· pdf file · 2015-10-31report’. upc complies and ... stomo, had put in...

The Company also carried out in December 2012, capital reduction of 10% of the original capital as a consequence to the structured plan of capital reduction approved by the market regulators and the shareholders in the EGM held during the year.

Due to the definitive life of the project and its purpose, it is the policy of the company to maximize distributing its available profits and in the years where profits are low, it distributes its funds not required for operations by way of well-structured plan of capital reduction. Past five years’ dis-tribution to shareholders, are disclosed separately under ‘Management Discussion and Analysis Report’.

UPC complies and maintains high standards to the Code of Corporate Governance implemented by the Capital Market Authority as described in the related attached section of this report. In this respect, the Company complies with the guidelines on dividend policy and we are committed to the objectives underlying such guidelines.

There has been no change in the personnel of the Company during the year.

The Company is a responsible corporate citizen and contributes to the activities of local munici-palities and communities. During the year, the company made the following contributions:

OMR− Manah School Projects 3,667− Manah Municipality support 5,000− Al Bashaier Sports Club in Manah 1,000− Support to Manah participation in Muscat Festival 500− Dar-Al-Atta charity sponsorship 204 I would like to thank all the personnel associated with the operation of our Manah Power Plant and staff of the Company for their dedication and hard work.

On behalf of the Board of Directors, I would also like to take this opportunity to extend our grati-tude to His Majesty Sultan Qaboos Bin Said and His Government for their continued support and encouragement to the private sector. May Allah protect them for all of us.

Murtadha Ahmed SultanChairman of the Board

Annual Report 2012 7

Power Generation

The total power exported by the plant in 2012 (Phases I and II) amounts to 1,473 GWh. The cumu-lative energy exported by the plant from initial commissioning is 17,626 GWh.

The maximum load recorded during the year was 310.5 MW on May 8, 2012 at 23:00 hrs. The maximum ambient temperature recorded was 49°C on July 4, 2012 at 15:00 hrs and minimum temperature was 10°C on January 23, 2012 at 05:00 hrs.

The average plant guaranteed net output (PGNO) for the reporting period was 93.029 MW for Phase I, and 205.32 MW for Phase II at an average ambient temperature of 29.43°C. The use factor was 59.1%.

Manah recorded 99.88% Reliability of the total Plant (phase 1 & phase 2 units) with 47.8 hours of forced outages in 2012.

For the whole plant, the evolution of these figures from the date of Phase I commercial operation date is as under:

Year Available Availability Energy Use Reliability energy (GWh) factor (%) generated (GWh) factor (%) factor (%)

1996(*) 176.5 93.0 106.3 60.2 99.91997 811.2 95.6 680.1 83.8 99.81998 776.6 97.4 667.1 85.9 99.91999 760.3 93.3 615.9 81.0 99.92000(**) 1,758.8 87.8 1,057.5 60.1 92.42001 2,541.6 94.9 1,274.7 50.2 99.72002 2,525.8 95.4 1,442.3 57.1 99.52003 2,526.6 94.9 1,337.4 52.9 99.92004 2,469.2 93.9 1,125.5 46.4 99.92005 2,502.4 95.3 1,046.0 41.9 99.92006 2,536.1 96.6 1,187.9 47.0 99.92007 2,476.1 94.8 981.8 40.0 100.02008 2,557.9 97.4 1,012.8 40.4 99.92009 2,371.6 90.5 1,045.1 44.0 98.22010 2,335.1 89.7 1,320.8 54.9 99.92011 2,259.1 86.6 1,407.6 60.1 96.62012 2,493 95.3 1,473.1 59.1 99.9

(*)COD Phase 1: 15th October 1996 (**) COD Phase 2: 19th May 2000

United Power Company (SAOG)8

OPERATION HIGHLIGHTS

Health & Safety

Health and Safety is accorded the highest priority. While the statistics show a consistent record of excellence, the Company is mindful of complacency that can set in with these results. As a conse-quence, steps have been taken that shall ensure a more proactive approach towards the issue of Health & Safety.

The Company Management regularly takes part in safety walks with its Operator and attends their Safety Committee Meetings. In addition, commencing from 2013, a regular H&S audit by a third party agency shall be conducted of the Power Plant to ensure that safety standards are being ad-hered to and improvements if any, to the current standards shall be suggested.

The Operator is also looking to meet international standards such as ISO 14001 for Environmental Management and OHSAS 18001 for Health & Safety Management.

The Loss Time Incident (LTI) of Manah Power Plant remains ZERO during the O&M regime follow-ing COD of both phases. As of December 2012, the Plant has clocked 6,058 LTI free days since the commencement of operations.

Maintenance Activities

Phase I Scheduled maintenance:

The total maintenance time consumed for the year was 1,504.5 hours, i.e. 5.71% of total calendar hours or an availability factor of 94.29%.

GT1A: Combustion inspection was conducted in November 2012.

GT1B: Combustion inspection was conducted in December 2012

GT1C: Annual Maintenance was conducted in November 2012.

Phase II Scheduled maintenance:

The total time consumed for maintenance was 651.9 hours in the reporting period, i.e. 3.71% of total calendar hours during reporting period or an availability factor of 96.29%.

GT2A: Hot Gas Path Inspection was conducted in December 2012

GT2B: Combustion Inspection was conducted in April 2012.


OPERATION HIGHLIGHTS

Omanization

UPC and its O&M contractor STOMO pay the greatest attention to respect the requirements of the Power Purchase Agreement in matters of Omanization: at the end of the year 2012, Omani em-ployees comprised 74.51% of the plant staff of STOMO. In order to address the Omanization issue, our operator, STOMO, had put in place in 2009, training programmes for young graduates from Oman Universities. This effort is paying dividends with a number of these trainees being inducted into the operation & maintenance personnel of the Plant after undergoing training.

Permits:

Ministerial Decision No (118/2004), issued by MRMEWR in 2004, implemented new regulations for air pollution control, and introduced new ‘Standards of Emissions’ from Stationary Sources, includ-ing Power Plants.

The oldest four of the licensed Production Facilities (Manah, Ghubrah, Wadi Jizzi and Rusail) are considered to be generally non-compliant with the obligations in MD (118/2004), whilst the new-er Production Facilities are deemed to be generally compliant.

AER took the initiative to study the issue with respect to oldest four licensed production facilities with the help of an independent consultant - Advantica of UK. Based on the recommendations, a Predictive Emission Monitoring System (PEMS) was installed.

The monthly reporting to MECA (Ministry of Environment and Climatic Affairs) has been estab-lished since November 2008.

Environmental Permits for Phase I lapsed on May 13, 2011, while the Environmental Permits for Phase II lapsed on 20 August 2009.

Since the issue of Permits renewal was being inordinately delayed, the Company approached OPWP to help resolve the issue. Subsequent to discussions between OPWP and MECA, it was de-cided that the Company shall install an Ambient Air Quality Monitoring Station. The Company has awarded a Contract for the same. The AAQMS is expected to be installed by mid 2013.


Manah Power Station

The Manah Power Station is located on 200 acres of land, approximately 180 kilometers South-West of Muscat, and 20 kilometers south of Nizwa at an elevation of 378 meters above sea level.

Phase I – Power generation facilities

Originally, the Manah Power Station consisted of three open cycle dual fuel Gas Turbine Units, each having a capacity of approximately 28,076 kW at 50º C, completed with 11/132 kV step-up generator transformers, a GIS sub-station interconnecting the Manah Power Station with the two 132 kV overhead line feeders to the Nizwa substation, natural gas pipeline facilities, back-up diesel oil facilities, water storage tanks, a control and administration building, a work shop and storage facilities for spare parts, staff housing and access roads.

Phase II – Power generation facilities

The Manah Power Station Phase II consists of two GE Frame 9E dual fuel Gas Turbines, with 15/132 kV step-up transformers, two GIS identical to the existing ones. These cells are connected with the two existing 132 kV circuits, each of them being originally sized to carry the whole expanded capacity of the Manah Power Station. The Phase II includes extension of auxiliary facilities: fire-fighting system, lightning protection system and additional 4000 m3 back-up diesel oil storage. The nominal capacity of each gas turbine is 92,160 kW (at 50º C) with a guaranteed heat rate of 11,555 kJ/kWh (at 50ºC).

Interconnection and Transmission Facilities The ITF includes the following substations: a 132 kV GIS substation at Manah; a 132 kV outdoor substation at Nizwa; a 132 kV outdoor substation at Izki; a 132/33 kV substation at Bahla; a 33/11 kV substation at Nizwa town; and a 132 kV GIS substation extension at the Al-Rusayl Power Station.

In addition, the ITF includes approximately 168.7 kilometers of 132 kV double circuit (i.e. two cir-cuits on one tower) overhead transmission lines, constructed with steel lattice towers running between the Manah and Nizwa substations (18.8 km; 63 towers), between the Nizwa and Bahla sub stations (32.2 km; 92 towers), between the Nizwa and Izki substations (30.7 km; 94 towers) and over very mountainous terrain, between the Izki and Al-Rusayl substations (87 km; 287 towers).

