KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2013
F-47
4.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(CONTINUED)
Key sources of estimation uncertainty (continued)
Debtor recoverability
The Group has significant trade receivables which are past due but not impaired, as described in note 19. The
majority of this balance is due from Egyptian General Petroleum Corporation (“EGPC”). During the course of
2013, the Egyptian political situation remained unstable due to the “Arab Spring” revolutions, which caused a
significant delay in the receipt of amounts owed to the Group. However, management believes that all amounts
owed at 31 December 2013 will be collected during the course of the coming year. In making this judgement,
factors considered include EGPC’s strong track record of ultimate settlement, the receipt of significant (USD 241
million) funds during 2013 compared to the opening balance of USD 164 Million and an agreement reached in
2013 under which funds will be received on a regular monthly basis. Subsequent to the year end the company
received a further USD 24 Million from EGPC and a cargo receipt of USD 50.7 Million.
5.
SEGMENTAL INFORMATION
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the
Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the
segment and to assess its performance. The information reported to the Group’s chief operating decision maker
for the purposes of resource allocation and assignment of segment performance is specifically focused on the
geographical area (country). All of the segment revenue reported below is from external customers based on the
location of the assets.
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in
note 3. Segment profit represents the operating profit earned by each segment. This is the measure reported to
the chief operating decision maker for the purposes of resource allocation and assessment of segment
performance.
For the purposes of monitoring segment performance and allocating resources between segments:
there are no assets used jointly by any reportable segment; and
there are no liabilities for which any segment is jointly liable other than the facilities from Deutsche Bank
and International Finance Corporation (see note 22) amounting to USD 104.5 Million (2012: USD 60
Million) which has been utilised jointly by the Company, Kuwait Energy Egypt Ltd and Kuwait Energy
Yemen Ltd.
No revenue or assets arose in or relate to Jersey, the Company’s country of domicile, in either year.
Information about major customers
Included in revenues arising from Egypt for the year is revenue of approximately USD 193,487 thousand (2012:
USD 168,241 thousand) which arose from sales to the Group’s largest customer. The other major customer is
Exxon Mobil in Yemen and the revenue for the year from Exxon Mobil was USD 54,916 thousand (2012: USD
Nil)
