Icon Energy Limited Annual Report 2022

ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2022 Cash flow sensitivity analysis for variable rate instruments (b) Credit risk (c) Liquidity risk Carrying Amount Contractual Cashflows <1Year 1-5 Years $ $ $ $ 30 June 2022 Trade and other payables 96,501 96,501 96,501 - Lease liability 41,315 41,315 41,315 - 137,816 137,816 137,816 - 30 June 2021 Trade and other payables 138,680 138,680 138,680 - Lease liability 123,470 123,470 75,973 47,497 262,150 262,150 214,653 47,497 Fair value estimation The carrying values less provision for impairment of financial assets and financial liabilities of the Consolidated Entity, as stated in the Consolidated Statement of Financial Position and accompanying explanatory notes at 30 June 2022, are a reasonable approximation of their fair values due to the short-term nature of the instruments. No financial assets and financial liabilities are traded in active markets. The Consolidated Entity’s liquidity risk relating to financial liabilities at 30 June 2022 is limited to the repayment of the trade payables and lease liability. Trade payables are short-term in nature. The Consolidated Entity does not finance exploration activities through debt. Ultimate responsibility for liquidity risk rests with the board of directors, who have an appropriate liquidity risk management framework for the management of the Consolidated Entity’s short, medium and long-term funding and liquidity requirements. The Consolidated Entity does not have any significant credit risk exposure to any single counterparty of any group of counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. NOTE 18 - FINANCIAL INSTRUMENTS (Continued) At 30 June 2022, if the interest rates had increased / decreased by 0.5% from the period-end rates with all other variables held constant, post-tax profit for the year for the Consolidated Entity would have been $7,319 higher/$7,321 lower (30 June 2021: $12,615 higher/$12,731 lower), mainly as a result of the Consolidated Entity’s exposure to interest rates on its variable rate cash and cash equivalents. Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated Entity. The Consolidated Entity enters into legally binding contracts and management monitors the progress of these contracts in accordance with contract values, as a means of mitigating the risk from financial loss. Liquidity risk arises from the financial liabilities of the Consolidated Entity and its subsequent ability to meet its obligations to repay their financial liabilities as and when they fall due. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Consolidated Entity’s maximum exposure to credit risk without taking account of the value of any collateral obtained. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Entity manages liquidity risk by monitoring forecast and actual cash flows, matching the maturity profiles of the financial assets and liabilities and entering into contracts in accordance with an approved Authority for Expenditure. The following are contractual maturities of financial liabilities: The sensitivity analyses have been determined based on the exposure of the Consolidated Entity to variable interest rates for non-derivative financial instruments at the reporting date at the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 0.5% increase or decrease is used when reporting interest rates internally to the board of directors and represents management’s assessment of the possible change in interest rates. Icon Energy Annual Report 2022 51