The ITF includes one 33 kV double circuit overhead transmission line comprised of two single cir-cuits (i.e. two parallel single lines on wooden poles) between Nizwa and Nizwa Town substations (7.25 km, 140 wood poles) and one 11 kV overhead distribution network comprising three single circuit 11 kV wood pole lines between the Izki substation and the Izki power station (2 km).

These lines and the related switching facilities of the ITF enable the power generated at the Manah Power Station to supply the local electricity demands in the town of Manah, Nizwa, Bahla and Izki.

Excess electrical power can also be transmitted to the Muscat grid to help support the demand in the coastal region of Oman through an interconnection at the Al-Rusayl power station.

BRIEF TECHNICAL DESCRIPTION OF THE PROJECT


Fuel Supply

The Manah Power Station has been designed to use natural gas as its primary fuel with diesel oil as a back-up fuel. Natural gas is supplied to the power station from a 36-inch pipeline delivering gas at 70 Bar from the Yibal gas collecting station, which is located 198 kilometers from the Manah Power Station, to a pressure reducing station, including metering equipment, located outside the northeast corner of the Site. The pipeline is owned and controlled by PDO.

Environmental Aspect The Manah Power Station represents an environmentally benign source of power for the local market and although the gas fired has small traces of sulphur, impact on air quality are monitored on a monthly basis by UPC. Predictive Emission Monitoring System (PEMS) has been implemented at the Plant in 2008, on recommendation by AER and in coordination with the Ministry of Environ-ment and Climatic Affairs. The Company is now in the process of installing an Ambient Air Quality Monitoring System at the Plant.


MENA Infrastructure Investments Limited

Mena Infrastructure Investments Limited is a wholly owned subsidiary of MENA Infrastructure Fund is a specialist USD 300 million private equity fund established in the Dubai International Finance Centre (DIFC). It is a regional investor, targeting investments in the infrastructure and energy sectors across the Middle East and North Africa.

The Fund is sponsored by three prominent business groups in the MENA region: Fajr Capital, HSBC Bank Middle East, Waha Capital. A dedicated investment team leverages the support of these strong and experienced sponsors to deliver investment opportunities to its investors, along with capital and financial expertise to the companies in which it invests.

The Fund has become one of the largest and most successful infrastructure in the Middle East and North Africa, having invested in four key assets since inception in September 2007. Further infor-mation can be found at www.menaif.com

Ministry of Defence Pension Fund (“MODPF”)

The Ministry of Defence Pension Fund is a public legal entity in the Sultanate of Oman duly or-ganized under, and registered pursuant to, Sultani Decree 87/93 issued on 29th December 1993. The Ministry of Defence Pension Fund is one of the largest pension funds in Oman and is a major investor in the local capital markets, both in equities and bonds. It is also a major participant in project investments and Real Estate investments. The fund is represented on the boards of several prominent Corporate in Oman.

MGEC (Oman) Holdings Limited

MGEC (Oman) Holdings Limited is 100% owned by Mubadala GE Capital PJSC. Mubadala GE Capital PJSC is a specialized commercial finance company based in the United Arab Emirates, which offers structured financing solutions to help businesses grow and adapt in rapidly evolving economic environments. It is a joint venture between Mubadala Development Company PJSC (Mubadala) and General Electric Capital Corporation (GE) and is headquartered in Abu Dhabi. Mubadala GE Capital offers commercial lending and leasing financing solutions plus strategic project equity investments in energy and infrastructure assets across the Middle East & Africa. For further infor-mation about Mubadala GE Capital PJSC, please visit www.mubadala-ge.com


PROFILE OF THE CURRENT PREFERENCESHARE HOLDERS

A. Industry Structure and Development

The Company is the first privately owned power project in the country.

The Government regulates the development of this sector under a well-formulated program on long-term basis. The new sector law is in existence.

B. Opportunities and Threats

The Company was formed specifically to build, own and operate the Plant located at Manah and built and own related distribution network of overhead transmission lines, and cannot undertake new ventures. Long term Power Purchase Agreement with Government protects the Company from market forces.

C. Analysis of Results

The net profit for the year under review was lower by RO 1,288K as compared to previous year. This was mainly on account of lower revenue, as explained in forthcoming paragraph.

Decrease in revenue by RO 1,437K in the year under review as compared to previous year, is mainly on account of power tariff. The structure of power tariff has been designed in such a way that tariff rates are higher during the initial years as compared to later period of the project life. The tariff decreased by RO 1,756K. Part of the reduction was offset by positive variance on account of in-dexation and increase in energy production of RO 104K, and net deductions of RO 215 on account of units not being available in 2011, did not occur in 2012.

Operation & administration expenses increased by RO 195K. The reasons for the net increase were on account of the following:

Negative Variances

•O&Mfeesonhigherproductsandindexation(RO124K). •Customsdutyonpartsimportedformaintenance(RO118K) •Sharedofficecosts(RO33K) •Managementfeeindexation(RO26K) •Miscellaneous(RO8K)

Positive Variances

•Taxrateclaim(RO86K) •Insurancepremium(RO28K)

Depreciation expenses have reduced by RO 488K as parts of the gas turbines for phase 1 has fully depreciated.

Interest on working capital facility has increased by RO 20K due to higher utilization of the facility.

Savings in tax expense is due to lower profit; offset by the excess provision of RO 257K reversed in 2011. Net negative effect to profit is RO 114K.


MANAGEMENT DISCUSSION AND ANALYSIS REPORT

D. Analysis of Balance Sheet

The variations in balance sheet section can be explained as follows:

Net reduction in tangible assets of RO 5,161K in the year under review is mainly due to the depre-ciation charge for the current year.

During the year CMA, approved a capital reduction plan for the year 2012 ranging between 5% to 10%, subject to condition that the share capital after each reduction would not be below the threshold of RO 5 million. Accordingly, in December 2012 the Company reduced its paid up capi-tal by 10% of the original share capital of RO 34,869,400. Moreover, due to the capital reduction in December 2012, a further amount of RO 1,162K has been transferred from the legal reserve to the retained earnings.

The drawdown of the working capital facility in 2012 was higher by RO 1,650K.

E. Financial Highlights

The Company’s performance for the past five years was as follows:

2012 2011 2010 2009 2008 OMR’000 OMR’000 OMR’000 OMR’000 OMR’000

Net Profit 584 1,872 2,070 1,701 2,438Total Assets 23,912 29,090 34,946 40,748 51,966Total Revenue 11,050 12,487 13,612 13,477 13,376Total Shareholders’ Fund 13,572 19,499 28,029 32,575 36,737Paid up Capital (Original) 34,869 34,869 34,869 34,869 34,869Capital reduction-accumulated to date 26,152 22,665 19,178 15,691 12,204Current Paid up Capital 8,717 12,204 15,691 19,178 22,665Weighted average number of Shares 11,918 15,400 18,887 22,374 25,861

2012 2011 2010 2009 2008

Return on total assets 2.4% 6.4% 5.9% 4.2% 4.7%Return on Current paid up Capital 6.7% 15.3% 13.2% 8.9% 10.8%Long Term Debt: Capital ratio 0.100 0:100 0:100 0:100 20:80Ordinary Dividend (Interim) * 10% - 7.5% - -Ordinary Dividend (Final) ** 20% 14% 12.5% 8.0% 10.0%Book value per share on weighted 1.14 1.27 1.48 1.46 1.43average sharesReduction of original paid up capital 10% 10% 10.0% 10.0% 10.0%during the year

*Based on paid up capital at 30 June.** Based on paid up capital at 31 December.


Directorship / membership of the Company’s directors in other SAOG companies in Oman held during the year.

Name of Directors Position held Name of the Company

Mr Murtadha A. Sultan Director Gulf International Chemicals SAOG Director Oman Flour Mills SAOG Chairman Sohar Power Company SAOG

Mr Mark Lemmon None -

Mr James Harper None -

Mr Rahul Mittal None -

Dr Mohd bin Nasser bin Ali Al Zaabi None -

Mr Andrew Nowell None -

Mr Yaseen Abdullatif Director & Chairman Sahara Hospitality Co. SAOG Audit committee

Mr Hamad Lal Baksh Al Balushi None -

Mr Arnaud de Limburg None -

Mr Zoher Karachiwala None -

Mr. Ahmed Al Sinani Director ACWA Power Barka SAOG Director & member Oman National Engineering & Audit Committee Investment Co. SAOG

The profile of directors and management team is included as an Annexure to the Corporate Gov-ernance Report.

AUDIT COMMITTEE

(a Brief description of terms of reference.

The primary function of the Audit Committee is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing the financial reports and other financial information pro-vided by the Company to any governmental body or the public the Company’s systems of internal controls regarding finance, accounting, legal compliance and ethics that management and the Board have established; and the Company’s auditing, accounting and financial reporting proc-esses generally. Consistent with this function, the Audit Committee encourages continuous improvement of, and fosters adherence to, the Company’s policies, procedures and practices at all levels.


CORPORATE GOVERNANCE REPORT

The Audit Committee’s primary duties and responsibilities are to:

• Serve as an independent andobjective party tomonitor theCompany’s financial reportingprocess and internal control system;

• ReviewandappraisetheauditeffortsoftheCompany’sstatutoryandinternalauditors;• Provideanopenavenueofcommunicationamongthestatutoryandinternalauditors,financial

and senior management and the Board of Directors.

