Finance costs, net

Finance costs decreased 30%, or $128 million, in 2011 as compared to 2010. In late 2010 and the beginning of 2011, we negotiated lower interest rates for existing loans with major creditors and obtained lower interest rate loans to refinance existing debt. Consequently, the weighted average nominal interest rate stood at 6.92% as of December 31, 2011 as compared to 7.86% as of December 31, 2010. A significant reduction in the amount of unamortised debt issue costs recognised in the income statement in 2011 also decreased our finance costs.

Finance income increased 70% or $13 million in 2011, primarily due to growing dividend income.

As a result, net finance costs decreased $141 million or 34% in 2011 as compared to 2010.

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