This e-learning course provides a practical understanding of derivatives and their role in risk management. You will explore why hedging is essential, the key instruments PTTEP uses, and how hedge accounting shapes our financial reporting. Through real PTTEP examples, you’ll see how mark-to-market valuations and settlement processes affect the results and reflect the true financial impact of hedging activities.

Chapters:

Chapter Opening: Introduction to the Course

Chapter 01. Why is Hedging Important?

Learn the purpose and importance of hedging as a risk management tool, and how it helps safeguard PTTEP’s financial stability.

Chapter 02. Key Derivatives Used by PTTEP

Get introduced to the essential instruments - Oil Price Hedging, FX Forward Contracts, and Cross Currency Swaps (CCS), and understand their applications.

Chapter 03. Applying Hedge Accounting Under IFRS 9

Explore why hedge accounting is applied, the conditions that must be met to apply it, and how the results are reflected in the financial statements (P&L or OCI).

Chapter 04. Mark-to-Market Valuation

Understand how derivatives are valued through the Mark-to-Market process and explore how market conditions impact unrealized gains and losses.

Chapter 05. Hedging Settlement Process

Dive into the settlement process for each instrument and examine how realized gains and losses flow into PTTEP’s financial performance.

Chapter 06. Key Takeaways

Recap the derivatives lifecycle and highlight the role of derivatives as an essential tool for PTTEP’s financial risk management.