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11 – Net financial result

Interest income

In EUR mn

 

 

 

2021

2020

Cash & cash equivalents

27

38

Discounted receivables

5

17

Other financial and non-financial assets

9

30

Loans

120

88

Other

(0)

3

Interest income

161

177

Interest income from other financial and non-financial assets in 2020 primarily contained late payment interest income in relation to successful arbitration in Romania and positive effects of discounting of receivables from the Romanian State.

Interest income from loans included EUR 92 mn (2020: EUR 84 mn) related to the Nord Stream 2 financing agreement and EUR 27 mn (2020: EUR 4 mn) related to loan agreement towards Bayport Polymers LLC. For further details see Note 18 – Financial assets.

Interest expenses

In EUR mn

 

 

 

2021

2020

Bonds

142

136

Lease liabilities

26

24

Other financial and non-financial liabilities

26

20

Provisions for decommissioning and restoration obligations

114

74

Provisions for jubilee payments, personnel reduction plans and other employee benefits

2

2

Provisions for pensions and severance payments

12

11

Provisions for onerous contracts

17

15

Other

8

5

Interest expenses, gross

348

287

Capitalized borrowing costs

(14)

(7)

Interest expenses

334

280

For further details on bonds see Note 24 – Liabilities.

For OMV Petrom SA the unwinding expenses for decommissioning provision are included net of the unwinding income for related Romanian State receivables. For further details see Note 18 – Financial assets.

Interest expenses on provisions for decommissioning and restoration obligations in 2021 were impacted by the negative reassessment effects of receivables from the Romanian State amounting to EUR 41 mn (2020: nil).

The interest expenses on pension provisions were netted against interest income on pension plan assets which amounted to EUR 5 mn (2020: EUR 5 mn).

Provisions for onerous contracts included the unwinding expenses for the Gate obligation and associated transportation commitments of OMV Gas Marketing & Trading GmbH. For further details see Note 23 – Provisions.

Capitalized borrowings costs applied to the carrying value of qualifying assets were mainly related to propane dehydrogenation plant under construction at the Borealis production site in Kallo, Belgium and oil and gas development assets in Norway.

Other financial income and expense

In EUR mn

 

 

 

2021

2020

Carrying amount of sold trade receivables

(9,348)

(5,212)

Proceeds on sold trade receivables

9,315

5,189

Financing charges for factoring and securitization

(33)

(24)

Net foreign exchange gains/(losses)

9

(53)

Other

(17)

(14)

Other financial income and expense

(40)

(91)

In 2020 net foreign exchange losses were predominantly impacted by RUB.

The position Other was mainly related to bank charges.

LNG
Liquefied Natural Gas