ANNUAL REPORT 2011 - DONG Energy

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