Annual Report 2010 - SBM Offshore

The sensitivity on equity and income statement resulting
from a change of 10 percent of the US Dollar’s value
against the following currencies at 31 December would
have increased (decreased) profit or loss and equity by
the amounts shown below. This analysis assumes that
all other variables, in particular interest rates, remain
constant. The analysis is performed on the same basis
as for 2009.
in thousands of US$
Profit or loss Equity
10 percent
increase
10 percent
decrease
10 percent
increase
10 percent
decrease
31 DECEMBER 2010
EUR 1,888 (1,888) (13,871) 13,871
SGD 23 (23) (7,013) 7,013
BRL (1,595) 1,595 (2,966) 2,966
31 DECEMBER 2009
EUR (1,391) 1,391 (7,035) 7,035
SGD (376) 376 (217) 217
BRL (670) 670 (3,650) 3,650
Interest rate risk
The Company’s exposure to risk for changes in market
interest rates relates primarily to the Company’s
long-term debt obligations with a floating interest rate.
In respect of controlling interest rate risk, the floating
interest rates of long-term loans are hedged by fixed
rate swaps for the entire maturity period. The revolving
credit facility is intended for fluctuating needs of
construction financing of facilities and bears interest
at floating rates, which is also swapped for fixed rates
when exposure is significant.
Financial Review / Financial Statements 2010
SBM Offshore – Annual Report 2010 167