ANNUAL REPORT 2011 - DONG Energy

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notes 18 Financial risks At 31 December 2011, unrealised value adjustments of derivative financial instruments for currency hedging of recognised assets and liabilities totalled DKK -775 million (31 December 2010: DKK -100 million). sensitivity analysis DONG Energy A/S’s principal currency risks relate to USD, GBP, SEK and NOK. The company also calculates and manages the currency risk vis-à-vis EUR. However, as price fluctuations between DKK and EUR are small, the risk is considered to be insignificant. All other conditions being equal, a 10% increase in the USD exchange rate in relation to the exchange rate at the balance sheet date would have had a negative effect of DKK 180 million on profit and equity (2010: positive effect of DKK 236 million). All other conditions being equal, a decrease in the exchange rate would have had a corresponding opposite impact. All other conditions being equal, a 10% increase in the GBP exchange rate in relation to the exchange rate at the balance sheet date would have had a negative effect of DKK 379 million on profit and equity (2010: negative effect of DKK 369 million). All other conditions being equal, a decrease in the exchange rate would have had a corresponding opposite impact. All other conditions being equal, a 10% increase in the SEK exchange rate in relation to the exchange rate at the balance sheet date would have had a negative effect of DKK 140 million on profit and equity (2010: negative effect of DKK 155 million). All other conditions being equal, a decrease in the exchange rate would have had a corresponding opposite impact. All other conditions being equal, a 10% increase in the NOK exchange rate in relation to the exchange rate at the balance sheet date would have had a positive effect of DKK 461 million on profit and equity (2010: positive effect of DKK 393 million). All other conditions being equal, a decrease in the exchange rate would have had a corresponding opposite impact. Interest rate risks Interest rate risks are the risk that externally introduced changes in agreed interest rates lead to increased interest expense or reduced interest income for DONG Energy A/S. For an analysis of the company’s interest rate sensitivity, reference is made to note 32 to the consolidated financial statements. ineffectiveness Ineffectiveness of interest rate hedging was DKK 0 million in 2011 (2010: DKK 0 million). interest rate hedges As part of its financial management, DONG Energy A/S swaps the interest basis on loans from a floating rate to a fixed rate or vice versa using interest rate swaps. For interest rate swaps converting floating-rate loans to fixed-rate loans (hedging of cash flows), value adjustments recognised directly in equity at 31 December 2011 amounted to a net loss of DKK 848 million (31 December 2010: loss of DKK 265 million). Reference is made to note 33 to the consolidated financial statements. Counterparty risks 178 parEnt COmpany finanCial statEmEnts – DONG ENERGY ANNUAL REPORT 2011 Counterparty risks are the risk that a financial loss will be realised in the event of a counterparty to an agreement being unable to discharge its obligations under the agreement. DONG Energy A/S’s counterparty risk comprises primarily receivables from financial counterparties. Credit rating of business partners is carried out on a regular basis to generally minimise this risk. The amounts with which the items in question are recognised in the balance sheet correspond to the company’s maximum counterparty risk. Losses on receivables from individual business partners have historically been low. In the company’s opinion, there are no special concentrations of counterparty risks. The company’s counterparty risk in connection with derivative financial instruments entered into is limited as such instruments have primarily been entered into with major international banks or other counterparties with a high credit rating. Reference is made to note 32 to the consolidated financial statements.
