11.2.4.1 Sensitivity analysis: interest rate risk
Analysis of the Group’s sensitivity to interest rate risk as at December 31st 2021, assuming a +/- 0.36% change in interest rates
| Dec 31 2021 | Note | Carrying amount | Change | |
|---|---|---|---|---|
| +0.36% | -0.36% | |||
| Classes of financial instruments | ||||
| Financial assets | ||||
| Cash and cash equivalents | 10.7 | 2,572.1 | 9.3 | (9.3) |
| Other financial assets: | 328.2 | 1.2 | (1.2) | |
| Loans | 10.4 | 210.3 | 0.8 | (0.8) |
| Oil and Gas Extraction Facility Decommissioning Fund | 10.3 | 47.3 | 0.2 | (0.2) |
| Cash pledged as security for contractual obligations related to future asset decommissioning | 10.3 | 70.4 | 0.2 | (0.2) |
| Security deposits (margins) | 0.2 | 0.0 | (0.0) | |
| Total | 2,900.3 | 10.5 | (10.5) | |
| Financial liabilities | ||||
| Bank borrowings | 10.9.1 | 1,424.1 | 5.1 | (5.1) |
| Borrowings | 10.9.2 | 27.5 | 0.1 | (0.1) |
| Notes | 10.9.3 | 228.1 | 0.8 | (0.8) |
| Leases | 10.9.4 | 1,559.5 | 5.6 | (5.6) |
| Security deposit (margin) | 10.13 | 86.6 | 0.3 | (0.3) |
| Total | 3,325.8 | 11.9 | (11.9) | |
Analysis of the Group’s sensitivity to interest rate risk as at December 31st 2020, assuming a +/- 0.11% change in interest rates
| Dec 31 2020 | Note | Carrying amount | Change | |
|---|---|---|---|---|
| +0,11% | – 0,11% | |||
| Classes of financial instruments | ||||
| Financial assets | ||||
| Cash and cash equivalents | 10.7 | 2,145.6 | 2.4 | (2.4) |
| Other financial assets: | 323.5 | 0.3 | (0.3) | |
| Loans | 10.4 | 195.9 | 0.2 | (0.2) |
| Oil and Gas Extraction Facility Decommissioning Fund | 10.3 | 43.8 | 0.0 | (0.0) |
| Cash pledged as security for contractual obligations related to future asset decommissioning | 10.3 | 67.8 | 0.1 | (0.1) |
| Security deposits (margins) | 16.0 | 0.0 | (0.0) | |
| Total | 2,469.1 | 2.7 | (2.7) | |
| Financial liabilities | ||||
| Bank borrowings | 10.9.1 | 2,559.8 | 2.9 (1) | (2.9)(1) |
| Borrowings | 10.9.2 | 35.6 | 0.0 | (0.0) |
| Notes | 10.9.3 | 231.7 | 0.3 | (0.3) |
| Leases | 10.9.4 | 1,246.4 | 1.4 | (1.4) |
| Derivative financial instruments (2) | 10.11 | 8.2 | (0.4) | 0.4 |
| Total | 4,081.7 | 4.2 | (4.2) | |
(2) Interest rate swap (IRS). The difference between the change in the valuation amount, when the interest rate curve moves up or down 0.11%, arises at the time of calculating and discounting future cash flows (relating to the contract settlement) as at the valuation date. The cash flows are discounted at different interest rates (in the first case the interest rate curve movement increases the interest rate by 0.11%, in the second case it reduces the interest rate by 0.11%)..
The sensitivity analysis was performed for the instruments held as at December 31st 2021 and December 31st 2020. The effect of the interest rate changes on the fair value was examined assuming that the currency exchange rates remain unchanged. In the case of derivative instruments held as at December 31st 2021 and December 31st 2020, for the purpose of interest rate sensitivity analysis the interest rate curve was moved up or down by the historical annual volatility for December 31st 2021 and December 31st 2020, calculated based on historical volatility data for interest rates on interest rate swaps expiring in one year, as published by Reuters.