DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | TORM plc |
Entity Central Index Key | 1,655,891 |
Trading Symbol | trmd |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 0 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Revenue | $ 656,991 | $ 680,143 | $ 540,404 |
Port expenses, bunkers and commissions | (259,888) | (221,859) | (169,646) |
Charter hire | (8,517) | (21,498) | (12,023) |
Operating expenses (Note 4) | (188,374) | (195,249) | (122,867) |
Profit from sale of vessels (Note 23) | 2,762 | ||
Administrative expenses (Note 4, 5) | (45,007) | (41,406) | (19,486) |
Other operating expenses | (418) | (304) | (6,299) |
Share of profit/(loss) from joint ventures | 3 | 176 | 202 |
Impairment losses on tangible and intangible assets (Note 6, 7, 8, 23) | (3,572) | (185,000) | |
Depreciation (Note 7) | (114,451) | (122,215) | (67,327) |
Operating profit/(loss) (EBIT) | 39,529 | (107,212) | 142,958 |
Financial income (Note 9) | 4,255 | 2,814 | 992 |
Financial expenses (Note 9) | (40,601) | (37,333) | (16,926) |
Profit/(loss) before tax | 3,184 | (141,731) | 127,024 |
Tax (Note 12) | (777) | (760) | (1,041) |
Net profit/(loss) for the year | $ 2,407 | $ (142,491) | $ 125,983 |
EARNINGS PER SHARE | |||
Basic earnings/(loss) per share (USD) (Note 26) | $ 0.04 | $ (2.3) | $ 2.4 |
Diluted earnings/(loss) per share (USD) (Note 26) | $ 0.04 | $ (2.3) | $ 2.4 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Statement of comprehensive income [abstract] | |||||
Net profit/(loss) for the year | $ 2,407 | $ (142,491) | $ 125,983 | ||
Items that may be reclassified to profit or loss: | |||||
Exchange rate adjustment arising from translation of entities using a functional currency different from USD | 360 | (240) | 160 | ||
Fair value adjustment on hedging instruments | 9,181 | (2,675) | 1,067 | ||
Fair value adjustment on hedging instruments transferred to income statement | (2,262) | 1,665 | 333 | ||
Other comprehensive income/(loss) after tax | [1] | 7,279 | [2] | (1,250) | 1,560 |
Total comprehensive income/(loss) for the year | $ 9,686 | $ (143,741) | $ 127,543 | ||
[1] | No income tax was incurred relating to other comprehensive income/(loss) items. | ||||
[2] | Please refer to "Consolidated Statement of Comprehensive Income". |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Tangible fixed assets | ||
Vessels and capitalized dry-docking (Note 7,8,16) | $ 1,294,472 | $ 1,343,778 |
Prepayments on vessels (Note 7) | 88,378 | 44,036 |
Other plant and operating equipment (Note 7) | 1,945 | 1,836 |
Total tangible fixed assets | 1,384,795 | 1,389,650 |
Financial assets | ||
Investments in joint ventures | 324 | 322 |
Other investments | 5 | 4 |
Total financial assets | 329 | 326 |
Total non-current assets | 1,385,124 | 1,389,976 |
CURRENT ASSETS | ||
Bunkers | 33,204 | 31,616 |
Freight receivables (Note 10) | 71,281 | 62,533 |
Other receivables (Note 11) | 11,787 | 8,134 |
Prepayments | 4,422 | 3,024 |
Cash and cash equivalents | 134,207 | 75,971 |
Current assets, excluding assets held-for-sale | 254,901 | 181,278 |
Assets held-for-sale (Note 23) | 6,550 | |
Total current assets | 261,451 | 181,278 |
TOTAL ASSETS | 1,646,575 | 1,571,254 |
EQUITY | ||
Common shares (Note 13) | 623 | 623 |
Treasury shares (Note 13) | (2,887) | (2,887) |
Hedging reserves | 7,309 | 390 |
Translation reserves | 280 | (80) |
Retained profit | 785,725 | 782,532 |
Total equity | 791,050 | 780,578 |
NON-CURRENT LIABILITIES | ||
Deferred tax liability (Note 12) | 44,906 | 44,967 |
Mortgage debt and bank loans (Note 2,15,16,18) | 629,198 | 593,912 |
Finance lease liabilities (Note 18,23) | 25,294 | |
Total non-current liabilities | 699,398 | 638,879 |
CURRENT LIABILITIES | ||
Mortgage debt and bank loans (Note 2,15,16,18) | 91,720 | 75,652 |
Finance lease liabilities (Note 18,23) | 2,899 | 13,624 |
Trade payables (Note 18) | 26,150 | 28,498 |
Current tax liabilities | 1,393 | 773 |
Other liabilities (Note 14,18) | 33,822 | 33,055 |
Deferred income | 143 | 195 |
Total current liabilities | 156,127 | 151,797 |
Total liabilities | 855,525 | 790,676 |
TOTAL EQUITY AND LIABILITIES | $ 1,646,575 | $ 1,571,254 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common shares | Treasury shares 3) | Hedging reserves | Translation reserves | Retained profit | Total | ||||||
Changes in Stockholders' Equity [Roll Forward] | ||||||||||||
Balance as of 1 January 2015, as shown in the financial statements of TORM A/S | $ 87,986 | $ 381,528 | $ 469,514 | |||||||||
Effect as of 1 January 2015 of the Exchange Offer | [1] | (87,590) | 87,590 | |||||||||
Equity at Dec. 31, 2014 | 396 | 469,118 | 469,514 | |||||||||
Comprehensive income/loss for the year: | ||||||||||||
Net profit/(loss) for the year | 125,983 | 125,983 | ||||||||||
Other comprehensive income/(loss) for the year | $ 1,400 | $ 160 | 1,560 | [2] | ||||||||
Total comprehensive income/(loss) for the year | 1,400 | 160 | 125,983 | 127,543 | ||||||||
Shareholders' contribution | 14,040 | 14,040 | ||||||||||
Reverse acquisition of TORM A/S | 242 | 367,536 | 367,778 | |||||||||
Transaction costs share issue | (2,723) | (2,723) | ||||||||||
Acquisition of treasury shares, cost | $ (176) | [3] | (176) | |||||||||
Total changes in equity 2015, 2016, 2017 | 242 | (176) | [3] | 1,400 | 160 | 504,836 | 506,462 | |||||
Equity at Dec. 31, 2015 | 638 | (176) | [3] | 1,400 | 160 | 973,954 | 975,976 | |||||
Comprehensive income/loss for the year: | ||||||||||||
Net profit/(loss) for the year | (142,491) | (142,491) | ||||||||||
Other comprehensive income/(loss) for the year | (1,010) | (240) | (1,250) | [2] | ||||||||
Total comprehensive income/(loss) for the year | (1,010) | (240) | (142,491) | (143,741) | ||||||||
Acquisition of outstanding shares in TORM A/S, cost | [4] | (15) | 176 | (19,396) | (19,235) | |||||||
Acquisition of treasury shares, cost | (2,887) | [3] | (2,887) | |||||||||
Corporate Reorganization TORM plc | (6,564) | (6,564) | ||||||||||
Share-based compensation | 2,029 | 2,029 | ||||||||||
Dividend paid | (25,000) | (25,000) | ||||||||||
Total changes in equity 2015, 2016, 2017 | (15) | (2,711) | [3] | (1,010) | (240) | (191,422) | (195,398) | |||||
Equity at Dec. 31, 2016 | 623 | (2,887) | [3] | 390 | (80) | 782,532 | 780,578 | |||||
Comprehensive income/loss for the year: | ||||||||||||
Net profit/(loss) for the year | 2,407 | 2,407 | ||||||||||
Other comprehensive income/(loss) for the year | 6,919 | 360 | 7,279 | [2],[5] | ||||||||
Total comprehensive income/(loss) for the year | 6,919 | [5] | 360 | [5] | 2,407 | [5] | 9,686 | |||||
Acquisition of treasury shares, cost | 0 | |||||||||||
Corporate Reorganization TORM plc | 146 | 146 | ||||||||||
Share-based compensation | 1,880 | 1,880 | ||||||||||
Dividend paid | (1,240) | (1,240) | ||||||||||
Total changes in equity 2015, 2016, 2017 | 6,919 | 360 | 3,193 | 10,472 | ||||||||
Equity at Dec. 31, 2017 | $ 623 | $ (2,887) | [3] | $ 7,309 | $ 280 | $ 785,725 | $ 791,050 | |||||
[1] | In connection with the Exchange Offer of 15 April 2016, the common shares were adjusted to reflect those of TORM plc. The adjustment with respect to the common shares reflects the change in currency of the shares changed from DKK to USD and the reduction in the nominal value of each share was reduced from DKK 15 each to USD 0.01 each. | |||||||||||
[2] | No income tax was incurred relating to other comprehensive income/(loss) items. | |||||||||||
[3] | Please refer to note 13 for further information on treasury shares. | |||||||||||
[4] | Relates to the squeeze-out of remaining minority shareholders in TORM A/S. | |||||||||||
[5] | Please refer to "Consolidated Statement of Comprehensive Income". |
CONSOLIDATED STATEMENT OF CHAN6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - Apr. 15, 2016 | $ / shares | kr / shares |
Statement of changes in equity [abstract] | ||
Par value of common shares (in DKK) | (per share) | $ 0.01 | kr 15 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENT - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOW FROM OPERATING ACTIVITIES | |||
Net profit/(loss) for the year | $ 2,407 | $ (142,491) | $ 125,983 |
Adjustments: | |||
Reversal of profit from sale of vessels (Note 23) | (2,762) | ||
Reversal of depreciation (Note 7) | 114,451 | 122,215 | 67,327 |
Reversal of impairment loss on tangible and intangible assets (Note 6, 7, 8) | 3,572 | 185,000 | |
Reversal of share of profit/(loss) from joint ventures | (3) | (176) | (202) |
Reversal of financial income (Note 9) | (4,255) | (2,814) | (992) |
Reversal of financial expenses (Note 9) | 40,601 | 37,333 | 16,926 |
Reversal of tax expenses (Note 12) | 777 | 760 | 1,041 |
Reversal of other non-cash movements (Note 24) | 3,696 | (7,114) | (874) |
Dividends received from joint ventures | 188 | 200 | |
Interest received and realized exchange gains | 1,641 | 2,735 | 624 |
Interest paid and realized exchange losses | (36,698) | (31,385) | (12,364) |
Income taxes paid | (586) | (1,430) | (584) |
Change in bunkers, receivables and payables, etc. (Note 24) | (12,996) | 8,322 | 16,870 |
Net cash flow from operating activities | 109,845 | 171,143 | 213,955 |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Investment in tangible fixed assets | (145,112) | (119,408) | (253,964) |
Cash from business combination | 77,544 | ||
Sale of tangible fixed assets (Note 23) | 31,382 | 17,640 | |
Net cash flow from investing activities | (113,730) | (119,408) | (158,780) |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Borrowing, mortgage debt | 175,377 | 49,256 | 93,100 |
Borrowing, sale and leaseback transactions | 30,195 | ||
Repayment/redemption, mortgage debt | (125,487) | (142,740) | (29,214) |
Repayment/redemption, finance lease liabilities | (16,724) | (3,410) | |
Dividend paid | (1,240) | (25,000) | |
Acquisition of outstanding shares in TORM A/S | (19,241) | ||
Shareholders' contribution | 14,040 | ||
Transaction costs share issue | (2,723) | ||
Purchase/disposal of treasury shares | (2,887) | (176) | |
Net cash flow from financing activities | 62,121 | (144,022) | 75,027 |
Net cash flow from operating, investing and financing activities | 58,236 | (92,287) | 130,202 |
Cash and cash equivalents as of 1 January | 75,971 | 168,258 | 38,056 |
Cash and cash equivalents as of 31 December | $ 134,207 | $ 75,971 | $ 168,258 |
ACCOUNTING POLICIES, CRITICAL A
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Accounting Policies Critical Accounting Estimates And Judgements [Abstract] | |
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | NOTE 1 – ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS OVERVIEW OF BUSINESS TORM plc is a shipping company, incorporated in the United Kingdom, which owns and operates a fleet of product tankers. Unless otherwise indicated, the terms "TORM plc," "we," "us," "our," the "Company" and the "Group" refer to TORM plc and its consolidated subsidiaries, which includes TORM A/S and its consolidated subsidiaries following the closing of the Exchange Offer (defined below). When used herein to describe events prior to the closing of the Exchange Offer, the terms "TORM A/S," "we," "us," "our," the "Company" and the "Group" refer to TORM A/S and its consolidated subsidiaries before such time. References to "Former TORM A/S" refer to TORM A/S and its consolidated subsidiaries prior to the Combination (defined below). On March 27, 2015, TORM A/S, a company organized under the laws of Denmark, Oaktree Capital Management L.P., or Oaktree, and certain of TORM A/S' lenders entered into a restructuring agreement to recapitalize TORM A/S. The agreement included a mandatory and an optional debt cancellation of a part of TORM A/S' debt and required that OCM Njord Holdings S.à r.l., or Njord Luxco, a subsidiary of Oaktree, contribute OCM (Gibraltar) Njord Midco Ltd., or Njord, to TORM A/S in exchange for shares in TORM A/S. We refer to this transaction as the "Combination." The Combination was completed on July 13, 2015, the date on which Njord was transferred to TORM A/S, and comprised a part of a series of transactions, discussed more fully herein, which together we refer to as the "2015 Restructuring." We refer to the consummation of the 2015 Restructuring on July 13, 2015 as the Restructuring Completion Date. The Combination was accounted for as a reverse acquisition, based on guidance in IFRS 3 "Business Combinations", under the acquisition method of accounting, with Njord considered to be the accounting acquirer of TORM A/S and the continuing reporting entity, though TORM A/S continued as the legal entity (we refer to Njord and Former TORM A/S, including their respective subsidiaries, together as the "Combined Group"). This was largely due to the fact that following the acquisition, Njord Luxco held 62% of the voting rights in TORM A/S (excluding the additional voting rights associated with the TORM A/S C-share, which relates to election and dismissal of members of our Board of Directors and certain amendments to our Articles of Association), was exposed to variable returns from involvement with the Combined Group and had the ability to use its control to affect the amount of the Group's return. On 15 April 2016, a new corporate structure was established, whereby TORM plc effectively acquired all of the outstanding A-shares of TORM A/S (referred to herein as Danish A-shares) in exchange for TORM plc's securities. A total of 97.6% of TORM A/S' shareholders exchanged their shareholdings to TORM plc, and TORM plc acquired the remaining 2.4% shares from TORM A/S' minority shareholders in a statutory squeeze-out transaction under the Danish Companies Act for a total cash consideration of USD 19.2m. In addition and in connection with the exchange of the Danish A-shares, all TORM A/S warrant holders exchanged their warrants on a one-for-one basis for warrants of TORM plc. We refer to these transactions collectively as the "Exchange Offer." On 19 April 2016, upon the closing of the Exchange Offer, TORM plc became the Group's publicly-held parent company incorporated under the laws of England and Wales. We refer to this as the "Redomiciliation". The Redomiciliation was accounted for as an internal reorganization of entities under common control and, therefore, the assets and liabilities of TORM A/S were accounted for at their historical cost basis and not revalued in the transaction. The Corporate Reorganization is accounted for as a capital restructuring, where the assets and liabilities of TORM A/S and its subsidiaries are accounted for at their historical cost basis and not revalued at market value. The consolidated financial statements for the TORM Group are presented in the legal name of TORM plc, but are a continuation of the financial statements of TORM A/S with a retroactive adjustment of the legal capital of the legal parent (TORM plc). The consolidated financial results reflect the activities for TORM A/S only for 2015 and the period from 1 January 2016 until 15 April 2016, whereas the remaining period of 2016 and all of 2017 reflects the combined activity of TORM plc and TORM A/S. The impact on equity in 2016 of the Corporate Reorganization reflected the accumulated deficit of TORM plc at that date and the squeeze-out transaction impact of USD 19.2m. TORM plc is listed on the stock exchange NASDAQ Copenhagen, Denmark and on NASDAQ New York, United States. BASIS OF PREPARATION The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the EU and as issued by the International Accounting Standards Board ("IASB"). The consolidated financial statements have been prepared on a going concern basis and under the historical cost convention except where fair value accounting is specifically required by IFRS. The functional currency is USD, and the Company applies USD as presentation currency in the preparation of the consolidated financial statements. GOING CONCERN As of 31 December 2017, TORM's cash position was USD 134m, TORM's net debt was USD 620m (of which USD 271m was undrawn) and the net interest-bearing debt loan-to-value ratio was 55.8%. In January 2018 the Group's financial position was further strengthened via an equity raise of USD 100m. Further information on the Group's objectives and policies for managing its capital, its financial risk management objectives and its exposure to credit and liquidity risk can be found in note 20 to the financial statements. The Group monitors its funding position throughout the year to ensure that it has access to sufficient funds to meet its forecast cash requirements, including newbuilding and loan commitments, and to monitor compliance with the financial covenants within its loan facilities, details of which are in note 2 to the financial statements. Sensitivity calculations are run to reflect different scenarios including, but not limited to, future freight rates and vessel valuations in order to identify risks to future liquidity and covenant compliance and to enable Management to take corrective actions, if required. The Board of Directors has considered the Group's cash flow forecasts and the expected compliance with the Company's financial covenants for a period of not less than 12 months from the date of approval of these financial statements. Based on this review, the Board of Directors has a reasonable expectation that, taking into account reasonably possible changes in trading performance and vessel valuations, the Group will be able to continue in operational existence and comply with its financial covenants for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis in preparing its financial statements. ADOPTION OF NEW OR AMENDED IFRSS TORM has implemented the following standard amendments issued by IASB and adopted by the EU and the interpretations in the consolidated financial statements for 2017: · Amendments to IAS 7: "Disclosure initiative" · Amendments to IAS 12 "Recognition of Deferred Tax Assets for Unrealised Losses" · Amendments to IFRS 12 included in Annual Improvements to IFRS Standards 2014-2016 Cycle The implementation of the standard amendments and improvements had no significant impact on the Group's financial statements. ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED IASB has issued a number of new or amended accounting standards (IFRS) and interpretations (IFRIC) that have not yet come into effect: · Amendments to IFRS 2 "Classification and Measurement of Share-based Payment Transactions". Effective date is 1 January 2018. The Company has evaluated the impact of this standard on the financial statements as insignificant. · IFRS 9 "Financial Instruments". The effective date of the standard is 1 January 2018. The standard and subsequent amendments will substantially change the classification and measurement of financial instruments and hedging requirements. Furthermore, IFRS 9 changes the recognition of credit losses from "incurred losses" to "expected losses". TORM has assessed the new requirement and concludes that the effect of the change will be insignificant, as TORM historically has had very limited actual incurred losses on receivables. The changes in the standard regarding classification will not change the measurement of the majority of financial assets from amortized cost except from derivatives that also under IFRS 9 will be measured at fair value through profit & loss unless cash flow hedge accounting is applied. · IFRS 15 "Revenue from Contracts with Customers". The effective date is 1 January 2018. The standard will change the recognition pattern of revenue. The change in revenue recognition will go from recognizing from "discharge-to-discharge" to "load-to-discharge". The cumulative effect of adopting the standard as at 1 January 2018 was a reduction in total equity of USD 1m. As this is not considered material the impact will be reflected in the results of the group for the year ending 31 December 2018 and prior periods will not be restated. · IFRS 16 "Leases". The effective date is 1 January 2019. The standard will change the recognition of leases. The standard is not expected to have a material impact on the TORM Group as TORM mainly operates owned vessels. It will however result in a right of use asset and related lease liability being recorded for certain (mostly property related) leases which are currently treated as operating leases. It will also result in a reclassification of costs associated with these operating leases from "Administrative expenses" (operating leases) to either "Depreciations" or "Financial expenses". ACCOUNTING POLICIES Consolidation principles The consolidated financial statements comprise the financial statements of the Parent Company, TORM plc, and entities controlled by the Company and its subsidiaries. Control is achieved when the Company: · has the power over the investee; and · is exposed, or has the right to variable returns from involvement with the investee; and · has the ability to use its power to affect its returns The Company should reassess whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities unilaterally. The Company considers all facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including: · the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders · potential voting rights held by the Company, other vote holders or other parties · rights arising from other contractual arrangements, and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time when decisions need to be made, including voting pattern at previous shareholders' meetings Entities in which the Group exercises significant but not controlling influence are regarded as associated companies and are accounted for using the equity method. Companies which are managed jointly by agreement with one or more companies and therefore are subject to joint control (joint ventures) are accounted for using the equity method. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ends when the Company loses control over the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated income statement and other comprehensive income from the date on which the Company obtains control until the date when the Company loses control over the subsidiary. The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company, its subsidiaries and the Company's share of the income statement and balance sheet of joint operations by combining items of a uniform nature and eliminating intercompany transactions, balances and shareholdings as well as realized and unrealized gains and losses on transactions between the consolidated entities. The financial statements used for consolidation purposes are prepared in accordance with the Company's accounting policies. The consolidated financial statements following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but as a continuation of the financial statements of the legal subsidiary (accounting acquirer). The accounting acquirer's legal capital is adjusted retrospectively to reflect the legal capital of the accounting acquiree. Comparative information is adjusted accordingly. Business combinations Newly acquired or formed entities are recognized in the consolidated financial statements from the date of acquisition or formation. The date of acquisition is the date on which control over the entity is effectively transferred. Business combinations are accounted for by applying the purchase method, whereby the acquired entities' identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. The tax effect of the revaluation activities is also taken into account. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the amount of that adjustment is included in the cost of the combination if the event is probable and the adjustment can be measured reliably. Costs of issuing debt or equity instruments in connection with a business combination are accounted for together with the debt or equity issuance. All other costs associated with the acquisition are expensed in the income statement. In reverse acquisitions the purchase price of a business combination is measured as the fair value of the consideration agreed upon. The purchase price in a reverse acquisition is calculated as the fair value of the interest in the accounting acquirer that the existing shareholders of the accounting acquiree would have received, had the business combination not been a reverse acquisition. The excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities is recognized as goodwill under intangible assets and is tested for impairment at least once every year. Upon acquisition, goodwill is allocated to the cash generating units, which subsequently form the basis for the impairment test. If the fair value of the acquired assets, liabilities and contingent liabilities exceeds the cost of the business combination, the identification of assets and liabilities and the processes of measuring the fair value of the assets and liabilities and the cost of the business combination are reassessed. If the fair value of the business combination continues to exceed the cost, the resulting gain is recognized in the income statement. Foreign currencies The functional currency of all significant entities, including subsidiaries and associated companies, is United State dollars (USD), because the Company's vessels operate in international shipping markets, in which income and expenses are settled in USD, and because the Companies most significant assets and liabilities in the form of vessels and related liabilities are denominated in USD. Transactions in currencies other than the functional currency are translated into the functional currency at the transaction date. Cash, receivables and payables and other monetary items denominated in currencies other than the functional currency are translated into the functional currency at the exchange rate at the balance sheet date. Gains or losses due to differences between the exchange rate at the transaction date and the exchange rate at the settlement date or the balance sheet date are recognized in the income statement under "Financial income" and "Financial expenses". An exchange rate gain or loss relating to a non-monetary item carried at fair value is recognized in the same line as the fair value adjustment. The reporting currency of the Company is USD. Upon recognition of entities with functional currencies other than USD, the financial statements are translated into USD. Income statement items are translated into USD at the average exchange rates for the year, whereas balance sheet items are translated at the exchange rates as of the balance sheet date. Exchange differences arising from the translation of financial statements into USD are recognized as a separate component through other comprehensive income. On the disposal of an entity, the cumulative amount of the exchange differences recognized in the separate component of equity relating to that entity is transferred to the income statement as part of the gain or loss on disposal. Derivative financial instruments Derivative financial instruments, primarily forward currency exchange contracts, forward freight agreements and forward contracts regarding bunker purchases, are entered to hedge future committed or anticipated transactions. TORM applies hedge accounting under the specific rules on cash flow hedges when appropriate. Derivative financial instruments are initially recognized in the balance sheet at fair value at the date when the derivative contract is entered into and are subsequently measured at their fair value as other receivables or other liabilities, respectively. Changes in the fair value of derivative financial instruments that are designated as cash flow hedges and deemed to be effective are recognized directly in "Other comprehensive income". When the hedged transaction is recognized in the income statement, the cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement and included in the same line as the hedged transaction. However, when the hedged transaction results in the recognition of a fixed asset, the gains and losses previously accumulated in "Other comprehensive income" are transferred from "Other comprehensive income" and included in the initial measurement of the cost of the fixed asset. Changes in the fair value of a portion of a hedge deemed to be ineffective are recognized in the income statement. Changes in the fair value of derivative financial instruments that are not designated as hedges are recognized in the income statement. While effectively reducing cash flow risk in accordance with the Company's risk management policy, interest rate swaps with cap features and certain forward freight agreements and forward contracts regarding bunker purchases do not qualify for hedge accounting. Changes in fair value of these derivate financial instruments are therefore recognized in the income statement under "Financial income" or "Financial expenses" for interest rate swaps with cap features, under "Revenue" for forward freight agreements and under "Port expenses, bunkers and commissions" for forward bunker contracts. Segment information In 2015, TORM consisted of two business segments: The Tanker Segment and Bulk Segment. Due to divestment of the Bulk Segment during 2015, only the Tanker Segment remains for 2016 and 2017. The segmentation is based on the Group's internal management and reporting structure. In the Tanker Segment, the services provided primarily comprise transportation of refined oil products such as gasoline, jet fuel and naphtha. The Group has only one geographical segment, because the Company considers the global market as a whole, and as the individual vessels are not limited to specific parts of the world. Furthermore, the internal management reporting does not provide such information. Consequently, it is not possible to provide geographical segment information on revenue from external customers or non-current segment assets. The segment