adviser




Limited.

14. Dan Paun 13.04.1964 Engineer




Limited.

By decision no. 3/20.02.2015 Shareholders General Ordinary Assembly cancels the Board of Directors appointed by AGOA decision no./13.08.2014, with the following structure:

CIOCIRLAN LAURENTIU-GABRIEL ANITEI MIHAI-DANIEL IVAN VALERIU CHEBAC MIHAI-CRISTIAN COMȘULEA CORIN SC STAAR RATING S.R.L.


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By Shareholders General Ordinary Assembly’ decision no. 4/20.02.2015, it appoints as Societatea OIL TERMINAL S.A.’ Board of Directors members for one year mandate or until appointment of Shareholders General Assembly’ new managers, according to stipulations of EGO no.109/2011 regarding the public companies’ corporate governance, with further alterations and additions, if this appointment comes before one year term’ completion, the followings:

COSTREIE TOMA-BOGDAN CRIȘAN DANIEL-MARIUS DAVID ELENA-DANIELA GHEORGHE CRISTIAN –FLORIN MATEI DUMITRU PĂUN DAN

By Shareholders General Ordinary Assembly’ decision no. 5/20.02.205, it approves that:’’according to provisions of art. 124 (4) of CNVM Regulation 1/2006 ’’the application of the cumulative voting method means to appoint the whole Board of Directors, made of at least five members, in the same AGA’’, it doesn’t designate the structure of a new Board of Directors by applying the cumulative voting method, according to Romanian Government Emergency Ordinance no.109/2011 regarding the the public companies’ corporate governance, with further alterations and additions’’ (the voting result being the following:

SC STAAR RATING SRL – 368,664,590 – cumulated votes MATEI DUMITRU – 258,048,182 – cumulated votes TICU NICULAE – 952,637 – cumulated votes ANITEI MIHAI DANIEL – 0 – cumulated votes BOGDAN DANIEL MARIUS – 0 – cumulated votes CHEBAC MIHAI-CRISTIAN – 0 – cumulated votes CIOCÎRLAN LAURENȚIU-GABRIEL – 0 – cumulated votes COMSULEA CORIN – 0 – cumulated votes IVAN VALERIU – 0 – cumulated votes NANCU DUMITRU – 0 – cumulated votes”.

By decision no. 6/20.02.2015 Shareholders General Ordinary Assembly decides to approve the settling of 09.03.2015 as registering date, according to provisions of art. 238, paragraph 1 of Law 297/2004 and settling of 06.03.2015 as ex date, according to provisions of Law no. 297/2004, of CNVM Regulation no. 1430/07.10.2014. In art. 2 of the same decision, the Assembly approves the empowerment of the meeting chairman to sign the Assembly’ decisions, in art.3, it approves the empowerment of the company general director to sign the necessary documents regarding the registering of Shareholders General Ordinary Assembly’ decisions at the Commerce Registrar Office of Constanta Court to effect the formalities to publish these decisions.

The Shareholders General Ordinary Assembly’ decision no. 5/20.02.2015 was registered at the Commerce Registrar on 11.03.2015 according to resolution 5619/10.03.2015. The decisions nos 3,4,6/20.02.2015 weren’t registered at the the Commerce Registrar Office of Constanta Court, as intervention requests were submitted by the shareholder Broadhurst Investments Ltd. Further the intervention requests submitted, the Commerce Registrar Office declined its competency for solving up for the mentions registering requests to Constanta Cout, Commercial Department, according to


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provisions of art. 7¹ of GEO no.116/2009 regarding some measures for the registering activity in the Commerce Registrar. Constanta Court, after having registered the three intervention requests, will give three file numbers for each case, namely 1502/118/2015, 1503/118/2015 and 1505/118/2015. Societatea OIL TERMINAL submitted a presidential ordinance to Constanta Court to the intervention request in own name submitted by shareholder Broadhust Investments Ltd against Shareholders General Ordinary Assembly’ decisions nos. 3,4,6 of 20.02.2015 having been registered under the file number 1542/118/2015. On the major shareholder, the Ministry of energy, small and medium companies and business environment’request and the shareholder Broadhurst Investments Limited’ request, managers still recorded at Commerce Registrar Office of Constanta Court, Dan Cristian Bărbulescu and Corin Comșulea, (managers Ciocirlan Laurentiu-Gabriel, Anitei Mihai-Daniel, Ivan Valeriu, Chebac Mihai-Cristian, Bogdan Daniel Marius submitted their resignations since 21.02.2015) convened the Shareholders General Ordinary Assembly on 14.(15).05.2015 with the following day agenda: 1. The completion of Oil Terminal SA’ Board of Directors’ members number. 2. The appointment of new members in Oil Terminal SA’ Board of Directors, by cumulative voting

method. 3. The settling of allowances for Oil Terminal SA’ Board of Directors’ members 4. The Chairman’ empowerment to sign the meeting’ documents.

3. The company’ general director’ empowerment to sign the necessary documents regarding the shareholders’ general asssembly’ decisions at the Commerce Office by Constanta County and to effect the formalities regarding these decisions’ publishing. 4. Settling the date 03.06.2015 as register date, according to art. 238, al.1 of Law no.297/2004 and settling of date 06.03.2015 as ex-date, according to art. 238, al.1 of Law no.297/2004, CNVM Regulation no.1/2006 and CNVM Regulation no.6/2009 together with ASF Decision no.1430/07.10.2014. On 14.05.2015, by Shareholders General Ordinay Assembly’ decision no. 8, it appointed, by the cumulative voting method, the Board of Directors’ following structure: ● COSTREIE TOMA BOGDAN ● CRIȘAN DANIEL MARIUS ● GHEORGHE CRISTIAN FLORIN ● DAVID ELENA DANIELA ● PĂUN DAN ● SC STAAR RATING SRL ● DUMITRU MATEI Together with the Shareholders General Ordinary Assembly’ decisions deposit on 14.05.2015, the Commerce Registrar Office recorded the managers’ mandate period, according to provisions of art. 17, paragraph 3 of the Constitutive Act, according to which the managers are appointed for a period not exceeding 4 years, their mandate being able to be renewed, if they accordingly achieved their obligations. In file no.1542/118/2015 regarding the presidential ordinance, Constanta Court noticed that the file had no object, as a new Board of Dorectors was appointed. Regarding files no. 1502/118/2015, no. 1503/118./2015 and no. 1505/118/2015 regarding the intervention requests submitted by Broadhurst Investments Limited, we’d like to have the following mentionings:

- in file no.1502/118/2015, Constanta Court, by civil sentence no. 306/03.06.2015 rejected the intervention request submitted by Broadhurst Investments Limited as unfounded and admitted the mentionings recording request submitted by Societatea


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Oil Terminal SA regarding the managers’ appointment according to AGOA’decision no.4 of 20.02.2015.

- in file no.1503/118/2015, Constanta Court, by civil sentence no. 1693/18.06.2015 rejected the intervention request submitted by Broadhurst Investments Limited, as unfounded and admitted the the mentionings recording request submitted by Societatea Oil Terminal SA regarding the managers’ appointment according to AGOA’decision no.3 of 20.02.2015.

- in file no. 1505/118/2015, having as object the intervention request against AGOA’ decision mo.6/20.02.2015 regarding the settling of 09.03.2015 as registering date, according to provisions of art. 238, paragraph 1 of Law 297/2004 and settling of 06.03.2015 as ex date, according to provisions of Law no. 297/2004, of CNVM Regulation no. 1430/07.10.2014, Constanta court gave hearings for 24.09.2015.

OIL Terminal has no relationships with branches or associated entities and doesn’t have any significant shares in other companies. The only titles owned in the company Pan European Oil Pipeline – the Company of the project’ development (PEOP-PDC), in an amount of 170,972 lei, representing 350 shares at the nominal value of 100 sterling pounds, on short term.

2. Significant accountant policies

The accountant policies applied in these simplified interim financial reports are the same as those applied in the company’ financial reports on the date and for the financial year ended on 31 December 2014. The simplified interim financial reports for semester I 2015 are not audited and haven’t been reviewed by an external auditor. 2.1 Conformity Statement These financial reports were issued according to International Standards of Financial Report IAS 34 the Interim financial reporting. These don’t include all necessary information for a full set of financial reports according to International Standards of Financial Reporting (‘’IFRS’’). Nevertheless, some Explanatory notes are included to explain the significant events and transactions to understand the alterations occurred in the company’ financial position and performance in the last financial reports. These simplified interim financial reports concluded on 30 June 2015 give a correct and realistic image according to assets, obligations, financial position and overall result’ reality of Oil Terminal, as provided in applicable accountant standards, and the information presented give a correct, according to reality image of the main events that occurred in semester I 2015 and their impact on the simplified interim financial reports. The simplified interim financial reports were issued according to the activity’ going on principle. OIL TERMINAL is not a part of entities group, under a parent company.

2.2. The evaluation bases The preparation of these simplified interim financial reports means to use some reasonings,

estimations and hypotheses by the management, affecting the application of accountant policies and the assets, debts, revenues and expenses’ recognized value. The effective results can be different than these estimations.

The significant reasonings used by the management to apply the company’ accountant policies and the uncertainty main sources regarding the estimations were the same as those applied to the financial reports for the financial year ended on 31 December 2014.

The financial reports are issued at hystorical cost, altered to include the tangible and intangible assets’ rerevaluation, regulated according to IAS 29- Financial reporting in hyperinflationary economies –


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until 31 December 2003. Since 1 January 2004, Romania’ economy has not been considered as being a hyperinflationary one. The company ceased to apply IAS 29 since this date.

2.3 Functional and presentation currency These reports are presented in lei, this being the company’ functional currency. All financial

information is in lei, rounded to integer if not mentioned otherwise. 2.4 Use of estimations and professional reasonings The preparation of the financial reports according to IFRS supposes the management’ use of some

estimations, judgements and suppositions affecting the accountant policies application and the assets, debts, revenues and expenses’reported value. The estimations and suppositions associated to these estimations are based on the hystorical experience and on other reasonable factors in the context of these estimations. The results of these estimations is the base of the judgements regarding the assets and debts’ accountant values not being got from other information sources. The current results can be different from the estimations values. The estimations are periodically reviewed and if regulations are necessary, these are reported in the profit and loss account for the period in which they become known. Nevertheless, the estimations’ uncertainty can generate results different from the initial estimations and can lead to the assets and debts accountant value’ significant regulations in the future periods. Management thinks that, any exception of these estimations won’t have a significant influence on the financial reports in coming future.

According to IAS 36, either the tangible or the intangible assets are analysed on the balance date to identify if there are impairment indications. If there are signs that a loss from impairment occurred, the company estimates the recoverable value of the unit generating cash or of the asset. The recoverable value is the maximum between the use value and the sale one less the costs related to the sale. In most cases, the company estimates the use value. The use value calculation is based on budgets and prospectives, needing a series of estimations and hypotheses as: products future prices and/or raw limits, increase rates, inflation indexes, exchange rates, updating rates, etc.

2.5. Hypotheses In the process to apply the company’ accountant policies, management didn’t make significant

hypotheses, besides those involving estimations of provisions for receivables, stocks and litigations, with significant effect on the financial reports values.

