10 – Financial result

Million €

 

2014

2013

Dividends and similar income

 

52

44

Income from the disposal of shareholdings

 

245

20

Income from profit transfer agreements

 

5

8

Income from tax allocation to participating interests

 

1

2

Income from other shareholdings

 

303

74

Losses from loss transfer agreements

 

(9)

(18)

Write-downs on/losses from the sale of shareholdings

 

(16)

(52)

Expenses from other shareholdings

 

(25)

(70)

Interest income from cash and cash equivalents

 

178

140

Interest and dividend income from securities and loans

 

29

20

Interest income

 

207

160

Interest expenses

 

(711)

(688)

Net interest income from overfunded pensions and similar obligations

 

2

2

Income from the capitalization of borrowing costs

 

156

108

Miscellaneous financial income

 

128

Other financial income

 

158

238

Write-downs on/losses from the disposal of securities and loans

 

(2)

(4)

Net interest expenses from underfunded pensions and similar obligations

 

(151)

(192)

Net interest expense from other long-term personnel obligations

 

(22)

(8)

Interest compounding on other noncurrent liabilities

 

(75)

(70)

Miscellaneous financial expenses

 

(105)

Other financial expenses

 

(355)

(274)

Financial result

 

(423)

(560)

Compared with the previous year, income from the disposal of shareholdings inceased particularly due to income in the amount of €220 million from the disposal of the 15.79% share in VNG – Verbundnetz Gas AG, Leipzig, Germany.

The interest result improved by €24 million compared with the previous year. This was primarily attributable to higher interest income from interest and currency swaps to achieve a variable rate of interest on financial indebtedness. This was in part offset by the increase in interest expenses arising from bank loans.

Net interest expense from underfunded pension plans and similar obligations declined compared with the previous year, mainly as a result of the lower defined benefit obligation as of December 31, 2013.

Compared with the previous year, income from the capitalization of borrowing costs increased as a result of investment projects, such as the construction of the TDI plant in Ludwigshafen, Germany, the production complex for acrylic acid and superabsorbents in Camaçari, Brazil, the MDI plant in Chonqing, China, as well as oil and gas production facilities.

Miscellaneous financial expenses in 2014 predominantly included hedging costs from the hedging of loans denominated in U.S. dollars, as well as expenses from the market valuation of options for the disposal of BASF’s share in the Styrolution joint venture, which amounted to €42 million.

Miscellaneous financial income in 2013 included effects from the market valuation of options for the disposal of BASF’s share in the Styrolution joint venture amounting to €119 million.