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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
COMPANY INFORMATION
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BUSINESS OIL PLATFORM LIMITED
CONTENTS
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BUSINESS OIL PLATFORM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the Company is the international trading of crude oil, refined petroleum, petrochemical products and biofuels.
The business has continued to grow over the years and the Directors expect this trend to continue based on concluded term contracts and company’s short, medium and long-term development strategy. The Company’s performance is measured in traded volumes, new acquired markets, in terms of gross trading margin and net result for the year, after deducting operating expenses. There was a profit for the financial year after taxation amounting to $762,279 (2023: $2,614,565). The Directors monitor the following key performance indicators of turnover, gross profit margin, operating profit and net profit.
The Company's turnover has remained stable at $235,819,305 (2023: 231,843,109) despite the Crude Oil market and derivatives prices slightly decreasing. Gross profit has decreased by 162% to $1,970,451 (2023: $5,155,999) with the total operating profit amounting to $1,017,057 (2023: $3,426,454) The Company's net profit before tax has decreased by 233% to $1,029,006 (2023: $3,426,454) The decrease in net profit is due to the company’s long-term development strategy and continuous diversification, additional investment in new projects , such as JET A1 and SAF supply and related new market entry costs. The Company continues to invest in growth of the business expecting further expansion in terms of both products and markets. increase in turnover and gross profit for each foreseeable year. There have been no major logistical or operational issues in the physical handling of products for the company. Although economical uncertainty had a limited impact on the Company, it still managed to record healthy profits and business performance. A proactive approach will be taken by the company to mitigate any potential negative impacts resulting from this issue in the future. There is also a significant disruption to financial and commodity markets due to the current geopolitical situation. Various countries, including the United States, the European Union, Switzerland, and the United Kingdom, is continuing to impose sanctions against various companies and individuals as well as trade flows are changing globally. Currently, the Company has no material exposure to geopolitical events. The Company complies with all sanctions applicable to our business activities and will monitor the situation as it develops. Currently there are no additional effects on the Company's financial performance as the sanctions continue to be prolonged. Given the Company's healthy financial position and its immaterial exposure, there are no indications that these impacts will adversely affect the Company's current financial situation in a material manner.
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BUSINESS OIL PLATFORM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company has an established, structured risk management strategy. The Company's activity exposes it to some risks and uncertainties including the effect of market changes and foreign exchange risks. However, the Company has adopted risk management policies that seek to mitigate these risks in a cost-effective manner.
The Company does not have any loans to repay or assets to renew. Most of the sales are secured either by various financial instruments via the Company's bankers or by credit insurance. These instruments minimise the risk of bad debts. The Company forecasts and projections, show that the Company should be able to operate within the level of its current facilities. Debtors and creditors are received and paid in the same currency being US Dollars or Euros. The directors review foreign currency risk on a regular basis to ensure that such risk is minimised. The Company uses various financial instruments. These include mainly letters of credit and bank guarantees, but also cashflow management, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations and to minimise the exposure to exchange rate risk, bad debt risk and insolvency risk. Market risk Market risk encompasses various types of risk, being currency risk, price risk, liquidity risk and credit risk. Currency risk The Company is exposed to exchange rate variances. However, both sales and purchases are made in US Dollars or Euros, which are the main currencies used in the field of oil and gas. There are only a few expenses, such as wages, national insurance and corporation tax, that are in GBP. In accordance with company policy all business transactions are only approved if purchases and sales are in the same currency. Nevertheless, in case sales and purchase currency differ, the Company has the policy to hedge the FX conversion via its banks. Price risk The Company's exposure to price risk consists mainly of movements in the value of sales and purchases. The price fluctuation risk is mitigated by use of hedging instruments or by back-to-back transactions. Credit risk The Company has significant trade debtors and trade creditors but those amounts are interlinked. The risk is mitigated by the strong ongoing customer relationships and first class customers, and by use of various financial instruments issued and confirmed by first class international banks or by securing credit insurance policies. Liquidity risk The Company is managing the risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The Company expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations, the Company has credit facilities available from its suppliers and financial instruments.