(b) Composition of Audit Committee and attendance record of Committee Members.

Name of Committee Members Position Meetings held and attended during 2012

13/02 26/04 19/07 21/10 TOTAL

Mr Yaseen Abdullatif Chairman 4Mr Andrew Nowell Member 4Mr James Harper Member 4

Attended (c) Sitting fee of RO 200 per meeting is paid to the attendee members.

(d) Activities during the year

The Audit Committee has reviewed, on behalf of the Board, the effectiveness of internal controls by meeting the internal auditor of the company reviewing the internal audit reports and the rec-ommendations, met the external auditor, and reviewed the audit findings and the management letter.In 2012, the Board of Directors, through the Audit Committee, reviewed and assessed the Com-pany’s system of internal controls based on the audit report submitted by the Auditors. The Board also reviews the operational reports generated by the Management of the Company, which com-pares the budget and the actual. The Audit Committee and the Board are pleased to inform the shareholders that, in their opinion, an adequate and effective system of internal controls is in place.

PROCESS OF NOMINATION OF DIRECTORS

The election of the Board is governed by the Company’s Articles of Association (Article 24 to 27). The current Board of Directors was elected on 21 March 2011 for the term of three years and the election process was done in accordance with the amended Articles of Association of the Com-pany. Further, as required by CMA circulars, the Company obtained “Nomination Form” from all directors and the forms were verified to its compliance and authenticity by the Company’s Secre-tary and its legal counsel, before being sent to the CMA.


REMUNERATION

(a) Directors – Remuneration and Attendance Fee.

As per Articles of Association, the Company was entitled to pay directors’ remuneration equivalent to 10% of calculated net profit. However, due to administrative decision 11/2005 issued by CMA, the Directors’ remuneration including sitting fees are restricted to 5% and is also subject to limits prescribed.

The total remuneration to the Directors was as follows:

OMR

Director’s remuneration 33,600Sitting fee (excluding fees to audit Committee members) 16,400

Total 50,000

The sitting Board fees paid to Directors for meetings of the Board attended during the year are given below. The company does not pay sitting fees for participation in Board sub-committees meetings, except for the Audit Committee meeting. The Directors’ remuneration is paid pro-ra-ta each Directors’ participation in the Board meetings. Attendance at Board meetings and Audit Committee meetings by video - or teleconference is deemed to be attendance in person; attend-ance by proxy is not considered attendance for purpose of remuneration.

Sl. Name of Director No. of meetings for Total sitting fees Total RemunerationNo. sitting fee Paid paid in RO in RO

1 Mr Murtadha Ahmed Sultan 4 1,600 3,2782 Mr Mark Lemmon 3 1,200 2,4593 Mr James Harper 4 1,600 3,2784 Mr Rahul Mittal 4 1,600 3,2785 Dr Mohd Bin Nasser Bin Ali Al Zaabi 4 1,600 3,2786 Mr Ahmed Al Sinani 4 1,600 3,2787 Mr Andrew Nowell 3 1,200 2,4598 Mr Hamad Lal Baksh Al Balushi 4 1,600 3,2789 Mr Yaseen Abdullatif 4 1,600 3,27810 Mr Arnaud de Limburg 3 1,200 2,45811 Mr Zoher Karachiwala 4 1,600 3,278

TOTAL 16,400 33,600

The Company will continue to pay sitting fee per Director per meeting amounting to R.O.400 in the year 2013, up to a maximum of R.O. 10,000 per year to any individual Director as per CMA regulations.


CORPORATE GOVERNANCE REPORT

(b) Top Five Officers

The aggregate remuneration paid to the top five officers of the Company was RO 381,192. Pursu-ant to Management Sharing Agreement only 60% of the amount is chargeable to the Company.

NON-COMPLIANCE PENALTIES OR NON-COMPLIANCE OF CORPORATE GOVERNANCE AND REASON

• NopenaltiesorstrictureswereimposedontheCompanybyMuscatSecuritiesMarket/CapitalMarket Authority or any other statutory authority on any matter related to Capital Market dur-ing the last three years.

• Therewerenoinstancesofnon-complianceofcorporategovernance.

MEANS OF COMMUNICATION WITH THE SHAREHOLDER AND INVESTORS

Annual accounts and quarterly accounts are put on official web site of MSM as per the guidelines by the market regulators. Notice to the annual general meetings is sent by post to the registered shareholders.

The Company has launched its own web site www.upcmanah.com. The Chairman gives press releases in case of important news and development that arises. Such press releases are posted to the web site of MSM in accordance with the guidelines issued by the market regulators.

The Company is available to meet its shareholders and their analysts on as and when need basis.

MARKET PRICE DATA

High / Low during each month in the last financial year and performance in comparison to broad based index of MSM (service sector).

Month Low Price High Price Average Price MSM Index (Service Sector)

Jan 1.020 1.100 1.060 2,536.530Feb 0.905 1.060 0.983 2,605.120Mar 1.100 1.300 1.200 2,685.940Apr 1.110 1.200 1.155 2,672.610May 1.125 1.150 1.138 2,620.250Jun 1.103 1.150 1.127 2,626.520Jul 1.030 1.100 1.065 2,603.700Aug 1.030 1.031 1.031 2,605.850Sep 1.020 1.045 1.033 2,673.360Oct 1.015 1.045 1.030 2,780.370Nov 1.035 1.100 1.068 2,831.860Dec 1.080 1.100 1.090 2,870.420


BRIEF PROFILES OF DIRECTORS MURTADHA AHMED SULTANChairman

Year of Joining 1994

Education Graduate - Sales and Marketing Management

Experience Director of W. J. Towell Group of Companies Well known in the business community, Mr. Sultan has more than 32 years’

experience in different commercial fields; holding or held various positions in public, private and government organizations.

Mr. Murtadha Sultan is also the Chairman of Sohar Power Company. He is also a Director of Oman Flour Mills and Gulf International Chemicals.

MARK LEMMON


Education Chartered Accountant and Masters in Finance from the London School of Eco-nomics

Experience Mr. Lemmon, the Chief Executive Officer of MENA Infrastructure Fund, was previously the deputy chief executive of HSBC’s Global Project and Export Fi-nance Business, responsible for growing that business over recent years to its current pre-eminent position in infrastructure and energy finance. An invest-ment banker of twenty six years standing, he has substantial experience lead-ing business development and winning and executing financing mandates across transportation, social infrastructure, power, water and energy sectors throughout the Middle East and elsewhere.

DR. MOHAMMED NASSER AL-ZAABI


Education A Chartered Quantify Surveyor with PhD in contracting out government serv-ices. M.Sc. in Projects Management. B.Sc.Hons in Quantity Surveying and an Engineering Diploma all from the UK.

Experience Mr. Al-Zaabi has more than 19 years of experience with the Ministry of De-fence in the field of contracts and projects management. Headed planning and quality management departments and worked as AgTechnical expert up to September 2011. Currently attached to a high level Technical Committee in the Ministry of Transport and Communication responsible for overseeing the execution of Muscat International and Salalah airports development projects.


ANNEXURE

ANDREW NOWELL


Education B. Mech. Eng. (hons), Grad. Dip Finance

Experience Mr. Nowell is an Associate Director at the MENA Infrastructure Fund. He has over eight years’ of experience in infrastructure investment and develop-ment, in the Middle East and Australia, where he has been involved in projects across the energy, utilities and transport sectors. Prior to joining the MENA infrastructure Fund in 2008, Andrew held positions in the Infrastructure In-vestment team at Australian infrastructure developer Leighton, and before that Booz Allen Hamilton.

JAMES S. HARPER


Education MA (Oxon)

Experience Mr. Harper is an experienced banking and investment professional with over fourteen years’ experience in investment, advisory and debt financing across a broad range of industries. Mr Harper moved to the region four years ago to joined Mubadala GE Capital where he focuses on infrastructure investment and providing senior secured debt financing to local corporate.

RAHUL MITTAL


Education B.Tech, MBA, CFA

Experience Rahul Mittal is Director - Investments & Risk Strategy at Mubadala GE Capital (MGEC). Rahul is responsible for energy and project finance investments in META region. In addition Rahul has responsibility for Risk Strategy at MGEC.

Rahul has over 14 years of experience in development, financing and man-agement of large power projects in India, Middle East, Africa and the US. Be-fore joining MGEC, Rahul was leading GE Capital - Energy Financial Services underwriting team in India. Rahul holds B.Tech from IIT Kanpur and MBA from IIM Calcutta. Rahul is a CFA charter holder


AHMED AL SINANI


Education Master of Business Administration

Experience Mr Sinani has more than 20 years of experience in the fields of finance, ac-counting, human resources management, public administration and manage-ment. He represents the Civil Service Employees Pension Fund in a number of forums. Currently, he sits on the board of directors of Oman National Engi-neering & Investment Company and ACWA Power Barka.

YASEEN ABDULLATIF


Education Bachelor of Arts degree in Business Administration (major – Finance) from the American University in December 1996.

Experience Mr. Abdullatif has been with the Bank Muscat since March 1987 and he has handled different functions from being branch manager to managing credit assessment and credit controls. In 1998, he was promoted to the position of assistant general manager to handle the Risk Management function of the bank and later on finance function has been an additional responsibility. Cur-rently, Mr. Abdullatif is responsible for managing support services functions at the bank, and he is a member of Management Credit Committee.

