Derivative financial instruments

Customize annual report

The table below shows the fair value of derivative financial instruments:

At 31 December 2013

At 31 December 2012

Assets

Liabilities

Assets

Liabilities

Interest rate swap contracts

7

13

Currency swap contracts

107

1

71

Energy commodity contracts

232

162

174

131

CO2 emission rights

13

5

28

13

Total

245

281

203

228

Classification

Current

147

124

118

109

Non-current

98

157

85

119

Total

245

281

203

228

The table below shows the fair value of derivative financial instruments for which movements in fair value have been recognised through the income statement:

At 31 December 2013

At 31 December 2012

Assets

Liabilities

Assets

Liabilities

Currency swap contracts

1

Energy commodity contracts

161

149

119

106

CO2 emission rights

13

5

28

13

Total

174

154

148

119

Classification

Current

126

115

106

91

Non-current

48

39

42

28

Total

174

154

148

119

The table below shows the fair value of derivative financial instruments for which movements in fair value have been recognised in equity through the Cash flow hedge reserve:

At 31 December 2013

At 31 December 2012

Assets

Liabilities

Assets

Liabilities

Interest rate swap contracts

7

13

Currency swap contracts

107

71

Energy commodity contracts

71

13

55

25

Total

71

127

55

109

Classification

Current

21

9

12

18

Non-current

50

118

43

91

Total

71

127

55

109

These instruments are used in cash flow hedge transactions to hedge interest rate, currency and energy price risks.

The following hierarchy was used for the measurement of the financial instruments.

Level 1

Level 1 recognises financial instruments whose fair value is measured using unadjusted quoted prices in active markets for identical instruments.

Level 2

Level 2 recognises financial instruments whose fair value is measured using market prices or pricing statements and other available information. Where possible, the measurement method uses observable market prices. Level 2 energy commodity contracts are measured using market prices or pricing statements for periods in which an active market exists for the underlying commodities such as electricity, gas (title transfer facility), oil-related prices and emission rights. Other contracts are measured by agreement with the counterparty, using observable interest rate and foreign currency forward curves.

Level 3

Level 3 recognises financial instruments whose fair value is measured using calculations involving significant inputs that are not based on observable market data.

The hierarchy of derivative financial instruments measured at fair value at 31 December 2013 was as follows:

31 December 2013

Level 1

Level 2

Level 3

Total

Assets

Energy commodity contracts

41

204

245

Interest rate and currency swap contracts

41

204

245

Liabilities

Energy commodity contracts

4

163

167

Interest rate and currency swap contracts

114

114

4

277

281

31 December 2012

Level 1

Level 2

Level 3

Total

Assets

Energy commodity contracts

43

159

202

Interest rate and currency swap contracts

1

1

44

159

203

Liabilities

Energy commodity contracts

2

142

144

Interest rate and currency swap contracts

84

84

2

226

228

Note 24 presents the movements in the Cash flow hedge reserve.

The cash flow hedge instruments are derivative financial instruments that are subject to net settlement between parties. The table below shows the periods in which the cash flows from the cash flow hedges are expected to be realised:

At 31 December 2013

At 31 December 2012

Expected cash flow

Within 1 year

32

– 37

From 1 to 5 years

260

178

After 5 years

– 27

– 32

Total

265

109

The total cash flow hedges recognised through the income statement in the future are recognised in the Cash flow hedge reserve after deduction of taxes. The table below shows the periods in which the cash flows from the cash flow hedges are expected to be realised:

At 31 December 2013

At 31 December 20121

Expected recognition in result after tax

Within 1 year

– 5

– 3

From 1 to 5 years

– 5

– 9

After 5 years

– 22

– 40

Total

– 32

– 52

  1. 2012 figures restated for comparative purposes