4.3.9Net Financing Costs
|
2019 |
2018 |
||
|---|---|---|---|
|
Interest income on loans & receivables |
10 |
10 |
|
|
Interest income on investments |
10 |
19 |
|
|
Net foreign exchange gain |
10 |
17 |
|
|
Other financial income |
1 |
0 |
|
|
Financial income |
31 |
46 |
|
|
Interest expenses on financial liabilities at amortized cost |
(247) |
(223) |
|
|
Interest expenses on hedging derivatives |
(17) |
(36) |
|
|
Interest expenses on lease liabilities |
(6) |
(7) |
|
|
Interest addition to provisions |
(2) |
(14) |
|
|
Net loss on financial instruments at fair value through profit and loss |
(0) |
(0) |
|
|
Net cash flow hedges ineffectiveness |
(3) |
- |
|
|
Net foreign exchange loss |
0 |
(0) |
|
|
Financial expenses |
(274) |
(279) |
|
|
Net financing costs |
(243) |
(233) |
The increase in net financing costs is mainly due to the net foreign exchange gain compared to 2018. The 2018 gain resulted from an index-linked term deposit protecting the Company against Kwanza devaluation for its cash held in Angola.
The decrease in interest income on investments comes mainly from the lower amounts of cash available in 2019 at corporate level.
In 2019 the settlement with the Brazilian authorities and Petrobras is now recognized as a financial liability and impacts interest expenses on financial liabilities amortized at costs whereas it was a provision impacting interest addition to provisions in 2018. Its unwinding effect is lower in 2019.