96-97 / 116
97
96
KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2014
37
17.
OTHER NON-CURRENT ASSETS
2014
2013
USD 000’s
USD 000’s
Decommission and retirement benefit obligation fund
5,141
-
Unamortised initial transaction cost of loan facilities
-
6,455
5,141
6,455
Decommission and retirement benefit obligation fund relates to amounts held in an escrow account to settle liabilities
of environmental restoration and end of service benefit obligation of Block 5 in Yemen.
18.
INVENTORIES
2014
2013
USD 000’s
USD 000’s
Crude oil
3,433
4,656
Spare parts, materials and supplies
18,209
19,493
21,642
24,149
Crude oil is measured at net realisable value. Spare parts, materials and supplies are used in operations and are not
held for re-sale.
19.
TRADE AND OTHER RECEIVABLES
(Restated)
2014
2013
USD 000’s
USD 000’s
Trade receivables
73,604
124,785
Advance to joint ventures partners
31,081
17,989
Prepayments, deposits and advances
7,270
13,458
Other receivables
3,634
7,621
115,589
163,853
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.
Ageing of past due but not impaired
2014
2013
USD 000’s
USD 000’s
61
–
90 days
13,159
15,858
91
–
120 days
-
-
121
–
180 days
14,144
-
> 180 days
12,100
73,672
Total
39,403
89,530
Subsequent to the year end the Company has recovered the entire balance outstanding with EGPC at 31 December
2014 of USD 66,249 thousand. Between January and April 2015 USD 27,750 thousand was received directly from
EGPC and a further USD 50,513 thousand was recovered through the cargo sale mechanism.
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.
KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2014
38
20.
CASH AND CASH EQUIVALENTS
(Restated)
2014
2013
USD 000’s
USD 000’s
Cash and cash equivalents
215,992
127,594
215,992
127,594
Bank balances amounting to USD 500 thousand (2013: USD 31,183 thousand) are restricted against issue of letters of
guarantee, debt service accrual account and cash retention account related to term loans.
21.
SHARE CAPITAL
The authorised share capital of the Company consists of 451.2 million shares of one Pound Sterling each, amounting
to Pound Sterling 451.2 million (2013: 450.7 million). The issued and paid up share capital at 31 December 2014
consists of 357.2 million Shares (2013: 327.3 million).
During the year, the Company issued 28 million shares to the shareholders of KEC in accordance with the terms of
share acquisition of KEC approved in Annual General Meeting 2013 and 2014 (note 15). Further, the Company
issued 1.4 million shares (2013:1.2 million) to employees as part of the employee incentive scheme and 0.5 million
shares to the shareholders of Concorde Oil and Gas Limited for settlement of outstanding obligation in relation to the
2010 acquisition of the Luzskoye and Chikshinskoe assets in Russia (note 11).
In the previous year, the Company issued 3.2 million shares to the International Finance Corporation (IFC) in
accordance with the terms of the 2010 share subscription agreement.
22.
OTHER RESERVES
Treasury
shares
Merger
reserve
Foreign
currency
translation
reserve
Retirement
benefit
reserve
Total
USD 000’s
USD 000’s
USD 000’s
USD 000’s
USD 000’s
At 1 January 2013
- (36,140) (8,766)
-
(44,906)
Other comprehensive income for the
year
-
-
8,766
137
8,903
At 31 December 2013
- (36,140)
-
137
(36,003)
Other comprehensive income for the
year
-
-
-
812
812
Acquisition of subsidiary (note 15)
(72,000)
2,331
-
-
(69,669)
Purchase of treasury shares (note 32)
(1,749)
-
-
-
(1,749)
At 31 December 2014
(73,749) (33,809)
-
949
(106,609)