We have entered into lease contracts covering such matters as land and buildings, regional transmission pipelines, and company vehicles. We reserve these right-of-use assets for the company’s own use; there are no sub-leases involved. For a further explanation of the associated right-of-use assets see note ‎5 ‘Tangible fixed assets’.

The decrease in lease payments is mainly due to the change in the way in which EemsEnergyTerminal is recognised in the financial statements, as explained in note ‎1 ‘Significant matters and events’. Adjustments of lease contract variables concern interim adjustments of variables in the existing lease contracts that result in a change in the measurement of the contracts, such as expected or agreed lease terms and the size of lease payments (through indexation, for example).

In certain cases, lease terms are based on estimates. This is specifically the case for leases payable on leased land. While the land owned by third parties is generally leased for an indefinite period, we have the option to terminate the lease at short notice. We determined the most likely lease term by looking at the useful life of the asset, such as a pipeline or a plant, for which we lease that land.

The weighted average incremental borrowing rate in 2024 was 1.62% (2023: 2.14%). Lease contracts with a term of less than one year or with a contract value of less than € 5,000 are not included in the balance sheet. Both categories represented less than € 0.1 million per year at year-end 2024 (2023: the same).

The current part of the lease liabilities is presented separately under current liabilities. For more information on the nominal value of the future lease payments see the ‘Liquidity risk’ section of note ‎28 ‘Financial instruments’.