Fred Olsen Energy aims to keep a balanced and conservative funding. The strategy supports the use of different sources to access the debt market to achieve financial flexibility.
The Board’s objective is to have a sound financial position in order to maintain market confidence and sustain future development of the business. The Board monitors the capital structure and return on capital on a continuous basis, with the aim to maintain a strong capital base while maximizing the return on capital.
Fred Olsen Energy may purchase its own shares in the market within the authorization given by the Annual General Meeting. The Company does not have a formally defined share buy-back program however this is evaluated on a continuous basis.
Fred Olsen Energy continuously evaluates the refinancing need and will carry out refinancing transactions from time to time
Financial risk management
Fred Olsen Energy uses derivative financial instruments to manage the Group’s exposure to foreign exchange and interest rate risks arising from operational, financing and investment activities. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes.