b'STAATSOLIE MAATSCHAPPIJ SURINAME N.V.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (Continued)SECTION 5.CAPITAL AND DEBT STRUCTURE 5.1 ISSUED CAPITAL AND RESERVESTheauthorizedsharecapitalofStaatsolieasthe shares.TheearningspersharewereUS$14.24parentoftheGroupamountstoUS$12,104asat (2019:US$24.01).Duringtheyear,theauthorizedDecember31,2020andisdividedinto5million share capital remained unchanged. Issuedcapitalisasfollows:(X US$ 1,000) 2020 2019Ordinary share capital 5,000,000ordinaryshares 12,104 12,104Reserve for environment risk supports sustainable growth and ensuring healthy capitalratiostobeincompliancewiththefinancialTheenvironmentalriskreserveisareserve covenants to support the business.taken against environmental risk claims based on damages which may result from an environmentalInordertoachievethisoverallobjective,thedisaster in the execution of ocean freight cargoGroupscapitalmanagement,amongstotherdeliveries.Inaddition,damagestotheenvironment things,aimstoensurethatitmeetsthefinancialdue to onshore well operations are alsocovenants attached to its interest-bearing loans appropriated for in this reserve. Based on historicaland borrowings that form part of its capital informationandexperience,theGroupbelievesthat structurerequirements.BreachesinthefinancialanannualadditionofUS$500issufficient,whichis covenants would permit the lenders to immediately decided by the board of directors.callinterest-bearingloansandborrowings.TherehavebeennobreachesinthefinancialcovenantsNon-Distributable Reserve Hydro dam of any interest-bearing loans and borrowings in the TheNon-DistributableReserveHydrodam current or prior period. representsequityarisingfromthetransferof ThemainfinancialcovenantsmonitoredbythetheAfobakaHydro-damtoSPCSfromthe Groupare:Government of Suriname (GoS).TheinterestcoverageratiowhichiscalculatedAsofJanuary01,2020,theGoSacquiredthe bydividingtheadjustedconsolidatedEBITDAAfobaka Dam at no cost and transferred thebythefinancialexpensesandincome.For2020ownershiptoSPCS.Theproducedelectricityis thisratiowas5.17(2019:6.06);theminimumsoldanddeliveredtotheGoS.TheexistingPower permittedis3.50.PurchaseAgreement(PPA)betweenSPCSandthe GoS has been amended and is still underThePV10ratioandthePetroleumPV10ratioreview by the GoS.wereintroducedwiththerefinancinginMay2018.PV10meanstheNetPresentValueofSince the hydro dam was transferred at no costthe future net revenues and the calculated ratio fromtheGoS,thistransferwasultimatelytreatedas (includingGoldparticipations)for2020was1.55aCapitalcontributionfortheamountUS$16,389. (2019:1.76);theminimumpermittedis1.30.5.2 CAPITAL MANAGEMENTPetroleumPV10meanstheNetPresentValueForthepurposeoftheStaatsoliescapital of the future net revenues with respect to the management,capitalincludesissuedcapital hydrocarbonIPreservesonly,asevidencedinandallotherequityreservesattributabletothe themostrecentpetroleumreservereport.Theequityholders.Themainobjectiveofthecapital calculatedratiofor2020was1.10(2019:1.37);themanagementofStaatsolieistoensureafinancial minimumpermittedis1.00.structurethatoptimizesthecostofcapital, Anewratiowasintroducedin2020,theleveragemaximizestheperformanceofitsshareholder ratio.Thisratioiscalculatedbydividingthetotalandallowsaccesstofinancialmarketsata debtbytheadjustedconsolidatedEBITDA.Forcompetitivecosttocoveritsfinancingneedsthat 2020thisratiois2.83;themaximumpermittedis3.50for2020.138 STAATSOLIE 2020 ANNUAL REPORT'