KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2013
F-64
27.
RELATED PARTY TRANSACTIONS
Related parties comprise major shareholders, directors and executive officers of the Group, their families and
companies of which they are the principal owners. Balances and transactions between the Company and its
subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
Kuwait Energy KSSC, the parent company prior to the restructuring has continued to provide staff to the Group at
cost plus a mark-up, representing an arm’s length transaction, whilst the contracts for those staff are transferred to
subsidiaries of the group. The charge to the Group after completion of the restructuring in this regard was USD
150 thousand (2012 : USD 145 thousand) and USD 473 thousand was owed to Kuwait Energy KSSC in this
regard at 31 December 2013 (2012: USD 1,148 thousand)
The other related party transactions and balances included in the Group’s consolidated financial statements are as
follows:
a)
Compensation of key management personnel:
Key management personnel are considered to be the Board of Directors of the Company.
The remuneration of key management personnel during the year was as follows:
2013
2012
USD 000’s
USD 000’s
Salaries and other short-term benefits
1,667
1,627
Consultancy fees paid to non- executive director
296
98
Post-employment benefits
33
22
Share-based payments
346
453
2,342
2,200
b)
Agreement to purchase shares (see note 31)
11,000
11,000
28.
OPERATING LEASE ARRANGEMENTS
2013
2012
USD 000’s
USD 000’s
Minimum lease payments under operating leases recognised in
the consolidated statement of income
1,810
1,326
At the consolidated statement of financial position date, the Group had outstanding commitments for future
minimum lease payments under operating leases, which fall due as follows;
Within one year
1,442
1,888
Between two years and five years
12
215
1,454
2,103
Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases are
negotiated for an average term of one to two years and rentals are fixed for an average of two years with an option
to extend for a further two years at the then prevailing market rate.
29.
FINANCIAL INSTRUMENTS
Significant accounting policies
