Notes to the financial statements (continued) Section 4: Debt and equity (continued)
17. Financial risk management (continued)
iii. Sensitivity analysis (continued) See table 37 below.
Table 37: Sensitivity analysis
Interest rate risk
Foreign currency risk
Impact on other comprehensive income
Impact on other comprehensive income
Carrying amount
Impact on post-tax profit
Impact on post-tax profit
+1% $M
-1% $M
+1% $M
-1% $M
+10% $M
-10% $M
+10% $M
-10% $M
$M
At 30 June 2025 Cash and cash equivalents Trade and other receivables (excluding prepayments) Derivatives-interest rate swaps 2 Derivatives-FX contracts
- - - 3 3 - - - - 1 -
- - - - -
- - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - -
- - (4) -
- - 17 -
(3) - - -
3 - - -
304 253 5 - 562
Total financial assets
3 (3)
17 (4)
Trade and other payables Borrowings 1 Lease liabilities Derivatives-interest rate swaps 2 Derivatives-FX contracts Derivatives-forward borrowings 3
- - - - (2) -
- - - - - (28)
- - - - - 25
- 55
- (55)
213 8,030
- - - -
- - - -
40 20 - 8
Total financial liabilities
8,311 (55)
55 25 (28)
- (2)
(1)
At 30 June 2024 Cash and cash equivalents Trade and other receivables (excluding prepayments) Derivatives-interest rate swaps 2 Derivatives-FX contracts
- - - 2 2 - - - - -
- - - - -
- - - - - - - - -
- - (36) -
- - 35 -
(2) - - -
2 - - -
222 251 29 - 502
Total financial assets
2 (2)
35 (36)
Trade and other payables Borrowings 1 Lease liabilities Derivatives-forward borrowings 3
- - - (2)
- - - - -
- - - - -
- 45
- (45)
164 7,672 26 -
- -
- -
Total financial liabilities
7,862 (45)
45
- (2)
As at 30 June 2025, the sensitivity analysis of interest rate risk is based on Western Power’s: 1 Floating rate borrowings of $3,525 million (30 June 2024: $2,925 million) and variable rate working capital borrowings of $51 million (30 June 2024: $40 million). The majority of Western Power’s borrowings are at fixed interest rates as allowable under the Board approved Treasury Management Standard. 2 46 interest rate swap agreements (30 June 2024: 41) at a notional amount of $1,950 million (30 June 2024: $1,550 million). These agreements are entered into to hedge against floating interest rate exposures arising from borrowing obligations. 3 Fixed rate forward domestic borrowing commitment (30 June 2024: Nil) at a notional amount of $350 million (30 June 2024: $nil million). This commitment has been entered into to mitigate refinancing risk and to hedge against floating interest rate exposure arising from future borrowing obligations. It is recognised as a derivative financial instrument in the reporting year between entering into the forward domestic borrowing agreement and draw down of the loan principal.
Western Power Annual Report 2025
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