Page 47 - AL MAHA ENG AR-2020.indd

ANNUAL REPORT 2020

Financial Statements for the year ended 31 December 2020
Notes to the financial statements

7. LEASES

a) The Company enters into leasing arrangements for filling stations at various locations
across the Sultanate of Oman. The average lease term for the filling stations is around 6
years (2019 – 5 years).
b) The movement in the right-of-use assets during the year is as follows:

2020 2019
RO’000 RO’000
At the beginning of the year 3,515 --
Arising on adoption of IFRS 16 -- 4,170
Additions during the year 1,688 355
Depreciation for the year (1,131) (1,010)
At the end of the year 4,072 3,515

c) At the end of the reporting period, lease liabilities are analysed as follows:

2020 2019
RO’000 RO’000
Non-current portion 2,946 2,631
Current portion 1,329 1,025
4,275 3,656

d) The contractual maturity analysis of the undiscounted cash flows of the lease liabilities is
as follows:

2020 2019
RO’000 RO’000
Upto 1 year 1,209 1,086
Between 1 year to 5 years 2,110 2,209
Above 5 years 2,284 1,177
5,603 4,472

e) The amounts included in the statement of income relating to leases comprise:

2020 2019
RO’000 RO’000
Depreciation 1,131 1,010
Interest on lease liabilities (note 23) 242 228
Payments for short term leases / low – value assets 354 270
Variable lease payments not included in the lease liabilities 204 272
Income from sub-leasing right of use assets 126 214

f) The total cash outflow for leases amounted to RO 1.71 million (2019 – RO 1.74 million).

42