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BUSINESS OIL PLATFORM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company uses the following main Key Performance Indicators (KPIs) to measure its performance:
Turnover - In 2024 this was $235,819,305 and in 2023 this was $231,843,109. Gross Profit - In 2024 this was $1,970,451 and in 2023 this was $5,155,999. Operating Profit - In 2024 this was $1,017,057 and in 2023 this was $3,426,454. Gross profit and operating profit have decreased due to Company’s strategy, investment returns, market and products continuous diversification as well as costs optimisation. Business Oil Platform Ltd ("BOP") recognise the importance of effective corporate governance in supporting the long term success and sustainability of the business.
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BUSINESS OIL PLATFORM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Business Oil Platform Ltd (“BOP”) recognise the importance of effective corporate governance in supporting the long term success and sustainability of the business.
Section 172 of the Companies Act 2006 requires directors to take into consideration the interests of stakeholders in their decision making. The Directors must also have regard for the interests of the Company’s employees, business relationships with the Company’s wider stakeholders. This s172 statement explains how BOP Directors are engaging its employees, customers, suppliers and other stakeholders, and are considering employee interests, enhancing relationships with partners. S172 Statement by BOP’s Directors Directors have carefully considered requirements set out in S172 and during the financial year ending December 31, 2024 have acted in good faith and in a way that would most likely promote success of the Company for the benefit of its members and in doing so has regard to the issues set out below. The likely consequences of any decision in the long term Directors are evaluating its short term decision impact on its long term success and developing the Company's strategy regarding the Company's current and future markets. In addition, a long-term perspective is taken on possible geographical changes and the implementation of new technologies. Long-term business planning and key strategic decisions are then done in accordance with the board's strategy. The interests of the Company’s employees Our employees are the driving force behind our success and we provide working environment, opportunities and training which foster their potential and skills. The Company systematically provides employees with information with matters that concern them, consulting them regularly so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the Company is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the Company plays a major role in maintaining its current financial position. The Company encourages the involvement of employees by means of both formal and informal communication and ad hoc meetings as and when necessary. The Company is committed to employment policies which follow best practice, based on equal opportunities for all employees irrespective of sex, race, colour, disability or marital status. The Company gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. The need to foster the Company’s business relationships with suppliers, customers and others We have bult long-term relationships with our customers, suppliers and other partners of the company by offering best possible service and flexibility and by responding to their needs in a changing market environment. Company is engaged with its partners on regular basis to have up to date feedback on their satisfaction. Understanding our partner’s needs and requirements is crucial for our growth and development. Management maintains regular contact with these parties to develop mutually beneficial partnerships based on trust and transparency.
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BUSINESS OIL PLATFORM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Monitoring of performance will ensure:
- Customer and supplier relationships are being strengthened and collaboration is being enhanced. - A more focused and structured approach to supplier engagement. - Technology and products innovation - Improved customer service and support - Leveraging supplier assets and capabilities to gain a competitive advantage (instead of only focusing on lower costs) Impact of the Company's operations on the community and environment As part of its commitment to reducing the environmental impact of its operations and products, the Company is certified by ISCC and is developing and expanding in environmentally friendly energy commodities and renewable energy sources. The desirability to maintain a reputation for high standards of business conduct The Directors acknowledge their responsibility for setting and monitoring the culture, values and reputation of the Company. The Directors recognise that maintaining the highest standards of business conduct is central to BOP’s continued success and growth. The Director’s requirements are set out in our Code of Ethics, and related policies addressing matters such as bribery, corruption and equality among others. We continuously consider compliance matters within our decision?making process, for example by reviewing pre?contract due diligence results and mitigations relating to suppliers, service providers. Alongside ongoing training, communication, and counterparty risk management, we always search for improvements to the compliance program. Need to act fairly as between members of the Company As per UK Company law and the Company's regulatory obligations, the Directors understand their duty to act fairly between different Shareholders. As part of their duty under Section 172, the Directors have mapped out the Company's key stakeholder groups and reviewed their level of engagement with them.
This report was approved by the board and signed on its behalf.
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BUSINESS OIL PLATFORM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to $762,279 (2023 - $2,614,565).
