Consolidated interim financial statements
Condensed consolidated statement of financial position as at 30 June 2023
(before appropriation of result)
| In millions of euros | Notes | 30 June 2023 | 31 Dec. 2022 |
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| - tangible fixed assets | 4 | 9,566.7 | 9,457.0 |
| - investments in joint ventures | 5 | 412.4 | 372.3 |
| - investments in associates | 0.6 | 0.6 | |
| - other equity interests | 7.0 | 7.0 | |
| - deferred tax assets | 235.9 | 239.2 | |
| Total fixed assets | 10,222.6 | 10,076.1 | |
| Total current assets | 816.6 | 996.9 | |
| Assets held for sale | 5 | 53.7 | 32.2 |
| Total assets | 11,092.9 | 11,105.2 |
| In millions of euros | Notes | 30 June 2023 | 31 Dec. 2022 |
|---|---|---|---|
| Liabilities | |||
| Total equity | |||
| attributable to shareholder | 1 | 6,370.2 | 6,304.4 |
| Non-current liabilities | |||
| - interest-bearing loans | 6, 7 | 2,776.4 | 2,775.5 |
| - lease liabilities | 375.0 | 411.0 | |
| - contract liabilities | 2 | 99.0 | 60.7 |
| - deferred tax liabilities | 186.5 | 170.2 | |
| - other non-current liabilities and provisions | 182.2 | 183.2 | |
| - derivative financial instruments | 23.1 | 15.9 | |
| Total non-current liabilities | 3,642.2 | 3,616.5 | |
| Current liabilities | |||
| - current financing liabilities | 6 | 225.0 | 225.0 |
| - lease liabilities | 69.8 | 70.1 | |
| - trade payables, corporate income tax, other payables and contract liabilities | 785.7 | 889.2 | |
| Total current liabilities | 1,080.5 | 1,184.3 | |
| Total liabilities | 11,092.9 | 11,105.2 |
Condensed consolidated statement of profit and loss for the first half of 2023
| In millions of euros | Notes | First half-year of 2023 | First half-year of 2022 | ||
|---|---|---|---|---|---|
| Continuing operations | |||||
| Revenues | 2, 3 | 1,102.8 | 896.9 | ||
| Capitalised expenses | 47.6 | 32.6 | |||
| Personnel expenses and other operating expenses | -580.3 | -455.7 | |||
| Depreciation expenses | -210.4 | -167.0 | |||
| Total expenses | -743.1 | -590.1 | |||
| Operating result | 359.7 | 306.8 | |||
| Finance income and expenses | -30.5 | -20.1 | |||
| Share in result of joint ventures | 5 | 19.4 | 18.1 | ||
| Result before taxation | 348.6 | 304.8 | |||
| Income taxes | -82.5 | -77.3 | |||
| Result after taxation | 266.1 | 227.5 |
Consolidated statement of other comprehensive income for the first half of 2023
| In millions of euros | Notes | First half-year of 2023 | First half-year of 2022 | ||
|---|---|---|---|---|---|
| Result after taxation according to consolidated statement of profit and loss | 266.1 | 227.5 | |||
| Sum of actuarial gains and losses on employee benefits, | -2.3 | 29.8 | |||
| of which corporate income tax | 0.7 | -8.8 | |||
| Changes in other participating interests measured at fair value | 7 | - | -267.8 | ||
| Total of results taken to equity which will not be reclassified subsequently to profit and loss | -1.6 | -246.8 | |||
| Changes in the cash flow hedge reserve concerning joint ventures and associates | 5 | 1.4 | 14.0 | ||
| Total of results taken to equity which will be reclassified subsequently to profit and loss | 1.4 | 14.0 | |||
| Total comprehensive income for the year | 265.9 | -5.3 | |||
| Attributable to shareholder | 265.9 | -5.3 |
Consolidated statement of changes in equity for the first half of 2023
| In millions of euros | Share capital | Fair value reserve | Other reserves | Unappropriated result | Total |
|---|---|---|---|---|---|
| First half-year of 2023 | |||||
| Balance as at 1 January 2023 | 0.2 | -172.7 | 5,922.1 | 554.9 | 6,304.4 |
| Total of comprehensive income for the financial year | - | - | -0.2 | 266.1 | 265.9 |
| Dividend paid for 2022 | - | - | - | -200.0 | -200.0 |
| Added to other reserves | - | - | 354.9 | -354.9 | - |
| Balance as at 30 June 2023 | 0.2 | -172.7 | 6,276.8 | 266.1 | 6,370.2 |
| First half-year of 2022 | |||||
| Balance as at 1 January 2022 | 0.2 | 335.4 | 5,782.9 | 310.7 | 6,429.2 |
| Total of comprehensive income for the financial year | - | -267.8 | 35.0 | 227.5 | -5.3 |
| Dividend paid for 2021 | - | - | - | -217.5 | -217.5 |
| Added to other reserves | - | - | 93.2 | -93.2 | - |
| Balance as at 30 June 2022 | 0.2 | 67.6 | 5,911.1 | 227.5 | 6,206.2 |
Condensed consolidated cash flow statement for the first half of 2023
