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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2016
45
28.
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
US$ 000’s US$ 000’s
US$ 000’s
US$ 000’s US$ 000’s
%
At 30 June 2016
Borrowings
23,750
47,500
261,875
-
333,125
10.6%
Obligations under
finance lease
1,383
2,384
1,490
-
5,257
5.0%
Convertible loans
10,250
112,699
-
-
122,949
14.3%
Trade and other payables
120,189
-
-
-
120,189
-
155,572
162,583
263,365
-
581,520
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
The group has access to financial facilities as described in notes 21 and 22. The group expects to meet its other
obligations from operating cash flows (also see going concern section of note 3).
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 the period ended 30 June 2016.
The capital structure of the Group consists of equity comprising issued share capital (note 19), share premium, other
reserves (note 20) and retained deficit.
Gearing ratio
The gearing ratio at period end was as follows:
30 June
31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
Total debt (i)
370,771
368,372
Less: Cash and cash equivalents
(54,459)
(105,297)
Net debt
316,312
263,075
Equity attributable to owners of the Company
339,413
349,276
Net debt to equity ratio (%)
93.2
75.3
(i) Debt is defined as borrowings excluding accrued interest, as detailed in note 21, convertible loans as detailed in
note 22 and obligations under finance leases as detailed in note 23.