XML 48 R41.htm IDEA: XBRL DOCUMENT

Derivative financial instruments

12 Months Ended

Dec. 31, 2017

Disclosure of derivative financial instruments [text block]

34 Derivative financial instruments

	December 31, 2017								December 31, 2016
(€ million)	Fair value asset			Fair value liability			Level of Fair value		Fair value asset			Fair value liability			Level of Fair value
Non-hedging derivatives
Derivatives on exchange rate
- Currency swap		170			86			2		188			268			2
- Interest currency swap		41			45			2		38			83			2
- Outright		3			5			2		17			15			2
		214			136					243			366
Derivatives on interest rate
- Interest currency swap		9			5			2		10			12			2
		9			5					10			12
Derivatives on commodities
- Future		796			771			1		624			611			1
- Over the counter		81			97			2		133			120			2
- Options													1			2
- Other		1			2			2		4			5			2
		878			870					761			737
		1,101			1,011					1,014			1,115
Trading derivatives
Derivatives on commodities
- Over the counter		683			829			2		1,495			1,490			2
- Future		395			390			1		561			574			1
- Options		133			114			2		211			157			2
		1,211			1,333					2,267			2,221
Cash flow hedge derivatives
Derivatives on commodities
- Over the counter		227			21			2		309			150			2
- Future		35						1		1			18			1
		262			21					310			168
Option embedded in convertible bonds		16			16			2		46			46			2
Gross amount		2,590			2,381					3,637			3,550
Offsetting		(1,279	)		(1,279	)				(1,281	)		(1,281	)
Net amount		1,311			1,102					2,356			2,269
Of which:
- current		1,231			1,011					2,248			2,108
- non-current		80			91					108			161

Derivative fair values were estimated on the basis of market quotations provided by primary info-provider or, alternatively, appropriate valuation techniques generally adopted in the marketplace.

Fair values of non-hedging derivatives consisted of derivatives that did not meet the formal criteria to be designated as hedges under IFRS because they were entered into in order to manage net exposures to foreign currency exchange rates, interest rates and commodity prices. Therefore, such derivatives did not relate to specific trade or financing transactions.

Fair values of trading derivatives consisted of derivatives entered for trading purposes and proprietary trading.

Fair value of cash flow hedge derivatives related to the hedges entered by the Gas & Power segment. These derivatives were entered into to hedge variability in future cash flows associated with highly probable future sale transactions of gas or electricity or on already contracted sales due to different indexation mechanism of supply costs versus selling prices. A similar scheme applies to exchange rate hedging derivatives. The effects of the measurement at fair value of cash flow hedge derivatives are given in note 36 — Shareholders’ equity and in note 40 — Operating expenses. Information on hedged risks and hedging policies is disclosed in note 38 — Guarantees, commitments and risks — Risk factors.

Options embedded in convertible bonds of €16 million as of December 31, 2017, related to equity-linked cash settled bonds (€46 million at December 31, 2016). More information is disclosed in note 29 — Long-term debt and current portion of long-term debt.

The offsetting of financial derivatives of €1,279 million (€1,281 million) related to Eni Trading & Shipping SpA for €1,144 million (€1,145 million at December 31, 2016) and Eni Trading & Shipping Inc for €135 million (€136 million at December 31, 2016).

During the 2017, there were no transfers between the different hierarchy levels of fair value.