income statement comprises income and expenses which are directly attributable to the segment. Not allocated items primarily comprise assets and liabilities as well as revenues and expenses relating to the Company's administrative functions and investment activities, including cash and bank balances, interest-bearing debt, income tax, deferred tax, etc. The accounting policies applied for the segments regarding recognition and measurement are consistent with the policies for TORM as described in this note. Employee benefits Wages, salaries, social security contributions, holiday and sick leave, bonuses and other monetary and non-monetary benefits are recognized in the year in which the employees render the associated services. Please also refer to the accounting policy for share-based payment. Pension plans The Group has entered into defined contribution plans only. Pension costs related to defined contribution plans are recorded in the income statement in the year to which they relate. Leases Agreements to charter in vessels and to lease other plant and operating equipment for which TORM substantially has all the risks and rewards of ownership are recognized in the balance sheet as finance leases. Lease assets are measured at the lower of fair value and the present value of minimum lease payments determined in the leases. For the purpose of calculating the present value, the interest rate implicit in the lease or an incremental borrowing rate is used as discount factor. The lease assets are depreciated and written down under the same accounting policy as the vessels owned by the Company or over the lease period depending on the lease terms. The corresponding lease obligation is recognized as a liability in the balance sheet, and the interest element of the lease payment is charged to the income statement as incurred. Other charter agreements concerning vessels and other leases are classified as operating leases, and lease payments are charged to the income statement on a straight-line basis over the lease term. The obligation for the remaining lease term is disclosed in the notes to the financial statements. Agreements to charter out vessels for which substantially all the risks and rewards of ownership are transferred to the lessee are classified as finance leases, and an amount equal to the net investment in the lease is recognized and presented in the balance sheet as a receivable. The carrying amount of the vessel is derecognized, and any gain or loss on disposal is recognized in the income statement. Other agreements to charter out vessels are classified as operating leases, and lease income is recognized in the income statement on a straight-line basis over the lease term. INCOME STATEMENT Revenue Income is recognized in the income statement when: · The income generating activities have been carried out on the basis of a binding agreement · The income can be measured reliably · It is probable that the economic benefits associated with the transaction will flow to the Company · Costs relating to the transaction can be measured reliably Revenue comprises freight, charter hire and demurrage revenues from the vessels and gains and losses on forward freight agreements designated as hedges. Revenue is recognized when it meets the general criteria mentioned above, and when the stage of completion can be measured reliably. Accordingly, freight, charter hire and demurrage revenue are recognized at selling price upon delivery of the service as per the charter parties concluded. Cross-over voyages Revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. For cross-over voyages (voyages in progress at the end of a reporting period), the uncertainty and the dependence on estimates are greater than for finalized voyages. The Company recognizes a percentage of the estimated revenue for the voyage equal to the percentage of the estimated duration of the voyage completed at the balance sheet date. The estimate of revenue is based on the expected duration and destination of the voyage. Voyage expenses are recognized as incurred. When recognizing revenue, there is a risk that the actual number of days it takes to complete the voyage will differ from the estimate, and for time charter parties a lower day rate may have been agreed for additional days. The contract for a single voyage may state several alternative destination ports. The destination port may change during the voyage, and the rate may vary depending on the destination port. Changes to the estimated duration of the voyage as well as changing destinations and weather conditions will affect the voyage expenses. Demurrage revenue Freight contracts contain conditions regarding the amount of time available for loading and discharging of the vessel. If these conditions are breached, TORM is compensated for the additional time incurred in the form of demurrage revenue. Demurrage revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. Upon completion of the voyage, the Company assesses the time spent in port, and a demurrage claim based on the relevant contractual conditions is submitted to the charterers. The claim will often be met by counterclaims due to differences in the interpretation of the agreement compared to the actual circumstances of the additional time used. Based on previous experience, 95% of the demurrage claim submitted is recognized as demurrage revenue upon initial recognition. The Company receives the demurrage payment upon reaching final agreement on the amount, which on average is approximately 100 days after the original demurrage claim was submitted. Any adjustments to the final agreement are recognized as demurrage revenue. Port expenses, bunkers and commissions Port expenses, bunker fuel consumption and commissions are recognized as incurred. Gains and losses on forward bunker contracts designated as hedges and write-down and provisions for losses on freight receivables are included in this line. Freight and bunker derivatives Freight and bunker derivatives comprise fair value adjustments and gains and losses on forward freight agreements, forward bunker contracts and other derivative financial instruments directly relating to shipping activities which are not designated as hedges. The freight and bunker derivatives that qualify for hedge accounting are recognized in Revenue and Port expense, bunkers and commissions respectively, as the hedging instrument is realized. Charter hire Charter hire comprises expenses related to the chartering in of vessels under operating leases which have been incurred in order to achieve the net revenue for the year. Operating expenses Operating expenses, which comprise crew expenses, repair and maintenance expenses and tonnage duty, are expensed as incurred. Profit from sale of vessels Profit from sale of vessels is recognized when the significant risks and rewards of ownership have been transferred to the buyer, representing the difference between the sales price less cost to sell and the carrying value of the vessel. Administrative expenses Administrative expenses, which comprise administrative staff costs, management costs, office expenses and other expenses relating to administration, are expensed as incurred. Other operating expenses Other operating expenses primarily comprise chartering commissions and management fees paid to commercial and technical managers for managing the fleet and to a lesser extent profits and losses deriving from the disposal of other plant and operating equipment. Depreciation and impairment losses Depreciation and impairment losses comprise depreciation of tangible fixed assets for the year as well as the write-down of the value of assets by the amount by which the carrying amount of the asset exceeds its recoverable amount. In the event of indication of impairment, the carrying amount is assessed, and the value of the asset is written down to its recoverable amount equal to the higher of value in use based on net present value of future earnings from the assets and its fair value less cost to sell. Financial income Financial income comprises interest income, realized and unrealized exchange rate gains relating to transactions in currencies other than the functional currency, realized gains from other equity investments and securities, unrealized gains from securities, dividends received and other financial income including value adjustments of certain financial instruments not accounted for as hedges of future transactions. Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate. Dividends from other investments are recognized when the right to receive payment has been decided, which is typically when the dividend has been declared and can be received without conditions. Financial expenses Financial expenses comprise interest expenses, financing costs of finance leases, realized and unrealized exchange rate losses relating to transactions in currencies other than the functional currency, realized losses from other equity investments and securities, unrealized losses from securities and other financial expenses including value adjustments of certain financial instruments not accounted for as hedges of future transactions. Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate. Tax Tax expenses comprise the expected tax including tonnage tax on the taxable income for the year for the Group, adjustments relating to previous years and the change in deferred tax for the year. However, tax relating to items in other comprehensive income is recognized directly in the statement of other comprehensive income. BALANCE SHEET Goodwill Goodwill is measured as the excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities and is recognized as an asset under intangible assets. Goodwill is not amortized as it is considered to have an indefinite useful life, but the recoverable amount of goodwill is assessed at least once a year. For impairment testing purposes, goodwill is on initial recognition allocated to the cash generating unit expected to benefit from the synergies of the combination. If the recoverable amount of the cash generating unit is less than the carrying amount of the unit, the impairment loss is first allocated to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss for goodwill is not reversed in a subsequent period. Vessels Vessels are measured at cost less accumulated depreciation and accumulated impairment losses. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use, including interest expenses incurred during the period of construction based on the loans obtained for the vessels. All major components of vessels except for dry-docking costs are depreciated on a straight-line basis to the estimated residual value over their estimated useful lives, which TORM estimates to be 25 years. The Company considers that a 25-year depreciable life is consistent with what is used by other shipowners with comparable tonnage. Depreciation is based on cost less the estimated residual value. Residual value is estimated as the lightweight tonnage of each vessel multiplied by scrap value per ton. The useful life and the residual value of the vessels are reviewed at least at each financial year-end based on market conditions, regulatory requirements and the Company's business plans. The Company also evaluates the carrying amounts to determine if events have occurred that indicate impairment and would require a modification of the carrying amounts. Prepayment on vessels is measured at costs incurred. Dry-docking Approximately every 30 and 60 months, depending on the nature of work and external requirements, the vessels |
LIQUIDITY, CAPITAL RESOURCES AN
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Information About Understanding Financial Position Liquidity Of Entity And Events After Reporting Date [Abstract] | |
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS | NOTE 2 – LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS LIQUIDITY AND CAPITAL RESOURCES As of 31 December 2017, TORM's cash position totaled USD 134m (2016: USD 76m; 2015: USD 168m) and undrawn credit facilities amounted to USD 271m (2016: USD 190m; 2015: USD 75m). The undrawn credit facilities consisted of a USD 75m Working Capital Facility, a bilateral USD 115m facility with China Export-Import Bank and a bilateral USD 81m facility with Danish Ship Finance. TORM had ten newbuildings on order for delivery in 2018-2019 (2016: four; 2015: seven). The total outstanding CAPEX related to these newbuildings was USD 307m (2016: USD 149m; 2015: USD 224m) and is mainly financed by the undrawn facilities with China Export-Import Bank and Danish Ship Finance. TORM has a Term Facility I of USD 401m and an undrawn Working Capital Facility of USD 75m both with maturity in 2021. In addition to the Term Facility I and the Working Capital Facility, TORM has a Term Facility II of USD 115m with maturity in 2022 and bilateral loan agreements with Danish Ship Finance of USD 158m maturing in 2022 and with ING of USD 46m maturing in 2024. As of 31 December 2017, the scheduled minimum payments on mortgage debt and bank loans in 2018 were USD 93m. TORM's bank debt facilities include financial covenants related to: · Minimum liquidity including committed credit lines · Minimum cash · Loan-to-value · Equity ratio During 2017, 2016 and 2015, TORM did not have any covenant breaches. SUBSEQUENT EVENTS On 12 January 2018, TORM took delivery of the newbuilding TORM Herdis,(hull no. 15121049), a 114,000 DWT LR2 tanker from Guangzhou Shipyard International. On 22 January 2018, TORM secured commitment from ABN AMRO for attractive vessel financing of up to USD 50m regarding the two LR1 tanker newbuilding options exercised in December 2017. TORM expects the two LR1 newbuildings to be delivered in 2019 throughout the first quarter of 2020. On 23 January 2018, TORM plc announced the USD 100m Private Placement by issuing 11,920,000 new A-shares. The related capital increase was filed on 26 January 2018 with the UK Companies House. After the capital increase, TORM's share capital amounts to a total nominal value of USD 742,188.48 divided into 74,218,846 A-shares of USD 0.01 each, one B-share of USD 0.01 and one C-share of USD 0.01. On 26 January 2018, TORM delivered the Handysize tanker TORM Rhone to its new owner. In the financial statements, TORM Rhone is treated as an asset held-for-sale. The delivery results in a net profit from sale of vessels in TORM of USD 0.6m in 2018. On 9 February 2018, TORM took delivery of the newbuilding TORM Hermia (hull no. 15121050), a 114,000 DWT LR2 tanker from Guangzhou Shipyard International. |
CONSOLIDATED SEGMENT INFORMATIO
CONSOLIDATED SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of operating segments [abstract] | |
CONSOLIDATED SEGMENT INFORMATION | NOTE 3 – CONSOLIDATED SEGMENT INFORMATION 2015 USDm Tanker Segment Bulk Segment Not allocated Total Income Statement Revenue 538.7 1.7 - 540.4 Port expenses, bunkers and commissions -169.2 -0.5 - -169.7 Charter hire -11.1 -0.9 - -12.0 Operating expenses -121.7 -1.2 - -122.9 Administrative expenses - - -19.5 -19.5 Other operating expenses - - -6.3 -6.3 Share of profit/(loss) from joint ventures - - 0.2 0.2 Impairment losses on tangible and intangible assets - - - - Depreciation -67.1 -0.2 - -67.3 Operating profit/(loss) (EBIT) 169.6 -1.0 -25.6 143.0 Financial income - - 1.0 1.0 Financial expenses - - -16.9 -16.9 Profit/(loss) before tax 169.6 -1.0 -41.5 127.1 Tax - - -1.0 -1.0 Net profit/(loss) for the year 169.6 -1.0 -42.5 126.1 In 2015 TORM consisted of two business segments: The Tanker Segment and the Bulk Segment. Due to the divestment of the Bulk Segment in 2015, only the Tanker Segment remains for 2016 and 2017, and thus no segment information has been presented for 2017 and 2016. During 2015, there have been no transactions between the Tanker and the Bulk Segments, and therefore all revenue derives from external customers. As the Company considers the global market as a whole, and as the individual vessels are not limited to specific parts of the world, the Group has only one geographical segment. |
STAFF COSTS
STAFF COSTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Employee Benefits [Abstract] | |
STAFF COSTS | NOTE 4 – STAFF COSTS USDm 2017 2016 2015 Total staff costs Staff costs included in operating expenses 9.2 9.9 9.7 Staff costs included in administrative expenses 34.6 31.0 14.2 Total 43.8 40.9 23.9 Staff costs comprise the following Wages and salaries 36.4 32.3 22.4 Share-based compensation 1.9 2.0 - Pension costs 3.1 3.6 1.4 Other social security costs 0.3 0.4 0.1 Other staff costs 2.1 2.6 - Total 43.8 40.9 23.9 Average number of permanent employees Seafarers 130.6 137.0 65.0 Land-based 286.6 269.1 133.0 Total 417.2 406.1 198.0 Employee information The majority of the staff on vessels are not employed by TORM. Staff costs included in operating expenses relate to the 131 seafarers (2016: 137, 2015: 65). The average number of employees is calculated as a full-time equivalent (FTE). The Executive Director is, in the event of termination by the Company, entitled to a severance payment of up to 12 months' salary. USD '000 2017 2016 2015 ⁵⁾ Non-Executive Board and Committee Remuneration, Short term Cheam Directors Limited ¹ ⁾ - - 3 Christopher H. Boehringer 290 237 88 Kari Millum Gardarnar ² ⁾ ⁾⁴⁾ - - 31 Rasmus Johannes Hoffmann ² ⁾ ⁾ - - 29 Flemming Ipsen ² ⁾ - - 38 Olivier Dubois ² ⁾ - - 17 Alexander Green ² ⁾ - - 19 Jon Syvertsen ² ⁾ - - 19 David Weinstein 174 131 48 Torben Janholt 174 131 48 Göran Trapp 174 158 58 Jeffery Stein ² ⁾ ⁾ - - 7 Total 812 657 405 ¹ ⁾ ² ⁾ ³ ⁾ 4) ⁵⁾ Executive Management USD '000 Salary Taxable benefits Annual performance bonus Transaction bonus Total Executive Management Remuneration Jacob Meldgaard 2015, TORM A/S¹ ⁾ 362 19 144 345 870 2016, TORM A/S - restated ¹ ⁾ ⁾ 834 41 559 - 1,434 2016, TORM plc¹ ⁾ 39 - - - 39 2017, TORM A/S¹ ⁾ 923 42 580 - 1,545 2017, TORM plc¹ ⁾ 81 - - - 81 ¹ ⁾ ² ⁾ Senior Management Team The aggregate compensation paid by the Group to the other members of the Senior Management Team (excluding Mr. Meldgaard) was USD 1,625,425 (2016: USD 1,735,563, 2015: USD 2,944,715), which includes an aggregate of USD 112,236 (2016: USD 93,163, 2015: USD 180,354) allocated for pensions for these individuals. RSU LTIP grant Exercise price per share ¹ ⁾ RSU grant value assuming 100% vesting LTIP element of Jacob Meldgaard's remuneration package 2017: Jacob Meldgaard ² ⁾ 1,276,273 DKK 96.3 USD 3.4m ¹ ⁾ in September 2016. Further adjusted in December 2017 to DKK 93.5 due to dividend payment in September 2017. ² ⁾ January 2016. Therefore there is no minimum or maximum for 2017. TORM has in accordance with its Remuneration Policy granted the CEO a number of Restricted Share Units (RSUs), which was communicated in company announcement no. 2 dated 18 January 2016. There are no performance conditions associated with this grant of RSUs. The RSUs granted to the CEO will vest over a five-year period, with one fifth of the grant amount vesting at each anniversary during the five-year period. As at 1 January 2017, one fifth of the grant amounting to 255,345 RSUs vested, and as at 31 December 2017, the exercise period relating to those vested RSUs expired. The total value of the RSU allocation is calculated based on the Black-Scholes model and is included in the overall cost estimate for the Company's Long-Term Incentive Program (cf. company announcements dated 18 January and 8 March 2016). The total number of securities granted was 1,276,725 (assuming 100% vesting). No further grants were made to the CEO during 2017. As of 31 December 2017, 1,021,380 RSUs remain. The value of the grant, USD 3.4m, is based on the Black-Scholes model with an exercise price of DKK/share 96.3, a market value of one TORM A-share of DKK 84.05 (the closing price on 15 January 2016) and assuming 100% vesting. Subsequently, the exercise price was adjusted on 13 December 2016 to DKK 93.6 due to the dividend payment in September 2016. The exercise price was further adjusted in December 2017 to DKK 93.5 due to the dividend payment in September 2017. Long-term employee benefit obligations The obligation comprises an obligation under the incentive programs to deliver Restricted Share Units (RSUs) in TORM plc at a determinable price to the entity's key personnel. The RSUs granted entitle the holder to acquire one TORM A-share. The program was established during the year and comprises the following number of shares in TORM plc: Number of shares (1,000) 2017 2016 2015 Outstanding 1 January 1,999.8 - - Granted during the period 866.6 2,127.4 - Exercised during the period - - - Expired during the period -233.9 - - Forfeited during the period -21.3 -127.6 - Outstanding 31 December 2,611.2 1,999.8 - Exercisable 31 December 255.3 538.9 - The vesting period of the program is three years for key employees and five years for the Executive Director. The exercise price is set to DKK 93.5. The exercise period is six months after the vesting date for key employees and twelve months after the vesting date for the Executive Director. The fair value of the options granted in 2017 was determined using the Black-Scholes valuation model and is not material. |
REMUNERATION TO AUDITORS APPOIN
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | 12 Months Ended |
Dec. 31, 2017 | |
Auditor's remuneration [abstract] | |
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | NOTE 5 — REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING USDm 2017 2016 2015 Audit fees Fees payable to the Company's auditor for the audit of the Company's annual accounts 0.4 0.4 0.2 Audit of the Company's subsidiaries pursuant to legislation 0.2 0.1 0.1 Total audit fees 0.6 0.5 0.3 Non-audit fees Audit related services 0.4 0.6 1.1 Tax services - 0.3 0.5 Other services - 0.1 0.2 Total non-audit fees 0.4 1.0 1.8 Total 1.0 1.5 2.1 Under SEC regulations, the remuneration of the auditor of USD 1.0m (2016: USD 1.5m, 2015: USD 2.1m) is required to be presented as follows: Audit USD 0.6m (2016: USD 0.5m, 2015: USD 0.3m), other audit-related USD 0.4m (2016: USD 0.6m, 2015: USD 1.1m), tax USD 0.0m (2016: USD 0.3m, 2015: USD 0.5m) and all other fees USD 0.0m (2016: USD 0.1m, 2015: USD 0.2). Our Audit Committee pre-approves all audit, audit-related and non-audit services not prohibited by law to be performed by our independent auditors and associated fees prior to the engagement of the independent auditor with respect to such services. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS USDm 2017 2016 2015 Goodwill Cost: Balance as of 1 January 11.4 11.4 - Additions during the year - - 11.4 Balance as of 31 December 11.4 11.4 11.4 Impairment losses: Balance as of 1 January -11.4 - - Impairment losses for the year - -11.4 - Balance as of 31 December -11.4 -11.4 - Carrying amount as of 31 December - - 11.4 Goodwill is related to the reverse acquisition of TORM A/S in 2015 and has been allocated to the Tanker Segment. |
TANGIBLE FIXED ASSETS
TANGIBLE FIXED ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
TANGIBLE FIXED ASSETS | NOTE 7 – TANGIBLE FIXED ASSETS USDm 2017 2016 2015 Vessels and capitalized dry-docking Cost: Balance as of 1 January 1,697.4 1,567.5 530.1 Additions 103.1 40.8 112.0 Additions from business combinations - - 857.4 Disposals -14.3 -16.3 -18.6 Transferred to/from other items - 105.4 104.6 Transferred to assets held-for-sale -59.6 - -18.0 Balance as of 31 December 1,726.6 1,697.4 1,567.5 Depreciation: Balance as of 1 January 180.0 75.5 27.9 Disposals -14.3 -15.9 -18.6 Depreciation for the year 113.6 120.4 66.5 Transferred to assets held-for-sale -20.8 - -0.3 Balance as of 31 December 258.5 180.0 75.5 Impairment: Balance as of 1 January 173.6 - - Impairment losses on tangible fixed assets - 173.6 - Balance as of 31 December 173.6 173.6 - Carrying amount as of 31 December 1,294.5 1,343.8 1,492.0 Of which finance leases as of 31 December 28.6 12.4 13.1 USDm 2017 2016 2015 Prepayments on vessels Balance as of 1 January 44.1 72.6 34.7 Additions 44.3 76.9 142.5 Transferred to/from other items - -105.4 -104.6 Balance as of 31 December 88.4 44.1 72.6 Carrying amount as of 31 December 88.4 44.1 72.6 USDm 2017 2016 2015 Other plant and operating equipment Cost: Balance as of 1 January 2.7 3.2 - Additions 1.0 1.1 0.9 Additions from business combinations - - 2.5 Disposals -0.1 -1.6 -0.2 Balance as of 31 December 3.6 2.7 3.2 Depreciation: Balance as of 1 January 0.9 0.7 - Disposals -0.1 -1.6 -0.2 Depreciations for the year 0.9 1.8 0.9 Balance as of 31 December 1.7 0.9 0.7 Carrying amount as of 31 December 1.9 1.8 2.5 Of which finance leases as of 31 December - - - Included in the carrying amount for "Vessels and capitalized dry-docking" are capitalized dry-docking costs in the amount of USD 68.1m (2016: USD 80.4m, 2015: USD 81.7m). For information on assets used as collateral security, please refer to note 16. Please refer to note 8 for information on impairment testing. The depreciation expense related to "Other plant and operating equipment" of USD 0.9m relates to "Administrative expense" (2016: USD 1.8m, 2015: USD 0.9m). Depreciations and impairment losses on tangible fixed assets on "Vessels and capitalized dry-docking" relate to operating expenses. |
IMPAIRMENT TESTING
IMPAIRMENT TESTING | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [abstract] | |
IMPAIRMENT TESTING | NOTE 8 – IMPAIRMENT TESTING As of 31 December 2017, Management performed an impairment test of the recoverable amount of significant assets within the cash-generating unit — the Tanker Segment. The recoverable amount of the Tanker Segment was based on its value in use. Management concluded that the impairment test did not provide the basis for any impairment or reversal of the impairment recorded in 2016, as the value in use was materially equivalent to the carrying amount. The assessment of the value in use of the Tanker Segment was based on the present value of the expected future cash flows. The freight rate estimates in the period 2018-2020 are based on the Company's business plans. Beyond 2020, the freight rates are based on TORM's 10-year historical average rates, amended to reduce strong rates in 2008, and also adjusted for inflation. The approach used for long-term freight rates outlined above represents a change in estimates, as in previous years the long-term freight rates have been based on the 10-year historical average rates from Clarksons . From the year ended 31 December 2017 and going forward TORM has decided to use its own historical average rates, rather than the ones from Clarksons, as it has been concluded, following detailed analysis, that they are better estimates of the future earnings potential of TORM as they reflect TORM's actual trading pattern and routes which differ to the benchmarks used by Clarksons, in addition to reflecting operating efficiencies that TORM is able to achieve due to the size and interdependency of its fleet. TORM has historically continuously performed at or higher than the Clarksons benchmark. The effect of the change in estimate of long-term freight rates on the year end impairment test was to significantly increase the value in use of the Tanker Segment, as of 31 December 2017. However, if the lower Clarksons rates were applied instead of TORM's the impairment charge arising in the current year would have been capped at USD 20m based on the fair value less cost to sell of the Tanker Segment, as indicated by a range of market valuations from independent shipbrokers. The discount rate used in the value in use calculation is based on a Weighted Average Cost of Capital (WACC) of 8.7% as of 31 December 2017 (2016: 8.8%, 2015: 8.3%) . WACC is calculated by using a standard WACC model in which cost of equity, cost of debt and capital structure are the key parameters. As of 31 December 2017, the amended 10-year historical average spot freight rates used in the value in use calculation are as follows: · LR2 USD/day 17,216 (2016: USD/day 20,176, 2015: USD/day 21,975) · LR1 USD/day 16,445 (2016: USD/day 17,124, 2015: USD/day 18,900) · MR USD/day 15,794 (2016: USD/day 15,118, 2015: USD/day 16,948) · Handysize USD/day 14,416 (2016: USD/day 15,203, 2015: USD/day 17,868) Operating expenses and administrative expenses are estimated based on TORM's business plans for the period 2018-2020. Beyond 2020, operating expenses are adjusted for 3% (2016: 2%) inflation and administrative expenses are adjusted for 2% inflation (2016: 2%). The product tankers are expected to generate normal income for 25 years from delivery from the shipyard. Given the current age profile of the tanker fleet, the average remaining life would be approximately 14 years. The calculation of the value in use is sensitive to changes in the key assumptions which are related to the future development in freight rates, the WACC applied as discounting factor in the calculations and the development in operating expenses. All other things being equal, the sensitivities to the value in use have been assessed as follows: · A decrease/increase in the tanker freight rates of USD/day 1,000 would result in in a decrease/increase in the value in use of USD 241m. · An increase/decrease in WACC of 1.0% would result in a decrease/increase in the value in use of USD 100-112m. · An increase/decrease in operating expenses of 10.0% would result in a decrease/increase in the value in use of USD 187m. However, if the downside sensitivities outlined above had been applied to the impairment test as of December 31 2017, the impairment charge arising in the current year would have been capped at USD 20m based on the fair value less cost to sell of the Tanker Segment, as outlined above. If the upside sensitivities outlined above had been applied, the impairment reversal would have been capped at USD 159m being the impairment charge applied to the Group's vessels in 2016 adjusted for the impact of the incremental depreciations that would have been charged during the year and vessel disposals during 2017. As outlined above, the impairment test has been prepared on the basis that the Company will continue to operate its vessels as a fleet in the current set-up. The market value based on broker values of TORM's vessels including the order book and chartered in vessels was USD 1,672m, which is USD 20 m below the carrying amount. |
