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Prudent Financial Policy and Risk
Management
Kuwait Energy’s funding policy is targeted at ensuring
that sufficient facilities are available from diverse
funding sources to facilitate execution of business plan
New capital investment projects are evaluated on the
basis of NPV, investment efficiency and payback period
Kuwait Energy maintains a life of field, 3 year plan,
detailed 12 month budgeting, allowing the company to
tailor development capex to cash availability on regular
basis
No commodity price, interest rate or Forex hedging
Sales and majority of expenses are in US$,
hence limited forex exposure
Major portion of funded debt constitutes fixed
interest rate indebtedness
Key Elements of Financial Policy
12.6x
128.9x
19.9x
14.2x
8.1x
2011
2012
2013
2014
2015
0.1x
0.8x
0.8x
0.8x
3.3x
2011
2012
2013
2014
2015
OCF
(1)
/ Interest Expense
Net Debt / OCF
(1)
(1) Operating cash flow before working capital adjustments.
Key Leverage Metrics
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