The Company declared final dividends of $178,286 (2023: $127,451).
The Directors who served during the year were:
The Company's principal risks and uncertainties are that as stated in the Strategic Report.
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BUSINESS OIL PLATFORM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The well-being of the Company’s employees is safeguarded through strict adherence to health and safety standards. The Safety, Health and Welfare at Work Act 1989 imposes certain requirements on employers and the Company has taken the necessary action to ensure compliance with the Act, including the adoption of a Safety Statement.
The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.
The Company is acting in accordance with international practice and prudently providing to all concerned parties for each delivery relation MSDS (Safety Data Sheet of delivered product). Business Oil Platform Limited is also Certified by all most recent ISO Certification as: ISO 9001, ISO 14001, BS OHSAS 18001. The Company has obtained successful audit and registration with ISCC (International Sustainability and Carbon Certification) for trade with biofuels allowing it to diversify in respect of environmental norms.
The Directors aim to maintain management policies which have resulted in the Company's substantial growth in recent years. The Directors expect the growth to continue at a very fast pace by trading the same crude oil, refined petroleum and petrochemical products and biofuels.
The Company uses various financial instruments. These include mainly letters of credit but also various items, such as trade debtors and trade creditors that arise directly from its operations.
The main purpose of these financial instruments is to raise finance for the Company's operations and to minimise the exposure to exchange rate risk, bad debt risk and insolvency risk.
All creditors are paid within the agreed credit limits as agreed from time to time by the Company and its creditors.
The Company undertook no research and development activities in the year or the previous year.
The Company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
The Company has chosen to include several items in the Strategic Report which would otherwise be required to be disclosed in the Director's Report. This includes information on the exposure to price risk, credit risk and liquidity risk.
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BUSINESS OIL PLATFORM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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BUSINESS OIL PLATFORM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUSINESS OIL PLATFORM LIMITED
We have audited the financial statements of Business Oil Platform Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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BUSINESS OIL PLATFORM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUSINESS OIL PLATFORM LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors' remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit.
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BUSINESS OIL PLATFORM LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUSINESS OIL PLATFORM LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry of management and those charged with governance around actual and potential litigation and
claims • Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Northampton, UK
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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BUSINESS OIL PLATFORM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
REGISTERED NUMBER: 06956515
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 29 form part of these financial statements.
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BUSINESS OIL PLATFORM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Business Oil Platform Limited is a private company, limited by shares, domiciled in England and Wales, registration number 06956515. The registered office is The News Building, 3 London Bridge Street, London, United Kingdom, SE1 9SG.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In assessing the going concern status of the Company, the Directors have considered the trading strategy and cash projections of the Company, including the amounts due within the next 12 months. The Company's forecasts and projections, taking account of reasonable possible changes in trading performance, show that the Company should be able to operate within the levels of its current facilities. The Directors have considered new financing arrangements with the banks. Based on these considerations the Directors have formed a judgement at the time of approving the financial statements that the Company has adequate resources to continue the operational existence for the foreseeable future. The financial statements have therefore been prepared on a going concern basis which assumes that the Company will continue to receive support from creditors, the Directors and shareholders as and when required.
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Revenue from the sale of commodities is recognised upon the transfer of significant risks and rewards of ownership of the goods to the customer. Open trading positions are classified as financial instruments and measured at fair value, unrealised profits and losses on open trading positions are recognised as Turnover in the Statement of Comprehensive Income.
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Financial liabilities at amortised cost including borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried into the Balance Sheet.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There were no factors that may affect future tax charges.
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to $3,044 (2023: $2,851). Contributions totalling $650 (2023: $530) were payable to the fund at the reporting date and are included in other creditors.
21.Contingencies and commitments
As at 31 December 2024, the Company had commitments for the delivery of crude oil, refined petroleum and petrochemical products, which as at 31 December 2024 prices is estimated at $950,040 (2023: $1.76million). The Company is also committed to selling an equivalent volume for the sale of crude oil, refined petroleum and petrochemical products.
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BUSINESS OIL PLATFORM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The controlling party of the Company is the Director Nicolai Petrasco.
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