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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
61
33.
FINANCIAL INSTRUMENTS (CONTINUED)
Market risk (continued)
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the
reporting date are as follows:
Liabilities
As at 30 June
As at 31 December
2014
2013
2013
2012
2011
Audited
Unaudited
Audited
Audited
Audited
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Kuwaiti Dinar
39
87
22
-
-
Ukraine Hryvnia
-
2,436
5,642
2,209
1,425
Russian Rouble
4,590
4,002
4,778
3,145
7,452
Assets
As at 30 June
As at 31 December
2014
2013
2013
2012
2011
Audited
Unaudited
Audited
Audited
Audited
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Kuwaiti Dinar
68
1,047
3,125
2,439
2,832
Ukraine Hryvnia
-
3,584
5,110
364
82
Russian Rouble
270
231
4,466
1,389
422
Foreign currency sensitivity analysis
The Group’s main foreign currency exposure is to fluctuations in the Kuwait Dinar, Ukraine Hryvnia and Russian
Rouble.
The following table details the Group’s sensitivity to a 10% increase and decrease in the USD against Kuwaiti Dinar,
Ukraine Hryvnia and Russian Rouble. The sensitivity analysis includes only outstanding Kuwaiti Dinar, Ukraine
Hryvnia and Russian Rouble denominated monetary assets and liabilities and adjusts their translation at the year end
for a 10% change in foreign currency rates. A positive number below indicates an increase in profit and a negative
number indicates decrease in profit. All other variables are held constant. There have been no changes in the
methods and the assumptions used in the preparation of the sensitivity analysis.
As at 30 June
As at 31 December
2014
2013
2013
2012
2011
Audited
Unaudited
Audited
Audited
Audited
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Impact on consolidated
statement of income
Kuwaiti Dinar
3
96
310
(244)
(283)
Ukraine Hryvnia
-
115
(53)
185
134
Russian Rouble
(432)
(377)
(31)
176
703