Until 31 December 2003, regulations were made in view to reflect the application of IAS 29. Monetary asssets and liabilities The monetary assets and liabilities weren’t reevaluated in view to apply IAS 29, as these are already

expressed comparing to the current monetary unit on the balance sheet date. Nonmonetary assets and liabilities and own capitals From this category, the own capitals components were retreated applying the inflation rate of the

month in which the own capitals were initially recorded in the financial reports until 31 December 2003. 2.6 Transactions in foreign currency Transactions in foreign currency are changed into the company’ functional currency using the

exchange rate of the trade date. The monetary assets and the denominated debts in the foreign currency on the balance sheet issue

date are changed into the functional currency by an exchange rate on the balance sheet date. The exchange rates differencies are recorded in the profit and loss account. The non monetary asssets and liabilities, presented startibg the hystorical cost in foreign currency are

changed using the exchange rate on the trade date. On 30.06.2015, namely 30.06.2014 the official exchange used for balance’ conversion into foreign

currency are:


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Currency 30 June 2015 30

June 2014

1 SWISS FRANC CHF 4.3021 3.6097 1 EURO EUR 4.4735 4.3870 1 STERLING POUND GBP 6.2896 5.4701 1 USA DOLLAR USD 3.9969 3.2138

3. Revenues from operating – supplied services The revenues achieved by the company are reported at the following values level:

30 June 2015

31 June 2014

Revenues from service supplies

63,315,032

49,453,068

Revenues from goods use leasing

182,657

387,634

Revenues from various activities

402,199

404579

Total revenues from serices supplies 63,899,887 50,245,281

4. Revenues from residual products sale

30 June 2015

30 June 2014 Revenues from residual products sale (recovered fuel type A) 236,947

248,984

Revenues from other wastes recovery 219,055

423,022

Revenues from residual products sale

(63,480)

(255,352) Total revenues from residual products sale 392,522 416,654 5. Other revenues from operations

30 June 2015

31 June 2014 Revenues from subventions - - Revenues from regulations for clients’ receivables

148,232 41,256

Expenses for impairment of clients’ receivables (1,346,974) (1,205,820) Net provisions for receivables (1,198,742) (1,164,564)


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Revenues from immobilizations 29,294

-

Revenues from penalties 107,610

298,838

Revenues from provisions reversal 2,274,820

2,391

Expenses regarding provisions (910,276)

(249,005)

Net regulations for provisions 1,364,544

(246,614)

Revenues from regulations for stocks 16,327

-

Expenses for stocks’ impairment (10,429)

-

Net regulations for stocks’ impairment 5,898

- Other revenues from operation 269,531

364,646

Total revenues from operation 578,135 (747,694) 6. Financial revenues

30 June 2015

30 June 2014 Revenues from interests 50,016 10,478 Revenues from exchange currency rate differencies 252,317

40,493

Revenues from given discount 5,391

5,586

Expenses with given discounts -

-

Other financial revenues -

228 Total financial revenues 307,724 56,785

Expenses regarding the paid interests (322,497)

(465,647)

Expenses from exchange rate differencies (148,733)

(72,642)

Expenses with given discounts -

-

Other financial expenses -

(2,476)

Total financial expenses (471,230)

(540,765)

Net financial results (163,506)

(483,980)


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7. Raw products and materials expenses

30 June 2015

30 June 2014 Additional materials expenses 775,597 453,836 Depreciations for additional materials - - Fuels expenses 715,613 788,510 Packing stuff expenses 30,284 21,173 Spare parts expenses 249,533 83,830 Depreciations for spare parts - - Other supplies expenses 365,754 292,543 Depreciations for other supplies - - Inventory objects expenses 412,099 325,482 Depreciations for inventory objects - - Unstocked stuff expenses 11,892 6,628 Total Raw products and materials expenses 2,560,772 1,972,002 8. Power and water expenses

30 June 2015

30 June 2014 Water consumption expenses 549,067 756,589 Electric power consumption expenses 1,789,256 1,702,683 Total Power and water expenses 2,338,323 2,459,272 9. Staff expenses

30 June 2015

30 June 2014

Managers salaries expenses

83,340

83,340

Employees salaries expenses

20,980,831 21,451,226 Expenses regarding bonus for profit participation - -

Expenses regarding the meal tickets given

1,004,251 1,018,125 Expenses regarding contribution to social insurances fund

3,636,683

4,803,972

Expenses regarding contribution to health fund

1,100,261

1,125,637

Expenses regarding contribution to unemployment

157,874 161,513


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Other expenses regarding the insurances and social protection

420,760

323,567

Total salaries expenses 27,384,000 28,967,380 10. Third parties supplied services expenses

30 June 2015

30 June 2014 Expenses regarding various services supplied by third parties 5,337,131 5,452,531 BOD and AGA indemnities expenses 114,161 131,388 Phone supplies services expenses 155,120 142,549 Bank supplies services expenses 49,501 47,872 Commissions and fees expenses 54,151 71,567 Total third parties supplied services expenses 5,710,064 5,845,907 11. Immobilizations amortization expenses

30 June 2015

30 June 2014

Intangible assets amortization expenses 151,244 133,870 Tangible assets amortization expenses, from which: 5,587,574 5,684,579 Buildings and buildings facilites 4,059,117 4,189,201 Technical facilities, technological equipments 1,221,939 1,170,128 Furniture and other immobilizations 306,518 325,250 Total immobilizations amortization expenses 5,738,818 5,818,449 12. Other operation expenses

30 June 2015

30 June 2014 Repairs expenses 1,016,754 178,370 Maintenance expenses 1,200,204 727,333 Royalties expenses 2,507,276 1,690,554 Hires and administrative locations expenses 1,132,481 883,833 Insurance premium expenses 106,156 130,875 Training and research expenses 81,058 29,500 Advertising expenses 106,792 92,091 Protocol expenses 15,632 28,751 Movement/travel expenses 11,318 3,413 Expenses regarding other taxes and fees 125,574 54,245 Losses from receivables 1,139,528 1,514,153 Expenses regarding the donations given - - Compensations, fines, penalties expenses - - Other expenses from operation 712,450 300


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Expenses from intangible assets reevaluation 10,394 51,417 Total other operation expenses 8,165,617 5,384,835 13. Expenses regarding the tax on profit

30 June 2015

31 June 2014 Current tax expenses 2,518,863 444,802 Postponed tax on expenses/( revenues) - - Total expenses regarding the tax on profit 2,518,863 444,802 The company recorded, in semester I 2015 tax on profit costs on the current activity and on the differencies from reevaluation, transferred on the amortization expenses during the year, taxable in the profit tax calculation. In semester I 2015, the company didn’t record a delayed tax expense or income. On the 30th June 2015, the company records a gross profit in an amount of 12,809,444 lei. The fiscal profit in semester I 2015 calculated according to provisions of Law 571/2003 regarding the Fiscal Code, with further alterations and additions is in a value of 15,742,893 lei.

Tax on profit calculated on the fiscal profit is in semester I 2015 in an amount of 2,518,863 lei,

and in semester I 2014 in an amount of 444,802 lei, as followings:

31 June 2015

30 June 2014

Accounting profit 12,809,444 (1,017,584) Elements similar to revenues - - Nontaxable revenues 2,439,379 43,647 Deductions from legal reserve 640,472 0 Nondeductible expenses 6,013,300 3,841,244 Total taxable profit 15,742,893 2,780,013 Tax on profit (16%) 2,518,863 444,802 Amounts representing sponsorhip in legal limits - - Tax on yearly profit 2,518,863 444,802 In semester I 2015, there was no recorded delayed profit tax on own capitals, the delayed profit total value, constituted on own capitals is of 25,943,248 lei. On 31st December 2014, a delayed profit tax related to reserves from reevaluation, for 2011-2014 on own capitals in an amount of 25,943,248 lei, by account ‘’reported result from accountant errors correction’’ was recorded according to IAS 8 ‘’ Accountant policies, alterations of accountant estimations and errors’’. 14.Information on segments

Oil Terminal SA has only one reporting segment, namely services supplies regarding receiving, storage, conditioning and dispatch of crude oil, fuel oil, petroleum, petrochemical and liquid chemical products for import, export and transit.

Total revenues from supplied services


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30 June 2015

30 June 2014

Δ %

Services supplies regarding receiving, storage, conditioning and dispatch of crude oil, fuel oil, petroleum, petrochemical and liquid chemical products.

100,080,439 5

Services supplies for external clients

Country 30 June 2015

30 June 2014

Δ %

Switzerland 6,552,432 5,114,259 28

Germany 1,134,069 637,799 78

Virgin Islands - 460,544 -

Bulgaria 92,827 - -

Cyprus 476,841 15,333 3,110

Poland 29,519 - -

Oil Terminal SA ‘ main clients

30 June 2015

30 June 2014

Client name Country Invoiced

value % Invoiced value %

PETROTEL LUKOIL Romania 24,938,854 32.88 21,739,375 36.70

OMV PETROM Romania 11,213,059 14.78 9,336,790 15.76

MOL ROMANIA PETROLEUM PRODUCTS Romania 8,442,847 11.13 2,114,048 3.57

OSCAR DOWNSTREAM Romania 7,293,796 9.62 6,084,465 10.27

ROMPETROL RAFINARE Romania 7,019,461 9.25 1,687,143 2.85


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VITOL Switzerland 3,328,838 4.39 4,535,493 7.66

EURONOVA ENERGIES Switzerland 1,855,609 2.45 337.,778 0.57

INTERAGRO Romania 1,541,584 2.03 4,282,814 7.23

CHIMCOMPLEX Romania 1,453,248 1.92 1,444,356 2.44

ISLAND PETROLEUM Romania 688,042 0.91 864,114 1.46

KRONOSPAN Romania 708,061 0.93 792,515 1.34

15. Tangible assets

Gross values Fields and buildings

Technical facilities and equipments

Other facilities, equipments and

furniture Total

Balance on the 01 January 2015 417,109,415

20,601,336

4,106,486

441,817,237

Transfers from going on assets 609,411

651,259 24,600

1,285,270 Increases from acquisitions - - - - Inventory additions of tangible assets - - - - Cancelled accumulated amortization - - - - Surplus from reevaluation - - - -

Value losses reversed on capital (consumed reserves from reevaluation) - - - - Reversed value losses in profit and loss account - - - - Outputs - (2,172) - (2,172) Transfers to real estates investments

Balance on the 30th June 2015 417,718,826

21,250,423 4,131, 86

443,100,335


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Amortizations Fields and buildings

Technical facilities and equipments

Other facilities, equipments and

furniture Total

Balance on the 01st June 2015 -

- - -

Amortizations in 2015 4,059,117

1,221,939 306,518

5,587,574 Accumulated amortization cancellation - - - - Output accumulated amortization - - - - Losses/ reversals from value decrease - - - -

Balance on the 30th June 2015 4,059,117

1,221,939 306,518 5,587,574 Net value Balance on the 30 June 2015

Balance on the 30 June 2015 417,109,415

20,601,336

4,106,486

441,817,237

413,659,709

20,028,484 3,824,568 437,512,761 The intangible assets are presented in the financial reports at the reevaluated value, less the amortizations and regulations for impairment or value loss, according to IAS 16 – tangible assets and IAS 36 – immobilizations impairment. Reevaluation at the fair value on 31.12.2014 was recorded according to an Evaluation Report, issued by an authorized assessor, member of ANEVAR. The fair value, as determined, on 30.06.2015, revealed by reevaluated value is as followings: Fields 297,626,435 lei Constructions group 116,033,274 lei Technical facilities and cars 20,028,484 lei Other facilities, equipment and furniture 3,824,568 lei Tangible assets going on 6,664,130 lei

The company has in its patrimony the folloeing fields: - field in a surface of 945,892.79 sqm registered according to propriety title series MO3 no.