FINANCIAL ITEMS
FINANCIAL ITEMS | 12 Months Ended |
Dec. 31, 2017 | |
Financial Items [Abstract] | |
FINANCIAL ITEMS | NOTE 9 – FINANCIAL ITEMS USDm 2017 2016 2015 Financial income Interest income from cash and cash equivalents ¹ ⁾ 1.6 0.2 0.3 Exchange rate adjustments, including gain from forward exchange rate contracts 2.7 2.8 0.7 Total 4.3 3.0 1.0 Financial expenses Interest expenses on mortgage and bank debt ¹ ⁾ 33.3 29.7 15.0 Exchange rate adjustments, including loss from forward exchange rate contracts 3.2 2.6 0.6 Other financial expenses 4.1 5.2 1.3 Total 40.6 37.5 16.9 Total financial items -36.3 -34.5 -15.9 ¹ ⁾ |
FREIGHT RECEIVABLES
FREIGHT RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Freight Receivables [Abstract] | |
FREIGHT RECEIVABLES | NOTE 10 – FREIGHT RECEIVABLES USDm 2017 2016 2015 Analysis as of 31 December of freight receivables: Neither past due nor impaired 25.5 28.7 40.3 Past due not impaired: Due before 30 days 26.0 13.0 22.8 Due between 30 and 180 days 18.4 18.7 16.4 Past due and impaired: Due after 180 days 2.7 4.7 5.3 Total gross 72.6 65.1 84.8 Provision for impairment of freight receivables 1.3 2.6 1.7 Total net 71.3 62.5 83.1 As of 31 December 2017, freight receivables included receivables at a value of USD 0.0m (2016: USD 0.6m, 2015: USD 1.9m) that are individually determined to be impaired to a value of USD 0.0 m (2016: USD 0.5m, 2015: USD 0.2m). Movements in provisions for impairment of freight receivables during the year are as follows: USDm 2017 2016 2015 Provisions for impairment of Freight receivables Balance as of 1 January 2.6 1.7 - Addition from business combinations - - 1.9 Provisions for the year 0.6 1.9 0.5 Provisions reversed during the year -1.9 -1.0 -0.7 Balance as of 31 December 1.3 2.6 1.7 Provisions for impairment of freight receivables have been recognized in the income statement under "Port expenses, bunkers and commissions". |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
OTHER RECEIVABLES | NOTE 11 – OTHER RECEIVABLES USDm 2017 2016 Partners and commercial managements - 0.5 Derivative financial instruments 7.6 3.3 Tax receivables 1.3 1.1 Other 2.9 3.2 Balance as of 31 December 11.8 8.1 No significant other receivables are past due or impaired. Please refer to note 21 for further information on fair value hierarchies. |
TAX
TAX | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Income Tax [Abstract] | |
TAX | NOTE 12 – TAX USDm 2017 2016 2015 Tax for the year Current tax for the year 1.0 1.2 1.3 Adjustments related to previous years -0.1 -0.3 -0.2 Adjustment of deferred tax asset -0.1 -0.1 -0.1 Total 0.8 0.8 1.0 The majority of the Group's taxable income is located in Denmark, and therefore the majority of the tax base is subject to Danish tax legislation. As such, the Group has elected to participate in the Danish tonnage tax scheme; the participation is binding until 31 December 2025. The Group expects to participate in the tonnage tax scheme after the binding period and, at a minimum, to maintain an investing and activity level equivalent to the time of entering the tonnage tax scheme. Under the Danish tonnage tax scheme, income and expenses from shipping activities are not subject to direct taxation, and accordingly an effective rate reconciliation has not been provided, as it would not provide any meaningful information. Instead, the taxable income is calculated from: - The net tonnage of the vessels used to generate the income from shipping activities; and - A rate applicable to the specific net tonnage of the vessel based on a sliding scale Due to the provisions of the tonnage tax scheme, the effective tax rate of the Group is 24.4% (2016: -0.6 %, 2015: 0.8 %). USDm 2017 2016 2015 Deferred tax liability Balance at 1 January 45.0 45.1 - Addition from business combination - - 45.2 Deferred tax for the year -0.1 -0.1 -0.1 Balance as of 31 December 44.9 45.0 45.1 Essentially all deferred tax relates to vessels included in the transition account under the Danish tonnage tax scheme. The Group operates in a wide variety of jurisdictions, in some of which the tax law is subject to varying interpretations and potentially inconsistent enforcement. As a result, there can be practical uncertainties in applying tax legislation to the Group's activities. Whilst the Group considers that it operates in accordance with applicable tax law, there are potential tax exposures in respect of its operations, the impact of which cannot be reliably estimated but could be material. |
COMMON SHARES & TREASURY SHARES
COMMON SHARES & TREASURY SHARES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital [abstract] | |
COMMON SHARES & TREASURY SHARES | NOTE 13 – COMMON SHARES & TREASURY SHARES Common shares 2017 2016 2015 Number of shares Number of shares Number of shares A-shares 62,298,846 62,298,846 63,836,249 B-shares 1 1 1 C-shares 1 1 1 Total 62,298,848 62,298,848 63,836,251 For accounting purposes due to the Corporate Reorganization, the common shares have been adjusted retrospectively to reflect the issued capital and common shares of TORM plc amounting to USD 0.4m as per 1 January 2015. The A-shares are listed on NASDAQ Copenhagen and NASDAQ in New York and are publicly available for trading. Each A-share carries one vote at the Annual General Meeting and gives the shareholder right to dividends, liquidation proceeds or other distributions. The A-shares carry no other rights or obligations. The B-share has one vote at the general meeting, has no pre-emption rights in relation to any issue of new shares of other classes and carries no right to receive dividends, liquidation proceeds or other distributions from TORM. The holder of the B-share has the right to elect one member to the Board of Directors (being the Deputy Chairman), up to three alternates as well as one Board Observer. The B-share cannot be transferred or pledged, except for a transfer to a replacement trustee. The C-share represents 350,000,000 votes at the general meeting in respect of certain Specified Matters, including election of members to the Board of Directors (including the Chairman but excluding the Deputy Chairman) and certain amendments to the Articles of Association proposed by the Board of Directors. The C-share has no pre-emption rights in relation to any issue of new shares of other classes and carries no right to receive dividends, liquidation proceeds or other distributions from TORM. The C-share cannot be transferred or pledged, except to an affiliate of Njord Luxco. The B-share and the C-share are redeemable by TORM in the event that (i) TORM has received written notification from Njord Luxco (or its affiliates) that Njord Luxco and its affiliates (as defined in the Articles of Association) hold less than 1/3 in aggregate of TORM's issued and outstanding shares, (ii) five business days have elapsed from the Board of Directors' receipt of such written notice either without any Board member disputing such notice or with at least 2/3 of the Board members confirming such notice and (iii) both of the B-share and the C-share are redeemed at the same time. Issued warrants Key management participates in an LTIP program, which gives the right to buy TORM shares at a predefined share price. Please refer to Note 4. Treasury shares 2017 2016 2015 Number of shares ('000) Balance as of 1 January 312.9 15.3 - Additions - 312.9 15.3 Cancellations - -15.3 - Disposals - - - Balance as of 31 December 312.9 312.9 15.3 Nominal value USDm Balance as of 1 January - - - Additions - - - Cancellations - - - Disposals - - - Balance as of 31 December - - - % of share capital Balance as of 1 January 0.5 0.2 - Additions - 0.5 0.2 Cancellations - -0.2 - Disposals - - - Balance as of 31 December 0.5 0.5 0.2 The total consideration for the treasury shares was USD 0.0m (2016: 2.9m and 2015: USD 0.2m). At 31 December 2016, the Company's holding of treasury shares represented 312,871 shares (2016: 312,871 shares and 2015: 15,319 shares) of USD 0.01 each at a total nominal value of USD 0.0m (2016: USD 0.0m and 2015: USD 0.0m) and a market value of USD 2.7m (2016: USD 2.8m 2015: USD 0.2m). |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Other Liabilities [Abstract] | |
OTHER LIABILITIES | NOTE 14 – OTHER LIABILITIES USDm 2017 2016 Partners and commercial managements 1.4 2.0 Accrued operating expenses 8.5 5.2 Accrued interest 5.2 5.8 Wages and social expenses 16.3 14.6 Derivative financial instruments - 4.8 Payables to joint ventures 0.1 0.1 Other 2.3 0.5 Balance as of 31 December 33.8 33.0 Please refer to note 21 for further information on fair value hierarchies. |
EFFECTIVE INTEREST RATE, OUTSTA
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Effective Interest Rate, Outstanding Mortgage Debt And Bank Loans [Abstract] | |
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS | NOTE 15 - EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS In July 2015, TORM completed the Corporate Restructuring. This resulted in a Term Facility Agreement and a Working Capital Facility of USD 75m both expiring in 2021. In 2017, TORM agreed on an additional Term Facility Agreement with a syndicate of four banks expiring in 2022. Furthermore, TORM has a debt facility with Danish Ship Finance, the tranches of which expire in 2021 and 2022, and a debt facility with ING expiring in 2024. In 2018, TORM will take delivery of four new LR2 tankers. The Export Import Bank of China (CEXIM) has committed funding of up to USD 115m in a 12-year facility to finance these newbuildings. In 2019, TORM will take delivery of four new MR and two new LR1 tankers. Danish Ship Finance has committed funding of up to USD 81m in a 7-year facility to finance the four MR newbuildings. As of 31 December 2017, no drawdowns had been made on the Working Capital Facility, the CEXIM Facility or the new USD 81m DSF Facility. Please refer to note 2 for further information on the Company's liquidity and capital resources and note 19 and 20 for further information on interest rate swaps and financial risks. The table below shows the effective interest and the value of the outstanding mortgage debt and bank loans. 2017 2016 2015 USDm Fixed/ Maturity Effective ⁾ Carrying ⁾ Maturity Effective ⁾ Carrying ⁾ Maturity Effective ⁾ Carrying ⁾ LOAN DSF Facility 1 (USD) Floating 2021 5.4% 74.3 2019 4.6% 109.4 2019 4,1% 125.7 TFA Facility 1 (USD) Floating 2021 5.0% 400.8 2021 4.6% 470.0 2021 4.3% 548.9 DSF Facility 3 (USD) Floating 2021 5.0% 56.5 2021 4.6% 62.2 2021 4,4% 66.6 DSF Facility 4 (USD) Floating 2022 5.1% 26.8 2022 4.8% 30.0 2019 4,1% 26.0 TFA Facility 2 (USD) Floating 2022 5.4% 115.0 N/A N/A - N/A N/A - ING (USD) Floating 2024 4.6% 45.8 N/A N/A - N/A N/A - Weighted average effective interest rate 5.1% 4.6% 4.3% Carrying value 719.1 671.6 767.2 Hereof non-current ² ⁾ 633.1 595.7 717.5 Hereof current ² ⁾ 86.0 75.9 49.7 ¹ ⁾ ² ⁾ |
COLLATERAL SECURITY FOR MORTGAG
COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Collateral [Abstract] | |
COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS | NOTE 16 – COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS The total carrying amount for vessels that have been provided as security amounts to USD 1,259m at 31 December 2017 (2016: USD 1,115m, 2015: USD 1,329m). |
GUARANTEE COMMITMENTS AND CONTI
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Commitments And Contingent Liabilities [Abstract] | |
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 17 – GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES The guarantee commitments of the Group are less than USD 0.1m (2016: USD 0.1m, 2015: USD 0.1m) and relate to guarantee commitments to Danish Shipowners' Association. The Group is involved in certain legal proceedings and disputes. It is Management's opinion that the outcome of these proceedings and disputes will not have any material impact on the Group's financial position, results of operations and cash flows. |
CONTRACTUAL OBLIGATIONS
CONTRACTUAL OBLIGATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Contractual Commitments [Abstract] | |
CONTRACTUAL OBLIGATIONS | NOTE 18 – CONTRACTUAL OBLIGATIONS TORM has various contractual obligations and commercial commitments to make future payments including lease obligations, purchase commitments, interest payments and repayment of mortgage debt and bank loans. The following table summarizes the Company's contractual obligations at 31 December 2017. USDm 2018 2019 2020 2021 2022 Thereafter Total Mortgage debt and bank loans ¹ 92.7 86.7 82.2 346.7 89.2 28.3 725.8 Interest payments related to scheduled interest fixing 20.4 14.4 12.1 8.9 0.4 - 56.2 Estimated variable interest payments ² 11.9 13.6 12.2 9.1 2.6 2.0 51.4 Finance lease liabilities 2.9 3.2 3.4 3.7 15.0 - 28.2 Interest element regarding finance lease 2.3 2.0 1.7 1.4 0.3 - 7.7 Newbuilding installments ³ 144.2 162.7 - - - - 306.9 Chartered-in vessels (operating lease) ⁴⁾ 2.9 - - - - - 2.9 Other operating leases ⁵⁾ 2.5 1.8 0.7 0.2 - - 5.2 Trade payables and other obligations 51.5 - - - - - 51.5 Total 331.3 284.4 112.3 370.0 107.5 30.3 1,235.8 ¹ ⁾ ² ⁾ ³ ⁾ ⁴⁾ ⁵⁾ The following table summarizes the reconciliation of liabilities arising from financing activities: Cash Non-cash USDm Opening balance as of 1 January 2017 Borrowings Repayments Changes in fair value Other changes End balance as of 31 December 2017 Mortgage debt 669.6 175.4 -125.5 0.7 0.7 720.9 Financial lease 13.6 30.2 -16.7 0.6 0.5 28.2 Swaps, fair value hedging 2.0 - -1.4 -0.6 - - Total 685.2 205.6 -143.6 0.7 1.2 749.1 TORM has contractual rights to receive future payments as lessor of vessels on time charter and bareboat charter. The following table summarizes the Company's contractual rights at 31 December 2017. USDm 2018 2019 2020 2021 2022 Thereafter Total Contractual rights - as lessor: Charter hire income for vessels ⁶⁾ 45.5 4.7 - - - - 50.2 Total 45.5 4.7 - - - - 50.2 ⁶⁾ |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Derivative Financial Instruments Explanatory [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 19 – DERIVATIVE FINANCIAL INSTRUMENTS USDm 2017 2016 Fair value of derivatives: Derivative financial instruments regarding freight and bunkers: Forward Freight Agreements -0.2 -0.1 Bunker swaps 0.8 0.8 Derivative financial instruments regarding interest and currency exchange rate: Forward exchange contracts 1.8 -4.6 Interest rate swaps 5.1 2.4 Fair value of derivatives as of 31 December 7.5 -1.5 Of which included in: Other receivables 7.3 3.3 Other liabilities 0.2 -4.8 Please refer to Note 21 "Financial Instruments" for further information on fair value hierarchies. Bunker swaps and forward freight agreements with a fair value of USD 0.6m (net) of a previously fixed hedge have been recognized in the income statement in 2017 (2016: USD 0.8m, 2015: USD -0.2m). Forward exchange contracts with a fair value of USD 1.8m are designated as hedge accounting relationships to hedge a part of TORM's payments in 2018 regarding administrative and operating expenses denominated in DKK with a notional value of DKK 257.0m (2016: DKK 336.4m, 2015: DKK 235.1m). Interest rate swaps with a fair value of USD 5.1m are designated as hedge accounting relationships to fix a part of TORM's interest payments during the period 2017 to 2022 with a notional value of USD 406.4m (2016: USD 373.8m, 2015: USD 382.3m). The table below shows realized amounts as well as fair value adjustments regarding derivative financial instruments recognized in the income statements and equity in 2017, 2016 and 2015. Income statement Equity USDm Revenue Port expenses, bunkers and commissions Financial items Hedging reserves 2017 Forward Freight Agreements 0.5 - - -0.3 Bunker swaps - 1.2 - 0.0 Forward exchange contracts - - -1.4 4.4 Interest rate swaps - - -2.0 2.7 Total 0.5 1.2 -3.4 6.9 2016 Forward Freight Agreements -0.1 - - -0.2 Bunker swaps - 0.0 - 1.0 Forward exchange contracts - - 0.1 -3.4 Interest rate swaps - - -2.9 1.6 Total -0.1 0.0 -2.8 -1.0 2015 Forward Freight Agreements 0.6 - - 0.0 Bunker swaps - -0.9 - -0.2 Forward exchange contracts - - - 0.8 Interest rate swaps - - - 0.8 Total 0.6 -0.9 - 1.4 Please refer to Note 20 for further information on commercial and financial risks. |
RISKS ASSOCIATED WITH TORM'S AC
RISKS ASSOCIATED WITH TORM'S ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Risks Associated With Entities Activities [Abstract] | |
RISKS ASSOCIATED WITH TORM'S ACTIVITIES | NOTE 20 — RISKS ASSOCIATED WITH TORM'S ACTIVITIES The risks can generally be divided into four main categories: • Long-term strategic risks • industry and market-related risks • operational and compliance risks • financial risks The risks described under each of the four categories are considered to be among the most significant risks for TORM within each category. LONG-TERM STRATEGIC RISKS Industry-changing risks, such as the substitution of oil for other energy sources and radical changes in transportation patterns, are considered to have a relatively high potential impact but are long-term risks. Management continues to monitor long-term strategic risks to ensure the earliest possible mitigation of potential risks and develop necessary capabilities to exploit opportunities created by the same risks. INDUSTRY AND MARKET RELATED RISKS Industry and market-related risk factors relate to changes in the markets and in the political, economic and physical environment that Management cannot control such as freight rates and vessel and bunker prices. FREIGHT RATE FLUCTUATIONS The Company's income is principally generated from voyages carried out by its fleet of vessels. As such, TORM is exposed to the considerable volatility that characterizes freight rates for such voyages. It is the Company's strategy to seek a certain exposure to this risk, as volatility also represents an opportunity because earnings historically have been higher in the day-to-day market compared to time charters. The fluctuations in freight rates for different routes may vary substantially. However, TORM is aiming at reducing the sensitivity to the volatility of such specific freight rates by actively seeking the optimal geographical positioning of the fleet and by optimizing the services offered to customers. Tanker freight income is to a certain extent covered against general fluctuations through the use of physical contracts such as cargo contracts and time charter agreements with durations of 6-36 months. In addition, TORM uses financial instruments such as forward freight agreements (FFAs) with coverage of typically 0-24 months forward, based on market expectations and in accordance with the Company's risk management policies. In 2017, 12% (2016: 10%; 2015: 5%) of freight earnings deriving from the Company's tankers was secured in this way. Physical time charter contracts accounted for 66% (2016: 83%; 2015: 95%) of overall hedging. In 2017, the Company sold FFAs with a notional contract value of USD 44m (2016: USD 12m; 2015: USD 6m) and bought FFAs with a notional contract value of USD 12m (2016: USD 3m; 2015: USD 4m). The total notional contract volume sold in 2017 was 1,754,000 metric tons (2016: 781,000 metric tons; 2015: 215,000 metric tons) and the total notional volume bought was 530,000 metric tons (2016: 190,000 metric tons; 2015: 142,000 metric tons). At the end of 2017, the coverage for 2018 was 13% (2016: 12%; 2015: 8%). FFA trade and other freight-related derivatives are subject to specific policies and guidelines approved by the Risk Committee, including trading limits, stop-loss policies, segregation of duties and other internal control procedures. All things being equal and to the extent the Company's vessels have not already been chartered out at fixed rates, a freight rate change of USD/day 1,000 would lead to the following change in profit before tax based on the expected number of earning days for the coming financial year: SENSITIVITY TO CHANGES IN FREIGHT RATES USDm 2018 2017 2016 Decrease in freight rates of USD/day 1,000: Changes in profit before tax 24.1 25.0 26.7 Changes in equity 24.1 25.0 26.7 SALES AND PURCHASE PRICE FLUCTUATIONS As an owner of vessels, TORM is exposed to risk associated with changes in the value of the vessels, which can vary considerably during their useful lives. As of 31 December 2017, the carrying value of the fleet was USD 1,294m (2016: USD 1,344m). Based on broker valuations, TORM's fleet excluding undelivered newbuildings had a market value of USD 1,260m as of 31 December 2017 (2016: USD 1,260m). During 2017, TORM has sold three Handysize tankers and one MR tanker and bought two new MR tankers. Furthermore, TORM has ten vessels on order for delivery in 2018-2019 and options for purchase of an additional one LR1 tanker and three MR tankers. BUNKER PRICE FLUCTUATIONS The cost of fuel oil consumed by the vessels, known in the industry as bunkers, accounted for 55% of the total voyage costs in 2017 (2016: 50%; 2015: 57%) and is by far the biggest single cost related to a voyage. TORM is exposed to fluctuations in bunker prices that are not reflected in the freight rates achieved by the Company. To reduce this exposure, TORM hedges part of its bunker requirements with oil derivatives. Bunker trade is subject to specific risk policies and guidelines approved by the Risk Committee including trading limits, stop-loss, stop-gain and stop-at-zero policies, segregation of duties and other internal control procedures. TORM applies hedge accounting to all bunker hedge contracts. In 2017, 3.3% (2016: 0.9%; 2015: 0.2%) of TORM's bunker consumption was hedged through bunker hedging contracts. At the end of 2017, TORM had covered 2.1% (2016: 1.6%; 2015: 0.7%) of its bunker requirements for 2018 using hedging instruments. All things being equal, a price change of 10% per ton of bunker oil (without subsequent changes in freight rates) would lead to the following change in expenditure based on the expected bunker consumption in the spot market. SENSITIVITY TO CHANGES IN THE BUNKER PRICES USDm 2018 2017 2016 Increase in the bunker prices of 10% per ton: Changes in profit before tax -18.3 -15.6 -12.8 Changes in equity -18.3 -15.6 -12.8 OPERATIONAL AND COMPLIANCE RISKS Operational risks are risks associated with the ongoing operations of the business and include risks such as safe operation of vessels, availability of experienced seafarers and staff, terrorism, piracy as well as insurance and counterparty risk. INSURANCE COVERAGE In the course of the fleet's operation, various casualties, accidents and other incidents may occur that may result in financial losses for TORM. For example, national and international rules, regulations and conventions mean that the Company may incur substantial liabilities in the event that a vessel is involved in an oil spill or emission of other environmentally hazardous agents. In order to reduce the exposure to these risks, the fleet is insured against such risks to the extent possible. The total insurance program comprises a broad cover of risks in relation to the operation of vessels and transportation of cargo, including personal injury, environmental damage and pollution, cargo damage, third-party casualty and liability, hull and machinery damage, total loss and war. All of TORM's owned vessels are insured for an amount corresponding to their market value plus a margin to cover any fluctuations. Liability risks are covered in line with international standards. It is TORM's policy to cooperate with financially sound international insurance companies with a credit rating of BBB or better, presently some 14-16 companies, along with two P&I clubs, to diversify risk. The P&I clubs are member of the internationally recognized collaboration, International Group of P&I clubs, and the Company's vessels are each insured for the maximum amount available in the P&I system. At the end of 2017, the aggregate insured value of hull and machinery and interest for TORM's owned vessels amounted to USD 1.4 billion (2016: USD 1.6 billion; 2015: USD 2.0 billion). COUNTERPARTY RISK Counterparty risk is an ever-present challenge demanding close monitoring to manage and decide on actions to minimize possible losses. The maximum counterparty risk associated is equal to the values recognized in the balance sheet. A consequential effect of the counterparty risk is loss of income in future periods, e.g. counterparties not being able to fulfill their responsibilities under a time charter, a contract of affreightment or an option. The main risk is the difference between the fixed rates under a time charter or a contract of affreightment and the market rates prevailing upon default. The Company has a close focus on its risk policies and procedures to ensure that risks managed in the day-to-day business are kept at agreed levels and that changes in the risk situations are brought to Management's attention. The Company's counterparty risks are primarily associated with: • Receivables, cash and cash equivalents • Contracts of affreightment with a positive fair value • Derivative financial instruments and commodity instruments with positive fair value Receivables, cash and cash equivalents The majority of TORM's customers are companies that operate in the oil industry. It is assessed that these companies are, to a great extent, subject to the same risk factors as those identified for TORM. A major part of the Company's freight revenues stems from a small group of customers. One customer accounted for 8.2% of the freight revenues in 2017 (2016: 12.6%; 2015: 12.6%). The concentration of earnings on a few customers requires extra attention to credit risk. TORM has a credit policy under which continued credit evaluations of new and existing customers take place. For long-standing customers, payment of freight normally takes place after a vessel's cargo has been discharged. For new and smaller customers, the Company's credit risk is limited, as freight is usually paid prior to the cargo's discharge, or, alternatively, that a suitable bank guarantee is placed in lieu thereof. As a consequence of the payment patterns mentioned above, the Company's receivables primarily consist of receivables from voyages in progress at year-end and, to a lesser extent, of outstanding demurrage. For the past five years, the Company has not experienced any significant losses in respect of charter payments or any other freight agreements. With regard to the collection of demurrage, the Company's average stands at 97.0% (2016: 96.8%; 2015: 96%), which is considered to be satisfactory given the differences in interpretation of events. In 2017, demurrage represented 16.8% (2016: 15.0%; 2015: 17.7%) of the total freight revenues. Excess liquidity is placed on deposit accounts with major banks with strong and acceptable credit ratings or invested in secure papers such as American or Danish government bonds. Cash is invested with the aim of getting the highest possible yield while maintaining a low counterparty risk and adequate liquidity reserves for possible investment opportunities or to withstand a sudden drop in freight rates. Derivative financial instruments and commodity instruments In 2017, 65% (2016: 93%; 2015: 100%) of TORM's forward freight agreements (FFAs) and fuel swaps were cleared through NASDAQ, effectively reducing counterparty credit risk by daily clearing of balances. Over-the-counter fuel swaps have restrictively been entered into with major oil companies, banks or highly reputed partners with a satisfactory credit rating. TORM also trades FX and interest derivatives. All such derivatives were done with investment grade counterparties.. FINANCIAL RISKS Financial risks relate to the Company's financial position, financing and cash flows generated by the business, including foreign exchange risk and interest rate risk. The Company's liquidity and capital resources are described in Note 2. FOREIGN EXCHANGE RISK TORM uses USD as its functional currency because the majority of the Company's transactions are denominated in USD. The foreign exchange risk is thereby limited to cash flows not denominated in USD. The primary risk relates to transactions denominated in DKK, EUR and SGD and relates to administrative and operating expenses. The part of the Company's expenses that are denominated in currencies other than USD accounts for approximately 98% (2016: 99%; 2015: 98%) for administrative expenses and approximately 25% (2016: 27%; 2015: 26%) for operating expenses. Approximately 62% (2016: 74%, 2015: 55%) of TORM's administrative and operating expenses in DKK and EUR in 2018 are hedged through FX forward contracts. TORM assumes identical currency risks arising from exposures in DKK and EUR. SENSITIVITY TO CHANGES IN THE USD/DKK AND USD/EUR EXCHANGE RATE All things being equal, a change in the USD/DKK and USD/EUR exchange rate of 10% would result in a change in profit before tax and equity as follows: USDm 2018 2017 2016 Effect of a 10% increase of DKK and EUR: Changes in profit before tax -2.5 -1.7 -2.8 Changes in equity -2.5 -1.7 -2.8 INTEREST RATE RISK TORM's interest rate risk generally relates to interest-bearing mortgage debt and bank loans. All of the Company's loans for financing vessels are denominated in USD, and all are floating rate loans. At the end of 2017, TORM has fixed 63% of the interest exposure for 2018 (2016: 68%; 2015: 65%). The fixing is a result of floating rate loans, where USD 3 or 6 months Libor were fixed in 2017 into 2018 and interest hedging through interest rate swaps. SENSITIVITY TO CHANGES IN INTEREST RATES All things being equal, a change in the interest rate level of 1%-point would result in a change in the interest rate expenses as follows: USDm 2018 2017 2016 Effect of a 1%-point increase in interest rates: Changes in profit before tax -3.2 -2.5 -3.3 Changes in equity 3.6 6.8 9.5 TORM's interest-bearing debt increased from year-end 2016 to year-end 2017 by USD 47m (2016: decrease of USD 95m; 2015: increase of USD 639m) to USD 719m (2016: USD 672m; 2015: USD 767m). LIQUIDITY RISK TORM's strategy is to ensure continuous access to funding sources by maintaining a robust capital structure and a close relationship with several financial partners. As of 31 December 2017, TORM's loan portfolio was spread across nine different banks. As of 31 December 2017, TORM maintains a liquidity reserve of USD 134m in cash, combined with USD 75m in undrawn revolving credit facilities. Cash is only placed in banks with a high credit rating. For further information on contractual obligations, including a maturity analysis, please refer to Note 18. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 21 – FINANCIAL INSTRUMENTS Categories of financial assets and liabilities (USDm): Quoted Observable Unobservable Fair value Amortized cost Carrying value 2017: Loans and receivables Freight receivables ¹ - - - - 71.3 71.3 Other receivables - 7.6 - 7.6 4.2 11.8 Cash and cash equivalents ¹ - - - - 134.2 134.2 Total - 7.6 - 7.6 209.7 217.3 Financial liabilities Mortgage debt and bank loans ² - - - - 720.9 720.9 Finance lease liabilities ¹ - - - - 28.2 28.2 Trade payables ¹ - - - - 26.2 26.2 Other liabilities ¹ - -0.2 - -0.2 34.0 33.8 Total - -0.2 - -0.2 809.3 809.1 2016: Loans and receivables Freight receivables ¹ - - - - 62.5 62.5 Other receivables - 3.3 - 3.3 4.8 8.1 Cash and cash equivalents ¹ - - - - 76.0 76.0 Total - 3.3 - 3.3 143.3 146.6 Financial liabilities Mortgage debt and bank loans ² - - - - 669.6 669.6 Finance lease liabilities ¹ - - - - 13.6 13.6 Trade payables ¹ - - - - 28.5 28.5 Other liabilities ¹ - 4.8 - 4.8 28.3 33.1 Total - 4.8 - 4.8 740.0 744.8 ¹ ⁾ ² ⁾ There have been no transfers between level 1 and 2. FAIR VALUE HIERARCHY FOR FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE IN THE BALANCE SHEET Below shows the fair value hierarchy for financial instruments measured at fair value in the balance sheet. The financial instruments in question are grouped into levels 1 to 3 based on the degree to which the fair value is observable. · Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities · Level 2 fair value measurements are those derived from input other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) · Level 3 fair value measurements are those derived from valuation techniques that include input for the asset or liability that are not based on observable market data (unobservable input) METHODS AND ASSUMPTIONS IN DETERMINING FAIR VALUE OF FINANCIAL INSTRUMENTS Derivative part of other receivables and other payables The fair value of derivatives in other receivables and other payables is measured using accepted valuation methods with input variables such as yield curves, forward curves, spreads, etc. The valuation methods discount the future fixed and estimated cash flows and valuation of any option elements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 22 – RELATED PARTY TRANSACTIONS The Company's ultimate controlling party is Oaktree Capital Group, LLC, a limited liability company incorporated in the USA. The immediate controlling shareholder is Njord Luxco. Shareholders' contribution and dividends paid are disclosed in the consolidated statement of changes in equity. The remuneration of key management personnel, which consists of the Board of Directors and the Executive Director, is disclosed in Note 4. |
