Financial Result and Income After Taxes

• Financial result slightly, net income considerably below previous year
• Earnings per share decline from €6.62 to €5.12

The financial result declined to minus €745 million in 2018, compared with minus €705 million in the previous year.

Net income from shareholdings decreased from minus €30 million in 2017 to minus €42 million, mainly as a result of higher expenses from loss transfer agreements.

The interest result declined from minus €315 million in 2017 to minus €366 million, mainly due to the increase in interest expenses from the higher level of financial indebtedness.

The other financial result amounted to minus €337 million, compared with minus €360 million in the previous year. This was largely attributable to the decrease in other financial expenses, primarily due to the lower net interest expense from pension plans.

Income before income taxes declined from €6,882 million in the previous year to €5,288 million in 2018. Income taxes decreased from €1,290 million in the previous year to €1,138 million in 2018. At 21.5%, the tax rate was above the prior-year level (18.7%), which included one-off deferred tax income in the total amount of €426 million from tax reforms, of which €379 million in the United States.

Income after taxes from continuing operations declined from €5,592 million to €4,150 million. Income after taxes from discontinued operations rose from €760 million to €829 million. This was mainly due to higher oil and gas prices as well as volumes growth in Norway and Russia. Overall, income after taxes declined from €6,352 million to €4,979 million.

At €272 million, noncontrolling interests were on a level with the previous year. Net income amounted to €4,707 million, considerably below the prior-year figure of €6,078 million. Earnings per share were €5.12, compared with €6.62 in 2017.