8 – Net Income from Shareholdings and Financial Result

Net income from shareholdings (Million €)

 

H1

 

2021

2020

Income from non-integral companies accounted for using the equity method

73

–941

Dividends and similar income

11

2

Income from the disposal of / write-up of shareholdings

20

Income from other shareholdings

11

22

Expenses from loss transfer agreements

–29

–26

Write-downs on / losses from the sale of shareholdings

–31

–11

Expenses from other shareholdings

–60

–37

Net income from shareholdings

24

–956

Net income from shareholdings improved from –€956 million in the first half of 2020 to €24 million in the first half of 2021 due mainly to the earnings contribution of Wintershall Dea GmbH, Kassel/Hamburg, Germany. Net income from shareholdings had been negatively affected in the first half of 2020 by an impairment of assets of Wintershall Dea in the amount of €819 million. Increased oil and gas prices contributed to the improvement in income in the first half of 2021.

Financial result (Million €)

 

H1

 

2021

2020

Interest income from cash and cash equivalents

76

74

Interest and dividend income from securities and loans

3

9

Interest income

79

83

Interest expenses

–236

–293

Interest result

–157

–210

 

 

 

Reversals of write-downs on / income from securities and loans

10

3

Net interest income from overfunded pension plans and similar obligations

Income from the capitalization of borrowing costs

13

15

Interest income on income taxes

4

1

Miscellaneous financial income

54

Other financial income

27

73

Write-downs on / losses from securities and loans

–2

–56

Net interest expense from underfunded pension plans and similar obligations

–40

–54

Net interest expense from other long-term personnel obligations

Unwinding the discount on other noncurrent liabilities

–4

–3

Interest expenses on income taxes

–1

–24

Miscellaneous financial expenses

–38

–8

Other financial expenses

–85

–145

Other financial result

–58

–72

 

 

 

Financial result

–215

–282

The net interest expense from underfunded pension plans and similar obligations declined year on year as a result of the lower interest rate used to determine expenses for pension obligations.

The decline in miscellaneous financial income was primarily due to lower gains on hedging bonds and commercial paper against interest and currency risks.