NET FINANCE COSTS Finance income of US$10.75 million recorded in FY2024 (FY2023: US$8.64 million), mainly arose from interest income from fixed deposits, interest compensation from the Norwegian authorities in relation to tax refunds in Norway and interest accretion of decommissioning receivables. Finance expense remained fairly consistent at US$29.79 million and US$28.81 million in FY2024 and FY2023 respectively, arising from senior secured bonds issued by a subsidiary and interest accretion from decommissioning provisions. Net foreign exchange loss decreased to US$0.94 million in FY2024 (FY2023: US$4.22 million), due to receipt of outstanding receivables denominated in Norwegian Krone and Euro in the second half of FY2023, resulting in a reduction of the Group’s foreign currency exposure in FY2024, despite the weakening of the Norwegian Krone against the United States dollar. TAXATION The Group’s tax expense increased to US$41.45 million in FY2024 (FY2023: US$28.04 million), mainly due an increase in taxable income due to operating profits in Norway, net against decrease in Omani income tax. NON-CURRENT ASSETS Non-current assets of the Group decreased to US$326.73 million as at 31 December 2024 (31 December 2023: US$403.50 million) mainly due to: 1) a decrease in O&G properties of US$34.94 million as a result of i) impairment losses on O&G properties of US$41.21 million, ii) depletion of O&G properties of US$97.93 million, iii) net foreign currency translation loss of US$16.32 million on consolidation due to weakening of the Norwegian Krone against the United States dollar, net against i) additions to O&G properties of US$108.77 million from drilling and production activities in Norway and Oman, and acquisition of an additional interest in the Yme Field, and ii) adjustments to O&G properties of US$6.93 million from changes in decommissioning provision. 2) impairment of goodwill of US$7.76 million was recognised in FY2024, adjustments to goodwill of US$3.22 million in relation to the acquisition of Xer Technologies Pte. Ltd., and derecognition of patents of US$1.78 million, due to the disposal of a subsidiary; 3) disposal of a jointly controlled entity in FY2024; and 4) a decrease in non-current decommissioning receivables of US$35.13 million arising mainly from changes in decommissioning provision for the Brage Field and foreign currency translation loss on consolidation as a result of the weakening of the Norwegian Krone against the United States dollar; Net against: 1) an increase in E&E assets of US$9.12 million, mainly due to an increase in drilling activities in Norway. CURRENT ASSETS Inventories increased to US$36.29 million as at 31 December 2024 (31 December 2023: US$33.27 million) mainly due to the acquisition of an additional 15 per cent interest in the Yme Field (which was completed on 29 November 2024). Current trade and other receivables of the Group increased to US$78.80 million as at 31 December 2024 (31 December 2023: US$52.15 million) largely due to a net increase in trade receivables of US$22.78 million from the sale of crude oil in Oman and Norway at the end of December 2024 and an increase in prepayments due to US$5.22 million paid in advance for an equipment in Benin. Contract assets was US$Nil as at 31 December 2024 (31 December 2023: US$10.26 million) due to a decrease in accrued revenue, as a result of the sale of gas in December 2024 and invoicing to a customer as at 31 December 2024. Quoted investments decreased to US$12.98 million as at 31 December 2024 (31 December 2023: US$18.60 million) mainly due to the maturity of certain debt instruments, and the corresponding proceeds which were used as general working capital instead of being reinvested into other quoted investments. The Group recognised derivative financial instruments of US$0.30 million as at 31 December 2024, from the forward options to manage significant volatility in crude oil prices. Rex International Holding Limited 5 5
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