244 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 36 FINANCIAL INSTRUMENTS (CONTINUED) Market risk (continued) 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 2025 2024 US$’000 US$’000 Quantity (bbl per month) Ranging from 24,000 to 56,666 50,000 Strike price (US$/bbl) 55 60 Effective date January 2026 August 2024 Expiration date December 2026 July 2025 Sensitivity analysis A 10% change in the oil and gas prices at the reporting date would have changed profit or loss by the amounts shown below, respectively. This analysis assumes that all other variables remain constant. Group Note 2025 2024 US$’000 US$’000 Sale of crude oil and gas 23 31,880 29,814 Capital management Capital consists of total equity attributable to owners of the Company, net of accumulated losses. 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. 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.
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