20. Fair values continued
Description of significant unobservable inputs
The table below summarises the significant level 3 unobservable inputs used by the group in measuring fair values and related sensitivity analyses.
SENSITIVITY OF VALUATION TO CHANGES IN INPUTS
VALUATION IMPACT $M
VALUATION IMPACT $M
SIGNIFICANT UNOBSERVABLE INPUTS
RANGE AND ESTIMATES -US$8.5m to US$12.0m
2023
LOW
HIGH
-10.0%
-$0.8
+10.0%
+$0.8
Investment in private equity
Enterprise forecast annual cashflows
-1.0% -1.0% -1.0%
-$1.1 -$0.6 -$2.1
+1.0% +1.0% +1.0%
+1.5 +0.8
Discount rate
11.7% 2.0% 12.8%
Terminal growth rate
+$2.2 +$5.0
Contingent consideration
Discount rate
-2PJ per annum -US$50/ tonne
-$5.1 +2PJ per annum -$5.7 +US$50/ tonne
Future raw gas volume
203 PJ
+$5.7
LPG pricing (long-term)
US$525/tonne
-US$7/ barrel
-$3.7
+US$7/ barrel
+$3.7
Oil pricing (long-term)
US$74/barrel
SENSITIVITY OF VALUATION TO CHANGES IN INPUTS
VALUATION IMPACT $M
VALUATION IMPACT $M
SIGNIFICANT UNOBSERVABLE INPUTS
RANGE AND ESTIMATES -US$9.4m to US$10.9m
2022
LOW
HIGH
Investment in private equity
Enterprise forecast annual cashflows
-10.0%
-$1.1
+10.0%
+$1.1
Discount rate
9.8% 2.0% 9.7%
-1.0% -1.0% -1.0%
+$2.0 -$0.9 +$3.1
+1.0% +1.0% +1.0%
-$1.6 +$1.1 -$2.8 +$5.8
Terminal growth rate
Contingent consideration
Discount rate
Future raw gas volume 179 PJ
-2PJ per annum -US$50/ tonne
-$6.0 +2PJ per annum - $5.1 +US$50/ tonne
LPG pricing (long-term)
US$525/tonne
+$5.1
Oil pricing (long-term)
US$72/barrel
-US$7/ barrel
- $3.2
+US$7/ barrel
+$3.2
88
Vector Annual Report 2023
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