METKA GROUP | ANNUAL REPORT 2014 - page 38-39

37
36
2014
2013
Αmounts in thousands
Nominal Amounts
USD SYP GBP RON TRL DZD JOD IQD USD SYP GBP RON TRL DZD JOD IQD
Financial Assets
85,877 481 33 1,743 14,375 6,162 2,097 0 129,110 567 23 2,215
253 1,986 4,117
-
Financilal Liabilities
(32,300 ) (958 ) (91 )
0 (404 ) (8,769 ) (3,235 ) (58 ) (82,208 ) (695 ) (64 )
- (1,622 )
-4,548 -2,513 (37 )
Total
53,577 (477 ) (58 ) 1,743 13,970 (2,608 ) (1,138 ) (58 )
46,902 (128 ) (40 ) 2,215 (1,369 ) (2,562 ) 1,604 (37 )
Short-term exposure
58,737 (477 ) (58 ) 1,743 13,970 (2,608 ) (1,138 ) (58 )
46,902 (128 ) (40 ) 2,215 (1,369 ) (2,562 ) 1,604 (37 )
The table below shows the sensitivity analysis of the financial year’s result and equity in combination with the financial
assets and the financial liabilities at the exchange rate EUR/USD, EUR/GBP,EUR/RON, EUR/TRL, EUR/SYP, EUR/DZD ,
EUR/JOD end EUR/IQD. The table was prepared based on the scenario that there is a fluctuation at 31 December 2014
of the above exchange rates by 5% (2013: 5%). The effect on result and equity is as follows:
In order control the exchange rate risk resulting from transactions with non-EU countries (mainly in US $), the group
treasury department signs currency pre-purchase contracts on behalf of the separate Group companies when this is
deemed necessary.
III. Interest Rate Risk
It is the risk from the fluctuations in the financial assets and li-
abilities value due to changes of the interest rates. The Group
is exposed to interest rate risk arising from short-term financing.
The total assets of the Group that are exposed to interest rate
fluctuations relate mainly to cash and cash equivalents. The
Group finances the projects using own funds in order to mini-
mize the level of bank borrowing.
The Group is exposed to exchange rate risk due to transactions with customers and suppliers in foreign currency, the
majority of which are in USD. Contracts in USD are the Iraq project as well as the projects in Jordan and the project for
the construction of 8 mobile generators in Algeria.
The financial assets as well as the corresponding liabilities of the Group in foreign currency converted into Euros with
the closing exchange rate are analysed as follows:
At 31 December 2014 the total borrowing
of the Group relates to short-term borrow-
ing in Euros. (Analytical table of short-term
borrowing is in paragraph 25). Refer also to
the following sensitivity analysis, where the
sensitivity of result and equity is presented
given a reasonable change of interest at a
rate + 3% or – 3%.
IV. Market Price Risk
The Group is exposed in fluctuations in the value of raw and
other materials purchased as well as changes in the value of
portfolio investments due to uncertainty of their future prices.
The risk of fluctuations of the value of raw and other materials
is limited as in major contracts that the Group enters into price
readjustment clauses are included.
The market price risk regarding the portfolio of investments
of the Group is considered limited, as the investments of the
Group are mainly in Government bonds and they represent a
very small portion of financial assets of Group.
V. Liquidity Risk
Liquidity risk is the risk that arises when the cash and cash
equivalent assets are not adequate to meet the liabilities at their
maturity date.
Liquidity risks is held at low level by maintaining adequate level
of cash & cash equivalent and positive working capital, while
there are also unused credit lines from banks to meet any cash
requirements.
The Group manages its liquidity require-
ment by close monitoring of the level of
liabilities, obligations and payments on a
daily basis.
Liquidity risk is closely linked to the project
performance and procurement risk, given
the financial negative impact that may arise
in case of failure to execute the project un-
der the terms of the contract.
The table below analyses the Group’s
and Company’s financial liabilities, based
on the remaining period at the balance
sheet date until the expiry of payables. The
amounts shown in the table are the con-
tractual undiscounted cash flows. Balanc-
es ending within 12 months equal to their
book values, since the effect of discounting
is not significant. Liabilities from construc-
tion contracts are not included due to the
application of IAS 11.
Amounts in thousands
31/12/2014
31/12/2013
3%
-3%
3%
-3%
Earnings before tax
(137)
137
(1,279)
1,279
Equity
(101)
101
(946)
946
Annual Report of the Board of Directors
2014
2013
Αmounts in thousands
USD SYP GBP RON TRL DZD JOD IQD USD SYP GBP RON TRL DZD JOD IQD
Earnings before tax
2,679 (24 )
(3 )
87 699 (130 )
-57 (3 )
2,345 (6 ) (2 )
111 (68 )
(128 )
80 (2 )
Equity
2,021 (18 )
(2 )
70 559 (106 )
(49 ) (2 )
1,821 (5 ) (1 )
89 (55 )
(104 )
69 (1 )
2014
2013
Αmounts in thousands
Earnings before tax
USD SYP GBP RON TRL DZD JOD IQD USD SYP GBP RON TRL DZD JOD IQD
Equity
(2,679 )
24
3 (87 ) (699 )
130
57 3 (2,345 )
6 2 (111 )
68
128 (80 )
2
(2,021 )
18
2 (70 ) (559 )
106
49 2 (1,821 )
5 1 (89 )
55
104 (69 )
1
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