10 – Financial result
Million € |
|
2015 |
2014 |
|---|---|---|---|
Dividends and similar income |
|
47 |
52 |
Income from the disposal of shareholdings |
|
31 |
245 |
Income from profit transfer agreements |
|
2 |
5 |
Income from tax allocation to participating interests |
|
– |
1 |
Income from other shareholdings |
|
80 |
303 |
Losses from loss transfer agreements |
|
(16) |
(9) |
Write-downs on/losses from the sale of shareholdings |
|
(55) |
(16) |
Expenses from other shareholdings |
|
(71) |
(25) |
Interest income from cash and cash equivalents |
|
184 |
178 |
Interest and dividend income from securities and loans |
|
29 |
29 |
Interest income |
|
213 |
207 |
Interest expenses |
|
(638) |
(711) |
Net interest income from overfunded pension plans and similar obligations |
|
3 |
2 |
Income from the capitalization of borrowing costs |
|
149 |
156 |
Miscellaneous financial income |
|
– |
– |
Other financial income |
|
152 |
158 |
Write-downs on/losses from the disposal of securities and loans |
|
(18) |
(2) |
Net interest expense from underfunded pension plans and similar obligations |
|
(196) |
(151) |
Net interest expense from other long-term personnel obligations |
|
(3) |
(22) |
Interest compounding on other noncurrent liabilities |
|
(68) |
(75) |
Miscellaneous financial expenses |
|
(151) |
(105) |
Other financial expenses |
|
(436) |
(355) |
Financial result |
|
(700) |
(423) |
Income from shareholdings was €269 million lower in 2015 than in the previous year. In 2014, higher income from the disposal of shareholdings was reported, particularly €220 million from the disposal of the share in VNG – Verbundnetz Gas AG, Leipzig, Germany.
The interest result improved by €79 million compared with the previous year. This was primarily attributable to lower interest expenses as a result of more favorable refinancing conditions.
The net interest expense from underfunded pension plans and similar obligations increased compared with the previous year, mainly as a result of the higher defined benefit obligation as of December 31, 2014.
Compared with the previous year, income from the capitalization of borrowing costs slightly decreased as a result of the startup of major investment projects, particularly the TDI complex in Ludwigshafen, Germany; the production complex for acrylic acid and superabsorbents in Camaçari, Brazil; the MDI plant in Chongqing, China; and oil and gas production facilities.
Miscellaneous financial expenses in 2015 predominantly included hedging costs from the hedging of loans in U.S. dollars. In addition to expenses for hedging loans in U.S. dollars, the previous year had included an expense of €42 million for the market valuation of options for the disposal of shares in Styrolution. Effective as of November 17, 2014, BASF sold its share in Styrolution to the INEOS Group.