3285/19.11.1196 located in South Storage Farm, in an amount of 49,447,098 lei - field in a surface of 413,413.16 sqm got in 2003 according to propriety title series MO 3 no.

8448/16.04.20013 located in North Storage Farm, in an amount of 60,083,682 lei - field got in 2004 according to sale-purchase contract no.181/20.01.2004 concluded with

Constanta City Hall, in a surface of 243,912.70 sqm located in North Storage Farm, in an amount of 31,904,296 lei


Page 17 of 47

- field in a surface of 254,261.3 sqm, got in 2011, according to propriety title series MO3 no. 11703/02.02.2011, located in North Storage Farm, in an amount of 103,529,284 lei

- field in a surface of 129,334.70 sqm got in 2011 according to propriety title series MO 3 no. 11704/02.02.20011 located in North Storage Farm, in an amount of 52,662,075 lei

16. Tangible assets in execution Assets in execution in an amount of 6,664,130 lei represent uncompleted investments on 30.06.2015, from which:

Investments according OIL TERMINAL’

program

Investments achieved according

Oil Agreement* Total

Balance on the 01st January 2015 3,919,471 423,696

4,343,167

Increases during year 3,496,624 109,610

3,606,234

Transfers in tangible assets (1,285,271) -

(1,285,271) Balance on 30th June 2015 6,130,824 533,306 6,664,130 *Assets going on from investments expenses according to Oil Agreement of shoretanks, crude oil and petroleum produsts, pumping facilities and other facilities and equipments related to them activity’leasing, concluded wth the National Agency of Mineral Resources Bucharest. The total investments expenses value in semester I 2015 is 3,606,234 lei, from which the main investments objectives are:

Technological pipelines, caustic soda connection pipelines and waste waters pipelines Port

Storage Farm – 2,795,628 Rehabilitation power supply and firefighting Silvani no.3 jetty 76 Port Storage Farm -224,568 lei Shoretank T38’ upgrading – 109,610 lei Engine rehabilitation LDE 1250 HP – 88,184 lei Fuel oil P1 and P2’ rehabilitation in undercrossing of road triangle area P6 – 68,805 lei Equipment video system – 57,609 lei Anticorrosion protection of coat and fixed roof for 1000 CM shoretanks M53 S and M 54 S –

43,194 lei Upgrading of shoretank M22 S 31,500 CM capacity South Storage Farm – 38,500 lei

17. Intangible assets


Page 18 of 47

Gross values Licenses/patents Leases Other intangible

assets Total Balance on the 01st January 2015 -

3,133,762

540,883

3,674,645

Increases from acquisitions - - 6.643 6,643 Increases from retreatments IFRS - - - - Surplus from reevaluation - - - - Decreases from ouputs - - (17,481) (17,481) Postponned accumulated amortization - - - - Reversed value losses in profit and loss account - - - -

Balance on the 30th June 2015 -

3,133,762 530,045 3,663,807

Amortizations and impairments Licenses/patents Leases

Other intangible assets Total

Balance on the la 01st January 2015 - - - -

Amortization in period - -

151,244

151,244 Recorded impairments - - - - Amortization related to outputs - - (17,481) (17,481) Cancellation of accumulated amortization - - - -

Balance on the 30th June 2015 - -

133,763

133,763 Net value Balance on the 01st January 2015 Balance on the 30th June 2015

Intangible assets, are informatic/licences programs, purchased from third parties and oil leasing

concluded with the National Agency for Mineral Resources. Following the leasing contract analysis, approved by GD 886/16.08.2002, leasing recognition

terms as intangible assets are met according to IAS 38- intagible assets and clarifications given by IFRIC 12.

So, the intangible asset was recognized – leasing, in its fair value of 3,034,941 lei, recorded in accountant book on 31.12.2012, according to Evaluation report issued by an authorized assesssor, member of ANEVAR. The leasing useful lifetime is undetermined, according to item 88 of IAS 38 – Intangible assets, so this is not amortizable.


Page 19 of 47

Intangible assets are presented in financial reports at the reevaluated value, less the amortizations and regulations for impairment or value loss, according to IAS 38 - intangible assets and IAS 36- assets impairment.

Reevaluation at fair value on 31.12.2014 was recorded according to an Evaluation Report by an authorized assesssor, member of ANEVAR.

The fair value, so determined, on 30.06.2015, pointed out by the reevaluated value method is as followings:

- leasing Oil Agreement 3.133.762 lei - informatic/ licences programs 396,282 lei

18. Financial assets

30th June 2015 31st December

2014 Other immobilized titles 170,972 170,972 Guarantees given to suppliers 4,582 3,564 Other immobilizations - 5,920,765 Total financial assets 175,554 6,095,301 In 2009, Oil Terminal participated with 350 shares at the nominal value of 100 sterling pounds at the social capital of the company Pan European Pipeline – Project Development Company (PEOP-PDC), in a total amount of 170,972 lei. The shares owned by the company Pan European Pipeline – Project Development Company (PEOP-PDC) are investments kept until Oil Terminal SA’ Shareholders General Assembly reaches a decision regarding this investment. The participation percentage owned by Oil Terminal SA is 25% (35,000 GBP) from the social capital. 19. Stocks

30th June 2015

31 December 2014 Additional materials 376,583 139,144 Fuel oils 47,753 23,903 Package stuff 15,708 15,559 Spare parts 38,401 50,149 Other consumables 69,070 84,938 Inventory objects stuff 81,127 125,741 Residual products 40,120 107,643 Regulations for consumables (73,072) (72,771)

Regulations for inventory objects (2,072) (1,035) Regulations for residual products - (7,235) Consumables to be supplied - 848 Advances given for stocks’ acquisition - - Total stocks 593,618 466,884


Page 20 of 47

Stocks without movement, in balance on 30.06.2015 are 75,144 lei, for which regulations for the

materials impairment were constituted. In semester I 2015 the company recorded regulations for stocks impairmen as followings:

30th June 2015

31st December

2014 Regulations balance for stocks impairment on the 1st January 2015 81,041 120,202 Constitutions in year 10,430 3,332 Reversals in year (16,327) (42,493) Regulations balance on 30th June 2015 75,144 81,041

20. Clients and assimilated accounts

30th June 2015

31st December 2014 Clients issued invoices, to collect 11,575,988 10,976,619 Uncertain clients and in litigation 4,864,105 3,665,363 Clients invoices to be issued 310,252 1,260 Regulations for clients’ receivables impairment (4,864,104) (3,665,363) Total clients 11,886,241 10,977,879

The clients situation – invoices issued to be collected in an amount of 11,575,988 lei in balance on

the 30th June 2015, is classified on period of time, as followings: Clients’ receivables not exceeding the due payment

date 11,466,699 lei

Clients’ receivables with exceeded due time between 1– 30 days

93,218 lei

Clients’ receivables with exceeded due time between 31 - 60 days

15,827 lei

Clients’ receivables with exceeded due time between 61 – 90 days

244 lei

The uncertain clients recorded on 30.06.20145 are in a total amount of 4,864,104 lei. For uncertain clients, the company constituted regulations for the clients receivables impairment for the total amount VAT included.

In semester I 2015, the company recorded regulations from clients receivables impairment, as followings:

30th June 2015 31st December 2014

Provision balance for impairment on the 1st January 3,665,363 2,207,962 Constitutions in year 1,346,973 1,615,323


Page 21 of 47

Reversals in year (148,232) (157,922)

Provision balance from impairment at the period end 4,864,104 3,665,363 21. Oher receivables and expenses in advance

30th June 2015

31st June 2014 Different debtors 1,206,165 1,190,950 Regulations for debtors receivables impairment - - Advances given to clients for services - - Expenses recorded in advance 137,860 101,217 Other receivables 213,916 377,510 Total other receivables 1,557,941 1,669,677 Taxes and fees to be recovered

30th June 2015

31st December 2014 Tax on profit - - Taxes tranport ways 300 40 Company taxes 658 - Total 958 40 22. Cash and cash equivalent

30th June 2015

31st December 2014

Available in lei in bank current accounts 9,201,676 472,975 Available in foreign currency in bank current accounts 4,103,250 81,709 Effects to be collected - - Cash flows given to employees - - Other values 8,794 16,210 Available in cash 5,114 2,642 Total cash and equivalents 13,318,834 573,536 The are no restrictions on the monetary availability accounts

23. Social capital


Page 22 of 47

Number of shares Social capital Statutory social capital 582,430,250 58,243,025 Total capital 582,430,250 58,243,025 The social capital structure on the 30th June 2015 is the following:

Shareholder Number of

shares Total nominal

value Possession

%

The Economy Ministry 347,257,973 34,725,797 59.62 Fund Proprietatea SA 36.796,026 3,679,603 6.32 Legal persons 102,162,782 10,216,278 17.54 Physical persons 96,213,472 9,621,347 16.52 Total capital 582,430,253 58,243,025 100 Romanian State represented by the Ministry of Energy, Small and Medium Companies and Business Environment is the main shareholder and owns 59.62% of the social capital. The subscribed and paid social capital is 58,243,025 lei divided in 582,430,253 shares with a nominal value of 0.10 lei/share, on the 30th June 2015, and on the 31st December 2014. Each share gives to its owner the right of only one vote.

SC OIL TERMINAL SA is a company quoted in Bucharest Stock Exchange. The shares were traded at 0.0865 lei/share on the 30th June 2015 and at 0.0893 lei/share on 30th December 2014.. The unpaid dividends value on the 30th June 2015 is 34,855 lei, representing the unpaid dividends from the previous years from which physical persons 32,170 lei and legal persons 2,685 lei. 24. Other elements of own capital

30th June 2015

31st December 2014 IAS 29 regulations related to legal reserve - - Related postponed tax - - IAS 29 regulations other reserves - - Related postponed tax - -

Recognized postponed tax on own capitals

(33,609)

(33,609) Other elements of own capitals 3,034,941 3,034,941 Total other elements of own capitals 3,001,332 3,001,332

On 30th June 2015 and 31st December2014, other elements of own capitals remain in balance, the

followings:


Page 23 of 47

- 3,034,941 lei representing the counterparty of intangible asset recognition – leasing oil agreement, approved by G.O. 886/2002

- (33,609) lei representing delayed profit tax constituted on own capitala, from which delayed tax for the reserves from reevaluation for 2014 in an amount of (103,883) lei and delayed profit tax recorded in 2012 for fiscal facilities in an amount of 70,274 lei.

25. Reserves from reevaluation 30th June

2015

31st December 2014

Reserves from tangible assets reevaluation 197,406,053 197,406,053 Total reserves from reevaluation 197,406,053 197,406,053

The total value of the reserves from reevaluation in balance on 30th June 2015 and on 31st

December 2014 of 197,406,053 lei, contains: - reserve from reevaluation related to fields of 121,314,042 lei - reserve from reevaluation related to tangible assets of 75,956,470 lei - reserve from reevaluation related to intangible assets representing licenses, representing rights granted

by Leasing Oil Agreement, concluded with A.N.R.M. approved by GD 886/16.08.2002 is of 98,821 lei.

- reserve from reevaluation of intangible assets representing licenses of 36,720 lei. 26. Reported result a. Reported result representing the surplus achieved from reevaluation reserves:

30th June 2015

31st December

2014

Reported result representing surplus achieved from reevaluation reserves

3,209,102

3,155,710 Total surplus achieved from reevaluation reserves 3,209,102 3,155,710

Reevaluation surplus achieved from reevaluation reserves was constituted by passing to the reported result of the reevaluation difference related to tangible assets to their derecognition.

