ANNUAL REPORT 2011 - DONG Energy

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