DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2019shares | |
DOCUMENT AND ENTITY INFORMATION | |
Entity Registrant Name | TORM plc |
Entity Central Index Key | 0001655891 |
Trading Symbol | trmd |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Current Fiscal Year End Date | --12-31 |
Document Annual Report | true |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | Yes |
Document Transition Report | false |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 0 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Shell Company Report | false |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED INCOME STATEMENT | |||
Revenue | $ 692,610 | $ 635,366 | $ 656,991 |
Port expenses, bunkers and commissions | (267,739) | (283,018) | (259,888) |
Charter hire | (2,506) | (8,517) | |
Operating expenses | (172,983) | (180,443) | (188,374) |
Profit from sale of vessels | 1,180 | 752 | 2,762 |
Administrative expenses | (47,724) | (47,826) | (45,007) |
Other operating expenses | (2,911) | (1,963) | (418) |
Share of profit/(loss) from joint ventures | (422) | 189 | 3 |
Impairment losses and reversal of impairment on tangible assets | 114,004 | (3,249) | (3,572) |
Depreciation | (110,124) | (114,480) | (114,451) |
Operating profit/(loss) (EBIT) | 205,891 | 2,822 | 39,529 |
Financial income | 2,796 | 3,302 | 4,255 |
Financial expenses | (41,881) | (39,345) | (40,601) |
Profit/(loss) before tax | 166,806 | (33,221) | 3,184 |
Tax | (784) | (1,558) | (777) |
Net profit/(loss) for the year | $ 166,022 | $ (34,779) | $ 2,407 |
EARNINGS PER SHARE | |||
Basic earnings/(loss) per share (USD) (in dollars per share) | $ 2.24 | $ (0.48) | $ 0.04 |
Diluted earnings/(loss) per share (USD) (in dollars per share) | $ 2.24 | $ (0.48) | $ 0.04 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
Net profit/(loss) for the year | $ 166,022 | $ (34,779) | $ 2,407 |
Items that may be reclassified to profit or loss: | |||
Exchange rate adjustment arising from translation of entities using a functional currency different from USD | 426 | (316) | 240 |
Fair value adjustment on hedging instruments | (13,289) | (6,748) | 9,181 |
Fair value adjustment on hedging instruments transferred to income statement | 1,284 | (307) | (2,262) |
Items that may not be reclassified to profit or loss: | |||
Remeasurements of net pension and other post-retirement benefit liability or asset | (82) | (48) | 120 |
Other comprehensive income/(loss) after tax | (11,661) | (7,419) | 7,279 |
Total comprehensive income/(loss) for the year | $ 154,361 | $ (42,198) | $ 9,686 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Tangible fixed assets | |||
Land and buildings | $ 8,127 | ||
Vessels and capitalized dry-docking | 1,674,795 | $ 1,396,558 | |
Prepayments on vessels | 95,003 | 45,491 | $ 88,400 |
Other plant and operating equipment | 4,256 | 2,973 | |
Total tangible fixed assets | 1,782,181 | 1,445,022 | |
Financial assets | |||
Investments in joint ventures | 1,169 | 71 | |
Loan receivables | 4,617 | ||
Other investments | 1 | 5 | |
Total financial assets | 5,787 | 76 | |
Total non-current assets | 1,787,968 | 1,445,098 | |
CURRENT ASSETS | |||
Bunkers | 34,837 | 39,404 | |
Freight receivables | 89,830 | 85,997 | |
Other receivables | 6,168 | 7,488 | |
Prepayments | 3,468 | 2,855 | |
Cash and cash equivalents, including restricted cash | 72,483 | 127,361 | 134,207 |
Current assets, excluding assets held-for-sale | 206,786 | 263,105 | |
Assets held-for-sale | 9,127 | 6,197 | |
Total current assets | 215,913 | 269,302 | |
TOTAL ASSETS | 2,003,881 | 1,714,400 | |
EQUITY | |||
Common shares | 747 | 742 | |
Share premium | 101,289 | 97,092 | |
Treasury shares | (2,887) | (2,887) | |
Hedging reserves | (11,751) | 254 | |
Translation reserves | 330 | (96) | |
Retained profit | 919,959 | 752,106 | |
Total equity | 1,007,687 | 847,211 | 791,050 |
NON-CURRENT LIABILITIES | |||
Deferred tax liability | 44,901 | 44,909 | |
Borrowings | 756,352 | 655,164 | $ 651,600 |
Total non-current liabilities | 801,253 | 700,073 | |
CURRENT LIABILITIES | |||
Borrowings | 99,025 | 94,422 | |
Trade payables | 47,120 | 35,122 | |
Current tax liabilities | 1,476 | 1,010 | |
Other liabilities | 47,316 | 36,503 | |
Deferred income | 4 | 59 | |
Total current liabilities | 194,941 | 167,116 | |
Total liabilities | 996,194 | 867,189 | |
TOTAL EQUITY AND LIABILITIES | $ 2,003,881 | $ 1,714,400 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common shares | Share premium | Treasury shares | Hedging reserves | Translation reserves | Retained profit | Total |
Equity at Dec. 31, 2016 | $ 623 | $ (2,887) | $ 390 | $ (20) | $ 782,472 | $ 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 | 240 | 120 | 7,279 | |||
Total comprehensive income/(loss) for the year | 6,919 | 240 | 2,527 | 9,686 | |||
Corporate Reorganization TORM plc | 146 | 146 | |||||
Share-based compensation | 1,880 | 1,880 | |||||
Dividend paid | (1,240) | (1,240) | |||||
Total changes in equity | 6,919 | 240 | 3,313 | 10,472 | |||
Equity at Dec. 31, 2017 | 623 | (2,887) | 7,309 | 220 | 785,785 | 791,050 | |
Changes in Stockholders' Equity [Roll Forward] | |||||||
Adjusted equity as of 1 January 2018 | 623 | (2,887) | 7,309 | 220 | 784,907 | 790,172 | |
Effect as of 1 January 2018 of new IFRS standards implemented | (878) | (878) | |||||
Comprehensive income/loss for the year: | |||||||
Net profit/(loss) for the year | (34,779) | (34,779) | |||||
Other comprehensive income/(loss) for the year | (7,055) | (316) | (48) | (7,419) | |||
Total comprehensive income/(loss) for the year | (7,055) | (316) | (34,827) | (42,198) | |||
Capital increase | 119 | $ 99,880 | 99,999 | ||||
Transaction costs capital increase | (2,788) | (2,788) | |||||
Share-based compensation | 2,026 | 2,026 | |||||
Total changes in equity | 119 | 97,092 | (7,055) | (316) | (32,801) | 57,039 | |
Equity at Dec. 31, 2018 | 742 | 97,092 | (2,887) | 254 | (96) | 752,106 | 847,211 |
Comprehensive income/loss for the year: | |||||||
Net profit/(loss) for the year | 166,022 | 166,022 | |||||
Other comprehensive income/(loss) for the year | (12,005) | 426 | (82) | (11,661) | |||
Total comprehensive income/(loss) for the year | (12,005) | 426 | 165,940 | 154,361 | |||
Capital increase | 5 | 4,197 | 4,202 | ||||
Share-based compensation | 1,913 | 1,913 | |||||
Total changes in equity | 5 | 4,197 | (12,005) | 426 | 167,853 | 160,476 | |
Equity at Dec. 31, 2019 | $ 747 | $ 101,289 | $ (2,887) | $ (11,751) | $ 330 | $ 919,959 | $ 1,007,687 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENT - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOW FROM OPERATING ACTIVITIES | |||
Net profit/(loss) for the year | $ 166,022 | $ (34,779) | $ 2,407 |
Reversals: | |||
Profit from sale of vessels | (1,180) | (752) | (2,762) |
Depreciation | 110,124 | 114,480 | 114,451 |
Impairment losses and reversal of impairment losses on tangible assets | (114,004) | 3,249 | 3,572 |
Share of profit/(loss) from joint ventures | 422 | (189) | (3) |
Financial income | (2,796) | (3,302) | (4,255) |
Financial expenses | 41,881 | 39,345 | 40,601 |
Tax expenses | 784 | 1,558 | 777 |
Other non-cash movements | 925 | 2,039 | 3,696 |
Dividends received from joint ventures | 19 | 440 | |
Interest received and realized exchange gains | 2,535 | 2,720 | 1,641 |
Interest paid and realized exchange losses | (45,283) | (39,792) | (36,698) |
Income taxes paid | (216) | (1,611) | (586) |
Change in bunkers, receivables and payables, etc. | 11,858 | (12,668) | (12,996) |
Net cash flow from operating activities | 171,091 | 70,738 | 109,845 |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Investment in tangible fixed assets | (384,349) | (202,439) | (145,112) |
Investments in joint ventures | (275) | ||
Sale of tangible fixed assets | 61,801 | 26,847 | 31,382 |
Net cash flow from investing activities | (322,823) | (175,592) | (113,730) |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Proceeds, borrowings | 261,830 | 114,530 | 205,572 |
Repayment, borrowings | (169,177) | (113,733) | (142,211) |
Dividend paid | (1,240) | ||
Capital increase | 4,202 | 99,999 | |
Transaction costs share issue | (2,788) | ||
Change in restricted cash | (12,364) | (2,014) | 594 |
Net cash flow from financing activities | 84,491 | 95,994 | 62,715 |
Net cash flow from operating, investing and financing activities | (67,241) | (8,860) | 58,830 |
Cash and cash equivalents as of 1 January | 124,088 | 132,948 | 74,118 |
Cash and cash equivalents as of 31 December | 56,847 | 124,088 | 132,948 |
Restricted cash as of 31 December | 15,636 | 3,273 | 1,259 |
Cash and cash equivalents, including restricted cash as of 31 December | $ 72,483 | $ 127,361 | $ 134,207 |
ACCOUNTING POLICIES, CRITICAL A
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | |
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. TORM plc is listed on the stock exchange Nasdaq in Copenhagen, Denmark, and on Nasdaq in 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 of the Company is USD, and the Company applies USD as presentation currency in the preparation of the consolidated financial statements. GOING CONCERN The financial position of the Group, its cash flows, liquidity position and borrowing facilities are set out on pages 39-46. As of 31 December 2019, TORM’s available liquidity including undrawn facilities was USD 246m, including a cash position including restricted cash of USD 72m. TORM’s net debt was USD 786m and the net debt loan-to-value ratio was 46%. In addition, the Group has in February 2020 obtained bank financing of USD 496m replacing existing debt and removing all major debt maturities until 2026. This has been taken into consideration in the Directors’ assessment of the financial position. 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 principal risks and uncertainties facing the Group are set out on pages 33-38, and details on the refinancing are described in note 2. 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 available 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 Group also pays special attention to the recent COVID-19 outbreak and the associated effects on the product tanker market and has included the currently expected impact in the sensitivity analysis. 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 next 12 months. Accordingly, the Group continues to adopt the going concern basis in preparing its financial statements. ADOPTION OF NEW OR AMENDED IFRS STANDARDS TORM has implemented the following standards and amendments issued by the IASB and adopted by the EU in the consolidated financial statements for 2019: · IFRIC Interpretation 23, Uncertainty over Income Tax Treatments · Amendments to IFRS 9: Prepayment Features with Negative Compensation · Annual Improvements 2015-2017 Cycle (issued in December 2017) · Amendments to IAS 19: Plan Amendment, Curtailment or Settlement · Amendments to IAS 28: Long-term interests in associates and joint ventures · TORM has elected to early adopt the amendments to IFRS 9, IAS 39 and IFRS 7, 'Interest Rate Benchmark Reform'. The transition provisions require that the amendments are adopted retrospectively to hedging relationships that existed at the start of the reporting period or were designated thereafter, and to the amount accumulated in the cash flow reserve at that date. The reliefs specify that the IBOR reform should not generally cause hedge accounting to terminate. Hence there are reliefs in the amendments that apply to the hedging relationships directly affected by the IBOR reform. · IFRS 16: On 1 January 2019, TORM adopted IFRS 16 “Leases”, which is mandatory for accounting periods beginning 1 January 2019 or later. The standard was implemented using the modified retrospective approach, whereby right-of-use assets at the date of initial application are measured at an amount equal to the lease liability, which as of 1 January 2019 amounted to USD 9.9m. The impact of the standard for TORM was limited to leasing agreements regarding office buildings and other administrative contracts such as cars, office equipment, etc. The presentation in the 2019 income statement has changed, which resulted in the recording of "Depreciation" of USD 2.5m and "Financial expenses" (interest) of USD 0.4m, in contrast to the recording of an operating lease charge of a materially equivalent figure within the line item "Administrative expenses" under IAS 17. Although this reclassification has had an insignificant overall net effect on the Profit and Loss in 2019, it has improved the Alternative Performance Measure (APM) "EBITDA" by approximately USD 2.5m. Comparative information has not been restated. · In implementing IFRS 16, TORM has applied the following recognition exemptions and practical expedients: · Relied on the definition under IAS 17 and IFRIC 4 to determine whether contracts at the date of initial application contain a lease · Not recognized right-of-use assets and lease liabilities related to low value and short-term leases. Short-term leases are defined as leases with a remaining contract period of 12 months or less at the date of initial application · Applied a single discount rate to a portfolio of leases with reasonably similar characteristics · Excluded initial direct costs from the recognition of right-of-use assets at the date of initial application · Relied on the assessment of whether a contract is onerous under IAS 37 at the date of initial application instead of performing an impairment review under IAS 36 · For leases held under finance lease as of 31 December 2018, the carrying amount continues under IFRS 16 Reconciliation of lease liabilities pursuant to IFRS 16 on transition: USDm 2019 Total operating lease commitments at 31 December 2018 6.2 Recognition exemptions: Leases of low value assets — Leases with remaining lease term of 12 months or less — Operating lease liabilities before discounting 6.2 Discounted using incremental borrowing rate (0.6) Operating lease liability 5.6 Reasonably certain extension options 4.5 Other adjustments (0.2) Finance lease liabilities recognized under IAS 17 25.3 Total lease liabilities recognized under IFRS 16 at 1 January 2019 35.2 On transition to IFRS 16, TORM recognized lease liabilities in relation to leases which had previously been classified as operating leases in accordance with IAS 17. The weighted average borrowing rate applied to lease liabilities recognized in the balance sheet as of 1 January 2019 is 4.9 %. It is assessed that application of other new interpretations effective on 1 January 2019 has not had any material impact on the consolidated financial statements in 2019. 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. In general, the following standards are expected to have the most significant impact on current accounting regulation: · IFRS 17 Insurance Contracts · IFRS 10 and IAS 28 (amendments) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture · Amendments to IFRS 3 Definition of a business · Amendments to IAS 1 and IAS 8 Definition of material TORM has assessed the accounting standards and interpretations not yet adopted and does not expect the new standards to have any material impact on neither TORM’s figures nor the disclosures. 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 all the following: · Power over the investee · Exposure, or rights, to variable returns from its involvement with the investee · The ability to use its power over the investee to affect the amounts of the investor’s 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 · 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. Foreign currencies The functional currency of all significant entities, including subsidiaries and associated companies, is United States dollars (USD), because the Company’s vessels operate in international shipping markets, in which income and expenses are settled in USD, and because the Company’s 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”. 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 rate for the year, whereas balance sheet items are translated at the exchange rate as of the balance sheet date. Exchange differences arising from the translation of financial statements into USD are recognized as a separate component in "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 and hedge accounting Derivative financial instruments, primarily forward currency exchange contracts, forward freight agreements, interest rate hedges and forward contracts regarding bunker purchases, are entered into to eliminate risks relating to future fluctuations in prices and interests, etc. on future committed or anticipated transactions. TORM applies hedge accounting under the specific rules on cash flow hedges when appropriate as described below for each type of derivative. 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, 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. 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 and certain forward freight agreements and forward contracts regarding bunker purchases do not qualify for hedge accounting. Changes in fair value of these derivative 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 The segmentation is based on the Group’s internal management and reporting structure. The Group only has one reportable segment, the Tanker Segment, for which 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. 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 TORM assesses whether a contract is or contains a lease at inception of the contract and recognizes right-of-use assets and corresponding lease liabilities at the lease commencement date, except for short-term leases and leases of low value. For these leases, TORM recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Agreements to charter in vessels and to lease land and buildings and other plant and operating equipment for which TORM substantially has the control are recognized on the balance sheet as right-of-use assets and initially measured cost, which comprises the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date. Subsequently the right-of-use assets are measured at cost less accumulated depreciation and impairment losses. The right-of-use 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 under "Borrowings" and initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, in case that rate cannot be determined, TORM's incremental borrowing rate. Subsequently lease liabilities are measured at amortized cost using the effective interest method, where the lease liabilities are remeasured when there is a change in future lease payments. Sale and leaseback Following a sale transaction, agreements to immediately charter-in the related vessels (sale and leaseback) but for which TORM maintains substantially all the risks and rewards incidental to economic ownership, the proceeds received are presented as a financial liability in "Borrowings". No gain or loss is recorded, and the asset remains recognized on the balance sheet. TORM has three sale and leaseback agreements previously accounted for as financial leases in accordance with IAS 17. The right-of-use assets and related lease liabilities are presented as a part of "Vessels and capitalized dry-docking" and "Borrowings" respectively. 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. Revenue is recognized when or as performance obligations are satisfied by transferring the promised goods or services to the customer, i.e. at a point in time or over time provided that the stage of completion can be measured reliably. Revenue is measured at the consideration the Group expects to be entitled to. The completion is determined using the load-to-discharge method based on the percentage of the estimated duration of the voyage completed at the reporting date. Freight revenue and related voyage and operating costs are recognized in the income statement according to the entered charter parties from the date of load to the date of delivery of the cargo (discharge). Accordingly, freight, charter hire and demurrage revenue are recognized at selling price upon delivery of the service as specified in the agreement with the charter parties. 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. 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 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. To the extent the costs are recoverable, costs directly attributable to relocate the vessel to the load port are capitalized and amortized over the course of the transportation period. Gains and losses on forward bunker contracts 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. The freight and bunker derivatives that qualify for hedge accounting are recognized in Revenue and Port expense, bunkers and commissions respectively, at the same time as the hedged items are recognized in profit and loss. Fair value adjustments of derivatives that do not qualify for hedge accounting are recognized in the same line when incurred. Charter hire Charter hire comprises expenses related to the chartering in of vessels on short-term agreements under 12 months 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 at the time of delivery to the buyer, representing the difference between the sales price less costs 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 profits and losses deriving from the disposal of fixed assets other than vessels. Depreciation and impairment losses and reversals of 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 costs to sell. Subsequent reversal of impairment losses are recognized if the recoverable amount exceeds the carrying amount to the extent that the carrying amount does not exceed the carrying amount without any historic impairment losses. 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 payments under interest rate hedge instruments. 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 payments under interest rate hedge instruments. 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 Vessels Vessels consist of owned vessels and leased vessels. The accounting policy for leased vessels is specified under "Leases" and "Sale and leaseback" above. Owned 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 (scrubbers, etc.) 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 24 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, the 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. Prepayments on vessels Prepayments consist of prepayments related to newbuilding contracts for vessels not yet delivered and include the share of borrowing costs that are directly attributable to the acquisition of the underlying vessel. When a vessel is delivered, the prepaid amount is reallocated to the financial statement line “Vessels and capitalized dry-docking”. Land and buildings and other plant and operating equipment Land and buildings and other plant and operating equipment consist of leaseholds regarding office buildings, leasehold improvements, company cars, IT equipment and software and is measured at historical cost less accumulated depreciation and any impairment loss. Any subsequent cost is included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefits are associated with the item and the cost of the item can be measured reliably. Depreciation is based on the straight-line method over the estimated useful life of the assets. The current estimates are: · Office buildings: Over the shorter of the remaining leasing term and the estimated useful life · Leasehold improvements: Over the shorter of the remaining leasing term and the estimated useful life · Company cars: Over the lease term, typically 3 years · IT equipment: 3-5 years · Software: 3-5 years · |
