Engineering

2.2 Management report on the Group Consolidated results of operations
2.2 Management report on the Group Consolidated results of operations
Natural gas prices
ThyssenKrupp in Germany
Bochum off-take point
in €, indexed, October 2009 = 100
160
140
120
100
80
Oct
2009
Sept
2011
The emission allowances allocated to to
ThyssenKrupp in in calendar year 2010 were
were enough.
enough.
Natural gas prices in Germany higher
In Germany the price paid by ThyssenKrupp for natural gas increased by 25% year-on-year because under
the applicable contracts it is pegged to the price of oil. For the following two fiscal years we have secured
prices on attractive terms – in particular in comparison with prices on the futures market.
The situation at our operations abroad is positive, with previously agreed fixed price contracts permitting
significant savings against the current market price. In France our companies use liquid trading points in the
Netherlands to achieve considerably improved terms and conditions. In Spain a new natural gas contract
entered into effect in the 4th quarter 2010/2011 with prices 8% below the already favorable level of the
previous contract. In the USA natural gas prices are far lower than in Europe. The development of previously
unprofitable gas reserves created a surplus which cannot be sold on the global market for technical reasons.
The price of natural gas for our new plant complex in Alabama is therefore well below half that paid by
similar plants in Germany.
Energy transition increases electricity costs in Germany
Due to our increased output we had to purchase extra electricity at short notice in 2010/2011. We
succeeded in reducing our average price in Germany even though electricity prices increased in the wake of
the economic recovery. On the futures market, too, prices have advanced considerably since the nuclear exit
began. Electricity prices in Germany are at the top end of the European scale – driven by politically imposed
costs such as the levy to subsidize renewable energies, an electricity tax increase, the subsidization of heatand-power
cogeneration, and rising network charges.
The situation in France is different: Here the government-regulated industrial electricity tariff expired at the
end of June 2011 and was replaced with a new instrument. By using this we saved over €1 million in the
4th quarter of the reporting year alone. In Italy we were able to keep electricity costs below the local price
level by purchasing some volumes at more favorable foreign wholesale terms.
Emissions trading: Hedge for third trading period
In accordance with the legal rules, ThyssenKrupp received emission allowances for 21,263,403 tons of CO2
in calendar year 2010. As actual emissions were 21,246,047 tons, the allocated emission allowances were
enough. We have already purchased EU emission allowances at attractive market prices as a hedge for the
third trading period (2013-2020).
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