|
NOTE 26
|
RISK MANAGEMENT - OPERATIONS
|
||||
|
Risk relating to the investment activities of Ferd is described in note 21.
|
|||||
|
Currency risk
|
|||||
|
Contracted currency flows from operations are normally secured in their entirety, while projected cash flows are hedged to a certain extent. Interest payments related to the Group's foreign currency loans are mostly secured by corresponding cash flows from the Group's activities. Instruments such as currency forward contracts, currency swaps and options can be used to manage Ferd Group's currency exposure.
|
|||||
|
Outstanding foreign exchange forward contracts
|
|||||
|
Currency
|
NOK
|
||||
|
NOK
|
Currency
|
Purchase
|
Sale
|
Purchase
|
Sale
|
|
CAD
|
5 818
|
- 19 829
|
32 601
|
- 111 118
|
|
|
CHF
|
3 579
|
- 604
|
21 822
|
- 3 681
|
|
|
EUR
|
43 155
|
- 111 091
|
317 620
|
- 817 632
|
|
|
JPY
|
3 053 200
|
- 944 710
|
197 535
|
- 61 120
|
|
|
NOK
|
336 339
|
- 84 533
|
336 339
|
- 84 533
|
|
|
RUB
|
- 224 950
|
- 41 191
|
|||
|
SEK
|
134 497
|
- 70 172
|
115 238
|
- 60 124
|
|
|
CZK
|
10 080
|
2 956
|
|||
|
GBP
|
- 3 661
|
- 33 039
|
|||
|
DKK
|
- 16 971
|
- 16 744
|
|||
|
ILS
|
5 454
|
8 153
|
|||
|
USD
|
42 695
|
- 9 683
|
238 059
|
- 53 991
|
|
|
Total
|
1 270 323
|
-1 283 173
|
|||
|
Interest rate risk
|
|||||
|
Ferd's interest rate risk relates to short-term borrowings and is managed by the Group's internal bank in accordance with separate guidelines. The Group has short-term fixed interest rates on long-term funding. This applies for loans in Norwegian kroner, as well as in foreign currency. The Group uses interest rate swaps to reduce interest rate exposure by switching from floating rates to fixed rates for a portion of the loans.
|
|||||
|
Interest rate swaps
|
|||||
|
NOK
|
Currency
|
Amount
|
Receives
|
Pays
|
Time remaining
to maturity
|
|
DKK
|
100 000
|
6M CIBOR
|
Fixed 2,97% - 4,15%
|
2,7 - 4,5 years
|
|
|
EUR
|
65 000
|
3M-6M EURIBOR
|
Fixed 1,25 - 2,88%
|
1,5 - 5,0 years
|
|
|
GBP
|
10 000
|
6M LIBOR
|
Fixed 2,46% - 3,12%
|
0,5 - 4,2 years
|
|
|
NOK
|
200 000
|
1M-6M NIBOR
|
Fixed 4,91% - 5,72%
|
1,6 - 3,0 years
|
|
|
RUB
|
160 000
|
3M MOSPRIME
|
1,0 year
|
||
|
SEK
|
50 000
|
3M STIBOR
|
4,0 years
|
||
|
The table includes derivatives for hedging.
|
|||||
|
Credit risk
|
|||||
|
Credit risk is the risk that a counterparty will default on his/her contractual obligations resulting in financial loss to the Group. Ferd has adopted a policy that the Group only shall be exposed to credit-worthy counterparties, and independent credit analyses are obtained for all counterparties when such analyses are available. If not, the Group uses other publicly available financial information and its own trade to assess creditworthiness.
|
|||||
© Copyright 2013 Ferd. All rights Reserved | Personvern
Design by Design Container AS | CMS by Snapper Net Solutions AS