22 Financial expense (income)
Financial expense (income), with an amount of €176 million (€186 million in the first semester of 2015), can be analysed as follows:
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|
First half |
|
(millions of €) |
2015 |
2016 |
Financial expense (income) |
179 |
164 |
Financial expense |
182 |
164 |
Financial income |
(3) |
|
Other financial expense (income) |
7 |
10 |
Other financial expense |
11 |
14 |
Other financial income |
(4) |
(4) |
Losses (Gains) on hedging derivatives – ineffective portion |
|
|
Losses on derivative contracts |
|
2 |
|
186 |
176 |
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|
First half |
|||
(millions of €) |
2015 |
2016 |
||
|
||||
Financial expense (income) |
179 |
164 |
||
Expense on financial debt: |
196 |
173 |
||
- Interest and other expenses on bond loans |
179 |
160 |
||
- Fees on loans and bank credit lines |
9 |
7 |
||
- Interest expense on credit lines and loans due to banks and other lenders |
8 |
6 |
||
Financial expense capitalised |
(14) |
(9) |
||
Income from financial receivables |
(3) |
|
||
- Interest on financial receivables not held for operations |
(3) |
|
||
Other financial expense (income): |
7 |
10 |
||
- Accretion discount (*) |
6 |
7 |
||
- Other expenses |
5 |
7 |
||
- Financial receivables held for operations |
|
(1) |
||
- Other income |
(4) |
(3) |
||
Losses (Gains) on hedging derivatives – ineffective portion |
|
2 |
||
|
186 |
176 |
||
Expense on financial debt (€173 million) is related to: (i) interests and other expenses on bond loans (€160 million), referring essentially to interests on 15 bond loans; (ii) the portion attributable to the period of upfront fees on revolving credit lines (€4 million) and credit line non-usage fees (€3 million); and (iii) interests payable to banks on revolving credit lines, uncommitted credit lines and maturing loans with a total amount of 6 million Euro.
Financial expenses capitalised over the assets (€9 million) related to the portion of financial expense capitalised pursuant to investment activities.
Other financial expenses (income) (€10 million) mainly related to the financial expenses linked to the passage of time relating to the provision for dismantling and restoration in the storage and transportation sector (€5 million) and the employee’s benefit fund (€2 million).
The expenses from derivatives (€2 million) related to the effects connected to the recognition in the income statement of the degree of ineffectiveness arising from the valuation at fair value of derivative hedging instruments.
The reasons for the most significant changes are described in the “Financial review and other information” section of the Directors’ Interim Report.