2008 Annual Report - SBM Offshore

134SBM Offshore Annual Report 2008 / Financial Statements 2008In US$000 Profit or loss Equity100 bp 100 bp 100 bp 100 bpincrease decrease increase decrease31 December 2008Variable rate instruments 468 (468) – –Interest rate swap (520) (183) 56,913 (60,685)Sensitivity (net) ( 52) (651) 56,913 (60,685)31 December 2007Variable rate instruments (127) 127 – –Interest rate swap (242) 242 60,083 (60,083)Sensitivity (net) (369) 369 60,083 (60,083)Credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financialinstrument fails to meet its contractual obligations, and arises principally from the Company’s tradeand other receivables (including committed transactions), derivative financial instruments and cashand cash equivalents.In US$000 2008 2007Assets Liabilities Assets LiabilitiesRatingAAA 967 49,966 54 12,068AA+ 16,985 32,065 846 966AA 8,047 11,680 26,337 27,147AA– 15,543 31,620 52,983 60,350A+ 1,437 135,298 4,974 699A 3,478 10,339 – –A– – – 62,223 69,868BBB+ – 26,546 – –BBB– 15,565 15,661 – –Other and intercompany 17,639 – 8,678 –Derivative financial instruments 79,661 313,175 156,095 171,098AAA 1,133 – 9,845 –AA+ 19,515 – 7,882 –AA 44,831 – 104,513 –AA– 89,887 – 131,537 6,596A+ 58,232 192 20,429 –A 3,876 – 118 –A– 44 – 1,163 –BBB 1,258 – – –BBB– 6,708 – – –BB– 624 – – –B+ 17 – – –Other 4,204 – 5,197 –Cash and cash equivalents andbank overdrafts 230,329 192 280,684 6,596It is Company policy to limit cash invested per counterparty as follows: A rating US$ 10.0 million,AA rating US$ 50 million and AAA rating US$ 100 million. Cash held in BBB- is held for debt servicing.