22. PROVISION FOR DECOMMISSIONING COSTS (CONTINUED) The movements in the provision for decommissioning costs of the Group are as follows: Group 31.12.2024 31.12.2023 RM’000 RM’000 At 1 January/1 July 485,524 422,667 Unwinding of discount 16,526 22,704 Reassessment due to discount rate (55,873) - Foreign currency translation (20,794) 40,153 At 31 December 425,383 485,524 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 2035 assuming no further development of the Anasuria Cluster. The liability is discounted at a rate of 4.57% (31.12.2023: 3.40%) and includes an inflationary factor of 2.00% (31.12.2023: 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. 23. TRADE AND OTHER PAYABLES Group Company 31.12.2024 31.12.2023 31.12.2024 31.12.2023 Note RM’000 RM’000 RM’000 RM’000 Trade Trade payables 71,887 102,904 - - Non-trade Other payables 23.1 97,160 49,552 569 541 Accrued expenses 67,128 65,633 5,190 2,916 Interest payables - Borrowings 257 13,829 257 - 164,545 129,014 6,016 3,457 236,432 231,918 6,016 3,457 168 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2024
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