v3.26.1
Derivative instruments and hedge accounting
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments and hedge accounting
Note 11. Derivative instruments and hedge accounting
The Company uses derivative financial instruments, primarily interest rate swap contracts and foreign currency forward contracts to manage its exposure to interest rate and exchange rate risks.
 
 
  
June 30, 2026
 
(in millions of $)
  
Notional
amount
 
  
Derivative assets
 
  
Derivative liabilities
 
  
Other current
assets
 
  
Other non-

current asset
 
  
Other current
liabilities
 
 
Other non-

current
liabilities
 
Interest rate swaps (Euribor)
  
 
877.3
 
  
 
— 
 
  
 
4.2
 
  
 
— 
 
 
 
— 
 
Interest rate swaps (SOFR)
  
 
945.0
 
  
 
— 
 
  
 
9.1
 
  
 
— 
 
 
 
— 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total—Interest rate
  
 
1,822.3
 
  
 
— 
 
  
 
13.3
 
  
 
— 
 
 
 
— 
 
Foreign currency hedges
  
 
1,809.6
 
  
 
— 
 
  
 
— 
 
  
 
(25.6
) 
 
 
(11.5
) 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total—Foreign currency hedges
  
 
1,809.6
 
  
 
— 
 
  
 
— 
 
  
 
(25.6
) 
 
 
(11.5
) 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total
  
 
3,631.9
 
  
 
— 
 
  
 
13.3
 
  
 
(25.6
) 
 
 
(11.5
) 
 
    
December 31, 2025
  
(in millions of $)
   
Notional
amount
     
Derivative assets
     
Derivative liabilities
  
  
Other current
assets
     
Other non-

current asset
     
Other current
liabilities
    
Other non-

current
liabilities
  
Interest rate swaps (Euribor)
      904.8        —         0.1        —        (2.5 ) 
Interest rate swaps (SOFR)
      945.0        —         —         —        (4.8 ) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total—Interest rate
  
 
1,849.8
 
  
 
— 
 
  
 
0.1
 
  
 
— 
 
 
 
(7.3
) 
Foreign currency hedges
      926.7        3.7        —         (0.3 )      (0.3 ) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total—Foreign currency hedges
     
926.7
 
  
 
3.7
 
  
 
— 
 
  
 
(0.3
) 
 
 
(0.3
) 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
  
Total
   
 
2,776.5
 
   
 
3.7
 
   
 
0.1
 
   
 
(0.3
) 
  
 
(7.6
) 
As of June 30, 2026, the Company had interest rate swaps designated as cash flow hedges of variable-rate borrowings (for further information on borrowings, refer to Note 7 – Long-term debt - current and
non-current).
The objective of these cash flow hedges is to convert variable interest payments into fixed interest payments.
As of June 30, 2026, the Company had foreign exchange forward contracts designated as cash flow hedges of the Group’s
USD-denominated
intercompany revenues and revenue contracts with external customers. The program started in August, 2025 with the objective to hedge the variability in the forecasted revenues due to the foreign currency fluctuation risks associated with the specific forecasted USD revenues.
The hedged transactions are the Company’s discrete milestone sales, in an amount equal to the forward’s USD notional value, that are expected to occur on the forward’s maturity date. However, due to certain contractual milestones, they may occur at a later date, but will occur during the life of the contract.
Effects of hedge accounting
Amounts in Accumulated other comprehensive income (loss) are reclassified in the same periods during which the interest expense on the related hedged borrowings, or during which the hedged forecasted transaction (the revenue associated with the external third-party contract) is recognized in the consolidated statements of operations. The Company reviews the amounts deferred in OCI at each reporting date to ensure appropriate timing of OCI release.
Amounts deferred in Accumulated other comprehensive income (loss) for the interest rate hedge accounting were reclassified to the consolidated statement of operations as follows:
 
(in millions of $)
   
June 30, 2026
     
June 30, 2025
  
Gains (losses) recognized in OCI
      22.8        (9.7 )
 