| In millions of euros | Notes | First half-year of 2023 | First half-year of 2022 | ||
|---|---|---|---|---|---|
| Cash flow from business operations | 669.3 | 799.7 | |||
| Net amount of interest paid and received, corporate income tax and dividends received | 5 | -124.3 | -57.3 | ||
| Cash flow from operating activities | 545.0 | 742.4 | |||
| Cash flow from investing activities | 4, 5 | -416.7 | -227.6 | ||
| Cash flow from financing activities | |||||
| Lease payments | -39.0 | -4.2 | |||
| Uptake of short-term financing | 215.0 | 1,035.1 | |||
| Repayment of short-term financing | -215.0 | -1,270.0 | |||
| Dividend paid | 1 | -200.0 | -217.5 | ||
| Cash flow from financing activities | -239.0 | -456.6 | |||
| Net cash flow for the financial year | -110.7 | 58.2 | |||
| Cash and cash equivalents at previous year-end | 435.9 | 38.3 | |||
| Effects of exchange rate changes on cash and cash equivalents | -0.2 | - | |||
| Cash and cash equivalents at year-end | 325.0 | 96.5 |
Notes to the condensed consolidated interim financial statements for 2023
General
Preparation of the interim financial statements
The 2023 interim financial statements were prepared by the Executive Board on 18 July 2023.
Reporting entity
N.V. Nederlandse Gasunie (hereinafter also ‘Gasunie’, ‘the company’ and ‘we’) is a European energy infrastructure company. The company is domiciled in Groningen, the Netherlands.
The company’s primary activity is to provide regulated transport services in the Netherlands and Germany. Alongside this, Gasunie is making extensive use of its infrastructure and knowledge for the further development and integration of alternative energy sources and carriers, such as hydrogen, heat and green gas, as well as the development of CCS. Gasunie is moreover involved in joint arrangements for pipelines that connect the Gasunie transmission network with markets outside the Netherlands. Gasunie also provides other energy infrastructure services, like for the storage of gas and LNG, and the certification of green gas and hydrogen.
The company is a public limited company and has its registered and actual office at Concourslaan 17, Groningen, the Netherlands, and is registered with the Dutch Chamber of Commerce under number 02029700. N.V. Nederlandse Gasunie is the ultimate parent of the group. All shares in N.V. Nederlandse Gasunie issued as at the balance sheet date are held by the Dutch State.
Reporting period
These condensed consolidated interim financial statements (hereinafter called ‘the interim financial statements’) relate to the first six months of the 2023 financial year, with 30 June 2023 being the balance sheet date.
Presentation and functional currency
We present the interim financial statements in euros, which is also the company’s functional currency. Unless otherwise specified, all amounts are in millions of euros.
Going concern
These interim financial statements have been prepared on a going concern basis.
Seasonal influence
Gasunie’s revenue and costs are not spread out evenly over the year, due to seasonal influences. The company’s core activity is the transmission of natural gas through the gas transport network. Revenues consist largely of the sale of the available transmission capacity and transmission-related services. Over the winter months, our customers book considerably more capacity than over the summer period. As a result, revenue is higher in the winter months than in the other months of the year. While a substantial part of the costs of network operations is fixed, another part is variable and depends on actual volumes of gas transmitted. Larger gas transmission volumes in the winter months lead to higher costs over those months compared to the other months of the year.
Management judgements and estimates
In preparing the interim financial statements, management has used estimates and assessments that could affect the assets and liabilities presented as at the balance sheet date and the result for the first six months of the financial year. The actual results may differ from these estimates. Management reviews the estimates and underlying assumptions on a periodic basis. We recognise revisions to estimates in the period in which the estimate is revised and in future periods affected by the review.
