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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six month period ended 30 June 2017
13
4.
TAXATION
The overall tax charge of US$3.9 million (30 June 2016: tax credit US$ 0.2 million, 31 December 2016: tax charge US$ 1.5
million) includes a prior period tax charge of US$1.0 million. Corporation tax in the Company’s country of domicile is
calculated at 0% on assessable profits for all the periods, this rate being the applicable statutory tax rate for international
businesses that are tax resident in Jersey. Taxation for other jurisdictions is calculated at the rates prevailing in the
respective jurisdiction and comprises the reminder of the charge.
5.
EARNINGS/(LOSS) PER SHARE
The calculation of basic earnings/(loss) per share is based on the profit for the period after taxation attributable to
owners of the Company of US$ 5.7 million (30 June 2016: loss of US$ 11.2 million, 31 December 2016: loss of US$ 116.1
million) and a weighted average number of shares, net of treasury shares, of 326.8 million (30 June 2016: 326.6 million,
31 December 2016: 326.6 million).
There was no difference between basic and diluted earnings/(loss) per share for all the periods presented. The only
potential dilutive instruments were the outstanding Employee Incentive Scheme (EIS) share awards, which have no
material dilution impact on earnings/(loss) per share, together with shares to be issued on conversion of convertible
loan which are not included in the calculation for either period as the number of shares that could be exercised is
dependent on future events.
6.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS
E&E assets
Cost
US$ 000’s
As at 1 January 2016
32,663
Additions
2,503
Transfer to Property, plant and equipment
(1,485)
Transfer to assets held for sale
(5,989)
As at 31 December 2016
27,692
Additions
2,158
Transfer to Property, plant and equipment
(1,785)
Exploration expenditure written off
(1,531)
As at 30 June 2017
26,534
As at 30 June 2017, exploration costs of US$ 26.5 million (31 December 2016: US$ 27.7 million) were capitalised pending
further evaluation of whether or not the related oil and gas properties are commercially viable, in line with the Group’s
accounting policy for oil and gas assets.
During the period ended 30 June 2017, the Company has written off unsuccessful exploration expenditure amounting
to US$ 1.5 million related to Egypt (31 December 2016: nil), and US$ 1.8 million exploration costs associated with proven
commercial reserves in Egypt (31 December 2016: US$ 1.5 million) were transferred to property, plant and equipment.