In semester I 2015, no surplus, achieved from reevaluaion reserves was recorded. In semester I 2014, a surplus, achieved from reevaluation reserves in a value of 53,146 lei, was

recorded, for tangible assets outputs.

b. Reported result arisen from IAS adoption for the first time, less IAS 29


Page 24 of 47

30th June 2015

31st December

2014 Reported result arisen from IAS adoption for the first time, less IAS 29

396,930 396,930

Total reported result arisen from IAS adoption for the first time, less IAS 29 396,930 396,930 The amount of 396,930 lei representing retreatments from IAS adoption for the first time, less IAS 29, for 2000, according to Order no.94/2001 for approval of Accountant Regulations together with Directive IV of European Economic Communities and the Accountant International Standards. For 2000, the balance sheets issued according to Finences Ministry no. 403/1999 for reapproval of Accountant Regulations together with Directive IV of European Economic Communities and the Accountant International Standards were restated, according to Order no. 94/2001 for appoval of Accountant Regulations together with Directive IV of European Economic Communities and the Accountant International Standards. c. Reported result arisen from accountant errors correction On 30th June 2015 and 31 December 2014, the balance of the reported account arisen from accountant errors correction is as followings:

30th June 2015

31 December 2014

Reported result arisen from accountant errors correction

(25,839,366) (25,839,366)

Total of reported result arisen from accountant errors correction (25,839,366) (25,839,366) The value of (25,839,366) recorded on 31.12.2014 remains in balance and on 30th June 2015. This value was recorded on 31st December 2014 according to IAS 8 ’’ Accountant policies, alterations of accountant estimations and errors’’ and represents delayed profit tax in an amount of 25,839,366 lei, related to reevaluation reserves for 2011-2013 on own capitals, by account ’’reported result arisen from accountant errors correction’’ , as followings: Year ended on

31st December 2013

Year ended on 31st December

2012

Year ended on 31st December

2011 Reported result (8,077,133) (8,242,884) (9,519,349)


Page 25 of 47

arisen from accountant errors correction d. Result reported representing the undistributed profit On 30.06.2015, the resulted account balance arisen from undistributed profit is of 565,475 lei representing the net profit of 2014 remained in balance on the period end. In July 2015, according to Shareholders General Ordinary Assembly Decision no. 11/08.07.2015, the net profit distribution for 2014 will be recorded as followings: - legal reserves 112,727 lei - other reserves representing fiscal facilities 16,244 lei - dividends due to shareholders 261,903 lei - own financing source 174,601 lei

27. Legal reserves and other reserves

30th June 2015

31st December

2014 Legal reserves 3,040,813 3,040,813 Other reserves 171,252,482 171,252,482 Total reserves 174,293,295 174,293,295 The legal reserves in an amount of 3,040,813 lei in balance on 30 June 2015 are equal to those recorded on the previous year end. Oil Terminal yearly transfers to legal reserve at least 5% from the book yearly profit, according to AGA decision and to Law 31/1990, Law 571/2003 and GO 64/2001 provisions, until the accumulated balance reaches 20% from the paid social capital. Other reserves in balance on 30th June 2015 are in amount of 171,252,482 lei, from which: - reserves constituted fro the profit distributed for own financing source constitution according to AGA

decisions, in an amount of 19,094,544 lei; - reserves from fiscal facilities in an amount of 368,938 lei; - recognized fields on the reserves from which the propriety titles were got in 2011 in an amount of

151,789,000 lei, namely: field in a surface of 254,261.3 sqm, got in 2011, according to propriety tiltle series MO3

no. 11703/02.02.2011, located in North Storage Farm, in an amount of 100,611,000 lei. field in a surface of 129,334.70 sqm, got in 2011, according to propriety tiltle series MO3 no.

11704/02.02.2011, located in North Storage Farm, in an amount of 51,178,000 lei. For these 2 fields, the social capital increasing procedure is going on, provided by GD no. 834/1991.

28. Debts on long term a.Loans on long term

30th June 2015

31 December 2014 Loans on long term 2,837,406 3,648,093


Page 26 of 47

Contract no. 40012/2011 Raiffeisen Bank (1,621,375) (1,621,375) Minus current part 10,200,000 10,200,000

Contract no C12002013014745/05.09.2013 OTP Bank (investments credit) (1,062,500) (425,000) Minus current part 10,353,531 11,801,718

Total loans on long term The reported loans on long term are generated by the following below-mentioned contracts: Creditor Currency Due date Reimbursement Interest Guarantee 31.12.2014 30.06.2015 1.Contract no 40012/2011 Raiffeisen Bank* lei 25.03.2017 Monthly rates

ROBOR at 1 month plus limit

Mortgage and real estate

guarantee 3,648,093 2,837,406 *Additional Act no. 1/2012 of the credit facility contract on term no. 40012/2011 * Additional Act no. 2/2012 of the credit facility contract on term no. 40012/2011 * Additional Act no. 2/2012 of the credit facility contract on term no. 40012/2011 On 29.03.2011, the company signed with Raiffeisen Bank SA a term credit facility contract, to

finance the building of a 10,000 CM shoretank in Port Storage Farm, in an amount of 8,067,135 lei with reimbursement term up to 25.03.2017

The shoretank’ building was completed in 2012. SC OIL TERMINAL SA constituted in Raiffeisen Bank SA’ favour the following guarantees:

Prime mortgage priority on the building on Oil Terminal’ propriety, located in Constanta, no.2, Caraiman str., in a surface of 19,900 sqm and buildings C343, C346-C350, C353-C355, C357, C359, C360 in a totall built surface of 9,625 sqm, with cadastral number 116119 registered in Constanta’ Land Registrar with no. 160526.

Pledge on present and future availabilities of Oil Terminal SA’ accounts opened or to be opened at Raiffeisen Bank. In 2012, it occurred the withdrawal from the loan contracted with Raiffeisen Bank.

In 2012, the withdrawal from the contracted loan with Raiffeisen Bank was completed, the balance of this loan on 30.06.2015 is 2,837,406 lei.

Creditor Currency Due date Reimbursement Interest Guarantee 01.01.2014 31.12.2014 2.Contract no. C12002013014745 of 05.09.2013 OTP Bank Romania* lei 01.09.2023 Monthly rates

ROBOR on 3 months plus limit

Mortgage and real estate

guarantee 10,200,000 10,200,000


Page 27 of 47

*Additional Act no. 1/2013/23.09.2013 of the investments credit contract no. C12002013014745 * Additional Act no. 2/2013/14.10.2013 of the investments credit contract no. C12002013014745

On 05.09.2013 the company signed with OTP Bank Romania an investment credit contract, to finance/refinance the expenses of upgrading shoretank 28 in South Storage Farm, being state public domain, according to Oil Agreement approved by HG 886/2002, in an amount of 10,200,000 lei with reimbursement term until 01.09.2023 and a grace period until 31.08.2015. The shoretank upgrading was completed in 2013.

SC OIL TERMINAL SA constituted in OTP Bank Romania the following guarantees: a) Security mortgage on the accounts opened by client at bank b) Mortgage on the building plot, category of use yards-buildings in a

surface of 12,916 sqm, located in Constanta county, no.2, Caraiman str. Noth Storage Farm I, Constanta county parcel 3, identified with cadastral number 214855 registered at Constanta Land Registrar with number 214855, together with its buildings , in a total built surface of 913 sqm as follows:

-C 394 ‘’Ghena’’ identified with cadastral umber 214855-C1 -C395 – ‘’Administrative building’’ identified with cadastral number 214855-C2 - C 396 ‘’Greenhouses’’ with cadastral number 214855-C3 -C397 ‘’ Greenhouses’’ with cadastral number 214855-C4 SC OIL TERMINAL SA propriety

c) Mortgage on the building plot, category of use yards-buildings in a surface of 23,141 sqm, located in Constanta, no.2 Caraiman str., Constanta County, parcel 2, identified with cadastral number 211722 registered at Constanta Land Registrar with number 211722, together with its buildings, with a total built surface of 2,427 sqm, as follows:

- C1 ‘’Shoretank’’ in a built surface of 830 sqm, identified with cadastral number 211722 – C1

- C3‘’Shoretank’’ in a built surface of 748 sqm, identified with cadastral number 211722 – C2

- C5 ‘’Shoretank’’ in a built surface of 849 sqm, identified with cadastral number 211722 – C3, in SC OIL TERMINAL SA’ propriety

d) Mortgage on the building plot, category of use yards-buildings in a surface of 34,153 sqm, located in Constanta, no.2 Caraiman str., Constanta County, parcel 1/1, identified with cadastral number 238666 registered at Constanta Land Registrar with number 238666, together with its buildings, with a total built surface of 2,477 sqm, as follows:




Page 28 of 47



e) Mortgage on the building plot, category of use yards-buildings in a surface of 15,801 sqm, located in Constanta, no.2 Caraiman str., Constanta County, parcel 1/2/1, identified with cadastral number 238836 registered at Constanta Land Registrar with number 238836, together with its buildings, with a total built surface of 2,477 sqm, as follows:


- C4 ‘’Shoretank’’ in a built surface of 855 sqm, identified with cadastral number 238836 – C4, , in SC OIL TERMINAL SA’ propriety

In September 2013, the withdrawal from the loan contracted with OTP Bank was completed, the balance of this loan on 30.06.2015 is 10,200,000 lei. This credit has a grace period expiring on 31.08.2015.

b. Debts regarding tax on postponed profit On 30th June 2015 and on 31st December 2014, debts regarding postponned profit tax in an amount of 25,943,248 lei are recorded, representing postponned profit tax for 2011-2014, constituted on own capitals for shoretank from reevaluation. 29. Debts regarding financial leasing obligations On 30th June 2015 and on 31st December 2014 the company doesn’t record any debts regarding financial leasing, these obligations being liquidated in 2014. 30. Loans on short term – presentation of loans on short term 30th June 2015 31st December 2014 Loans on short term - - On 30th June 2015 and on 31st December 2014 the short term loans have no balance. Loans on short term are generated by the following contracts: Creditor Currency Due date Reimbursement Interest Value


Page 29 of 47

1. Credt contract (credit line) no. C12002013014744/05.09.2013 concluded with OTP Bank

lei

05/09/2014

Full reimbursement on due date

ROBOR on 3 months plus limit 3,000,000

* Additional Act no. 1/23.09.2013 of credit contract no. C12002013014744/05.09.2013 * Additional Act no. 2/14.10.2013 of credit contract no. C12002013014744/05.09.2013 * Additional Act no. 3/04.09.2014 of credit contract no. C12002013014744/05.09.2013 For credit line for financing and/refinancing the current activity in a value of 3,000,000 lei, the contract C12002013014744/05.09.2013 cu OTP Bank Romania starting 05.09.2013 until 03.09.2014 and the following guarantees were constituted:

a) Security mortgage on the accounts opened by client at bank b) Mortgage on the building plot, category of use yards-buildings in a surface of 12,916 sqm, located in Constanta county, no.2, Caraiman str. Noth Storage Farm I, Constanta county parcel 3, identified with cadastral number 214855 registered at Constanta Land Registrar with number 214855, together with its buildings , in a total built surface of 913 sqm as follows:

-C 394 ‘’Ghena’’ identified with cadastral umber 214855-C1 -C395 – ‘’Administrative building’’ identified with cadastral number 214855-C2 - C 396 ‘’Greenhouses’’ with cadastral number 214855-C3 -C397 ‘’ Greenhouses’’ with cadastral number 214855-C4 SC OIL TERMINAL SA propriety

c) Mortgage on the building plot, category of use yards-buildings in a surface of 23,141 sqm, located in Constanta, no.2 Caraiman str., Constanta County, parcel 2, identified with cadastral number 211722 registered at Constanta Land Registrar with number 211722, together with its buildings, with a total built surface of 2,427 sqm, as follows:


- C3‘’Shoretank’’ in a built surface of 748 sqm, identified with cadastral number 211722 – C2


d) Mortgage on the building plot, category of use yards-buildings in a surface of 34,153 sqm, located in Constanta, no.2 Caraiman str., Constanta County, parcel 1/1, identified with cadastral number 238666 registered at Constanta Land Registrar with number 238666, together with its buildings:





Page 30 of 47


e) Mortgage on the building plot, category of use yards-buildings in a surface of 15,801 sqm, located in Constanta, no.2 Caraiman str., Constanta County, parcel 1/2/1, identified with cadastral number 238836 registered at Constanta Land Registrar with number 238836, together with its buildings:


- C4 ‘’Shoretank’’ in a built surface of 855 sqm, identified with cadastral number 238836 – C4, , in SC OIL TERMINAL SA’ propriety.