NON-CURRENT ASSETS SOLD DURING
NON-CURRENT ASSETS SOLD DURING THE YEAR | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Noncurrent Assets Sold During Year [Abstract] | |
NON-CURRENT ASSETS SOLD DURING THE YEAR | NOTE 23 – NON-CURRENT ASSETS SOLD DURING THE YEAR During 2017, TORM sold eight vessels, of which four were delivered to the new owners during 2017, one vessel is expected to be delivered in Q1 2018 (presented as "assets held-for-sale" as of 31 December 2017) and the remaining three vessels were sold and leased back to TORM as finance leases. The sales resulted in a profit from sale of vessels of USD 2.8m and an impairment on sold or held-for-sale vessels of USD 3.6m. There was no sale of vessels in 2016. During 2015, TORM sold its two remaining bulk vessels for USD 18m in connection with the wind-down of the Company's bulk activities. Both vessels were delivered to the new owners during 2015. The sales did not result in any gain or losses. |
CASH FLOWS
CASH FLOWS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Cash Flow Statement [Abstract] | |
CASH FLOWS | NOTE 24 – CASH FLOWS USDm 2017 2016 2015 Reversal of other non-cash movements: Amortization of acquired assets and liabilities - -0.1 -0.7 Exchange rate adjustments 1.8 -2.4 -0.1 Share-based payments 1.9 2.0 - Equity transactions expensed in relation to the Corporate Reorganization - -6.4 - Other adjustments - -0.2 -0.1 Total 3.7 -7.1 -0.9 USDm 2017 2016 2015 Change in bunkers, receivables and payables: Change in bunkers -1.6 -6.1 15.6 Change in receivables -12.4 18.1 6.1 Change in prepayments -1.4 2.7 4.9 Change in trade payables and other liabilities -4.5 -5.4 -11.9 Adjusted for fair value changes of derivative financial instruments 6.9 -1.0 2.2 Total -13.0 8.3 16.9 |
ENTITIES IN THE GROUP
ENTITIES IN THE GROUP | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of information about consolidated structured entities [abstract] | |
ENTITIES IN THE GROUP | NOTE 25 – ENTITIES IN THE GROUP Entity Country TORM plc United Kingdom Investments in subsidiaries ⁸⁾ Entity Country Ownership ⁷⁾ TORM A/S ¹ ⁾ Denmark 100% DK Vessel HoldCo GP ApS ¹ ⁾ Denmark 100% DK Vessel HoldCo K/S ¹ ⁾ Denmark 100% OCM (Gibraltar) Njord Midco Ltd Gibraltar 100% OCM Njord Chartering Inc Marshall Islands 100% OCM Singapore Njord Holdings Agnes, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Alice, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Almena, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Amalie, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Aslaug, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Hardrada, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings St.Michaelis Pte. Ltd Singapore 100% OCM Singapore Njord Holdings St. Gabriel Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Harald Pte. Ltd ⁵⁾ Singapore 100% OCM Singapore Njord Holdings Gorm Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Knut Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Valdemar Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Agnete, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Alexandra, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Anabel, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Arawa Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Leif Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Rolf Pte. Ltd ⁵⁾ Singapore 100% Investments in subsidiaries ⁸⁾ Entity Country Ownership ⁷⁾ OCM Holdings Mrs Inc. Marshall Islands 100% OCM Njord Anne Inc. Marshall Islands 100% OCM Njord Freya Inc. Marshall Islands 100% OCM Njord Gerd Inc. Marshall Islands 100% OCM Njord Gertrud Inc. Marshall Islands 100% OCM Njord Gunhild Inc. Marshall Islands 100% OCM Njord Helene Inc. Marshall Islands 100% OCM Njord Helvig Inc. Marshall Islands 100% OCM Njord Ingeborg Inc. Marshall Islands 100% OCM Njord Mary Inc. Marshall Islands 100% OCM Njord Ragnhild Inc. Marshall Islands 100% OCM Njord Thyra Inc. Marshall Islands 100% OCM Njord Valborg Inc. Marshall Islands 100% OCM Njord Vita Inc. Marshall Islands 100% OMI Holding Ltd. ¹ ⁾ ⁶⁾ Mauritius 100% Torghatten & TORM Shipowning ApS ¹ ⁾ ⁵⁾ Denmark 100% TORM Brasil Consultoria em Transporte Maritimo LTDA. ¹ ⁾ ⁴⁾ Brazil 100% TORM Crewing Service Ltd.¹ ⁾ Bermuda 100% TORM Shipping India Private Limited ¹ ⁾ India 100% TORM Singapore Pte. Ltd. ¹ ⁾ Singapore 100% TORM USA LLC ¹ ⁾ USA 100% TT Shipowning K/S ¹ ⁾ ⁵⁾ Denmark 100% VesselCo 1 K/S ¹ ⁾ Denmark 100% Investments in subsidiaries ⁸⁾ Entity Country Ownership ⁷⁾ VesselCo 2 Pte. Ltd. ¹ ⁾ 4 ⁾ Singapore 100% VesselCo 3 K/S ¹ ⁾ Denmark 100% VesselCo 4 Pte. Ltd. ¹ ⁾ 4 ⁾ Singapore 100% VesselCo 5 K/S ¹ ⁾ ⁾ Denmark 100% VesselCo 6 Pte. Ltd.¹ ⁾ Singapore 100% VesselCo 7 Pte. Ltd. ¹ ⁾ Singapore 100% VesselCo 8 Pte. Ltd. ¹ ⁾ Singapore 100% VesselCo 9 Pte. Ltd. ² ⁾ Singapore 100% VesselCo 10 Pte. Ltd. ² ⁾ Singapore 100% VesselCo 11 Pte. Ltd. ² ⁾ Singapore 100% VesselCo 12 Pte. Ltd. ³ ⁾ Singapore 100% TORM Shipping (Phils.), Inc. ¹ ⁾ Philippines 25% VesselCo A ApS ¹ ⁾ Denmark 100% VesselCo C ApS ¹ ⁾ Denmark 100% VesselCo E ApS ³ ⁾ Denmark 100% 1) Entities added in the financial year ended 31 December 2015. 2) Entities added in the financial year ended 31 December 2016. 3) Entities added in the financial year ended 31 December 2017. 4) Entities dissolved in the financial year ended 31 December 2015. 5) Entities dissolved in the financial year ended 31 December 2016. 6) Entities dissolved in the financial year ended 31 December 2017. 7) For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.) INC where voting rights are 100%. 8) All subsidiaries are consolidated in full. The table below shows the registered addresses for the companies mentioned above: Denmark India Philippines Singapore Tuborg Havnevej 18, 2nd Floor 7th Floor 6 Battery Road #27-02 DK-2900 Hellerup Leela Business Park Salcedo Towers, 169 Singapore 049909 Denmark Andheri-Kurla Road HV dela Costa Street Singapore Andheri (E) Salcedo Village, Mumbai 400059 Makati City India Philippines 1227 United Kingdom USA Marshall Islands Mauritius Birchin Court Suite 710 c/o The Trust c/o Temple Corporate 20 Birchin Lane 2500 City West Company of Services London, EC3V 9DU Boulevard Marshall Islands, Inc. Temple Court 2, United Kingdom 77042, Houston , Texas P.O. Box 2095 Labourdonnais Street USA Reston VA 20195-0095 Port Louis USA Mauritius Bermuda Gibraltar Brazil c/o Estera Services 57/63 Line Wall Road Avenida Rio Branco (Bermuda Limited) GX11 1AA 01-1201 Canon's Court Gibraltar CEP 200090-003 22 Victoria Street Rio de Janeiro PO Box 1624 Brazil Hamilton HM GX Bermuda Interest in legal entities included as joint ventures: 2017 Entity Country % Control Profit and Other compre-hensive Total compre-hensive Long Range 2 A/S Denmark 50% - - - LR2 Management K/S Denmark 50% - - - For registered addresses, please refer to the table above. |
EARNINGS PER SHARE & DIVIDEND P
EARNINGS PER SHARE & DIVIDEND PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Earnings Per Share And Dividend Per Share [Abstract] | |
EARNINGS PER SHARE & DIVIDEND PER SHARE | NOTE 26 – EARNINGS PER SHARE & DIVIDEND PER SHARE 2017 2016 2015 EARNINGS PER SHARE Net profit/(loss) for the year (USDm) 2.4 -142.5 126.0 Million shares Average number of shares 62.3 63.1 51.7 Average number of treasury shares -0.3 -0.2 - Average number of shares outstanding 62.0 62.9 51.7 Dilutive effect of outstanding share options - - - Average number of shares outstanding incl. dilutive effect of share options 62.0 62.9 51.7 Basic earnings/(loss) per share (USD) 0.04 -2.3 2.4 Diluted earnings/(loss) per share (USD) 0.04 -2.3 2.4 When calculating diluted earnings per share for 2017, RSUs have been omitted as they are out-of-the-money and thus anti-dilutive, but the RSUs may potentially dilute earnings per share in the future. Please refer to note 4 for information on the RSU share options. 2017 2016 2015 DIVIDEND PER SHARE Dividend for the year (USDm) 1.2 25.0 - Number of shares, end of period (million) 62.3 62.3 63.8 Dividend per share 0.02 0.40 - There is no proposed dividend as of 31 December 2017. |
BUSINESS COMBINATIONS IN 2015
BUSINESS COMBINATIONS IN 2015 | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about business combination [abstract] | |
BUSINESS COMBINATIONS IN 2015 | NOTE 27 — BUSINESS COMBINATIONS IN 2015 TORM A/S' Restructuring was completed on 13 July 2015 and included inter alia a contribution by OCM Njord Holdings S.à.r.l. ("Njord Luxco") of its 100% owned subsidiary Njord to TORM A/S in exchange for a controlling interest in TORM A/S. Following the implementation of the Restructuring, Njord Luxco, held 61.99% of the voting rights (excluding the voting rights attached to the C Share) in TORM A/S, and its subsidiaries, including Njord and Njord's subsidiaries (the "Combined Group"), and controlled the Combined Group in accordance with IFRS 10 "Consolidated financial statements", as it controlled the majority of the voting rights in the Combined Group. Accordingly, the contribution of Njord by Njord Luxco in exchange for a controlling interest in the Combined Group was accounted for as a reverse acquisition in accordance with IFRS 3, "Business Combinations", which means that for financial reporting purposes, Njord was considered the accounting acquirer and the continuing reporting entity. Consequently, the consolidated financial statements of TORM following the Restructuring were a continuation of the financial statements of Njord as the reporting continuing entity, despite TORM A/S being the legal acquirer and the continuing publicly listed company. Njord's purchase price for a controlling interest in TORM A/S is calculated as the fair value of the interest in Njord that the existing shareholders and warrant holders of TORM A/S would have received, had the business combination of TORM A/S and Njord not been a reverse acquisition. The value is based on the value agreed between TORM A/S, Njord Luxco and certain of TORM A/S' pre- Restructuring shareholders and lenders for the purposes of determining the ownership interest in TORM A/S obtained by Njord Luxco in exchange for the contribution of Njord. Goodwill that arose in the combination related to the benefit of expected synergies from combining operations of the acquiree and the acquirer. These benefits were not recognized separately from goodwill, because they did not meet the recognition criteria for identifiable intangible assets. The freight and other receivables acquired with a total fair value of USD 60.0m had a gross contractual amount of USD 61.9m. The best estimate at the acquisition date of the contractual cash flows not to expected to be collected is USD 1.9m. No acquisition-related costs were incurred. Since the acquisition date, revenue of USD 390.8m and profit for the period ended 31 December 2015 of USD 88.2m are included in the consolidated income statement in 2015. Had the business combination been effected as of 1 January 2015, the revenue of the combined Group would have been USD 854.3m and the profit for the year would have been USD 186.7m in 2015. Assets acquired and liabilities assumed in the business combination at fair value USDm Tangible fixed assets 859.9 Investment in joint ventures 0.3 Bunkers 27.8 Freight receivables 53.4 Other receivables 6.6 Prepayments 10.6 Cash and cash equivalents 77.5 Deferred tax liabilities -45.1 Mortgage debt and bank loans -560.7 Finance lease liabilities -13.5 Trade payables -27.3 Current tax liabilities -1.4 Other liabilities -29.7 Time charter contracts -1.6 Deferred income -0.4 Net assets acquired 356.4 Goodwill 11.4 Consideration (purchase price) 367.8 Of which: Shares 349.8 Warrants 18.0 367.8 |
ACCOUNTING POLICIES, CRITICAL35
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Accounting Policies Critical Accounting Estimates And Judgements [Abstract] | |
Consolidation principles | Consolidation principles The consolidated financial statements comprise the financial statements of the Parent Company, TORM plc, and entities controlled by the Company and its subsidiaries. Control is achieved when the Company: · has the power over the investee; and · is exposed, or has the right to variable returns from involvement with the investee; and · has the ability to use its power to affect its returns The Company should reassess whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities unilaterally. The Company considers all facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including: · the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders · potential voting rights held by the Company, other vote holders or other parties · rights arising from other contractual arrangements, and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time when decisions need to be made, including voting pattern at previous shareholders' meetings Entities in which the Group exercises significant but not controlling influence are regarded as associated companies and are accounted for using the equity method. Companies which are managed jointly by agreement with one or more companies and therefore are subject to joint control (joint ventures) are accounted for using the equity method. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ends when the Company loses control over the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated income statement and other comprehensive income from the date on which the Company obtains control until the date when the Company loses control over the subsidiary. The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company, its subsidiaries and the Company's share of the income statement and balance sheet of joint operations by combining items of a uniform nature and eliminating intercompany transactions, balances and shareholdings as well as realized and unrealized gains and losses on transactions between the consolidated entities. The financial statements used for consolidation purposes are prepared in accordance with the Company's accounting policies. The consolidated financial statements following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but as a continuation of the financial statements of the legal subsidiary (accounting acquirer). The accounting acquirer's legal capital is adjusted retrospectively to reflect the legal capital of the accounting acquiree. Comparative information is adjusted accordingly. |
Business combinations | Business combinations Newly acquired or formed entities are recognized in the consolidated financial statements from the date of acquisition or formation. The date of acquisition is the date on which control over the entity is effectively transferred. Business combinations are accounted for by applying the purchase method, whereby the acquired entities' identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. The tax effect of the revaluation activities is also taken into account. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the amount of that adjustment is included in the cost of the combination if the event is probable and the adjustment can be measured reliably. Costs of issuing debt or equity instruments in connection with a business combination are accounted for together with the debt or equity issuance. All other costs associated with the acquisition are expensed in the income statement. In reverse acquisitions the purchase price of a business combination is measured as the fair value of the consideration agreed upon. The purchase price in a reverse acquisition is calculated as the fair value of the interest in the accounting acquirer that the existing shareholders of the accounting acquiree would have received, had the business combination not been a reverse acquisition. The excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities is recognized as goodwill under intangible assets and is tested for impairment at least once every year. Upon acquisition, goodwill is allocated to the cash generating units, which subsequently form the basis for the impairment test. If the fair value of the acquired assets, liabilities and contingent liabilities exceeds the cost of the business combination, the identification of assets and liabilities and the processes of measuring the fair value of the assets and liabilities and the cost of the business combination are reassessed. If the fair value of the business combination continues to exceed the cost, the resulting gain is recognized in the income statement. |
Foreign currencies | Foreign currencies The functional currency of all significant entities, including subsidiaries and associated companies, is United State dollars (USD), because the Company's vessels operate in international shipping markets, in which income and expenses are settled in USD, and because the Companies most significant assets and liabilities in the form of vessels and related liabilities are denominated in USD. Transactions in currencies other than the functional currency are translated into the functional currency at the transaction date. Cash, receivables and payables and other monetary items denominated in currencies other than the functional currency are translated into the functional currency at the exchange rate at the balance sheet date. Gains or losses due to differences between the exchange rate at the transaction date and the exchange rate at the settlement date or the balance sheet date are recognized in the income statement under "Financial income" and "Financial expenses". An exchange rate gain or loss relating to a non-monetary item carried at fair value is recognized in the same line as the fair value adjustment. The reporting currency of the Company is USD. Upon recognition of entities with functional currencies other than USD, the financial statements are translated into USD. Income statement items are translated into USD at the average exchange rates for the year, whereas balance sheet items are translated at the exchange rates as of the balance sheet date. Exchange differences arising from the translation of financial statements into USD are recognized as a separate component through other comprehensive income. On the disposal of an entity, the cumulative amount of the exchange differences recognized in the separate component of equity relating to that entity is transferred to the income statement as part of the gain or loss on disposal. |
Derivative financial instruments | Derivative financial instruments Derivative financial instruments, primarily forward currency exchange contracts, forward freight agreements and forward contracts regarding bunker purchases, are entered to hedge future committed or anticipated transactions. TORM applies hedge accounting under the specific rules on cash flow hedges when appropriate. Derivative financial instruments are initially recognized in the balance sheet at fair value at the date when the derivative contract is entered into and are subsequently measured at their fair value as other receivables or other liabilities, respectively. Changes in the fair value of derivative financial instruments that are designated as cash flow hedges and deemed to be effective are recognized directly in "Other comprehensive income". When the hedged transaction is recognized in the income statement, the cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement and included in the same line as the hedged transaction. However, when the hedged transaction results in the recognition of a fixed asset, the gains and losses previously accumulated in "Other comprehensive income" are transferred from "Other comprehensive income" and included in the initial measurement of the cost of the fixed asset. Changes in the fair value of a portion of a hedge deemed to be ineffective are recognized in the income statement. Changes in the fair value of derivative financial instruments that are not designated as hedges are recognized in the income statement. While effectively reducing cash flow risk in accordance with the Company's risk management policy, interest rate swaps with cap features and certain forward freight agreements and forward contracts regarding bunker purchases do not qualify for hedge accounting. Changes in fair value of these derivate financial instruments are therefore recognized in the income statement under "Financial income" or "Financial expenses" for interest rate swaps with cap features, under "Revenue" for forward freight agreements and under "Port expenses, bunkers and commissions" for forward bunker contracts. |
Segment information | Segment information In 2015, TORM consisted of two business segments: The Tanker Segment and Bulk Segment. Due to divestment of the Bulk Segment during 2015, only the Tanker Segment remains for 2016 and 2017. The segmentation is based on the Group's internal management and reporting structure. In the Tanker Segment, the services provided primarily comprise transportation of refined oil products such as gasoline, jet fuel and naphtha. The Group has only one geographical segment, because the Company considers the global market as a whole, and as the individual vessels are not limited to specific parts of the world. Furthermore, the internal management reporting does not provide such information. Consequently, it is not possible to provide geographical segment information on revenue from external customers or non-current segment assets. The segment income statement comprises income and expenses which are directly attributable to the segment. Not allocated items primarily comprise assets and liabilities as well as revenues and expenses relating to the Company's administrative functions and investment activities, including cash and bank balances, interest-bearing debt, income tax, deferred tax, etc. The accounting policies applied for the segments regarding recognition and measurement are consistent with the policies for TORM as described in this note. |
Employee benefits | Employee benefits Wages, salaries, social security contributions, holiday and sick leave, bonuses and other monetary and non-monetary benefits are recognized in the year in which the employees render the associated services. Please also refer to the accounting policy for share-based payment. |
Pension plans | Pension plans The Group has entered into defined contribution plans only. Pension costs related to defined contribution plans are recorded in the income statement in the year to which they relate. |
Leases | Leases Agreements to charter in vessels and to lease other plant and operating equipment for which TORM substantially has all the risks and rewards of ownership are recognized in the balance sheet as finance leases. Lease assets are measured at the lower of fair value and the present value of minimum lease payments determined in the leases. For the purpose of calculating the present value, the interest rate implicit in the lease or an incremental borrowing rate is used as discount factor. The lease assets are depreciated and written down under the same accounting policy as the vessels owned by the Company or over the lease period depending on the lease terms. The corresponding lease obligation is recognized as a liability in the balance sheet, and the interest element of the lease payment is charged to the income statement as incurred. Other charter agreements concerning vessels and other leases are classified as operating leases, and lease payments are charged to the income statement on a straight-line basis over the lease term. The obligation for the remaining lease term is disclosed in the notes to the financial statements. Agreements to charter out vessels for which substantially all the risks and rewards of ownership are transferred to the lessee are classified as finance leases, and an amount equal to the net investment in the lease is recognized and presented in the balance sheet as a receivable. The carrying amount of the vessel is derecognized, and any gain or loss on disposal is recognized in the income statement. Other agreements to charter out vessels are classified as operating leases, and lease income is recognized in the income statement on a straight-line basis over the lease term. |