The effect of management’s judgements and estimates is significant for the:
- measurement and determination of the service life of fixed assets;
- measurement of other participating interests;
- measurement and determination of the provision for abandonment costs and redevelopment;
- measurement of deferred tax assets;
- measurement of pension obligations;
- measurement of derivative financial instruments;
- classification of equity interests.
In certain cases, developments in the area of the energy transition and tightened environmental and climate targets also affect the judgements and estimates as stated above. We take these developments into account in our judgements and estimates.
Basis for preparation
Statement of compliance
The interim financial statements capture the company’s periodic interim information and were prepared in compliance with IAS 34 ‘Interim Financial Reporting’, as adopted by the European Union. Since these interim financial statements do not contain all notes that are normally included in the financial statements for a full year, they must be read in conjunction with N.V. Nederlandse Gasunie’s 2022 consolidated financial statements.
The interim financial statements have not been audited or reviewed by an independent auditor.
Accounting policies for the consolidation, measurement of assets and liabilities and the determination of the results
The company prepares its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union. In this context, IFRS comprises the International Accounting Standards (IAS) published by the International Accounting Standards Board and the interpretations of IFRS and IAS published by the IFRS Interpretations Committee (IFRIC) and Standing Interpretations Committee (SIC) respectively.
The accounting policies used in preparing the 2023 interim financial statements are the same as those used to prepare the 2022 consolidated financial statements, except for the new and amended standards detailed in the next section.
New and amended standards for financial reporting
The following amendments to standards came into effect at the start of the 2023 financial year:
- Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies
- Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
- IFRS 17 Insurance Contracts; including Amendments to IFRS 17
- Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
- Amendments to IFRS 17 Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information.
Furthermore, the standards or amendments to them listed below are expected to become effective in the near future. EU endorsement has not yet been given for these standards:
- Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements
- Amendments to IAS 12 Income Taxes: International Tax Reform – Pillar Two Model Rules
- Amendments to IAS 1 Presentation of Financial Statements:
- Classification of Liabilities as Current or Non-current (including deferral of Effective Date)
- Non-current Liabilities with Covenants
- Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback.
An analysis by the company revealed that the already adopted standards and those still to be endorsed have or will have no material impact on the company’s equity and result and that there are no significant additional disclosures required. For that reason, the consequences of these amendments for the company have not been described in detail in these interim financial statements.
Further notes to the condensed consolidated financial statements
1. Significant matters and transactions in the first half of 2023
Acquisition of Uniper Ruhrgas BBL B.V.
Founded by Gasunie, Fluxys and Uniper (formerly Ruhrgas), BBL Company has been operating a gas pipeline between Balgzand in the Netherlands and Bacton in the United Kingdom since 2006. To fulfil conditions set under EU state aid law, Uniper was required to divest its 20% interest in BBL Company by the end of 2022. Under the contractual arrangement for BBL Company, Gasunie and co-owner Fluxys each have the option of exercising their pre-emptive right in the event that a co-owner wishes or is required to dispose of its interest.
Gasunie exercised this pre-emptive right early 2023 and as of May 2023 holds a 75.0% interest in BBL Company (year-end 2022: 60.0%). Fluxys holds the remaining 25.0% (year-end 2022: 20.0%). The carrying amount of the additional shares acquired comes out at around € 50.0 million. The impact on the consolidated result, the consolidated cash flows and the consolidated financial position is relatively limited.
Ruling on the GTS 2022-2026 methodology decision
On 4 July 2023 (thus after the balance sheet date of these interim financial statements), the Dutch Trade and Industry Appeals Tribunal ruled on the methodology decision for GTS for the current regulatory period (2022-2026). More information on this matter can be found in note 4 ‘Tangible fixed assets’.
Dividend payment and transactions with related parties
In the first half of 2023, Gasunie paid out € 200.0 million (first half of 2022: € 217.5 million) in dividend to its sole shareholder, the Dutch State. This was the appropriation of the result for the 2022 financial year following a decision by the General Meeting of 29 March 2023.
The nature of other transactions with related parties in the first half of 2023 is the same as reported in the 2022 consolidated financial statements. Transactions with related parties in the first half of 2023 were on an arm’s length basis.
2. Financial information by operating segment
Segmentation
We segment the financial information in line with the Group’s activities. The operating segments reflect the Group’s management structure and the business units. Gasunie differentiates between the following segments:
-
Gasunie Transport Services
This segment covers network operations in the Netherlands and is responsible for managing natural gas transmission, developing the natural gas network and related plants, and helping to facilitate a well functioning market.
