PTT Global Chemical Public Company Limited and its Subsidiaries For the year ended 31 December 2023 PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements For the year ended 31 December 2023 107 Sensitivity analysis The sensitivity analyses below have been determined based on the exposure to interest rates for financial liabilities at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year and using an increase or decrease rate by considering the reasonably possible change in interest rates. Consolidated financial statements Separate financial statements Impact to profit or loss Increase in interest rate 1% Decrease in interest rate 1% Increase in interest rate 1% Decrease in interest rate 1% (Million Baht) 2023 Finance costs 991 (991) 527 (527) 2022 Finance costs 956 (951) 525 (525) (b.3.3) Commodity price risk The Group is exposed to commodity price risk which may occur from purchases and sales. The Group mitigates risk by closely monitoring market situation, feedstock price and product price to appropriately adjust sales and production plans through our value chain amid fluctuating market situations. Moreover, the Group primarily applies derivative and forward contracts to hedge the commodity prices, in order to protect crude oil price and spread in accordance with the framework approved by the Risk Management Committee of the Group, which are not lower than the business plan levels. Those hedging transactions will cause a gain (loss) from derivatives which will be offset against crude oil and product prices, to maintain the Group’s gross profit and net profit stability as the business plan are as follows: - In the event that the crude oil price or spread is less than the forward contracts, there will be gain on derivative. Meanwhile, the gross profit which the Group received in cash will decrease due to the decrease in the crude oil price or spread. - On the contrary, in the event that the crude oil price or spread is more than the forward contracts, there will be loss on derivative. Meanwhile, the gross profit which the Group received in cash will increase due to the increase in the crude oil price or spread. Overall, the commodity price risk hedging by using the forward contracts and/or the derivative hedge can mitigate the impact of Group’s performance from price and spread fluctuations. The Group and the Company recognised losses on commodity hedging of Baht 627 million for the year ended 31 December 2023 (2022: recognised losses of Baht 23,057 million) due to the products spread prices were higher compared to the hedged prices of the commodity hedging. 351 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2023
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