✨ Financial Statements and Contracts
GAS DIVISION
c) Interest rate swap contracts
Unless otherwise stated below, the Division enters into exchange the difference between contracted nominal principal amounts calculated on agreed forward principal amounts. Such notional amounts published include all amounts provided for discounting. The take delivery is made at fixed rates and floating rates are set on the relevant dates in accordance with the terms of each swap. The average interest rate is based on the outstanding balances at the end of the relevant weekly reset cycle of the monthly interest rate swap contracts put in place.
The following tables show contractual amounts and remaining terms of interest rate swap contracts outstanding as at reporting date:
| 30 June 2008 | 30 June 2009 | |
|---|---|---|
| NZD'000 | NZD'000 | |
| Notional principal amount | NZD3000 | NZD3100 |
| Average contracted fixed interest rate | 7.32% | 7.05% |
| Cash flow swaps | ||
| Less than 1 year | - | - |
| 1 to 2 years | - | - |
| 5 years+ | 5,600 | 5,675 |
| Total cash flow interest rate swaps | 5,600 | 5,675 |
| Fair value | NZD000 | (83) |
| 65,575 | ||
| (60,265) |
| 30 June 2008 | 30 June 2009 | |
|---|---|---|
| NZD'000 | NZD'000 | |
| Fair value interest rate swaps | NZD3000 | NZD3000 |
| Average contracted fixed rate | - | 6.22% |
| 8.50% | 6.38% | |
| 7.50% | 6.55% | |
| - | 7.64% | |
| 6.3% | 8.3% | |
| 9.2% | ||
| (0.66) | (0.92) | |
| (8.92) | (3.34) |
| Forward foreign currency exchange contracts |
The Division has entered into a cross currency swap and interest rate swap arising from the US private placement notes:
| Contract value | 2008 | 2009 |
|---|---|---|
| Dr/(Cr) | Dr/(Cr) | |
| NZD'000 | NZD'000 | |
| (82,984) | (83,082) | |
| Fair value | (407) | (467) |
| Foreign currency | 2008 | 2009 |
|---|---|---|
| Dr/(Cr) | Dr/(Cr) | |
| (USD) | USD | |
| 37,515 | 37,515 |
| Average exchange rate | 0.5947 | 0.5808 |
| 30 June 2008 | 30 June 2009 | |
|---|---|---|
| NZD'000 | NZD'000 | |
| Forward foreign currency average cost contracts | (74,124) | (76,732) |
| Loss arising on designated fair value hedges relationship | (13,659) | (6,259) |
No items have been recognised as measured at cost or amortised cost during the period.
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NZ Gazette 2009, No 179
✨ LLM interpretation of page content
💰
Gas Division Financial Statements for the year ended 30 June 2009
(continued from previous page)
💰 Finance & RevenueRevenue, Expenditure, Taxation, Financial Statements, Powerco, Gas Division, Derivative Financial Instruments, Interest Rate Swaps, Cross Currency Swaps