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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2016
36
17.
TRADE AND OTHER RECEIVABLES
30 June 31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
Trade receivables
44,019
30,167
Advance due from joint venture partners
7,210
5,444
Prepayments, deposits and advances
2,779
2,609
Other receivables
6,391
8,331
Amount due from a related party (note 30b)
2,483
1,647
62,882
48,198
The average credit period on sales is 60 days. No interest is charged on the overdue trade receivables.
Included in the Group’s trade receivables balance are debtors of US$ 8.3 million in Iraq (31 December 2015: nil) and
US$ 4.7 million (31 December 2015: US$ 1.6 million) in Egypt which are past due at the reporting date for which the
Group has not made any provision as there has not been a significant change in credit quality and the amounts are still
considered recoverable.
Ageing of past due but not impaired
30 June
31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
61 – 90 days
13,005
1,599
91 – 120 days
-
-
121 – 180 days
-
-
> 180 days
-
-
Total
13,005
1,599
During 2015 receivables fromGharib amounting to US$ 11.9 million were settled by offsetting against payable purchase
consideration for an additional 25% working interest in BEA field in Egypt (see note 13).
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the
trade receivable from the date credit was initially granted up to the reporting date. Management believes that there
is no credit provision required as all the trade receivables are fully collectible. The maximum exposure to credit risk at
the reporting date is the carrying amount of each class of receivable mentioned above. The directors consider that the
carrying amount of trade and other receivables is approximately equal to their fair value.
18.
CASH AND CASH EQUIVALENTS
30 June
31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
Cash and cash equivalents
54,459
105,297
54,459
105,297
Cash and cash equivalents includes US$ 4.0 million (31 December 2015: US$ 7.5 million) which is restricted against
issue of letters of guarantee.