78
79
KUWAIT ENERGY plc AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
31
17.
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.
18.
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.
19.
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.
KUWAIT ENERGY plc AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
32
20.
LONG-TERM LOANS
Current
Non-current
2011
2010
2011
2010
US
D 000’s
US
D 000’s
US
D 000’s
US
D 000’s
Due to foreign banks
8,000
-
45,000
53,000
The details of long-term loans are as follows:
Description
2011
2010
US
D 000’s
US
D 000’s
(i) USD 35 million facility from International Finance
Corporation (“IFC”) that bears
an interest rate of LIBOR plus 3.64%
to 4.01% per annum. (a)
30,000
30,000
(ii) USD 15 million facility financing from IFC that bears an
interest rate of 1.176% per annum plus 5% earnings before interest,
depreciation and amortisation arising on the secured assets. (b)
15,000
15,000
(iii) The Loan from European Bank for Reconstruction and Development
(“EBRD”) bears
an interest rate of LIBOR plus 6.5% per annum. The
repayment is in quarterly instalments commencing 27 January 2012
and ending 27 October 2013. (c)
8,000
8,000
53,000
53,000
(a) The facility is secured by pledges on the assets of the subsidiaries Kuwait Energy Egypt Ltd and Kuwait
Energy Yemen Ltd (See note 14). The loan is to be repaid on 15 June 2014.
(b) The facility is secured by pledges on the assets of the subsidiaries Kuwait Energy Egypt Ltd and Kuwait
Energy Yemen Ltd (See note 14). The facility is to be repaid in two annual instalments of USD 7,500
thousand each on 30 June 2014 and 30 June 2015.
(c) The debt is secured by pledges on the assets of the subsidiary of Pechora Energy Company Limited (See
note 14).
As at 31 December 2011, the Group has undrawn loan facilities amounting to USD 5,000 thousand (2010:
USD 5,000 thousand).
The facilities shown above include certain financial covenants. One of these covenants on the EBRD facility
was in breach as at 31 December 2011 and accordingly the full amount has been disclosed as falling due within
one year.
Kuwait Energy Plc And Subsidiaries
Notes To The Consolidated Financial Statements
For The Year Ended 31 December 2011
Kuwait Energy Plc And Subsidiaries
Notes To The Consolidated Financial Statements
For The Year Ended 31 December 2011
