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