HAMAD LAL BAKSH AL BALUSHI


Education Master of Business Administration (MBA), University of Strathclyde.

Experience Mr. Al Balushi has been working with HSBC Bank, Muscat for the past 15 years in the Corporate Banking Division. He is one of the senior management team members in HSBC Oman involved in the planning, coordination and imple-mentation of the corporate finance and credit activities within the Bank’s cor-porate customer base


ANNEXURE

ARNAUD DE LIMBURG


Education Law Degree, University of Leuven , Belgium Postgraduate in Economics and International Relations, London School of

Economics, UK General Management Program, CEDEP/INSEAD, France

Experience 14 years of experience in the field of power project development in Europe, Asia and the Middle East. He joined GDF SUEZ in 1999. As General Counsel for the Middle East, based in Dubai since 2004, he contributed to the develop-ment of GDF SUEZ Energy International in the region. CEO of the Company in 2008-2009, he became director in 2009. He also acts as Company Secretary.

ZOHER KARACHIWALA


Education Chartered Accountant

Experience Currently CEO of the Company, Mr Karachiwala was a CFO until June 2009. He also acts as Company Secretary for some of the GDF Suez group of companies in Oman. 35 years in field of Statutory Audit & Accounting and Finance. He was KPMG Audit Partner in Pakistan before joining United Power Company in 1995. Acted as Honorary Chairman of Audit Committee and the Board of Directors for a public company in Oman.


BRIEF PROFILE OF MANAGEMENT TEAMUnder the terms of the management agreement entered with Power Development Company LLC (PDC) in 1994, PDC provides day to day management of the Company and gives all supports by providing manpower and other infra-structure. For this PDC is paid an annual fee and reimburse-ment of its expenses. It provides the following:

Particulars Omani Non-Omani Total

Managers 1 4 5Other staff 10 6 16

The management team has been empowered and jointly operates within a well-defined authori-zation limits set by the Board of Directors.

Brief profile of the current managerial team is as follows:

ZOHER KARACHIWALA


Education Chartered Accountant

Experience Currently CEO of the Company, Mr Karachiwala was CFO until June 2009. He also acts as Company Secretary for some of the GDF Suez group of companies in Oman. 35 years in field of Statutory Audit & Accounting and Finance. He was KPMG Audit Partner in Pakistan before joining United Power Company in 1995. Acted as Honorary Chairman of Audit Committee and the Board of Directors for a public company in Oman.

ARNAUD DE LIMBURG


Education Law Degree, University of Leuven , Belgium Postgraduate in Economics and International Relations, London School of

Economics, UK General Management Program, CEDEP/INSEAD, France

Experience 14 years of experience in the field of power project development in Europe, Asia and the Middle East. He joined GDF SUEZ in 1999. As General Counsel for the Middle East, based in Dubai since 2004, he contributed to the develop-ment of GDF SUEZ Energy International in the region. CEO of the Company in 2008-2009, he became director in 2009. He also acts as Company Secretary.


ANNEXURE

SREENATH HEBBAR


Education Bachelor of Engineering (Mechanical), VJTI, Mumbai University

Experience 27 years of work experience, primarily in Business Development of Engineer Procure Construct (EPC) Contracts in Gas Turbine based Cogeneration & Com-bined Cycle Power Plants. In his current position as Technical Manager, he is responsible for technical liaison with the client, statutory authorities, contrac-tors and provides technical support to the CEO.

S.M. TARIQ


Education MBA. ACA (Intermediate), Institute of Chartered Accountants of Pakistan.

Experience 36 Years of experience in External Audit (KPMG, Karachi Office and Muscat office) Internal Audit (National Trading Company, Muscat) and Accounting & Finance (United Power Company SAOG and Sohar Power Company SAOG, Muscat). In this current position as Chief Financial Officer, he is responsible for management of accounting department; he co-ordinates with external / internal auditors.

JAMAL AL BLOUSHI


Education Diploma in Computer Science.

Experience 18 years’ experience in administration activity including managing spare parts logistics, liaisons with government organizations, licenses, translation func-tion and supervising local insurance programs and assisting CEO for statutory meetings


Notes 2012 2011RO ‹000 RO ‹000

ASSETSNon-current assetsProperty, plant and equipment 7 21,224 26,385

------------- -------------Current assetsInventories 8 259 258Accounts and other receivables 9 2,033 2,125Bank balances and cash 396 322

------------- -------------Total current assets 2,688 2,705

------------- -------------Total assets 23,912 29,090

======= =======EQUITY AND LIABILITIESEquity Share capital 10 8,717 12,204Legal reserve 11 2,906 4,068Retained earnings 1,949 3,227

------------- -------------Total equity 13,572 19,499

------------- -------------Non-current liabilitiesEmployees’ end of service benefits 8 7Deferred tax liability 13 2,050 2,605

------------- -------------Total non-current liabilities 2,058 2,612

------------- -------------Current liabilitiesTaxation 13 885 1,082Accounts and other payables 14 697 847Short term borrowings 15 6,700 5,050

------------- -------------Total current liabilities 8,282 6,979

------------- -------------Total liabilities 10,340 9,591

------------- -------------Total equity and liabilities 23,912 29,090

======= =======

Net assets per share (RO) 16 1.557 1.598======= =======

These financial statements were authorised for issue and approved by the Board of Directors on 30 / 1 / 2013 and were signed on their behalf by:

……………………… ………………………

Director Director

The accompanying notes form an integral part of the financial statement.


STATEMENT OF FINANCIAL POSITIONat 31 December 2012

Note 2012 2011

RO’000 RO’000

INCOMERevenue 6 k) 11,050 12,487

------------- ------------- EXPENSESOperating and administrative expenses 17 (5,064) (4,869)Depreciation 7 (5,165) (5,653)Finance costs (161) (141)

------------- ------------- Profit before taxation 660 1,824

Taxation 13 (76) 48 ------------- -------------

Profit and total comprehensive income for the year 584 1,872

======= =======

Basic earnings per share 18 0.049 0.122======= =======



STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 December 2012

Share Share Legal Retainedcapital premium reserve earnings Total

RO’000 RO’000 RO’000 RO’000 RO’000(note 10) (note 11)

At 31 December 2010 15,691 4,764 5,230 2,344 28,029Payment of final dividend for 2010 -- -- -- (2,151) (2,151)Net profit and total comprehensive income for the year -- -- -- 1,872 1,872

Transfer from legal reserve to retained earnings -- -- (1,162) 1,162 --

Payment of share premium -- (4,764) -- -- (4,764)Reduction of capital (3,487) -- -- -- (3,487)

------------ ------------- ------------- ------------- --------------At 31 December 2011 12,204 -- 4,068 3,227 19,499

====== ======= ======= ======= ========

At 31 December 2011 12,204 -- 4,068 3,227 19,499Payment of final dividend for 2011 -- -- -- (1,804) (1,804)Net profit and total comprehensive income for the year -- -- -- 584 584

Payment of interim dividend for 2012 [note 12 b)] -- -- -- (1,220) (1,220)

Transfer from legal reserve to retained earnings -- -- (1,162) 1,162 --

Reduction of capital (3,487) -- -- -- (3,487)------------ ------------ ------------ ------------- --------------

At 31 December 2012 8,717 -- 2,906 1,949 13,572====== ======= ======= ======= ========



STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2012

2012 2011RO’000 RO’000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 11,167 12,749Cash paid to suppliers and employees (5,239) (5,279)

---------------- -------------- Cash generated from operations 5,928 7,470Finance costs (161) (141)Taxation (828) (904)

--------------- -------------- Net cash from operating activities 4,939 6,425

--------------- -------------- CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment and net cash used in investing activities (4) (1)

-------------- ---------------CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid (3,024) (2,151)Share premium paid -- (4,764)Reduction of capital (3,487) (3,487)

--------------- -------------- Net cash used in financing activities (6,511) (10,402)

--------------- -------------- Net decrease in cash and cash equivalents during the year (1,576) (3,978)

Cash and cash equivalents at the beginning of the year (4,728) (750)--------------- ---------------

Cash and cash equivalents [note 6 e)] at the end of the year (6,304) (4,728)

======== ========



STATEMENT OF CASH FLOWSfor the year ended 31 December 2012

1 LEGAL STATUS AND PRINCIPAL ACTIVITIES

United Power Company SAOG (‘the Company’) was registered as a joint stock company in the Sultanate of Oman on 9 January 1995. The Company has been established to undertake a project primarily to Build, Own, Operate and Transfer (“BOOT”) to the Government of the Sultanate of Oman (‘the Government’) a power station at Manah, and to build, own and transfer (“BOT”) to the Government, interconnection and transmission facilities. The Company may also undertake activities related to the expansion of its primary objective. Accordingly, the Company implemented the Phase II-Expansion Project (‘Expansion Project’) during the year ended 31 December 2000.