LIQUIDITY, CAPITAL RESOURCES AN
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS | |
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS | NOTE 2 – LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS LIQUIDITY AND CAPITAL RESOURCES As of 31 December 2019, TORM’s cash and cash equivalents including restricted cash totaled USD 72m (2018: USD 127m; 2017: USD 134m), and undrawn credit facilities amounted to USD 173m (2018: USD 279m; 2017: USD 271m). The undrawn credit facilities consisted of a USD 75m Working Capital Facility, a bilateral USD 53m facility with ABN AMRO Bank and a USD 46m facility with KfW. TORM had four newbuildings on order for delivery in 2020 (2018: nine; 2017: ten). The total outstanding CAPEX related to these newbuildings was USD 51m (2018: USD 258m; 2017: USD 307m) and is mainly financed by the undrawn facilities with ABN AMRO Bank and Danish Ship Finance. TORM has a Term Facility I of USD 237m 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 75m with maturity in 2022 and bilateral loan agreements with ING of USD 36m maturing in 2024, with China Export-Import Bank of USD 104m with maturity in 2030, with ABN AMRO of USD 21m maturing in 2024 and with Danish Ship Finance of USD 207m maturing in 2026. The loan agreement with Danish Ship Finance consists of four tranches, two of which expire in 2021 with total balloon payments of USD 72m. As of 31 December 2019, the scheduled minimum payments on mortgage debt and bank loans in 2020 were USD 83m. TORM’s bank debt facilities include financial covenants related to: · Minimum liquidity including committed credit lines · Minimum cash · Loan-to-value · Equity ratio During 2019, 2018 and 2017, TORM did not have any covenant breaches. SUBSEQUENT EVENTS · On 3 January 2020, TORM took delivery of the newbuilding TORM Elise (hull no. 15121140), a 75,000 DWT LR1 tanker from Guangzhou Shipyard International. · On 6 January 2020, TORM took delivery of the newbuilding TORM Elizabeth (hull no. 15121141), a 75,000 DWT LR1 tanker from Guangzhou Shipyard International. · On 8 January 2020, TORM delivered the Handysize tanker TORM Garonne to its new owner. In the financial statements, TORM Garonne is treated as an asset held for sale. The delivery resulted in a net impairment of vessels of USD 0.7m in 2019. · On 14 January 2020, TORM took delivery of the newbuilding TORM Splendid (hull no. 15121039), a 50,000 DWT MR tanker from Guangzhou Shipyard International. · On 14 January 2020, TORM announced the obtaining of a USD 496m bank financing for the refinancing of four existing facility agreements and the replacement of the existing working capital facility, thereby removing all major debt maturities until 2026. The new agreements include financing of 46 existing vessels. The refinancing was successfully closed on 6 February 2020. · On 16 January 2020, TORM carried out a capital increase due to the exercise of Restricted Share Units as part of the Company's incentive program. TORM increased its share capital by 12,405 A-shares corresponding to a nominal value of USD 124.05. After the capital increase, TORM's share capital amounts to USD 747,606.55 divided into 74,760,653 A-shares of USD 0.01 each, one B-share of USD 0.01 and one C-share of USD 0.01. A total of 74,760,653 votes are attached to the A-shares. · On 23 January 2020, TORM entered into an agreement to purchase two scrubber-fitted, fuel-efficient and dual-fuel-ready LR2 newbuildings from Guangzhou Shipyard International with expected delivery in the fourth quarter of 2021. TORM expects to have total CAPEX relating to the two vessels of USD 95 m including extra costs related to TORM's design requirements and scrubber installations. TORM has secured financing of USD 76m with an international financial institution. The financing will be structured as a ten-year sale and leaseback agreement with purchase options during the lease period and at maturity, providing TORM with maximum capital commitment flexibility. · Since the end of 2019, TORM has decided to conduct retrofit scrubber installations on three additional MR vessels. This brings the total scrubber-fitted vessels to 49 when the two LR2 newbuildings are delivered in the fourth quarter of 2021. · Towards the end of January 2020, the product tanker market softened from strong levels, negatively impacted by the global outbreak of the COVID-19. Although it is not possible to reliably estimate the length or severity of this outbreak and hence its financial impact, this has lowered both the general freight rate environment and the market values of TORM’s vessels. |
STAFF COSTS
STAFF COSTS | 12 Months Ended |
Dec. 31, 2019 | |
STAFF COSTS | |
STAFF COSTS | NOTE 3 – STAFF COSTS USDm 2019 2018 2017 Total staff costs Staff costs included in operating expenses 8.1 9.3 9.2 Staff costs included in administrative expenses 37.7 36.9 34.6 Total 45.8 46.2 43.8 Staff costs comprise the following Wages and salaries 37.2 38.1 36.4 Share-based compensation 1.9 2.1 1.9 Pension costs 3.5 3.3 3.1 Other social security costs 0.9 0.6 0.3 Other staff costs 2.3 2.1 2.1 Total 45.8 46.2 43.8 Average number of permanent employees Seafarers 107.6 111.7 130.6 Land-based 313.5 302.2 286.6 Total 421.1 413.9 417.2 Employee information The majority of the staff on vessels are not employed by TORM. Staff costs included in operating expenses relate to the 108 seafarers (2018: 112, 2017: 131). 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 2019 2018 2016 Non-Executive Board and Committee Remuneration, short term Christopher H. Boehringer 252 276 290 David Weinstein 198 182 174 Torben Janholt 170 171 174 Göran Trapp 170 171 174 Total 790 800 812 Executive Management USD ‘000 Salary Taxable benefits Annual perfor-mance bonus Total Executive Management Remuneration Jacob Meldgaard 2017, TORM A/S 1) 923 42 580 1,545 2017, TORM plc 1) 81 — — 81 2018, TORM A/S 1) 983 44 425 1,452 2018, TORM plc 1) 80 — — 80 2019, TORM A/S 1) 962 41 1,126 2,129 2019, TORM plc 1) 79 — — 79 1) Paid by legal entity as noted. Key management personnel consists of the Board of Directors and the Executive Director. Senior Management Team The aggregate compensation paid by the Group to the other members of the Senior Management Team (excluding Mr. Meldgaard) was USD 1,736,750 (2018: USD 2,186,679, 2017: USD 1,987,726), which includes an aggregate of USD 115,880 (2018: USD 125,959, 2017: USD 112,236) allocated for pensions for these individuals. Long-Term Incentive Plan - RSUs granted in 2019: Exercise price RSU grant value assuming 100% RSU LTIP grant 1) per share vesting LTIP element of Jacob Meldgaard’s remuneration package 2018: Jacob Meldgaard 766,035 DKK 53.7 USD 0.9m 1) The LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 10 of 25 April 2018. Therefore there is no minimum or maximum for 2018. TORM operates an equity-settled, share-based compensation plan. The fair value of the employee services received in exchange for the grant of shares is recognized as expense and allocated over the vesting period. Employment in TORM throughout the period is in most cases a prerequisite for upholding the full vesting rights in the RSU program. For good leavers subject to the Danish Stock Options Act, the RSU’s will vest in accordance with the vesting schedule, but for all other leavers, all unvested RSU’s shall be immediately forfeited for no consideration. Options are granted under the plan for no consideration and carry no dividend or voting rights. In accordance with its Remuneration Policy, TORM has granted the CEO a number of Restricted Share Units (RSUs), which was communicated in company announcement no. 2 dated 18 January 2016. A further communication, announcement no. 10 issued on 25 April 2018, detailed changes to the grant of RSUs, as agreed to at the AGM on 12 April 2018. There are no performance conditions associated with this grant of RSUs. The original RSUs granted to the CEO in 2016 amounted to 1,276,725 and vested over a five-year period, with one fifth of the grant amount vesting at each anniversary during the five-year period. The exercise price for the 2016 RSUs was DKK 96.3. As of 1 January 2017, one fifth of the original grant, amounting to 255,345, vested with an exercise period ending 31 December 2017. None of these RSUs were exercised. As of 1 January 2018, one fifth of the original grant, amounting to 255,345, vested with an exercise period ending 31 December 2018. None of these RSUs were exercised. As detailed in announcement no. 10 issued on 25 April 2018, the CEO was granted a total of 766,035 RSUs with effect as of 1 January 2018, which will vest in equal installments over the next three years. The RSU grant corresponds to the unvested portion (60%) of the CEO’s original five-year grant from 2016. It has been agreed that the CEO will not exercise the original RSUs. The exercise price for each RSU is DKK 53.7, corresponding to the average price of TORM shares during 90 calendar days preceding the approval at TORM plc’s AGM on 12 April 2018 plus a 15% premium. Vested RSUs may be exercised for a period of 360 days from each vesting date. As of 1 January 2019, one fifth of the grant, amounting to 255,345, vested with an exercise period ending 31 December 2019. These RSUs, amounting to one third of the re-grant issued on 25 April 2018, were exercised. In November 2019, 255,345 RSUs were exercised by Executive Director Mr. Jacob Meldgaard. 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 (LTIP) (cf. company announcements dated 18 January and 8 March 2016 and 25 April 2018). The value of the 2018 grant, USD 0.9m, is estimated taking into account that the CEO as part of the grant will not exercise the unvested portion of the 2016 grant. The valuation is based on the Black-Scholes model with an exercise price of DKK/share 53.7, a market value of one TORM A-share of DKK 49.5 (the closing price per A-share at the time of allocation and assuming 100% vesting). The single figure remuneration table for the CEO does not include any amounts in relation to the RSU awards since, as of the date each tranche vested, the Company's share price was less than the exercise price. In December 2019, the CEO was informed that he would receive two additional tranches of 255,200 RSUs in 2021 and 2022 respectively. The first would vest in equal installments over three years beginning 1 January 2022. The second would vest in equal installments over three years beginning 1 January 2023. The strike price for each tranche will be determined as the average of 90 days before publication of the TORM plc Annual Report plus a 15% premium. The first tranche will be based on the publication of the Annual Report 2020 and the second tranche on the publication of the Annual Report 2021. The exercise period for vested RSUs will be 360 days. Long-term employee benefit obligations The obligation comprises an obligation under the incentive programs to deliver Restricted Share Units 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) 2019 2018 2017 Outstanding as of 1 January 2,719.1 2,611.2 1,999.8 Granted during the period 1,001.1 907.3 866.6 Exercised during the period (529.4) — — Expired during the period (785.3) (764.0) (233.9) Forfeited during the period (177.2) (35.4) (21.3) Outstanding as of 31 December 2,228.3 2,719.1 2,611.2 Exercisable as of 31 December — 255.3 255.3 In 2017, the Board agreed to grant a total of 866.6 RSUs to other management. The RSUs to other management were subject to a three-year vesting period, with one third of the grant amount vesting at each anniversary date beginning on 1 January, 2018. The exercise price of each vested RSU is following certain adjustments for dividends at DKK 93.6 and an exercise period of six months. In 2018, the Board agreed to grant a total of 944,468 RSU’s to other management. The vesting period of the program is three years for key employees and three years for the Executive Director. The exercise price is set to DKK 53.7. The exercise period is 12 months after the vesting date for key employees and 12 months after the vesting date for the Executive Director. The fair value of the options granted in 2018 was determined using the Black-Scholes model and is not material. The average remaining contractual life for the restricted shares as per 31 December 2018 is 1.1 years (2017: 1.3 years). In 2019, the Board agreed to grant a total of 1,001,100 RSUs to other management. The vesting period of the program is three years for key employees. The exercise price is set to DKK 53.7. The exercise period is 12 months after the vesting date. The fair value of the options granted in 2019 was determined using the Black-Scholes model and is not material. The average remaining contractual life for the restricted shares as per 31 December 2019 is 1.5 years. |
REMUNERATION TO AUDITORS APPOIN
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | 12 Months Ended |
Dec. 31, 2019 | |
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | |
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | NOTE 4 – REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY’S ANNUAL GENERAL MEETING USDm 2019 2018 2017 Audit fees Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 0.4 0.4 0.4 Audit of the Company’s subsidiaries pursuant to legislation 0.2 0.2 0.2 Total audit fees 0.6 0.6 0.6 Non-audit fees Audit-related services 0.1 0.2 0.4 Tax services 0.0 — — Total non-audit fees 0.1 0.2 0.4 Total 0.7 0.8 1.0 Under SEC regulations, the remuneration of the auditor of USD 0.7m (2018: USD 0.8m, 2017: USD 1.0m) is required to be presented as follows: Audit USD 0.6m (2018: USD 0.6m, 2017: USD 0.6m) and other audit-related services USD 0.1m (2018: USD 0.2m, 2017: USD 0.4m). 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. |
LOAN RECEIVABLES
LOAN RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
LOAN RECEIVABLES | |
LOAN RECEIVABLES | NOTE 5 – LOAN RECEIVABLES USDm 2019 2018 2017 Loan receivables Cost: Balance as of 1 January — — — Additions during the year 4.7 — — Balance as of 31 December 4.7 — — Expected credit loss Balance as of 1 January — — — Additions during the year 0.1 — — Balance as of 31 December 0.1 — — Carrying amount as of 31 December 4.6 — — These loans were issued as part of sale and leaseback transactions for two MR vessels. Further details are provided in note 23. The loans mature in 2026 and have an interest rate applicable, fixed at 1% per annum. |
TANGIBLE FIXED ASSETS
TANGIBLE FIXED ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
TANGIBLE FIXED ASSETS | |
TANGIBLE FIXED ASSETS | NOTE 6 – TANGIBLE FIXED ASSETS USDm 2019 2018 2017 Land and buildings Cost: Balance as of 1 January — — — Adjustment on transition to IFRS 16 9.9 — — Additions 0.5 — — Balance as of 31 December 10.4 — — Depreciation: Balance as of 1 January — — — Depreciation for the year 2.3 — — Balance as of 31 December 2.3 — — Carrying amount as of 31 December 8.1 — — USDm 2019 2018 2017 Vessels and capitalized dry-docking Cost: Balance as of 1 January 1,886.3 1,726.6 1,697.4 Additions 81.3 162.7 103.1 Disposals (25.6) (30.2) (14.3) Transferred from prepayments 252.3 81.8 — Transferred to assets held for sale (130.1) (54.6) (59.6) Balance as of 31 December 2,064.2 1,886.3 1,726.6 Depreciation: Balance as of 1 January 327.6 264.8 180.0 Disposals (25.6) (30.2) (14.3) Depreciation for the year 106.5 113.4 113.6 Transferred to assets held for sale (47.9) (20.4) (14.5) Balance as of 31 December 360.6 327.6 264.8 Impairment: Balance as of 1 January 162.1 167.3 173.6 Impairment losses on tangible fixed assets 6.0 3.2 3.6 Reversal of impairment 1) (120.0) — — Transferred to assets held for sale (19.3) (8.4) (9.9) Balance as of 31 December 28.8 162.1 167.3 Carrying amount as of 31 December 1,674.8 1,396.6 1,294.5 1) For additional information regarding impairment considerations, please refer to note 8. Included in the carrying amount for "Vessels and capitalized dry-docking" are capitalized dry-docking costs in the amount of USD 60.7m (2018: USD 67.5m, 2017: USD 68.1m). The sale and leaseback transactions in 2019 were all classified as financing arrangements and did not result in derecognition of the underlying assets as control was retained by the Group. USDm 2019 2018 2017 Prepayments on vessels Cost: Balance as of 1 January 45.5 88.4 44.1 Additions 301.8 38.9 44.3 Transferred to vessels (252.3) (81.8) — Balance as of 31 December 95.0 45.5 88.4 Carrying amount as of 31 December 95.0 45.5 88.4 USDm 2019 2018 2017 Other plant and operating equipment Cost: Balance as of 1 January 5.8 3.6 2.7 Adjustment on transition to IFRS 16 0.3 — — Additions 2.2 2.2 1.0 Disposals (0.2) — (0.1) Balance as of 31 December 8.1 5.8 3.6 Depreciation: Balance as of 1 January 2.8 1.7 0.9 Disposals — — (0.1) Depreciation for the year 1.0 1.1 0.9 Balance as of 31 December 3.8 2.8 1.7 Carrying amount as of 31 December 4.3 3.0 1.9 For information on assets provided 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 1.0m relates to "Administrative expense" (2018: USD 1.1m, 2017: USD 0.9m). Depreciation and impairment losses on tangible fixed assets on "Vessels and capitalized dry-docking" relate to operating expenses. |
LEASING
LEASING | 12 Months Ended |
Dec. 31, 2019 | |
LEASING | |
LEASING | NOTE 7 – LEASING TORM has leases for the office buildings, some vehicles and other administrative equipment. With the exception of short-term leases and leases of low-value assets, each lease is reflected on the balance sheet as a right-of-use asset with a corresponding lease liability. The right-of-use assets are included in the financial statement line item in which the corresponding underlying assets would be presented if they were owned. Please refer to note 6. As of 31 December 2019, TORM had recognized the following right-of-use assets: Vessels and Other plant capitalized Land and and operating USDm dry-docking buildings equipment Cost: Balance as of 1 January — — Adjustment on transition to IFRS 16 — 9.9 0.3 Additions 0.5 0.4 Disposals (2.7) — (0.1) Balance as of 31 December 10.4 0.6 Depreciation: Balance as of 1 January — — Disposals (2.7) — — Depreciation for the year 2.3 0.2 Balance as of 31 December 2.3 0.2 Carrying amount as of 31 December 8.1 0.4 The table below describes the nature of the Group’s leasing activities by type of right-of-use asset recognized on the balance sheet: Other plant Vessels and capitalized Land and and operating dry-docking buildings equipment No. of right-of-use assets leased 10 19 Range of remaining term 2 years 0-9 years 0-3 years Average remaining lease term years 2.8 years 1.3 years No. of leases with extension options — 10 19 No. of leases with options to purchase — — No. of leases with termination options 2 10 Lease liabilities regarding right-of-use assets are included on the balance sheet under “Borrowings”. USDm 2019 2018 Maturity analysis - contractual undiscounted cash flow Less than one year 7.5 5.2 One to five years 27.6 25.6 More than five years 0.1 — Total undiscounted lease liabilities as of 31 December 35.2 30.8 Lease liabilities included under "Borrowings" as of 31 December 30.6 25.3 Non-current 10.2 3.2 Current 20.4 22.1 Extension and termination options are included in several leases in order to optimize operational flexibility in terms of managing contracts. The lease term determined by TORM is the non-cancellable period of a lease, together with any extension/termination options if these are/are not reasonably certain to be exercised. Lease payments not recognized as a liability The Group has elected not to recognize a lease liability for short-term leases (leases of an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The expenses relating to payments not recognized as a lease liability are insignificant. Administrative expenses The total outflow for leases, USD 2.9m, is presented as “Depreciation” of USD 2.5m and “Financial expenses” (interest) of USD 0.4m, in contrast to the recording of an operating lease charge of a materially equivalent figure within the line item “Administrative expenses” under IAS 17. Financial expenses Financial expenses for the reporting periods: USDm 2019 2018 2017 Interest expenses: — — Financial expenses arising from lease liabilities regarding right-of-use assets 2.4 2.3 1.8 Other financial expenses 39.5 37.0 38.8 Total 41.9 39.3 40.6 |
IMPAIRMENT TESTING
IMPAIRMENT TESTING | 12 Months Ended |
Dec. 31, 2019 | |
IMPAIRMENT TESTING | |
