Financial result and net income

  • Financial result considerably below, and net income slightly above, prior year
  • Earnings per share rise from €4.34 to €4.42

The financial result fell to minus €880 million in 2016, compared with minus €700 million in the previous year.

Income from shareholdings decreased from €9 million in 2015 to minus €17 million, predominantly due to lower income from the disposal of shareholdings.

The interest result declined from minus €425 million in 2015 to minus €482 million. This was predominantly from lower interest income, especially from investments in liquid funds, and higher interest expenses in connection with new bank loans outside of the eurozone.

Other financial result fell from minus €284 million in the previous year to minus €381 million in 2016, due mostly to the decline in interest payments capitalized as construction period interest and higher currency hedging costs.

Income before taxes and minority interests dipped from €5,548 million in 2015 to €5,395 million in 2016.

Income taxes were reduced from €1,247 million in 2015 to €1,140 million in 2016. At 21.1%, the tax rate was below the prior year’s level (22.5%) primarily as a result of currency-related deferred tax income in Norway, whereas the previous year had included currency-related deferred tax expenses.

Income before minority interests decreased from €4,301 million to €4,255 million. Minority interests amounted to €199 million, compared with €314 million in 2015.

At €4,056 million, net income exceeded the previous year’s level of €3,987 million. Earnings per share increased from €4.34 to €4.42.