-
Gasunie Deutschland
This segment covers network operations in Germany and is responsible for managing natural gas transmission, developing the natural gas network and related plants, and helping to facilitate a well functioning market.
-
Participations
This segment focuses on developing energy transition projects, utilising existing participating interests to the full and facilitating new gas flows to north-western Europe using an LNG connection and long-distance pipelines. This segment also includes a number of joint arrangements for pipelines that connect the Gasunie transport network with markets outside the Netherlands.
The accounting policies for measurement of assets and liabilities and the determination of the results of the operating segments used to prepare the 2023 interim financial statements are the same as the accounting policies used in preparing the 2022 consolidated financial statements.
The assets, revenue and results of a segment comprise items directly related to the segments and items that we can reasonably attribute to them. Because the financing of Gasunie mainly takes place at group level, liabilities are not segmented and so we do not report on these separately. Transactions between companies which belong to the segments are on arm’s length basis. Transactions between the segments have been eliminated in the financial information by operating segment.
Information on revenue and results by operating segment
Each operating segment’s revenue and result are as follows:
| In millions of euros | Net revenue | Result | ||
|---|---|---|---|---|
| First half-year of 2023 | First half-year of 2022 | First half-year of 2023 | First half-year of 2022 | |
| Operating segments | ||||
| - Gasunie Transport Services | 717.6 | 658.0 | 236.5 | 218.2 |
| - Gasunie Deutschland | 194.9 | 171.4 | 96.4 | 68.2 |
| - Participations | 263.1 | 121.3 | 26.7 | 20.4 |
| Inter-segment adjustments | -72.8 | -53.8 | - | - |
| Operating segments total | 1,102.8 | 896.9 | 359.6 | 306.8 |
| Unallocated financial income and expenses | -11.0 | -2.0 | ||
| Result before taxation | 348.6 | 304.8 | ||
| Income taxes | -82.5 | -77.3 | ||
| Revenue and result after taxation for the year | 1,102.8 | 896.9 | 266.1 | 227.5 |
Consolidated net revenue rose by 23.0% compared to the first half of 2022 (first half of 2022: increase of 25.1%). The increased revenue in the GTS segment can mainly be explained by the increase in transport tariffs. However, this did not lead to a correspondingly higher result given that network and energy costs and personnel expenses also increased. The revenue of the Gasunie Deutschland segment was also up thanks to higher transport tariffs. The activities of EemsEnergyTerminal had a significant impact on the revenue of the Participations segment. Because this terminal was only commissioned in the second half of 2022, it was not yet contributing to net revenue in the first half of that year. The payment schedule for certain EemsEnergyTerminal contracts is not synchronous with the way in which we are required to allocate revenues to the financial years. This is also the main explanation for the increase in the contract liabilities recognised in the balance sheet as at 30 June 2023.
Inter-segment services represented a total value of € 72.8 million in the first half of 2023 (first half of 2022: € 53.8 million). During the first half of 2023, the Gasunie Transport Services segment provided inter-segment services to the value of € 32.6 million (first half of 2022: € 18.8 million), the Gasunie Deutschland segment provided inter-segment services to the value of € 0.3 million (first half of 2022: € 0.1 million) and the Participations segment provided inter-segment services to the value of € 40 million (first half of 2022: € 34.9 million).
Information on assets by operating segment
Each operating segment’s assets are as follows:
| In millions of euros | Assets | |
|---|---|---|
| 30 June 2023 | 31 Dec. 2022 | |
| Operating segments | ||
| - Gasunie Transport Services | 6,547.4 | 6,573.9 |
| - Gasunie Deutschland | 1,635.3 | 1,560.8 |
| - Participations | 1,857.7 | 1,734.4 |
| Operating segments total | 10,040.4 | 9,869.1 |
| Unallocated assets | 1,052.5 | 1,236.1 |
| Total consolidated assets | 11,092.9 | 11,105.2 |
Unallocated assets comprise deferred tax assets and current assets. Assets held for sale are recognised under the Participations segment. The main investments are described in note 4 ‘Tangible fixed assets’.
3. Revenue recognition
In addition to note 2 ‘Financial information by operating segment’, the following will provide further details and analysis of revenue.
