The following table reflects our understanding of the most significant climate-related risks relevant to our business. The Group is cognisant that the list is not exhaustive, and we will continue to enhance our understanding and responses to these risks. Transition Risks Description Risk Mitigation Resilience Policy and Legal Efforts by countries to achieve decarbonisation targets will lead to lower demand of oil and gas • Renewable energy technologies are preferred by policy makers to achieve countries’ decarbonisation targets. • Green technology in machinery and equipment are preferred. Some examples would be electric vehicles and rechargeable generator sets. • With the global shift away from fossil fuels, the Group may experience lower demand for crude oil. Financial impact: Decrease in demand resulting in lower revenue Value Chain and Impact Region(s): Oil & Gas segment Likelihood5 and Time period6: • Certain • Short, Medium, Long The Group is of the view that there will still be dependence on oil and gas (at least in the short term) and will continue to evaluate and consider other forms of business diversification to reduce concentration risk in the oil & gas business. Rex shareholders approved the Group’s business diversification mandate to diversify the Group’s business to include sustainable solutions for energy production and materials used in various industries in 2019. The Company has since diversified its portfolio by investing in Xer, a player in the growing Unmanned Aircraft Systems (“UAS”) solutions market. The Group holds a 50.4% interest in Xer, which has been trading under the new ticker symbol “XER” on the Sweden Spotlight Stock Market from 11 February 2026. Oil & gas operations wise, risk migration of climate footprint may include electrification plans for licences in Norway and Germany, and collaborative studies that monitor CO2 and other harmful gases to the environment. Under both the International Energy Agency’s Stated Policies Scenario (“IEA STEPS”) and Announced Pledges Scenario (“IEA APS”), global demand for oil is projected to peak by 2030 before declining. Rex has bolstered its resilience towards this projected decline by putting in place contracts with off-takers to buy the oil produced in concessions operated by the Group. The Norwegian Government’s climate target is to reduce Norway’s greenhouse gas emissions by at least 70 to 75% by 2035, compared to 1990 levels. This builds on Norway’s current Nationally Determined Contribution (NDC) under the Paris Agreement, which entails at least a 55% reduction by 2030. The target is low-emission society by 2050 (net zero emission target). To strengthen its resilience, the Group is proactively diversifying its portfolio by expanding into climate change mitigation projects, such as carbon capture & storage (“CCS”) licences, hydrogen projects and its investment in Xer. These initiatives not only mitigate the risks posed by fluctuating oil demand but also position the Group as a forward-thinking entity investing in long-term sustainable solutions. In line with Oman’s Vision 2040, the country’s National Energy Strategy aims to derive 20% of electricity from renewable sources by 2027. This increased proportion of renewables in the energy mix will lead to a possible reduction in demand for crude oil. There may also be potential increased costs to adopt new technology and changes in production processes to reduce gas flaring. Oman is committed to transitioning towards a sustainable energy future by shifting to renewable energy as a primary power source. The Group’s participation in the hydrogen project, signed in 2024, has the potential to contribute to this energy transition. 5 Definitions of “Likelihood” used in this SR in decreasing order of likelihood: Certain, Likely, Possible 6 Definition of “Time period” used in this SR: Short: 1 – 3 years; Medium: 3 – 5 years; Long: More than 5 years 74 Annual Report 2025
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