11 / 23
KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
Six months ended 30 June 2015
10
1.
INCORPORATION AND ACTIVITIES
Kuwait Energy plc (“Company”) is a company incorporated on 12 September 2011 in Jersey in accordance with the
Commercial Companies Law in the Bailiwick of Jersey.
The Company and its subsidiaries (together referred to as “the Group”) have been established with the objective of
exploration, production and commercialisation of crude oil and natural gas. The Company’s registered address is
Queensway House, Hilgrove Street, St Helier, Jersey, JE1 1ES.
The condensed financial statements represent a ‘condensed set of financial statements’. Accordingly, they do not
include all of the information required for a full annual financial report and are to be read in conjunction with the
Group’s financial statements for the year ended 31 December 2014, which were prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The financial information
for the year ended 31 December 2014 in this report does not constitute statutory accounts. This information has been
derived from the statutory accounts for the year ended 31 December 2014, a copy of which has been filed with the
Jersey Registrar of Companies. The auditor’s report on these accounts was unqualified and did not draw attention to
any matters by way of emphasis.
2.
ACCOUNTING POLICIES
Basis of preparation
The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union.
The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance
with International Accounting Standard 34 ‘Interim Financial Reporting’, as adopted by the European Union.
Going concern
As at 30 June 2015, the Group was funded principally by a combination of its cash balances, equity, borrowings and
convertible loans. The Group has significant levels of planned capital expenditure during the next 12 months, although
the majority of this is discretionary. It also continued to focus on collecting the amount owed from its major customer
in Egypt, Egyptian General Petroleum Corporation (“EGPC”), and is actively pursuing collection of these balances, as
evidenced by the significant amounts collected during 2015 (note 10).
The Group’s projections, taking into account reasonably possible changes in trading conditions, indicate that it should
have enough cash flows to meet its minimum commitments, including loan repayments, and continue its operations for
at least 12 months from the date of approval of these condensed financial statements. Accordingly the Directors have,
at the time of approving these condensed financial statements, a reasonable expectation that the Company and the
Group have adequate resources to continue in operational existence for the foreseeable future. Thus the Directors
continue to adopt the going concern basis of accounting in preparing these condensed set of financial statements.
Changes in accounting policy and disclosures
The accounting policies used in the preparation of these condensed set of financial statements are consistent with those
used in the preparation of the annual consolidated financial statement for the year ended 31 December 2014, except for
the following new and revised standards that became effective in the EU in 2015:
IFRS 2 Share-based Payment – Definition of vesting conditions
IFRS 3 Business Combinations – Accounting for contingent consideration in a business combination
IFRS 8 Operating Segments – Aggregation of operating segments
IFRS 8 Operating Segments – Reconciliation of the total reportable segments assets to the entity’s assets
IFRS 13 Fair Value Measurement – Scope of paragraph 52 (portfolio exemption)
IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – Revaluation method – proportionate
restatement of accumulated depreciation/amortisation
Amendments to IAS 19 - Defined Benefit Plans: Employee Contributions
IAS 24 Related Party Disclosures – Key management personnel
IAS 40 Investment Property – Interrelationship between IFRS 3 and IAS 40 (ancillary services)
IFRIC 21 – Levies