and subsidiaries - Kufpec
and subsidiaries - Kufpec
and subsidiaries - Kufpec
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KUWAIT FOREIGN PETROLEUM EXPLORATION COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES<br />
CONSOLIDATED STATEMENT OF CASH FLOWS<br />
For the year ended 31 December 2008<br />
2008 2007<br />
Note KD 000’s KD 000’s<br />
OPERATING ACTIVITIES<br />
Profit for the year before tax <strong>and</strong> directors’ fees 80,487 112,956<br />
Adjustments for:<br />
Depreciation, depletion <strong>and</strong> amortization 60,744 64,162<br />
Net impairment losses/(reversal of impairment losses) 14,824 (6,858)<br />
Exploration expenditure written off 34,740 31,045<br />
Interest income (1,077) (3,718)<br />
Finance costs 3,362 1,348<br />
Unwinding of the discount on decommissioning provision 1,394 1,217<br />
(Reversal of allowance)/allowance for doubtful receivables (25) 117<br />
Allowance/(recovery of allowance) for slow moving <strong>and</strong><br />
obsolete inventories 2 (10)<br />
Provision for employees’ end of service benefits 910 358<br />
195,361 200,617<br />
(Increase)/decrease in trade <strong>and</strong> other receivables (2,522) 20,424<br />
Increase in inventories (186) (2,002)<br />
(Decrease)/increase in trade <strong>and</strong> other payables (1,630) 16,129<br />
Change in due from/to Parent Company <strong>and</strong> affiliates-net (343) (87)<br />
Cash generated from operations 190,680 235,081<br />
Income tax paid (36,279) (44,270)<br />
Employees’ end of service benefits paid (582) (283)<br />
Directors’ fees paid (46) (40)<br />
Net cash generated by operating activities 153,773 190,488<br />
INVESTING ACTIVITIES<br />
Purchase of other fixed assets (651) (533)<br />
Proceeds from disposal of other fixed assets - 10<br />
Decrease in funds held by Parent Company 10,926 66,107<br />
Adjustment of purchase consideration 24 3,126 -<br />
Payment of decommissioning liability (127)<br />
Acquisition of <strong>subsidiaries</strong>, net of cash - (127,153)<br />
Net additions to oil <strong>and</strong> gas properties (146,275) (109,932)<br />
Interest received 1,077 3,611<br />
Net cash used in investing activities (131,924) (167,890)<br />
FINANCING ACTIVITIES<br />
(Decrease)/increase in loan from Parent Company (57,361) 57,361<br />
Increase in long-term loan 88,800 -<br />
Finance costs paid (3,362) (1,348)<br />
Dividends paid (53,150) -<br />
Net cash (used in)/generated by financing activities (25,073) 56,013<br />
Effect of foreign currency translation (6,039) (70,207)<br />
Net (decrease)/increase in cash <strong>and</strong> bank balances (9,263) 8,404<br />
Cash <strong>and</strong> bank balances at beginning of the year 17,383 8,979<br />
Cash <strong>and</strong> bank balances at end of the year 8,120 17,383<br />
The notes set out on pages 34 to 57 form an integral part of these consolidated financial statements.<br />
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