KUWAIT ENERGY plc GROUP
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Three months ended 31 March 2014
F-10
1.
INCORPORATION AND ACTIVITIES
Kuwait Energy plc (“Company”) is a company incorporated on 12 September 2011 in accordance with the
Commercial Companies Law in the Bailiwick of Jersey.
The Company and its subsidiaries (together referred to as “the Group”) have been established with the objective
of exploration, production and commercialisation of crude oil and natural gas. The Company’s registered address
is Queensway House, Hilgrove Street, St Helier, Jersey, JE1 1ES.
The condensed financial statements represent a ‘condensed set of financial statements’. Accordingly, they do not
include all of the information required for a full annual financial report and are to be read in conjunction with the
Group’s financial statements for the year ended 31 December 2013, which were prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The financial
information for the year ended 31 December 2013 in this report does not constitute statutory accounts. This
information has been derived from the statutory accounts for the year ended 31 December 2013, a copy of which
has been filed with the Jersey Registrar of Companies. The auditor’s report on these accounts was unqualified and
did not draw attention to any matters by way of emphasis.
2.
ACCOUNTING POLICIES
Basis of preparation
The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European
Union. The condensed set of financial statements included in this quarterly financial report has been prepared in
accordance with International Accounting Standard 34 ‘Interim Financial Reporting’, as adopted by the European
Union.
Going concern
As at 31 March 2014 the Group was funded principally by a combination of its cash balances, equity and long-
term debt. The Group has significant levels of planned capital expenditure during the next 12 months, although
the majority of this is discretionary. In order to enable it to fund these plans, the Group is also looking to sell
partial interests in its Iraq interests, to reduce the capital expenditure requirement and receive sales proceeds,
which will help the Group meet its capital expenditure plans in Iraq. It also continues to focus on collecting the
amounts owed from its major customer in Egypt, EGPC, and is actively pursuing collection of these balances, as
evidenced by the significant amounts collected during 2014 to date (see note 10).
The Group’s projections, taking into account reasonably possible changes in trading conditions, indicate that it
should have enough cash flows to meet its minimum commitments, including loan repayments, and continue its
operations. Accordingly the Directors have, at the time of approving these financial statements, a reasonable
expectation that the Company and the Group have adequate resources to continue in operational existence for the
foreseeable future, being 12 months from the date of approval of these financial statements. Thus the Directors
continue to adopt the going concern basis of accounting in preparing these condensed consolidated financial
statements.
Changes in accounting policy and disclosures
The accounting policies used in the preparation of these condensed set of financial statements are consistent with
those used in the preparation of the annual consolidated financial statement for the year ended 31 December 2013,
except for the adoption of the following new standards and interpretations effective as of 1 January 2014. The
following new and revised standards have been adopted in the current period.
IFRS 10 Consolidated Financial Statements
