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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
64
33.
FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk management (continued)
Financial liabilities
Less than
1 year
Between
1 and 3
years
Between
3 and 5
years
More than
5 years
Total
Weighted
average
effective
interest rate
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
%
At 31 December 2012
Long-term loans
3,306
6,654
66,600
-
76,560
6.62%
Convertible loans
7,359
16,000
16,000
89,967
129,326
16%
Trade and other
payables (restated)
47,228
-
-
-
47,228
-
57,893
22,654
82,600
89,967
253,114
At 31 December 2011
Long-term loans
8,000
40,667
7,721
-
56,388
10.11%
Convertible loans
-
-
-
-
0
-
Trade and other
payables (restated)
44,718
-
-
-
44,718
52,718
40,667
7,721
0
101,106
The group has access to financial facilities as described in notes 24 and 25. The group expects to meet its other
obligations from operating cash flows.
Capital risk management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the
return to the shareholders through the optimisation of debt and equity balance. The Group’s overall strategy remains
unchanged from 2011 through to 30 June 2014.
The capital structure of the Group consists of equity comprising issued share capital, share premium and merger
reserve (see note 22), other reserves (see note 23) and retained earnings.
Gearing ratio
The gearing ratio at period/year end was as follows:
As at 30 June
As at 31 December
2014
2013
2013
2012
2011
Audited
Unaudited
(Restated)
Audited
(Restated)
Audited
(Restated)
Audited
(Restated)
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Debt (i)
271,008
233,542
277,067
147,244
53,000
Less: Cash and bank balances
and liquid investments
(125,349)
(29,049)
(127,594)
(46,766)
(38,762)
Net debt
145,659
204,493
149,473
100,478
14,238
Equity
499,809
669,010
448,252
717,942
702,687
Net debt to equity ratio (%)
29.1
30.6
33.3
14.0
2.0
(i) Debt is defined as long-term and short term loans as detailed in note 24 and convertible loans as detailed in note
25.