On 04.09.2014, the additional act no.3/04.09.2014 is signed of the contract C12002013014744/05.09.2013 concluded with OTP Bank by which the credit line to finance and/or refinance the current activity inceases by 2,000,000 lei, becoming 5,000,000 lei, with due date on 04.09.2015.

The guarantees constituted in OTP Bank’ favour remain the same as those initially constituted when contract no. C12002013014744/05.09.2013’ signing.

Creditor Currency Due date Reimbursement Interest Value 2.Credit contract ( credit line) no. C12002013014744/05.09.2013 concluded with OTP Bank and additional act no. 3/04.09.2014 lei

04/09/2015

Full reimbursement at due date

ROBOR on 3 months plus limit

5,000,000 31. Commercial debts

30th June

December 2015

31st December

2014 Supplier obligations for goods and services 4,696,147

7,938,331

Contributors obligations

2,903

2,929

Suppliers unarrived invoices 364,004

701,057 Total coomercial debts 5,063,054 8,642,317 Situation of suppliers’ age in balance sheet on 30th June 2015 is:


Page 31 of 47

Suppliers in due date term 4.686.096 lei

Suppliers with exceeded due date between 1-30 days 10.051 lei

32. Debts regarding due taxes and fees

30th June 2015

31st December

2014 Current obligations regarding oil royalty

1,100,433

1,233,932

Current obligations to social insurancies budget

1,452,307

1,160,283

Current obligations to state budget

2,462,506

1,436,635 Total taxes and fees 5,015,246 3,830,850 33. Other current debts

30th June 2015

31st December 2014 Staff obligations 1,387,447 1,331,076 Dividends to be paid 34,855 133,240 Clients creditors 6,464 62,865 Different creditors 99,507 71,841 Received guarantees - 5,000 Total other debts 1,528,273 1,604,022 34. Provisions for risks and expenses The company records provisions for litigations in an amount of 3,014,614 lei on the 30th June 2015.

30th June 2015

31st December 2014 Balance on the year start 4,379,158 1,775,017 Constitutions during the year 910,276 3,319,270 Reversals during the year (2,274,820) (715,129) Balance on the year end 3,014,614 4,379,158 Provisions for litigations in an amount of 3,014,614 lei are constituted according to the following files:

Company Explanation Value (lei)


Page 32 of 47

Byotech Prod General File 1517/118/2012 246,970 Elvimex Trans Group File 2639/212/2013 69,676 Ingapivet File 14833/212/2013 11,502 D.R.A.S.V. Constanta File 25976/212/2011 746,426 Finances Ministry –DGIEF Bucharest File 5826/2/2012 14,000 Financial Guard- General Office File 9378/212/2012 8,000 Union Petrol Constanta File 14736/118/2011 2,073 OMV Petrom

File 20876/P/2013, 15,983

ANAF – DGAMC File 1215/36/2012 3,020 Dosar CCH File 14430/212/2013 1,600 SNTFC si Oscar Downstream File nr. 20102/212/2012 78 Eco Petroleum File 7556/212/2014 15,595 ANAF – DGAMC File 12040/212/2014 514

Oscar Downstream

File 19250/118/2010

409,271 Incas File 21883/212/2014 1,274 Customs General Direction File 445/118/2014 150 Chimcoplex File 25924/212/2014 4,152 DG Petrol File 23592/212/2013 10,302 Mark Multiservice File 1966/212/2014 300 Oil Terminal Union File 3164/118/2014 9,543 Romar Co Audit File 34608/212/2014 42,214 SNTCFR Calatori – Oscar Downstream File 13119/245/2013 179 Sindicatul Petrol File 645/36/2014 50 Robchim File 18403/212/2014 150 Incaso JobS File 2640/212/2013 620 Oscar Downstream and SNTFC CFR File 25739/212/2012 34,876 MFP- PHARE payments and contracts office File 16504/302/2012 34,785 Mocanu Adrian File 1949/118/2014 92,526 ANAF-DGAV Galati compulsory disposal File 3551/118/2014 842,499 MFP File 8222/118/2014 200 Bio Fuel File 39521/212/2014 200 IASAR Ana S.A. File 11403/212/2011 90,000 GFR S.A. File 29101/212/2013 92,762 SNTFC CFR File 2884/245/2011 44,401 Nita Alexandru File 18994/212/2014 5,000 Gospodin Rodica File 7757/118/2014 7,514 AAAS File 22582/299/2013 7,440 Oil Prod File 2380/118/2013 1,200 Wagner Silviu and Miu Vasile File 6098/118/2014 7,145 Broadhurst LTD File 1502/118/2015 100 Broadhurst LTD File 1505/118/2015 100 Oil Terminal Union File 255/36/2015 1,100


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Silk Road Petroleum File 8944/212/2015 619 Oil Terminal Union File 6955/118/2014 50 Sali Adem File 5855/212/2015 203 Pavaluc Florin File 5855/212/2015 88 Constanta City Hall File 5857/212/2015 257 Environment Guard Report 10,000 Cretu Vasile 1265/118/2015 42,630 Gheorghe Valentin 1342/118/2015 41,912 Ion Mihai 2503/118/2015 43,145 Interagro 4034/118/2015 200 The management periodically analyses the litigations going on, after consulting its legal advisers, it decides on the necessity to create some provisions for the amounts involved or to present them in the financial reports. The outstanding litigations going on situation is presented in Note 40. 35.Subventions

30th June 2015

31st December

2014 Balance on the year start 94,832 99,406 Constitutions during the year 32,889

Consumpted during the year

(23,020) (37,463) Total subventions 71,812 94,832 The amount of 71,812 lei remained in balance on 30th June 2015 represents inventory plus of unimpaired assets. 36. Information regarding the cash flow In semester I 2015, the cash flow from the operational activity is of 12,545,777 lei, increasing comparing to the same period of the previous year by 11,583,439 lei.

The cash flow from investments activity includes mainly payments for investments in tangible and intangible assets in an amount of 3,612,877 lei, increasing comparing to the previous year by the amount of 928,340 lei.

Cash flows from financing activity is represented by cash outputs representing loans payments in an amount of 2,085,686 lei, payments for dividends in an amount of 21,663 lei.

Comparing to the previous year, cash flow from financing activities increases by 1,131,676 lei.

37. Management of risks Societatea established and put in application a risks management process in order to facilitate its objectives’ efficient achievement, to lead to risks’ reduction as far as possible without unjustifiably affecting Societatea’ activity’ competness and flexibility. Societatea is exposed, by its operations to the following risks:

- capital risk


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- credit risk - currency exchange risk - liquidity risk - associated risks regarding the defined objectives achievement - price risk - interest rate risk

Capital risk Oil Terminal SA continuously manages to ensure the resources optimal valorification acording in association with the exposure to risks and to determine a maximum earning for shareholders. The structure of the engaged capital is made of own capitals including: social capital, othe own capital elements, result reported representing surplus achieved from reevaluation reserves, reported result from IAS application for the first time, less IAS 29, reported result from accountant errors correction, reported result representing undistributed profit, legal reserves, reserves from reevaluation, other reserves and current profit. Capital risk management is part of the company business management and is reported to the permanent review of the company’ indebtedness degree. In period semester I 2015, the indebtedness degree as report between debts on short term/own capitals was of 0.033 than 0.027 in semester I 2014. Credit risk Credit risk refers is the risk of finnacial loss for Scocietatea , occuring when a client or a counterparty of a financial instrument doesn’t fulfill the contractual obligations. Societatea is mainly exposed to credit risk arisen from services supplies for clients. Every year, the frame contracts content regarding the services supplies for all liquid oil products are approved by National Agency of Mineral Resources. In these contracts, there are clearly exposed the commercial terms of the services supplied by the company to clients:

- supplied services’ payment in maximum 30 days - calcultion of accessories (penalties and delay interests) for

uneffectment of payment by the clients in contractual terms - in certain well – defined contractually situations, the revenues are

cashed in advance - if the invoices are not paid in the term stipulated in contract,

Societatea has the right to withhold the transited product, up to the amounts due by the client

Currency exchange risk The currency exchange risk occurs when Societatea concludes transactions in another currency than their functional currency. The currency exchange risk depends upon decision makers outside the company, namely Romanian National Bank regarding the currency exchange evolution in a certain period of time. In order to minimize the currency exchange risk arisen from currency exchanges fluctuations, namely the financial expenses diminishing from unfavourable currency exchange differencies, Societatea takes all necessary actions to get some advantageous interests for the foreign currency deposits (financial revenues maximization). The company’ exposure to currency exchange in Ron is presented as follows: 30th June 2015 Ron value Euro USD GBP Cash and cash equivalents 4,103,250 508 1,025,960

51


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External clients 1,555,373 0 389,145 0 Net exposure in the financial position

5,658,623

508 1,415,105

51

Liquidity risk The liquidiy risk occurs when managing by the company of working captal and of financing expenses and reimbursments of the principal amount for its credit instruments.

Oil Terminal’ policy is to ensure that, it always has enough cash to allow its financial obligations compliance to third parties (services, materials suppliers, employees, banks, state financial institutions, etc.) when these obligations become due. In view to achieve this objective, Societatea took the following measures:

- cashings monitoring in contractual term - a credit line type working capital contracting and its use only in the

situations when the cash current balance is nor enough to efffect the due payments

- a cash balance maintenance in view to cover the payments needs - issuing of a cash-flow every week

By applying the above-mentioned measures, Societatea has enough liquid resources to achieve its obligations in all expected reasonable situations. The liquidity indicators gives the guarantee of current debts’ covering from currents assets. The current liquidity represents the ratio between current assets and current debts, recording in semester I 2015 the vale of 1.91 comparing to 1.09 in semester I 2014. The immediate liquidity (acid test) represents a ratio between the diminished current assets by stocks and the current debts, this indicator’ value is 1.87 in semester I 2015 comparing to 1.04 in semester I 2014.

