Details of commodity derivatives used for trading are as follows:
| 31/12/2022 | 31/12/2021 | ||||
|---|---|---|---|---|---|
| (in millions of euros) | Units of measure | Net notional | Fair value | Net notional | Fair value |
| Electricity | TWh | (13) | (1,090) | (111) | (1,719) |
| Gas | Millions of therms | (2,497) | 2,990 | 47,423 | 630 |
| Oil products | Thousands of barrels | 4,065 | 46 | 6,812 | 17 |
| CO2 | Thousands of tonnes | (1,417) | (28) | (7,880) | (628) |
| Coal and freight | Millions of tonnes | (1) | 15 | - | (48) |
| Other commodities | - | (6) | - | (146) | |
| COMMODITY DERIVATIVES – TRADING | 1,927 | (1,894) | |||
These instruments mainly include contracts included in EDF Trading’s portfolio.
Changes in the fair value of hedging derivatives included in equity (EDF share) and profit and loss are detailed below:
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| (in millions of euros) | Gross changes in fair value recorded in equity (1) | Gross changes in fair value transferred to income - Recycling (2) | Gross changes in fair value transferred to income - Ineffectiveness | Gross changes in fair value recorded in equity (1) | Gross changes in fair value transferred to income - Recycling (2) | Gross changes in fair value transferred to income - Ineffectiveness |
| Interest rate hedging (4) | 392 | - | (1) | (98) | - | - |
| Exchange rate hedging | 2,653 | 598 | 92 | 2,684 | 720 | (38) |
| Net foreign investment hedging | 308 | - | - | (1,078) | (405) | - |
| Commodity hedging | (9,002) | (3,131) | (2) | (7,356) | (2,198) | (2) |
| HEDGING DERIVATIVES (3) | (5,649) | (2,533) | 89 | (5,848) | (1,883) | (40) |
(1) +/(): increase/(decrease) in equity (EDF share).
(2) +/(): increase/(decrease) in net income (EDF share).
(3) Excluding associates and joint ventures.
(4) Gross changes in fair value recorded in equity in 2022 include +€155 million of changes in the fair value of hedging costs resulting from the foreign currency basis spread on and cross-currency swaps. These changes are transferred to profit and loss via interest expenses on financing operations, which are included in the cost of gross indebtedness in the income statement (see note 8.1).
The gross change in the fair value of hedging instruments recognised in equity (EDF share), including recycling, is €(3,116) million in 2022 (€(3,965) million in 2021).
In 2022 this change is explained by the gross fair value changes in net foreign investment hedges, amounting to +€308 million (€(673) million in 2021), interest rate, exchange rate and commodity hedges, amounting to €(3,579) million (€(3,292) million in 2021) and hedging costs resulting from the foreign currency basis spread on and cross-currency swaps, amounting to +€155 million in 2022 – see the consolidated statement of comprehensive income.
The amount transferred to operating profit before depreciation and amortisation in 2022 is €(3,131) million in respect of commodity hedges comprises:
Accounting principles and methods
A financial asset and financial liability must be netted if the entity currently has a legally enforceable right to do so and intends either to settle the net amount or to realise the asset and settle the liability simultaneously.
