Cash flow, investments, and financing
Neste Oil Group’s net cash from operating activities in 2011 was EUR 197 million (1,105 million). As net cash from operating activities were positively impacted by working capital management in 2010, there was less room for improvement in 2011.
Investments totaled EUR 364 million (943 million) in 2011, of which cash investments represented EUR 326 million. Oil Products’ capital spending was EUR 131 million (269 million). Investments at Renewable Fuels totaled EUR 190 million (578 million) and those at Oil Retail EUR 34 million (33 million). Investments in the Others segment totaled EUR 9 million (63 million).
Interest-bearing net debt was EUR 2,080 million as of the end of December, compared to EUR 1,801 at the end of 2010. Net financial expenses between January and December were EUR 67 million (27 million). The average interest rate of borrowings at the end of December was 3.5% and the average maturity 3.7 years.
The equity-to-assets ratio was 34.0% (Dec 31 2010: 36.5%), the leverage ratio 45.7% (Dec 31 2010: 42.6%), and the gearing ratio 84.3% (Dec 31 2010: 74.3%).
The Group's cash and cash equivalents and committed, unutilized credit facilities amounted to EUR 1,629 million as of the end of December (Dec 31 2010: 1,745 million). There are no financial covenants in current loan agreements.
In accordance with its hedging policy, Neste Oil has hedged the majority of its net foreign currency exposure for the next 12 months, mainly using forward contracts and currency options. The most important hedged currency is the US dollar.