2 DURATION OF THE COMPANY

The original duration of the Company was for a period of twenty-five years commencing from 9 January 1995 being the date of its registration in the Commercial Register of the Ministry of Commerce and Industry (‘MOCI’). At an extra-ordinary general meeting held on 17 January 2000, the duration of the Company was increased by five years thereby revising the duration of the Company to thirty years commencing from 9 January 1995. The MOCI has approved the extension to the Company’s life on 11 October 2000.

All the property, plant and equipment of the Company shall be transferred at RO 1 to the Government automatically at the end of the Project Life, which, in accordance with Supplemental Agreements for the Expansion Project, expires on 30 April 2020. (At the end of the Project Life the value of the shares of the Company shall become nil.)

3 SIGNIFICANT AGREEMENTS

- Agreements with the Government for project implementation, power purchase and land lease for Phase 1 (‘Project Agreements’) were entered into on 27 June 1994 by the United Power Group (‘the Group’) comprising some of the Founder Shareholders. Under a Novation Agreement entered into by the Company with the Group, the Company has assumed all rights, duties, liabilities and obligations of the Group pursuant to the Project Agreements.

- Effective 1 May 2005, the rights and obligations of Ministry of Housing, Electricity and Water under the Power Purchase Agreement (‘PPA’) have been novated to the Oman Power and Water Procurement Company SAOC (‘OPWPC) in accordance with the arrangements described in the Master Novation Agreement signed on 8 October 2005. All the financial obligations of the OPWPC under the Project Agreements are secured under the Guarantee issued by the Ministry of Finance, Government of Oman, which has come into force on execution of the Novation Agreements. The PPA contains embedded derivatives in the pricing formulae that compute the variable capacity charge rate and energy charge rate for Phase 1 and Phase 2. The percentages of the variable capacity charge rate and energy charge rate for Phase 1 and Phase 2 is adjusted to reflect changes in US Consumer price index and the Omani Consumer price index assuming an exchange rate pegged to the United States Dollar (‘USD’).


NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2012

3 SIGNIFICANT AGREEMENTS (Continued)

The Company has entered into a Management Agreement (‘the Management Agreement’) with Power Development Company LLC (‘PDC’), a related party, to provide full management and administrative services to the Company. From 1 January 2009, the Base Fee has been fixed at RO 601,842 (USD 1.561 million being the indexed Base Fee for 2008 converted to Rials Omani at the exchange rate prevailing on 31 December 2008) and is indexed annually based on Sultanate of Oman CPI published by Ministry of National Economy. The Company is also liable to an annual management fee of USD 400,000 (RO 154,200) for each calendar year in respect of Phase II of the plant (‘the Expansion Project’). No indexation is applicable on the Expansion Project fee. In addition to the Management Fee, the Company also pays to PDC, all proper costs and expenses which are incurred by PDC in rendering the above services.

The Company has entered into an Operations & Maintenance Agreement with Suez Tractebel Operation and Maintenance Oman (“STOMO”), a company owned by GDF Suez group (70%) and Sogex (30%).

Pursuant to the Project Agreements, the Company had, on 19 December 1999, entered into Supplemental and Addendum Agreements with the Government for the expansion of the power generation facilities. The above agreements have been amended and the duration of all the agreements has now been extended up to 30 April 2020.

4 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), the minimum disclosure requirements of the Capital Market Authority and the requirements of the Commercial Companies Law of 1974, as amended.

The financial statements are presented in Omani Rials rounded off to the nearest thousand on a historical cost basis.

These financial statements have been prepared on the basis that the Company commenced full generation and distribution of electricity on 15 October 1996. All costs incurred during the construction period of the project were capitalized on 15 October 1996.

The Company commenced partial generation of electricity on 31 May 1996. On 15 October 1996, the entire constructions of the power station and transmission facilities was completed and from that date the Company commenced full generation of electricity. The MHEW had initially determined 1 January 1997 as the “Commercial Operation Date’ and had issued the Commercial Completion Certificate on that date.

During 2004, the Company reached settlement with the MHEW (‘OPWPC’) regarding the commencement of Phase 1 term life of twenty years effective 14 September 1996 instead of 15 October 1996. The effect of this change and resolution of other matters has been taken into account in the financial year ended 31 December 2004.

Under the Supplemental and Addendum Agreement to the PPA (‘Supplemental Agreement’),


NOTES TO THE FINANCIAL STATEMENTS (Continued)for the year ended 31 December 2012

4 BASIS OF PREPARATION OF FINANCIAL STATEMENTS (Continued))

the operation date for the Expansion Project was 1 May 2000. The MHEW (‘OPWPC’) issued an interim completion certificate for the first unit of the Expansion Project on 29 April 2000. The interim completion certificate for the second unit of the Expansion Project as well as the commercial operations certificate for the Expansion Project was issued by the OPWPC on 19 May 2000. Accordingly, 19 May 2000 has been determined as the “Commercial Operation date’ for the Expansion Project. The Company has billed the MHEW from the respective completion dates for the two units of the Expansion Project as per the Supplemental Agreement.

The tariff for electricity generated and supplied to OPWPC has been structured in the Project Agreements in such a way that the tariff rates were significantly higher during the initial years as compared to the later period of the Project Life. The tariff for electricity to be generated and supplied from the Expansion Project under the Supplemental Agreement has been structured so that the tariff is more uniformly received over the Project Life.

The Company’s gas turbines, interconnection and transmission facilities, balance of plant, plant spares and plant buildings and ancillaries are being depreciated over a period of eight to twenty years on a straight-line basis in accordance with their expected useful lives and with the Project Agreements. Accordingly, while the combined tariff revenue for the Company after the first eight years of operations will significantly reduce, the annual depreciation charges will remain constant. Accordingly, the net profits available for appropriation to the shareholders has been significantly higher during the first half compared to the second half of the Project life. Although it is not possible to accurately determine the effect on profits if revenue recognised was matched with the depreciation charge, the Company is expected to continue to earn net profits. To provide a return to the shareholders in the years where the reported profit is low, the Company has planned reduction of share capital during certain periods [note 21 d) on page 23].

In terms of the PPA signed in 1994 between the Company and the Government, the Company was given the right to build, own, operate and transfer a power plant and build, own and transfer interconnection and transmission facilities, to the Government.

IFRIC 12 ‘Service Concession Arrangements’ which was effective for annual periods commencing on or after 1 January 2008 gives guidance on the accounting by operators for public-to-private service concession arrangements. However, since inception of the Company in the year 1995, the financial statements of the Company have disclosed that:

The Company has recognized the ‘revenue’ based on the agreed Tariff prescribed under the PPA between the Government and the Company.

Depreciation on property, plant and equipment has been booked on straight-line basis at rates prescribed in the above mentioned agreement.

The tariff has been agreed based on covenants of financing agreements, which includes a prescribed repayment profile, debt coverage ratios and other security features.

In view of the above and to ensure that the financial statements result in fair presentation and relevant and reliable information for the users of the financial statements, the Board of Directors believe it would not be appropriate to change the basis of accounting and have therefore not opted for adoption of IFRIC 12 ‘Service Concession Arrangements’.



5 ADOPTION OF NEW AND AMENDED IFRS

1.1 New and amended IFRS adopted by the Company

The Company has adopted the following new and revised Standards and Interpretations issued by International Accounting Standards Board and the International Financial Reporting Interpretations Committee, which were effective for the current accounting period:

Amendments to IAS 12 ‘Deferred Taxes’ issued in December 2010 provides a practical approach for measuring deferred tax assets and liabilities when investment property is measured using the fair value model under IAS 40 ‘Investment Property’. The amendments introduce a presumption that an investment property is recovered entirely through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale.

Amendments to IFRS 7 ‘Financial Instruments’ issued in October 2010 helps the users of financial statements evaluate the risk exposures relating to transfers of financial assets and the effect of those risks on an entity’s financial position and promotes transparency in the reporting of transfer transactions, particularly those that involve securitization of financial assets.

The Management believes that the adoption of the amendments have not had any material impact on the presentation and disclosure of items in the financial statements for the current period.

1.2 New and amended IFRS which are in issue but not yet effective

At the end of the reporting period, the following new and revised standards were in issue but not yet effective:

IFRS 9, ‘Financial Instruments’, is effective for accounting periods beginning on or after 1 January 2015. The standard was issued in November 2009, which was added to in October 2010 and further amended in December 2011 amending the effective date from 1 January 2013 to 1 January 2015. Currently, IFRS 9 outlines the recognition and measurement of financial assets, financial liabilities and the derecognition criteria for financial assets. Financial assets are to be measured either at amortised cost or fair value through profit and loss, with an irrevocable option on initial recognition to recognise some equity financial assets at fair value through other comprehensive income. A financial asset can only be measured at amortised cost if the entity has a business model to hold the asset to collect contractual cash flows and the cash flows arise on specific dates and are solely for payment of principal and interest on the principal outstanding.

Amendments to IAS 1 ‘Presentation of Financial Statements’ issued in June 2011 improves the consistency and clarity of the presentation of items of other comprehensive income (OCI). The amendments require an entity to group items presented in OCI on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). The amendment is effective for annual periods beginning on or after 1 July 2012.

The revised IAS 19 ‘Employee benefits’ issued in June 2011 has resulted, amongst other amendments, in the removal of ‘corridor approach’ to defer some gains and losses arising from defined benefit plans. The revised IAS is effective for annual periods beginning on or after 1 January 2013.



