Derivative financial instruments

12 Months Ended

Dec. 31, 2024

Derivative financial instruments [Abstract]

12.	Derivative financial instruments

	2024 US$’000				2023 US$’000
	Assets		Liabilities		Assets		Liabilities
Cash flow hedges
- Interest rate swaps		22,935		—		45,964		—
Non-hedging instruments
- Forward freight agreements		1,690		891		1,512		276
- Forward foreign exchange contracts		—		1,048		449		—
		24,625		1,939		47,925		276
Analysed as:
Non-current		12,024		—		35,023		—
Current		12,601		1,939		12,902		276
		24,625		1,939		47,925		276

Cash flow hedges

Interest rate derivatives

The Group has entered into interest rate swap contracts that qualify for hedge accounting. The Group pays interest at fixed rates varying from 0.46% to 3.02% (2023: 0.46% to 3.10%) per annum and receives interest at a floating rate based on compounded SOFR with a credit adjustment spread; after gradually transitioning throughout the financial year ended 31 December 2023 from the three-month US$ LIBOR as a result of the IBOR reform.

The notional principal amount of these outstanding interest rate swaps as at 31 December 2024 amounted to US$446.1 million (2023: US$1,005.6 million). Of these, US$38.9 million matures within one year, US$332.2 million matures within two to five years, and US$75.0 million matures after five years. The notional amount of the hedging instruments directly impacted by IBOR reform as at 31 December 2023 amounted to US$1,005.6 million.

Non-hedging instruments

Forward foreign exchange contracts

The Group has entered into forward foreign exchange contracts to swap United States Dollars for Singapore Dollars and Danish Kroner with an external financial institution. The notional principal amounts of the outstanding forward foreign exchange contracts as at 31 December 2024 and 2023 comprise the following:

	2024 US$’000				2023 US$’000
Currency	Notional amounts in local currency		US$ equivalent		Notional amounts in local currency		US$ equivalent
Singapore Dollars		27,648		21,039		31,268		23,381
Danish Kroner		60,000		8,818		—		—

As at 31 December 2024, these forward foreign exchange contracts will mature within 12 (2023: 12) months from the balance sheet date. No hedge accounting is adopted and the fair value changes of these forward exchange contracts are recorded in profit or loss.

Freight forward agreements

The Group has entered into a number of forward freight agreements in order to hedge its spot voyage exposure for its vessels trading in the pools. As at 31 December 2024, the Group has outstanding positions with a notional amount of US$79.7 million (2023: US$69.7 million), which will mature in the next one year. No hedge accounting is adopted and the fair value changes of these freight forward agreements are recorded in profit or loss.