IMPAIRMENT TESTING | NOTE 8 – IMPAIRMENT TESTING As of 31 December 2019, Management performed an impairment test of the recoverable amount of significant assets within the cash-generating unit — the Tanker Segment. In 2019, the recoverable amount of the Tanker Segment was based on its value in use. As the value in use exceeded the carrying amount, Management concluded that the impairment test provided the basis for a full reversal of the USD 185m impairment charge recorded in 2016, after excluding the portion of the 2016 charge that related to goodwill and vessels that have been subsequently sold. The impairment reversal has also been capped at USD 120m to ensure that the carrying value of the Tanker Segment does not exceed the carrying value that would have arisen if the 2016 impairment charge had not been recorded. The reversal has arisen primarily due to improvements in prevailing freight rates and a reduction in discount rate. The assessment of the value in use of the Tanker Segment was based on the net present value of the expected future cash flows. The freight rate estimates in the period 2020‑2022 are based on the Company’s business plans. Beyond 2022, the freight rates are based on TORM’s 10‑year historical average rates, adjusted for expected inflation of 2%. The Company believes that the approach used for long-term rates appropriately reflects the cyclical nature of the shipping industry and is the most reliable estimate for periods beyond those included in its 3-year business plan. The Company's business plans for 2020-2022 also include the anticipated benefit arising from the installation of scrubbers on certain of the Group's vessels (the "scrubber premium"), based on current market differentials between the cost of heavy and low sulfur fuel oil. Beyond 2022, it has been assumed that this cost differential will fall by approximately 50%. The discount rate used in the value in use calculation is based on a Weighted Average Cost of Capital (WACC) of 7.5% as of 31 December 2019 (2018: 8.3%, 2017: 8.7%) . 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 2019, the 10-year historical average spot freight rates used in the value in use calculation are as follows: · LR2: USD/day 17,986 (2018: USD/day 18,003, 2017: USD/day 17,216) · LR1: USD/day 17,060 (2018: USD/day 16,907, 2017: USD/day 16,445) · MR: USD/day 15,802 (2018: USD/day 15,349, 2017: USD/day 15,794) · Handysize: USD/day 13,601 (2018: USD/day 13,968, 2017: USD/day 14,416) Operating expenses and administrative expenses are estimated based on TORM’s business plans for the period 2020‑2022. Beyond 2022, operating expenses are adjusted for 2% (2018: 2%) inflation and administrative expenses are adjusted for 2% inflation (2018: 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 15 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, the development in operating expenses and the long-term scrubber premium. All other things being equal, the sensitivities to the value in use have been assessed as follows: · An increase/decrease in the tanker freight rates of USD/day 1,000 would result in an increase/decrease in the value in use of USD 257m · An increase in WACC of 1.0% would result in a decrease in the value in use of USD 117m and a decrease in WACC of 1% would result in an increase in the value in use of USD 131m · An increase/decrease in operating expenses of 10.0% would result in a decrease/increase in the value in use of USD 181m · An increase/decrease in the long-term (post 2022) scrubber premium to 75%/25% of the amount assumed in 2020-2022 would result in an increase/decrease in the value in use of USD 73m. However, if the downside sensitivities outlined above had been applied to the impairment test as of 31 December 2019, the impairment reversal arising in the current year would still have been USD 71m based on the fair value less costs to sell of the Tanker Segment. If the upside sensitivities outlined above had been applied, there would have been no change to the impairment reversal as it has already been capped at USD 120m for the reasons outlined above. 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 fair value based on broker values of TORM’s vessels including the order book and chartered-in vessels was USD 1,785m, which is USD 71m above the carrying amount. |
FINANCIAL ITEMS
FINANCIAL ITEMS | 12 Months Ended |
Dec. 31, 2019 | |
FINANCIAL ITEMS | |
FINANCIAL ITEMS | NOTE 9 – FINANCIAL ITEMS USDm 2019 2018 2017 Financial income Interest income from cash and cash equivalents, including restricted cash 1) 2.5 2.7 1.6 Exchange rate adjustments, including gain from forward exchange rate contracts 0.3 0.6 2.7 Total 2.8 3.3 4.3 Financial expenses Interest expenses on mortgage and bank debt 1) 39.3 35.7 33.3 Exchange rate adjustments, including loss from forward exchange rate contracts 0.2 0.1 3.2 Commitment fee 1.9 2.6 2.4 Other financial expenses 0.5 0.9 1.7 Total 41.9 39.3 40.6 Total financial items (39.1) (36.0) (36.3) 1) Interest for financial assets and liabilities not at fair value through profit and loss. |
FREIGHT RECEIVABLES
FREIGHT RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
FREIGHT RECEIVABLES | |
FREIGHT RECEIVABLES | NOTE 10 – FREIGHT RECEIVABLES USDm 2019 2018 2017 Analysis as of 31 December of freight receivables: Gross freight receivables: Not yet due 39.8 44.0 25.5 Due < 30 days 22.5 18.8 26.0 Due between 30 and 180 days 25.3 20.5 18.4 Due > 180 days 6.0 4.4 2.7 Total gross 93.6 87.7 72.6 Allowance for expected credit loss 3.7 1.7 1.3 Total net 89.9 86.0 71.3 As of 31 December 2019, freight receivables included receivables at a value of USD 0.0m (2018: USD 0.0m 2017: USD 0.0m) that are individually determined to be impaired to a value of USD 0.0m (2018: USD 0.0m, 2017: USD 0.0m). Management makes allowance for expected credit loss based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. Expected credit loss for receivables overdue more than 180 days is 25%-100%, depending on category. Expected credit loss for receivables overdue more than one year is 100%. Movements in provisions for impairment of freight receivables during the year are as follows: USDm 2019 2018 2017 Allowance for expected credit loss Balance as of 1 January 1.7 1.3 2.6 Adjustment to prior years 1.5 — — Provisions for the year 2.4 1.7 0.6 Provisions reversed during the year (1.9) (1.0) (1.9) Provisions utilized during the year — (0.3) — Balance as of 31 December 3.7 1.7 1.3 Allowance for expected credit loss of freight receivables have been recognized in the income statement under "Port expenses, bunkers and commissions". Allowance for expected credit loss of freight receivables is calculated using an ageing factor as well as a specific customer knowledge and is based on a provision matrix on days past due. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER RECEIVABLES | |
OTHER RECEIVABLES | NOTE 11 – OTHER RECEIVABLES USDm 2019 2018 Partners and commercial managements 1.9 — Derivative financial instruments 0.5 3.7 Tax receivables 1.5 1.2 Other 2.3 2.6 Balance as of 31 December 6.2 7.5 No significant other receivables are past due or credit impaired. The carrying amount is a reasonable approximation of fair value due to the short-term nature of the receivables. Please refer to note 21 for further information on fair value hierarchies. |
TAX
TAX | 12 Months Ended |
Dec. 31, 2019 | |
TAX | |
TAX | NOTE 12 – TAX USDm 2019 2018 2017 Tax for the year Current tax for the year 1.2 1.0 Adjustments related to previous years (0.4) (0.1) (0.1) Adjustment of deferred tax liability — (0.1) Total 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, as 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 · A rate applicable to the specific net tonnage of the vessel based on a sliding scale Due to the provisions of the Danish tonnage tax scheme, the effective tax rate of the Group is 0.5% (2018: 4.7%, 2017: 24.4 %). USDm 2019 2018 2017 Deferred tax liability Balance as of 1 January 45.0 Deferred tax for the year — (0.1) Adjustments related to previous years — (0.1) — Balance as of 31 December Essentially all deferred tax relates to vessels included in the transition account under the Danish tonnage tax scheme at the time of entering this scheme. This is to be paid only if TORM discontinues 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 AND TREASURY SHAR
COMMON SHARES AND TREASURY SHARES | 12 Months Ended |
Dec. 31, 2019 | |
COMMON SHARES AND TREASURY SHARES | |
COMMON SHARES AND TREASURY SHARES | NOTE 13 – COMMON SHARES AND TREASURY SHARES Common shares 2019 2018 2017 Number of shares Number of shares Number of shares A-shares 74,748,248 74,218,846 62,298,846 B-shares 1 1 1 C-shares 1 1 1 Total 74,748,250 74,218,848 62,298,848 The A-shares are listed on Nasdaq OMX Copenhagen and Nasdaq in New York and are publicly available for trading. Each A-share carries one vote at the general meeting and gives the shareholders 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 3. Treasury shares 2019 2018 2017 Number of shares (‘000) Balance as of 1 January 312.9 312.9 Additions — — — Cancellations — — — Disposals — — — Balance as of 31 December 312.9 312.9 Treasury shares - continued 2019 2018 2017 Nominal value USD ‘000 Balance as of 1 January 3.1 3.1 Additions — — — Cancellations — — — Disposals — — — Balance as of 31 December 3.1 3.1 Percentage of share capital Balance as of 1 January % % % Additions — — 0.0 % Cancellations — — 0.0 % Disposals — — — Dilution, due to capital increases — (0.1) % 0.0 % Balance as of 31 December % % % The total consideration for the treasury shares was USD 0.0m (2018: USD 0.0m, 2017: USD 0.0m). As of 31 December 2019, the Company’s holding of treasury shares represented 312,871 shares (2018: 312,871 shares, 2017: 312,871 shares) of USD 0.01 each at a total nominal value of USD 0.0m (2018: USD 0.0m, 2017: USD 0.0m) and a market value of USD 3.5m (2018: USD 2.1m, 2017: USD 2.7m). |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 14 – OTHER LIABILITIES USDm 2019 2018 Partners and commercial managements 0.5 Accrued operating expenses 14.1 Accrued interest 4.0 Wages and social expenses 14.3 Derivative financial instruments 12.3 Payables to joint ventures 0.1 Other 2.0 Balance as of 31 December 47.3 The carrying amount is a reasonable approximation of fair value due to the short-term nature of the receivables. 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, 2019 | |
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS | |
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS | NOTE 15 - EFFECTIVE INTEREST RATE, OUTSTANDING BORROWINGS As of 31 December 2019, no drawdowns had been made on the Working Capital Facility or the KfW Facility. Please refer to note 2 for further information on the Company’s liquidity and capital resources and notes 20 and 21 for further information on interest rate swaps and financial risks. 2019 2018 2017 Fixed/ Effective Carrying Effective Carrying Effective Carrying USDm floating Maturity interest 1) value 2) Maturity interest 1) value 2) Maturity interest 1) value 2) BORROWINGS DSF Facility 1 (USD) Floating % 50.0 % 64.1 % TFA Facility 1 (USD) 3) Floating % 6.0 % 331.3 5.0 % DSF Facility 2 (USD) Floating % % 5.0 % DSF Facility 3 (USD) Floating % % % TFA Facility 2 (USD) 3) Floating % % 103.7 % 115.0 ING (USD) 3) Floating % % 42.0 % CEXIM (USD) Floating % 104.0 % — — — ABN AMRO (USD) 3) Floating % — — — — — — DSF Facility 4 (USD) Floating % — — — — — — Bocomm (USD) Floating % — — — — — — Springliner (USD) Fixed % % % Eifuku (USD) Floating % — — — — — — Showa (USD) Floating % — — — — — — Weighted average effective interest rate % % % Carrying value Hereof non-current 4) 756.0 Hereof current 4) 1) Effective interest rate includes deferred and amortized bank fees. 2) Because of the floating interest rate, the carrying value of the Group's borrowings is approximately equal to the fair value. The carrying value is excluding capitalized bank fees recognized in the balance sheet as well as lease liabilities regarding right-of-use assets recognized under Land and buildings and Other plant and equipment. ³⁾ Refinanced on 6 February 2020 ⁴⁾ Split between current and non-current is based on terms in effect as of 31 December, without consideration to the refinancing taking place in 2020. The table below shows the effective interest and the value of the outstanding mortgage debt and bank loans. |
COLLATERAL SECURITY FOR BORROWI
COLLATERAL SECURITY FOR BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
COLLATERAL SECURITY FOR BORROWINGS | |
COLLATERAL SECURITY FOR BORROWINGS | NOTE 16 – COLLATERAL SECURITY FOR BORROWINGS The total carrying amount for vessels that have been provided as security amounts to USD 1,675m as of 31 December 2019 (2018: USD 1,314m), including transferred ownership under sale and leaseback arrangements, where the vessels are not derecognized and where vessels are provided as security for the leasing financing. Please refer to note 1 for further information. |
GUARANTEE COMMITMENTS AND CONTI
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES | |
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 17 – GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES The guarantee commitments of the Group are less than USD 0.1m (2018: USD 0.1m) and relate to guarantee commitments to Danish Shipping Finance. 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. 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. |
CONTRACTUAL RIGHTS AND OBLIGATI
CONTRACTUAL RIGHTS AND OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
CONTRACTUAL RIGHTS AND OBLIGATIONS | |
CONTRACTUAL RIGHTS AND OBLIGATIONS | NOTE 18 – CONTRACTUAL RIGHTS AND 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 Group’s contractual obligations as of 31 December 2019. USDm 2020 2021 2022 2023 2024 Thereafter Total Borrowings 1) 2) 101.2 326.9 119.5 30.8 82.8 202.2 863.4 Interest payments related to scheduled interest fixing 33.8 25.4 13.1 10.0 8.0 6.9 97.2 Estimated variable interest payments 3) 4.3 6.7 4.4 3.6 3.5 11.6 34.1 Newbuilding installments 4) 51.2 — — — — — 51.2 Committed scrubber installations 32.0 — — — — — 32.0 Trade payables and other obligations 76.3 — — — — — 76.3 Total 298.8 359.0 137.0 44.4 94.3 220.7 1,155.2 1) The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 8.0m (2018: USD 5.1m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 5.8m (2018: USD 1.1m). 2) Borrowings include contractual obligations relating to lease liabilities arising from land and buildings and other plant and operating equipment amounted to USD 8.7m (2018: USD 0.0m), and the contractual value of lease liabilities relating to vessels and capitalized dry-dockings amounted to USD 21.9m (2018: USD 25.3m). For further detail please refer to note 7. 3) Variable interest payments are estimated based on the forward rates for each interest period including hedging instruments. The following table summarizes the reconciliation of liabilities arising from financing activities: Cash Non-cash Opening End balance as balance as of 1 Other of 31 USDm January 2019 Borrowings Repayments changes 1) December 2019 Borrowings 749.6 261.8 (169.2) 13.2 855.4 Total 749.6 261.8 (169.2) 13.2 855.4 ¹⁾ Primarily due to implementation of IFRS 16. Cash Non-cash Opening End balance as balance as of 1 Other of 31 USDm January 2018 Borrowings Repayments changes December 2018 Borrowings 749.1 114.5 (113.7) (0.3) 749.6 Total 749.1 114.5 (113.7) (0.3) 749.6 TORM has contractual rights to receive future payments as lessor of vessels on time charter and bareboat charter. The following table summarizes the Group’s contractual rights as of 31 December 2019. USDm 2020 2021 2022 2023 2024 Thereafter Total Contractual rights - as lessor: Charter hire income for vessels 5) 12.6 1.1 — — — — 13.7 Total 12.6 1.1 — — — — 13.7 5) Charter hire income for vessels on time charter and bareboat charter is recognized under "Revenue". The average period until redelivery of the vessels for the period ended 31 December 2019 is 1.0 year (2018: 0.8 year). |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 19 – DERIVATIVE FINANCIAL INSTRUMENTS Please refer to note 21 “Financial Instruments” for further information on fair value hierarchies. USDm 2019 2018 Fair value of derivatives: Derivative financial instruments regarding freight and bunkers: Forward freight agreements (0.3) 0.5 Bunker swaps — (1.2) Derivative financial instruments regarding interest and currency exchange rate: Forward exchange contracts (0.4) (1.8) Interest rate swaps (11.1) 2.8 Fair value of derivatives as of 31 December (11.8) 0.3 Derivative financial instruments are presented as below on the balance sheet: Financial Financial USDm assets liabilities 2019 Offsetting financial assets and financial liabilities: Gross amount 0.7 (12.5) Offsetting amount (0.2) 0.2 Net amount presented on the balance sheet 0.5 (12.3) Financial Financial USDm assets liabilities 2018 Offsetting financial assets and financial liabilities: Gross amount 7.1 (6.8) Offsetting amount (3.4) 3.4 Net amount presented on the balance sheet 3.7 (3.4) Hedging of risks with derivative financial instruments are made with a ratio of 1:1. Sources of ineffectiveness are mainly derived from differences in timing and credit risk adjustments. Any ineffective portions of the cash flow hedges are recognized in the income statement as financial items. Value adjustments of the effective part of cash flow hedges are recognized directly in comprehensive income. Gains and losses on cash flow hedges are upon realization transferred from the equity hedging reserve into the income statement. TORM held at year end 2019 and 2018 the following derivative financial instruments designated as hedge accounting: Hedge accounting Expected maturity 2019 Notional value Unit 2020 2021 After 2021 Forward exchange contracts (USD/DKK) ¹⁾ 222.5 DKKm 222.5 — — Interest rate swaps ²⁾ 597.8 USDm 120.5 239.5 237.8 Bunker swaps ³⁾ 4,725 MT 4,725 — — 1) The average hedge of USD/DKK currency was 6,5. 2) The average interest rate was 2.33% plus margin. 2 ) The average price of the hedging instruments was USD 652.0. Hedge accounting Expected maturity 2018 Notional value Unit 2019 2020 After 2020 Forward exchange contracts (USD/DKK) ¹⁾ 250.0 DKKm 250.0 — — Interest rate swaps ²⁾ 512.8 USDm 46.6 160.9 305.3 Bunker swaps 3) 10,400 MT 10,400 — — 1) The average hedge of USD/DKK currency was 6,5. 2) The average interest rate was 2.04% plus margin. 3) The average price of the hedging instruments was USD 413.7. Interest rate swaps with a fair value of USD 11.1m (net loss) are designated as hedge accounting relationships to fix a part of TORM’s interest payments during the period 2020‑2026 with a notional value of USD 597.8m (2018: USD 512.8m, 2017: USD 406.4m). The derivatives are not under central clearing but are settled on a bilateral basis with the counterparties. All contracts are settled in a net amount per counterparty, and therefore the net value per counterparty is presented in the financial statement. Cash collateral of USD 13.0m (2018: USD 3.5m) has been provided as security for the agreements relating to derivative financial instruments, which does not meet the offsetting criteria in IAS 32, but it can be offset against the net amount of the derivative asset and derivative liability in case of default and insolvency or bankruptcy in accordance with associated collateral arrangements. TORM did not enter into any enforceable netting arrangements. Further details on derivative financial instruments are provided in note 20 and note 21. Forward freight agreements of USD 0.4m (net gain) have been recognized in the income statement in 2019 (2018: USD -2.1m, 2017: USD 0.5m). FFAs are used to mitigate fluctuations in the freight rates of vessels with a duration of 0–36 months. The FFAs are not designated for hedge accounting. Bunker swap agreements of USD 0.1m (net loss) have been recognized in the income statement in 2019 (2018: USD 1.1m, 2017: USD 1.2m). Bunker swaps with a duration similar to the period hedged are used to reduce the exposure to fluctuations in bunker prices for fixed voyages. Bunker swap agreements are designated as hedge accounting when appropriate. Forward exchange contracts with a fair value of USD -0.4m (net loss) are designated as hedge accounting relationships to hedge a part of TORM’s payments in 2020 regarding administrative and operating expenses denominated in DKK with a notional value of DKK 222.5m (2018: DKK 250.0m, 2017: DKK 257.0m). The table below shows realized amounts as well as fair value adjustments regarding derivative financial instruments recognized in the income statements and equity in 2019, 2018 and 2017. Other comprehensive Income statement income 1) Equity 2) Port Hedging expenses, reserves bunkers and Operating Administra-tive Adjustment to as of 31 USDm Revenue commissions Financial items expenses expenses hedging reserve December 2019 Forward freight agreements 0.4 — — — — (0.5) — Bunker swaps — (0.1) — — — 0.9 (0.3) Forward exchange contracts — — — (2.0) (1.5) 1.4 (0.4) Interest rate swaps — — 2.1 — — (13.8) (11.1) Total 0.4 (0.1) 2.1 (2.0) (1.5) (12.0) (11.8) 2018 Forward freight agreements (2.1) — — — — 0.9 0.5 Bunker swaps — 1.1 — — — (2.0) (1.2) Forward exchange contracts — — — 0.1 0.2 (3.7) (1.8) Interest rate swaps — — 1.0 — — (2.3) 2.8 Total (2.1) 1.1 1.0 0.1 0.2 (7.1) 0.3 2017 Forward freight agreements 0.5 — — — — (0.3) (0.4) Bunker swaps — 1.2 — — — — 0.8 Forward exchange contracts — — — 0.3 0.2 4.4 1.8 Interest rate swaps — — (3.4) — — 2.7 5.1 Total 0.5 1.2 (3.4) 0.3 0.2 6.8 7.3 1) Fair value adjustments on hedging instruments added to the hedging reserves for interest rate swaps, are for 2019 USD -11.7m, for 2018 USD -1,3m and for 2017 USD -0.7m. 2 ⁾ The hedging reserves as of 31 December of the derivatives used for cash flow hedge are equal to the entire fair value of the hedge instruments as no ineffectiveness has been identified and the reserve includes open hedge instruments only. 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, 2019 | |
RISKS ASSOCIATED WITH TORM'S ACTIVITIES | |
