6.3.15Other financial assets

The breakdown of the non current portion of other financial assets is as follows:

31 December 2015

31 December 2014

Non-current portion of other receivables

58

54

Corporate securities

30

29

Non-current portion of loans to joint ventures and associates

233

319

Total

321

402

The maximum exposure to credit risk at the reporting date is the carrying amount of the interest-bearing loans taking into account the risk of recoverability. The company does not hold any collateral as security.

Corporate Debt Securities

Corporate securities relate to :

  • Fixed-rate bonds issued by internationally known companies (such as banks), are quoted in liquid markets with fixed maturities, have bullet repayments at maturity and investment grade ratings at issuance. These instruments are classified as ‘held-to-maturity’ as the Company has the ability and intention to hold to maturity. Weighted average effective interest amounts to 3.6% (2014: 3.8%)
  • Other investments, such as equity shares, classified as available-for-sale and therefore measured at fair value through Other Comprehensive Income.

 

Loans to Joint Ventures and Associates

Notes

31 December 2015

31 December 2014

Current portion

6.3.18

66

121

Non-current portion

233

319

Total

6.3.33

299

441

Weighted average effective interest on interest-bearing loans to joint ventures and associates (including the current portion) amounts to 5.0% (2014 restated: 5.2%).

The decrease in loans to joint ventures and associates mainly relates to the repayment of a funding loan to the joint venture owning FPSO N’Goma whose construction was completed in 2014 and the repayment of a shareholder loan to the joint venture owning FPSO Kikeh.

The carrying amount of one of the loans to joint ventures and associates was partially impaired in 2014 (US$ 29 million) and remains impaired. In addition, the cumulative losses recognised using the equity method in excess of the Company’s investment in ordinary shares of two joint ventures represent US$ 96 million as of 31 December 2015 (2014: US$ 54million). It reduces the carrying amount of the loans provided to these joint ventures and associates.

Further information about the financial risk management objectives and policies, the carrying amount measurement and hedge accounting of financial derivatives instruments is included in Note 6.3.29 ‘Financial Instruments − carrying amounts and risk management’. The maximum exposure to credit risk at the reporting date is the carrying amount of the loans to joint ventures and associates taking into account the risk of recoverability. The company does not hold any collateral as security.