Revenue | Revenue Income is recognized in the income statement when: · The income generating activities have been carried out on the basis of a binding agreement · The income can be measured reliably · It is probable that the economic benefits associated with the transaction will flow to the Company · Costs relating to the transaction can be measured reliably Revenue comprises freight, charter hire and demurrage revenues from the vessels and gains and losses on forward freight agreements designated as hedges. Revenue is recognized when it meets the general criteria mentioned above, and when the stage of completion can be measured reliably. Accordingly, freight, charter hire and demurrage revenue are recognized at selling price upon delivery of the service as per the charter parties concluded. Cross-over voyages Revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. For cross-over voyages (voyages in progress at the end of a reporting period), the uncertainty and the dependence on estimates are greater than for finalized voyages. The Company recognizes a percentage of the estimated revenue for the voyage equal to the percentage of the estimated duration of the voyage completed at the balance sheet date. The estimate of revenue is based on the expected duration and destination of the voyage. Voyage expenses are recognized as incurred. When recognizing revenue, there is a risk that the actual number of days it takes to complete the voyage will differ from the estimate, and for time charter parties a lower day rate may have been agreed for additional days. The contract for a single voyage may state several alternative destination ports. The destination port may change during the voyage, and the rate may vary depending on the destination port. Changes to the estimated duration of the voyage as well as changing destinations and weather conditions will affect the voyage expenses. Demurrage revenue Freight contracts contain conditions regarding the amount of time available for loading and discharging of the vessel. If these conditions are breached, TORM is compensated for the additional time incurred in the form of demurrage revenue. Demurrage revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. Upon completion of the voyage, the Company assesses the time spent in port, and a demurrage claim based on the relevant contractual conditions is submitted to the charterers. The claim will often be met by counterclaims due to differences in the interpretation of the agreement compared to the actual circumstances of the additional time used. Based on previous experience, 95% of the demurrage claim submitted is recognized as demurrage revenue upon initial recognition. The Company receives the demurrage payment upon reaching final agreement on the amount, which on average is approximately 100 days after the original demurrage claim was submitted. Any adjustments to the final agreement are recognized as demurrage revenue. Port expenses, bunkers and commissions Port expenses, bunker fuel consumption and commissions are recognized as incurred. Gains and losses on forward bunker contracts designated as hedges and write-down and provisions for losses on freight receivables are included in this line. Freight and bunker derivatives Freight and bunker derivatives comprise fair value adjustments and gains and losses on forward freight agreements, forward bunker contracts and other derivative financial instruments directly relating to shipping activities which are not designated as hedges. The freight and bunker derivatives that qualify for hedge accounting are recognized in Revenue and Port expense, bunkers and commissions respectively, as the hedging instrument is realized. Charter hire Charter hire comprises expenses related to the chartering in of vessels under operating leases which have been incurred in order to achieve the net revenue for the year. |
Operating expenses | Operating expenses Operating expenses, which comprise crew expenses, repair and maintenance expenses and tonnage duty, are expensed as incurred. Profit from sale of vessels Profit from sale of vessels is recognized when the significant risks and rewards of ownership have been transferred to the buyer, representing the difference between the sales price less cost to sell and the carrying value of the vessel. Administrative expenses Administrative expenses, which comprise administrative staff costs, management costs, office expenses and other expenses relating to administration, are expensed as incurred. Other operating expenses Other operating expenses primarily comprise chartering commissions and management fees paid to commercial and technical managers for managing the fleet and to a lesser extent profits and losses deriving from the disposal of other plant and operating equipment. |
Depreciation and impairment losses | Depreciation and impairment losses Depreciation and impairment losses comprise depreciation of tangible fixed assets for the year as well as the write-down of the value of assets by the amount by which the carrying amount of the asset exceeds its recoverable amount. In the event of indication of impairment, the carrying amount is assessed, and the value of the asset is written down to its recoverable amount equal to the higher of value in use based on net present value of future earnings from the assets and its fair value less cost to sell. |
Financial income | Financial income Financial income comprises interest income, realized and unrealized exchange rate gains relating to transactions in currencies other than the functional currency, realized gains from other equity investments and securities, unrealized gains from securities, dividends received and other financial income including value adjustments of certain financial instruments not accounted for as hedges of future transactions. Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate. Dividends from other investments are recognized when the right to receive payment has been decided, which is typically when the dividend has been declared and can be received without conditions. |
Financial expenses | Financial expenses Financial expenses comprise interest expenses, financing costs of finance leases, realized and unrealized exchange rate losses relating to transactions in currencies other than the functional currency, realized losses from other equity investments and securities, unrealized losses from securities and other financial expenses including value adjustments of certain financial instruments not accounted for as hedges of future transactions. Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate. |
Tax | Tax Tax expenses comprise the expected tax including tonnage tax on the taxable income for the year for the Group, adjustments relating to previous years and the change in deferred tax for the year. However, tax relating to items in other comprehensive income is recognized directly in the statement of other comprehensive income. |
Goodwill | Goodwill Goodwill is measured as the excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities and is recognized as an asset under intangible assets. Goodwill is not amortized as it is considered to have an indefinite useful life, but the recoverable amount of goodwill is assessed at least once a year. For impairment testing purposes, goodwill is on initial recognition allocated to the cash generating unit expected to benefit from the synergies of the combination. If the recoverable amount of the cash generating unit is less than the carrying amount of the unit, the impairment loss is first allocated to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss for goodwill is not reversed in a subsequent period. |
Vessels | Vessels Vessels are measured at cost less accumulated depreciation and accumulated impairment losses. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use, including interest expenses incurred during the period of construction based on the loans obtained for the vessels. All major components of vessels except for dry-docking costs are depreciated on a straight-line basis to the estimated residual value over their estimated useful lives, which TORM estimates to be 25 years. The Company considers that a 25-year depreciable life is consistent with what is used by other shipowners with comparable tonnage. Depreciation is based on cost less the estimated residual value. Residual value is estimated as the lightweight tonnage of each vessel multiplied by scrap value per ton. The useful life and the residual value of the vessels are reviewed at least at each financial year-end based on market conditions, regulatory requirements and the Company's business plans. The Company also evaluates the carrying amounts to determine if events have occurred that indicate impairment and would require a modification of the carrying amounts. Prepayment on vessels is measured at costs incurred. Dry-docking Approximately every 30 and 60 months, depending on the nature of work and external requirements, the vessels are required to undergo planned dry-dockings for replacement of certain components, major repairs and major maintenance of other components, which cannot be carried out while the vessels are operating. These dry-docking costs are capitalized and depreciated on a straight-line basis over the estimated period until the next dry-docking. The residual value of such components is estimated at nil. The useful life of the dry-docking costs is reviewed at least at each financial year-end based on market conditions, regulatory requirements and TORM's business plans. A portion of the cost of acquiring a new vessel is allocated to the components expected to be replaced or refurbished at the next dry-docking. Depreciation hereof is carried over the period until the next dry-docking. For newbuildings, the initial dry-docking asset is estimated based on the expected costs related to the first-coming dry-docking, which again is based on experience and past history of similar vessels. For second-hand vessels, a dry-docking asset is also segregated and capitalized separately, taking into account the normal docking intervals of the vessels. At subsequent dry-dockings, the costs comprise the actual costs incurred at the dry-docking yard. Dry-docking costs may include the cost of hiring crews to carry out replacements and repairs, the cost of parts and materials used, cost of travel, lodging and supervision of Company personnel as well as the cost of hiring third-party personnel to oversee a dry-docking. Dry-docking activities include, but are not limited to, the inspection, service on turbocharger, replacement of shaft seals, service on boiler, replacement of hull anodes, applying of anti-fouling and hull paint, steel repairs as well as refurbishment and replacement of other parts of the vessel. Other plant and operating equipment Operating equipment is measured at cost less accumulated depreciation. Computer equipment is depreciated on a straight-line basis over three years, and other operating equipment is depreciated on a straight-line basis over five years. Leasehold improvements are measured at cost less accumulated amortization and impairment losses, and leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease and the estimated useful life. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use. |
Investments in joint ventures | Investments in joint ventures Investments in joint ventures comprise investments in companies which by agreement are managed jointly with one or more companies and therefore are subject to joint control and in which the parties have rights to the net assets of the joint venture. Joint ventures are accounted for using the equity method. Under the equity method, the investment in joint ventures is initially recognized at cost and thereafter adjusted to recognize TORM's share of the profit or loss in the joint venture. When TORM's share of losses in a joint venture exceeds the investment in the joint venture, TORM discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that TORM has incurred legal or constructive obligations or made payments on behalf of the joint venture. |
Financial assets | Financial assets Financial assets are initially recognized at the settlement date at fair value plus transaction costs, except for financial assets at fair value through profit or loss, which are recognized at fair value. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred. Financial assets are classified as: · Financial assets at fair value through profit or loss · Loans and receivables · Available-for-sale financial assets |
Other investments | Other investments Other investments comprise shares in other companies and are classified as available-for-sale. Listed shares are measured at the market value at the balance sheet date, and unlisted shares are measured at estimated fair value. Unrealized gains and losses resulting from changes in fair value of shares are recognized in "Other comprehensive income". Realized gains and losses resulting from sales of shares are recognized as "Financial income" or "Financial expenses" in the income statement. The cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement when the shares are sold. Dividends on shares in other companies are recognized as "Financial income" in the period in which they are declared. Other investments are presented as non-current, unless Management intends to dispose of the investments within 12 months from the balance sheet date. |
Receivables | Receivables Outstanding freight receivables and other receivables that are expected to be realized within 12 months from the balance sheet date are classified as loans and receivables and presented as current assets. Receivables are measured at the lower of amortized cost and net realizable values, which corresponds to nominal value less provision for bad debts. Derivative financial instruments included in other receivables are measured at fair value. |
Provisions for bad debt | Provisions for bad debt Provision for bad debt is defined as the write off of certain accounts receivable assessed as being uncollectible. The assessment is based on historical experience and on an individual basis. |
Impairment of assets | Impairment of assets Non-current assets are reviewed at least annually to determine any indication of impairment due to a significant decline in either the assets' market value or in the cash flows generated by the assets. In case of such indication, the recoverable amount of the asset is estimated as the higher of the asset's fair value less costs to sell and its value in use. The value in use is the present value of the future cash flows expected to derive from a cash generating unit, utilizing a pre-tax discount rate that reflects current market estimates of the time value of money and the risks specific to the unit for which the estimates of future cash flows have not been adjusted. If the recoverable amount is less than the carrying amount of the cash generating unit, the carrying amount is reduced to the recoverable amount. The impairment loss is recognized immediately in the income statement. Where an impairment loss subsequently reverses, the carrying amount of the cash generating unit is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined, had no impairment loss been recognized in prior years. For the purpose of assessing impairment, assets and time charter- and bareboat contracts are grouped at the lowest levels at which impairment is monitored for internal management purposes. There were two cash generating units in 2015, the Tanker Segment and the Bulk Segment. In 2017 and 2016, there was only one cash generating unit as the Bulk Segment was wound down in 2015. |
Bunkers | Bunkers Bunkers and luboil are stated at the lower of cost and net realizable value. Cost is determined using the FIFO method and includes expenditures incurred in acquiring the bunkers and luboil and delivery cost less discounts. |
Assets held-for-sale | Assets held-for-sale Assets are classified as held-for-sale if the carrying amount will be recovered principally through a sales transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject to terms that are usual and customary for sales of such assets, and when its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Assets held-for-sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Gains are recognized on delivery to the new owners in the income statement in the item "Profit from sale of vessels". Anticipated losses are recognized at the time the asset is classified as held-for-sale in the item "Impairment losses on tangible and intangible assets". |
Treasury shares | Treasury shares Treasury shares are recognized as a separate component of equity at cost. Upon subsequent disposal of treasury shares, any consideration is also recognized directly in equity. |
Share-based payments | Share-based payments The Group makes equity settled share-based payments to certain employees, which are measured at fair value at the date of grant and expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. The fair value of the share schemes is calculated using the Black Scholes method at grant date. |
Dividend | Dividend Dividend is recognized as a liability at the time of declaration. Dividend proposed for the year is moved from "Retained profit" and presented as a separate component of equity. |
Provisions | Provisions Provisions are recognized when the Company has a legal or constructive obligation as a result of past events, and when it is probable that this will lead to an outflow of resources that can be reliably estimated. Provisions are measured at the estimated liability that is expected to arise, taking into account the time value of money. |
Deferred tax | Deferred tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. In addition, the deferred tax also constitutes the reserve in relation to the transition balance in connection with the Danish tonnage tax scheme. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on the laws that have been enacted by the balance sheet date. The deferred tax is charged through the income statement except when it relates to other comprehensive income items. |
Mortgage debt and bank loans | Mortgage debt and bank loans At the time of borrowing, mortgage debt and bank loans are measured at fair value less transaction costs. Mortgage debt and bank loans are subsequently measured at amortized cost. This means that the difference between the net proceeds at the time of borrowing and the nominal amount of the loan is recognized in the income statement as a financial expense over the term of the loan applying the effective interest method. When terms of existing financial liabilities are renegotiated, or other changes regarding the effective interest rate occur, TORM performs a test to evaluate whether the new terms are substantially different from the original terms. If the new terms are substantially different from the original terms, TORM accounts for the change as an extinguishment of the original financial liability and the recognition of a new financial liability. TORM considers the new terms to be substantially different from the original terms if the present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. |
Other liabilities | Other liabilities Other liabilities are generally measured at amortized cost. Derivative financial instruments included in other liabilities are measured at fair value. |
CASH FLOW STATEMENT | CASH FLOW STATEMENT The cash flow statement shows the Company's cash flows as well as cash and cash equivalents at the beginning and the end of the period. Cash flow from operating activities is presented using the indirect method and is based on net profit/(loss) for the year adjusted for tax, financial income and expenses, net profit/(loss) from sale of vessels, non-cash operating items, changes in working capital, income tax paid, dividends received and interest paid/received. Cash flow from investing activities comprises the purchase and sale of tangible fixed assets and financial assets as well as cash from business combinations. Cash flow from financing activities comprises changes in long-term debt, bank loans, finance lease liabilities, purchases or sales of treasury shares and dividend paid to shareholders. Cash and cash equivalents comprise cash at bank and in hand including restricted cash. Other investments are classified as investing activities. |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is calculated by dividing the consolidated net profit/(loss) for the year available to common shareholders by the weighted average number of common shares outstanding during the period. Treasury shares are not included in the calculation. Purchases of treasury shares during the period are weighted based on the remaining period. Diluted earnings per share is calculated by adjusting the consolidated profit or loss available to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive shares. Such potentially dilutive common shares are excluded when the effect of including them would be to increase earnings per share or reduce a loss per share. |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in accordance with IFRS requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are affected by the way TORM applies its accounting policies. An accounting estimate is considered critical if the estimate requires Management to make assumptions about matters subject to significant uncertainty, if different estimates could reasonably have been used, or if changes in the estimate that would have a material impact on the Company's financial position or results of operations are reasonably likely to occur from period to period. Management believes that the accounting estimates applied are appropriate and the resulting balances are reasonable. However, actual results could differ from the original estimates requiring adjustments to these balances in future periods. Management believes that the following are the significant accounting estimates and judgements used in the preparation of the consolidated financial statements: ACCOUNTING ESTIMATES Carrying amounts of vessels The Company evaluates the carrying amounts of the vessels (including newbuildings) to determine if events have occurred that would require a modification of their carrying amounts. The valuation of vessels is reviewed based on events and changes in circumstances that would indicate that the carrying amount of the assets might not be recoverable. In assessing the recoverability of the vessels, the Company reviews certain indicators of potential impairment such as reported sale and purchase prices, market demand and general market conditions. Furthermore, market valuations from leading, independent and internationally recognized shipbrokers are obtained on a quarterly basis as part of the review for potential impairment indicators. If an indication of impairment is identified, the need for recognizing an impairment loss is assessed by comparing the carrying amount of the vessels to the higher of the fair value less cost to sell and the value in use. The review for potential impairment indicators and projection of future discounted cash flows related to the vessels is complex and requires the Company to make various estimates including future freight rates, utilization, earnings from the vessels, future operating and capital expenditure and discount rates. For more information on key assumptions and related sensitivities, please refer to note 8 in these financial statements. All these factors have been historically volatile. The carrying amounts of TORM's vessels may not represent their fair market value at any point in time, as market prices of second-hand vessels to a certain degree tend to fluctuate with changes in charter rates and the cost of newbuildings. However, if the estimated future cash flow or related assumptions in the future experience change, an impairment write-down or reversal of vessels may be required. JUDGEMENTS Reverse acquisition TORM's Restructuring was completed on 13 July 2015 and included inter alia a contribution by OCM Njord Holdings S.à r.l. ("Njord Luxco") of Njord to TORM in exchange for a controlling interest in TORM. The transaction is described in detail in note 27. Management has concluded that the contribution should be accounted for as a reverse acquisition according to IFRS 3 (Revised 2008) – Business Combinations ("IFRS 3"), i.e. Njord is the acquirer and Former TORM is the acquiree. Management's most significant judgements applying to the accounting policies relate to: · Identification of the acquirer · Calculation of consideration Identification of the acquirer IFRS 3 requires that the determination of the acquirer shall be determined based on the guidance in IFRS 10 – "Consolidated Financial Statements", which means that the acquirer will be the entity that obtains control over the acquiree. The acquirer in a business combination will therefore most often be the entity (Former TORM A/S) legally acquiring the other (Njord) in exchange for cash, other assets or in exchange for issuing its equity interests. However, IFRS 3 states that in some cases the accounting acquirer can be the entity that is legally being acquired, i.e. Njord. The latter is typically the case when the former shareholder (Njord Luxco) of the entity whose shares are being acquired (Njord) owns the majority of shares and controls the majority of votes in the combined entity (TORM) after the transaction. Following the transaction, Njord Luxco had control with the majority of the share capital and associated votes of Former TORM A/S, which led Management to conclude that the transaction is to be accounted for as a reverse acquisition, i.e. as if Former TORM A/S has been acquired by Njord rather than Former TORM A/S acquiring Njord. Calculation of consideration Based on the provision of IFRS 3, Njord's purchase price for a controlling interest in Former TORM A/S is calculated as the fair value of the interest in Njord that the existing shareholders and warrant holders in Former TORM A/S would have received, had the business combination of Former TORM A/S and Njord not been a reverse acquisition. As the issued shares of Former TORM A/S were publicly traded, Management considered whether the fair value of Former TORM A/S would have been a more reliable measure of the consideration. Management believes that the fair value of the interest in Njord that would have been issued represented the fair value of the consideration more reliably than the share price of Former TORM A/S. The share price of Former TORM A/S was very volatile during the period before the Restructuring due to the significant uncertainty about Former TORM A/S' future as an independent group. |
CONSOLIDATED SEGMENT INFORMAT36
CONSOLIDATED SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of operating segments [abstract] | |
Schedule of operating segments | 2015 USDm Tanker Segment Bulk Segment Not allocated Total Income Statement Revenue 538.7 1.7 - 540.4 Port expenses, bunkers and commissions -169.2 -0.5 - -169.7 Charter hire -11.1 -0.9 - -12.0 Operating expenses -121.7 -1.2 - -122.9 Administrative expenses - - -19.5 -19.5 Other operating expenses - - -6.3 -6.3 Share of profit/(loss) from joint ventures - - 0.2 0.2 Impairment losses on tangible and intangible assets - - - - Depreciation -67.1 -0.2 - -67.3 Operating profit/(loss) (EBIT) 169.6 -1.0 -25.6 143.0 Financial income - - 1.0 1.0 Financial expenses - - -16.9 -16.9 Profit/(loss) before tax 169.6 -1.0 -41.5 127.1 Tax - - -1.0 -1.0 Net profit/(loss) for the year 169.6 -1.0 -42.5 126.1 |
STAFF COSTS (Tables)
STAFF COSTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Staff Cost [Abstract] | |
Schedule of staff costs and average number of employees | USDm 2017 2016 2015 Total staff costs Staff costs included in operating expenses 9.2 9.9 9.7 Staff costs included in administrative expenses 34.6 31.0 14.2 Total 43.8 40.9 23.9 Staff costs comprise the following Wages and salaries 36.4 32.3 22.4 Share-based compensation 1.9 2.0 - Pension costs 3.1 3.6 1.4 Other social security costs 0.3 0.4 0.1 Other staff costs 2.1 2.6 - Total 43.8 40.9 23.9 Average number of permanent employees Seafarers 130.6 137.0 65.0 Land-based 286.6 269.1 133.0 Total 417.2 406.1 198.0 |
Schedule of termination benefits by title of individual | USD '000 2017 2016 2015 ⁵⁾ Non-Executive Board and Committee Remuneration, Short term Cheam Directors Limited ¹ ⁾ - - 3 Christopher H. Boehringer 290 237 88 Kari Millum Gardarnar ² ⁾ ⁾⁴⁾ - - 31 Rasmus Johannes Hoffmann ² ⁾ ⁾ - - 29 Flemming Ipsen ² ⁾ - - 38 Olivier Dubois ² ⁾ - - 17 Alexander Green ² ⁾ - - 19 Jon Syvertsen ² ⁾ - - 19 David Weinstein 174 131 48 Torben Janholt 174 131 48 Göran Trapp 174 158 58 Jeffery Stein ² ⁾ ⁾ - - 7 Total 812 657 405 ¹ ⁾ ² ⁾ ³ ⁾ 4) ⁵⁾ |
Schedule of key management personnel compensation | USD '000 Salary Taxable benefits Annual performance bonus Transaction bonus Total Executive Management Remuneration Jacob Meldgaard 2015, TORM A/S¹ ⁾ 362 19 144 345 870 2016, TORM A/S - restated ¹ ⁾ ⁾ 834 41 559 - 1,434 2016, TORM plc¹ ⁾ 39 - - - 39 2017, TORM A/S¹ ⁾ 923 42 580 - 1,545 2017, TORM plc¹ ⁾ 81 - - - 81 ¹ ⁾ ² ⁾ |
Schedule of staff costs | RSU LTIP grant Exercise price per share ¹ ⁾ RSU grant value assuming 100% vesting LTIP element of Jacob Meldgaard's remuneration package 2017: Jacob Meldgaard ² ⁾ 1,276,273 DKK 96.3 USD 3.4m ¹ ⁾ in September 2016. Further adjusted in December 2017 to DKK 93.5 due to dividend payment in September 2017. ² ⁾ |
Schedule of reconciliation number of other equity instruments | Number of shares (1,000) 2017 2016 2015 Outstanding 1 January 1,999.8 - - Granted during the period 866.6 2,127.4 - Exercised during the period - - - Expired during the period -233.9 - - Forfeited during the period -21.3 -127.6 - Outstanding 31 December 2,611.2 1,999.8 - Exercisable 31 December 255.3 538.9 - |
REMUNERATION TO AUDITORS APPO38
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Auditor's remuneration [abstract] | |
Schedule of auditor remuneration | USDm 2017 2016 2015 Audit fees Fees payable to the Company's auditor for the audit of the Company's annual accounts 0.4 0.4 0.2 Audit of the Company's subsidiaries pursuant to legislation 0.2 0.1 0.1 Total audit fees 0.6 0.5 0.3 Non-audit fees Audit related services 0.4 0.6 1.1 Tax services - 0.3 0.5 Other services - 0.1 0.2 Total non-audit fees 0.4 1.0 1.8 Total 1.0 1.5 2.1 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of reconciliation of changes in intangible assets and goodwill | USDm 2017 2016 2015 Goodwill Cost: Balance as of 1 January 11.4 11.4 - Additions during the year - - 11.4 Balance as of 31 December 11.4 11.4 11.4 Impairment losses: Balance as of 1 January -11.4 - - Impairment losses for the year - -11.4 - Balance as of 31 December -11.4 -11.4 - Carrying amount as of 31 December - - 11.4 |
TANGIBLE FIXED ASSETS (Tables)
