120

CONSOLIDATED STATEMENT OF PROFIT OR LOSS At 31 December 2017 and 2016 Compañía Española de Petróleos, S.A.U and Subsidiaries (Consolidated Group) Thousands of euros

2017 2016

Sales of goods and rendering of services 18,211,611 15,455,171

Excise tax on oil and gas charged on sales 2,605,162 2,493,379

Excise tax on Revenue (Notes 3 r) and 22) 20,816,773 17,948,550

Changes in inventories of finished goods and work in progress 128,160 (151,248)

In-house work on non-current assets (Notes 8 and 10) 35,838 38,574

Procurements (13,840,261) (11,566,239)

Other operating income 54,589 76,178

Staff costs (Note 22) (610,898) (613,360)

Changes in operating allowance (Notes 13 and 14) (9,890) 334,112

Other operating expenses

Excise tax on oil and gas (2,608,744) (2,496,204)

Other expenses (Note 22) (2,010,944) (1,891,336)

Amortization charge (Notes 8 and 10) (680,453) (700,052)

Allocations to profit or loss of grants related to non-financial (Note 22) 30,196 41,094

Impairment and gains or losses on disposals of non-current assets (Note 22) (274,785) (81,680)

Operating Profit (loss) 1,029,581 938,389

Share in profit of companies accounted for using the equity method (Note 7) 47,838 (58,597)

Finance income (Note 24) 144,026 84,699

Finance costs (Note 24) (175,639) (144,049)

Impairment and gains or losses on disposals of Finance instruments (Note 24) 7,732 (1,339)

CHAPTER 6 Appendices