RISKS ASSOCIATED WITH TORM'S ACTIVITIES | NOTE 20 – RISKS ASSOCIATED WITH TORM’S ACTIVITIES TORM’s overall risk tolerance and inherited exposure to risks is divided into four main categories: · Long-term strategic risks · Industry and market-related risks · Operational and compliance risks · Financial risks The risks described below 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. Please refer to note 8 for details on impairment testing. 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 derivative 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. During 2019, 9.5% (2018: 13.1%; 2017: 12.5%) of earning days equal to 25.707 deriving from the Company’s tankers was hedged in this way. Physical time charter contracts accounted for 59.3% (2018: 62.8%; 2017: 60.7%) of overall hedging. In 2019, the Company sold FFAs with a notional contract value of USD 34.9m (2018: USD 39.6m; 2017: USD 44.2m) and bought FFAs with a notional contract value of USD 22.5m (2018: USD 18.8m; 2017: USD 12.2m). The total notional contract volume sold in 2019 was 1,585,190 metric tons (2018: 2,683,000 metric tons; 2017: 1,754,000 metric tons), and the total notional volume bought was 1,295,000 metric tons (2018: 1,447,000 metric tons; 2017: 530,000 metric tons). At the end of 2019, the coverage of available earning days for 2020 was 8.6% through time charters, current spot voyages, cargo contracts and FFAs (2018: 9.9%; 2017: 13.3%). No FFA had maturity beyond 2020. 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 changes in profit before tax based on the expected number of earning days for the coming financial year: Sensitivity to changes in freight rates USDm 2020 2019 2018 Decrease in freight rates of USD/day 1,000: Changes in profit/loss before tax for the following year (25.4) (25.3) (24.1) Changes in equity for the following year (25.4) (25.3) (24.1) 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 2019, the carrying value of the fleet was USD 1,674.8m (2018: USD 1,396.5m). Based on broker valuations, TORM’s fleet excluding undelivered newbuildings had a market value of USD 1,632.6m as of 31 December 2019 (2018: USD 1,322.1m). Bunker price fluctuations The cost of fuel oil consumed by the vessels, known in the industry as bunkers, accounted for 61.1% (2018: 60.8%; 2017: 55.3%) of the total voyage costs in 2019 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 in its entirety for all risks. 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. In 2019, 6.5% (2018: 4.8%; 2017: 3.3%) of TORM’s bunker purchase was hedged through bunker hedging contracts. At the end of 2019, TORM had covered 2.6% equal to 13,590 metric tons (2018: 2.0%; 2017: 2.1%) of its bunker requirements for 2020 using hedging instruments at an average price of 398. No bunker derivatives had maturity beyond 2020. Total bunker exposure is estimated to be approximately 529,852 metric tons. 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 changes in expenditure based on the expected bunker consumption in the spot market: Sensitivity to changes in the bunker price USDm 2020 2019 2018 Increase in the bunker prices of 10% per ton: Changes in profit/loss before tax for the following year (19.8) (20.7) (18.3) Changes in equity for the following year (19.8) (20.7) (18.3) 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 if 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 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 2019, the aggregate insured value of hull and machinery and interest for TORM’s owned vessels amounted to USD 1.8bn (2018: USD 1.5bn; 2017: USD 1.4bn). 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. This characterizes the method for identifying the market value of a derivative instruments. 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 situation are brought to Management’s attention. The Company’s counterparty risks are primarily associated with: · Receivables, cash and cash equivalents, including restricted cash · Contracts of affreightment with a positive fair value · Derivative financial instruments and commodity instruments with positive fair value Receivables, cash and cash equivalents, including restricted cash 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. In 2019, no customer accounted for more than 10% of the Company’s freight revenues (2018: one customer accounted for 17%; 2017: none). 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, 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 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 original demurrage claimed, the Company’s average stands at 98.7% (2018: 98.1%; 2017: 97.0%), which is considered to be satisfactory given the differences in interpretation of events. In 2019, demurrage represented 13.1% (2018: 13.3%; 2017: 13.2%) of the total freight revenues. Please see note 1 for more details on recognition of demurrage claim into revenue. 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 2019, 100.0% (2018: 100.0%; 2017: 100.0%) of TORM’s forward freight agreements (FFAs) were cleared through clearing houses, 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 is denominated in currencies other than USD accounts for approximately 98.3% (2018: 98.3%; 2017: 97.9%) for administrative expenses and approximately 20.1% (2018: 23.4%; 2017: 24.5%) for operating expenses. TORM’s expected administrative and operating expenses in DKK and EUR for 2020 are approximately DKK 353.1m, whereof 63.0% (2018: 64.1%; 2017: 62.0%) are hedged through FX forward contracts. All FX forward contracts have maturity within 2020, and TORM’s average hedge USD/DKK currency rate is 6.5. FX exposure is hedged in its entirety for all risks. 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/loss before tax and equity as follows: USDm 2020 2019 2018 Effect of a 10% increase of DKK and EUR: Changes in profit/loss before tax for the following year (2.0) (2.1) (2.5) Changes in equity for the following year (2.0) (2.1) (2.5) Interest rate risk TORM’s interest rate risk generally relates to interest-bearing borrowings. All the Company’s loans for financing vessels are denominated in USD. Please refer to note 15 for additional information on borrowings. At the end of 2019, TORM has fixed 72.9% of the interest exposure for 2020 equal to a total interest expense exposure of USD 37.4m (2018: 66.2%; 2017: 63.2%). As of 31 December 2019, TORM has interest rate hedges covering and with maturity in the period 2020-2026 with a notional value of USD 597.8m, hedged at an interest rate of 2.33% plus margin. Interest exposure is hedged in its entirety for all risks. Most of TORM’s debt and interest hedging is based on US LIBOR which is set to expire by the end of 2021. While it is not yet clear which reference rate will replace LIBOR after 2021, trade organizations such as the LMA and ISDA are working with the market, each other and regulators on the transition of LIBOR. As the expiration of LIBOR affects money market transactions worth trillions of dollars and preparations are being made by leading trade organizations, a smooth transition with insignificant risk to TORM is expected. TORM continues to monitor the progress of the negotiations towards a new reference rate. 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 2020 2019 2018 Effect of a 1%-point increase in interest rates: Changes in profit/loss before tax for the following year (3.0) (2.4) (3.2) Changes in equity for the following year 7.9 8.0 3.6 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 2019, TORM’s loan portfolio was spread across ten different banks. As of 31 December 2019, TORM maintains a liquidity reserve of USD 72m 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, 2019 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | NOTE 21 – FINANCIAL INSTRUMENTS Quoted Observable Unobservable Financial instruments Financial instruments prices input input measured at measured at Total Categories of financial assets and liabilities (USDm): (level 1) (level 2) (level 3) fair value amortized cost carrying value 2019: Financial assets Loan receivables — — — — 4.6 4.6 Freight receivables — — — — 89.8 89.8 Other receivables — 0.5 — 0.5 5.7 6.2 Cash and cash equivalents, including restricted cash — — — — 72.5 72.5 Total — 0.5 — 0.5 172.6 173.1 Financial liabilities Borrowings ¹⁾ ²⁾ — — — — 855.4 855.4 Trade payables — — — — 47.1 47.1 Other liabilities — 12.3 — 12.3 35.0 47.3 Total — 12.3 — 12.3 937.5 949.8 2018: Financial assets Freight receivables — — — — 86.0 86.0 Other receivables — 3.7 — 3.7 3.8 7.5 Cash and cash equivalents, including restricted cash — — — — 127.4 127.4 Total — 3.7 — 3.7 217.2 220.9 Financial liabilities Borrowings ¹⁾ ²⁾ — — — — 749.6 749.6 Trade payables — — — — 35.1 35.1 Other liabilities — 3.4 — 3.4 33.1 36.5 Total — 3.4 — 3.4 817.8 821.2 1) Due to the short maturity, the carrying value is considered to be an appropriate expression of the fair value. 2) See note 15. ³⁾ Derivative financial instruments are presented within the balance sheet line Other receivables and Other liabilities. 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 please find 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. and compared to financial counterparties to ensure acceptable valuations. 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, 2019 | |
RELATED PARTY TRANSACTIONS | |
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. Dividends to related parties are paid out on the basis of the related parties' ownership of shares. The remuneration of key management personnel, which consists of the Board of Directors and the Executive Director, is disclosed in note 3. During 2019, TORM did transactions with its joint venture producing scrubbers for the TORM fleet amounting to USD 26.1m in total. The joint venture will continue to assist TORM in installing scrubbers in 2020. |
ASSETS HELD FOR SALE AND NON-CU
ASSETS HELD FOR SALE AND NON-CURRENT ASSETS SOLD DURING THE YEAR | 12 Months Ended |
Dec. 31, 2019 | |
ASSETS HELD FOR SALE AND NON-CURRENT ASSETS SOLD DURING THE YEAR | |
ASSETS HELD FOR SALE AND NON-CURRENT ASSETS SOLD DURING THE YEAR | NOTE 23 – ASSETS HELD FOR SALE AND NON-CURRENT ASSETS SOLD DURING THE YEAR During 2019, TORM sold eight vessels, of which seven were delivered to the new owners during 2019, and one vessel was delivered in Q1 2020 (presented as “assets held for sale” as of 31 December 2019). The sales resulted in a profit from sale of vessels of USD 1.2m and impairment losses on tangible assets of USD 6.0m. During 2019, TORM sold eight vessels that were leased back to TORM and which have not been derecognized and where the proceeds provided of USD 157.8m have been presented as financial liabilities. During 2018, TORM sold four vessels, of which three were delivered to the new owners during 2018, and one vessel was delivered in Q1 2019 (presented as “assets held for sale” as of 31 December 2018). The sales resulted in a profit from sale of vessels of USD 0.8m and an impairment loss on tangible assets of USD 3.2m. During 2017, TORM sold eight vessels, of which four were delivered to the new owners during 2017, one vessel was 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. The sales resulted in a profit from sale of vessels of USD 2.8m and a total impairment loss on sold or held-for-sale vessels of USD 3.6m. |
CASH FLOWS
CASH FLOWS | 12 Months Ended |
Dec. 31, 2019 | |
CASH FLOWS | |
CASH FLOWS | NOTE 24 – CASH FLOWS USDm 2019 2018 2017 Reversal of other non-cash movements: Exchange rate adjustments (0.9) — 1.8 Share-based payments 1.9 2.0 1.9 Other adjustments (0.1) — — Total 0.9 2.0 3.7 USDm 2019 2018 2017 Change in bunkers, receivables and payables: Change in bunkers 5.1 (6.2) (1.6) Change in receivables (2.5) (10.4) (12.4) Change in prepayments (0.7) 1.5 (1.4) Change in trade payables and other liabilities 22.8 11.7 (1.6) Other changes (0.8) (2.2) (2.9) Adjusted for fair value changes of derivative financial instruments (12.0) (7.1) 6.9 Total 11.9 (12.7) (13.0) |
ENTITIES IN THE GROUP
ENTITIES IN THE GROUP | 12 Months Ended |
Dec. 31, 2019 | |
ENTITIES IN THE GROUP | |
ENTITIES IN THE GROUP | NOTE 25 – ENTITIES IN THE GROUP Entity Country TORM plc United Kingdom Investments in subsidiaries 6) : Entity Country Ownership 5) TORM A/S Denmark 100 % DK Vessel HoldCo GP ApS Denmark 100 % DK Vessel HoldCo K/S Denmark 100 % OCM (Gibraltar) Njord Midco Ltd 4) Gibraltar 100 % OCM Njord Chartering Inc 4) Marshall Islands 100 % OCM Singapore Njord Holdings Agnes, Pte. Ltd 3) 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 3) Singapore 100 % OCM Singapore Njord Holdings Aslaug, Pte. Ltd 3) 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 Gorm Pte. Ltd 3) Singapore 100 % OCM Singapore Njord Holdings Knut Pte. Ltd 3) Singapore 100 % OCM Singapore Njord Holdings Valdemar Pte. Ltd 3) 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 3) Singapore 100 % OCM Singapore Njord Holdings Arawa Pte. Ltd 3) Singapore 100 % OCM Singapore Njord Holdings Leif Pte. Ltd 3) Singapore 100 % OCM Holdings Mrs Inc. 4) Marshall Islands 100 % OCM Njord Anne Inc. 4) Marshall Islands 100 % OCM Njord Freya Inc. 4) Marshall Islands 100 % OCM Njord Gerd Inc. 4) Marshall Islands 100 % OCM Njord Gertrud Inc. 4) Marshall Islands 100 % OCM Njord Gunhild Inc. 4) Marshall Islands 100 % OCM Njord Helene Inc. 4) Marshall Islands 100 % OCM Njord Helvig Inc. 4) Marshall Islands 100 % OCM Njord Ingeborg Inc. 4) Marshall Islands 100 % OCM Njord Mary Inc. 4) Marshall Islands 100 % OCM Njord Ragnhild Inc. 4) Marshall Islands 100 % OCM Njord Thyra Inc. 4) Marshall Islands 100 % OCM Njord Valborg Inc. 4) Marshall Islands 100 % OCM Njord Vita Inc. 4) Marshall Islands 100 % OMI Holding Ltd. Mauritius 100 % TORM Crewing Service Ltd. Bermuda 100 % TORM Shipping India Private Limited India 100 % TORM Singapore Pte. Ltd. Singapore 100 % TORM USA LLC USA 100 % VesselCo 1 K/S Denmark 100 % VesselCo 3 K/S Denmark 100 % VesselCo 5 K/S 1) Denmark 100 % VesselCo 6 K/S 2) Denmark 100 % VesselCo 6 Pte. Ltd. Singapore 100 % VesselCo 7 Pte. Ltd. Singapore 100 % VesselCo 8 Pte. Ltd. Singapore 100 % VesselCo 9 Pte. Ltd. Singapore 100 % VesselCo 10 Pte. Ltd. Singapore 100 % VesselCo 11 Pte. Ltd. Singapore 100 % VesselCo 12 Pte. Ltd. 1) Singapore 100 % TORM SHIPPING (PHILS.), INC. Philippines 25 % VesselCo A ApS Denmark 100 % VesselCo C ApS Denmark 100 % VesselCo E ApS 1) Denmark 100 % VesselCo F ApS 2) Denmark 100 % 1) Entities added in the financial year ended 31 December 2017. 2) Entities added in the financial year ended 31 December 2018. 3 ) Entities dissolved in the financial year ended 31 December 2017. 4 ) Entities dissolved in the financial year ended 31 December 2018. 5 ) For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.), INC where voting rights are 100%. 6 ) 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 Hong Kong c/o Estera Services 57/63 Line Wall Road Room A, 7/F (Bermuda Limited) GX11 1AA China Overseas Bldg. Canon’s Court Gibraltar 139 Hennessy Road 22 Victoria Street Wanchai PO Box 1624 Hong Kong Hamilton HM GX Bermuda Interest in legal entities included as joint ventures: 2019 Profit and loss from Other compre- Total compre- continuing hensive hensive Entity (USDm) Country % Control operations income income Long Range 2 A/S Denmark 50 % — — — LR2 Management K/S Denmark 50 % — — — Marine Exhaust Technology Ltd. Hong Kong 28 % 3.4 — 3.4 For registered addresses, please refer to the table above. |
EARNINGS PER SHARE AND DIVIDEND
EARNINGS PER SHARE AND DIVIDEND PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE AND DIVIDEND PER SHARE | |
EARNINGS PER SHARE AND DIVIDEND PER SHARE | NOTE 26 – EARNINGS PER SHARE AND DIVIDEND PER SHARE 2019 2018 2017 EARNINGS PER SHARE Net profit/(loss) for the year (USDm) 166.0 (34.8) 2.4 Million shares Weighted average number of shares 74.3 73.4 62.3 Weighted average number of treasury shares (0.3) (0.3) (0.3) Weighted average number of shares outstanding 74.0 73.1 62.0 Dilutive effect of outstanding share options 0.0 — — Weighted average number of shares outstanding incl. dilutive effect of share options 74.0 73.1 62.0 Basic earnings/(loss) per share (USD) 2.24 (0.48) 0.04 Diluted earnings/(loss) per share (USD) 2.24 (0.48) 0.04 When calculating diluted earnings per share for 2018 and 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 3 for information on the RSU share options. 2019 2018 2017 DIVIDEND PER SHARE Dividend for the year (USDm) 7.4 — 1.2 Number of shares, end of period (million) 74.7 74.2 62.3 Dividend per share 0.10 — 0.02 The Board of Directors has decided to recommend a dividend of USD 7.4m, equivalent to USD 0.10 per share, for approval at the AGM on 15 April 2020. |
ACCOUNTING POLICIES, CRITICAL_2
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | |
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 all the following: · Power over the investee · Exposure, or rights, to variable returns from its involvement with the investee · The ability to use its power over the investee to affect the amounts of the investor’s 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 · 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. |
Foreign currencies | Foreign currencies The functional currency of all significant entities, including subsidiaries and associated companies, is United States dollars (USD), because the Company’s vessels operate in international shipping markets, in which income and expenses are settled in USD, and because the Company’s 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”. 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 rate for the year, whereas balance sheet items are translated at the exchange rate as of the balance sheet date. Exchange differences arising from the translation of financial statements into USD are recognized as a separate component in "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 and hedge accounting | Derivative financial instruments and hedge accounting Derivative financial instruments, primarily forward currency exchange contracts, forward freight agreements, interest rate hedges and forward contracts regarding bunker purchases, are entered into to eliminate risks relating to future fluctuations in prices and interests, etc. on future committed or anticipated transactions. TORM applies hedge accounting under the specific rules on cash flow hedges when appropriate as described below for each type of derivative. 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, 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. 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 and certain forward freight agreements and forward contracts regarding bunker purchases do not qualify for hedge accounting. Changes in fair value of these derivative 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 The segmentation is based on the Group’s internal management and reporting structure. The Group only has one reportable segment, the Tanker Segment, for which 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. |
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 TORM assesses whether a contract is or contains a lease at inception of the contract and recognizes right-of-use assets and corresponding lease liabilities at the lease commencement date, except for short-term leases and leases of low value. For these leases, TORM recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Agreements to charter in vessels and to lease land and buildings and other plant and operating equipment for which TORM substantially has the control are recognized on the balance sheet as right-of-use assets and initially measured cost, which comprises the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date. Subsequently the right-of-use assets are measured at cost less accumulated depreciation and impairment losses. The right-of-use 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 under "Borrowings" and initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, in case that rate cannot be determined, TORM's incremental borrowing rate. Subsequently lease liabilities are measured at amortized cost using the effective interest method, where the lease liabilities are remeasured when there is a change in future lease payments. Sale and leaseback Following a sale transaction, agreements to immediately charter-in the related vessels (sale and leaseback) but for which TORM maintains substantially all the risks and rewards incidental to economic ownership, the proceeds received are presented as a financial liability in "Borrowings". No gain or loss is recorded, and the asset remains recognized on the balance sheet. |
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. Revenue is recognized when or as performance obligations are satisfied by transferring the promised goods or services to the customer, i.e. at a point in time or over time provided that the stage of completion can be measured reliably. Revenue is measured at the consideration the Group expects to be entitled to. The completion is determined using the load-to-discharge method based on the percentage of the estimated duration of the voyage completed at the reporting date. Freight revenue and related voyage and operating costs are recognized in the income statement according to the entered charter parties from the date of load to the date of delivery of the cargo (discharge). Accordingly, freight, charter hire and demurrage revenue are recognized at selling price upon delivery of the service as specified in the agreement with the charter parties. 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. 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 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. To the extent the costs are recoverable, costs directly attributable to relocate the vessel to the load port are capitalized and amortized over the course of the transportation period. Gains and losses on forward bunker contracts 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. The freight and bunker derivatives that qualify for hedge accounting are recognized in Revenue and Port expense, bunkers and commissions respectively, at the same time as the hedged items are recognized in profit and loss. Fair value adjustments of derivatives that do not qualify for hedge accounting are recognized in the same line when incurred. Charter hire Charter hire comprises expenses related to the chartering in of vessels on short-term agreements under 12 months 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 at the time of delivery to the buyer, representing the difference between the sales price less costs 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 profits and losses deriving from the disposal of fixed assets other than vessels. |
Depreciation and impairment losses and reversals of impairment losses | Depreciation and impairment losses and reversals of 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 costs to sell. Subsequent reversal of impairment losses are recognized if the recoverable amount exceeds the carrying amount to the extent that the carrying amount does not exceed the carrying amount without any historic impairment losses. |