TANGIBLE FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of tangible fixed assets | USDm 2017 2016 2015 Vessels and capitalized dry-docking Cost: Balance as of 1 January 1,697.4 1,567.5 530.1 Additions 103.1 40.8 112.0 Additions from business combinations - - 857.4 Disposals -14.3 -16.3 -18.6 Transferred to/from other items - 105.4 104.6 Transferred to assets held-for-sale -59.6 - -18.0 Balance as of 31 December 1,726.6 1,697.4 1,567.5 Depreciation: Balance as of 1 January 180.0 75.5 27.9 Disposals -14.3 -15.9 -18.6 Depreciation for the year 113.6 120.4 66.5 Transferred to assets held-for-sale -20.8 - -0.3 Balance as of 31 December 258.5 180.0 75.5 Impairment: Balance as of 1 January 173.6 - - Impairment losses on tangible fixed assets - 173.6 - Balance as of 31 December 173.6 173.6 - Carrying amount as of 31 December 1,294.5 1,343.8 1,492.0 Of which finance leases as of 31 December 28.6 12.4 13.1 USDm 2017 2016 2015 Prepayments on vessels Balance as of 1 January 44.1 72.6 34.7 Additions 44.3 76.9 142.5 Transferred to/from other items - -105.4 -104.6 Balance as of 31 December 88.4 44.1 72.6 Carrying amount as of 31 December 88.4 44.1 72.6 USDm 2017 2016 2015 Other plant and operating equipment Cost: Balance as of 1 January 2.7 3.2 - Additions 1.0 1.1 0.9 Additions from business combinations - - 2.5 Disposals -0.1 -1.6 -0.2 Balance as of 31 December 3.6 2.7 3.2 Depreciation: Balance as of 1 January 0.9 0.7 - Disposals -0.1 -1.6 -0.2 Depreciations for the year 0.9 1.8 0.9 Balance as of 31 December 1.7 0.9 0.7 Carrying amount as of 31 December 1.9 1.8 2.5 Of which finance leases as of 31 December - - - |
FINANCIAL ITEMS (Tables)
FINANCIAL ITEMS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Items [Abstract] | |
Schedule of finance income costs | USDm 2017 2016 2015 Financial income Interest income from cash and cash equivalents ¹ ⁾ 1.6 0.2 0.3 Exchange rate adjustments, including gain from forward exchange rate contracts 2.7 2.8 0.7 Total 4.3 3.0 1.0 Financial expenses Interest expenses on mortgage and bank debt ¹ ⁾ 33.3 29.7 15.0 Exchange rate adjustments, including loss from forward exchange rate contracts 3.2 2.6 0.6 Other financial expenses 4.1 5.2 1.3 Total 40.6 37.5 16.9 Total financial items -36.3 -34.5 -15.9 ¹ ⁾ |
FREIGHT RECEIVABLES (Tables)
FREIGHT RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Freight Receivables [Abstract] | |
Schedule of individually determined to be impaired to a value | USDm 2017 2016 2015 Analysis as of 31 December of freight receivables: Neither past due nor impaired 25.5 28.7 40.3 Past due not impaired: Due before 30 days 26.0 13.0 22.8 Due between 30 and 180 days 18.4 18.7 16.4 Past due and impaired: Due after 180 days 2.7 4.7 5.3 Total gross 72.6 65.1 84.8 Provision for impairment of freight receivables 1.3 2.6 1.7 Total net 71.3 62.5 83.1 |
Schedule of movment in provisions for impairment of freight receivables | USDm 2017 2016 2015 Provisions for impairment of Freight receivables Balance as of 1 January 2.6 1.7 - Addition from business combinations - - 1.9 Provisions for the year 0.6 1.9 0.5 Provisions reversed during the year -1.9 -1.0 -0.7 Balance as of 31 December 1.3 2.6 1.7 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
Schedule of other current receivables | USDm 2017 2016 Partners and commercial managements - 0.5 Derivative financial instruments 7.6 3.3 Tax receivables 1.3 1.1 Other 2.9 3.2 Balance as of 31 December 11.8 8.1 |
TAX (Tables)
TAX (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Income Tax [Abstract] | |
Schedule of income tax | USDm 2017 2016 2015 Tax for the year Current tax for the year 1.0 1.2 1.3 Adjustments related to previous years -0.1 -0.3 -0.2 Adjustment of deferred tax asset -0.1 -0.1 -0.1 Total 0.8 0.8 1.0 |
Schedule of deferred taxes | USDm 2017 2016 2015 Deferred tax liability Balance at 1 January 45.0 45.1 - Addition from business combination - - 45.2 Deferred tax for the year -0.1 -0.1 -0.1 Balance as of 31 December 44.9 45.0 45.1 |
COMMON SHARES & TREASURY SHAR45
COMMON SHARES & TREASURY SHARES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of classes of share capital [abstract] | |
Schedule of purposes due to the corporate reorganization, the common shares | Common shares 2017 2016 2015 Number of shares Number of shares Number of shares A-shares 62,298,846 62,298,846 63,836,249 B-shares 1 1 1 C-shares 1 1 1 Total 62,298,848 62,298,848 63,836,251 |
Schedule of treasury share transactions | Treasury shares 2017 2016 2015 Number of shares ('000) Balance as of 1 January 312.9 15.3 - Additions - 312.9 15.3 Cancellations - -15.3 - Disposals - - - Balance as of 31 December 312.9 312.9 15.3 Nominal value USDm Balance as of 1 January - - - Additions - - - Cancellations - - - Disposals - - - Balance as of 31 December - - - % of share capital Balance as of 1 January 0.5 0.2 - Additions - 0.5 0.2 Cancellations - -0.2 - Disposals - - Balance as of 31 December 0.5 0.5 0.2 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Other Liabilities [Abstract] | |
Schedule of other liabilities | USDm 2017 2016 Partners and commercial managements 1.4 2.0 Accrued operating expenses 8.5 5.2 Accrued interest 5.2 5.8 Wages and social expenses 16.3 14.6 Derivative financial instruments - 4.8 Payables to joint ventures 0.1 0.1 Other 2.3 0.5 Balance as of 31 December 33.8 33.0 |
EFFECTIVE INTEREST RATE, OUTS47
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Effective Interest Rate, Outstanding Mortgage Debt And Bank Loans [Abstract] | |
Schedule of effective interest rate, outstanding mortgage debt and bank loans | 2017 2016 2015 USDm Fixed/ Maturity Effective ⁾ Carrying ⁾ Maturity Effective ⁾ Carrying ⁾ Maturity Effective ⁾ Carrying ⁾ LOAN DSF Facility 1 (USD) Floating 2021 5.4% 74.3 2019 4.6% 109.4 2019 4,1% 125.7 TFA Facility 1 (USD) Floating 2021 5.0% 400.8 2021 4.6% 470.0 2021 4.3% 548.9 DSF Facility 3 (USD) Floating 2021 5.0% 56.5 2021 4.6% 62.2 2021 4,4% 66.6 DSF Facility 4 (USD) Floating 2022 5.1% 26.8 2022 4.8% 30.0 2019 4,1% 26.0 TFA Facility 2 (USD) Floating 2022 5.4% 115.0 N/A N/A - N/A N/A - ING (USD) Floating 2024 4.6% 45.8 N/A N/A - N/A N/A - Weighted average effective interest rate 5.1% 4.6% 4.3% Carrying value 719.1 671.6 767.2 Hereof non-current ² ⁾ 633.1 595.7 717.5 Hereof current ² ⁾ 86.0 75.9 49.7 ¹ ⁾ ² ⁾ |
CONTRACTUAL OBLIGATIONS (Tables
CONTRACTUAL OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Contractual Commitments [Abstract] | |
Schedule of contractual obligations | USDm 2018 2019 2020 2021 2022 Thereafter Total Mortgage debt and bank loans ¹ 92.7 86.7 82.2 346.7 89.2 28.3 725.8 Interest payments related to scheduled interest fixing 20.4 14.4 12.1 8.9 0.4 - 56.2 Estimated variable interest payments ² 11.9 13.6 12.2 9.1 2.6 2.0 51.4 Finance lease liabilities 2.9 3.2 3.4 3.7 15.0 - 28.2 Interest element regarding finance lease 2.3 2.0 1.7 1.4 0.3 - 7.7 Newbuilding installments ³ 144.2 162.7 - - - - 306.9 Chartered-in vessels (operating lease) ⁴⁾ 2.9 - - - - - 2.9 Other operating leases ⁵⁾ 2.5 1.8 0.7 0.2 - - 5.2 Trade payables and other obligations 51.5 - - - - - 51.5 Total 331.3 284.4 112.3 370.0 107.5 30.3 1,235.8 ¹ ⁾ ² ⁾ ³ ⁾ ⁴⁾ ⁵⁾ |
Schedule of reconciliation of liabilities arising from financing activities | Cash Non-cash USDm Opening balance as of 1 January 2017 Borrowings Repayments Changes in fair value Other changes End balance as of 31 December 2017 Mortgage debt 669.6 175.4 -125.5 0.7 0.7 720.9 Financial lease 13.6 30.2 -16.7 0.6 0.5 28.2 Swaps, fair value hedging 2.0 - -1.4 -0.6 - - Total 685.2 205.6 -143.6 0.7 1.2 749.1 |
Schedule of contractual rights | USDm 2018 2019 2020 2021 2022 Thereafter Total Contractual rights - as lessor: Charter hire income for vessels ⁶⁾ 45.5 4.7 - - - - 50.2 Total 45.5 4.7 - - - - 50.2 ⁶⁾ |
DERIVATIVE FINANCIAL INSTRUME49
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Derivative Financial Instruments Explanatory [Abstract] | |
Schedule of disclosure of derivative financial instruments | USDm 2017 2016 Fair value of derivatives: Derivative financial instruments regarding freight and bunkers: Forward Freight Agreements -0.2 -0.1 Bunker swaps 0.8 0.8 Derivative financial instruments regarding interest and currency exchange rate: Forward exchange contracts 1.8 -4.6 Interest rate swaps 5.1 2.4 Fair value of derivatives as of 31 December 7.5 -1.5 Of which included in: Other receivables 7.3 3.3 Other liabilities 0.2 -4.8 |
Schedule of realized amounts and fair value adjustments for derivative financial instruments | Income statement Equity USDm Revenue Port expenses, bunkers and commissions Financial items Hedging reserves 2017 Forward Freight Agreements 0.5 - - -0.3 Bunker swaps - 1.2 - 0.0 Forward exchange contracts - - -1.4 4.4 Interest rate swaps - - -2.0 2.7 Total 0.5 1.2 -3.4 6.9 2016 Forward Freight Agreements -0.1 - - -0.2 Bunker swaps - 0.0 - 1.0 Forward exchange contracts - - 0.1 -3.4 Interest rate swaps - - -2.9 1.6 Total -0.1 0.0 -2.8 -1.0 2015 Forward Freight Agreements 0.6 - - 0.0 Bunker swaps - -0.9 - -0.2 Forward exchange contracts - - - 0.8 Interest rate swaps - - - 0.8 Total 0.6 -0.9 - 1.4 |
RISKS ASSOCIATED WITH TORM'S 50
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Risks Associated With Entities Activities [Abstract] | |
Schedule of sensitivity analysis for changes in freight rates | USDm 2018 2017 2016 Decrease in freight rates of USD/day 1,000: Changes in profit before tax 24.1 25.0 26.7 Changes in equity 24.1 25.0 26.7 |
Schedule of sensitivity analysis, impact of 10 percent per ton increase in bunker prices | USDm 2018 2017 2016 Increase in the bunker prices of 10% per ton: Changes in profit before tax -18.3 -15.6 -12.8 Changes in equity -18.3 -15.6 -12.8 |
Schedule of sensitivity analysis, impact of 10 percent change in exchange rate | USDm 2018 2017 2016 Effect of a 10% increase of DKK and EUR: Changes in profit before tax -2.5 -1.7 -2.8 Changes in equity -2.5 -1.7 -2.8 |
Schedule of sensitivity analysis, impact of 1 percent point increase in interest rate | USDm 2018 2017 2016 Effect of a 1%-point increase in interest rates: Changes in profit before tax -3.2 -2.5 -3.3 Changes in equity 3.6 6.8 9.5 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Schedule of fair value measurement of assets and liabilities | Categories of financial assets and liabilities (USDm): Quoted Observable Unobservable Fair value Amortized cost Carrying value 2017: Loans and receivables Freight receivables ¹ - - - - 71.3 71.3 Other receivables - 7.6 - 7.6 4.2 11.8 Cash and cash equivalents ¹ - - - - 134.2 134.2 Total - 7.6 - 7.6 209.7 217.3 Financial liabilities Mortgage debt and bank loans ² - - - - 720.9 720.9 Finance lease liabilities ¹ - - - - 28.2 28.2 Trade payables ¹ - - - - 26.2 26.2 Other liabilities ¹ - -0.2 - -0.2 34.0 33.8 Total - -0.2 - -0.2 809.3 809.1 2016: Loans and receivables Freight receivables ¹ - - - - 62.5 62.5 Other receivables - 3.3 - 3.3 4.8 8.1 Cash and cash equivalents ¹ - - - - 76.0 76.0 Total - 3.3 - 3.3 143.3 146.6 Financial liabilities Mortgage debt and bank loans ² - - - - 669.6 669.6 Finance lease liabilities ¹ - - - - 13.6 13.6 Trade payables ¹ - - - - 28.5 28.5 Other liabilities ¹ - 4.8 - 4.8 28.3 33.1 Total - 4.8 - 4.8 740.0 744.8 ¹ ⁾ ² ⁾ |
CASH FLOWS (Tables)
CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Cash Flow Statement [Abstract] | |
Schedule of cash flow statement | USDm 2017 2016 2015 Reversal of other non-cash movements: Amortization of acquired assets and liabilities - -0.1 -0.7 Exchange rate adjustments 1.8 -2.4 -0.1 Share-based payments 1.9 2.0 - Equity transactions expensed in relation to the Corporate Reorganization - -6.4 - Other adjustments - -0.2 -0.1 Total 3.7 -7.1 -0.9 USDm 2017 2016 2015 Change in bunkers, receivables and payables: Change in bunkers -1.6 -6.1 15.6 Change in receivables -12.4 18.1 6.1 Change in prepayments -1.4 2.7 4.9 Change in trade payables and other liabilities -4.5 -5.4 -11.9 Adjusted for fair value changes of derivative financial instruments 6.9 -1.0 2.2 Total -13.0 8.3 16.9 |
ENTITIES IN THE GROUP (Tables)
ENTITIES IN THE GROUP (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of information about consolidated structured entities [abstract] | |
Schedule of of subsidiaries | Entity Country TORM plc United Kingdom Investments in subsidiaries ⁸⁾ Entity Country Ownership ⁷⁾ TORM A/S ¹ ⁾ Denmark 100% DK Vessel HoldCo GP ApS ¹ ⁾ Denmark 100% DK Vessel HoldCo K/S ¹ ⁾ Denmark 100% OCM (Gibraltar) Njord Midco Ltd Gibraltar 100% OCM Njord Chartering Inc Marshall Islands 100% OCM Singapore Njord Holdings Agnes, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Alice, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Almena, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Amalie, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Aslaug, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Hardrada, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings St.Michaelis Pte. Ltd Singapore 100% OCM Singapore Njord Holdings St. Gabriel Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Harald Pte. Ltd ⁵⁾ Singapore 100% OCM Singapore Njord Holdings Gorm Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Knut Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Valdemar Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Agnete, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Alexandra, Pte. Ltd Singapore 100% OCM Singapore Njord Holdings Anabel, Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Arawa Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Leif Pte. Ltd ⁶⁾ Singapore 100% OCM Singapore Njord Holdings Rolf Pte. Ltd ⁵⁾ Singapore 100% Investments in subsidiaries ⁸⁾ Entity Country Ownership ⁷⁾ OCM Holdings Mrs Inc. Marshall Islands 100% OCM Njord Anne Inc. Marshall Islands 100% OCM Njord Freya Inc. Marshall Islands 100% OCM Njord Gerd Inc. Marshall Islands 100% OCM Njord Gertrud Inc. Marshall Islands 100% OCM Njord Gunhild Inc. Marshall Islands 100% OCM Njord Helene Inc. Marshall Islands 100% OCM Njord Helvig Inc. Marshall Islands 100% OCM Njord Ingeborg Inc. Marshall Islands 100% OCM Njord Mary Inc. Marshall Islands 100% OCM Njord Ragnhild Inc. Marshall Islands 100% OCM Njord Thyra Inc. Marshall Islands 100% OCM Njord Valborg Inc. Marshall Islands 100% OCM Njord Vita Inc. Marshall Islands 100% OMI Holding Ltd. ¹ ⁾ ⁶⁾ Mauritius 100% Torghatten & TORM Shipowning ApS ¹ ⁾ ⁵⁾ Denmark 100% TORM Brasil Consultoria em Transporte Maritimo LTDA. ¹ ⁾ ⁴⁾ Brazil 100% TORM Crewing Service Ltd.¹ ⁾ Bermuda 100% TORM Shipping India Private Limited ¹ ⁾ India 100% TORM Singapore Pte. Ltd. ¹ ⁾ Singapore 100% TORM USA LLC ¹ ⁾ USA 100% TT Shipowning K/S ¹ ⁾ ⁵⁾ Denmark 100% VesselCo 1 K/S ¹ ⁾ Denmark 100% Investments in subsidiaries ⁸⁾ Entity Country Ownership ⁷⁾ VesselCo 2 Pte. Ltd. ¹ ⁾ 4 ⁾ Singapore 100% VesselCo 3 K/S ¹ ⁾ Denmark 100% VesselCo 4 Pte. Ltd. ¹ ⁾ 4 ⁾ Singapore 100% VesselCo 5 K/S ¹ ⁾ ⁾ Denmark 100% VesselCo 6 Pte. Ltd.¹ ⁾ Singapore 100% VesselCo 7 Pte. Ltd. ¹ ⁾ Singapore 100% VesselCo 8 Pte. Ltd. ¹ ⁾ Singapore 100% VesselCo 9 Pte. Ltd. ² ⁾ Singapore 100% VesselCo 10 Pte. Ltd. ² ⁾ Singapore 100% VesselCo 11 Pte. Ltd. ² ⁾ Singapore 100% VesselCo 12 Pte. Ltd. ³ ⁾ Singapore 100% TORM Shipping (Phils.), Inc. ¹ ⁾ Philippines 25% VesselCo A ApS ¹ ⁾ Denmark 100% VesselCo C ApS ¹ ⁾ Denmark 100% VesselCo E ApS ³ ⁾ Denmark 100% 1) Entities added in the financial year ended 31 December 2015. 2) Entities added in the financial year ended 31 December 2016. 3) Entities added in the financial year ended 31 December 2017. 4) Entities dissolved in the financial year ended 31 December 2015. 5) Entities dissolved in the financial year ended 31 December 2016. 6) Entities dissolved in the financial year ended 31 December 2017. 7) For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.) INC where voting rights are 100%. 8) All subsidiaries are consolidated in full. |
Schedule of registered addresses | Denmark India Philippines Singapore Tuborg Havnevej 18, 2nd Floor 7th Floor 6 Battery Road #27-02 DK-2900 Hellerup Leela Business Park Salcedo Towers, 169 Singapore 049909 Denmark Andheri-Kurla Road HV dela Costa Street Singapore Andheri (E) Salcedo Village, Mumbai 400059 Makati City India Philippines 1227 United Kingdom USA Marshall Islands Mauritius Birchin Court Suite 710 c/o The Trust c/o Temple Corporate 20 Birchin Lane 2500 City West Company of Services London, EC3V 9DU Boulevard Marshall Islands, Inc. Temple Court 2, United Kingdom 77042, Houston , Texas P.O. Box 2095 Labourdonnais Street USA Reston VA 20195-0095 Port Louis USA Mauritius Bermuda Gibraltar Brazil c/o Estera Services 57/63 Line Wall Road Avenida Rio Branco (Bermuda Limited) GX11 1AA 01-1201 Canon's Court Gibraltar CEP 200090-003 22 Victoria Street Rio de Janeiro PO Box 1624 Brazil Hamilton HM GX Bermuda |
Schedule of joint ventures | 2017 Entity Country % Control Profit and Other compre-hensive Total compre-hensive Long Range 2 A/S Denmark 50% - - - LR2 Management K/S Denmark 50% - - - |
EARNINGS PER SHARE & DIVIDEND54
EARNINGS PER SHARE & DIVIDEND PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Earnings Per Share And Dividend Per Share [Abstract] | |
Schedule of earnings per share | 2017 2016 2015 EARNINGS PER SHARE Net profit/(loss) for the year (USDm) 2.4 -142.5 126.0 Million shares Average number of shares 62.3 63.1 51.7 Average number of treasury shares -0.3 -0.2 - Average number of shares outstanding 62.0 62.9 51.7 Dilutive effect of outstanding share options - - - Average number of shares outstanding incl. dilutive effect of share options 62.0 62.9 51.7 Basic earnings/(loss) per share (USD) 0.04 -2.3 2.4 Diluted earnings/(loss) per share (USD) 0.04 -2.3 2.4 |
Schedule of dividend per share | 2017 2016 2015 DIVIDEND PER SHARE Dividend for the year (USDm) 1.2 25.0 - Number of shares, end of period (million) 62.3 62.3 63.8 Dividend per share 0.02 0.40 - |
BUSINESS COMBINATIONS IN 2015 (
BUSINESS COMBINATIONS IN 2015 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of fair value of assets acquired and liabilities assumed | USDm Tangible fixed assets 859.9 Investment in joint ventures 0.3 Bunkers 27.8 Freight receivables 53.4 Other receivables 6.6 Prepayments 10.6 Cash and cash equivalents 77.5 Deferred tax liabilities -45.1 Mortgage debt and bank loans -560.7 Finance lease liabilities -13.5 Trade payables -27.3 Current tax liabilities -1.4 Other liabilities -29.7 Time charter contracts -1.6 Deferred income -0.4 Net assets acquired 356.4 Goodwill 11.4 Consideration (purchase price) 367.8 Of which: Shares 349.8 Warrants 18.0 367.8 |
ACCOUNTING POLICIES, CRITICAL56
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual) | Mar. 27, 2015 |
TORM A/S | |
Disclosure Of Business Overview [Line Items] | |
Percentage of voting rights | 62.00% |
ACCOUNTING POLICIES, CRITICAL57
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual 1) - TORM A/S $ in Millions | Apr. 15, 2016USD ($)ratio |
Disclosure Of Business Overview [Line Items] | |
Percentage of shares exchanged | 97.60% |
Percentage of remaining shares acquired | 2.40% |
Total cash consideration | $ | $ 19.2 |
Ratio of warrants exchanged | ratio | 1 |
ACCOUNTING POLICIES, CRITICAL58
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual 2) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2015USD ($)Segment | Jan. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | |
Disclosure Of Accounting Policy [Line Items] | |||||
Cash and cash equivalents | $ 134,207 | $ 168,258 | $ 75,971 | $ 38,056 | |
Net debt | 620,000 | ||||
Undrawn debt | $ 271,000 | 75,000 | 190,000 | ||
Net interest-bearing debt loan-to-value ratio | 55.80% | ||||
Raised equity | $ 791,050 | $ 975,976 | $ 780,578 | $ 469,514 | |
Number of business segments | Segment | 2 | ||||
Number of geographical segment | Segment | 1 | ||||
Demurrage revenue claim percentage | 95.00% | ||||
Average period of receiving demurrage payment | 100 days | ||||
Major ordinary share transactions | |||||
Disclosure Of Accounting Policy [Line Items] | |||||
Raised equity | $ 100,000 |
ACCOUNTING POLICIES, CRITICAL59
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual 3) - cashgeneratingunit | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Accounting Policy [Line Items] | |||
Depreciation method | straight-line basis | ||
Number of cash generating unit | 1 | 1 | 2 |
Minimum percentage of difference to recognize new financial liability | 10.00% | ||
Dry Docking period | every 30 and 60 months | ||
Ships | |||
Disclosure Of Accounting Policy [Line Items] | |||
Estimated useful lives | 25 years | ||
Computer equipment | |||
Disclosure Of Accounting Policy [Line Items] | |||
Estimated useful lives | over three years | ||
Other property, plant and equipment | |||
Disclosure Of Accounting Policy [Line Items] | |||
Estimated useful lives | over five years |
LIQUIDITY, CAPITAL RESOURCES 60
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS (Details textuals) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)Newbuilding | Dec. 31, 2016USD ($)Newbuilding | Dec. 31, 2015USD ($)Newbuilding | Jul. 31, 2015USD ($) | |
Liquidity And Capital Resources [Line Items] | ||||
Cash position | $ 134 | $ 76 | $ 168 | |
Undrawan credit facilities | $ 271 | $ 190 | $ 75 | |
Newbuildings on order for delivery | Newbuilding | 10 | 4 | 7 | |
Total outstanding CAPEX related to newbuildings | $ 307 | $ 149 | $ 224 | |
Mortgage debt and bank loans (Note 2,15,16,18) | 719.1 | $ 671.6 | $ 767.2 | |
Scheduled minimum payments on mortgage debt and bank loans in 2018 | 93 | |||
Working capital facility | ||||
Liquidity And Capital Resources [Line Items] | ||||
Undrawan credit facilities | 75 | $ 75 | ||
Term facility I | ||||
Liquidity And Capital Resources [Line Items] | ||||
Mortgage debt and bank loans (Note 2,15,16,18) | 401 | |||
Term facility II | ||||
Liquidity And Capital Resources [Line Items] | ||||
Mortgage debt and bank loans (Note 2,15,16,18) | 115 | |||
Bilateral borrowing facility | China export import Bank | ||||
Liquidity And Capital Resources [Line Items] | ||||
Undrawan credit facilities | 115 | |||
Bilateral borrowing facility | Danish ship finance | ||||
Liquidity And Capital Resources [Line Items] | ||||
Undrawan credit facilities | 81 | |||
Bilateral loan agreements | Danish ship finance | ||||
Liquidity And Capital Resources [Line Items] | ||||
Mortgage debt and bank loans (Note 2,15,16,18) | 158 | |||
Bilateral loan agreements | ING | ||||
Liquidity And Capital Resources [Line Items] | ||||
Mortgage debt and bank loans (Note 2,15,16,18) | $ 46 |
LIQUIDITY, CAPITAL RESOURCES 61
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS (Details textuals 1) | 1 Months Ended | |||||||
Jan. 26, 2018USD ($)$ / sharesshares | Jan. 23, 2018USD ($)shares | Jan. 22, 2018USD ($) | Dec. 31, 2017shares | Dec. 31, 2016shares | Apr. 15, 2016$ / shares | Apr. 15, 2016kr / shares | Dec. 31, 2015shares | |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Number of shares issued | 62,298,848 | 62,298,848 | 63,836,251 | |||||
Par value of common shares (in DKK) | (per share) | $ 0.01 | kr 15 | ||||||
Common class A shares | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Number of shares issued | 62,298,846 | 62,298,846 | 63,836,249 | |||||
Common class B shares | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Number of shares issued | 1 | 1 | 1 | |||||
Common class C shares | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Number of shares issued | 1 | 1 | 1 | |||||
Entering into significant commitments or contingent liabilities | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Maximum financing of secured commitment for attractive vessel | $ | $ 50,000,000 | |||||||
Major ordinary share transactions | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Proceeds from private placement | $ | $ 100,000,000 | |||||||
Number of shares issued in Private placement | 11,920,000 | |||||||
Nominal value of shares issued | $ | $ 742,188.48 | |||||||
Number of shares issued | 74,218,846 | |||||||
Major ordinary share transactions | Common class A shares | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Par value of common shares (in DKK) | $ / shares | $ 0.01 | |||||||
Major ordinary share transactions | Common class B shares | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Par value of common shares (in DKK) | $ / shares | 0.01 | |||||||
Major ordinary share transactions | Common class C shares | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Par value of common shares (in DKK) | $ / shares | $ 0.01 | |||||||
Classification of assets as held for sale | ||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||
Net profit from sale of vessels | $ | $ 600,000 |
CONSOLIDATED SEGMENT INFORMAT62
CONSOLIDATED SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of profit or loss and other comprehensive income [abstract] | |||
Revenue | $ 540,400 | ||
Port expenses, bunkers and commissions | $ (259,888) | $ (221,859) | (169,646) |
Charter hire | (12,000) | ||
Operating expenses (Note 4) | (188,374) | (195,249) | (122,867) |
Administrative expenses (Note 4, 5) | (45,007) | (41,406) | (19,486) |
Other operating expenses | (6,300) | ||
Share of profit/(loss) from joint ventures | 200 | ||
Impairment losses on tangible and intangible assets | 20,000 | 0 | |
Depreciation (Note 7) | (114,451) | (122,215) | (67,327) |
Operating profit/(loss) (EBIT) | 39,529 | (107,212) | 142,958 |
Total | 4,255 | 2,814 | 992 |
Financial expenses (Note 9) | (40,601) | (37,333) | (16,926) |
Profit/(loss) before tax | 3,184 | (141,731) | 127,024 |
Tax (Note 12) | (777) | (760) | (1,041) |
Net profit/(loss) for the year | $ 2,407 | $ 142,491 | 125,983 |
Operating segments | Tanker Segment | |||
Statement of profit or loss and other comprehensive income [abstract] | |||
Revenue | 538,700 | ||
Port expenses, bunkers and commissions | (169,200) | ||
Charter hire | (11,100) | ||
Operating expenses (Note 4) | (121,700) | ||
Administrative expenses (Note 4, 5) | 0 | ||
Other operating expenses | 0 | ||
Share of profit/(loss) from joint ventures | 0 | ||
Impairment losses on tangible and intangible assets | 0 | ||
Depreciation (Note 7) | (67,100) | ||
Operating profit/(loss) (EBIT) | 169,600 | ||
Total | 0 | ||
Financial expenses (Note 9) | 0 | ||
Profit/(loss) before tax | 169,600 | ||
Tax (Note 12) | 0 | ||
Net profit/(loss) for the year | 169,600 | ||
Operating segments | Bulk Segment | |||
Statement of profit or loss and other comprehensive income [abstract] | |||
Revenue | 1,700 | ||
Port expenses, bunkers and commissions | (500) | ||
Charter hire | (900) | ||
Operating expenses (Note 4) | (1,200) | ||
Administrative expenses (Note 4, 5) | 0 | ||
Other operating expenses | 0 | ||
Share of profit/(loss) from joint ventures | 0 | ||
Impairment losses on tangible and intangible assets | 0 | ||
Depreciation (Note 7) | (200) | ||
Operating profit/(loss) (EBIT) | (1,000) | ||
Total | 0 | ||
Financial expenses (Note 9) | 0 | ||
Profit/(loss) before tax | (1,000) | ||
Tax (Note 12) | 0 | ||
Net profit/(loss) for the year | (1,000) | ||
Not allocated | |||
Statement of profit or loss and other comprehensive income [abstract] | |||
Revenue | 0 | ||
Port expenses, bunkers and commissions | 0 | ||
Charter hire | 0 | ||
Operating expenses (Note 4) | 0 | ||
Administrative expenses (Note 4, 5) | (19,500) | ||
Other operating expenses | (6,300) | ||
Share of profit/(loss) from joint ventures | 200 | ||
Impairment losses on tangible and intangible assets | 0 | ||
Depreciation (Note 7) | 0 | ||
Operating profit/(loss) (EBIT) | (25,600) | ||
Total | 1,000 | ||
Financial expenses (Note 9) | (16,900) | ||
Profit/(loss) before tax | (41,500) | ||
Tax (Note 12) | (1,000) | ||
Net profit/(loss) for the year | $ (42,500) |
CONSOLIDATED SEGMENT INFORMAT63
CONSOLIDATED SEGMENT INFORMATION (Details textuals) | 12 Months Ended |
Dec. 31, 2015Segment | |
Disclosure of operating segments [abstract] | |
Number of business segments | 2 |
STAFF COSTS (Details)
STAFF COSTS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Employees | Dec. 31, 2016USD ($)Employees | Dec. 31, 2015USD ($)Employees | |
Total staff costs | |||
Staff costs | $ 43.8 | $ 40.9 | $ 23.9 |
Staff costs comprise the following | |||
Wages and salaries | 36.4 | 32.3 | 22.4 |
Share-based compensation | 1.9 | 2 | 0 |
Pension costs | 3.1 | 3.6 | 1.4 |
Other social security costs | 0.3 | 0.4 | 0.1 |
Other staff costs | 2.1 | 2.6 | 0 |
Total | $ 43.8 | $ 40.9 | $ 23.9 |
Average number of permanent employees | |||
Seafarers | Employees | 130.6 | 137 | 65 |
Land-based | Employees | 286.6 | 269.1 | 133 |
Total | Employees | 417.2 | 406.1 | 198 |
Operating expenses | |||
Total staff costs | |||
Staff costs | $ 9.2 | $ 9.9 | $ 9.7 |
Staff costs comprise the following | |||
Total | 9.2 | 9.9 | 9.7 |
Administrative expenses | |||
Total staff costs | |||
Staff costs | 34.6 | 31 | 14.2 |
Staff costs comprise the following | |||
Total | $ 34.6 | $ 31 | $ 14.2 |
STAFF COSTS (Details 1)
STAFF COSTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | ||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | $ 812 | $ 657 | $ 405 | ||
Cheam Directors Limited | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [2] | 0 | 0 | 3 | |
Christopher H. Boehringer | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | 290 | 237 | 88 | ||
Kari Millum Gardarnar | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3],[4],[5] | 0 | 0 | 31 | |
Rasmus Johannes Hoffmann | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3],[5] | 0 | 0 | 29 | |
Flemming Ipsen | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3] | 0 | 0 | 38 | |
Olivier Dubois | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3] | 0 | 0 | 17 | |
Alexander Green | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3] | 0 | 0 | 19 | |
Jon Syvertsen | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3] | 0 | 0 | 19 | |
David Weinstein | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | 174 | 131 | 48 | ||
Torben Janholt | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | 174 | 131 | 48 | ||
Goran Trapp | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | 174 | 158 | 58 | ||
Jeffery Stein | |||||
Non-Executive Board and Committee Remuneration, Short term | |||||
Total | [3],[5] | $ 0 | $ 0 | $ 7 | |
[1] | The 2015 figures represent amounts earned subsequent to the Restructuring on 13 July 2015. | ||||
[2] | Former member of the Board of Directors of Njord. Left the Board of Directors due to the reverse acquisition on 13 July 2015. | ||||
[3] | Former member of the Board of Directors of Former TORM A/S. Resigned on 25 August 2015. | ||||
[4] | Resigned as Board Observer as of 31 July 2017. | ||||
