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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
Six months ended 30 June 2015
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17.
RETROSPECTIVE RESTATEMENT
As described in note 2 of the financial statements for the year ended 31 December 2014, the Group voluntarily
changed their accounting policy for the intangible exploration and evaluation assets from “modified full cost method”
to the “successful efforts method”. The impact of this change in accounting policy on the annual financial statements is
explained fully in note 2 of the 31 December 2014 Group financial statements which are available on the Group’s
website. The impact of this change in accounting policy to the results for the 6 months ended 30 June 2014 has resulted
in an increase in profit by USD 1,501 thousand and EPS by 0.5 cents for the corresponding reported period due to a
decrease in the ‘depletion and amortisation of oil and gas assets’ by USD 1,501 thousand. The decrease in the
'depletion and amortisation of oil and gas assets' charge relates to the fact that these assets, which were previously
being depleted in 2014, were retrospectively written off in a previous period as a result of the adoption of the
successful efforts method, resulting in a reduction of the depletion and amortisation charge in 2014.
18.
OTHER INFORMATION
a)
Annual General Meeting
The Annual General Meeting of the Parent Company for approval of the annual audited consolidated financial
statements of the Group for the year ended 31 December 2014 to be held on 1 December 2015.
b)
Treasury shares
In 2015, the Company purchased 31.75 million KE plc shares at a price of Kuwaiti Dinar 0.620 per share from its
subsidiary Kuwait Energy Company K.S.C. (Closed) (“KEC”) at a book value of USD 72.0 million which are now
being directly held as treasury shares. Treasury shares have been included under 'other reserves' in equity. There was
no impact in the consolidated equity, as in the consolidated financial statements of 2014, these shares were already
classified under treasury shares on the acquisition of KEC.
19.
SUBSEQUENT EVENTS
On 30 September 2015, the Group completed the assignment of 10% participating interest in Block 9 exploration,
development and production service contract in Iraq to EGPC, with an effective date of 1 July 2013. The Deed of
Assignment signed by all relevant parties (EGPC, KE, Dragon Oil and SOC). The Group now has a 60% share in
Block 9.