Information about operating activities
The company categorises its revenues according to the way in which economic factors influence the nature, amount, timing and uncertainty of the cash flows. A distinction can be made between two categories in the case of Gasunie. The first revenue stream is revenue from regulated transmission and related services, as generated by the Gasunie Transport Services and Gasunie Deutschland business units. The Dutch and German regulatory authorities set the permitted income for this revenue stream for the long term.
The second revenue stream is generated through non-regulated services and/or those exempt from regulation. The market determines the income for these services based on supply and demand and it is generally subject to greater volatility in revenue compared to the regulated services. Our Participations business unit generates almost the entire revenue from the non-regulated services and/or those exempt from regulation.
Revenue for each operating activity is as follows:
| In millions of euros | Net revenue | |
|---|---|---|
| First half-year of 2023 | First half-year of 2022 | |
| Regulated services | 862.1 | 786.6 |
| Non-regulated and/or exempt services | 240.7 | 110.3 |
| Total net revenue | 1,102.8 | 896.9 |
The increase in revenue from non-regulated services and/or those exempt from regulation is mainly explained by the commissioning of the EemsEnergyTerminal. Because this terminal was only commissioned in the second half of 2022, it was not yet contributing to net revenue in the first half of that year.
Information on products and services
Looking at revenue, we can divide this into revenue from gas transport and related services and from other activities. Gas transport and related services covers revenue from regulated gas transport and from non-regulated and/or exempt gas transport. Other activities include revenue from gas storage, LNG import and regasification, and other services to third parties.
The breakdown is as follows:
| In millions of euros | Net revenue | |
|---|---|---|
| First half-year of 2023 | First half-year of 2022 | |
| Gas transport and related services | 927.9 | 849.2 |
| Other services | 174.9 | 47.7 |
| Total net revenue | 1,102.8 | 896.9 |
The increase in revenue from other activities is mainly attributable to the commissioning of the EemsEnergyTerminal, as explained above.
Geographical information
We determine revenue per geographical area based on the area where the activities take place (in or outside the Netherlands). The geographical distribution of the revenue is as follows:
| In millions of euros | Net revenue | |
|---|---|---|
| First half-year of 2023 | First half-year of 2022 | |
| Netherlands | 838.1 | 675.1 |
| Outside the Netherlands | 264.7 | 221.8 |
| Total net revenue | 1,102.8 | 896.9 |
4. Tangible fixed assets
Investments
Investments in tangible fixed assets in the first half of 2023, not including additions on account of right-of-use assets, represented a total value of € 269.6 million (first half of 2022: € 132.5 million). The investments mainly relate to the construction of GTS’ nitrogen installation in Zuidbroek, the development of EemsEnergyTerminal in the port of Eemshaven and to the investments relating to the conditional investment commitments described below.
Gasunie entered into conditional investment commitments to the tune of € 248.0 million as of 30 June 2023 (year-end 2022: € 120.3 million). The commitments in the Netherlands mainly relate to investments in WarmtelinQ and commitments on behalf of Porthos. In Germany, the commitments mainly concern the construction of connector pipelines for the LNG terminals in Stade and Brunsbüttel.
Investments in right-of-use assets represented a total value of € 1.7 million (first half of 2022: € 77.7 million). The figure for investments was considerably higher in the first half of 2022 as a result of substantial lease liabilities in Eemshaven relating to EemsEnergyTerminal operations.
Impairment of fixed assets
At regular intervals, management determines whether there is any incidence or indication of impairment of fixed assets. The following will provide further analysis of impairment tests for each significant cash-generating unit.
Gas transport network in the Netherlands
At the end of 2022, we reviewed the value in use of the gas transport network in the Netherlands. From this value-in-use calculation, we determined that the recoverable amount of the gas transport network in the Netherlands is virtually the same as its carrying amount. The valuation of the gas transport network in the Netherlands partly depends on the company’s regulated income. In early 2022, Gasunie’s group company GTS B.V. and market parties separately filed appeals with the Dutch Trade and Industry Appeals Tribunal against ACM’s methodology decision for GTS for the current regulatory period (2022-2026). GTS’s objections relate to the robustness of the benchmark analysis, including how static efficiency is determined, how the regulated return is determined, and the regime of offsetting energy procurement costs in future tariffs. The objections of the market parties concerned in particular no longer being able to charge for inactive network components, the use of a declining balance depreciation model, and the application of a nominal WACC.