5 ADOPTION OF NEW AND AMENDED IFRS (Continued)

1.2 New and amended IFRS which are in issue but not yet effective (Continued)

IFRS 10 ‘Consolidated Financial Statements’ was issued in May 2011 primarily to deal with divergence in practice in applying the existing IAS 27 ‘Consolidated and Separate Financial Statements’ and SIC 12 ‘Consolidation – Special Purpose Entities’. IFRS 10 and revised IAS 27 ‘Separate Financial Statements’ together supersede the current IAS 27 ‘Consolidated and Separate Financial Statements’. The standard is effective for annual periods beginning on or after 1 January 2013.

IFRS 11 ‘Joint arrangements’ was issued in May 2011 and improves on IAS 31 ‘Joint ventures’ by establishing principles to the accounting for all joint arrangements. IFRS 11 also eliminates the option available for accounting of joint ventures by the proportionate consolidation method. The standard is effective for annual periods beginning on or after 1 January 2013.

IFRS 12 ‘Disclosure of interest in other entities’ was issued in May 2011 and requires an entity to disclose information to evaluate the nature of, and risks associated with, its interests in other entities and effects of those interests on its financial position, performance and cash flows. The standard is effective for annual periods beginning on or after 1 January 2013.

IFRS 13 ‘Fair value Measurements’ was issued in May 2011 and sets out in a single IFRS a framework for measuring and disclosing fair values. The standard is effective for annual periods beginning on or after 1 January 2013.

Amendments to IFRS 7 ‘Financial Instruments: Disclosures’ issued in December 2011 amended the required disclosures to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position. The amendments are effective for annual periods beginning on or after 1 January 2013.

Annual improvements to IFRS issued in May 2012 (effective for annual periods beginning on or after 1 January 2013) has resulted, amongst other amendments, changes to the following standards:

- IAS 1 ‘Presentation of Financial Statements clarifies the requirements for comparative information.

- IAS 16 ‘Property, plant and equipment’ clarifies that items such as spare parts, stand-by equipment and servicing equipment shall be recognised as property, plant and equipment when they meet the definition of property, plant and equipment. If they do not meet this definition they shall be classified as inventory.

- IAS 32 ‘Financial Instruments: Presentation’ addresses the perceived inconsistencies between IAS 12 ‘Income Taxes’ and IAS 32 with regards to recognising the consequences of income tax relating to distributions to holders of an equity instrument and to transaction costs of an equity transaction.



5 ADOPTION OF NEW AND AMENDED IFRS (Continued)

1.2 New and amended IFRS which are in issue but not yet effective (Continued)

Amendments to IFRS 10, IFRS 11 and IFRS 12 issued in June 2012 provide additional transition relief by limiting the requirement to present adjusted comparative information to the period immediately preceding the date of initial application. The amendments are effective for annual periods beginning on or after 1 January 2013.

Amendments to IFRS 10, IFRS 12 and IAS 27 issued in October 2012 define an investment entity and introduce an exception to consolidating particular subsidiaries for investment entities. These amendments require an investment entity to measure those subsidiaries at fair value through profit or loss in accordance with IFRS 9 in its consolidated and separate financial statements. The amendments also introduce new disclosure requirements for investment entities in IFRS 12 and IAS 27. The amendments are effective for annual periods beginning on or after 1 January 2014.

The Management believes the adoption of the above amendments is not likely to have any material impact on the presentation and disclosure of items in the financial statements for future periods.

The following accounting policies have been consistently applied in dealing with items considered material to the Company’s financial statements.

6 SIGNIFICANT ACCOUNTING POLICIES

a) Accounting conventionThese financial statements have been prepared under the historical cost convention.

b) Property, plant and equipmentItems of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Following initial recognition at cost, expenditure incurred to replace a component of an item of property, plant and equipment which increases the future economic benefits embodied in the item of property, plant and equipment is capitalised. All other expenditures are recognised in the statement of comprehensive income as an expense as incurred.

Items of property, plant and equipment are derecognised upon disposal or when no future economic benefit is expected to arise from the continued use of the asset. Any gain or loss arising on de-recognition of the asset is included in the statement of comprehensive income in the year the item is derecognized.

Depreciation is charged to the statement of comprehensive income on a straight-line basis over the estimated useful lives of items of property, plant and equipment. The estimated useful economic lives are as follows:

YearsGas Turbines 15Balance of plant 20Plant spares 8Interconnection and transmission facilities 18 to 20Plant buildings and ancillaries 20Other assets – furniture, equipment and motor vehicles 4



6 SIGNIFICANT ACCOUNTING POLICIES (Continued)

c) InventoriesInventories comprise of fuel oil and are stated at lower of cost and net realisable value. The cost of inventories is based on first-in-first-out basis and includes expenditure incurred in acquiring the inventories in their present location and condition.

d) Accounts and other receivables Accounts and other receivables originated by the Company are measured at cost. An

allowance for credit losses of accounts and other receivables is established when there is objective evidence that the Company will not be able to collect the amounts due. When an account or other receivable is uncollectible, it is written off against the allowance account for credit losses. The carrying value of accounts and other receivables approximate their fair values due to the short-term nature of those receivables.

e) Cash and cash equivalents For the purpose of statement of cash flows, cash and cash equivalents consist of bank

balances and cash including deposits with an original maturity period of 3 months or less, net of short term bank borrowings.

f) Impairment

Financial assets At the end of each reporting period, the management assesses if there is any objective

evidence indicating impairment of financial assets carried at cost or non collectability of receivables. An impairment loss, if any, arrived at as a difference between the carrying amount and the recoverable amount, is recognised in the statement of comprehensive income. The recoverable amount represents the present value of expected future cash flows discounted at the original effective interest rate. Cash flows relating to short term receivables are not discounted.

Non-financial assetsAt the end of each reporting period, the management assesses if there is any indication of impairment of non financial assets. If an indication exists, the management estimates the recoverable amount of the asset and recognizes an impairment loss in the statement of comprehensive income. The management also assesses if there is any indication that an impairment loss recognized in prior years no longer exists or has reduced. The resultant impairment loss or reversals are recognised immediately in the statement of comprehensive income.

g) Dividends

Dividends are recognised as a liability in the period in which they are declared.

The Board of Directors recommend to the shareholders the dividend to be paid out of Company’s profits. The Directors take into account appropriate parameters including the requirements of the Commercial Companies Law, 1974 (as amended), while recommending dividend.




h) Employees’ end of service benefits Payment is made to Omani Government’s Social Security Scheme under Royal Decree

number 72 / 91 (as amended) for Omani employees. Provision is made for amounts payable under the Sultanate of Oman’s labour law under Royal Decree number 35 / 2003 applicable to non Omani employees’ accumulated periods of service at the end of the reporting period.

i) ProvisionsA provision is recognised in the statement of financial position when the Company has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.

j) Accounts and other payablesLiabilities are recognised for amounts to be paid for goods and services received, whether or not billed to the Company.

k) RevenueRevenue comprises tariffs for fixed capacity charges for transmission facilities and turbines, variable capacity charges and energy charges. Tariffs are calculated in accordance with the Project Agreements. No revenue is recognized if there are significant uncertainties regarding recovery of the consideration due and associated costs.

Tariff revenue has been accounted net of gas fuel costs, which are borne by the Government of the Sultanate of Oman.

l) Operating lease paymentsPayments made under operating leases are recognised in the statement of comprehensive income on a straight line basis over the term of the lease.

m) Foreign currency transactionsTransactions denominated in foreign currencies are translated to Rial Omani at the foreign exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are translated to Rial Omani at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of comprehensive income.

n) TaxationTaxation for the period comprises current and deferred tax.

Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantially enacted at the end of the reporting period.




n) Taxation (Continued)Deferred tax is calculated using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the end of the reporting period.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current and deferred tax are recognised as an expense or income in the statement of comprehensive income, except when they relate to items that are recognised in statement of other comprehensive income, in which case the tax is also recognised in the statement of other comprehensive income.

o) Financial liabilitiesAll financial liabilities are initially measured at fair value and are subsequently measured at amortised cost.

p) Directors’ remunerationThe Company follows the Commercial Companies Law 1974 (as amended), and other latest relevant directives issued by CMA, in regard to determination of the amount to be paid as Directors’ remuneration. Directors’ remuneration is charged to the statement of comprehensive income in the year to which they relate.

q) Estimates and judgements In preparing the financial statements, the Management is required to make estimates and assumptions which affect reported income and expenses, assets, liabilities and related disclosures. The use of available information and application of judgements based on historical experience and other factors are inherent in the formation of estimates. Actual results in future could differ from such estimates.

The estimates and assumption considered by the Management to have a significant risk of material adjustment in subsequent years primarily comprise:

Estimation of useful lives of the assets which is based on management’s assessment of various factors such as the operating cycles, the maintenance programs and normal wear and tear using its best estimates; and

Allowance for credit losses which is based on the management’s estimates of recoverability of the amounts based on historical experiences.



7 PROPERTY, PLANT AND EQUIPMENT

a) The movement schedule of property, plant and equipment for the year ended 31 December 2012 and the year ended 31 December 2011 are set out on pages 62 and 63 respectively.

b) Land on which the power station, buildings and ancillaries are constructed has been leased from the Government for the duration of the Project Life. Lease rent is paid at the rate of RO 1,000 per annum.

