ANNUAL REPORT 2011 - DONG Energy

notes
36 Contractual obligations and security arrangements
DKK million 2011 2010
investment obligations relating to jointly controlled entities:
Share of jointly controlled entities’ investment obligations 2,060 2,518
Investment obligations in relation to participation in jointly controlled entities - 1,413
Obligations relating to natural gas and oil exploration and production licences:
Share of licences’ investment obligations 6,788 6,211
Other investment obligations:
Investment obligations relating to property, plant and equipment 19,746 24,621
Contractual obligations
Investment obligations in respect of jointly controlled entities
and other investment obligations relate primarily to wind
farms.
The Group is a party to a number of long-term purchase and
sales contracts entered into in the course of the Group’s ordinary
operations. Apart from the liabilities already recognised
in the balance sheet, the Group does not expect to incur any
signifi cant fi nancial losses as a result of the performance of
these contracts.
37 Contingent assets and liabilities
Contingent assets
Signifi cant unrecognised contingent assets comprise deferred
tax assets at DKK 13.3 billion (2010: DKK 10.8 billion).
Reference is made to note 23.
DONG Energy has advanced claims against a few trading partners
and insurance companies. Management is of the opinion
that the claims are justifi ed. The claims have not been recognised,
as the existence of these assets is subject to several uncertain
future events that are outside DONG Energy’s control.
In previous fi nancial years, the Group concluded agreements
on the sale of companies that feature contingent consideration.
This consideration has not been recognised, as its existence
is subject, in part, to several uncertain future events that
are outside DONG Energy’s control.
Security arrangements
Mortgage loans totalling DKK 1,502 million (2010: DKK 1,502
million) were secured on power stations with a carrying
amount of DKK 2,812 million (2010: DKK 3,238 million).
Furthermore, the Group provided cash collateral in respect of
trading in fi nancial instruments, see note 31.
Contingent liabilities
120 124 COnsOliDatED finanCial statEmEnts – DONG ENERGY GROUP ANNUAL ANNUAL REPORT REPORT 2011
2011
liability to pay compensation
According to the legislation, DONG Energy’s natural gas
companies DONG Oil Pipe A/S, DONG E&P A/S and DONG
E&P Grønland A/S are liable to pay compensation for damage
caused by their gas and oil activities, even where there is no
proof of negligence (strict liability). The usual insurance has
been taken out to cover any such claims.
Guarantees
DONG Energy A/S has furnished the Danish Ministry of
Economic Affairs and the Interior with a guarantee for fulfi lment
of all obligations and liability to the Danish State or third
parties incurred by DONG E&P A/S as co-holder of the licences
in which the company participates, irrespective of whether the
obligations and liability rest on DONG E&P A/S alone or jointly
and severally with others. However, the guarantee is limited
to a sum corresponding to twice DONG E&P’s share of each
obligation or liability.