Odfjell SE Annual Report 2012

odfjell group
Derivative financial instruments recorded as assets/liabilities on the balance sheet:
(USD 1 000) 2012 2011
Bunkers 3 684 3 587
Currency 2 444 3 585
Shares 481 –
Interest rates (39 428) (43 448)
Held for sale (4 381) –
Derivative financial instruments (37 201) (36 276)
Hedging reserve recorded in statement of other comprehensive income
The table below shows fluctuations in the hedging reserve in the statement of other comprehensive income from cash flow hedges (see
Statement of other comprehensive income) divided between the different types of hedging contracts:
(USD 1 000)
Interest rate
swaps
Currency
exchange
contracts
Bunker
contracts
Total
hedging
reserve
Balance sheet as at 01.01.2011 (10 748) 3 543 11 690 4 485
Fluctuations during the period:
- Gains/losses due to changes in fair value (8 734) 3 985 83 (4 666)
- Transfers to net result (629) (6 368) (15 077) (22 074)
Balance sheet as at 31.12.2011 (20 111) 1 160 (3 305) (22 255)
Fluctuations during the period:
- Gains/losses due to changes in fair value 3 612 2 623 19 542 25 776
- Transfers to net result (157) (1 885) (12 553) (14 595)
Balance sheet as at 31.12.2012 (16 656) 1 898 3 683 (11 075)
Fair value of financial instruments
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. Derivative financial instruments and available-for-saleinvestments
are recorded in the balance sheet at the fair value at the balance sheet date. The fair value is obtained from active markets or
based on third party quotes. For cash and cash equivalents and current liabilities the carrying amount is considered to be the best estimate
of fair value of these instruments due to the short maturity date. Receivables are measured at nominal value reduced by any impairment.
Carrying amount is considered to be best estimate of fair value due to short maturity date and valid terms. Fair value of bonds is calculated
based on market values on the bonds.
The Group’s financial statement does not have any differences between fair value and carrying amount.
Fair value hierarchy
As at 31 December all financial instrument were valued at Level 2. Level 2 is defined where input is either directly or indirectly observable
for substantially the full term of the assets and liabilities.
Classification of financial assets and liabilities as at 31 December 2012:
Derivatives
held as hedge
instrument
Derivatives
held at fair
value over
the result
Loans and
receivables
Available
for sale
investments
Liabilities
recognised
at amortised
cost
Nonfinancial
assets/
liabilities
(USD 1 000)
Held for
sale
Total
2012
Assets
Cash and cash equivalents 17 335 – – 153 122 – – – 170 457
Available-for-sale-investments – – – – 16 734 – – 16 734
Derivative financial instruments – 6 610 – – – – – 6 610
Current receivables 6 281 – – 139 159 – – – 145 440
Non-current receivables 9 114 – – 50 614 – – – 59 728
Other non-financial assets 191 011 – – – – – 1 980 983 2 171 994
Total assets 223 741 6 610 – 342 896 16 734 – 1 980 983 2 570 965
Liabilities
Other current liabilities 13 018 - – – – 135 478 – 148 496
Derivative financial instruments 4 381 7 094 32 336 – – – – 43 811
Interest bearing debt 104 615 – – – – 1 220 841 – 1 325 456
Other non-current liabilities – – – – – 10 175 – 10 175
Other non-financial liabilities 6 887 – – – – – 88 235 95 121
Total liabilities 128 900 7 094 32 336 – – 1 366 494 88 235 1 623 058
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odfjell annual report 2012