KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-148
45.
INVENTORIES
2011
2010
USD 000’s
USD 000’s
Crude oil
2,688
3,162
Spare parts, materials and supplies
13,552
14,700
16,240
17,862
Spare parts, materials and supplies are used in operations and are not held for re-sale.
46.
TRADE AND OTHER RECEIVABLES
2011
2010
USD 000’s
USD 000’s
Trade receivables
133,256
65,201
Prepayments, deposits and advances
6,141
18,379
Receivable on farm out of working interests (See note 13)
-
19,464
Other receivables
36,658
32,155
176,055
135,199
Other receivables include amounts to be received in connection with the arbitration claim (See note 30(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 97,664
thousand (2010: USD 39,577 thousand) 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 (See “Debtor recoverability” in note 4 for further details).
Ageing of past due but not impaired
2011
2010
USD 000’s
USD 000’s
61 – 90 days
9,225
14,403
91 – 120 days
20,236
5,504
121 – 180 days
24,412
14,016
> 180 days
43,791
5,654
Total
97,664
39,577
During the year, the Group has written off impaired trade receivables of USD Nil (2010: USD 1,329
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.
