NOTES TO THE FINANCIAL STATEMENTS 23. PROVISION FOR DECOMMISSIONING COSTS (CONTINUED) The movements in the provision for decommissioning costs of the Group are as follows: Group 2025 RM’000 2024 RM’000 At 1 January 425,383 485,524 Unwinding of discount 19,571 16,526 Reassessment due to discount rate (80,738) (55,873) Foreign currency translation (11,226) (20,794) At 31 December 352,990 425,383 The Group makes full provision for the future costs of decommissioning its oil production facilities and pipelines with respect to the Anasuria Cluster on a discounted basis. The provision represents the present value of decommissioning costs which are expected to be incurred up to year 2039 (2024: year 2035) assuming no further development of the Anasuria Cluster. The liability is discounted at a rate of 4.88% (2024: 4.57%) and includes an inflationary factor of 2.00% (2024: 2.00%). The unwinding of the discount is classified as finance costs. These provisions have been created based on internal and third-party estimates. Assumptions based on the current economic environment have been made which management believe are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to consider any material changes to the assumptions. However, actual decommissioning costs will ultimately depend upon future market prices for the necessary decommissioning works required which will reflect market conditions at the relevant time. Furthermore, the timing of decommissioning liabilities is likely to depend on the dates when the fields cease to be economically viable. This in turn depends on future oil prices which are inherently uncertain. The present value of decommissioning costs has been revalued at the financial year end rate. 24. TRADE AND OTHER PAYABLES Note Group Company 2025 RM’000 2024 RM’000 2025 RM’000 2024 RM’000 Trade Trade payables 76,969 71,887 - - Non-trade Other payables 24.1 63,909 64,196 457 569 Accrued expenses 111,504 100,092 4,850 5,190 Interest payables - Borrowings - 257 - 257 175,413 164,545 5,307 6,016 252,382 236,432 5,307 6,016 187 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
RkJQdWJsaXNoZXIy NDgzMzc=