ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
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18 Financial risks<br />
<strong>DONG</strong> <strong>Energy</strong> A/S acts as the Group’s internal banker in<br />
relation to funding, currency, interest rate and cash<br />
management and the conclusion of some commodity-related<br />
contracts, see the chapter on Risk and Risk management<br />
in Management’s review, pages 44-49.<br />
As part of its financial management, <strong>DONG</strong> <strong>Energy</strong> A/S<br />
hedges currency risks and interest rate risks. Full or partial<br />
hedging of recognised assets and liabilities (hedging<br />
Currency risks<br />
cash and<br />
DKK<br />
million Cash<br />
equivalents and<br />
receivables<br />
Payables<br />
of fair value) and of future transactions (hedging of cash<br />
flows) is carried out in accordance with the framework laid<br />
down in the financial risk policy implemented by <strong>DONG</strong><br />
<strong>Energy</strong>. Both primary financial instruments, primarily loans<br />
(only currency risks) and derivative financial instruments<br />
such as forwards, swaps and options, are used as hedges.<br />
In some cases, the company has also entered into contracts<br />
to hedge risks in subsidiaries.<br />
<strong>2011</strong> 2010<br />
Hedged using hedging<br />
instruments<br />
net position<br />
Cash and cash<br />
equivalents and<br />
receivables<br />
EUR 4,490 (30,424) 9,911 (16,023) 4,373 (28,496) 9,765 (14,358)<br />
USD 3,375 (4,790) (388) (1,803) 3,301 (4,185) 3,240 2,356<br />
GBP 20,012 (5,366) (18,439) (3,793) 12,187 (6,932) (8,946) (3,691)<br />
SEK 40 (38) (1,399) (1,397) 6 (34) (1,517) (1,545)<br />
NOK 8,007 - (3,393) 4,614 7,922 - (3,995) 3,927<br />
Other 1,012 - (1,194) (182) 1,127 - (1,265) (138)<br />
total 36,936 (40,618) (14,902) (18,584) 28,916 (39,647) (2,718) (13,449)<br />
Payables<br />
Hedged using hedging<br />
instruments<br />
<strong>DONG</strong> ENERGY <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2011</strong> – parEnt COmpany finanCial statEmEnts<br />
net position<br />
177<br />
notes