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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
38
29.
FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk management (continued)
The following tables detail the Group’s remaining
contractual maturity for its financial liabilities (including interest).
The tables have been drawn up based on the undiscounted cash flows of financial liabilities.
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
%
At 31 December 2015
Borrowings
23,750
47,500
273,750
- 345,000
10.6%
Obligations under
finance lease
1,766
2,384
2,085
-
6,235
5.0%
Convertible loans
10,250
100,499
17,325
- 128,074
14.7%
Trade and other
payables
119,659
-
-
- 119,659
155,425
150,383
293,160
- 598,968
At 31 December 2014
Borrowings
23,750
47,500
297,500
- 368,750
10.6%
Convertible loans
9,250
35,500
89,585
- 134,335
12.0%
Trade and other
payables
133,653
-
-
- 133,653
166,653
83,000
387,085
- 636,738
The group has access to financial facilities as described in notes 22 and 23. The group expects to meet its other
obligations from operating cash flows.
Capital risk management
The primary objective of the Group
’s capital management policy is
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. The Group
manages its capital structure and makes adjustments to it in light of changes in economic conditions.
The Group’s
overall strategy remained unchanged during 2015.
The capital structure of the Group consists of equity comprising issued share capital (note 20), share premium, other
reserves (note 21) and retained deficit.
Gearing ratio
The gearing ratio at year end was as follows:
2015
2014
USD 000’s
USD 000’s
Total debt (i)
368,372
360,288
Less: Cash and cash equivalents
(105,297)
(215,992)
Net debt
263,075
144,296
Equity attributable to owners of the Company
349,276
407,742
Net debt to equity ratio (%)
75.3
35.4
(i) Debt is defined as borrowings excluding accrued interest, as detailed in note 22, convertible loans as detailed in
note 23 and obligations under finance leases as detailed in note 24.
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