Wiener Stadtwerke Annual Report 2016

Page 86

Notes to the Consolidated Financial Statements

Financial instruments The derivative-based financial instruments serve to hedge energy sector exposures and exchange rate risks. These are treated as anticipatory hedges and offset underlying operational business in the future.

84

The derivative financial instruments of the companies concerned (WIEN ENERGIE GmbH, WIEN ENERGIE Vertrieb GmbH & Co KG and ENERGIEALLIANZ) are comprised as follows as at the balance sheet date (adjusted for intra-Group relationships).

Financial instruments in TEUR

Nominal value* 2016

Fair value** 2016

Nominal value* 2015

Fair value** 2015

Electricity forward contracts purchased

547,209

30,781

386,605

– 44,266

Electricity forward contracts sold

261,889

– 9,635

340,346

18,043

I. Purchased

204,372

9,603

119,101

– 18,228

II. Sold

125,321

– 581

6,753

410

4,926

2,305

4,784

– 1,695

104,201

12,104

86,592

– 14,497

45,108

– 13,260

7,138

526

Electricity fin. swaps or futures

Oil swaps purchased Gas forward contracts purchased Gas forward contracts sold Gas swaps purchased

0

0

14,286

– 4,454

756

– 108

7,362

– 2,876

CO2 purchases

13,776

– 3,911

2,578

48

CO2 sales

23,677

6,728

0

0

7,785

34

5,537

– 609

Gas options purchased

Coal swaps

* The nominal value is equivalent to the contractual volume (agreed volume x agreed price). ** The fair value is equivalent to the market value.

The fair values were determined on the basis of market parameters (quantity, price, maturity). The contracts or forwards refer to electricity supply deals concluded with ENERGIEALLIANZ Austria GmbH. Oil and coal swaps were concluded to limit the costs of primary energy sources in the 2016 financial year. Electricity futures were either physically satisfied or financially settled. Swaps in the gas segment relate to forwards that are fulfilled by means of a financial settlement. The financial swaps or futures held on the balance sheet date are balanced by asset-backed securities in the amount of TEUR 18,253 (prior year: TEUR 2,790) recognised under other receivables and unrealised gains (positive variation margins) from contracts in the amount of TEUR 13,612 (prior year: losses / negative variation margins of TEUR 18.227) recognised as accruals. In order to fix the variable cost of producing electricity in thermal power plants, valuations were therefore undertaken for forward electricity-based and gas-based transactions which led to provisions for negative fair

values in the amount of TEUR 682 (prior year: TEUR 1,350) in the case of gas forward rate agreements and TEUR 200 (prior year: TEUR 338) in the case of electricity forward rate agreements. At WIEN ENERGIE GmbH and WIEN ENERGIE Vertrieb GmbH & Co KG, derivative transactions were concluded to physically and, in particular, financially hedge procurement in line with supply obligations to the customer. The procurement-related hedging transactions are offset by highly probable sales transactions on the customer side (clearly identifiable link between hedging and underlying transaction or the change in value of hedging transactions and future quasi-secure underlying transactions). This results in the possibility to create a cash-generating unit between forward transactions concluded before the balance sheet date and electricity sales becoming effective after the balance sheet date. These accounting principles are supported by the AFRAC statement ‘Accounting for derivatives and hedging transactions under company law’ from 2015.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.