Investor Presentaiton
96
A.P. Moller-Maersk Annual Report 2020
Financials
Consolidated financial statements
Notes index
Note 16 Financial instruments and risks - continued
Table 16.7
Borrowings by interest rate levels
inclusive of interest rate swaps
2020
0-3%
3-6%
6%-
Total
Of which:
Carrying amount
Next interest rate fixing
Table 16.8
Oil price risk
0-1 year
2-4 years
5-years
4,560
4,381
9,902
884
-208
4,648
911
117
250
15,373
5,382
4,690
Bearing fixed interest
11,580
Bearing floating interest
3,793
2019
0-3%
3-6%
6%-
Total
Of which:
387
4,370
544
5,301
487
4,283
The majority of the Group's trading of commodity prod-
ucts is related to inventory stocks of crude oil and bunker
oil, as the products are bought in large quantities and
stored for processing and resale. The oil price risk arising
from these oil price exposures is mitigated by entering
into commodity derivative agreements. The overall risk
limit is set in the Group's risk policy, defining a maximum
net open position for the Group. The sensitivity of the
consolidated net open position is calculated daily on a
one day Value-at-Risk (VaR) with a confidence level of
95% and 255 days of historical observations. The Group
VaR limit is USD 6m, and position as of 31 December 2020
of USD 3m (USD 3m). Due to the use of portfolio hedg-
ing, the Group does not use hedge accounting for these
hedges. All gains and losses regarding these hedges are
recognised in other income or other cost on a net basis,
due to the nature of the hedging model.
1,829
13,994
1,342
5,038
4,673
930
106
253
571
16,753
6,486
4,926
5,341
Bearing fixed interest
11,584
Bearing floating interest
5,169
Table 16.8
Maturity
Commodity hedges
Fair value
0-1 year
2-4 years
5-years
2020
Commodity swaps
-13
-13
Commodity futures
-19
-19
Commodity options
11
11
-21
-32
11
Total
2019
Commodity swaps
-12
-12
Commodity futures
-13
-13
Commodity options
Total
-25
-25
Amounts in USD million
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