Annual Report 2024 2 4 2 NOTES TO THE FINANCIAL STATEMENTS 37 FINANCIAL INSTRUMENTS (CONTINUED) Market risk (continued) Oil and gas price risk (continued) Sensitivity analysis A 10% change in the oil and gas prices 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 Note 2024 2023 US$’000 US$’000 Sale of crude oil and gas 24, 38 29,814 22,239 Capital management The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Capital consists of total equity attributable to owners of the Company. The Board of Directors monitors the return on capital, which the Group defines as total shareholders’ equity excluding non-controlling interests, as well as the level of dividends to ordinary shareholders. The Group monitors the capital position of the Group to ensure a sufficiently strong capital base so as to maintain investor, creditor and market confidence. This is also a platform to sustain the existing business and for future growth. There has been no change in the Group’s approach to capital management during the year. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. 38 COMPARATIVE FIGURES The following adjustments have been made to the prior year’s financial statements: (1) The contract assets and contract liabilities are now separated from the trade and other receivables and trade and other payables respectively in the statements of financial position. (2) Comparative amount relating to ‘accretion of decommissioning receivables’ were reclassified from finance expense to finance income in the consolidated statement of comprehensive income. (3) The Group’s oil and gas operations in Oman are governed by an Exploration and Production Sharing Agreement (“EPSA”). Under the terms of the EPSA, Masirah Oil Ltd (“MOL”) is subject to Omani income tax at a rate of 55%, which are paid in full, on behalf of MOL from the government share of oil. Consequently, the Group recognised a tax expense with a corresponding increase in sale of crude oil and gas in the consolidated statement of comprehensive income.
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