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 payments under interest rate hedge instruments. 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 payments under interest rate hedge instruments. 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. |
Vessels | Vessels Vessels consist of owned vessels and leased vessels. The accounting policy for leased vessels is specified under "Leases" and "Sale and leaseback" above. Owned 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 (scrubbers, etc.) 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 24 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, the 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. Prepayments on vessels Prepayments consist of prepayments related to newbuilding contracts for vessels not yet delivered and include the share of borrowing costs that are directly attributable to the acquisition of the underlying vessel. When a vessel is delivered, the prepaid amount is reallocated to the financial statement line “Vessels and capitalized dry-docking”. Land and buildings and other plant and operating equipment Land and buildings and other plant and operating equipment consist of leaseholds regarding office buildings, leasehold improvements, company cars, IT equipment and software and is measured at historical cost less accumulated depreciation and any impairment loss. Any subsequent cost is included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefits are associated with the item and the cost of the item can be measured reliably. Depreciation is based on the straight-line method over the estimated useful life of the assets. The current estimates are: · Office buildings: Over the shorter of the remaining leasing term and the estimated useful life · Leasehold improvements: Over the shorter of the remaining leasing term and the estimated useful life · Company cars: Over the lease term, typically 3 years · IT equipment: 3-5 years · Software: 3-5 years · Other equipment 3-5 years The depreciation commences when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by Management. For a right-of-use asset, depreciation commences at the commencement date of the lease. |
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. |
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. |
Loan receivables | Loan receivables Loan receivables are initially recognized on the balance sheet as fair value less transaction costs. Subsequent to initial recognition, loan receivables are measured at amortized cost. Amortized cost is defined as the amount initially recognized deducted by principal repayments and allowances for the expected credit loss (ECL). |
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 “Freight receivables” or “Other receivables” and presented as current assets. Receivables are at initial recognition measured at their transaction price less allowance for expected credit losses over the lifetime of the receivable and are subsequenly measured at amortized cost adjusted for changes in expected credit losses. Derivative financial instruments included in other receivables are measured at fair value. |
Expected credit losses | Expected credit losses Expected credit losses at initial recognition are determined using an ageing factor as well as a specific customer knowledge, such as customers’ ability to pay, considering historical information about payment patterns, credit risks, customer concentrations, customer creditworthiness as well as prevailing economic conditions. The estimates are updated subsequently, and if the debtor's ability to pay is becoming doubtful, expected credit losses are calculated on an individual basis. When there are no reasonable expectations of recovering the credit losses, the receivable is written off in part or entirely. |
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 (CGU), 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. The Management in TORM has assessed the inflow of cash in TORM to allocate these into separate cash generating units (CGU). Management has assessed that TORM only has one CGU. 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. |
Bunkers | Bunkers Bunkers and lube oil are stated at the lower of cost and net realizable value. Cost is determined using the FIFO method and includes expenditure incurred in acquiring the bunkers and lube oil and cost of delivery 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 mainly refer to vessels being sold and 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 when 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 model at the grant date. |
Dividend | Dividend Interim dividends are recognized as a liability at the time of declaration. Any year-end dividend is recognized as a liability at the date of approval at the AGM. |
Provisions | Provisions Provisions are recognized when the Group 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 at the balance sheet date. The deferred tax is charged through the income statement except when it relates to other comprehensive income items. |
Borrowings | Borrowings Borrowings consist of mortgage debt, bank loans and lease liabilities. Borrowings, are initially 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. Lease liabilities are measured on the commencement date of the lease at the present value of lease payments to be made over the lease term. The lease term comprises the non-cancellable period of the leasing agreement plus options to extend the lease if the exercise of the extension is reasonably certain. This assessment is made annually. In the calculation of the present value of lease payments, TORM uses the incremental borrowing rate at the date of lease commencement. The carrying amount of lease liabilities is reassessed if there is a change in the lease term. |
Trade payables | Trade payables Trade payables are recognized at the fair value of the item purchased and are subsequently measured at amortized cost. |
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 how income and changes in the balance sheet items affect cash and cash equivalent, i.e. how cash is generated or used in the period. The cash flow statement is presented in accordance with the indirect method commencing with “Net profit/(loss) for the year”. Cash flow from operating activities converts income statement items from the accrual basis of accounting to cash basis. Starting with “Net profit/(loss) for the year”, non-cash items are reversed and actual payments included. Further, the change in working capital is taken into account, as this shows the development in money tied up in the balance sheet. 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 borrowings, purchases or sales of treasury shares and dividend paid to shareholders. Cash and cash equivalents including restricted cash comprise cash and short-term bank deposits with an original maturity of three months or less, net of outstanding bank overdrafts. The carrying amount of these assets is approximately equal to their fair value. Cash and cash equivalents including restricted cash at the end of the reporting period are shown in the consolidated cash flow statement and can be reconciled to the related items in the consolidated balance sheet. The restricted cash balance primarily relates to cash provided as security for negative market values of derivatives and other cash positions. |
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 is the significant accounting estimate used in the preparation of the consolidated financial statements that has a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Management does not believe there were any critical accounting judgements used in the preparation of the consolidated financial statements: Management has assessed that TORM only has one CGU - the product tanker segment - because the vessels in the fleet and the cashflow are largely interchangeable, and the fleet is monitored and managed on an aggregated level as one unit, i.e. each vessel or vessel class does not generate cash inflows that are largely independent of those from other vessels or vessel classes. 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 or indication that past impairment losses should be reversed 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 or reversal of past impairment is identified, the need for recognizing an impairment loss or a recognition of a reversal of a past impairment loss is assessed by comparing the carrying amount of the vessels to the higher of the fair value less costs 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 expenses and capital expenditure including dry-docking costs 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 freight 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 impairment may be required. |
ACCOUNTING POLICIES, CRITICAL_3
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | |
Schedule of reconciliation of lease liabilities pursuant to IFRS 16 on transition | USDm 2019 Total operating lease commitments at 31 December 2018 6.2 Recognition exemptions: Leases of low value assets — Leases with remaining lease term of 12 months or less — Operating lease liabilities before discounting 6.2 Discounted using incremental borrowing rate (0.6) Operating lease liability 5.6 Reasonably certain extension options 4.5 Other adjustments (0.2) Finance lease liabilities recognized under IAS 17 25.3 Total lease liabilities recognized under IFRS 16 at 1 January 2019 35.2 |
STAFF COSTS (Tables)
STAFF COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STAFF COSTS | |
Schedule of staff costs and average number of employees | USDm 2019 2018 2017 Total staff costs Staff costs included in operating expenses 8.1 9.3 9.2 Staff costs included in administrative expenses 37.7 36.9 34.6 Total 45.8 46.2 43.8 Staff costs comprise the following Wages and salaries 37.2 38.1 36.4 Share-based compensation 1.9 2.1 1.9 Pension costs 3.5 3.3 3.1 Other social security costs 0.9 0.6 0.3 Other staff costs 2.3 2.1 2.1 Total 45.8 46.2 43.8 Average number of permanent employees Seafarers 107.6 111.7 130.6 Land-based 313.5 302.2 286.6 Total 421.1 413.9 417.2 |
Schedule of termination benefits by title of individual | USD ‘000 2019 2018 2016 Non-Executive Board and Committee Remuneration, short term Christopher H. Boehringer 252 276 290 David Weinstein 198 182 174 Torben Janholt 170 171 174 Göran Trapp 170 171 174 Total 790 800 812 |
Schedule of key management personnel compensation | USD ‘000 Salary Taxable benefits Annual perfor-mance bonus Total Executive Management Remuneration Jacob Meldgaard 2017, TORM A/S 1) 923 42 580 1,545 2017, TORM plc 1) 81 — — 81 2018, TORM A/S 1) 983 44 425 1,452 2018, TORM plc 1) 80 — — 80 2019, TORM A/S 1) 962 41 1,126 2,129 2019, TORM plc 1) 79 — — 79 1) Paid by legal entity as noted. |
Schedule of staff costs | Exercise price RSU grant value assuming 100% RSU LTIP grant 1) per share vesting LTIP element of Jacob Meldgaard’s remuneration package 2018: Jacob Meldgaard 766,035 DKK 53.7 USD 0.9m 1) The LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 10 of 25 April 2018. Therefore there is no minimum or maximum for 2018. |
Schedule of reconciliation number of other equity instruments | Number of shares (1,000) 2019 2018 2017 Outstanding as of 1 January 2,719.1 2,611.2 1,999.8 Granted during the period 1,001.1 907.3 866.6 Exercised during the period (529.4) — — Expired during the period (785.3) (764.0) (233.9) Forfeited during the period (177.2) (35.4) (21.3) Outstanding as of 31 December 2,228.3 2,719.1 2,611.2 Exercisable as of 31 December — 255.3 255.3 |
REMUNERATION TO AUDITORS APPO_2
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | |
Schedule of auditor remuneration | USDm 2019 2018 2017 Audit fees Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 0.4 0.4 0.4 Audit of the Company’s subsidiaries pursuant to legislation 0.2 0.2 0.2 Total audit fees 0.6 0.6 0.6 Non-audit fees Audit-related services 0.1 0.2 0.4 Tax services 0.0 — — Total non-audit fees 0.1 0.2 0.4 Total 0.7 0.8 1.0 |
LOAN RECEIVABLES (Tables)
LOAN RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOAN RECEIVABLES | |
Schedule of Loan receivables | USDm 2019 2018 2017 Loan receivables Cost: Balance as of 1 January — — — Additions during the year 4.7 — — Balance as of 31 December 4.7 — — Expected credit loss Balance as of 1 January — — — Additions during the year 0.1 — — Balance as of 31 December 0.1 — — Carrying amount as of 31 December 4.6 — — |
TANGIBLE FIXED ASSETS (Tables)
TANGIBLE FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TANGIBLE FIXED ASSETS | |
Schedule of tangible fixed assets | USDm 2019 2018 2017 Land and buildings Cost: Balance as of 1 January — — — Adjustment on transition to IFRS 16 9.9 — — Additions 0.5 — — Balance as of 31 December 10.4 — — Depreciation: Balance as of 1 January — — — Depreciation for the year 2.3 — — Balance as of 31 December 2.3 — — Carrying amount as of 31 December 8.1 — — USDm 2019 2018 2017 Vessels and capitalized dry-docking Cost: Balance as of 1 January 1,886.3 1,726.6 1,697.4 Additions 81.3 162.7 103.1 Disposals (25.6) (30.2) (14.3) Transferred from prepayments 252.3 81.8 — Transferred to assets held for sale (130.1) (54.6) (59.6) Balance as of 31 December 2,064.2 1,886.3 1,726.6 Depreciation: Balance as of 1 January 327.6 264.8 180.0 Disposals (25.6) (30.2) (14.3) Depreciation for the year 106.5 113.4 113.6 Transferred to assets held for sale (47.9) (20.4) (14.5) Balance as of 31 December 360.6 327.6 264.8 Impairment: Balance as of 1 January 162.1 167.3 173.6 Impairment losses on tangible fixed assets 6.0 3.2 3.6 Reversal of impairment 1) (120.0) — — Transferred to assets held for sale (19.3) (8.4) (9.9) Balance as of 31 December 28.8 162.1 167.3 Carrying amount as of 31 December 1,674.8 1,396.6 1,294.5 1) For additional information regarding impairment considerations, please refer to note 8. USDm 2019 2018 2017 Prepayments on vessels Cost: Balance as of 1 January 45.5 88.4 44.1 Additions 301.8 38.9 44.3 Transferred to vessels (252.3) (81.8) — Balance as of 31 December 95.0 45.5 88.4 Carrying amount as of 31 December 95.0 45.5 88.4 USDm 2019 2018 2017 Other plant and operating equipment Cost: Balance as of 1 January 5.8 3.6 2.7 Adjustment on transition to IFRS 16 0.3 — — Additions 2.2 2.2 1.0 Disposals (0.2) — (0.1) Balance as of 31 December 8.1 5.8 3.6 Depreciation: Balance as of 1 January 2.8 1.7 0.9 Disposals — — (0.1) Depreciation for the year 1.0 1.1 0.9 Balance as of 31 December 3.8 2.8 1.7 Carrying amount as of 31 December 4.3 3.0 1.9 |
LEASING (Tables)
LEASING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASING | |
Schedule of right-of-use assets recognized by the company | Vessels and Other plant capitalized Land and and operating USDm dry-docking buildings equipment Cost: Balance as of 1 January — — Adjustment on transition to IFRS 16 — 9.9 0.3 Additions 0.5 0.4 Disposals (2.7) — (0.1) Balance as of 31 December 10.4 0.6 Depreciation: Balance as of 1 January — — Disposals (2.7) — — Depreciation for the year 2.3 0.2 Balance as of 31 December 2.3 0.2 Carrying amount as of 31 December 8.1 0.4 |
Schedule of the nature of the Group's leasing activities by type of right-of-use asset recognized on the balance sheet | Other plant Vessels and capitalized Land and and operating dry-docking buildings equipment No. of right-of-use assets leased 10 19 Range of remaining term 2 years 0-9 years 0-3 years Average remaining lease term years 2.8 years 1.3 years No. of leases with extension options — 10 19 No. of leases with options to purchase — — No. of leases with termination options 2 10 |
Schedule of Maturity analysis of lease liabilities | USDm 2019 2018 Maturity analysis - contractual undiscounted cash flow Less than one year 7.5 5.2 One to five years 27.6 25.6 More than five years 0.1 — Total undiscounted lease liabilities as of 31 December 35.2 30.8 Lease liabilities included under "Borrowings" as of 31 December 30.6 25.3 Non-current 10.2 3.2 Current 20.4 22.1 |
Schedule of financial expenses for the reporting period | USDm 2019 2018 2017 Interest expenses: — — Financial expenses arising from lease liabilities regarding right-of-use assets 2.4 2.3 1.8 Other financial expenses 39.5 37.0 38.8 Total 41.9 39.3 40.6 |
FINANCIAL ITEMS (Tables)
FINANCIAL ITEMS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FINANCIAL ITEMS | |
Schedule of finance income costs | USDm 2019 2018 2017 Financial income Interest income from cash and cash equivalents, including restricted cash 1) 2.5 2.7 1.6 Exchange rate adjustments, including gain from forward exchange rate contracts 0.3 0.6 2.7 Total 2.8 3.3 4.3 Financial expenses Interest expenses on mortgage and bank debt 1) 39.3 35.7 33.3 Exchange rate adjustments, including loss from forward exchange rate contracts 0.2 0.1 3.2 Commitment fee 1.9 2.6 2.4 Other financial expenses 0.5 0.9 1.7 Total 41.9 39.3 40.6 Total financial items (39.1) (36.0) (36.3) 1) Interest for financial assets and liabilities not at fair value through profit and loss. |
FREIGHT RECEIVABLES (Tables)
FREIGHT RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FREIGHT RECEIVABLES | |
Schedule of individually determined to be impaired to a value | USDm 2019 2018 2017 Analysis as of 31 December of freight receivables: Gross freight receivables: Not yet due 39.8 44.0 25.5 Due < 30 days 22.5 18.8 26.0 Due between 30 and 180 days 25.3 20.5 18.4 Due > 180 days 6.0 4.4 2.7 Total gross 93.6 87.7 72.6 Allowance for expected credit loss 3.7 1.7 1.3 Total net 89.9 86.0 71.3 |
Schedule of movement in provisions for impairment of freight receivables | USDm 2019 2018 2017 Allowance for expected credit loss Balance as of 1 January 1.7 1.3 2.6 Adjustment to prior years 1.5 — — Provisions for the year 2.4 1.7 0.6 Provisions reversed during the year (1.9) (1.0) (1.9) Provisions utilized during the year — (0.3) — Balance as of 31 December 3.7 1.7 1.3 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER RECEIVABLES | |
Schedule of other current receivables | USDm 2019 2018 Partners and commercial managements 1.9 — Derivative financial instruments 0.5 3.7 Tax receivables 1.5 1.2 Other 2.3 2.6 Balance as of 31 December 6.2 7.5 |
TAX (Tables)
TAX (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TAX | |
Schedule of income tax | USDm 2019 2018 2017 Tax for the year Current tax for the year 1.2 1.0 Adjustments related to previous years (0.4) (0.1) (0.1) Adjustment of deferred tax liability — (0.1) Total |
Schedule of deferred taxes | USDm 2019 2018 2017 Deferred tax liability Balance as of 1 January 45.0 Deferred tax for the year — (0.1) Adjustments related to previous years — (0.1) — Balance as of 31 December |
COMMON SHARES AND TREASURY SH_2
COMMON SHARES AND TREASURY SHARES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMON SHARES AND TREASURY SHARES | |
Schedule of purposes due to the corporate reorganization, the common shares | Common shares 2019 2018 2017 Number of shares Number of shares Number of shares A-shares 74,748,248 74,218,846 62,298,846 B-shares 1 1 1 C-shares 1 1 1 Total 74,748,250 74,218,848 62,298,848 |
Schedule of treasury share transactions | Treasury shares 2019 2018 2017 Number of shares (‘000) Balance as of 1 January 312.9 312.9 Additions — — — Cancellations — — — Disposals — — — Balance as of 31 December 312.9 312.9 Treasury shares - continued 2019 2018 2017 Nominal value USD ‘000 Balance as of 1 January 3.1 3.1 Additions — — — Cancellations — — — Disposals — — — Balance as of 31 December 3.1 3.1 Percentage of share capital Balance as of 1 January % % % Additions — — 0.0 % Cancellations — — 0.0 % Disposals — — — Dilution, due to capital increases — (0.1) % 0.0 % Balance as of 31 December % % % |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER LIABILITIES | |
Schedule of other liabilities | USDm 2019 2018 Partners and commercial managements 0.5 Accrued operating expenses 14.1 Accrued interest 4.0 Wages and social expenses 14.3 Derivative financial instruments 12.3 Payables to joint ventures 0.1 Other 2.0 Balance as of 31 December 47.3 |
EFFECTIVE INTEREST RATE, OUTS_2
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS | |
Schedule of effective interest rate, outstanding mortgage debt and bank loans | 2019 2018 2017 Fixed/ Effective Carrying Effective Carrying Effective Carrying USDm floating Maturity interest 1) value 2) Maturity interest 1) value 2) Maturity interest 1) value 2) BORROWINGS DSF Facility 1 (USD) Floating % 50.0 % 64.1 % TFA Facility 1 (USD) 3) Floating % 6.0 % 331.3 5.0 % DSF Facility 2 (USD) Floating % % 5.0 % DSF Facility 3 (USD) Floating % % % TFA Facility 2 (USD) 3) Floating % % 103.7 % 115.0 ING (USD) 3) Floating % % 42.0 % CEXIM (USD) Floating % 104.0 % — — — ABN AMRO (USD) 3) Floating % — — — — — — DSF Facility 4 (USD) Floating % — — — — — — Bocomm (USD) Floating % — — — — — — Springliner (USD) Fixed % % % Eifuku (USD) Floating % — — — — — — Showa (USD) Floating % — — — — — — Weighted average effective interest rate % % % Carrying value Hereof non-current 4) 756.0 Hereof current 4) 1) Effective interest rate includes deferred and amortized bank fees. 2) Because of the floating interest rate, the carrying value of the Group's borrowings is approximately equal to the fair value. The carrying value is excluding capitalized bank fees recognized in the balance sheet as well as lease liabilities regarding right-of-use assets recognized under Land and buildings and Other plant and equipment. ³⁾ Refinanced on 6 February 2020 ⁴⁾ Split between current and non-current is based on terms in effect as of 31 December, without consideration to the refinancing taking place in 2020. |
CONTRACTUAL RIGHTS AND OBLIGA_2
CONTRACTUAL RIGHTS AND OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CONTRACTUAL RIGHTS AND OBLIGATIONS | |