[5] | Took up position as Board Observer of TORM plc. |
STAFF COSTS (Details 2)
STAFF COSTS (Details 2) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016DKK (kr) | Dec. 31, 2015USD ($) | |||
Disclosure Of Employee Benefits [Line Items] | ||||||
Salary | $ 36,400 | $ 32,300 | $ 22,400 | |||
Annual performance bonus | 559 | kr 3,758,700 | ||||
Jacob Meldgaard | ||||||
Disclosure Of Employee Benefits [Line Items] | ||||||
Salary | [1] | 81 | 39 | |||
Taxable benefits | [1] | 0 | 0 | |||
Annual performance bonus | [1] | 0 | 0 | |||
Transaction bonus | [1] | 0 | 0 | |||
Total | [1] | 81 | 39 | |||
Jacob Meldgaard | TORM A/S | ||||||
Disclosure Of Employee Benefits [Line Items] | ||||||
Salary | [1] | 923 | 834 | [2] | 362 | |
Taxable benefits | [1] | 42 | 41 | [2] | 19 | |
Annual performance bonus | [1] | 580 | 559 | [2] | 144 | |
Transaction bonus | [1] | 0 | 0 | [2] | 345 | |
Total | [1] | $ 1,545 | $ 1,434 | [2] | $ 870 | |
[1] | Paid by legal entity as noted. | |||||
[2] | The 2016 figures have been restated in order to include the figure for the annual bonus for 2016 as this was finalised and subsequently paid in 2017. No value was shown in the 2016 annual report. The total annual performance bonus of the Executive Director of TORM plc for 2016. arising in the period 1 January 2016 to 31 December 2016 was DKK 3.758.700 (USD 559t). |
STAFF COSTS - Parentheticals (D
STAFF COSTS - Parentheticals (Details 2) - 12 months ended Dec. 31, 2016 $ in Thousands | USD ($) | DKK (kr) |
Disclosure Of Employee Benefits [Abstract] | ||
Annual performance bonus | $ 559 | kr 3,758,700 |
STAFF COSTS (Details 3)
STAFF COSTS (Details 3) - Long term incentive plan $ in Millions | Dec. 13, 2016kr / shares | Dec. 12, 2016kr / shares | Dec. 31, 2017USD ($)Share | Dec. 31, 2017kr / shares | [1] | Dec. 31, 2016Share | Dec. 31, 2015Share | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
RSU LTIP grant | 866,600 | 2,127,400 | 0 | |||||
Jacob Meldgaard | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
RSU LTIP grant | [1] | 1,276,273 | ||||||
Exercise price per share | kr / shares | kr 93.6 | kr 96.3 | kr 96.3 | |||||
RSU grant value assuming 100% vesting | $ | [1] | $ 3.4 | ||||||
[1] | LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 2 of 18 January 2016. Therefore there is no minimum or maximum for 2017. |
STAFF COSTS - Parentheticals 69
STAFF COSTS - Parentheticals (Details 3) - kr / shares | Dec. 13, 2016 | Dec. 12, 2016 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vesting percentage of RSU grant | 100.00% | |||
Long term incentive plan | Jacob Meldgaard | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price of RSU | kr 93.6 | kr 96.3 | kr 96.3 | [1] |
[1] | LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 2 of 18 January 2016. Therefore there is no minimum or maximum for 2017. |
STAFF COSTS (Details 4)
STAFF COSTS (Details 4) - Long term incentive plan - Share | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding 1 January | 1,999,800 | 0 | 0 |
Granted during the period | 866,600 | 2,127,400 | 0 |
Exercised during the period | 0 | 0 | 0 |
Expired during the period | (233,900) | 0 | 0 |
Forfeited during the period | (21,300) | (127,600) | 0 |
Outstanding 31 December | 2,611,200 | 1,999,800 | 0 |
Exercisable 31 December | 255,300 | 538,900 | 0 |
STAFF COSTS (Detail Textuals)
STAFF COSTS (Detail Textuals) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017Share | Dec. 31, 2017USD ($)Shareseafarer | Dec. 31, 2017Sharekr / shares | Dec. 31, 2016USD ($)Shareseafarer | Dec. 31, 2015USD ($)Shareseafarer | Dec. 31, 2014Share | |
Disclosure Of Employee Benefits [Line Items] | ||||||
Number of seafarers for which staff costs included in operating expenses | seafarer | 131 | 137 | 65 | |||
Vesting period of RSUs granted | 3 years | |||||
Vesting percentage of RSU grant | 100.00% | |||||
Long term incentive plan | ||||||
Disclosure Of Employee Benefits [Line Items] | ||||||
Number of RSUs granted | 866,600 | 2,127,400 | 0 | |||
Number of RSUs outstanding as of date | 2,611,200 | 2,611,200 | 1,999,800 | 0 | 0 | |
Key management personnel of entity or parent | ||||||
Disclosure Of Employee Benefits [Line Items] | ||||||
Agreegate compensation paid | $ | $ 1,625,425 | $ 1,735,563 | $ 2,944,715 | |||
Agrergate compensation paid for pensions | $ | $ 112,236 | $ 93,163 | $ 180,354 | |||
Chief executive officer | Long term incentive plan | ||||||
Disclosure Of Employee Benefits [Line Items] | ||||||
Vesting period of RSUs granted | 5 years | 5 years | ||||
Installment of RSUs vesting at each anniversary date | 5 years | |||||
Number Of Shares Vested At First Anniversary Other Equity Instruments | 255,345 | |||||
Number of RSUs granted | 1,276,725 | |||||
Vesting percentage of RSU grant | 100.00% | |||||
Number of RSUs outstanding as of date | 1,021,380 | 1,021,380 | ||||
Value of RSUs grant | $ | $ 3,400,000 | |||||
Market value of one TORM A-share (the closing price on 15 January 2016) | kr / shares | kr 84.05 |
STAFF COSTS (Detail Textuals 1)
STAFF COSTS (Detail Textuals 1) - kr / shares | 1 Months Ended | 12 Months Ended |
Jan. 31, 2017 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period of RSUs | 3 years | |
Exercise period of RSUs | 6 months | |
Long term incentive plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price of RSUs | kr 93.5 | |
Long term incentive plan | Chief executive officer | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period of RSUs | 5 years | 5 years |
Exercise period of RSUs | 12 months |
REMUNERATION TO AUDITORS APPO73
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Audit fees | |||
Fees payable to the Company's auditor for the audit of the Company's annual accounts | $ 0.4 | $ 0.4 | $ 0.2 |
Audit of the Company's subsidiaries pursuant to legislation | 0.2 | 0.1 | 0.1 |
Total audit fees | 0.6 | 0.5 | 0.3 |
Non-audit fees | |||
Audit related services | 0.4 | 0.6 | 1.1 |
Tax services | 0 | 0.3 | 0.5 |
Other services | 0 | 0.1 | 0.2 |
Total non-audit fees | 0.4 | 1 | 1.8 |
Total | $ 1 | $ 1.5 | $ 2.1 |
REMUNERATION TO AUDITORS APPO74
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Auditor's remuneration [abstract] | |||
Auditor's remuneration | $ 1 | $ 1.5 | $ 2.1 |
Total audit fees | 0.6 | 0.5 | 0.3 |
Auditor's remuneration for audit services | 0.4 | 0.6 | 1.1 |
Auditor's remuneration for tax services | 0 | 0.3 | 0.5 |
Auditor's remuneration for other services | $ 0 | $ 0.1 | $ 0.2 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill at begining of period | $ 0 | $ 11.4 | |
Goodwill at end of period | 0 | 0 | $ 11.4 |
Gross | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill at begining of period | 11.4 | 11.4 | 0 |
Additions during the year | 0 | 0 | 11.4 |
Goodwill at end of period | 11.4 | 11.4 | 11.4 |
Accumulated impairment | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill at begining of period | (11.4) | 0 | 0 |
Impairment losses for the year | 0 | (11.4) | 0 |
Goodwill at end of period | $ (11.4) | $ (11.4) | $ 0 |
TANGIBLE FIXED ASSETS (Details)
TANGIBLE FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | $ 1,389,650 | ||
Balance | 1,384,795 | $ 1,389,650 | |
Prepayments On Vessels [Abstract] | |||
Balance | 44,036 | 72,600 | |
Balance | 88,378 | 44,036 | $ 72,600 |
Vessels and capitalized dry docking | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 1,343,800 | 1,492,000 | |
Balance | 1,294,500 | 1,343,800 | 1,492,000 |
Prepayments On Vessels [Abstract] | |||
Balance | 44,100 | 72,600 | 34,700 |
Additions | 44,300 | 76,900 | 142,500 |
Transferred to/from other items | (105,400) | (104,600) | |
Balance | 88,400 | 44,100 | 72,600 |
Vessels and capitalized dry docking | Property, plant and equipment subject to operating leases | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 12,400 | 13,100 | |
Balance | 28,600 | 12,400 | 13,100 |
Vessels and capitalized dry docking | Gross | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 1,697,400 | 1,567,500 | 530,100 |
Additions | 103,100 | 40,800 | 112,000 |
Additions from business combinations | 857,400 | ||
Disposals | (14,300) | (16,300) | (18,600) |
Transferred to/from other items | 105,400 | 104,600 | |
Transferred to assets held-for-sale | (59,600) | (18,000) | |
Balance | 1,726,600 | 1,697,400 | 1,567,500 |
Vessels and capitalized dry docking | Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 180,000 | 75,500 | 27,900 |
Disposals | (14,300) | (15,900) | (18,600) |
Depreciation for the year | 113,600 | 120,400 | 66,500 |
Transferred to assets held-for-sale | (20,800) | (300) | |
Balance | 258,500 | 180,000 | 75,500 |
Vessels and capitalized dry docking | Accumulated impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 173,600 | 0 | 0 |
Impairment losses on tangible fixed assets | 173,600 | 0 | |
Balance | 173,600 | 173,600 | 0 |
Other property, plant and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 1,800 | 2,500 | |
Balance | 1,900 | 1,800 | 2,500 |
Other property, plant and equipment | Property, plant and equipment subject to operating leases | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 0 | 0 | |
Balance | 0 | 0 | 0 |
Other property, plant and equipment | Gross | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 2,700 | 3,200 | |
Additions | 1,000 | 1,100 | 900 |
Additions from business combinations | 2,500 | ||
Disposals | (100) | (1,600) | (200) |
Balance | 3,600 | 2,700 | 3,200 |
Other property, plant and equipment | Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 900 | 700 | |
Disposals | (100) | (1,600) | (200) |
Depreciation for the year | 900 | 1,800 | 900 |
Balance | $ 1,700 | $ 900 | $ 700 |
TANGIBLE FIXED ASSETS (Detail T
TANGIBLE FIXED ASSETS (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense relates to administrative expense | $ 114,451 | $ 122,215 | $ 67,327 |
Vessels and capitalized dry docking | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Capitalized dry-docking costs | 68,100 | 80,400 | 81,700 |
Other property, plant and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense relates to administrative expense | $ 900 | $ 1,800 | $ 900 |
IMPAIRMENT TESTING (Details tex
IMPAIRMENT TESTING (Details textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [abstract] | |||
Projected cash flows calculation period | 10 years | ||
Impairment charge arising in current year | $ 20 | ||
Discount rate used in calculation based on a Weighted Average Cost of Capital (WACC) | 8.70% | 8.80% | 8.30% |
IMPAIRMENT TESTING (Details t79
IMPAIRMENT TESTING (Details textuals 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Historical average spot freight rates | 10-year | ||
LR2 | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Amended historical average spot rate used in per day freight rate calculation | $ 17,216 | $ 20,176 | $ 21,975 |
LR1 | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Amended historical average spot rate used in per day freight rate calculation | 16,445 | 17,124 | 18,900 |
MR | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Amended historical average spot rate used in per day freight rate calculation | 15,794 | 15,118 | 16,948 |
Handysize | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Amended historical average spot rate used in per day freight rate calculation | $ 14,416 | $ 15,203 | $ 17,868 |
IMPAIRMENT TESTING (Details t80
IMPAIRMENT TESTING (Details textuals 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [abstract] | ||
Adjustment of operating expenses for inflation, percentage | 3.00% | 2.00% |
Adjustment of administrative expenses for inflation, percentage | 2.00% | 2.00% |
Expected to generate normal income from delivery from shipyard | 25 years | |
Average remaining life of tanker | 14 years | |
Decrease/increase in tanker per day freight rates | $ 1,000 | |
Decrease/increase in value in use of freight rates | $ 241,000,000 | |
Increase/decrease in WACC percentage | 1.00% | |
Decrease/increase in value in use of WACC | USD 100-112m | |
Increase/decrease in operating expenses percentage | 10.00% | |
Decrease/increase in value in use of operating expenses | $ 187,000,000 | |
Reversal of impairment | 159,000,000 | |
Market value based on broker values of vessels | 1,672,000,000 | |
Difference of Market value and Carrying amount | $ 20,000,000 |
FINANCIAL ITEMS (Details)
FINANCIAL ITEMS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financial income | ||||
Interest income from cash and cash equivalents | [1] | $ 1,600 | $ 200 | $ 300 |
Exchange rate adjustments, including gain from forward exchange rate contracts | 2,700 | 2,800 | 700 | |
Total | 4,255 | 2,814 | 992 | |
Financial expenses | ||||
Interest expenses on mortgage and bank debt | [1] | 33,300 | 29,700 | 15,000 |
Exchange rate adjustments, including loss from forward exchange rate contracts | 3,200 | 2,600 | 600 | |
Other financial expenses | 4,100 | 5,200 | 1,300 | |
Total | 40,601 | 37,333 | 16,926 | |
Total financial items | $ (36,300) | $ (34,500) | $ (15,900) | |
[1] | Interest for financial assets and liabilities not at fair value through profit and loss. |
FREIGHT RECEIVABLES (Details)
FREIGHT RECEIVABLES (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | $ 0 | $ 500,000 | $ 200,000 | |
Gross | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 72,600 | 65,100 | 84,800 | |
Provision for impairment of freight receivables | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 1,300,000 | 2,600,000 | 1,700,000 | $ 0 |
Financial assets neither past due nor impaired | Gross | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 25,500,000 | 28,700,000 | 40,300,000 | |
Financial assets past due but not impaired | Due before 30 days | Gross | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 26,000,000 | 13,000,000 | 22,800,000 | |
Financial assets past due but not impaired | Due between 30 and 180 days | Gross | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 18,400,000 | 18,700,000 | 16,400,000 | |
Financial Assets Past Due And Impaired | Due after 180 days | Gross | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | $ 2,700,000 | $ 4,700,000 | $ 5,300,000 |
FREIGHT RECEIVABLES (Details 1)
FREIGHT RECEIVABLES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Balance at begining of period | $ 0.5 | $ 0.2 | |
Balance at end of period | 0 | 0.5 | $ 0.2 |
Accumulated impairment | |||
Disclosure of financial assets [line items] | |||
Balance at begining of period | 2.6 | 1.7 | 0 |
Addition from business combinations | 0 | 0 | 1.9 |
Provisions for the year | 0.6 | 1.9 | 0.5 |
Provisions reversed during the year | (1.9) | (1) | (0.7) |
Balance at end of period | $ 1.3 | $ 2.6 | $ 1.7 |
FREIGHT RECEIVABLES (Detail Tex
FREIGHT RECEIVABLES (Detail Textual) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Receivables individually determined to be impaired | $ 0 | $ 0.5 | $ 0.2 |
Financial assets individually assessed for credit losses | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Receivables individually determined to be impaired | $ 0 | $ 0.6 | $ 1.9 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables [abstract] | ||
Partners and commercial managements | $ 0 | $ 500 |
Derivative financial instruments | 7,600 | 3,300 |
Tax receivables | 1,300 | 1,100 |
Other | 2,900 | 3,200 |
Other receivables (Note 11) | $ 11,787 | $ 8,134 |
TAX (Details)
TAX (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax for the year | |||
Current tax for the year | $ 1,000 | $ 1,200 | $ 1,300 |
Adjustments related to previous years | (100) | (300) | (200) |
Adjustment of deferred tax asset | (100) | (100) | (100) |
Total | $ 777 | $ 760 | $ 1,041 |
TAX (Details 1)
TAX (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax liability | |||
Balance at 1 January | $ 45 | $ 45.1 | $ 0 |
Addition from business combination | 0 | 0 | 45.2 |
Deferred tax for the year | (0.1) | (0.1) | (0.1) |
Balance as of 31 December | $ 44.9 | $ 45 | $ 45.1 |
TAX (Details textuals)
TAX (Details textuals) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major components of tax expense (income) [abstract] | |||
Effective tax rate | 24.40% | (0.60%) | 0.80% |
COMMON SHARES & TREASURY SHAR89
COMMON SHARES & TREASURY SHARES (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 62,298,848 | 62,298,848 | 63,836,251 |
Common class A shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 62,298,846 | 62,298,846 | 63,836,249 |
Common class B shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 1 | 1 | 1 |
Common class C shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 1 | 1 | 1 |
COMMON SHARES & TREASURY SHAR90
COMMON SHARES & TREASURY SHARES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Shares & Treasury Shares [Abstract] | |||
Balance as of 1 January | 312.9 | 15.3 | 0 |
Additions | 0 | 312.9 | 15.3 |
Cancellations | 0 | (15.3) | 0 |
Disposals | 0 | 0 | 0 |
Balance as of 31 December | 312.9 | 312.9 | 15.3 |
Balance as of 1 January | $ 0 | $ 0 | $ 0 |
Additions | 0 | 0 | 0 |
Cancellations | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Balance as of 31 December | $ 0 | $ 0 | $ 0 |
Balance as of 1 January | 0.50% | 0.20% | 0.00% |
Additions | 0.00% | 0.50% | 0.20% |
Cancellations | (0.00%) | (0.20%) | (0.00%) |
Disposals | 0.00% | 0.00% | 0.00% |
Balance as of 31 December | 0.50% | 0.50% | 0.20% |
COMMON SHARES & TREASURY SHAR91
COMMON SHARES & TREASURY SHARES (Detail Textuals) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)ratioBoard_MemberVoteshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | |
Common Shares & Treasury Shares [Abstract] | ||||
Share capital | $ 623 | $ 623 | $ 400 | |
Number of votes in share capital | Vote | 350,000,000 | |||
Maximum portion of agreegate issued and outstanding shares for holding rights as per written notification | ratio | 0.33 | |||
Number of days elapsed from written notice of Board of Directors receipt | 5 days | |||
Minimum number of board members confirming written notice | Board_Member | 0.66 | |||
Total consideration for the treasury shares | $ 2,887 | $ 2,887 | $ 200 | |
Number of treasury shares held | shares | 312.9 | 312.9 | 15.3 | 0 |
Nominal value of treasury shares held | $ 0 | $ 0 | $ 0 | $ 0 |
Market value of treasury shares held | $ 2,700 | $ 2,800 | $ 200 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure For Other Liabilities [Abstract] | ||
Partners and commercial managements | $ 1,400 | $ 2,000 |
Accrued operating expenses | 8,500 | 5,200 |
Accrued interest | 5,200 | 5,800 |
Wages and social expenses | 16,300 | 14,600 |
Derivative financial instruments | 0 | 4,800 |
Payables to joint ventures | 100 | 100 |
Other | 2,300 | 500 |
Balance as of 31 December | $ 33,822 | $ 33,055 |
EFFECTIVE INTEREST RATE, OUTS93
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Disclosure of detailed information about borrowings [line items] | ||||
Effective interest rate | [1] | 5.10% | 4.60% | 4.30% |
Carrying value | $ 719,100 | $ 671,600 | $ 767,200 | |
Hereof non-current | 629,198 | 593,912 | 717,500 | |
Hereof current | [2] | $ 86,000 | $ 75,900 | $ 49,700 |
DSF Facility 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maturity | 2,021 | 2,019 | 2,019 | |
Effective interest rate | [1] | 5.40% | 4.60% | 41.00% |
Carrying value | $ 74,300 | $ 109,400 | $ 125,700 | |
Hereof non-current | $ 74,300 | $ 109,400 | $ 125,700 | |
TFA Facility 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maturity | 2,021 | 2,021 | 2,021 | |
Effective interest rate | [1] | 5.00% | 4.60% | 4.30% |
Carrying value | $ 400,800 | $ 470,000 | $ 548,900 | |
Hereof non-current | $ 400,800 | $ 470,000 | $ 548,900 | |
DSF Facility 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maturity | 2,021 | 2,021 | 2,021 | |
Effective interest rate | [1] | 5.00% | 4.60% | 44.00% |
Carrying value | $ 56,500 | $ 62,200 | $ 66,600 | |
Hereof non-current | $ 56,500 | $ 62,200 | $ 66,600 | |
DSF Facility 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maturity | 2,022 | 2,022 | 2,019 | |
Effective interest rate | [1] | 5.10% | 4.80% | 41.00% |
Carrying value | $ 26,800 | $ 30,000 | $ 26,000 | |
Hereof non-current | $ 26,800 | 30,000 | 26,000 | |
TFA Facility 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maturity | 2,022 | |||
Effective interest rate | [1] | 5.40% | ||
Carrying value | $ 115,000 | 0 | 0 | |
Hereof non-current | $ 115,000 | 0 | 0 | |
ING | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maturity | 2,024 | |||
Effective interest rate | [1] | 4.60% | ||
Carrying value | $ 45,800 | 0 | 0 | |
Hereof non-current | $ 45,800 | $ 0 | $ 0 | |
Floating interest rate | DSF Facility 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fixed/floating | Floating | |||
Floating interest rate | TFA Facility 1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fixed/floating | Floating | |||
Floating interest rate | DSF Facility 3 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fixed/floating | Floating | |||
Floating interest rate | DSF Facility 4 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fixed/floating | Floating | |||
Floating interest rate | TFA Facility 2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fixed/floating | Floating | |||
Floating interest rate | ING | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fixed/floating | Floating | |||
[1] | Effective interest rate includes deferred and amortized bank fees. | |||
[2] | The carrying value of the Group's mortgage debt and bank loans is, due to their short-term nature of fixing of interest, approximate to fair value, and excludes amortized bank fees. |
EFFECTIVE INTEREST RATE, OUTS94
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Detail Textuals) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)BankTankersNewbuildings | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 31, 2015USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Working capital facility | $ 271 | $ 190 | $ 75 | |
Funding commitment | 307 | $ 149 | $ 224 | |
Danish ship finance | Announcement of Event Occuring in 2019 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Funding commitment | $ 81 | |||
Number of year facility to finance newbuilding | 7 years | |||
Danish ship finance | Announcement of Event Occuring in 2019 | MR | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Number of tanker | Tankers | 4 | |||
Number of newbuilding | Newbuildings | 4 | |||
Danish ship finance | Announcement of Event Occuring in 2019 | LR1 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Number of tanker | Tankers | 2 | |||
China export import Bank | Announcement of Event Occuring in 2018 | LR2 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Number of tanker | Tankers | 4 | |||
Funding commitment | $ 115 | |||
Number of year facility to finance newbuilding | 12 years | |||
Working capital facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Working capital facility | $ 75 | $ 75 | ||
Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Number of bank | Bank | 4 |
COLLATERAL SECURITY FOR MORTG95
COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS (Detail Textual) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Collateral [Abstract] | |||
Carrying amount for vessels as collateral security | $ 1,259 | $ 1,115 | $ 1,329 |
GUARANTEE COMMITMENTS AND CON96
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantee Commitments And Contingent Liabilities [Abstract] | |||
Guarantee commitments of the Group to Danish Shipowners' Association | $ 0.1 | $ 0.1 | $ 0.1 |
CONTRACTUAL OBLIGATIONS (Detail
CONTRACTUAL OBLIGATIONS (Details) $ in Millions | Dec. 31, 2017USD ($) | |
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | $ 725.8 | [1] |
Interest payments related to scheduled interest fixing | 56.2 | |
Estimated variable interest payments | 51.4 | [2] |
Finance lease liabilities | 28.2 | |
Interest element regarding finance lease | 7.7 | |
Newbuilding installments | 306.9 | [3] |
Chartered-in vessels (operating lease) | 2.9 | [4] |
Other operating leases | 5.2 | [5] |
Trade payables and other obligations | 51.5 | |
Total | 1,235.8 | |
2,018 | ||
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | 92.7 | [1] |
Interest payments related to scheduled interest fixing | 20.4 | |
Estimated variable interest payments | 11.9 | [2] |
Finance lease liabilities | 2.9 | |
Interest element regarding finance lease | 2.3 | |
Newbuilding installments | 144.2 | [3] |
Chartered-in vessels (operating lease) | 2.9 | [4] |
Other operating leases | 2.5 | [5] |
Trade payables and other obligations | 51.5 | |
Total | 331.3 | |
2,019 | ||
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | 86.7 | [1] |
Interest payments related to scheduled interest fixing | 14.4 | |
Estimated variable interest payments | 13.6 | [2] |
Finance lease liabilities | 3.2 | |
Interest element regarding finance lease | 2 | |
Newbuilding installments | 162.7 | [3] |
Chartered-in vessels (operating lease) | 0 | [4] |
Other operating leases | 1.8 | [5] |
Trade payables and other obligations | 0 | |
Total | 284.4 | |
2,020 | ||
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | 82.2 | [1] |
Interest payments related to scheduled interest fixing | 12.1 | |
Estimated variable interest payments | 12.2 | [2] |
Finance lease liabilities | 3.4 | |
Interest element regarding finance lease | 1.7 | |
Newbuilding installments | 0 | [3] |
Chartered-in vessels (operating lease) | 0 | [4] |
Other operating leases | 0.7 | [5] |
Trade payables and other obligations | 0 | |
Total | 112.3 | |
2,021 | ||
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | 346.7 | [1] |
Interest payments related to scheduled interest fixing | 8.9 | |
Estimated variable interest payments | 9.1 | [2] |
Finance lease liabilities | 3.7 | |
Interest element regarding finance lease | 1.4 | |
Newbuilding installments | 0 | [3] |
Chartered-in vessels (operating lease) | 0 | [4] |
Other operating leases | 0.2 | [5] |
Trade payables and other obligations | 0 | |
Total | 370 | |
2,022 | ||
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | 89.2 | [1] |
Interest payments related to scheduled interest fixing | 0.4 | |
Estimated variable interest payments | 2.6 | [2] |
Finance lease liabilities | 15 | |
Interest element regarding finance lease | 0.3 | |
Newbuilding installments | 0 | [3] |
Chartered-in vessels (operating lease) | 0 | [4] |
Other operating leases | 0 | [5] |
Trade payables and other obligations | 0 | |
Total | 107.5 | |
Thereafter | ||
Contractual Obligations [Line Items] | ||
Mortgage debt and bank loans | 28.3 | [1] |
Interest payments related to scheduled interest fixing | 0 | |
Estimated variable interest payments | 2 | [2] |
Finance lease liabilities | 0 | |
Interest element regarding finance lease | 0 | |
Newbuilding installments | 0 | [3] |
Chartered-in vessels (operating lease) | 0 | [4] |
Other operating leases | 0 | [5] |
Trade payables and other obligations | 0 | |
Total | $ 30.3 | |
[1] | The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 4.8m (2016: USD 2.0m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 3.5m (2016: USD 1.3m). | |
[2] | Variable interest payments are estimated based on the forward rates for each interest period. | |
[3] | As of 31 December 2017, TORM had ten contracted newbuildings (2016: four) to be delivered during 2018-2019. | |
[4] | Leases have been entered into with a mutually non-cancellable lease period of up to eight years. Certain leases include a profit-sharing element implying that the actual charter hire may be higher. The average period until redelivery of the vessels is 0.5 years (2016: 0.9 years). The leasing expense for 2017 amounts to USD 8.5m (2016: USD 21.5m, 2015: USD 12.0m) and is recognized under "Charter hire". | |
[5] | Other operating leases primarily consist of contracts regarding office spaces, cars and apartments as well as IT-related contracts. The leasing expense for 2017 amounts to USD 2.3m (2016: USD 2.2m) and is recognized under "Administrative expenses". |
CONTRACTUAL OBLIGATIONS (Deta98
CONTRACTUAL OBLIGATIONS (Details 1) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Opening balance as of 1 January 2017 | $ 685.2 |
Cash - Borrowings | 205.6 |
Cash - Repayments | (143.6) |
Non-Cash - Changes in fair value | 0.7 |
Non-Cash - Other changes | 1.2 |
End balance as of 31 December 2017 | 749.1 |
Mortgage debt | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Opening balance as of 1 January 2017 | 669.6 |
Cash - Borrowings | 175.4 |
Cash - Repayments | (125.5) |
Non-Cash - Changes in fair value | 0.7 |
Non-Cash - Other changes | 0.7 |
End balance as of 31 December 2017 | 720.9 |
Financial lease | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Opening balance as of 1 January 2017 | 13.6 |
Cash - Borrowings | 30.2 |
Cash - Repayments | (16.7) |
Non-Cash - Changes in fair value | 0.6 |
Non-Cash - Other changes | 0.5 |
End balance as of 31 December 2017 | 28.2 |
Swaps, fair value hedging | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Opening balance as of 1 January 2017 | 2 |
Cash - Borrowings | 0 |
Cash - Repayments | (1.4) |
Non-Cash - Changes in fair value | (0.6) |
Non-Cash - Other changes | 0 |
End balance as of 31 December 2017 | $ 0 |
CONTRACTUAL OBLIGATIONS (Deta99
CONTRACTUAL OBLIGATIONS (Details 2) $ in Millions | Dec. 31, 2017USD ($) | |
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | $ 50.2 | [1] |
2,018 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 45.5 | |
2,019 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 4.7 | |
2,020 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | |
2,021 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | |
2,022 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | |
Thereafter | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | |
Vessel | 2018 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 45.5 | [1] |
Vessel | 2019 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 4.7 | [1] |
