Rex International Holding Limited 2 4 1 NOTES TO THE FINANCIAL STATEMENTS 37 FINANCIAL INSTRUMENTS (CONTINUED) Market risk (continued) Interest rate risk (continued) Cash flow sensitivity analysis for variable rate instruments A reasonably possible change of 100 basis points in interest rates at the reporting date would have changed profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. Group 2024 2023 US$’000 US$’000 Variable rate instruments, representing cash flow sensitivity 1,421 1,011 Equity price risk Equity price risk arises from debt and equity investments measured at FVTPL. The primary goal of the Group’s investment strategy is to maximise investment returns, in general. Management is assisted by external advisors in this regard. These are designated as at FVTPL because their performance is actively monitored and they are managed on a fair value basis. Sensitivity analysis A 10% change in the underlying prices of the investments at the reporting date would have changed profit or loss by the amounts shown below, respectively. This analysis assumes that all other variables remain constant. Group Company Note 2024 2023 2024 2023 US$’000 US$’000 US$’000 US$’000 Debt and equity investments 14 1,298 1,860 1,290 1,860 Oil and gas price risk The Group is exposed to the risk of fluctuations in prevailing market commodity prices on the mix of oil and gas products it produces. The Group continuously evaluates and assesses opportunities for hedging as part of a prudent financial risk management process. The Group entered into put options contract to manage significant reductions in crude oil prices: Group 2024 2023 US$’000 US$’000 Quantity (bbl per month) 50,000 40,000 Strike price (US$/bbl) 60 35 Effective date August 2024 February 2023 Expiration date July 2025 January 2024
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