Notes to the accounts
Parent company |
Consolidated |
||||||
12/31/2017 |
12/31/2016 |
(Amounts in USD 1,000) |
12/31/2017 |
12/31/2016 |
|||
Assets |
Liabilities |
Assets |
Liabilities |
||||
- |
- |
Forward currency contracts - cash flow hedges |
- |
187 |
- |
326 |
|
- |
- |
Interest rate swaps |
1,521 |
- |
- |
214 |
|
- |
- |
Cross currency swaps |
1,417 |
9,375 |
- |
7,817 |
|
- |
- |
Total derivative financial instruments |
2,938 |
9,562 |
- |
8,358 |
Forward currency contracts
The nominal principal amount of the outstanding forward currency contracts on December 31, 2017 were USD 3.9 million (2016: 10.4 million) of which USD 2.5 million refers to USD/NOK contracts, USD 1.4 million refers to EUR/NOK contracts. The forward currency contracts have been entered into in order to hedge primarily operating expenses in foreign currencies and committments related to vessels under construction.
Currency options
The group has no currency option contracts at the moment.For further information regarding profit and loss effect on forward currency contracts and currency options, please see Note 27.
Interest rate swaps
The nominal amounts of the outstanding interest rate swaps contracts on 31 December 2016 were USD 70.0 million (2015: USD 270.0 million ).
At 31 December 2016, the fixed rates vary from 1.13% to 2.10%. The floating rate leg of the interest rate swaps are LIBOR. Gains and losses are recognised in the profit and loss under financial expenses.
Cross currency swaps
Cross currency swaps have been entered into in order to hedge both interest and principal payments on long term debt financings denominated in other currencies than USD.