KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-103
15.
INVENTORIES
2012
2011
USD 000’s
USD 000’s
Crude oil
3,060
2,688
Spare parts, materials and supplies
16,805
13,552
19,865
16,240
Spare parts, materials and supplies are used in operations and are not held for re-sale.
16.
TRADE AND OTHER RECEIVABLES
2012
2011
USD 000’s
USD 000’s
Trade receivables
169,427
133,256
Prepayments, deposits and advances
11,917
6,141
Other receivables
38,676
36,658
220,020
176,055
Prepayments include USD 5,000 thousand for securing a drilling rig to be used for drilling activities in 2013
(2011: USD nil) . Other receivables include amounts to be received in connection with the arbitration claim
(see note 31(a)), amounts owed by joint venture partners and VAT.
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 with a carrying amount of USD 125,227
thousand (2011: USD 97,664 thousand) arising in Egypt which are past due at the reporting date for which
the Group has not provided against as there has not been a significant change in credit quality and the
amounts are still considered recoverable. This is a key source of estimation uncertainty and is discussed in
further detail in the “Debtor recoverability” section of note 4.
Ageing of past due but not impaired
2012
2011
USD 000’s
USD 000’s
61 – 90 days
16,982
9,225
91 – 120 days
26,524
20,236
121 – 180 days
1,707
24,412
> 180 days
80,014
43,791
Total
125,227
97,664
During the year, the Group has written off impaired trade receivables of USD nil (2011: USD nil thousand).
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.
