KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-149
47.
CASH AND BANK BALANCES
2011
2010
USD 000’s
USD 000’s
Cash and bank balances
40,477
58,092
Bank balances amounting to USD 16,466 thousand (2010: USD 18,738 thousand) are restricted against issue
of letters of guarantee.
48.
SHARE CAPITAL
The authorised share capital of the Company consists of 325 million shares of one Pound Sterling (“Pound
Sterling”) each, amounting to Pound Sterling 325 million. The issued and paid up share capital consists of
317.5 million shares.
The issued share capital of Kuwait Energy K.S.S.C. (see note 1) was 1,270,000 thousand shares of 100 fils each
amounting to KD 127,000 thousand. As part of the group restructuring described in note 1 the share capital has
been reduced in Kuwait Energy K.S.S.C. and new shares were issued by the new parent company, Kuwait
Energy plc. The resulting difference in the USD value of the new share capital issue has been recorded as
merger reserve. In order to provide meaningful financial statements under the merger accounting principles
described in note 1, the share capital of the parent company prior to the restructuring has been restated to reflect
the relative value of the Kuwait Energy plc shares at 31 December 2011.
During 2010 and 2011, Kuwait Energy K.S.S.C. issued additional shares for total consideration, before
expenses, of USD 33,412 thousand and USD 76,593 thousand respectively.
49.
OTHER RESERVES
2011
2010
USD 000’s
USD 000’s
Shares to be issued
12,832
-
Share based compensation reserve (See note 24)
1,699
1,093
Foreign currency translation reserve
(8,774)
(8,632)
Cash flow hedging reserve
-
(3,662)
5,759
(11,201)
The shares to be issued reserve represents additional consideration now due on the acquisition of Pechora
Energy Company in Russia in 2009, with a corresponding increase recorded in property, plant and equipment.
This contingent consideration was based on the volume of certified commercial reserves, the threshold for
which was met during 2011. At 31 December 2009 the balance in this reserve was USD 25 million, relating to
the acquisition of Russian subsidiaries Pechora Energy Company LLC and OJSC VIK in 2008. The related
shares were issued in full during 2010.