8 INVENTORIES2012 2011

RO ‹000 RO ‹000

Liquid fuel 259 259Spares 63 63

-------------- --------------322 322

Provision for obsolescence (63) (64)------------- -------------

259 258======= =======

The Company, in accordance with the Project Agreements, is required to maintain a base stock of liquid fuel to be used in case of interruption of gas fuel. Spares stock is maintained for the gas turbines and ITF and is held for emergencies.

9 ACCOUNTS AND OTHER RECEIVABLES2012 2011

RO ‹000 RO ‹000Accounts receivable from OPWPC 1,884 1,999Allowance for credit losses (93) (91)

-------------- --------------1,791 1,908

Prepayments and other receivables 242 217-------------- --------------

2,033 2,125======== ========

The following further notes apply:

a) The movement in the allowance for credit losses is as follows:

2012 2011RO ‹000 RO ‹000

At the beginning of the year 91 89Provided during the year (note 17) 2 2

------------ ------------93 91

====== ======

b) Accounts receivable amounting to RO 1.791 million (2011 – RO 1.908 million) are neither past due nor impaired.



10 SHARE CAPITAL

Authorized share capital At 31 December 2012 and 31 December 2011, the Company’s authorised share capital comprised 15,965,760 ordinary shares and 23,948,640 preference shares of RO 1 each.

Paid-up share capital

At 31 December 2012, the Company’s issued and paid-up share capital consists of 8,717,365 shares of RO 1 each analysed as follows:

Paid PaidTotal in cash in kind

RO’ 000 % RO’ 000 RO’ 000

Preference shares 5,230 60 4,192 1,038Ordinary shares 3,487 40 3,487 --

--------------- ------------- ------------- -------------8,717 100 7,679 1,038

======== ======= ======= =======

At 31 December 2011, the Company’s issued and paid-up share capital consists of 12,204,305 shares of RO 1 each analysed as follows:

Paid PaidTotal in cash in kind

RO’ 000 % RO’ 000 RO’ 000

Preference shares 7,322 60 6,284 1,038Ordinary shares 4,882 40 4,882 --

--------------- ------------- -------------- -------------12,204 100 11,166 1,038

======== ======= ======= =======

Preference shareholders have the right to two votes per share at any general meeting of the Company and are entitled to a dividend of up to 5% of the net profit of the Company prior to and in addition to any dividend to the holders of ordinary shares. The holders of ordinary shares have the right to one vote per share at any general meeting of the Company.

At the end of the reporting period, the details of the significant preference shareholders and the percentage of their shareholding in the Company is as follows:

Number of % to % topreference preference total

31 December 2012 shares shares shares

Mena Infrastructure Investments Limited 3,323,723 63.56 38.12Ministry of Defence, Pension Fund 476,670 9.11 5.47M GEC (Oman) Holdings Limited 1,430,014 27.33 16.41Fractions from capital reduction 9 -- --

-------------- ------------- ------------5,230,416 100.00 60.00

======== ======= ======



10 SHARE CAPITAL (Continued)

Paid-up share capital (Continued)

Number of % to % topreference preference Total

31 December 2011 shares shares shares

Mena Infrastructure Investments Limited 4,653,211 63.56 38.12Ministry of Defence, Pension Fund 667,339 9.11 5.47M GEC(Oman) Holdings Limited 2,002,019 27.33 16.41Fractions from capital reduction 10 -- --

-------------- ------------- ------------7,322,579 100.00 60.00======== ======= ======

None of the ordinary shareholders own more than 10% of the Company’s share capital (2011 – none).

During the year, the Company carried out a capital reduction of RO 3.487 million, being 10% of the original capital as a consequence to the structured plan of capital reduction approved by the CMA and the shareholders in the extraordinary general meeting held on 21 March 2012 (2011 – a similar capital reduction of RO 3.487 million and repayment of share premium of RO 4.764 million was carried out.) The value of the shares becomes nil at the end of the Project Life.

11 LEGAL RESERVE

a) In accordance with Article 106 of the Commercial Companies Law of the Sultanate of Oman, 1974 (as amended), 10% of the Company’s net profit for the year has been transferred to a non-distributable legal reserve until the amount of the legal reserve becomes equal to one-third of the Company’s issued share capital. Transfer has not been made in the current year as the reserve has reached the statutory minimum of one third of the capital.

b) In accordance with the approval of the shareholders at the Extraordinary General Meeting held on 21 March 2012, a proportionate amount of the legal reserve, RO 1.162 million has been transferred to the retained earnings on account of a capital reduction in December 2012 (2011 – a similar amount of RO 1.162 million was transferred to the retained earnings on capital reduction.)

12 DIVIDEND

a) During the year, dividend to preference shareholders of RO 0.153 per share amounting to RO 1.12 million and dividend to ordinary shareholders of RO 0.140 per share amounting to RO 0.684 million for the year 2011 was approved in the Annual General Meeting held on 21 March 2012 and paid subsequently (2011 – dividend to preference shareholders of RO 0.145 per share amounting to RO 1.366 million and dividend to ordinary shareholders of RO 0.125 per share amounting to RO 0.785 million).



12 DIVIDEND (Continued)

b) At the Annual General Meeting held on 21 March 2012, the Board of Directors was authorized to distribute interim dividends for the period of 6 months ended 30 June 2012, subject to a ceiling of 10% of share capital. Accordingly, an interim cash dividend of RO 0.100 per ordinary and preference share amounting to RO 1.220 million was declared and paid during the year.

c) During the year, amounts of RO 1,666, RO 5,669 and RO 3,696 pertaining to the year 2011, representing unclaimed dividends, unclaimed share premium and capital reduction respectively (2011 – RO 1,755 and RO 5,531 pertaining to the year 2010 representing unclaimed dividends and unclaimed capital reduction related entitlement), have been transferred to the Investors’ Trust Fund of the CMA.

13 TAXATION2012 2011

RO’000 RO’000

Statement of comprehensive incomeCurrent tax 631 825Prior year -- (257)Deferred tax credit (555) (616)

----------- ----------Taxation charge / (credit) 76 (48)

====== =====

2012 2011RO’000 RO’000

Statement of financial positionCurrent liability

Current taxation 885 1,082====== ======

Non-current liabilityDeferred tax liability 2,050 2,605

====== ======

The following further notes apply:

a) The Company is subject to income tax in accordance with the income tax law of the Sultanate of Oman at the tax rate of 12% on taxable profits in excess of RO 30,000.

b) The Company’s taxation assessments for the years 2007 to 2011 have not been finalised by the Secretariat General for Taxation. The management believes that the tax assessed, if any, for the unassessed tax years would not be material to the Company’s financial position at the end of the reporting period.

c) The reconciliation of taxation on the accounting profit with the taxation charge for the period is as follows: -



13 TAXATION (Continued)

2012 2011RO’000 RO’000

Profit before tax 660 1,824===== ======

Taxation on accounting profit at applicable rates 76 215Add / (less) tax effect of:

Non-deductible expenses -- 1Prior years -- (257)Deferred tax -- (7)

----------- -----------Taxation charge / (credit) 76 (48)

====== ======

d) The deferred tax liability and the deferred tax credit in the statement of comprehensive income are attributable to the following items:

2011

Credit in the statement of

comprehensive income 2012

RO ‹000 RO ‹000 RO ‹000

Property, plant and equipment 2,624 (555) 2,069Provision for obsolete inventories and allowance for credit losses (19) -- (19)

-------------- -------------- --------------Net deferred tax liability 2,605 (555) 2,050

======== ======== ========

14 ACCOUNTS AND OTHER PAYABLES2012 2011

RO ‹000 RO ‹000

Accounts payable 445 461Directors’ remuneration payable 34 35Accruals and other payables 218 351

-------------- --------------697 847

======== ========

15 SHORT TERM BORROWINGS

Short term borrowings are from a local commercial bank which carry interest at 2.50 % per annum (2011 – 3.75 % to 6.5% per annum). The borrowings are revolving facilities with a maximum period of 6 months during the availability period. The borrowing facilities contain certain restrictive covenants that are common for such arrangements.

16 NET ASSETS PER SHARE

Net assets per share is calculated by dividing the net assets at the end of the reporting period by the number of preference and ordinary shares outstanding as follows:



16 NET ASSETS PER SHARE (Continued)

2012 2011

Net assets (RO ‘000) 13,572 19,499

Number of preference and ordinary shares outstanding at the end of the year (‘000) 8,717 12,204

Net assets per share (RO) 1.557 1.598

17 OPERATING AND ADMINISTRATIVE EXPENSES2012 2011

RO’ 000 RO’ 000

Repair and maintenance expenses – plant 148 30Operation and maintenance fee – STOMO 2,911 2,737Operation and maintenance fee – SOGEX -- 50

-------------- ---------------3,059 2,817

Management fee 873 847Shared office overheads 407 374Salaries and employee related costs 19 19Directors’ meeting attendance fees and remuneration 50 54Legal and professional charges 53 51Insurance 492 520Registration and renewals 12 16Claim tax rate change 34 120Meetings and other related expenses 36 27Office expenses 27 22Allowance for credit losses [note 9 a)] 2 2

-------------- ---------------5,064 4,869

======== ========

18 BASIC EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the year by the weighted average number of preference and ordinary shares outstanding during the year as follows:

2012 2011

Profit for the year (RO’000) 584 1,872

Weighted average number of preference and ordinary shares outstanding throughout the year (’000) 11,918 15,400

Basic earnings per share (RO) 0.049 0.122

As the Company does not have any dilutive potential shares, the diluted earnings per share is the same as the basic earnings per share.