The Tribunal considered the grounds of the appeal at the end of 2022 and published its final ruling on 4 July 2023. In a general sense, on virtually all points the Tribunal ruled in favour of GTS and, again on virtually all points, against the market parties. The Tribunal concluded that ACM should adjust the methodology decision on a number of points and annulled the current GTS 2022-2026 methodology decision. The Tribunal has given ACM six months to comply. In the second half of 2023, we expect more clarity on the new methodology decision and its effects on future cash flows and thus the valuation of our gas transport network.
Gas transport network in Germany
At the end of 2022, we reviewed the value in use of the gas transport network in Germany. Based on the value-in-use calculation, we reduced the carrying amount of the gas transport network in Germany by around € 117 million at year-end 2022. There was no evidence of any other facts or circumstances in the first six months of 2023 which provided significantly different information about the assumptions and estimates as at year-end 2022. This also applies to the determination of the general efficiency factor (‘X-gen’), as explained below.
Early in 2022, German regulator BNetzA started on the evaluation of a new general efficiency factor (‘X-gen’) that will apply to all network operators in the 2023-2027 regulatory period. BNetzA requested all relevant data from the German network operators so that it can determine the parameters for the efficiency model. However, final decision-making on the level of the X-gen has been delayed and we do not expect it now until the second half of 2023 or in 2024. For the year-end 2022 value-in-use calculation and in preparing the 2023 interim financial statements, we have assumed an X-gen of 0.49%, i.e. the same as the X-gen for the previous regulatory period (2018-2022).
BBL Company
At the end of 2022, we reviewed the valuation of our (then) 60% share in the BBL interconnector and, based on the value-in-use calculation, we reduced the carrying amount by around € 50 million for year-end 2022. There was no evidence of any other facts or circumstances in the first six months of 2023 which provided significantly different information about the assumptions and estimates as at year-end 2022.
EemsEnergyTerminal
Management’s assessment has not revealed any incidence or indication of an impairment of EemsEnergyTerminal’s tangible fixed assets as at 30 June 2023.
EnergyStock
Management’s assessment has not revealed any incidence or indication of an impairment of EnergyStock’s tangible fixed assets as at 30 June 2023.
Other tangible and financial fixed assets
Management’s assessment has not revealed any incidence or indication of an impairment of other tangible and financial fixed assets as at 30 June 2023.
5. Investments in joint ventures
Joint ventures
The movements in joint ventures over the first half of 2023 were as follows:
| In millions of euros | First half-year of 2023 | 2022 |
|---|---|---|
| Balance as at 1 January | 371.9 | 284.0 |
| Investments | 60.8 | 90.0 |
| Changes in equity | 1.4 | 23.7 |
| Result from joint ventures | 19.4 | 42.3 |
| Impairments | - | -8.0 |
| Dividend received | -20.0 | -27.9 |
| Transferred to 'assets held for sale' | -21.5 | -32.2 |
| Closing balance as at 30 June and 31 December respectively | 412.0 | 371.9 |
| Loans to joint ventures | 0.4 | 0.4 |
| Total investments in joint ventures as at 30 June and 31 December respectively | 412.4 | 372.3 |
The main investments in the first half of 2023 relate to Porthos (a project to store CO2 produced by industry at the Port of Rotterdam in an empty gas field below the North Sea bed) and German LNG (a project to build a permanent LNG terminal in Brunsbüttel, Germany).
In 2022, Gasunie acquired all shares in German LNG from the former shareholders Royal Vopak and Oiltanking. Gasunie has signed a declaration of intent with Kreditanstalt für Wiederaufbau (KfW, on behalf of the German government) and RWE for the construction of an LNG terminal. Gasunie is the envisioned operator of the terminal and plans to transfer the majority of its shares to KfW and RWE in the second half of 2023 – pending the results of EU state aid assessments – with the result that the three parties will again have joint control of the entity after the share transfer. Given that Gasunie did not obtain full control of German LNG, the remaining shareholding still qualifies as a joint venture, and measurement based on the equity method has been maintained. We have added the movement in the carrying amount of the shareholding to be transferred to assets held for sale.
The direct movements in equity relate to the remeasurement of the interest in Gate terminal as a consequence of the change in fair value of one of Gate terminal’s cash flow hedges. Gasunie has recognised this change in equity in other comprehensive income.
6. Interest-bearing loans
On 30 June 2023, the nominal amount of € 3,015.0 million (year-end 2022: € 3,015.0 million) in non-current loans comprised € 2,250.0 million (year-end 2022: € 2,250.0 million) in bond loans and € 765.0 million (year-end 2022: € 765.0 million) in private loans. The transaction costs and discount still to be amortised amounted to € 13.6 million (year-end 2022: € 14.5 million).
