Additional Information Regarding Audited KN Financial Statements of 2019
The Company revised its balance sheet as of 31 December 2019 since the communication to Nasdaq on 31 January 2020. As of 31 December 2019, the Company’s total audited assets amounting to EUR 663.8 million and liabilities amounting to EUR 472.7 million were adjusted from the initial unaudited assets amount of EUR 528.8 million and liabilities amount of EUR 337.5 million by the amount of EUR 135 million and EUR 135.2 million respectively. The Company recorded the gross up of the balance sheet as a result of the assessment of the terms of Floating Storage Regasification Unit (FSRU) Independence lease contract with resulting capitalization of the purchase option in the audited financial statements as at 31 December 2019.
During the fourth quarter of 2019, few significant events took place, that had impact on the managements’ judgement and reassessment of probability to realise the purchase option included in the lease contract. Substantial time was required to complete thorough analysis of technological and economic circumstances in order to evaluate the probability to realise the purchase option and to ensure compliance with IFRS 16 requirements. However, it should be noted that the decision to capitalize the lease liabilities and the assets is not the decision to purchase the Independence. The management of the Company will organise the transparent FSRU selection process in order to choose the most economically favourable option, as required by the Republic of Lithuania Law on Liquefied Natural Gas Terminal and decision of the Board that came into force on 4 November 2019.
For the full set of audited financial statements of 2019 please refer to the announcement: https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=933078&messageId=1175453
Jonas Lenkšas, Chief Financial Officer, tel. +370 694 80594.