7 – Financial result
|
|
2nd Quarter |
1st Half |
||
|---|---|---|---|---|---|
Million € |
|
2016 |
2015 |
2016 |
2015 |
Dividends and similar income |
|
18 |
23 |
19 |
33 |
Income from the disposal of shareholdings |
|
− |
13 |
1 |
21 |
Income from profit transfer agreements |
|
− |
1 |
1 |
3 |
Income from tax allocation to participating interests |
|
− |
1 |
− |
1 |
Income from other shareholdings |
|
18 |
38 |
21 |
58 |
Losses from loss transfer agreements |
|
(4) |
(4) |
(11) |
(6) |
Write-downs of / losses from the disposal of shareholdings |
|
− |
(7) |
− |
(23) |
Expenses from other shareholdings |
|
(4) |
(11) |
(11) |
(29) |
Net income from shareholdings |
|
14 |
27 |
10 |
29 |
Interest income from cash and cash equivalents |
|
42 |
50 |
84 |
101 |
Interest and dividend income from securities and loans |
|
8 |
6 |
13 |
13 |
Interest income |
|
50 |
56 |
97 |
114 |
Interest expenses |
|
(171) |
(171) |
(317) |
(335) |
Interest result |
|
(121) |
(115) |
(220) |
(221) |
Net interest income from overfunded pension plans and similar obligations |
|
1 |
− |
2 |
1 |
Net interest income from other long-term personnel obligations |
|
− |
− |
− |
− |
Income from capitalization of construction period interest |
|
23 |
36 |
48 |
78 |
Miscellaneous financial income |
|
− |
− |
− |
− |
Other financial income |
|
24 |
36 |
50 |
79 |
Write-downs on/losses from disposal of securities and loans |
|
− |
(2) |
(1) |
(3) |
Net interest expenses from underfunded pensions and similar obligations |
|
(45) |
(48) |
(88) |
(97) |
Net interest expense from other long-term personnel obligations |
|
(1) |
(1) |
(2) |
(4) |
Interest compounding on other noncurrent liabilities |
|
(11) |
(19) |
(21) |
(35) |
Miscellaneous financial expenses |
|
(37) |
(30) |
(93) |
(64) |
Other financial expenses |
|
(94) |
(100) |
(205) |
(203) |
Other financial result |
|
(70) |
(64) |
(155) |
(124) |
Financial result |
|
(177) |
(152) |
(365) |
(316) |
At €14 million and €10 million, respectively, net income from shareholdings in the second quarter of 2016 and in the first half of 2016 decreased by €13 million and by €19 million compared with the same periods of 2015. This was primarily attributable to the previous second quarter’s income from the disposal of shareholdings through the sale of Indaver N.V., Antwerp, Belgium.
The interest result fell by €6 million in the second quarter of 2016, from minus €115 million to minus €121 million, but rose by €1 million in the first half of 2016, from minus €221 million to minus €220 million. Compared with the second quarter and first half of 2015, interest income decreased largely on account of the lower interest rate level. The reduction in cumulated interest expense resulted mainly from more favorable refinancing conditions. Contrasting this was the addition to bank liabilities outside the eurozone in the second quarter of 2016.
Compared with the previous year, income from the capitalization of construction period interest was considerably lower as major investment projects either partly or fully began operations in 2015. These particularly included the TDI complex in Ludwigshafen, Germany; the production complex for acrylic acid and superabsorbents in Camaçari, Brazil; and the MDI plant in Chongqing, China.
The year-on-year decrease in net interest expense from underfunded pension plans was primarily the result of adjusted assumptions for the discount rate and projected pension increase.
The rise in other financial expenses was attributable in both the second quarter and first half of 2016 mostly to hedging costs from the hedging of loans in U.S. dollars.