KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-160
29.
FINANCIAL INSTRUMENTS (CONTINUED)
At 31 December 2010
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
-
9,090
50,208
-
59,298
5.3
Trade and other
payables
46,407
-
-
-
46,407
46,407
9,090
50,208
-
105,705
Fair value of financial instruments
Management believes that the fair value of all of the Group’s financial assets and financial liabilities is not
significantly different from their respective carrying values.
Capital risk management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising
the return to the shareholders through the optimisation of debt and equity balance. The Group’s overall
strategy remains unchanged from 2010.
The capital structure of the Group consists of equity comprising issued share capital, share premium and
merger reserve (see note 18), other reserves (see note 19) and retained earnings.
Gearing ratio
The gearing ratio at year end was as follows:
2011
2010
USD 000’s
USD 000’s
Debt (i)
53,000
53,000
Less: Cash and bank balances and liquid investments
(40,477)
(58,092)
Net debt
12,523
(5,092)
Equity
734,292
631,302
Net debt to equity ratio (%)
1.7
-
(i) Debt is defined as long-term loans as detailed in note 20.
