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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
Six months ended 30 June 2015
18
10.
TRADE AND OTHER RECEIVABLES
30 June
31 December
2015
Unaudited
2014
Audited
USD 000’s
USD 000’s
Trade receivables
43,068
73,604
Advances to joint ventures partners
33,656
31,081
Other receivables
4,529
3,634
Prepayments, deposits and advances
11,465
7,270
Amount due from a related party
2,600
-
95,318
115,589
The average credit period on sales is 60 days. No interest is charged on the overdue trade receivables.
Included in the Group’s trade receivables balance are debtors arising in Egypt which are past due at the reporting date for
which the Group has not made any provision as there has not been a significant change in credit quality and the amounts
are still considered recoverable. As at 31 December 2014 the majority of the overdue trade receivables were debtors
arising in Egypt which have subsequently been collected.
Ageing of past due but not impaired
30 June
31 December
2015
Unaudited
2014
Audited
USD 000’s
USD 000’s
61 – 90 days
1,001
13,159
91 – 120 days
-
-
121 – 180 days
-
14,144
> 180 days
-
12,100
Total
1,001
39,403
Amount due from a related party represents the amount lent to the Deputy Chief Executive Officer (Dy. CEO) of the
Group so that he could meet his obligations under a historic agreement with a third party on behalf of the Group and
purchase 806,451 shares of the Company held by that third party, until such time as the Dy. CEO is able to sell those
shares and repay the loan to the Company. During the period the Dy. CEO has purchased a number of shares on behalf of
the Company, and subject to shareholder approval, the Company anticipates that it will purchase them from the Dy. CEO
and hold them as treasury shares.
During the period receivables from Gharib amounting to USD 11,941 thousand settled against payable purchase
consideration for additional 25% working interest in BEA field in Egypt (see note 8).
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade
receivable from the date credit was initially granted up to the reporting date. Management believes that there is no credit
provision required as all the trade receivables are fully collectible. The maximum exposure to credit risk at the reporting
date is the carrying amount of each class of receivable mentioned above. The directors consider that the carrying amount
of trade and other receivables is approximately equal to their fair value.