Debts balance on 30th June 2015 from which: Net value Contractual

value <12 months 1-2 years 2-5 years >5 years

Commercial debts and other current debts

6,591,329 6,591,329

Debts regarding taxes and fees 5,015,246 5,015,246

Debts related to leasing contracts

Loans 13,037,406 15,469,467 2,683,875 3,766,031 6,375,000 212,500 TOTAL 24,643,981 15,469,467 14,290,450 3,766,031 6,375,000 212,500 Other debts on 30.06.2015: Debts regarding tax on postponed profit 25,943,248

TOTAL 25,943,248


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Associated risks regarding the defined objectives achievement In Semester I 2015, the company went on keeping and developping the internal/managerial control system, by action directions of the Internal/managerial control system program for 2015, according to OMFP no.946/2005’ provisions, updated by Order no.400/2015 for Public entities’ internal/managerial control code. The following stages of the risk management process were achieved:

- implementation and monitoring of the company’ management’ policy and commitment in the risk management, communicated to all company’ departments, according to Decision no.8/06.05.2014 of the commission of monitoring, coordination and methodological direction of Societatea Oil Terminal S.A.’ internal/managerial control system development.

- Management of risks associated to specific objectives on 30.06.2015 The data regarding the risks’ management associated to specific objectives were centralized and recorded in Registrar of risks at the company’ level. In semester I 2015, a number of 95 risks were identified, analysed and managed*:

- 81 risks of level ,,tolerable” – percentage 85.3%; - 12 risks of level ,,high tolerance” – percentage 12.6%; - 2 risks of level ,,low tolerance” – percentage 2.1%; - 0 risks of level,,intolerable” – percentage 0%.

tolerable level high tolerance level low tolerance level intolerable level

81 risks Tolerable level, (85,3%)

0 risk, intolerable level,

(0%)

2 risks low tolerance level,

( 2.1%)

12 risks High tolerance level,

(11.6%)

0102030405060

70

80

90

tolerable level

high tolerance level

low tolerance level

intolerable level

*The stage of risks’ management on semester I 2015 end comparing to the accepted risk tolerance level From the Risks registrar’ critical analysis – semester I 2015, it points out the fact that: - 4/5 from the identified risks were ranked at the tolerable tolerance level, - 1/5 from the identified risks were ranked at the high tolerable tolerance and low tolerable tolerance levels. The most appropriate and efficient risks strategies and the internal control measures, meant to elliminate the causes, to keep under control of risks or to prevent theie occurrence or reoccurence. Comparing to the previous reporting period of 31.12.2014, the followings were found:


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- diminishing of risks number classified at tolerable tolerance level by 4% - increasing of risks number classified at high tolerable tolerance level by 1% - maintenance of risks number classified at low tolerable tolerance level (2 risks) - there were no risks identified as being classified at intolerable tolerance level

Price risk The company’ exposure to price risk is monitored by the administration bookkeeping and costs calculation activity, containing the followings:

- the company production expenses formation method; - expenses grouping and behaviour according to factors generating and their character; - presettling of costs level and structure for each service supply and for the entire planned

service supply; - production expenses current analitical recording on administration ans calculation periods of

indicators required by calculation methods used; - compared analysis of the production expenses level and structure and of costs calcullated

according to them, being used for decisions optimization in the service supply valoric process. The pragmatic initiated actions run by the company to acjieve the administration bookkeeping objectives follow: - determination of costs on products; - determination of rentability on products; - informaton issue ans supply necessary to issue, follow and control the revenues and expenses

budget, the indicators’ updating contributing to optimization of decisions in the company’ management.

- The costs calculation, on the services supplies tariffs settling base, represent the main instrument in prospection, identifying and mibilization of the company’ internal reserves as:

- 1. costs calculation provides information on the achieved valoric side for the past and present expenses;

- 2. the service supply cost level is an economic criterion for the company’ activity efficiency; - 3. services supplies tariffs correct settling represents an important instrument for the company

management; - 4. costs calculation is an important instrument for financial planning in the company; - 5. organising the administration accountancy in the company, on each service supply, it

creates the possibility to follow the costs in dynamics Therefore, the costs dynamics periodical survey on product conventional ton (semestrial) a balance is provided between the average cost on oroduct ton and the average income achieved on the same measure unit, so that the services supplies to be efficient and bring plusvalue.

Interest rate risk Operational cash flows are afected by interests rate variations, mainly due to loans contracted on long term. The company has significant long term loans, with variable interest, exposing it to a cash flow risk. In view to manage the interest rate risk, the company dets are permanently monitored for the due dates, by clients cashing policy providing the resources necessary for debts payment. 38. Extrabalance elements On 30.06.2015, the company has recorded in accounts and besides the balance the followings:

1) Guarantees and warranties given in a total book value of 16,843,934 lei; 2) Crude oil, petroleum, chemical products, Oil Terminal’clients’propriety,

pointed out as material values received to be kept and in custody; 3) Stocks of inventory objects in use in a total value of 5,668,110 lei;


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4) Public goods received in administration, leasing, hired represent public goods according to Oil Agreement to lease the activity of shoretanks, transport pipelines for crude oil, oil products oeration, of pumping facilities and other facilities and equipments related to them, concluded between National Agency of Mineral Resources and Oil Terminal, value 22,575,918 lei.

5) Other values representing fixed assets approved to be out of use, in a value of 69,548 lei; 6) Guarantees and warranties received representing good execution guarantees in a value of 1,288,724 lei 7) Hired assets;

8) Other values besides the balance (social fund) 21,762 lei; 9) Royalties for administration location, hires and other assimilated debts

(operational leasing) 311,456 lei

39. Result per share On 30.06.2015 and on 30.06.2014, the result per share is: 30th June

2015 30th June

2014 Profit of financial year 10,290,581 (1,462,386) Other elements of overall result: Elements not being reclassified as profit and loss, from which: 0 53,146 0 53,146 Earnings from real estates reevaluation 0 0 Surplus from assets reevaluation 0 0 Debt regarding the postponed tax 10,290,581 (1,409,240) Overall result 582,430,253 582,430, 53 Ordinay shares number on the period start and end (ordinary shares average number)

0.017668

(0.002419)

Main and diluted result per share (lei/share)

40. Contingent debts I. File no. 445/118/2014 pending on Constanta Court, with object-action where Oil Terminal S.A. is claimant in contradictory with the defendant: ANAF-Customs General Direction. In 2003, DRAOV- Constanta Customs Department issued the proof documents regarding Customs taxes and other rights to state budget no. 504-520/24.10.2003, no. 551/30.10.2003 and no. 557/07.11.2003, regarding Oil Teminal’obligation, as warehouser and petroleum products port operator, to pay to state budget the amount of 111,228,018.51 RON The imported products’ owners, for whom the actions of the proof documents were taken are: RAFO SA ONESTI, namely ROMPETROL RAFINARE SA NAVODARI, and both companies wholly paid for the debt representing Customs taxes, Customs commission and VAT, each for its own imported product quantity. By this file, it requests to ascertain to pay for the debt by RAFO SA ONESTI, namely ROMPETROL RAFINARE SA NAVODARI and the lack of payment obligation for OL TERMINAL Constanta, regarding the amount of 111,228,018.51 RON, representing Customs taxes, Customs commission and VAT for product imported by the two refineries.


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On 23.04.2014 term, the court admittted the material incompetence and declined the solving competence in favour of Constanta Court of Appeal, section II civil. On 26.06.2014 term, Constanta Court of Appeal, by Civil sentence no.123 gave the following solution: ’’it rejects the defendant passive procesual position lack exception, invoked by the the defendant, as unfounded. It rejects the judged work authority exception, invoked by the defendant as unfounded. It admits the action inadmissibility exception, invoked by the defendant. It rejects the action as inadmissible’’. The decision was challenged by Oil Terminal SA with appeal at Constanta Court of Appeal, on 24 July 2014. On 22.04.2014, at the company’ headquarter, the summons issued by the National Agency of Fiscal Administration – DGAMC Bucharest no. 1141869/07.04.2014 in execution file no.666/03.04.2014 in an amount of 111,054,565 lei, representing accessories according to Accessories calculation decision no. 2702/28.02.2014. Oil Terminal was charged by the Customs Authority that, it wolud have ordered some crude oil quantities pumping, from its own shrefarms to clients in territory (refineries RAFO ONESTI, ROMPETROL RAFINARE Navodari) without having deposited Customs declarations for these quantities, determining the incidence of art. 143, item 3 of LAW no.141/1997 regarding Customs code, available on that date. By Decision no.147/27.05.2014, ANAF- General Direction of appeals solutioning, admits the appeal submitted by OIL TERMINAL SA Constanta against the decision regarding the accessories payment obligations no. 2702/28.02.2014, with the consequence of cancelation of decision regarding the accessories payment no. 2702/28.02.2014 issued by Galati Regional Customs Direction – Constanta Customs Office,regarding the total amount of 111,054,565 lei, representing:

- 1,324,026 lei Customs taxes delay interests, - 106,936,995 lei VATdelay interests - 2,793,544 lei Customs commission delay commission. Furtherly, by the Fiscal authorization certificate, issued on 20.08.2014, on the company’request, ANAF-DGAMC Bucharest sends payment obligations in an amount of 73,361,451 lei, representing: - Customs taxes of 874,637 lei - TVAin Customs of 70,641,429 lei - Customs commission of 1,845,385 lei The payment obligations in an amount of 73,361,451 lei represent debts recorded in proff documents nos. 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 516 of 24.10.2003, 551/30.10.2003 and 557/07.11.2003, all issued by Constanta Customs Office, for the crude oil quantity pumped by OIL TERMINAL, through main pipeline, to Rafo Onesti refinery and MTBE, loaded in the petroleum terminal in railcars with destination Rafo Onesti refinery. By address recorded at ANAF with no. 1269791/18.08.2014, Societatea showed to the fiscal authority the inexistence of payment the amount of 73,361,451 lei, representing Customs taxes, VAT and Customs commission. ANAF communicated by addresses nos. 1269791/29.08.2014 and no. 12893/04.09.2014, that the amount of 73,361,451 lei was deducted from Constanta Customs Office’ accountant files By the Fiscal authorization certificate, issued on 29.08.2014, on the company’ request, it was found that, OIL TERMINAL is not recorded with any unpaid obligations. The High Cassation and Justice Court settled the first hearing for 17.03.2015. On term of 17.03.2015, the court ordered the report communication to court regarding the admissibility in principle of the appeal. The next hearing is settled for 20.10.2015.


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II. File no.5826, pending on Bucharest Court of Appeal, with object the appeal against the decision no.1/200476/28.05.2012 issued by Economic Financial General Inspection of Public Finances Ministry, by which the appeal against Compulsory Disposal by which the Compulsory Disposal no.853.525/30.03.2012 was rejected.

The first hearing was settled for 21.11.2012. In this file, the inscriptions, the accountant expertise and a technical one in oil and gas fields evidence was administrated. On 20.05.2015, the Court of Appeal gave the following solution:’’it partly admits the action. It cancels the decision no.1/200476/28.05.2013 issued bt the defendant. It obliges the defendant to solve the claimant’ previous complaint against the financial control report no. 5007/29.03.2012 and of the compulsory disposal no. 853535/30.03.2012, by issuing a reasoned decision. It obliges the defendant to pay 9000 lei court costs to the claimant’’. The sentence can be appealed in 15 days since communication. Until the present date, no civil sentence has been communicated. III. File no. 9378/212/2012 pending on Constanta Court has as object the appeal against the

contravention report no. 0099000/04.04.2012, issued by Constanta Financial Inspection – Central Office. B this report, Oil Terminal was charged with the payment of contraventional fee in an amount of 20,000 lei, with the possibiliy to pay 3,000 lei in 48 hours. It also disposes the seize the quantity of 51,157 kgs crude oil and 269 kgs nonconforming methanol. The seized goods remained in the company’ custody.