Movements in interest-bearing loans are as follows:
| In millions of euros | First half-year of 2023 | 2022 |
|---|---|---|
| Principal amount as at 1 January | 3,015.0 | 3,140.0 |
| Total repayments as at 1 January | - | -130.8 |
| Remaining principal amount as at 1 January | 3,015.0 | 3,009.2 |
| Costs and discounts on loans to be amortised | -14.5 | -9.0 |
| Balance as at 1 January | 3,000.5 | 3,000.2 |
| Movements in the first half-year and the financial year respectively | ||
| Repayments | - | -494.2 |
| Loans and bonds issued | - | 500.0 |
| Amortisation of costs and discounts on loans | 0.9 | 1.5 |
| Addition of costs and discounts | - | -6.9 |
| Total movements in the first half-year and the financial year respectively | 0.9 | 0.3 |
| Principal amount as at 30 June and 31 December respectively | 3,015.0 | 3,015.0 |
| Total repayment as at 30 June and 31 December respectively | - | - |
| Remaining principal amount as at 30 June and 31 December respectively | 3,015.0 | 3,015.0 |
| Costs and discounts on loans to be amortised | -13.6 | -14.5 |
| Balance as at 30 June and 31 December respectively | 3,001.4 | 3,000.5 |
| Included under current liabilities | -225.0 | -225.0 |
| Total | 2,776.4 | 2,775.5 |
We did not repay or draw on any interest-bearing loans in the first half of 2023 (first half of 2022: the same).
N.V. Nederlandse Gasunie provided no security to its credit providers for the interest-bearing loans or other facilities. The existing loan conditions remained unchanged compared to year-end 2022. The repayment schedule is as follows:
| In millions of euros | First half-year | Second half-year | Total |
|---|---|---|---|
| Repayment in | |||
| 2023 | 225.0 | 225.0 | |
| 2024 | - | 175.0 | 175.0 |
| 2025 | - | 125.0 | 125.0 |
| 2026 | 650.0 | - | 650.0 |
| 2027 | - | - | - |
| after 2027 | 1,840.0 | ||
| Total repayment obligations | 3,015.0 |
The company has a non-committed overdraft facility of € 45.0 million (year-end 2022: € 45.0 million), a committed credit facility of € 600.0 million (year-end 2022: € 600.0 million), a € 750.0 million Euro Commercial Paper (ECP) programme (year-end 2022: € 750.0 million) and a € 7.5 billion Euro Medium Term Note (EMTN) programme (year-end 2022: € 7.5 billion). The committed credit facility runs until April 2027. Over the past six months, no funds have been drawn on the committed credit facility or under the ECP programme (first half of 2022: the same). However, as part of its normal operational activities, Gasunie has regularly raised short-term loans on the money market in the form of deposit loans. As of 30 June 2023, we had not taken any deposits or issued ECP with terms of less than one year (year-end 2022: the same).
Under the EMTN programme, € 2,250.0 million was issued in loans as at 30 June 2023 (year-end 2022: € 2,250.0 million). The base prospectus of the EMTN programme was valid until 17 June 2023 and is expected to be updated in the second half of 2023.
The long and short-term credit ratings by S&P and Moody’s did not change over the first half of 2023.
7. Financial instruments
In these interim financial statements, the following financial instruments are recognised:
- Other participating interests
- Derivative financial instruments
- Interest-bearing loans
- Other primary financial instruments
Gasunie uses the following hierarchy of measurement methods to determine the fair value of financial instruments:
| Level 1: | Based on quoted prices on active markets for the same instrument. |
| Level 2: | Based on prices on active markets for comparable instruments, or based on other valuation methods, with all required key data being derived directly or indirectly from publicly available market information. |
| Level 3: | Based on measurement methods, with all the required key data not being derived from publicly available market information. |
Other participating interests
The other participating interests are as follows:
| Company name | Registered office | Interest | |
|---|---|---|---|
| 30 June 2023 | 31 Dec. 2022 | ||
| Energie Data Services Nederland (EDSN) B.V. | Arnhem | 12.5% | 12.5% |
| Nord Stream AG | Zug, Switzerland | 9.0% | 9.0% |
| PRISMA European Capacity Platform GmbH | Leipzig, Germany | 12.7% | 12.7% |
| SCW Systems B.V. | Schoorl | 4.9% | 4.9% |
The fair value of the other participating interests was € 7.0 million as at 30 June 2023 (year-end 2022: € 7.0 million). This is a level-3 fair value measurement (year-end 2022: level-3). The assumption for the interests in PRISMA, EDSN and SCW Systems is that, partly on account of their relatively small size, the carrying amount is an estimate of the fair value. For Nord Stream, we maintain our fair value measurement of € zero as at 30 June 2023 (year-end 2022: € zero). In the first half of 2023, regarding the valuation of our interest in Nord Stream, no facts or circumstances have come to our attention which provided significantly different information about the assumptions and estimates as at year-end 2022.
