FINANCIAL REVIEW TREASURY MANAGEMENT Given its international operations, the Group is exposed to various financial risks, including foreign exchange, liquidity, interest rate and credit risks. The Group has established treasury policies and guidelines to mitigate these risks. Treasury activities are handled by the Group’s wholly owned entity, ST Engineering Treasury Pte. Ltd., to ensure effective management of the Group’s liquidity and financial risk exposures. Banking Facilities The Group has banking facilities of approximately $21.0b (2023: $20.7b) as at 31 December 2024 to support business operations in the areas of trade finance, hedging and credit. As at 31 December 2024, the Group has utilised $8.2b or 39% of its total facilities (2023: $7.6b or 37%) with $12.8b or 61% (2023: $13.1b or 63%) remaining untapped. In addition to the above, the Group has a US$1.5b (2023: US$1.7b) committed revolving credit facility to backstop its outstanding short-term U.S. commercial papers (USCP) of US$1.3b (2023: US$1.4b). Foreign Exchange The Group has receivables and payables denominated in foreign currencies. Where possible, the Group offsets currency exposures across its business units before hedging the remaining currency exposures in the market via foreign exchange forward contracts. The main currencies transacted in 2024 for the Group were USD and EUR. As at 31 December 2024, $2.5b (2023: $2.4b) remained as outstanding foreign exchange transactions. 20.0 16.0 12.0 8.0 4.0 24.0 BANKING FACILITIES* ($b) Total 2023 Utilised 2023 20.7 7.6 Trade Finance Foreign Exchange Interest Rates Swaps & Cross Currency Swaps Loans 21.0 8.2 Total 2024 Utilised 2024 * excludes US$1.5b committed revolving credit facility to backstop USCP 0 46 ST ENGINEERING | ANNUAL REPORT 2024
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