By this action, the Protocol no. 0099000/04.04.2012 issued by Constanta Financial Authority – Central Office was asked to be cancelled. Constanta Court admitted the contraventional claim submitted against protocol series H no. . 0099000/04.04.2012 by claimant OIL TERMINAL Constanta in contradictory with the defendant National Agency of Fiscal Authority, by Public Finances Regional General Direction Galati and cancelled the protocol, removing the applied sanctions by the cancelled protocol, according to sentence 1260/17.02.2014. Against this sentence, National Agency of Fiscal Authority - Fiscal Authority, by Public Finances Regional General Direction Galati for Financial Authority Constanta appealed. On term of 17.06.2014, the appeal court noticed that the recurrent didn’t deposit a statement anda new term was given for the recurrent to mention if accepts the appeal. On term of 16.09.2014, Constanta Court presented the parties the passive lack of DGRFP Galati. By civil sentence no.945/21.10.2014, the appeal court gave the following solution: ’’admits the appeal, cancels the recurrent sentence and sends the file to be judged again’’ The file was sent to Constanta Court, that gave term on 12.02.2015, when a new term was settled for12.03.2015. On 17.03.2015, Constanta Court admitted the claim and ordered control and sanctions protocol cancellation, namely the fine. The civil sentence is not final, being able to be challenged in 15 days from communication. National Agency of Fiscal Authority appealed on 30.04.2015. IV. File no.25976/212/2011 pending Constanta Court with object Contraventional claim against Observation protocol no.144/16.09.2011, concluded by Constanta Regional Customs Direction of Customs National Authority, by which we were punished for:

- Customs declarations and accompanying documents containing errors data regarding plus goods quantity deposit;

- Customs declarations and documents in which the products names proposed by the Customs central laboratory don’t comply with that indicated by the depositary;

- Unachievement of Customs regime holder’ obligation provided in the Customs warehouse authorization. For noncomplying with art. 653, letters f,h, art.652 letter m of GD 707/2006, for approval of Romanian Customs Code, the company was fined by 16,000 lei.

Evidence was administrated with the respondent examination, oral evidence, technical expertise evidence. On term of 08.07.2014, court noticed that the appointed expert’ death and revertedon the


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respondent objections, these being taken into account at the file solutioning. On term of 23.09.2014, court remained in pronouncing. After many succesive postponments of the pronouncing, the file reopened to discuss the appointed expert fee addition by parties. On term of 12.05.2015, ther court ordered the expert fee addition payment. The expert fee addition in an amount of 5,680 lei was paid and deposited on 23.05.2015. The next settled term if for 04.08.2015.

V. File 3545/118/2014 pending on Constanta Court, in contradictory with Union Oil Terminal, having as object: Easter indemnity claim in an amount of 1,000 lei for 2014 for each of 910 claimants. By Decisionno.2444/13.10.2014, court gave the following solution:’’it admits the suing request, obliges the defendant to pay Easter indemnity for 2014 in an amount of 1,000 lei, it rejects as unfunded the claimants’ request to oblige the defendant to pay the court costs. Executory, with appeal right in 10 days from communication, being deposited at Constanta Court’’. On term of 30.10.2014 Oil Terminal S.A. appealed. The first hearing is settled for 19.05.2015, term remaining in pronouncing. By Civil sentence no. 326/CM/05.06.2015, the Court of Appeal rejected the appeal as unfounded. The decision is final, no other appeal being possible. The debt was paid on 05.06.2015.

VI. File no. 3164/118/2014 pending Constanta Court, in contradictory with Union Oil Terminal, by which the claimant requests to the defendant the additional hours payment worked in 2013 and uncompensated by free time, and for those who received the compensation in 2014, to be paid the c/value of the benefits for these worked and not paid hours and the meal tickets for the additional hours worked in 2013 according to individual labour contract and the collective one for the company, available until 31.12.2013. The first term was given for 19.09.2014, the court agreed the inscriptions evidence and the accountant expertise to be deposited. On 19.09.2014, the Court admits the objectives proposed by claimants for the accountant expertise report and partly admits the objectives proposed bt the defendant. It settles the following objectives for the expertise report:

- additional hours number determination, worked by claimants in 2013; - additional hours number determination worked in 2013, for which paid free hours were given and

other compensations in 2014; - the rights settlement for each claimant for these additional hours and the possible differencies of

unpaid money quantification. On term of 03.10.2014 court settles expert fee and gives the next term for 06.03.2015. A new term was given for 17.04.2015 for the expertise report to be filled in.

On term of 17.04.2015, the court communicated to parties the accountant expertise report and postponed for submission of possible objections. On term of 29.05.2014, the objections of the accountant expertise report, submitted by both parties, were approved. On term of 10.07.2015, the court gave a new term to answer to objections of the expertise report. The next trial term is settled for 02.10.2015. VII. File no.3551/118/2014 pending on Constanta Court, in contradictory with ANAF – General Direction of Large Paytaxers has as object: Appeal against Compulsory Order no.337/30.09.2013 and of Economic Financial Inspection no.39/30.09.2013.

On term of 26.09.2014, the submission deposited by ANAF was communicated for 25.09.2014. S.C.A. Mirela Radu, Valentin Tudor & Asociatii submitted intervention request on 25.09.2014.

Oil Terminal deposited Decision no.50/01.09.2014 for the appeals solutioning. Mentionings regarding the inadmissibility exception were deposited. On term of 17.10.2014 the followings were ordered: - to take note of request item 1;


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- to admit the appeal deposit lateness exception bt the defendant; - to extend the intervention requst discuss submitted by the company and the inadmissibility exception

regarding the Inspection Report appealing; - to invoke the requested measures implementation cancellation request inadmissibility, at which the

claimant will answer in written form. On term of 28.11.2014, the court ordered the following measures: - to accept the intervention request according to art.18 paragraph 2, to reject the Inspection report

inadmissibility exception - to accept the inscriptions evidence and the accountant expetise evidence - in pronouncing on the adjournment request according to art.15 of Law 554/2006 of administrative

legal department - to give term to settle the bail (guarantee) On term of 12.12.2014, the court remained in pronouncing on the adjournment request; court appreciates that any bail payment doesn’t impose for the adjournment payment. By Termination no.2917/12.12.2014 court rejects the administrative act execution adjournment request. Against this decision, an appeal was submitted. On term of 30.01.2015, the pronounciation was postponed for expetise report lack and a new term was given for 27.02.2015. On term of 27.03.2015, the accountant expertise report was communicated. On term of 17.04.2015, objections of the expertise report together with inscriptions were deposited. The Court postponed to communicate the objections to parties, discussing their admission on the next term settled on 15.05.2015, term on which inscriptions were deposited. On term of 29.05.2015 the Court ordered a new term for the latest AGOA decisions of May 2015 to be deposited. By civil sentence no.1064 of 24.07.2015, the court of first instance, namely Constanta Court, gave the following solution: -‘’It partly admits the summons having as object administrative act suspension/cancelation, submitted by the claimant S.C. Oil Terminal SA, in contradictory with the defendant National Agency of Fiscal Administration - Regional General Direction of Public Finances Galati – Economic Financial Inspection Office – Tulcea, by County Administration of Public Finances Constanta. - It partly cancels the Compulsory Disposal no. 337/30.09.2013 issued by Regional General Direction of Public Finances Galati – Economic Financial Inspection Office – Tulcea, as follows: - it wholly cancels the following measures: Measure no.4: the company’ management will order measures to recover the amount of 49,000 lei, representing staff expenses-meal tickets, expense over the amount approved by the budget of incomes and expenditures approved for 2011, from the responsible persons; Measure no.5: the company’ management will order measures to recover the amount of 113,000 lei, representing other staff rights according to legal provisions, expense over the the amount approved by the budget of incomes and expenditures approved for 2011, from the responsible persons; Measure 24: the company’ management will order measures to recover, from SC Incas SA, the amount of 14,881.62 lei, representing interests due according to art. 12.1 of the works contract no. 169/17.12.2010; Measure no. 29: the company’ management will take the necessary measures to issue operational procedures according to GD no.1151/2012. Measure no. 23: the company’ management will take measures to recover, from, SC Petroserv SA, the amount of 18,319.85 lei, representing interestsdue and calculated according to art.12.1 of works contract no.103/16.08.2010 up to the amount of 4,27.65 lei. - it rejects as unfounded the intervention request submitted in the claimant’interest, by the intervener

S.C.A. MIRELA RADU, VALENTIN TUDOR & ASOCIATII. - It rejects as unfounded the summons request having as object the administrative

act/suspension/cancelation, submitted by SC OIL TERMINAL SA, in contradictory with the


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defendant Public Finances Ministry – Previous claims and appeals solutioning office by County administration of public finances Constanta’’.

The decision is not final and can’t be appealed in 15 days from communication.

VIII. File 8222/118/2014 pending Constanta Court, in contradictory with Public Finances Ministry, Appeals Solutioning Office with object:Appeal against the Decision no.50/01.09.2015 regarding the Compulsory Order no. 337/30.09.2013 and Economic Financial Inspection Report no.339/30.09.2013. Action was deposited on 24.11.2014. On the first term settled for 10.02.2015, Court rejected the material incompetency exception invoked by Public Finances Ministry and remained in pronouncing for file no.8222/118/2014 at file no.3551/118/2014, registered at Constanta Court. On term of 27.02.2015, the court ordered to connex the file no. 8222/118/2014 to file no. 3551/118/2014, pending on Constanta Court – Administrative and fiscal legal department.

IX. File no. 2369/118/2015 pending Constanta Court, in contradictory with the minor shareholder Broadhurst Investments Limited having as object: Action for annulment against AGEA decision no.9/14.08.2014 to increase Oil Terminal SA’ social capital. On the first hearing settled for 09.06.2015, the court remained in pronouncing on the action for annulment prematurity exception. By meeting’ comclusion of 09.06.2015, Constanta Court rejected the action’ prematurity exception, invoked by the defendant Oil Terminal S.A. and settled a term for 08.09.2015, by citing the parties. On 11.06.2015 Oil Terminal SA deposited a request of term’ replacement. By meeting’ conclusion of 16.06.2015, Constanta Court admitted the term’ replacement request submitted by the defendant SC Oil Terminal SA. It replaces the term of 08.09.2015 for 06.08.2015. It orders the parties’ citing for the given term. Term: 06.08.2015

X. File no. 19771/212/2013 having as parties SANDU SORINEL as claimant and OIL TERMINAL SA as defendant.

File is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. On term of 04.02.2014, the claimant interogatory was communicated. Societatea OIL TERMINAL S.A. on term of 11.03.2014 deposited answer to the interogatory and the defendant deposited inscriptions, court ordered to send an address to Cadastre Office to communicate the cadastre plan. On 06.10.2014, the court reopens the file to add the probatory. It puts in view to the defendant to deposit the background regarding the field propriety of no.2 Caraiman str. And of the service appartment since 1934 until 1990 when Oil Terminal was founded.it admits the address to Constanta Hall to communicate the field legal situation. It puts in view to the claimant to indicate the legal base regarding the defendant obligation to sell the field under the building and the house yard. It settles term for 10.11.2014. On term of 10.11.2014, court rejects the appeal appeal having object the obligation to maske – appeal submitted by the claimant SANDU SORINEL, in contradictory with the defendant OIL TERMINAL SA, as unfunded. It rejects the item submitted by the claimant regarding the defendant obligation to pay the court costs, as unfunded. The defendant didn’t ask for court costs in this file. The decision can be appealed in 30 days from communication, appeal to be deposited in Constanta Court, nullity sanction. Civil sentence was communicated on 22.12.2014 and the claimant submited appeal on 14.01.2015. Oil TERMINAL deposited contestation. On term 28.04.2015, the court remained in pronouncing on the material competence lack Civil Section I. On 28.04.2015, court gave the following solution: ‘’declines the file solutioning Admits the Civil Section I’ functonal incompetence exception. Orders to submit the file to Civil Section II, for competent solutioning.’’


