Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information on our utilization of financial instruments and an analysis of the sensitivity of these instruments to selected changes in market rates and prices is included in our 2024 Form 10-K.

Our net financial instrument position decreased from a liability of $13,855.3 at 30 September 2024 to a liability of $13,746.8 at 31 December 2024. The decrease was primarily due to the strengthening of the U.S. Dollar that was offset by additional borrowings under the project financing associated with the NEOM Green Hydrogen Project as discussed in Note 3, Variable Interest Entities, to the consolidated financial statements.

Interest Rate Risk

Our debt portfolio as of 31 December 2024 and 30 September 2024, including the effect of currency and interest rate swap agreements, was composed of 87% fixed-rate debt and 13% variable-rate debt.

The sensitivity analysis related to the interest rate risk on the fixed portion of our debt portfolio assumes an instantaneous 100 bp parallel move in interest rates from the level at 31 December 2024, with all other variables held constant. A 100 bp increase in market interest rates would result in a decrease of $977 and $1,035 in the net liability position of financial instruments at 31 December 2024 and 30 September 2024, respectively. A 100 bp decrease in market interest rates would result in an increase of $1,128 and $1,197 in the net liability position of financial instruments at 31 December 2024 and 30 September 2024, respectively.

There were no material changes to the sensitivity analysis related to the variable portion of our debt portfolio since 30 September 2024.

Foreign Currency Exchange Rate Risk

The sensitivity analysis related to foreign currency exchange rates assumes an instantaneous 10% change in the foreign currency exchange rates from their levels at 31 December 2024, with all other variables held constant. A 10% strengthening or weakening of the functional currency of an entity versus all other currencies would result in a decrease or increase, respectively, of $422 and $408 in the net liability position of financial instruments at 31 December 2024 and 30 September 2024, respectively.