Derivative financial instruments
The derivative financial instruments are forward exchange contracts and a gas price swap. We use the forward exchange contracts to hedge the currency risk on the lease of two floating storage and regasification units (FSRUs). We are required to pay the costs of the lease of these FSRUs in US dollars. Gasunie has entered into investment obligations in a joint venture, the amount of which may vary depending on gas price developments. To limit the cash flow risk on these expected capital expenditures, we use a gas price swap, this way effectively fixing the future variable investment obligation – in terms of our share in the joint venture – over the term of the investment obligation (until 31 December 2027).
We determine the fair value of the forward exchange contracts based on the present value of projected future cash flows. For this purpose, we make use of forward exchange rates with a comparable term and a zero-coupon discount rate that matches the currency and the term of the transactions, taking into account Gasunie’s credit risk and that of the relevant counterparties. This is a level-2 fair value measurement (year-end 2022: level-2). As at 30 June 2023, the fair value of the forward exchange contracts was € 4.8 million negative (year-end 2022: € 0.5 million negative).
We determine the fair value of the gas price swap based on the present value of quoted commodity prices for gas price swaps. For this purpose, we made use of the closing prices for gas forward products with a comparable term and a zero-coupon discount rate that matches the currency and the term of the transactions, taking into account Gasunie’s credit risk and that of the relevant counterparties. This is a level-2 fair value measurement (year-end 2022: level-2). As at 30 June 2023, the fair value of the gas price swap was € 18.3 million negative (year-end 2022: € 15.4 million negative).
The carrying amount of the current part of the derivative financial instruments as at 30 June 2023 was € 4.8 million negative (year-end 2022: € 1.8 million negative). We have not presented this amount separately under current liabilities.
Interest-bearing loans
The interest-bearing loans comprise bond loans with a listing on the Amsterdam stock exchange, and private loans.
The fair value of listed bonds is the same as the year-end exit price. This concerns a level-1 fair value measurement (year-end 2022: level-1). The fair value of the private loans has been determined by calculating the present value of the expected future cash flows at a discount rate equal to the applicable risk-free market interest for the remaining term, plus credit and liquidity surcharges. Account has been taken of the company’s risk profile. This concerns fair value measurement according to level 2 (year-end 2022: level 2).
The carrying amount and the fair value of the interest-bearing loans as at 30 June 2023 were:
| In millions of euros | 30 June 2023 | 31 Dec. 2022 | ||||
|---|---|---|---|---|---|---|
| Carrying amount | Fair value | Difference | Carrying amount | Fair value | Difference | |
| Bonds | 2,236.4 | 1,943.8 | -292.6 | 2,235.5 | 1,899.1 | -336.4 |
| Private loans | 765.0 | 723.0 | -42.0 | 765.0 | 723.8 | -41.2 |
| Total interest-bearing loans | 3,001.4 | 2,666.8 | -334.6 | 3,000.5 | 2,622.9 | -377.6 |
Other primary financial instruments
Other primary financial instruments comprise trade and other receivables, cash and cash equivalents, current financing liabilities (excluding current repayment obligations on non-current loans), trade and other payables. Given the short term of these instruments, their carrying amount approximates their fair value.
The balance of cash and cash equivalents as part of current assets was € 325.0 million as at 30 June 2023 (year-end 2022: € 435.9 million).
8. Events after the balance sheet date
On 4 July 2023, the Dutch Trade and Industry Appeals Tribunal ruled on the methodology decision for GTS for the current regulatory period (2022-2026). More information on this matter can be found in note 4 ‘Tangible fixed assets’.
No further significant events occurred between the balance sheet date and the date of these interim financial statements that should be recognised or noted in the interim financial statements.