Schedule of contractual obligations | USDm 2020 2021 2022 2023 2024 Thereafter Total Borrowings 1) 2) 101.2 326.9 119.5 30.8 82.8 202.2 863.4 Interest payments related to scheduled interest fixing 33.8 25.4 13.1 10.0 8.0 6.9 97.2 Estimated variable interest payments 3) 4.3 6.7 4.4 3.6 3.5 11.6 34.1 Newbuilding installments 4) 51.2 — — — — — 51.2 Committed scrubber installations 32.0 — — — — — 32.0 Trade payables and other obligations 76.3 — — — — — 76.3 Total 298.8 359.0 137.0 44.4 94.3 220.7 1,155.2 1) The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 8.0m (2018: USD 5.1m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 5.8m (2018: USD 1.1m). 2) Borrowings include contractual obligations relating to lease liabilities arising from land and buildings and other plant and operating equipment amounted to USD 8.7m (2018: USD 0.0m), and the contractual value of lease liabilities relating to vessels and capitalized dry-dockings amounted to USD 21.9m (2018: USD 25.3m). For further detail please refer to note 7. 3) Variable interest payments are estimated based on the forward rates for each interest period including hedging instruments. |
Schedule of reconciliation of liabilities arising from financing activities | Cash Non-cash Opening End balance as balance as of 1 Other of 31 USDm January 2019 Borrowings Repayments changes 1) December 2019 Borrowings 749.6 261.8 (169.2) 13.2 855.4 Total 749.6 261.8 (169.2) 13.2 855.4 ¹⁾ Primarily due to implementation of IFRS 16. Cash Non-cash Opening End balance as balance as of 1 Other of 31 USDm January 2018 Borrowings Repayments changes December 2018 Borrowings 749.1 114.5 (113.7) (0.3) 749.6 Total 749.1 114.5 (113.7) (0.3) 749.6 |
Schedule of contractual rights | The following table summarizes the Group’s contractual rights as of 31 December 2019. USDm 2020 2021 2022 2023 2024 Thereafter Total Contractual rights - as lessor: Charter hire income for vessels 5) 12.6 1.1 — — — — 13.7 Total 12.6 1.1 — — — — 13.7 5) Charter hire income for vessels on time charter and bareboat charter is recognized under "Revenue". The average period until redelivery of the vessels for the period ended 31 December 2019 is 1.0 year (2018: 0.8 year). |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of disclosure of derivative financial instruments | USDm 2019 2018 Fair value of derivatives: Derivative financial instruments regarding freight and bunkers: Forward freight agreements (0.3) 0.5 Bunker swaps — (1.2) Derivative financial instruments regarding interest and currency exchange rate: Forward exchange contracts (0.4) (1.8) Interest rate swaps (11.1) 2.8 Fair value of derivatives as of 31 December (11.8) 0.3 Derivative financial instruments are presented as below on the balance sheet: Financial Financial USDm assets liabilities 2019 Offsetting financial assets and financial liabilities: Gross amount 0.7 (12.5) Offsetting amount (0.2) 0.2 Net amount presented on the balance sheet 0.5 (12.3) Financial Financial USDm assets liabilities 2018 Offsetting financial assets and financial liabilities: Gross amount 7.1 (6.8) Offsetting amount (3.4) 3.4 Net amount presented on the balance sheet 3.7 (3.4) |
Schedule of disclosure of derivative financial instruments with the notional values | Hedge accounting Expected maturity 2019 Notional value Unit 2020 2021 After 2021 Forward exchange contracts (USD/DKK) ¹⁾ 222.5 DKKm 222.5 — — Interest rate swaps ²⁾ 597.8 USDm 120.5 239.5 237.8 Bunker swaps ³⁾ 4,725 MT 4,725 — — 1) The average hedge of USD/DKK currency was 6,5. 2) The average interest rate was 2.33% plus margin. 2 ) The average price of the hedging instruments was USD 652.0. Hedge accounting Expected maturity 2018 Notional value Unit 2019 2020 After 2020 Forward exchange contracts (USD/DKK) ¹⁾ 250.0 DKKm 250.0 — — Interest rate swaps ²⁾ 512.8 USDm 46.6 160.9 305.3 Bunker swaps 3) 10,400 MT 10,400 — — 1) The average hedge of USD/DKK currency was 6,5. 2) The average interest rate was 2.04% plus margin. 3) The average price of the hedging instruments was USD 413.7. |
Schedule of realized amounts and fair value adjustments for derivative financial instruments | The table below shows realized amounts as well as fair value adjustments regarding derivative financial instruments recognized in the income statements and equity in 2019, 2018 and 2017. Other comprehensive Income statement income 1) Equity 2) Port Hedging expenses, reserves bunkers and Operating Administra-tive Adjustment to as of 31 USDm Revenue commissions Financial items expenses expenses hedging reserve December 2019 Forward freight agreements 0.4 — — — — (0.5) — Bunker swaps — (0.1) — — — 0.9 (0.3) Forward exchange contracts — — — (2.0) (1.5) 1.4 (0.4) Interest rate swaps — — 2.1 — — (13.8) (11.1) Total 0.4 (0.1) 2.1 (2.0) (1.5) (12.0) (11.8) 2018 Forward freight agreements (2.1) — — — — 0.9 0.5 Bunker swaps — 1.1 — — — (2.0) (1.2) Forward exchange contracts — — — 0.1 0.2 (3.7) (1.8) Interest rate swaps — — 1.0 — — (2.3) 2.8 Total (2.1) 1.1 1.0 0.1 0.2 (7.1) 0.3 2017 Forward freight agreements 0.5 — — — — (0.3) (0.4) Bunker swaps — 1.2 — — — — 0.8 Forward exchange contracts — — — 0.3 0.2 4.4 1.8 Interest rate swaps — — (3.4) — — 2.7 5.1 Total 0.5 1.2 (3.4) 0.3 0.2 6.8 7.3 1) Fair value adjustments on hedging instruments added to the hedging reserves for interest rate swaps, are for 2019 USD -11.7m, for 2018 USD -1,3m and for 2017 USD -0.7m. 2 ⁾ The hedging reserves as of 31 December of the derivatives used for cash flow hedge are equal to the entire fair value of the hedge instruments as no ineffectiveness has been identified and the reserve includes open hedge instruments only. |
RISKS ASSOCIATED WITH TORM'S _2
RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RISKS ASSOCIATED WITH TORM'S ACTIVITIES | |
Schedule of sensitivity analysis for changes in freight rates | USDm 2020 2019 2018 Decrease in freight rates of USD/day 1,000: Changes in profit/loss before tax for the following year (25.4) (25.3) (24.1) Changes in equity for the following year (25.4) (25.3) (24.1) |
Schedule of sensitivity analysis, impact of 10 percent per ton increase in bunker prices | USDm 2020 2019 2018 Increase in the bunker prices of 10% per ton: Changes in profit/loss before tax for the following year (19.8) (20.7) (18.3) Changes in equity for the following year (19.8) (20.7) (18.3) |
Schedule of sensitivity analysis, impact of 10 percent change in exchange rate | USDm 2020 2019 2018 Effect of a 10% increase of DKK and EUR: Changes in profit/loss before tax for the following year (2.0) (2.1) (2.5) Changes in equity for the following year (2.0) (2.1) (2.5) |
Schedule of sensitivity analysis, impact of 1 percent point increase in interest rate | USDm 2020 2019 2018 Effect of a 1%-point increase in interest rates: Changes in profit/loss before tax for the following year (3.0) (2.4) (3.2) Changes in equity for the following year 7.9 8.0 3.6 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FINANCIAL INSTRUMENTS | |
Schedule of fair value measurement of assets and liabilities | Quoted Observable Unobservable Financial instruments Financial instruments prices input input measured at measured at Total Categories of financial assets and liabilities (USDm): (level 1) (level 2) (level 3) fair value amortized cost carrying value 2019: Financial assets Loan receivables — — — — 4.6 4.6 Freight receivables — — — — 89.8 89.8 Other receivables — 0.5 — 0.5 5.7 6.2 Cash and cash equivalents, including restricted cash — — — — 72.5 72.5 Total — 0.5 — 0.5 172.6 173.1 Financial liabilities Borrowings ¹⁾ ²⁾ — — — — 855.4 855.4 Trade payables — — — — 47.1 47.1 Other liabilities — 12.3 — 12.3 35.0 47.3 Total — 12.3 — 12.3 937.5 949.8 2018: Financial assets Freight receivables — — — — 86.0 86.0 Other receivables — 3.7 — 3.7 3.8 7.5 Cash and cash equivalents, including restricted cash — — — — 127.4 127.4 Total — 3.7 — 3.7 217.2 220.9 Financial liabilities Borrowings ¹⁾ ²⁾ — — — — 749.6 749.6 Trade payables — — — — 35.1 35.1 Other liabilities — 3.4 — 3.4 33.1 36.5 Total — 3.4 — 3.4 817.8 821.2 1) Due to the short maturity, the carrying value is considered to be an appropriate expression of the fair value. 2) See note 15. ³⁾ Derivative financial instruments are presented within the balance sheet line Other receivables and Other liabilities. |
CASH FLOWS (Tables)
CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CASH FLOWS | |
Schedule of cash flow statement | USDm 2019 2018 2017 Reversal of other non-cash movements: Exchange rate adjustments (0.9) — 1.8 Share-based payments 1.9 2.0 1.9 Other adjustments (0.1) — — Total 0.9 2.0 3.7 USDm 2019 2018 2017 Change in bunkers, receivables and payables: Change in bunkers 5.1 (6.2) (1.6) Change in receivables (2.5) (10.4) (12.4) Change in prepayments (0.7) 1.5 (1.4) Change in trade payables and other liabilities 22.8 11.7 (1.6) Other changes (0.8) (2.2) (2.9) Adjusted for fair value changes of derivative financial instruments (12.0) (7.1) 6.9 Total 11.9 (12.7) (13.0) |
ENTITIES IN THE GROUP (Tables)
ENTITIES IN THE GROUP (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ENTITIES IN THE GROUP | |
Schedule of of subsidiaries | Entity Country TORM plc United Kingdom Investments in subsidiaries 6) : Entity Country Ownership 5) TORM A/S Denmark 100 % DK Vessel HoldCo GP ApS Denmark 100 % DK Vessel HoldCo K/S Denmark 100 % OCM (Gibraltar) Njord Midco Ltd 4) Gibraltar 100 % OCM Njord Chartering Inc 4) Marshall Islands 100 % OCM Singapore Njord Holdings Agnes, Pte. Ltd 3) 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 3) Singapore 100 % OCM Singapore Njord Holdings Aslaug, Pte. Ltd 3) 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 Gorm Pte. Ltd 3) Singapore 100 % OCM Singapore Njord Holdings Knut Pte. Ltd 3) Singapore 100 % OCM Singapore Njord Holdings Valdemar Pte. Ltd 3) 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 3) Singapore 100 % OCM Singapore Njord Holdings Arawa Pte. Ltd 3) Singapore 100 % OCM Singapore Njord Holdings Leif Pte. Ltd 3) Singapore 100 % OCM Holdings Mrs Inc. 4) Marshall Islands 100 % OCM Njord Anne Inc. 4) Marshall Islands 100 % OCM Njord Freya Inc. 4) Marshall Islands 100 % OCM Njord Gerd Inc. 4) Marshall Islands 100 % OCM Njord Gertrud Inc. 4) Marshall Islands 100 % OCM Njord Gunhild Inc. 4) Marshall Islands 100 % OCM Njord Helene Inc. 4) Marshall Islands 100 % OCM Njord Helvig Inc. 4) Marshall Islands 100 % OCM Njord Ingeborg Inc. 4) Marshall Islands 100 % OCM Njord Mary Inc. 4) Marshall Islands 100 % OCM Njord Ragnhild Inc. 4) Marshall Islands 100 % OCM Njord Thyra Inc. 4) Marshall Islands 100 % OCM Njord Valborg Inc. 4) Marshall Islands 100 % OCM Njord Vita Inc. 4) Marshall Islands 100 % OMI Holding Ltd. Mauritius 100 % TORM Crewing Service Ltd. Bermuda 100 % TORM Shipping India Private Limited India 100 % TORM Singapore Pte. Ltd. Singapore 100 % TORM USA LLC USA 100 % VesselCo 1 K/S Denmark 100 % VesselCo 3 K/S Denmark 100 % VesselCo 5 K/S 1) Denmark 100 % VesselCo 6 K/S 2) Denmark 100 % VesselCo 6 Pte. Ltd. Singapore 100 % VesselCo 7 Pte. Ltd. Singapore 100 % VesselCo 8 Pte. Ltd. Singapore 100 % VesselCo 9 Pte. Ltd. Singapore 100 % VesselCo 10 Pte. Ltd. Singapore 100 % VesselCo 11 Pte. Ltd. Singapore 100 % VesselCo 12 Pte. Ltd. 1) Singapore 100 % TORM SHIPPING (PHILS.), INC. Philippines 25 % VesselCo A ApS Denmark 100 % VesselCo C ApS Denmark 100 % VesselCo E ApS 1) Denmark 100 % VesselCo F ApS 2) Denmark 100 % 1) Entities added in the financial year ended 31 December 2017. 2) Entities added in the financial year ended 31 December 2018. 3 ) Entities dissolved in the financial year ended 31 December 2017. 4 ) Entities dissolved in the financial year ended 31 December 2018. 5 ) For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.), INC where voting rights are 100%. 6 ) 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 Hong Kong c/o Estera Services 57/63 Line Wall Road Room A, 7/F (Bermuda Limited) GX11 1AA China Overseas Bldg. Canon’s Court Gibraltar 139 Hennessy Road 22 Victoria Street Wanchai PO Box 1624 Hong Kong Hamilton HM GX Bermuda |
Schedule of interest in legal entities included as joint ventures | 2019 Profit and loss from Other compre- Total compre- continuing hensive hensive Entity (USDm) Country % Control operations income income Long Range 2 A/S Denmark 50 % — — — LR2 Management K/S Denmark 50 % — — — Marine Exhaust Technology Ltd. Hong Kong 28 % 3.4 — 3.4 |
EARNINGS PER SHARE AND DIVIDE_2
EARNINGS PER SHARE AND DIVIDEND PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE AND DIVIDEND PER SHARE | |
Schedule of earnings per share | 2019 2018 2017 EARNINGS PER SHARE Net profit/(loss) for the year (USDm) 166.0 (34.8) 2.4 Million shares Weighted average number of shares 74.3 73.4 62.3 Weighted average number of treasury shares (0.3) (0.3) (0.3) Weighted average number of shares outstanding 74.0 73.1 62.0 Dilutive effect of outstanding share options 0.0 — — Weighted average number of shares outstanding incl. dilutive effect of share options 74.0 73.1 62.0 Basic earnings/(loss) per share (USD) 2.24 (0.48) 0.04 Diluted earnings/(loss) per share (USD) 2.24 (0.48) 0.04 |
Schedule of dividend per share | 2019 2018 2017 DIVIDEND PER SHARE Dividend for the year (USDm) 7.4 — 1.2 Number of shares, end of period (million) 74.7 74.2 62.3 Dividend per share 0.10 — 0.02 |
ACCOUNTING POLICIES, CRITICAL_4
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS - Reconciliation of lease liabilities pursuant to IFRS 16 on transition (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Total operating lease commitments at 31 December 2018 | $ 6.2 | ||
Operating lease liabilities before discounting | $ 6.2 | ||
Discounted using incremental borrowing rate | (0.6) | ||
Operating lease liability | 5.6 | ||
Reasonably certain extension options | 4.5 | ||
Other adjustments | (0.2) | ||
Finance lease liabilities recognized under IAS 17 | 25.3 | ||
Total lease liabilities recognized under IFRS 16 at 1 January 2019 | $ 30.6 | $ 35.2 | $ 25.3 |
ACCOUNTING POLICIES, CRITICAL_5
ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS - Additional information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure Of Accounting Policy [Line Items] | |||
Cash | $ 72 | $ 127 | $ 134 |
Net debt | 786 | ||
Undrawn debt | 246 | ||
Borrowings obtained | $ 496 | ||
Net interest-bearing debt loan-to-value ratio | 46.00% | ||
Financial interest | $ 41.9 | $ 39.3 | $ 40.6 |
Number of geographical segment | segment | 1 | ||
Demurrage revenue claim percentage | 95.00% | ||
Average period of receiving demurrage payment | 100 days | ||
Dry Docking period | every 24 and 60 months | ||
Vessels and capitalized dry-docking | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 25 years | ||
Company cars | |||
Disclosure Of Accounting Policy [Line Items] | |||
Lease term | 3 years | ||
IT equipment | Maximum | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 5 years | ||
IT equipment | Minimum | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 3 years | ||
Software | Maximum | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 5 years | ||
Software | Minimum | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 3 years | ||
Other plant and operating equipment | Maximum | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 5 years | ||
Other plant and operating equipment | Minimum | |||
Disclosure Of Accounting Policy [Line Items] | |||
Useful Life of Assets | 3 years |
LIQUIDITY, CAPITAL RESOURCES _2
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)building | Dec. 31, 2018USD ($)building | Dec. 31, 2017USD ($)building | |
Liquidity And Capital Resources [Line Items] | |||
Cash position | $ 72 | $ 127 | $ 134 |
Undrawn credit facilities | $ 246 | ||
Newbuildings on order for delivery | building | 4 | 9 | 10 |
Total outstanding CAPEX related to newbuildings | $ 51 | $ 258 | $ 307 |
Value of borrowings | 854.7 | 754.8 | 747.3 |
Scheduled minimum payments on mortgage debt and bank loans in 2018 | 83 | ||
Credit facility | |||
Liquidity And Capital Resources [Line Items] | |||
Undrawn credit facilities | 173 | $ 279 | $ 271 |
Working capital facility | |||
Liquidity And Capital Resources [Line Items] | |||
Undrawn credit facilities | 75 | ||
Term facility I | |||
Liquidity And Capital Resources [Line Items] | |||
Value of borrowings | 237 | ||
Term facility II | |||
Liquidity And Capital Resources [Line Items] | |||
Value of borrowings | 75 | ||
Bilateral borrowing facility | ABN AMRO Bank | |||
Liquidity And Capital Resources [Line Items] | |||
Undrawn credit facilities | 53 | ||
Bilateral borrowing facility | KFW | |||
Liquidity And Capital Resources [Line Items] | |||
Undrawn credit facilities | 46 | ||
Bilateral loan agreements | ABN AMRO Bank | |||
Liquidity And Capital Resources [Line Items] | |||
Value of borrowings | 21 | ||
Bilateral loan agreements | China export import Bank | |||
Liquidity And Capital Resources [Line Items] | |||
Value of borrowings | 104 | ||
Bilateral loan agreements | Danish ship finance | |||
Liquidity And Capital Resources [Line Items] | |||
Value of borrowings | 207 | ||
Total balloon payments | 72 | ||
Bilateral loan agreements | ING | |||
Liquidity And Capital Resources [Line Items] | |||
Value of borrowings | $ 36 |
LIQUIDITY, CAPITAL RESOURCES _3
LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS - Additional Information (Details) | Jan. 23, 2020USD ($)item | Jan. 16, 2020USD ($)Vote$ / sharesshares | Jan. 14, 2020USD ($)facilityitemt | Jan. 08, 2020USD ($) | Jan. 06, 2020t | Jan. 03, 2020t | Dec. 31, 2019USD ($)itemVoteshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Total shares | shares | 74,748,250 | 74,218,848 | 62,298,848 | ||||||
Borrowings obtained | $ | $ 854,700,000 | $ 754,800,000 | $ 747,300,000 | ||||||
Share capital | $ | $ 747,000 | $ 742,000 | |||||||
Number of votes | Vote | 350,000,000 | ||||||||
Number of scrubber fitted vessels | item | 2 | ||||||||
A-shares | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Total shares | shares | 74,748,248 | 74,218,846 | 62,298,846 | ||||||
B-shares | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Total shares | shares | 1 | 1 | 1 | ||||||
C-shares | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Total shares | shares | 1 | 1 | 1 | ||||||
Asset purchase | TORM Elise | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Dead Weight Ton of the tanker purchased | t | 75,000 | ||||||||
Asset purchase | TORM Elizabeth | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Dead Weight Ton of the tanker purchased | t | 75,000 | ||||||||
Asset purchase | TORM Splendid | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Dead Weight Ton of the tanker purchased | t | 50,000 | ||||||||
Asset purchase | Scrubber-fitted fuel-efficient and dual-fuel ready newbuildings | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Borrowings obtained | $ | $ 76,000,000 | ||||||||
Number of vessels to be purchased | item | 2 | ||||||||
CAPEX | $ | $ 95,000,000 | ||||||||
Term of the sale and leaseback arrangment | 10 years | ||||||||
Asset disposals | TORM Garonne | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Impairment on held-for-sale vessels | $ | $ 700,000 | ||||||||
Debt Refinancing | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Borrowings obtained | $ | $ 496,000,000 | ||||||||
Number of existing facilities to be refinanced | facility | 4 | ||||||||
Number of existing vessels financed by the refinancing | item | 46 | ||||||||
Capital Increase | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Share capital | $ | $ 747,606.55 | ||||||||
Capital Increase | A-shares | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Nominal value of shares issued | $ | $ 124.05 | ||||||||
Total shares | shares | 74,760,653 | ||||||||
Par value of common shares | $ / shares | $ 0.01 | ||||||||
Number of shares issued | shares | 12,405 | ||||||||
Number of votes | Vote | 74,760,653 | ||||||||
Capital Increase | B-shares | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Total shares | shares | 1 | ||||||||
Par value of common shares | $ / shares | $ 0.01 | ||||||||
Capital Increase | C-shares | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Total shares | shares | 1 | ||||||||
Par value of common shares | $ / shares | $ 0.01 | ||||||||
Scrubber Installations | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Number of vessels committed to install scrubbers | item | 3 | ||||||||
Number of scrubber fitted vessels | item | 49 |
STAFF COSTS - Total staff costs
STAFF COSTS - Total staff costs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | |
Total staff costs | |||
Staff costs | $ 45.8 | $ 46.2 | $ 43.8 |
Staff costs comprise the following | |||
Wages and salaries | 37.2 | 38.1 | 36.4 |
Share-based compensation | 1.9 | 2.1 | 1.9 |
Pension costs | 3.5 | 3.3 | 3.1 |
Other social security costs | 0.9 | 0.6 | 0.3 |
Other staff costs | 2.3 | 2.1 | 2.1 |
Total | $ 45.8 | $ 46.2 | $ 43.8 |
Average number of permanent employees | |||
Seafarers | employee | 107.6 | 111.7 | 130.6 |
Land-based | employee | 313.5 | 302.2 | 286.6 |
Total | employee | 421.1 | 413.9 | 417.2 |
Staff costs included in operating expenses | |||
Total staff costs | |||
Staff costs | $ 8.1 | $ 9.3 | $ 9.2 |
Staff costs comprise the following | |||
Total | 8.1 | 9.3 | 9.2 |
Staff costs included in administrative expenses | |||
Total staff costs | |||
Staff costs | 37.7 | 36.9 | 34.6 |
Staff costs comprise the following | |||
Total | $ 37.7 | $ 36.9 | $ 34.6 |
STAFF COSTS - The average numbe
STAFF COSTS - The average number of employees is calculated as a full-time equivalent (FTE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Executive Board and Committee Remuneration, Short term | |||
Total | $ 790 | $ 800 | $ 812 |
Christopher H. Boehringer | |||
Non-Executive Board and Committee Remuneration, Short term | |||
Total | 252 | 276 | 290 |
David Weinstein | |||
Non-Executive Board and Committee Remuneration, Short term | |||
Total | 198 | 182 | 174 |
Torben Janholt | |||
Non-Executive Board and Committee Remuneration, Short term | |||
Total | 170 | 171 | 174 |
Goran Trapp | |||
Non-Executive Board and Committee Remuneration, Short term | |||
Total | $ 170 | $ 171 | $ 174 |
STAFF COSTS - Executive managem
STAFF COSTS - Executive management (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Employee Benefits [Line Items] | |||
Salary | $ 37,200 | $ 38,100 | $ 36,400 |
TORM A/S | |||
Disclosure Of Employee Benefits [Line Items] | |||
Salary | 79 | 80 | 81 |
Taxable benefits | 0 | 0 | 0 |
Annual performance bonus | 0 | 0 | 0 |
Total | 79 | 80 | 81 |
Jacob Meldgaard | TORM A/S | |||
Disclosure Of Employee Benefits [Line Items] | |||
Salary | 962 | 983 | 923 |
Taxable benefits | 41 | 44 | 42 |
Annual performance bonus | 1,126 | 425 | 580 |
Total | $ 2,129 | $ 1,452 | $ 1,545 |
STAFF COSTS - Long-Term Incenti
