psc - Kufpec

KUWAIT FOREIGN PETROLEUM EXPLORATION COMPANY K.S.C. (CLOSED)
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2010
16. REVENUE
2010 2009
KD 000’s KD 000’s
Oil sales 138,256 120,496
Gas sales 173,314 114,665
Pipeline tariffs 270 240
311,840 235,401
17. COST OF SALES
2010 2009
KD 000’s KD 000’s
Operating costs 53,972 48,511
Depletion of oil and gas properties 83,822 70,201
Royalties 13,733 8,312
Depreciation of decommissioning asset 2,466 4,132
153,993 131,156
18. NET IMPAIRMENT LOSSES
During the year, the Group incurred impairment losses on certain oil and gas properties of KD 34,475
thousand (31 December 2009: KD 16,609 thousand). The impairment loss realized was due to decrease in
oil and gas reserves in related fields.
During the year, the Group reversed previously recognised impairment losses of KD 1,326 thousand (2009:
14,624 thousand). The reversal is due to an increase in the estimated future cash flows from these oil and
gas properties determined by reference to current economic factors.
19. INCOME TAX EXPENSE
The charge for the year comprises:
2010 2009
Foreign tax KD 000’s KD 000’s
Current:
- tax expense on profits 45,474 29,325
- Reversal of excess provision for income taxes - (3,439)
Deferred:
- charge for the year - income taxes 3,999 2,691
- Refund for the year - Petroleum Resource Rent Tax (“PRRT”) (1,212) (3,464)
48,261 25,113
20. STAFF COSTS
Profit for the year is stated after charging staff and related costs of KD 8.1 million (2009: KD 7.3 million).
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