ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
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notes<br />
33 Financial instruments<br />
In <strong>2011</strong>, in connection with the introduction of business performance,<br />
the Group discontinued the application of hedge<br />
accounting for commodities and related currency exposures.<br />
Commodity hedge transactions, DKK 120 million, all of which<br />
relate to hedging transactions entered into in or before 2010<br />
are recognised in hedging of future cash fl ows. All commodity<br />
hedges and related currency exposures recognised in hedging<br />
of future cash fl ows are expected to be realised by 2014.<br />
Hedging of fair values, currency<br />
<strong>2011</strong><br />
DKK million Assets<br />
Liabilities<br />
Hedged using<br />
hedging<br />
instruments<br />
net position<br />
Fair value<br />
of hedging<br />
instrument<br />
EUR 16,592 (40,252) 18,095 (5,565) (5)<br />
USD 4,607 (7,659) 1,439 (1,613) (48)<br />
GBP 6,155 (9,085) - (2,930) -<br />
SEK 1,154 (84) - 1,070 -<br />
NOK 919 (2,964) - (2,045) -<br />
Other 137 (118) - 19 -<br />
total 29,564 (60,162) 19,534 (11,064) (53)<br />
2010<br />
DKK million Assets<br />
Liabilities<br />
Hedged using<br />
hedging<br />
instruments<br />
net position<br />
Fair value<br />
of hedging<br />
instrument<br />
EUR 15,921 (43,262) 12,553 (14,788) 41<br />
USD 2,020 (4,707) 1,437 (1,250) (82)<br />
GBP 7,333 (6,459) - 874 -<br />
SEK 725 (61) - 664 -<br />
NOK 478 (3,298) - (2,820) -<br />
Other 182 (68) - 114 -<br />
total 26,659 (57,855) 13,990 (17,206) (41)<br />
In addition to the above, the fair value of the Group’s interest<br />
payments has been hedged in the form of interest rate<br />
swaps from fi xed to fl oating-rate. Interest swaps with a total<br />
value of DKK 4,386 million were entered into (2010: DKK<br />
4,398 million) and a fair value of DKK 144 million (2010: DKK<br />
11 million). Recognised value adjustments amounted to DKK<br />
133 million (2010: DKK 11 million), which was offset by fair<br />
116 120 COnsOliDatED finanCial statEmEnts – <strong>DONG</strong> ENERGY GROUP <strong>ANNUAL</strong> <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>REPORT</strong> <strong>2011</strong><br />
<strong>2011</strong><br />
Ineffectiveness arising from hedging of future cash fl ows from<br />
commodity hedging and related currency exposures is recognised<br />
in the item effect of economic hedging with DKK 30<br />
million (2010: DKK 390 million), see note 4, and in fual and<br />
energy with DKK 47 million (2010: loss of DKK 9 million).<br />
Ineffectiveness of interest rate and currency hedging amounted<br />
to DKK 27 million (2010: DKK 7 million).<br />
value adjustments of a share of the portfolio that matures<br />
in 2014-2016 with a total amount outstanding of DKK 4,386<br />
million (2010: maturity 2014-2016 and outstanding amount<br />
DKK 4,398 million). The value adjustment of the hedging of<br />
the Group’s portfolio of CO 2 emissions allowances was DKK 0<br />
in <strong>2011</strong> (2010: loss of DKK 55 million), which was offset by fair<br />
value adjustment of the hedged CO 2 emissions allowance.