4.3.9Net Financing Costs
|
2021 |
2020 |
||
|---|---|---|---|
|
Interest income on loans & receivables |
1 |
3 |
|
|
Interest income on investments |
1 |
3 |
|
|
Net foreign exchange gain |
- |
2 |
|
|
Other financial income |
1 |
1 |
|
|
Financial income |
3 |
9 |
|
|
Interest expenses on financial liabilities at amortized cost |
(202) |
(181) |
|
|
Interest expenses on hedging derivatives |
(99) |
(76) |
|
|
Interest expenses on lease liabilities |
(2) |
(5) |
|
|
Interest addition to provisions |
(1) |
(1) |
|
|
Net cash flow hedges ineffectiveness |
- |
(3) |
|
|
Other financial expenses |
0 |
(0) |
|
|
Financial expenses |
(304) |
(265) |
|
|
Net financing costs |
(301) |
(257) |
The increase in net financing costs is mainly due to: (i) higher interest expenses as a result of the Company's new project financing obtained for projects under construction, namely project financing of FPSO Sepetiba and Prosperity (FPSO), as well as bridge loan for FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão, and (ii) refinancing of FPSO Cidade de Ilhabela through non-recourse senior secured notes transaction. Additionally the Company incurred in 2021 one-off additional financial expenses mostly related to FPSO Cidade de Ilhabela refinancing.