Reclassified to interest expense
      (1.9 )       0.0  
 
The estimated net amount of the existing gains or losses that are reported in accumulated other comprehensive income at the reporting date that is expected to be reclassified into earnings within the next 12 months amounted to $0.1 million and $(0.5) million as of June 30, 2026 and 2025 respectively.
The following table represents the amounts recognized in the statement of operation for the foreign currency hedge accounting, started in August, 2025:
 
(in millions of $)
   
June 30, 2026
     
June 30, 2025
  
Gains (losses) recognized in OCI
      (32.8 )       —   
Recycled to revenue
      (0.8 )
 
      —   
Changes in spot-forward differential
      11.3        —   
Changes in spot-forward differential are recognized in the consolidated statement of operation. Spot rate changes during the period are reclassified to the consolidated statement of operation.
The estimated net amount of the existing gains or losses that are reported in accumulated other comprehensive income at the reporting date that is expected to be reclassified into earnings within the next 12 months amounted to $14.1 million as of June 30, 2026.
The Company did not discontinue any cash flow hedges during the six months ended June 30, 2026 or 2025.
Offsetting
Derivative instruments subject to master netting agreements are presented in the following table:
 
 
  
June 30, 2026
 
(in millions of $)
  
Gross
Amounts of
Recognized
Assets/
Liabilities
 
 
Gross
Amounts
Offset in the
Statements
of Financial
Position
 
  
Net Amounts of
Assets/
Liabilities
Presented in
the Statements
of Financial
Position
 
 
Gross Amounts Not Offset
in the Statements of
Financial Position
 
  
Net Amount
 
 
Financial
Instruments
 
  
Cash
Collateral
Received
 
Derivative assets
      13.3        —      
13.3
      —         —         13.3  
From which interest hedges
      13.3        —         13.3        —         —         13.3  
From which FX hedges
      —         —         —         —         —         —   
Derivative liabilities
      (37.1 )
 
      —         (37.1 )
 
      —         —         (37.1 )
 
From which interest hedges
      —         —         —         —         —         —   
From which FX hedges
      (37.1 )      —         (37.1 )      —         —         (37.1 )
 
    
December 31, 2025
  
(in millions of $)
   
Gross
Amounts of
Recognized
Assets/
Liabilities
    
Gross
Amounts
Offset in the
Statement of
Financial
Position
     
Net Amounts of
Assets/
Liabilities
Presented in
the Statements
of Financial
Position
    
Gross Amounts Not Offset
in the Statements of
Financial Position
     
Net Amount
  
 
Financial
Instruments
    
Cash
Collateral
Received
  
Derivative assets
      3.8       —         3.8       (0.2 )      —         3.6  
From which interest hedges
      0.1       —         0.1       —        —         0.1  
From which FX hedges
      3.7       —         3.7       (0.2 )      —         3.5  
Derivative liabilities
      (7.9 )      —         (7.9 )      0.2       —         (7.7 ) 
From which interest hedges
      (7.3 )      —         (7.3 )      —        —         (7.3 ) 
From which FX hedges
      (0.6 )      —         (0.6 )      0.2       —         (0.4 ) 
The Company’s assets and liabilities measured at fair value on a recurring basis are disclosed in Note 24 – Fair value disclosures.
Besides market interest rate risk and the risk of foreign exchange rate fluctuation, the Company is exposed to credit risk in the event of
non-performance
by counterparties to its derivative instruments. The Company monitors counterparty credit risk on a regular basis. Credit risk on derivative financial instruments is mitigated through the use of counterparties that are major financial institutions with investment-grade credit ratings, and through the use of netting agreements.
As a result, the impact of credit valuation adjustments (“CVA”) and debit valuation adjustments (“DVA”) on the fair value of derivative instruments was not material, and no such adjustments were recognized. The Company did not enter into any derivative instruments that include credit-risk related to contingent features.
No cash collateral was posted or received under derivative contracts as of June 30, 2026 or December 31, 2025. Hedge effectiveness is assessed on a prospective and retrospective basis in accordance with ASC 815. No hedge ineffectiveness
 was
posted during the six months ended June 30, 2026 or 2025.