STAFF COSTS - Long-Term Incentive Plan - RSUs granted in 2019 (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019kr / shares | Dec. 31, 2019USD ($)EquityInstruments | Dec. 31, 2018EquityInstruments | Dec. 31, 2017EquityInstruments | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
RSU LTIP grant | 1,001,100 | 944,468 | ||
Long term incentive plan | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
RSU LTIP grant | 1,001,100 | 907,300 | 866,600 | |
Long term incentive plan | Jacob Meldgaard | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
RSU LTIP grant | 766,035 | |||
Exercise price per share | kr / shares | kr 53.7 | |||
RSU grant value assuming 100% vesting | $ | $ 0.9 |
STAFF COSTS - Number of shares
STAFF COSTS - Number of shares in TORM plc (Details) - EquityInstruments | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Granted during the period | 1,001,100 | 944,468 | ||
Long term incentive plan | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Outstanding 1 January | 2,719,100 | 2,611,200 | 1,999,800 | |
Granted during the period | 1,001,100 | 907,300 | 866,600 | |
Exercised during the period | (529,400) | 0 | 0 | |
Expired during the period | (785,300) | (764,000) | (233,900) | |
Forfeited during the period | (177,200) | (35,400) | (21,300) | |
Outstanding 31 December | 2,228,300 | 2,719,100 | 2,611,200 | 1,999,800 |
Exercisable 31 December | 255,300 | 255,300 |
STAFF COSTS - Additional Inform
STAFF COSTS - Additional Information (Details) | Jan. 01, 2019EquityInstruments | Jan. 01, 2018USD ($) | Jan. 01, 2017EquityInstruments | Dec. 31, 2019trancheEquityInstruments | Nov. 30, 2019EquityInstruments | Dec. 31, 2019EquityInstrumentskr / shares | Dec. 31, 2019USD ($)EquityInstruments | Dec. 31, 2018EquityInstrumentskr / shares | Dec. 31, 2018USD ($)EquityInstruments | Dec. 31, 2017EquityInstrumentskr / shares | Dec. 31, 2017USD ($)EquityInstruments | Dec. 31, 2016EquityInstrumentskr / shares |
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Number of seafarers for which staff costs included in operating expenses | $ | 108 | 112 | 131 | |||||||||
Number of RSUs granted | 1,001,100 | 944,468 | ||||||||||
Long term incentive plan | ||||||||||||
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Number of RSUs granted | 1,001,100 | 907,300 | 866,600 | |||||||||
Number of RSUs outstanding as of date | 2,228,300 | 2,228,300 | 2,228,300 | 2,719,100 | 2,719,100 | 2,611,200 | 2,611,200 | 1,999,800 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||
Exercise price of RSUs | kr / shares | kr 53.7 | kr 53.7 | ||||||||||
Average remaining contractual life | 1 year 6 months | 1 year 1 month 6 days | 1 year 3 months 18 days | |||||||||
Key management personnel of entity or parent | ||||||||||||
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Aggregate compensation paid | $ | $ 1,736,750 | $ 2,186,679 | $ 1,987,726 | |||||||||
Aggregate compensation paid for pensions | $ | $ 115,880 | 125,959 | $ 112,236 | |||||||||
Market value of one share | kr / shares | kr 93.6 | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||
Vesting period of RSUs | 3 years | |||||||||||
Chief executive officer | Long term incentive plan | ||||||||||||
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Number of one fifth units vested in share-based payment arrangement. | 255,345 | 255,345 | 255,345 | |||||||||
Number of Tranches | tranche | 2 | |||||||||||
Number of RSUs granted | 1,276,725 | |||||||||||
Vesting percentage of RSU grant | 100.00% | |||||||||||
Value of RSUs grant | $ | $ 900,000 | |||||||||||
Market value of one share | kr / shares | 49.5 | kr 96.3 | ||||||||||
Percentage of non-vested RSU | 60.00% | |||||||||||
Exercise price per share | kr / shares | kr 53.7 | |||||||||||
Average strike price | 90 days | |||||||||||
Percentage of premium on average price to determine exercise price | 15.00% | 15.00% | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||
Exercise period of RSUs | 360 days | 3 years | ||||||||||
Chief executive officer | Long term incentive plan | Tranches One [Member] | ||||||||||||
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Number of RSUs granted | 255,200 | |||||||||||
Chief executive officer | Long term incentive plan | Tranches Two [Member] | ||||||||||||
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Number of RSUs granted | 255,200 | |||||||||||
Chief executive officer | Long term incentive plan | First Vesting over Three Years [Member] | ||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||
Vesting period of RSUs | 3 years | |||||||||||
Chief executive officer | Long term incentive plan | Second Vesting over Three years [Member] | ||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||
Vesting period of RSUs | 3 years | |||||||||||
Executive Director [Member] | Long term incentive plan | ||||||||||||
Disclosure Of Employee Benefits [Line Items] | ||||||||||||
Number of one fifth units vested in share-based payment arrangement. | 255,345 |
REMUNERATION TO AUDITORS APPO_3
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Audit fees | |||
Fees payable to the Company's auditor for the audit of the Company's annual accounts | $ 0.4 | $ 0.4 | $ 0.4 |
Audit of the Company's subsidiaries pursuant to legislation | 0.2 | 0.2 | 0.2 |
Total audit fees | 0.6 | 0.6 | 0.6 |
Non-audit fees | |||
Audit-related services | 0.1 | 0.2 | 0.4 |
Tax services | 0 | 0 | 0 |
Total non-audit fees | 0.1 | 0.2 | 0.4 |
Total | $ 0.7 | $ 0.8 | $ 1 |
REMUNERATION TO AUDITORS APPO_4
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING | |||
Auditor's remuneration | $ 0.7 | $ 0.8 | $ 1 |
Total audit fees | 0.6 | 0.6 | 0.6 |
Auditor's remuneration for audit services | $ 0.1 | $ 0.2 | $ 0.4 |
LOAN RECEIVABLES (Details)
LOAN RECEIVABLES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)item | |
Disclosure of Loan Receivables [line items] | |
Balance | $ 4,617 |
Number of MR vessels | item | 2 |
Sale lease back transaction interest rate | 1.00% |
Cost | |
Disclosure of Loan Receivables [line items] | |
Additions | $ 4,700 |
Balance | 4,700 |
Accumulated impairment | |
Disclosure of Loan Receivables [line items] | |
Additions | 100 |
Balance | $ 100 |
TANGIBLE FIXED ASSETS (Details)
TANGIBLE FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | $ 1,445,022 | ||
Balance | 1,782,181 | $ 1,445,022 | |
Prepayments On Vessels [Abstract] | |||
Balance | 45,491 | 88,400 | |
Balance | 95,003 | 45,491 | $ 88,400 |
Vessels and capitalized dry docking | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 1,396,600 | 1,294,500 | |
Balance | 1,674,800 | 1,396,600 | 1,294,500 |
Prepayments On Vessels [Abstract] | |||
Balance | 45,500 | 88,400 | 44,100 |
Additions | 301,800 | 38,900 | 44,300 |
Transferred to/from other items | (252,300) | (81,800) | 0 |
Balance | 95,000 | 45,500 | 88,400 |
Vessels and capitalized dry docking | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 1,886,300 | 1,726,600 | 1,697,400 |
Additions | 81,300 | 162,700 | 103,100 |
Disposals | (25,600) | (30,200) | (14,300) |
Transferred from prepayments | 252,300 | 81,800 | |
Transferred to assets held-for-sale | (130,100) | (54,600) | (59,600) |
Balance | 2,064,200 | 1,886,300 | 1,726,600 |
Vessels and capitalized dry docking | Depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 327,600 | 264,800 | 180,000 |
Disposals | (25,600) | (30,200) | (14,300) |
Depreciation for the year | 106,500 | 113,400 | 113,600 |
Transferred to assets held-for-sale | (47,900) | (20,400) | (14,500) |
Balance | 360,600 | 327,600 | 264,800 |
Vessels and capitalized dry docking | Accumulated impairment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 162,100 | 167,300 | 173,600 |
Impairment losses on tangible fixed assets | 6,000 | 3,200 | 3,600 |
Transferred to assets held-for-sale | (19,300) | (8,400) | (9,900) |
Reversal of impairment 1) | (120,000) | ||
Balance | 28,800 | 162,100 | 167,300 |
Other plant and operating equipment | |||
Prepayments On Vessels [Abstract] | |||
Balance | 3,000 | 1,900 | |
Balance | 4,300 | 3,000 | 1,900 |
Other plant and operating equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 5,800 | 3,600 | 2,700 |
Additions | 2,200 | 2,200 | 1,000 |
Adjustment on transition to IFRS 16 | 300 | ||
Disposals | (200) | 0 | (100) |
Balance | 5,800 | 3,600 | |
Prepayments On Vessels [Abstract] | |||
Balance | 5,800 | 3,600 | |
Balance | 8,100 | 5,800 | 3,600 |
Other plant and operating equipment | Depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 2,800 | 1,700 | 900 |
Disposals | 0 | 0 | (100) |
Depreciation for the year | 1,000 | 1,100 | 900 |
Balance | 3,800 | $ 2,800 | $ 1,700 |
Land and buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Balance | 8,100 | ||
Land and buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Additions | 500 | ||
Adjustment on transition to IFRS 16 | 9,900 | ||
Balance | 10,400 | ||
Land and buildings | Depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Depreciation for the year | 2,300 | ||
Balance | $ 2,300 |
TANGIBLE FIXED ASSETS - Additio
TANGIBLE FIXED ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense relates to administrative expense | $ 110,124 | $ 114,480 | $ 114,451 |
Vessels and capitalized dry docking | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Capitalized dry-docking costs | 60,700 | 67,500 | 68,100 |
Other plant and operating equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense relates to administrative expense | $ 1,000 | $ 1,100 | $ 900 |
LEASING - Right-of-use assets r
LEASING - Right-of-use assets recognized (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations for the year | $ 2.5 |
Vessels and capitalized dry-docking | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as of 1 January | 13.4 |
Balance as of 31 December | 26.9 |
Land and buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as of 31 December | 8.1 |
Other plant and operating equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as of 31 December | 0.4 |
Cost | Vessels and capitalized dry-docking | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance as of 1 January | 43.3 |
Additions | 1.8 |
Disposals | (2.7) |
Balance as of 31 December | 42.4 |
Cost | Land and buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Adjustment on transition to IFRS 16 | 9.9 |
Additions | 0.5 |
Balance as of 31 December | 10.4 |
Cost | Other plant and operating equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Adjustment on transition to IFRS 16 | 0.3 |
Additions | 0.4 |
Disposals | (0.1) |
Balance as of 31 December | 0.6 |
Depreciation | Vessels and capitalized dry-docking | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Disposals | (2.7) |
Depreciations for the year | 4.8 |
Balance as of 31 December | 15.5 |
Depreciation | Land and buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations for the year | 2.3 |
Balance as of 31 December | 2.3 |
Depreciation | Other plant and operating equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations for the year | 0.2 |
Balance as of 31 December | $ 0.2 |
LEASING - Nature of the Group's
LEASING - Nature of the Group's leasing activities by type of right-of-use asset recognized on the balance sheet (Details) | 12 Months Ended |
Dec. 31, 2019Assetlease | |
Vessels and capitalized dry-docking | |
Disclosure of quantitative information about right-of-use assets [line items] | |
No. of right-of-use assets leased | Asset | 3 |
Range of remaining term | 2 years |
Average remaining lease term | 2 years 3 months 18 days |
No. of leases with options to purchase | 3 |
No. of leases with termination options | 3 |
Land and buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
No. of right-of-use assets leased | Asset | 10 |
Average remaining lease term | 2 years 9 months 18 days |
No. of leases with extension options | 10 |
No. of leases with termination options | 2 |
Other plant and operating equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
No. of right-of-use assets leased | Asset | 19 |
Average remaining lease term | 1 year 3 months 18 days |
No. of leases with extension options | 19 |
No. of leases with termination options | 10 |
Minimum | Land and buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Range of remaining term | 0 years |
Minimum | Other plant and operating equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Range of remaining term | 0 years |
Maximum | Land and buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Range of remaining term | 9 years |
Maximum | Other plant and operating equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Range of remaining term | 3 years |
LEASING - Maturity analysis (De
LEASING - Maturity analysis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis of operating lease payments [line items] | |||
Total undiscounted lease liabilities | $ 35.2 | $ 30.8 | |
Lease liabilities included under "Borrowings" | 30.6 | $ 35.2 | 25.3 |
Non-current | 10.2 | 3.2 | |
Current | 20.4 | 22.1 | |
2020 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Total undiscounted lease liabilities | 7.5 | 5.2 | |
Between 1 and 5 years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Total undiscounted lease liabilities | 27.6 | $ 25.6 | |
More than 5 years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Total undiscounted lease liabilities | $ 0.1 |
LEASING - Financial expenses (D
LEASING - Financial expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expenses: | |||
Financial expenses arising from lease liabilities regarding right-of-use assets | $ 2.4 | $ 2.3 | $ 1.8 |
Other financial expenses | 39.5 | 37 | 38.8 |
Total | $ 41.9 | $ 39.3 | $ 40.6 |
LEASING - Additional Informatio
LEASING - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Total outflow for leases | $ 2.9 | ||
Depreciation | 2.5 | ||
Financial expenses interest | 2.4 | $ 2.3 | $ 1.8 |
IAS 17 | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Financial expenses interest | $ 0.4 |
IMPAIRMENT TESTING (Details)
IMPAIRMENT TESTING (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
IMPAIRMENT TESTING | |||
Projected cash flows calculation period | 10 years | ||
Percentage of Inflation | 2.00% | ||
Impairment charge arising in current year | $ 71 | ||
Discount rate used in calculation based on a Weighted Average Cost of Capital (WACC) | 7.50% | 8.30% | 8.70% |
IMPAIRMENT TESTING - Historical
IMPAIRMENT TESTING - Historical average spot freight rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 17,986 | $ 18,003 | $ 17,216 |
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 | 17,060 | 16,907 | 16,445 |
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 | 15,802 | 15,349 | 15,794 |
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 | $ 13,601 | $ 13,968 | $ 14,416 |
IMPAIRMENT TESTING - Additional
IMPAIRMENT TESTING - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
IMPAIRMENT TESTING | ||
Reversal of impairment | $ 185,000 | |
Capped impairment of reversal | $ 120,000 | |
Adjustment of operating expenses for inflation, percentage | 2.00% | 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 | 15 years | |
Increase/decrease in tanker per day freight rates | $ 1,000 | |
Increase/decrease in value in use of freight rates | $ 257,000 | |
Increase/decrease in WACC percentage | 1.00% | |
Decrease/increase in value in use of WACC | USD 108-122m | |
Increase/decrease in operating expenses percentage | 10.00% | |
Decrease/increase in value in use of operating expenses | $ 181,000 | |
Increase in the long term scrubber premium percentage | 75.00% | |
Decrease in the long term scrubber premium percentage | 25.00% | |
Increase/decreae in value of scrubber premium | $ 73,000 | |
Difference of market value and carrying amount | $ 71,000 | |
Market value based on broker values of vessels | $ 1,785,000 |
FINANCIAL ITEMS (Details)
FINANCIAL ITEMS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial income | |||
Interest income from cash and cash equivalents, including restricted cash | $ 2,500 | $ 2,700 | $ 1,600 |
Exchange rate adjustments, including gain from forward exchange rate contracts | 300 | 600 | 2,700 |
Total | 2,796 | 3,302 | 4,255 |
Financial expenses | |||
Interest expenses on mortgage and bank debt | 39,300 | 35,700 | 33,300 |
Exchange rate adjustments, including loss from forward exchange rate contracts | 200 | 100 | 3,200 |
Commitment fee | 1,900 | 2,600 | 2,400 |
Other financial expenses | 500 | 900 | 1,700 |
Total | 41,881 | 39,345 | 40,601 |
Total financial items | $ (39,100) | $ (36,000) | $ (36,300) |
FREIGHT RECEIVABLES (Details)
FREIGHT RECEIVABLES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | $ 89.9 | $ 86 | $ 71.3 | |
Cost | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 93.6 | 87.7 | 72.6 | |
Accumulated impairment | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 3.7 | 1.7 | 1.3 | $ 2.6 |
Financial assets not yet due | Cost | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 39.8 | 44 | 25.5 | |
Financial assets past due but not impaired | Due before 30 days | Cost | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 22.5 | 18.8 | 26 | |
Financial assets past due and impaired | Due between 30 and 180 days | Cost | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | 25.3 | 20.5 | 18.4 | |
Financial assets past due and impaired | Due after 180 days | Cost | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total net | $ 6 | $ 4.4 | $ 2.7 |
FREIGHT RECEIVABLES - Movements
FREIGHT RECEIVABLES - Movements in provisions for impairment of freight receivables - Movements in provisions for impairment of freight receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial assets [line items] | |||
Balance at beginning of period | $ 86 | $ 71.3 | |
Balance at end of period | 89.9 | 86 | $ 71.3 |
Accumulated impairment | |||
Disclosure of financial assets [line items] | |||
Balance at beginning of period | 1.7 | 1.3 | 2.6 |
Adjustment to prior years | 1.5 | ||
Provisions for the year | 2.4 | 1.7 | 0.6 |
Provisions reversed during the year | (1.9) | (1) | (1.9) |
Provisions utilized during the year | 0 | (0.3) | 0 |
Balance at end of period | $ 3.7 | $ 1.7 | $ 1.3 |
FREIGHT RECEIVABLES - Additiona
FREIGHT RECEIVABLES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Receivables individually determined to be impaired | $ 89.9 | $ 86 | $ 71.3 | |
Later than one year [member] | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Percentage of expected credit loss | 100.00% | |||
Maximum | Later than six months and not later than one year [member] | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Percentage of expected credit loss | 100.00% | |||
Minimum | Later than six months and not later than one year [member] | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Percentage of expected credit loss | 25.00% | |||
Accumulated impairment | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Receivables individually determined to be impaired | $ 3.7 | 1.7 | 1.3 | $ 2.6 |
Financial assets individually assessed for credit losses | Accumulated impairment | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Freight receivables included receivables | 0 | 0 | 0 | |
Receivables individually determined to be impaired | $ 0 | $ 0 | $ 0 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER RECEIVABLES | ||
Partners and commercial managements | $ 1,900 | |
Derivative financial instruments | 500 | $ 3,700 |
Tax receivables | 1,500 | 1,200 |
Other | 2,300 | 2,600 |
Balance as of 31 December | $ 6,168 | $ 7,488 |
TAX (Details)
TAX (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax for the year | |||
Current tax for the year | $ 1,200 | $ 1,600 | $ 1,000 |
Adjustments related to previous years | (400) | (100) | (100) |
Adjustment of deferred tax liability | 100 | (100) | |
Total | $ 784 | $ 1,558 | $ 777 |
TAX - The effective tax rate (D
TAX - The effective tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax liability | |||
Balance as of 1 January | $ 44.9 | $ 44.9 | $ 45 |
Deferred tax for the year | 0.1 | (0.1) | |
Adjustments related to previous years | 0 | (0.1) | 0 |
Balance as of 31 December | $ 44.9 | $ 44.9 | $ 44.9 |
TAX - Additional Information (D
TAX - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Effective tax rate | 0.50% | 4.70% | 24.40% |
COMMON SHARES AND TREASURY SH_3
COMMON SHARES AND TREASURY SHARES (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 74,748,250 | 74,218,848 | 62,298,848 |
A-shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 74,748,248 | 74,218,846 | 62,298,846 |
B-shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 1 | 1 | 1 |
C-shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 1 | 1 | 1 |
COMMON SHARES AND TREASURY SH_4
COMMON SHARES AND TREASURY SHARES - Issued warrants (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
COMMON SHARES AND TREASURY SHARES | |||
Balance as of 1 January | 312,871 | 312,871 | 312,900 |
Additions | 0 | 0 | 0 |
Cancellations | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Balance as of 31 December | 312,871 | 312,871 | 312,871 |
Balance as of 1 January | $ 3,100 | $ 3,100 | $ 3,100 |
Additions | 0 | 0 | 0 |
Cancellations | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Balance as of 31 December | $ 3,100 | $ 3,100 | $ 3,100 |
Balance as of 1 January | 0.40% | 0.50% | 0.50% |
Additions | 0.00% | 0.00% | 0.00% |
Cancellations | (0.00%) | (0.00%) | (0.00%) |
Disposals | 0.00% | 0.00% | 0.00% |
Dilution, due to capital increases | 0.00% | (0.10%) | 0.00% |
Balance as of 31 December | 0.40% | 0.40% | 0.50% |
COMMON SHARES AND TREASURY SH_5
COMMON SHARES AND TREASURY SHARES - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)item$ / sharesVoteshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | |
COMMON SHARES AND TREASURY SHARES | ||||
Share capital | $ 747,000 | $ 742,000 | ||
Number of votes in share capital | Vote | 350,000,000 | |||
Maximum portion of aggregate issued and outstanding shares for holding rights as per written notification | 0.33 | |||
Number of days elapsed from written notice of Board of Directors receipt | 5 days | |||
Minimum number of board members confirming written notice | item | 0.66 | |||
Total consideration for the treasury shares | $ 0 | $ 0 | $ 0 | |
Number of treasury shares held | shares | 312,871 | 312,871 | 312,871 | 312,900 |
Nominal value per treasury share | 0.01 | 0.01 | 0.01 | |
