NOTE F10 Earnings per share
- Index
- 1 NOTE F1 Segment information
- 2 NOTE F2 Consolidated income statement by nature
- 3 NOTE F3 Revenue from non-core activities
- 4 NOTE F4 Other operating gains and losses
- 5 NOTE F5 Results from portfolio management and reassessments, legacy remediation and major litigations
- 6 NOTE F6 Net financial charges
- 7 NOTE F7 Income taxes
- 8 NOTE F8 Discontinued operations
- 9 NOTE F9 Profit for the year
- 10 NOTE F10 Earnings per share
Accounting policy
The basic earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of ordinary shares excludes the treasury shares held by the Group over the reporting period.
The diluted earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares, increased by the number of potentially diluting shares attached to the issuance of share options.
The number of potentially diluting shares is calculated for the weighted average number of share options outstanding during the reporting period as the difference between the average market price of ordinary shares during the reporting period and the exercise price of the share option. Share options have a dilutive effect only when the average market price is above the exercise price (share options are “in the money”).
For the purpose of calculating diluted earnings per share, there were no adjusting elements to net income of the year (Solvay share).
Basic and diluted amounts per share for discontinued operations are presented in the consolidated income statement.
Number of shares (in thousands) |
2017 |
2016 |
||
Weighted average number of ordinary shares (basic) |
103,352 |
103,294 |
||
Dilution effect of subscription rights |
733 |
315 |
||
Weighted average number of ordinary shares (diluted) |
104,084 |
103,609 |
|
2017 |
2016 |
||||||
Basic |
Diluted |
Basic |
Diluted |
|||||
Profit for the year (Solvay share) including discontinued operations (in € thousands) |
1,060,922 |
1,060,922 |
620,964 |
620,964 |
||||
Profit for the year (Solvay share) excluding discontinued operations (in € thousands) |
823,962 |
823,962 |
552,085 |
552,085 |
||||
Earnings per share (including discontinued operations) (in €) |
10.27 |
10.19 |
6.01 |
5.99 |
||||
Earnings per share (excluding discontinued operations) (in €) |
7.97 |
7.92 |
5.34 |
5.33 |
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Full data per share, including dividend per share, can be found in the Business Review section.
The average closing price during 2017 was €118.56 per share (2016: €92.41 per share). Based on this average closing price all share options were in the money, and therefore dilutive, for the presented period (see note F35 Share-based payments).