KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-99
6.
REVENUE
2012
2011
USD 000’s
USD 000’s
Oil sales
217,236
166,649
Gas sales
8,031
12,272
225,267
178,921
7.
PROFIT FOR THE YEAR
Profit for the year is stated after charging:
2012
2011
USD 000’s
USD 000’s
Staff costs
9,513
8,190
Depletion and amortisation of oil and gas assets
65,835
48,145
Depreciation of other fixed assets
1,888
1,307
8.
COST OF SALES
2012
2011
USD 000’s
USD 000’s
Operating costs
44,752
40,421
Depletion of oil and gas assets
65,835
48,145
Royalties
9,977
8,205
120,564
96,771
9.
NET IMPAIRMENT LOSS
2012
2011
USD 000’s
USD 000’s
Impairment of oil and gas assets-Luzskoye field Russia
30,862
-
(Reversal) /Impairment oil and gas assets– JAA 429 field Ukraine
(4,066)
4,066
(Reversal) /Impairment net current assets– JAA 429 field Ukraine
(764)
4,454
Reversal of impairment – Karim small field’s Oman
(540)
-
25,492
8,520
During the year the company recognised an impairment loss on the Luzskoye field in Russia amounting to USD
30,862 thousand to match the carrying value of the asset to the recoverable value, measured on a value in use
basis, following a downgrade in commercial reserves. The pre-tax real discount rate used in this calculation was
11.4% (2011: 10%). The impairment charge is sensitive to, in particular, the discount rate used and a 1% change
in the discount rate would alter the impairment charge by approximately USD 12 Million.
The Company also regained its licence on the JAA 429 field in Ukraine following a successful court appeal and
wrote back the oil and gas assets written off in full last year when the ownership of the field was in dispute,
together with certain related working capital balances which have also now been recovered. The company also
reversed an impairment of USD 540 thousand earlier recognised on Karim Small fields in Oman due to an
increase in commercial reserves.
