Leases - as lessee

12 Months Ended

Dec. 31, 2024

22.	Leases – as lessee

Leases as lessee under IFRS 16

The Group leases vessels, office spaces, and other equipment from external parties under non-cancellable operating lease agreements. The leases have varying terms including options to extend and options to purchase.

Information about leases for which the Group is a lessee is presented below.

(1)

Right-of-use assets - Vessels

	US$’000
Cost
At 1 January 2023		187,730
Additions		11,852
At 31 December 2023		199,582
Additions		22,131
At 31 December 2024		221,713

Accumulated depreciation
At 1 January 2023		119,826
Depreciation charge		45,195
At 31 December 2023		165,021
Depreciation charge		38,031
At 31 December 2024		203,052

Net book value
At 31 December 2023		34,561
At 31 December 2024		18,661

(2)

Amounts recognised in profit or loss

	2024 US$’000		2023 US$’000		2022 US$’000
Interest expense on lease liabilities		1,469		2,178		3,768
Expenses relating to short-term leases for vessels, included in charter hire expenses		19,997		5,594		1,040
Expenses relating to short-term leases for offices, included in rental expenses		1,984		1,988		1,613

(3)

Amounts recognised in statement of cash flows

		2024 US$’000				2023 US$’000				2022 US$’000
Total cash outflow for leases			44,192				45,969				48,643

(4)

Extension options

Some leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. In the financial year ended 2024 and 2023, the Group exercised options on certain leases to extend their charter period for a duration of one year and recognised additional lease liabilities with a corresponding increase in ROU assets.

The Group has estimated that the potential future lease payments, should it exercise the extension options, would result in an increase in lease liability of US$89.2 million.