The derivative financial instruments are measured at fair value. Although we hold these derivative financial instruments for risk management purposes, for practical reasons and given the relatively short term of the derivative financial instruments, we have not used the option of applying hedge accounting. Consequently, changes in fair value are recognised directly in profit or loss.

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.

We provide further information about derivative financial instruments in note ‎27 ‘Financial risk management’, note ‎34 ‘Financial income’ and note ‎35 ‘Financial expenses’.