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On 08.07.2015 term, Constanta Court, Civil Section II, by decision 443/2015, decides: it rejects as unfounded the appea submitted by the claimant Sandu Sorinel in contradictory with the defendant SC OIL TERMINAL SA, against the Civil sentence no.11949 of 10.11.2014, given by Constanta Court, in File no. 19771/212/2013.

XI. File no. 19770/212/2013 having as parties MARDARE MIHAITA as claimant and OIL TERMINAL SA as an defendant

File is pending on Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. On term: 29.04.2014, claimant deposited interogatories. Court orders the claimant to answer the prematurity exception and settles term for 03.06.2014. On this term, the defendant deposited the answer to the interogatory, claimant deposited an inscription with a registering number for request. Court ordered to issue an address to Cadastre Office, Constanta Hall and Tax Dept. to determine the building legal kind an ordered the defendant to investigate the registering number on the acts deposited and seetles a term for 09.09.2014. On 15.09.2014, written conlusions are deposited. On term of 16.09.2014, the pronouncing was postponed until 23.09.2014, the term on which the court rejects the request as unfounded. This decision is applicable by appeal in 30 days from communication. The civil sentence was communicated on 17.12.2014 and the appeal was declared by the claimant on 19.12.2014. The company deposited contestation. The next term is settled for: 24.09.2015.

XII. File no. 19774/212/2013 having as parties DUTA ION as claimant and OIL TERMINAL SA as defendant.

File is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA.

On term of 30.01.2014, the claimant was requested to bring a fiscal certificate by which to show which is the building value in view to calculate the judiciary stamp duties. The claimant is requested to mention the claims and to submit a request of reexamination on stamp, settling the term of 27.02.2014 in view to solve the stamp reexamination request. On 27.03.2014 term, court rejected the trial request introduction prematurity exeption, agreed the evidence with inscriptions and the defendant interogatory.

Court ordered on 08.05.2014 to send an address to Constanta Hall to communicate the building legal kind. Court settles on term of 26.06.2014 to issue an address to Cadastre Office to communicate the cadastre plan. Court ordered the claimant to make evidence for the building to be built from state funds on 04.09.2014. Court ordered on 18.09.2014 and rejects the appeal submitted by claimant Duţă Ion in contradictory with the defendant Oil Terminal SA, as unfunded. With appeal in 30 days from communication. Civil sentence was communicated on 03.12.2014. Claimant appealed on 19.12.2014. The next term is settled for: 14.09.2015.

XIII. File no.34987/212/2013 having as parties DUDAU VASILE as claimant and OIL TERMINAL SA as defendant.

File is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. On term of 13.05.2014, answer of the interogatory was deposited. On 17.06.2014 court ordered acording to art. 400 civil procedure code, reopening of the file settling term to the probatory to be added, on 16.09.2014 for the date the parties will be cited and an address will be issued to Constanta Hall to communicate the building of no.2 Caraiman str. Legal situation, identified in the inventory list no.1210246 North Storage Farm (ex-deposit no.2) and to Cadastre Office to communicate if the above mentioned building has opened land registry and to communicate a copy of the land file.


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On 30.09.2014 court rejects, as unfunded, the request submitted by claimant DUDĂU VASILE in contradictory with the defendant OIL TERMINAL SA, with appeal in 30 days from communication date. Civil sentence was communicated on 17.01.2015. Dudau Vasile applealed on 27.01.2015. Constanta Court, by Decision no.394/2015 16.06.2015, admits the appeal submitted by the appellant Dudau Vasile in contradictory with the defendant SC Oil Terminal SA against the Civil sentence no.9874/30.09.2014 given by Constanta Court. It fully replaces the appealed decision. It partly admits the action. It obliges the defendant to sell to the claimant the service apartment, being the object of parties’ hiring contract no.397/2002, located in Constanta, no.2, Caraiman str. It obliges the defendant to pay the amount of 1020 lei – court cost to the claimant. Oil Terminal SA will submit contestation in annullment and decision review request after the civil sentence’ receiving. XIV. File no. 34988/212/2013 having as parties IDRICEANU ROMEO as claimant and OIL TERMINAL SA as defendant. The file is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. On 03.10.2014, the answer at the interogatory is deposited by the defendant. By civil sentence of 27.10.2014, court rejects the requst as unfunded, with appeal in 30 days from communication.Civil sentence was communicated on 07.01.2015. Claimant appealed on 14.01.2015. Contestation was deposited by the company. On term 02.04.2015 court was pronouncing. The Court of Appeal, namely Constanta Court, by Civil sentence no.343 given on 02.04.2015, rejected the appeal submitted by Idriceanu Romeo, as unfounded. On 11.06.2015, the appellant appealed. The Court of Appeal hasn’t settled the trial term, yet.

XV. File no.34989/212/2013 having as parties CAPRA NICULAE MARCEL as claimant and OIL TERMINAL SA as defendant.

The file is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA.

On term 02.06.2014, the defendant answered the interogatory, the defendant deposited fixed assets sheet. On 27.10.2014, court rejects the request as unfunded, with appeal in 30 days from communication. Civil sentence was communicated on 07.01.2015. Claimant appealed on 14.01.2015 and deposited contestation by the company. On term 02.04.2015 appeal court was pronouncing. The appeal court, namely Constanta Court, by Civil sentence no.344 given on 02.04.2015, rejected the appeal submitted by Capra Nicolae, as unfounded. On 11.06.2015, the appellant appealed. The Court of Appeal hasn’t settled the trial term, yet. XVI. File no. 34986/212/2013 having as parties MILEA GEORGE as claimant and OIL TERMINAL SA as defendant.

The file is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. On term of 09.07.2014 the defendant answered the interogatory and it ordered to issue an address to Cadastre Office and Constanta Hall. A new term is settled on 24.09.2014 for the defendant to deposit inscriptions confirming the contestation and to mention the building origin, from which it arises the building was bult in 1932-1936, the undertaking way and the documents certifying the continuity of the defendant company with the previous company. The court requested inscriptions were deposited on 25.09.2014. On 22.10.2014 court ordered the defendant obligation to sell the claimant, according to Law 85/1992 and the law 61/1990, service apartment located in Constanta, no.2, Caraiman str., Constanta county, identified in the


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defendant’ records with inventory number 11110431 North Storage Farm. It orders to oblige the defendant to pay to the claimant the amount of 20 lei for court costs – legal judiciary stamp. With appeal in 30 days from communication. Oil Terminal S.A. appealed in legal term, no trial term hasn’t been settled, yet.

XVII. File no. 34991/212/2013 having as parties OLARU LAURENTIU as claimant and OIL TERMINAL SA as defendant.

The file is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. On term of 09.07.2014 the defendant answered the interogatory and it ordered to issue an address to Cadastre Office and Constanta Hall. Court ordered that, on term 24.09.2014, the defendant to deposit inscriptions to confirm the contestation and to mention the building origin, from which it arises the building was bult in 1932-1936, the undertaking way and the documents certifying the continuity of the defendant company with the previous company. The court requested inscriptions were deposited on 25.09.2014. By decision of 22.10.2014 court ordered the defendant obligation to sell the calimant, according to Law 85/1992 and the law 61/1990, service apartment located in Constanta, no.2, Caraiman str., Constanta county , identified in the defendant evidence with inventory number 11110051 North Storage Farm. It ordered the claimant to pay the amount of 20 lei for court costs – legal judiciary stamp. With appeal in 30 days from communication. The civil sentence wan’t communicated. Oil Terminal S.A. appealed in legal term, no trial term hasn’t been settled, yet.

XVIII. File no.14959/212/2014 having as parties NIJLOVEANU MARIANA as claimant and OIL TERMINAL SA as defendant.

The file is pending Constanta Court having as object the obligation to make, namely the claimant requested the service apartment sale by OIL TERMINAL SA. The court ordered for the term 03.10.2014 the propriety acts to be presented. The interogatory was answered and it was deposited on 10.11.2014. On 15.12.2014 court rejected the action submission prematurity exception, invoked by the defendant by contestation, as unfunded. It rejects the suing submitted by the claimant NIJLOVEANU MARIANA in contradictory with the defendant S.C. OIL TERMINAL S.A as unfounded. With apppeal in 30 days from communication. The civil sentence was communicated on 15.04.2015. Nijloveanu Mariana appealed on 22.04.2015. The next trial term was settled for 15.10.2015. 41. Further events On 08.07.2015, Shareholders General Ordinary Assembly took place with the following day agenda:

- approval of the financial reports for 2014, issued according to International Standards of Financial Report (IFRS), and of the Report of Independent financial auditor.

- approval of the managers’ discharge of administration liability for their activity, run in financial year 2014 - approval of the annual report of the financial year on 31.12.2014, issued according to CNVM Regulation 1/2006. - approval of the proposal of net profit distribution for 2014. - approval of the settling of gross dividend per share for 2014 as being 0.00044967 lei/share, of settling the payment term and methods.


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- authorization of the Board of Directors to appoint the payment agent according to applicable regulation framework for the dividends payment - approval of the date of 14.08.2015 as dividends’ payment according to art.2 leter g) of Regulation 6/2009 and art.129³ of Regulation 1/2006. - approval of the Budget of revenues and expenditures for 2015. - approval of management contracts - approval for the conclusion of some legal assistance and representation in court. - On 13.08.2015, Shareholders General Ordinary Assembly is convened, with the following day

agenda: - Appointment of SC ROMAR – CO AUDIT SRL as the company’ statutary financial auditor, for a

period of 2 years (2015-2016). - Revocation of audit company JPA Audit & Consultanta SRL (appointment date 21.07.2014), namely

ROMAR-CO AUDIT SRL (appointment date 28.04.2011) following the contracts’ availability ceasing, in view to radiate it in Constanta Commerce Registrar Office.

- Approval of guarantees structure related to the credit line’ extension in an amount of 5 mil. lei for a 12 months period.

- Empowerment of general director, deputy general director, economic director and chief of legal-litigations department to represent the company in relation with the bank, public attorney and to sign the guarantees contracts (movable/immovable), of all their additional acts and all the necessary inscriptions to run the contractual agreement with the bank

- Approval to conclude three legal assistance and epresentation in court (in maritime law, shareholding – capital increase, social dialogue).

The notes 1-41 are part of the Unaudited simplified interim financial reports on 30.06.2015, they were issued by the company on 13.08.2015 and were signed in its name by:

Chairman of the Board of Directors, Crișan Daniel-Marius

General Director, Economic Director, Chief of Accountant Dept., Ciutureanu Viorel-Sorin Frangu Adriana Popovici Cecilia

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