19 Financial instruments maturity analysis for financial liabilities including interest payments 2011 DKK million Carrying amount Payment obligation 2012 2013 2014 2015 2016 After 2016 non-derivative financial instruments: Bond loans 22,678 35,619 4,856 1,009 4,726 827 4,544 19,657 Bank overdrafts 3,920 3,920 3,920 - - - - - Other bank loans 15,568 17,969 1,975 2,243 910 712 1,240 10,889 Trade payables 19 19 19 - - - - - Payables to subsidiaries 10,509 10,509 10,509 - - - - - Other payables Derivative financial instruments: Fair value of derivative financial 622 622 622 - - - - - instruments 8,042 8,239 3,646 1,761 1,066 436 134 1,196 payables 61,358 76,897 25,547 5,013 6,702 1,975 5,918 31,742 2010 DKK million Carrying amount Payment obligation 2011 2012 2013 2014 2015 After 2015 non-derivative financial instruments: Bond loans 26,570 40,401 5,044 4,980 1,004 4,728 822 23,823 Bank overdrafts - - - - - - - - Other bank loans 9,233 10,288 623 208 2,045 489 443 6,480 Trade payables 12 12 12 - - - - - Payables to subsidiaries 10,206 10,206 10,206 - - - - - Other payables Derivative financial instruments: Fair value of derivative financial 811 811 811 - - - - - instruments 5,630 5,630 2,139 1,232 932 606 143 578 payables 52,462 67,348 18,835 6,420 3,981 5,823 1,408 30,881 At 31 December 2011, DONG Energy A/S had issued hybrid capital with a principal of DKK 9,664 million due in 3005 and 3010, see note 22. The maturity analysis is based on undiscounted cash flows relating to financial liabilities. DONG ENERGY ANNUAL REPORT 2011 – parEnt COmpany finanCial statEmEnts 179 notes
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MOVING ENERGY FORWARD ANNUAL REPORT
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More reliable and clean energy DONG
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More reliable and clean energy Mode
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Q3 17 August signing of Eur 1.3 bil
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ifrs statement of comprehensive inc
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un Global Compact principle Climate
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Spearheading the development of the
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Waste is a valuable resource It is
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DONG Energy involves local operator
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The ambitious business strategy mea
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DONG Energy contributes to green gr
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The photo shows the Siri platform i
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The photo shows the construction of
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The photo shows one of the Group’
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Strong market insight from experien
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The photo shows a meter technician
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monthly average 2011 2010 ∆ Oil,
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Net finance costs amounted to DKK 0
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New presentation of profit for the
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Non-financial performance The Group
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volumes Generation from wind and hy
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was brought back online in October
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Further information on DONG Energy
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DONG Energy has a diversified loan
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Market and credit risks The Group
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isk and risk policy Exposure and he
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isk and risk policy Exposure and he
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Environment As an energy company, D
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Under Danish legislation, the Group
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information and communication DONG
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lars nØrBy JOHansEn Deputy Chairma
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pOul arnE niElsEn b. 1944. Joined t
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The Board of Directors and the Exec
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notes to the statement of cash flow
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DKK million Note Business perfor ma
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Equity and liabilities DKK million
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DKK million Share capital Hedging r
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DKK million Note 2011 2010 suppleme
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02 Critical accounting estimates an
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The excess of the cost of the acqui
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• wind power: Development, constr
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Geographical breakdown 2011 DKK mil
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econciliations DKK million 2011 201
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emuneration of Board of Directors,
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08 Fee to auditor appointed at the
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13 Income tax expense DKK million 2
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DKK million Goodwill Cost at 1 Janu
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The main criteria used for determin
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DKK million Land and Impairment tes
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17 Associates and other securities
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19 Receivables DKK million 2011 201
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20 Construction contracts DKK milli
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Hybrid capital due 3005 Hybrid capi
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Change in temporary differences in
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25 Loans and borrowings DKK million
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27 Income tax receivable and payabl
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29 Disposal of enterprises DKK mill
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Other capital transactions with non
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Risk Price change Effect on profi t
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Categories of fi nancial instrument
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securities 2011 DKK million Nominal
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trading portfolio, economic hedging
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Hedging of net investments in forei
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35 Lease commitments 2011 DKK milli
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As a condition for approval of its
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Page 161 and 162: fInancIal stateMents 2011 PARENT CO
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Page 167 and 168: DKK million Share capital Hedging r
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Page 173 and 174: 06 Finance income DKK million 2011
Page 175 and 176: 09 Property, plant and equipment DK
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Page 181: 18 Financial risks DONG Energy A/S
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Page 187 and 188: 22 Related party transactions tradi
Page 189 and 190: Independent Auditor’s Report To t
Page 191 and 192: coMPany announceMents IN 2011 Compa
Page 193 and 194: glossaRy relatively low (off-peak).
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ANNUAL REPORT 2011 - DONG Energy

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