4.3.9Net Financing Costs

2018

2017

Interest income on loans & receivables

10

9

Interest income on investments

19

13

Net foreign exchange gain

17

3

Other financial income

0

2

Financial income

46

27

Interest expenses on financial liabilities at amortized cost

(223)

(231)

Interest expenses on hedging derivatives

(36)

(88)

Interest expenses on lease liabilities

(7)

-

Interest addition to provisions

(14)

(23)

Net loss on financial instruments at fair value through profit and loss

0

-

Net cash flow hedges ineffectiveness

-

(17)

Net foreign exchange loss

0

0

Impairment of financial assets

0

0

Other financial expenses

-

-

Financial expenses

(279)

(358)

Net financing costs

(233)

(331)

The increase in net foreign exchange gain results from an index-linked term deposit protecting the Company against Kwanza devaluation for its cash held in Angola. 

The decrease in net financing costs is mainly due to the reduction of interest expenses related to the Turritella (FPSO) project loan, including hedging derivatives. The loan was repaid on January 16, 2018 after the receipt of the purchase price from Shell.

The interest addition to provisions is mainly due to the unwinding of the discounting impact on the provision and liability for settlement with the Brazilian authorities and Petrobras.