Vessel | 2020 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | [1] |
Vessel | 2021 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | [1] |
Vessel | 2022 | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | 0 | [1] |
Vessel | Thereafter | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Charter hire income for vessels | $ 0 | [1] |
[1] | Charter hire income for vessels on time charter and bareboat charter is recognized under "Revenue". The average period until redelivery of the vessels is 1.1 year (2016: 2.1 years). |
CONTRACTUAL OBLIGATIONS (Det100
CONTRACTUAL OBLIGATIONS (Detail Textuals) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Newbuilding | Dec. 31, 2016USD ($)Newbuilding | Dec. 31, 2015USD ($) | |
Disclosure Of Contractual Commitments [Abstract] | |||
Direct issuance costs for borrowings | $ 4.8 | $ 2 | |
Borrowing costs capitalized | $ 3.5 | $ 1.3 | |
Expected number of newbuildings to be delivered during 2018-2019 | Newbuilding | 10 | 4 | |
Average period of redelivery of vessels | 5 years | 9 years | |
Maximum mutually non-cancellable operating lease period | 8 years | ||
Lease expense for Charter hire | $ 8.5 | $ 21.5 | $ 12 |
Other operating lease expense | $ 2.3 | $ 2.2 | |
Average period until redelivery of the vessels | 1 year 1 month 6 days | 2 years 1 month 6 days |
DERIVATIVE FINANCIAL INSTRUM101
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | $ 7.5 | $ (1.5) |
Forward freight agreements | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | (0.2) | (0.1) |
Bunker swaps | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | 0.8 | 0.8 |
Forward exchange contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | 1.8 | (4.6) |
Interest rate swaps | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | $ 5.1 | $ 2.4 |
DERIVATIVE FINANCIAL INSTRUM102
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial instruments designated as hedging instruments, at fair value | $ 7.5 | $ (1.5) |
Other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial instruments designated as hedging instruments, at fair value | 7.3 | 3.3 |
Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial instruments designated as hedging instruments, at fair value | $ 0.2 | $ (4.8) |
DERIVATIVE FINANCIAL INSTRUM103
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | |
Hedging reserves | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | $ 6.9 | $ (1) | $ 1.4 | |
Revenue | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0.5 | (0.1) | 0.6 | |
Port expenses, bunkers and commissions | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 1.2 | 0 | (0.9) | |
Financial items | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | (3.4) | (2.8) | 0 | |
Forward freight agreements | Hedging reserves | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | (0.3) | (0.2) | 0 | |
Forward freight agreements | Revenue | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0.5 | (0.1) | 0.6 | |
Forward freight agreements | Port expenses, bunkers and commissions | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Forward freight agreements | Financial items | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Bunker swaps | Hedging reserves | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | 0 | 1 | (0.2) | |
Bunker swaps | Revenue | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Bunker swaps | Port expenses, bunkers and commissions | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 1.2 | 0 | $ (0.9) | |
Bunker swaps | Financial items | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Forward exchange contracts | Hedging reserves | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | 4.4 | (3.4) | 0.8 | |
Forward exchange contracts | Revenue | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Forward exchange contracts | Port expenses, bunkers and commissions | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Forward exchange contracts | Financial items | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | (1.4) | 0.1 | 0 | |
Interest rate swaps | Hedging reserves | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | 2.7 | 1.6 | 0.8 | |
Interest rate swaps | Revenue | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Interest rate swaps | Port expenses, bunkers and commissions | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | 0 | 0 | 0 | |
Interest rate swaps | Financial items | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gain (loss) on derivative financial instruments, recognised in profit or loss | $ (2) | $ (2.9) | $ 0 |
DERIVATIVE FINANCIAL INSTRUM104
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textuals) kr in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017DKK (kr) | Dec. 31, 2016USD ($) | Dec. 31, 2016DKK (kr) | Dec. 31, 2015USD ($) | Dec. 31, 2015DKK (kr) |
Disclosure of detailed information about financial instruments [line items] | ||||||
Fair value of derivatives | $ 7.5 | $ (1.5) | ||||
Forward freight agreements | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Fair value of derivatives | (0.2) | (0.1) | ||||
Bunker swaps | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Fair value of derivatives net of a previously fixed hedge | 0.6 | 0.8 | $ (0.2) | |||
Fair value of derivatives | 0.8 | 0.8 | ||||
Forward exchange contracts | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Fair value of derivatives | 1.8 | (4.6) | ||||
Notional amount | kr | kr 257 | kr 336.4 | kr 235.1 | |||
Interest rate swaps | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Fair value of derivatives | 5.1 | 2.4 | ||||
Notional amount | $ 406.4 | $ 373.8 | $ 382.3 |
RISKS ASSOCIATED WITH TORM'S105
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Decrease in freight rates of USD/day 1,000: | |||
Changes in profit before tax | $ 24.1 | $ 25 | $ 26.7 |
Changes in equity | $ 24.1 | $ 25 | $ 26.7 |
RISKS ASSOCIATED WITH TORM'S106
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase in the bunker prices of 10% per ton: | |||
Changes in profit before tax | $ (18.3) | $ (15.6) | $ (12.8) |
Changes in equity | $ (18.3) | $ (15.6) | $ (12.8) |
RISKS ASSOCIATED WITH TORM'S107
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effect of a 10% increase of DKK and EUR: | |||
Changes in profit before tax | $ (2.5) | $ (1.7) | $ (2.8) |
Changes in equity | $ (2.5) | $ (1.7) | $ (2.8) |
RISKS ASSOCIATED WITH TORM'S108
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effect of a 1%-point increase in interest rates: | |||
Changes in profit before tax | $ (3.2) | $ (2.5) | $ (3.3) |
Changes in equity | $ 3.6 | $ 6.8 | $ 9.5 |
RISKS ASSOCIATED WITH TORM'S109
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Detail Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)metric_tonsCompanyClub | Dec. 31, 2016USD ($)metric_tons | Dec. 31, 2015USD ($)metric_tons | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of freight earnings derived from tankers secured by agreements | 12.00% | 10.00% | 5.00% |
Percentage of physical time charter contracts accounted for overall hedging | 66.00% | 83.00% | 95.00% |
Percentage of coverage | 13.00% | 12.00% | 8.00% |
Number of Protection and Indemnity club | Club | 2 | ||
Bottom of range | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Number of companies to diversify risk | Company | 14 | ||
Long Position | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Notional contract value of derivative | $ | $ 12 | $ 3 | $ 4 |
Notional contract volume | metric_tons | 530,000 | 190,000 | 142,000 |
Short Position | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Notional contract value of derivative | $ | $ 44 | $ 12 | $ 6 |
Notional contract volume | metric_tons | 1,754,000 | 781,000 | 215,000 |
Cargo contracts and time charte ragreements | Bottom of range | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 6 months | ||
Cargo contracts and time charte ragreements | Top of range | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 36 months | ||
Number of companies to diversify risk | Company | 16 | ||
Forward freight agreements | Bottom of range | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 0 months | ||
Forward freight agreements | Top of range | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 24 months |
RISKS ASSOCIATED WITH TORM'S110
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Detail Textual 1) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)TankerBanks | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Carrying value of fleet | $ 1,294 | $ 1,344 | |
Market value of fleet (excluding undelivered newbuildings) | $ 1,260 | $ 1,260 | |
Number of vessels on order for delivery in 2018-2019 | Tanker | 10 | ||
Threshold percentage of total voyage costs as cost of fuel oil consumed by vessels | 55.00% | 50.00% | 57.00% |
Percentage of bunker consumption hedged | 3.30% | 0.90% | 0.20% |
Percentage of bunker requirements for hedging instruments | 2.10% | 1.60% | 0.70% |
Number of banks having loan portfolio | Banks | 9 | ||
Aggregate insured value of hull and machinery and interest for TORM's owned vessels | $ 1,400 | $ 1,600 | $ 2,000 |
Percentage of frieght revenues | 8.20% | 12.60% | 12.60% |
Average percentage of demurrage | 97.00% | 96.80% | 96.00% |
Percentage of total freight revenues as demurrage | 16.80% | 15.00% | 17.70% |
Percentage of forward freight agreements (FFAs) and fuel swaps | 65.00% | 93.00% | 100.00% |
Percentage of administrative expenses denominated in currencies other than USD | 98.00% | 99.00% | 98.00% |
Percentage of operating expenses denominated in currencies other than USD | 25.00% | 27.00% | 26.00% |
Percentage of administrative and operating expenses denominated in currencies in DKK and EUR | 62.00% | 74.00% | 55.00% |
Percentage of exposure to interest rate risk | 63.00% | 68.00% | 65.00% |
Floating rate loans description of variable rate basis | 3 or 6 months Libor | ||
Increased interest-bearing debt | $ 719.1 | $ 671.6 | $ 767.2 |
Liquidity reserve in cash | 134 | ||
Undrawn credit facilities | 271 | 190 | 75 |
Revolving Credit Facilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Undrawn credit facilities | 75 | ||
Interest bearing debt | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Increase (decrease) in interest-bearing debt | 47 | (95) | 639 |
Increased interest-bearing debt | $ 719 | $ 672 | $ 767 |
Handysize Tanker | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Number of tanker sold | Tanker | 3 | ||
MR Tanker | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Number of tanker sold | Tanker | 1 | ||
Number of tanker purchased | Tanker | 2 | ||
Number of additional tanker purchased | Tanker | 3 | ||
LR1 Tanker | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Number of additional tanker purchased | Tanker | 1 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | $ 7.6 | $ 3.3 | |
Financial assets at amortised cost | 209.7 | 143.3 | |
Financial assets | 217.3 | 146.6 | |
Financial liabilities, at fair value | 0.2 | 4.8 | |
Financial liabilities at amortised cost | 809.3 | 740 | |
Financial liabilities | 809.1 | 744.8 | |
Mortgage debt and bank loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [1] | 0 | 0 |
Financial liabilities at amortised cost | [1] | 720.9 | 669.6 |
Financial liabilities | [1] | 720.9 | 669.6 |
Financial lease | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Financial liabilities at amortised cost | [2] | 28.2 | 13.6 |
Financial liabilities | [2] | 28.2 | 13.6 |
Trade payables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Financial liabilities at amortised cost | [2] | 26.2 | 28.5 |
Financial liabilities | [2] | 26.2 | 28.5 |
Other liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | (0.2) | 4.8 |
Financial liabilities at amortised cost | [2] | 34 | 28.3 |
Financial liabilities | [2] | 33.8 | 33.1 |
Freight receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Financial assets at amortised cost | [2] | 71.3 | 62.5 |
Financial assets | [2] | 71.3 | 62.5 |
Other receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 7.6 | 3.3 | |
Financial assets at amortised cost | 4.2 | 4.8 | |
Financial assets | 11.8 | 8.1 | |
Cash and cash equivalents | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Financial assets at amortised cost | [2] | 134.2 | 76 |
Financial assets | [2] | 134.2 | 76 |
Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 0 | 0 | |
Financial liabilities, at fair value | 0 | 0 | |
Level 1 | Mortgage debt and bank loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [1] | 0 | 0 |
Level 1 | Financial lease | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 1 | Trade payables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 1 | Other liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 1 | Freight receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Level 1 | Other receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 0 | 0 | |
Level 1 | Cash and cash equivalents | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Level 2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 7.6 | 3.3 | |
Financial liabilities, at fair value | (0.2) | 4.8 | |
Level 2 | Mortgage debt and bank loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [1] | 0 | 0 |
Level 2 | Financial lease | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 2 | Trade payables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 2 | Other liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | (0.2) | 4.8 |
Level 2 | Freight receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Level 2 | Other receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 7.6 | 3.3 | |
Level 2 | Cash and cash equivalents | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 0 | 0 | |
Financial liabilities, at fair value | 0 | 0 | |
Level 3 | Mortgage debt and bank loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [1] | 0 | 0 |
Level 3 | Financial lease | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 3 | Trade payables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 3 | Other liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, at fair value | [2] | 0 | 0 |
Level 3 | Freight receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | 0 | 0 |
Level 3 | Other receivables | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | 0 | 0 | |
Level 3 | Cash and cash equivalents | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, at fair value | [2] | $ 0 | $ 0 |
[1] | See note 15. | ||
[2] | Due to the short maturity, the carrying value is considered to be an appropriate expression of the fair value. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |
Name of ultimate parent of group | Oaktree Capital Group, LLC, |
NON-CURRENT ASSETS SOLD DURI113
NON-CURRENT ASSETS SOLD DURING THE YEAR (Details) - Non-current assets held for sale $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Vessel | Dec. 31, 2015USD ($)Vessel | |
Disclosure Of Information About Non Current Assets Held For Sale [Line Items] | ||
Number of vessels sold | 8 | |
Number of vessels delivered to new owner | 4 | |
Number of vessels expected to be delivered in Q1 | 1 | |
Number of remaining vessels sold | 3 | 2 |
Profit from sale of vessels | $ | $ 2.8 | |
Impairment on sold or held-for-sale vessels | $ | $ 3.6 | |
Amount in connection with wind-down of bulk activities | $ | $ 18 |
CASH FLOWS (Details)
CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reversal of other non-cash movements: | |||
Amortization of acquired assets and liabilities | $ (100) | $ (700) | |
Exchange rate adjustments | $ 1,800 | (2,400) | (100) |
Share-based payments | 1,900 | 2,000 | |
Equity transactions expensed in relation to the Corporate Reorganization | (6,400) | ||
Other adjustments | (200) | (100) | |
Total | 3,700 | (7,100) | (900) |
Adjustments For Decrease (Increase) In Trade Accounts Receivables And Payables For Bunkers [Abstract] | |||
Change in bunkers | (1,600) | (6,100) | 15,600 |
Change in receivables | (12,400) | 18,100 | 6,100 |
Change in prepayments | (1,400) | 2,700 | 4,900 |
Change in trade payables and other liabilities | (4,500) | (5,400) | (11,900) |
Adjusted for fair value changes of derivative financial instruments | 6,900 | (1,000) | 2,200 |
Total | $ 12,996 | $ (8,322) | $ (16,870) |
ENTITIES IN THE GROUP (Details)
ENTITIES IN THE GROUP (Details) | 12 Months Ended | |
Dec. 31, 2017 | ||
Disclosure of subsidiaries [line items] | ||
Name of parent entity | TORM plc | |
Country of incorporation | United Kingdom | |
TORM A/S | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM A/S | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
DK Vessel HoldCo GP ApS | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | DK Vessel HoldCo GP ApS | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
DK Vessel HoldCo K/S | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | DK Vessel HoldCo K/S | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM (Gibraltar) Njord Midco Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM (Gibraltar) Njord Midco Ltd | [1] |
Country of incorporation of subsidiary | Gibraltar | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Chartering Inc | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Chartering Inc | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Agnes, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Agnes, Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Alice, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Alice, Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Almena, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Almena, Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Amalie, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Amalie, Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Aslaug, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Aslaug, Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Hardrada, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Hardrada, Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings St.Michaelis Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings St.Michaelis Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings St. Gabriel Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings St. Gabriel Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Harald Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Harald Pte. Ltd | [1],[5] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Gorm Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Gorm Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Knut Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Knut Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Valdemar Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Valdemar Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Agnete, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Agnete, Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Alexandra, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Alexandra, Pte. Ltd | [1] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Anabel, Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Anabel, Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Arawa Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Arawa Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Leif Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Leif Pte. Ltd | [1],[4] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Singapore Njord Holdings Rolf Pte. Ltd | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Singapore Njord Holdings Rolf Pte. Ltd | [1],[5] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Holdings Mrs Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Holdings Mrs Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Anne Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Anne Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Freya Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Freya Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Gerd Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Gerd Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Gertrud Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Gertrud Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Gunhild Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Gunhild Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Helene Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Helene Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Helvig Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Helvig Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Ingeborg Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Ingeborg Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Mary Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Mary Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Ragnhild Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Ragnhild Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Thyra Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Thyra Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Valborg Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Valborg Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OCM Njord Vita Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OCM Njord Vita Inc. | [1] |
Country of incorporation of subsidiary | Marshall Islands | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
OMI Holding Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | OMI Holding Ltd. | [1],[2],[4] |
Country of incorporation of subsidiary | Mauritius | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
Torghatten & TORM Shipowning ApS | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | Torghatten & TORM Shipowning ApS | [1],[2],[5] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TORM Brasil Consultoria em Transporte Maritimo LTDA. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM Brasil Consultoria em Transporte Maritimo LTDA. | [1],[2],[6] |
Country of incorporation of subsidiary | Brazil | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TORM Crewing Service Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM Crewing Service Ltd. | [1],[2] |
Country of incorporation of subsidiary | Bermuda | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TORM Shipping India Private Limited | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM Shipping India Private Limited | [1],[2] |
Country of incorporation of subsidiary | India | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TORM Singapore Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM Singapore Pte. Ltd. | [1],[2] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TORM USA LLC | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM USA LLC | [1],[2] |
Country of incorporation of subsidiary | USA | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TT Shipowning K/S | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TT Shipowning K/S | [1],[2],[5] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 1 K/S | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 1 K/S | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 2 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 2 Pte. Ltd. | [1],[2],[6] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 3 K/S | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 3 K/S | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 4 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 4 Pte. Ltd. | [1],[2],[6] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 5 K/S | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 5 K/S | [1],[2],[7] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 6 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 6 Pte. Ltd. | [1],[2] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 7 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 7 Pte. Ltd. | [1],[2] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 8 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 8 Pte. Ltd. | [1],[2] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 9 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 9 Pte. Ltd. | [1],[8] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 10 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 10 Pte. Ltd. | [1],[8] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 11 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 11 Pte. Ltd. | [1],[8] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo 12 Pte. Ltd. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo 12 Pte. Ltd. | [1],[7] |
Country of incorporation of subsidiary | Singapore | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
TORM Shipping (Phils.), Inc. | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | TORM Shipping (Phils.), Inc. | [1],[2] |
Country of incorporation of subsidiary | Philippines | |
Proportion of ownership interest in subsidiary | 25.00% | [3] |
VesselCo A ApS | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo A ApS | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo C ApS | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo C ApS | [1],[2] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
VesselCo E ApS | ||
Disclosure of subsidiaries [line items] | ||
Name of subsidiary | VesselCo E ApS | [1],[7] |
Country of incorporation of subsidiary | Denmark | |
Proportion of ownership interest in subsidiary | 100.00% | [3] |
[1] | All subsidiaries are consolidated in full. | |
[2] | Entities added in the financial year ended 31 December 2015. | |
[3] | For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.) INC where voting rights are 100%. | |
[4] | Entities dissolved in the financial year ended 31 December 2017. | |
[5] | Entities dissolved in the financial year ended 31 December 2016. | |
[6] | Entities dissolved in the financial year ended 31 December 2015. | |
[7] | Entities added in the financial year ended 31 December 2017. | |
[8] | Entities added in the financial year ended 31 December 2016. |
ENTITIES IN THE GROUP (Details
ENTITIES IN THE GROUP (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Disclosure Of Entities [Line Items] | |||||
Profit and loss from continuing operations | $ 2,407 | $ (142,491) | $ 125,983 | ||
Other compre-hensive income | [1] | 7,279 | [2] | (1,250) | 1,560 |
Total compre-hensive income | $ 9,686 | $ (143,741) | $ 127,543 | ||
Long Range 2 A/S | |||||
Disclosure Of Entities [Line Items] | |||||
Country | Denmark | ||||
% Control | 50.00% | ||||
Profit and loss from continuing operations | $ 0 | ||||
Other compre-hensive income | 0 | ||||
Total compre-hensive income | $ 0 | ||||
LR2 Management K/S | |||||
Disclosure Of Entities [Line Items] | |||||
Country | Denmark | ||||
% Control | 50.00% | ||||
Profit and loss from continuing operations | $ 0 | ||||
Other compre-hensive income | 0 | ||||
Total compre-hensive income | $ 0 | ||||
[1] | No income tax was incurred relating to other comprehensive income/(loss) items. | ||||
[2] | Please refer to "Consolidated Statement of Comprehensive Income". |
ENTITIES IN THE GROUP (Detail T
ENTITIES IN THE GROUP (Detail Textuals) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of information about consolidated structured entities [abstract] | |
Percentage of voting rights held in subsidiaries | 100.00% |
EARNINGS PER SHARE & DIVIDEN118
EARNINGS PER SHARE & DIVIDEND PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Earnings Per Share And Dividend Per Share [Abstract] | |||
Net profit/(loss) for the year | $ 2,407 | $ 142,491 | $ 125,983 |
Average number of shares | 62.3 | 63.1 | 51.7 |
Average number of treasury shares | (0.3) | (0.2) | 0 |
Average number of shares outstanding | 62 | 62.9 | 51.7 |
Dilutive effect of outstanding share options | 0 | 0 | 0 |
Average number of shares outstanding incl. dilutive effect of share options | 62 | 62.9 | 51.7 |
Basic earnings/(loss) per share (USD) | $ 0.04 | $ (2.3) | $ 2.4 |
Diluted earnings/(loss) per share (USD) | $ 0.04 | $ (2.3) | $ 2.4 |
EARNINGS PER SHARE & DIVIDEN119
EARNINGS PER SHARE & DIVIDEND PER SHARE (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DIVIDEND PER SHARE | |||
Dividend for the year | $ 1.2 | $ 25 | $ 0 |
Number of shares, end of period | 62.3 | 62.3 | 63.8 |
Dividend per share | $ 0.02 | $ 0.4 | $ 0 |
BUSINESS COMBINATIONS IN 201120
BUSINESS COMBINATIONS IN 2015 (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 13, 2015 |
Disclosure of detailed information about business combination [abstract] | ||||
Tangible fixed assets | $ 859.9 | |||
Investment in joint ventures | 0.3 | |||
Bunkers | 27.8 | |||
Freight receivables | 53.4 | |||
Other receivables | 6.6 | |||
Prepayments | 10.6 | |||
Cash and cash equivalents | 77.5 | |||
Deferred tax liabilities | 45.1 | |||
Mortgage debt and bank loans | (560.7) | |||
Finance lease liabilities | 13.5 | |||
Trade payables | 27.3 | |||
Current tax liabilities | 1.4 | |||
Other liabilities | 29.7 | |||
Time charter contracts | 1.6 | |||
Deferred income | 0.4 | |||
Net assets acquired | 356.4 | |||
Goodwill | $ 0 | $ 0 | $ 11.4 | 11.4 |
Consideration (purchase price) | 367.8 | |||
Shares | 349.8 | |||
Warrants | 18 | |||
Total consideration transferred | $ 367.8 |
BUSINESS COMBINATIONS IN 201121
BUSINESS COMBINATIONS IN 2015 (Detail Textuals) - USD ($) $ in Millions | Jul. 13, 2015 | Dec. 31, 2017 | Dec. 31, 2015 |
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||
Percentage of voting rights held in subsidiaries | 100.00% | ||
TORM A/S | OCM Njord Holdings S.a.R.L. | Business combinations | |||
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items] | |||
Ownership percentage | 100.00% | ||
Percentage of voting rights held in subsidiaries | 61.99% | ||
Freight and other receivables acquired | $ 60 | ||
Gross contractual amount | 61.9 | ||
Contractual cash flows not to expected to be collected | 1.9 | ||
Revenue | 390.8 | ||
Profit for the period | $ 88.2 | ||
Revenue of combined Group | $ 854.3 | ||
Profit for the period of combined Group | $ 186.7 |