KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-159
29.
FINANCIAL INSTRUMENTS (CONTINUED)
Credit risk management (Continued)
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:
2011
2010
USD 000’s
USD 000’s
Egypt
131,039
57,376
Yemen
1,134
1,381
Ukraine
36
4,500
Oman
977
1,503
Russia
70
441
133,256
65,201
Liquidity risk management
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
Ultimate responsibility for liquidity risk management rests with the management, which has built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and
long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining
adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
The following tables detail the Group’s remaining contractual maturity for its financial liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities.
At 31 December 2011
Financial
liabilities
Less than
1 year
Between
1 and 3
years
Between
3 and 5
years
More
than 5
years
Total
Weighted
average
effective
interest rate
USD
000’s
USD
000’s
USD
000’s
USD
000’s
USD
000’s
%
Long-term
loans
8,000
40,667
7,721
-
56,388
10.11%
Trade and other
payables
52,964
-
-
-
52,964
56,964
44,667
7,721
-
109,352
