Note 15 - Derivative Financial Instruments – Assets (Liabilities)

Parent company

Consolidated

12/31/2016

12/31/2015

(Amounts in USD 1,000)

12/31/2016

12/31/2015

Assets

Liabilities

Assets

Liabilities

-

-

Forward currency contracts - cash flow hedges

-

326

1,286

4,170

-

-

Interest rate swaps

-

214

106

2,021

-

-

Cross currency swaps

-

7,817

59

6,705

-

-

Total derivative financial instruments

-

8,358

1,451

12,896

Forward currency contracts

The nominal principal amount of the outstanding forward currency contracts on 31 December 2016 were USD 10.4 million (2015: 162.9 million) of which USD 8.6 million refers to USD/NOK contracts, USD 1.0 million refers to EUR/NOK contracts and USD 0.7 million refers to GBP/NOK contracts. The forward currency contracts have been entered into in order to hedge primarily operating expenses in foreign currencies.

For further information regarding profit and loss effect on forward currency contracts and currency options, please see Note 28.

Interest rate swaps

The nominal amounts of the outstanding interest rate swaps contracts on 31 December 2016 were USD 70.0 million (2015: USD 270.0 million ).

At 31 December 2016, the fixed rates vary from 1.13% to 2.10%. The floating rate leg of the interest rate swaps are LIBOR. Gains and losses are recognised in the profit and loss under financial expenses.

Cross currency swaps

Cross currency swaps have been entered into in order to hedge both interest and principal payments on long term debt financings denominated in other currencies than USD.

Board Of Directors

Financial Statements

Notes