19 RELATED PARTY TRANSACTIONS

a) The Company has entered into transactions with key management personnel, entities and shareholders who have either control or significant influence over the Company. These transactions are entered into on terms and conditions approved by the management.



19 RELATED PARTY TRANSACTIONS (Continued)

b) The following is a summary of significant transactions with related parties during the year:

2012 2011RO’ 000 RO’ 000

Services provided by Power Development Company LLC- Management fee 873 847

---------- ----------- Shared office overheads 407 374

---------- ----------Directors’ remuneration and attendance fees 50 54

---------- ----------

20 LEASE COMMITMENTS

Land on which the power station, buildings and ancillaries are constructed has been leased from the Government for the duration of the Project Life. At the end of the reporting period, the future minimum lease commitments under non-cancellable operating leases are as follows:

2012 2011RO’ 000 RO’ 000

Within 1 year 1 1Between 2 to 5 years 4 4Above 5 years 3 4

----------- -----------8 9

====== ======

21 FINANCIAL RISK AND CAPITAL MANAGEMENT

The Company’s activities expose it to various financial risks, primarily being, market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk. The Company’s risk management is carried out internally in accordance with the policies approved by the Board of Directors. The risk management policies and systems are reviewed regularly to ensure that they reflect any changes in market conditions and the Company’s activities.

a) Market risk

Foreign currency riskThe Company is exposed to foreign exchange risk arising from various currency exposures. Significant portion of revenues and major operating costs are denominated in RO and indexed to the USD / RO exchange rates. The balance operating costs denominated in USD are covered by the fact that RO is pegged to the USD and has remained unchanged since 1986. As these currencies are pegged against the Omani Rial, the management does not believe that the Company is exposed to any material currency risk.

Interest rate risk The Company’s short term borrowings are on fixed rate basis. Accordingly, the Company

is not exposed to interest rate risk due to fluctuation in market interest rate. The Management manages its exposure to interest rate risk on short term borrowings by ensuring that they are as far as possible on a fixed rate basis.



21 FINANCIAL RISK AND CAPITAL MANAGEMENT (Continued)

b) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables. At the end of the reporting period, the entire accounts receivable was from a government owned company (OPWP). The management considers the credit risk associated with the receivables to be very low because the receivables are from the Government. Furthermore, the cash and short term deposits are also placed in reputable banks, which minimize the credit risk.

c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company maintains sufficient bank balances and cash to meet the Company’s obligations as they fall due for payment. The table below analyses the expected contractual maturities of the financial liabilities at the end of the reporting period.

31 December 2012

Carrying amountRO’000

Contractual cash flows

RO’000

0 to 6 months RO’000

Accounts and other payables 697 697 697Short term borrowings 6,700 6,700 6,700

------------ ------------- --------------7,397 7,397 7,397

======= ======= ========

31 December 2011

Accounts and other payables 847 847 847Short term borrowings 5,050 5,050 5,050

------------ ------------- --------------5,897 5,897 5,897

======= ======= ========

d) Capital management

The Company’s objectives when managing capital are:

o to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

o to provide an adequate return to shareholders and sustain future development of the business.

The Company has complied with externally imposed capital requirements as stipulated in the Commercial Companies Law, 1974 (as amended) and by the Capital Market Authority.



21 FINANCIAL RISK AND CAPITAL MANAGEMENT (Continued)

d) Capital management (Continued)

To provide a return to the shareholders in the years where the profit is low or there are losses, the Company has also planned reduction of share capital during certain periods. At the Extraordinary General Meeting held on 21 March 2012, the shareholders resolved to reduce the share capital in three phases during the next three years subsequent to the meeting. The reduction per phase would be in the range of 5% to 10% of the original share capital of RO 34.87 million, but would be subject to maintaining a minimum capital of RO 5 million. Subsequently, a capital reduction of RO 3.487 million was effected in December 2012.

22 COMPARATIVES

Certain comparative figures have been reclassified to conform to the presentation adopted in these financial statements.



7 PRO

PERTY, PLAN

T AN

D EQ

UIPM

ENT (Continued)

Year 2012 Gas turbines

Balance of plant

Plant spares ITF

Plant buildings and

ancillaries

Other assets Total

RO ‘000 RO ‘000 RO ‘000 RO ‘000 RO ‘000 RO ‘000 RO ‘000CostAt 31 December 2011 18,945 26,032 5,391 49,994 7,453 122 107,937Additions during the year -- -- -- -- -- 4 4

----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2012 18,945 26,032 5,391 49,994 7,453 126 107,941

----------- ----------- ----------- ----------- ----------- ----------- -----------DepreciationAt 31 December 2011 16,549 17,172 4,106 37,952 5,665 108 81,552Charge for the year 683 1,303 301 2,496 373 9 5,165

----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2012 17,232 18,475 4,407 40,448 6,038 117 86,717

----------- ----------- ----------- ----------- ----------- ----------- -----------

Net book valueAt 31 December 2012 1,713 7,557 984 9,546 1,415 9 21,224

====== ====== ====== ====== ====== ====== ======At 31 December 2011 2,396 8,860 1,285 12,042 1,788 14 26,385

====== ====== ====== ====== ====== ====== ======

United Pow

er Company (SAO

G)

62

NO

TES TO TH

E FINAN

CIAL STATEMEN

TS (Continued)for the year ended 31 D

ecember 2012

7 PRO

PERTY, PLAN

T AN

D EQ

UIPM

ENT (Continued)

Year 2011 Gas turbinesBalance of

plantPlant

spares ITF

Plant buildings and

ancillaries

Other assets Total


----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2011 18,945 26,032 5,391 49,994 7,453 122 107,937

----------- ----------- ----------- ----------- ----------- ----------- -----------DepreciationAt 31 December 2010 15,383 15,870 3,801 35,454 5,292 99 75,899Charge for the year 1,166 1,302 305 2,498 373 9 5,653

----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2011 16,549 17,172 4,106 37,952 5,665 108 81,552

----------- ----------- ----------- ----------- ----------- ----------- -----------

Net book valueAt 31 December 2011 2,396 8,860 1,285 12,042 1,788 14 26,385

======= ======= ======= ======= ======= ======= ========At 31 December 2010 3,562 10,162 1,590 14,540 2,161 22 32,037

======= ======= ======= ======= ======= ======= ========

Annual Report 2012

63

NO

TES TO TH

E FINAN

CIAL STATEMEN


ecember 2012

7 PRO

PERTY, PLAN

T AN

D EQ

UIPM

ENT (Continued)

Year 2012 Gas turbines

Balance of plant

Plant spares ITF

Plant buildings and

ancillaries

Other assets Total


----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2012 18,945 26,032 5,391 49,994 7,453 126 107,941

----------- ----------- ----------- ----------- ----------- ----------- -----------DepreciationAt 31 December 2011 16,549 17,172 4,106 37,952 5,665 108 81,552Charge for the year 683 1,303 301 2,496 373 9 5,165

----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2012 17,232 18,475 4,407 40,448 6,038 117 86,717

----------- ----------- ----------- ----------- ----------- ----------- -----------

Net book valueAt 31 December 2012 1,713 7,557 984 9,546 1,415 9 21,224

====== ====== ====== ====== ====== ====== ======At 31 December 2011 2,396 8,860 1,285 12,042 1,788 14 26,385

====== ====== ====== ====== ====== ====== ======

United Pow

er Company (SAO

G)

62

NO

TES TO TH

E FINAN

CIAL STATEMEN


ecember 2012

7 PRO

PERTY, PLAN

T AN

D EQ

UIPM

ENT (Continued)

Year 2011 Gas turbinesBalance of

plantPlant

spares ITF

Plant buildings and

ancillaries

Other assets Total


----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2011 18,945 26,032 5,391 49,994 7,453 122 107,937

----------- ----------- ----------- ----------- ----------- ----------- -----------DepreciationAt 31 December 2010 15,383 15,870 3,801 35,454 5,292 99 75,899Charge for the year 1,166 1,302 305 2,498 373 9 5,653

----------- ----------- ----------- ----------- ----------- ----------- -----------At 31 December 2011 16,549 17,172 4,106 37,952 5,665 108 81,552

----------- ----------- ----------- ----------- ----------- ----------- -----------

Net book valueAt 31 December 2011 2,396 8,860 1,285 12,042 1,788 14 26,385

======= ======= ======= ======= ======= ======= ========At 31 December 2010 3,562 10,162 1,590 14,540 2,161 22 32,037

======= ======= ======= ======= ======= ======= ========

Annual Report 2012

63

NO

TES TO TH

E FINAN

CIAL STATEMEN


ecember 2012

· pdf file · 2015-10-31report’. upc complies and ... stomo, had put in...

Documents