24. Derivative financial instruments
The fair value of the derivative financial instruments was as follows:
| Assets | ||
|---|---|---|
| In millions of euros | 31 Dec. 2024 | 31 Dec. 2023 |
| Maturity < 1 year | ||
| Forward currency contracts measured at fair falue | 4.5 | 0.8 |
| Gas price swaps measured at fair value | - | - |
| Total | 4.5 | 0.8 |
| Maturity ≥ 1 year and ≤ 5 years | ||
| Forward currency contracts measured at fair falue | 2.5 | 6.1 |
| Gas price swaps measured at fair value | - | - |
| Total | 2.5 | 6.1 |
| Total derivative financial instruments | 7.0 | 6.9 |
| Liabilities | ||
|---|---|---|
| In millions of euros | 31 Dec. 2024 | 31 Dec. 2023 |
| Maturity < 1 year | ||
| Forward currency contracts measured at fair falue | 3.7 | 0.8 |
| Gas price swaps measured at fair value | 7.9 | 2.6 |
| Total | 11.6 | 3.4 |
| Maturity ≥ 1 year and ≤ 5 years | ||
| Forward currency contracts measured at fair falue | 2.5 | 6.1 |
| Gas price swaps measured at fair value | 8.4 | 16.6 |
| Total | 10.9 | 22.7 |
| Total derivative financial instruments | 22.5 | 26.1 |
The forward exchange contracts we have concluded mainly relate to the hedging of the currency risk on the costs of chartering two FSRUs (floating LNG terminals) by our joint venture EemsEnergyTerminal, which must pay these costs in US dollars. Because we do not consolidate the financial data relating to EemsEnergyTerminal, there is in principle a mismatch between the recognition of the hedged position in EemsEnergyTerminal (which is not included in the consolidated financial statements) and the hedging instruments Gasunie has concluded for EemsEnergyTerminal (which are included in the consolidated financial statements).
To mitigate this mismatch, Gasunie has concluded a supplementary agreement with EemsEnergyTerminal, based on which we fully offset the settled and outstanding forward exchange contracts that we have with our external counterparties with EemsEnergyTerminal. This supplementary agreement itself also qualifies as a derivative financial instrument. The effect is that the balance sheet shows two derivative positions that change in unison in opposite directions, meaning these derivative positions have, on balance, no effect on Gasunie’s consolidated result and both the derivative and the positions to be hedged are effectively recognised fully via EemsEnergyTerminal.
In addition, in 2024 we concluded several forward exchange contracts with our joint ventures for certain investment obligations, the value of which may vary according to the US dollar exchange rate. We concluded these forward exchange contracts to limit the cash flow risk on these capital expenditures. The value of these short-term foreign exchange contracts at year-end 2024 was € 0.8 million (year-end 2023: not applicable).
For more detailed information on gas price swaps see note 28 ‘Financial instruments’.
The derivative financial instruments are measured at fair value. Although we hold these derivative financial instruments for the purpose of risk hedging, for practical reasons and given the relatively short term of the derivative financial instruments, we have not used the option of applying hedge accounting. This means that we recognise changes in the value of these derivative financial instruments directly in profit and loss.
We provide further details of the derivative financial instruments in notes 28 ‘Financial instruments’, 35 ‘Financial income’ and 36 ‘Financial expenses’.