Nominal value of treasury shares held | $ 3,100 | $ 3,100 | $ 3,100 | $ 3,100 |
Market value of treasury shares held | $ 3,500,000 | $ 2,100,000 | $ 2,700,000 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER LIABILITIES | ||
Partners and commercial managements | $ 500 | $ 1,200 |
Accrued operating expenses | 14,100 | 9,100 |
Accrued interest | 4,000 | 4,600 |
Wages and social expenses | 14,300 | 16,100 |
Derivative financial instruments | 12,300 | 3,400 |
Payables to joint ventures | 100 | 100 |
Other | 2,000 | 2,000 |
Balance as of 31 December | $ 47,316 | $ 36,503 |
EFFECTIVE INTEREST RATE, OUTS_3
EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Weighted average effective interest rate | 4.90% | 5.80% | 5.20% |
Carrying value | $ 854.7 | $ 754.8 | $ 747.3 |
Hereof non-current | 756 | 659.4 | |
Hereof current | $ 98.7 | $ 95.4 | $ 95.7 |
Floating interest rate | DSF Facility 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2021 | 2021 | 2021 |
Weighted average effective interest rate | 4.70% | 5.60% | 5.40% |
Carrying value | $ 50 | $ 64.1 | $ 74.2 |
Floating interest rate | TFA Facility 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2021 | 2021 | 2021 |
Weighted average effective interest rate | 5.10% | 6.00% | 5.00% |
Carrying value | $ 237.3 | $ 331.3 | $ 400.8 |
Floating interest rate | DSF Facility 2 | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2021 | 2021 | 2021 |
Weighted average effective interest rate | 4.70% | 5.60% | 5.00% |
Carrying value | $ 48.2 | $ 52.4 | $ 56.5 |
Floating interest rate | DSF Facility 3 | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2022 | 2022 | 2022 |
Weighted average effective interest rate | 4.70% | 5.60% | 5.10% |
Carrying value | $ 21.8 | $ 24.3 | $ 26.8 |
Floating interest rate | TFA Facility 2 | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2022 | 2022 | 2022 |
Weighted average effective interest rate | 5.10% | 5.40% | 5.40% |
Carrying value | $ 75.2 | $ 103.7 | $ 115 |
Floating interest rate | ING | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2024 | 2024 | 2024 |
Weighted average effective interest rate | 4.10% | 4.60% | 4.60% |
Carrying value | $ 35.5 | $ 42 | $ 45.8 |
Floating interest rate | CEXIM | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2030 | 2030 | - |
Weighted average effective interest rate | 4.40% | 5.30% | 0.00% |
Carrying value | $ 104 | $ 111.7 | $ 0 |
Floating interest rate | ABN AMRO | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2024 | - | - |
Weighted average effective interest rate | 4.20% | ||
Carrying value | $ 21.1 | ||
Floating interest rate | DSF Facility 4 | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2026 | - | - |
Weighted average effective interest rate | 4.40% | ||
Carrying value | $ 86.5 | ||
Floating interest rate | Bocomm | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2025 | - | - |
Weighted average effective interest rate | 5.50% | ||
Carrying value | $ 63.9 | ||
Floating interest rate | Eifuku | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2026 | - | - |
Weighted average effective interest rate | 5.30% | ||
Carrying value | $ 25.7 | ||
Floating interest rate | Showa | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Floating | ||
Maturity | 2024 | - | - |
Weighted average effective interest rate | 5.10% | ||
Carrying value | $ 25.2 | ||
Fixed interest rate | Springliner | |||
Disclosure of detailed information about borrowings [line items] | |||
Fixed/floating | Fixed | ||
Maturity | 2026 | 2022 | 2022 |
Weighted average effective interest rate | 5.50% | 8.90% | 8.90% |
Carrying value | $ 60.3 | $ 25.3 | $ 28.2 |
COLLATERAL SECURITY FOR BORRO_2
COLLATERAL SECURITY FOR BORROWINGS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
COLLATERAL SECURITY FOR BORROWINGS | ||
Carrying amount for vessels as collateral security | $ 1,675 | $ 1,314 |
GUARANTEE COMMITMENTS AND CON_2
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES | ||
Guarantee commitments of the Group to Danish Shipowners' Association | $ 0.1 | $ 0.1 |
CONTRACTUAL RIGHTS AND OBLIGA_3
CONTRACTUAL RIGHTS AND OBLIGATIONS - Contractual obligations (Details) $ in Millions | Dec. 31, 2019USD ($) |
Contractual Obligations [Line Items] | |
Borrowings | $ 863.4 |
Interest payments related to scheduled interest fixing | 97.2 |
Estimated variable interest payments | 34.1 |
Newbuilding installments | 51.2 |
Committed scrubber installations | 32 |
Trade payables and other obligations | 76.3 |
Total | 1,155.2 |
2020 | |
Contractual Obligations [Line Items] | |
Borrowings | 101.2 |
Interest payments related to scheduled interest fixing | 33.8 |
Estimated variable interest payments | 4.3 |
Newbuilding installments | 51.2 |
Committed scrubber installations | 32 |
Trade payables and other obligations | 76.3 |
Total | 298.8 |
2021 | |
Contractual Obligations [Line Items] | |
Borrowings | 326.9 |
Interest payments related to scheduled interest fixing | 25.4 |
Estimated variable interest payments | 6.7 |
Newbuilding installments | 0 |
Committed scrubber installations | 0 |
Trade payables and other obligations | 0 |
Total | 359 |
2022 | |
Contractual Obligations [Line Items] | |
Borrowings | 119.5 |
Interest payments related to scheduled interest fixing | 13.1 |
Estimated variable interest payments | 4.4 |
Newbuilding installments | 0 |
Committed scrubber installations | 0 |
Trade payables and other obligations | 0 |
Total | 137 |
2023 | |
Contractual Obligations [Line Items] | |
Borrowings | 30.8 |
Interest payments related to scheduled interest fixing | 10 |
Estimated variable interest payments | 3.6 |
Newbuilding installments | 0 |
Committed scrubber installations | 0 |
Trade payables and other obligations | 0 |
Total | 44.4 |
2024 | |
Contractual Obligations [Line Items] | |
Borrowings | 82.8 |
Interest payments related to scheduled interest fixing | 8 |
Estimated variable interest payments | 3.5 |
Newbuilding installments | 0 |
Committed scrubber installations | 0 |
Trade payables and other obligations | 0 |
Total | 94.3 |
Thereafter | |
Contractual Obligations [Line Items] | |
Borrowings | 202.2 |
Interest payments related to scheduled interest fixing | 6.9 |
Estimated variable interest payments | 11.6 |
Newbuilding installments | 0 |
Committed scrubber installations | 0 |
Trade payables and other obligations | 0 |
Total | $ 220.7 |
CONTRACTUAL RIGHTS AND OBLIGA_4
CONTRACTUAL RIGHTS AND OBLIGATIONS - Reconciliation of liabilities arising from financing activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Opening balance | $ 749.6 | $ 749.1 |
Cash - Borrowings | 261.8 | 114.5 |
Cash - Repayments | (169.2) | (113.7) |
Cash - Other changes | 13.2 | (0.3) |
End balance | 855.4 | 749.6 |
Borrowings | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Opening balance | 749.6 | |
Cash - Borrowings | 261.8 | |
Cash - Repayments | (169.2) | |
Cash - Other changes | 13.2 | |
End balance | $ 855.4 | $ 749.6 |
CONTRACTUAL RIGHTS AND OBLIGA_5
CONTRACTUAL RIGHTS AND OBLIGATIONS - Contractual rights (Details) $ in Millions | Dec. 31, 2019USD ($) |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | $ 13.7 |
2020 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 12.6 |
2021 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 1.1 |
2022 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
2023 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
2024 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
Thereafter | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
Vessel [Member] | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 13.7 |
Vessel [Member] | 2020 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 12.6 |
Vessel [Member] | 2021 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 1.1 |
Vessel [Member] | 2022 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
Vessel [Member] | 2023 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
Vessel [Member] | 2024 | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | 0 |
Vessel [Member] | Thereafter | |
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [LineItems] | |
Charter hire income for vessels | $ 0 |
CONTRACTUAL RIGHTS AND OBLIGA_6
CONTRACTUAL RIGHTS AND OBLIGATIONS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Contractual Obligations [Line Items] | |||
Direct issuance costs for borrowings | $ 8 | $ 5.1 | |
Borrowing costs capitalized | 5.8 | 1.1 | |
Lease liabilities included under "Borrowings" | $ 30.6 | $ 25.3 | $ 35.2 |
Average period until redelivery of the vessels | 1 year | 9 months 18 days | |
Land and buildings and other plant and operating equipment | |||
Contractual Obligations [Line Items] | |||
Lease liabilities included under "Borrowings" | $ 0 | $ 8.7 | |
Vessels and capitalized dry-docking | |||
Contractual Obligations [Line Items] | |||
Lease liabilities included under "Borrowings" | $ 21.9 | $ 25.3 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | $ (11.8) | $ 0.3 |
Forward freight agreements | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | (0.3) | 0.5 |
Bunker swaps | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | (1.2) | |
Forward exchange contracts (USD/DKK) | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | (0.4) | (1.8) |
Interest rate swaps | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of derivatives as of 31 December | $ (11.1) | $ 2.8 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of offsetting (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Gross amount | $ 0.7 | $ 7.1 |
Offsetting amount | (0.2) | (3.4) |
Net amount presented in the statement of financial position | 0.5 | 3.7 |
Financial liabilities | ||
Gross amount | 12.5 | 6.8 |
Offsetting amount | (0.2) | (3.4) |
Net amount presented in the statement of financial position | $ (12.3) | $ (3.4) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Notional values (Details) kr in Millions | 12 Months Ended | |||||
Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017DKK (kr) | Dec. 31, 2017USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Average hedge USD/DKK | 65 | 65 | ||||
Average interest rate (as a percent) | 2.33% | 2.04% | 2.33% | 2.04% | ||
Average price of the hedging instrument | 652,000,000 | 413.7 | ||||
Forward exchange contracts (USD/DKK) | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | kr | kr 222.5 | kr 250 | kr 257 | |||
Forward exchange contracts (USD/DKK) | 2020 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | kr | kr 222.5 | kr 250 | ||||
Interest rate swaps | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | $ 597,800,000 | $ 512,800,000 | $ 406,400,000 | |||
Interest rate swaps | 2020 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | 120,500,000 | 46,600,000 | ||||
Interest rate swaps | 2021 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | 239,500,000 | 160,900,000 | ||||
Interest rate swaps | After 2021 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | 237,800,000 | 305,300,000 | ||||
Bunker swaps | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | 4,725,000,000 | $ 10,400,000,000 | ||||
Bunker swaps | 2020 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional value | $ 4,725,000,000 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) kr in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019DKK (kr) | Dec. 31, 2019USD ($) | Dec. 31, 2018DKK (kr) | Dec. 31, 2018USD ($) | Dec. 31, 2017DKK (kr) | Dec. 31, 2017USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |||||||||
Cash collateral | $ 13 | $ 3.5 | |||||||
Bunker swaps | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Notional amount | 4,725 | 10,400 | |||||||
Forward exchange contracts (USD/DKK) | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Fair value of derivatives net gain (loss) of a previously fixed hedge | (0.4) | ||||||||
Notional amount | kr | kr 222.5 | kr 250 | kr 257 | ||||||
Interest rate swaps | |||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||
Fair value of derivatives net gain (loss) of a previously fixed hedge | (11.1) | ||||||||
Notional amount | $ 597.8 | $ 512.8 | $ 406.4 | ||||||
Fair value adjustments on hedging instruments | $ (11.7) | $ (13) | $ (0.7) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Fair value adjustments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Hedging reserves | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in other comprehensive income | $ (12) | $ (7.1) | $ 6.8 |
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | (11.8) | 0.3 | 7.3 |
Revenue | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0.4 | (2.1) | 0.5 |
Port expenses, bunkers and commissions | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (0.1) | 1.1 | 1.2 |
Financial items | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 2.1 | 1 | (3.4) |
Staff costs included in operating expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (2) | 0.1 | 0.3 |
Staff costs included in administrative expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (1.5) | 0.2 | 0.2 |
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 other comprehensive income | (0.5) | 0.9 | (0.3) |
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | 0 | 0.5 | (0.4) |
Forward freight agreements | Revenue | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0.4 | (2.1) | 0.5 |
Forward freight agreements | Port expenses, bunkers and commissions | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Forward freight agreements | Financial items | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Forward freight agreements | Staff costs included in operating expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Forward freight agreements | Staff costs included in administrative expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 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 other comprehensive income | 0.9 | (2) | 0 |
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | (0.3) | (1.2) | 0.8 |
Bunker swaps | Revenue | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (0.1) | 1.1 | 1.2 |
Bunker swaps | Port expenses, bunkers and commissions | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (0.1) | 1.1 | 1.2 |
Bunker swaps | Financial items | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Bunker swaps | Staff costs included in operating expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Bunker swaps | Staff costs included in administrative expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 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 other comprehensive income | 1.4 | (3.7) | 4.4 |
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | (0.4) | (1.8) | 1.8 |
Forward exchange contracts | Revenue | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Forward exchange contracts | Port expenses, bunkers and commissions | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Forward exchange contracts | Financial items | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Forward exchange contracts | Staff costs included in operating expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (2) | 0.1 | 0.3 |
Forward exchange contracts | Staff costs included in administrative expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | (1.5) | 0.2 | 0.2 |
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 other comprehensive income | (13.8) | (2.3) | 2.7 |
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity | (11.1) | 2.8 | 5.1 |
Interest rate swaps | Revenue | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Interest rate swaps | Port expenses, bunkers and commissions | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Interest rate swaps | Financial items | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 2.1 | 1 | (3.4) |
Interest rate swaps | Staff costs included in operating expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | 0 | 0 | 0 |
Interest rate swaps | Staff costs included in administrative expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value adjustments of derivative financial instruments designated as hedge recognized in income statements | $ 0 | $ 0 | $ 0 |
RISKS ASSOCIATED WITH TORM'S _3
RISKS ASSOCIATED WITH TORM'S ACTIVITIES - Freight rate fluctuations (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)T | Dec. 31, 2018USD ($)T | Dec. 31, 2017USD ($)T | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of freight earnings derived from tankers secured by agreements | 9.50% | 13.10% | 12.50% |
Percentage of physical time charter contracts accounted for overall hedging | 59.30% | 62.80% | 60.70% |
Percentage of coverage | 8.60% | 9.90% | 13.30% |
Long Position [Member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Notional contract value of derivative | $ | $ 22.5 | $ 18.8 | $ 12.2 |
Notional contract volume | T | 1,295,000 | 1,447,000 | 530,000 |
Short Position | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Notional contract value of derivative | $ | $ 34.9 | $ 39.6 | $ 44.2 |
Notional contract volume | T | 1,585,190 | 2,683,000 | 1,754,000 |
Cargo contracts and time charte ragreements | Maximum | |||
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 | Minimum | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 36 months | ||
Forward freight agreements | Maximum | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 0 months | ||
Forward freight agreements | Minimum | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Coverage period under agreement | 24 months |
RISKS ASSOCIATED WITH TORM'S _4
RISKS ASSOCIATED WITH TORM'S ACTIVITIES - Changes in freight rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Decrease in freight rates of USD/day 1,000: | |||
Changes in profit/loss before tax for the following year | $ (25.3) | $ (24.1) | |
Changes in equity for the following year | $ (25.3) | $ (24.1) | |
Sensitivity to changes | |||
Decrease in freight rates of USD/day 1,000: | |||
Changes in profit/loss before tax for the following year | $ (25.4) | ||
Changes in equity for the following year | $ (25.4) |
RISKS ASSOCIATED WITH TORM'S _5
RISKS ASSOCIATED WITH TORM'S ACTIVITIES - Changes in the bunker price (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase in the bunker prices of 10% per ton: | |||
Changes in profit/loss before tax for the following year | $ (20.7) | $ (18.3) | |
Changes in equity for the following year | $ (20.7) | $ (18.3) | |
Sensitivity to changes | |||
Increase in the bunker prices of 10% per ton: | |||
Changes in profit/loss before tax for the following year | $ (19.8) | ||
Changes in equity for the following year | $ (19.8) |
RISKS ASSOCIATED WITH TORM'S _6
RISKS ASSOCIATED WITH TORM'S ACTIVITIES - Changes in the USD/DKK and USD/EUR exchange rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of a 10% increase of DKK and EUR: | |||
Changes in profit/loss before tax for the following year | $ (2.1) | $ (2.5) | |
Changes in equity for the following year | $ (2.1) | $ (2.5) | |
Sensitivity to changes | |||
Effect of a 10% increase of DKK and EUR: | |||
Changes in profit/loss before tax for the following year | $ (2) | ||
Changes in equity for the following year | $ (2) |
RISKS ASSOCIATED WITH TORM'S _7
RISKS ASSOCIATED WITH TORM'S ACTIVITIES - Changes in the interest rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of a 1%-point increase in interest rates: | |||
Changes in profit/loss before tax for the following year | $ (2.4) | $ (3.2) | |
Changes in equity for the following year | $ 8 | $ 3.6 | |
Sensitivity to changes | |||
Effect of a 1%-point increase in interest rates: | |||
Changes in profit/loss before tax for the following year | $ (3) | ||
Changes in equity for the following year | $ 7.9 |
RISKS ASSOCIATED WITH TORM'S _8
RISKS ASSOCIATED WITH TORM'S ACTIVITIES - Additional Information (Details) kr in Millions | 12 Months Ended | |||
Dec. 31, 2020DKK (kr) | Dec. 31, 2019USD ($)companyitemT | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Freight rate change | $ 1,000 | |||
Carrying value of fleet | 1,674,800,000 | $ 1,396,500,000 | ||
Market value of fleet (excluding undelivered newbuildings) | $ 1,632,600,000 | $ 1,322,100,000 | ||
Threshold percentage of total voyage costs as cost of fuel oil consumed by vessels | 61.10% | 60.80% | 55.30% | |
Percentage of bunker consumption hedged | 6.50% | 4.80% | 3.30% | |
Percentage of bunker requirements for hedging instruments | 2.60% | 2.00% | 2.10% | |
Number of bunker requirements covered for hedging instruments | T | 13,590 | |||
Estimated total number of bunker requirements for hedging instruments | T | 529,852 | |||
Percentage of sensitivity to changes in the bunker prices | 10.00% | |||
Number of Protection and Indemnity club | item | 2 | |||
Aggregate insured value of hull and machinery and interest for TORM's owned vessels | $ 1,800,000,000 | $ 1,500,000,000 | $ 1,400,000,000 | |
Percentage of freight revenues | 17.00% | |||
Average percentage of demurrage | 98.70% | 98.10% | 97.00% | |
Percentage of total freight revenues as demurrage | 13.10% | 13.30% | 13.20% | |
Percentage of forward freight agreements (FFAs) and fuel swaps | 100.00% | 100.00% | 100.00% | |
Percentage of administrative expenses denominated in currencies other than USD | 98.30% | 98.30% | 97.90% | |
Percentage of operating expenses denominated in currencies other than USD | 20.10% | 23.40% | 24.50% | |
Percentage of administrative and operating expenses denominated in currencies in DKK and EUR | 63.00% | 64.10% | 62.00% | |
Percentage of exposure to interest rate risk | 72.90% | 66.20% | 63.20% | |
Total interest expense exposure | $ 37,400,000 | |||
Notional value of interest rate hedges covering | 597,800,000 | |||
Liquidity reserve in cash | 72,000,000 | $ 127,000,000 | $ 134,000,000 | |
Undrawn credit facilities | $ 246,000,000 | |||
Currency risk | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Closing foreign exchange rate | 6.5 | |||
Forecast | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Administrative and operating expenses | kr | kr 353.1 | |||
Maximum | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Number of companies to diversify risk | company | 16 | |||
Minimum | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Number of companies to diversify risk | company | 14 | |||
Working capital facility | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Undrawn credit facilities | $ 75,000,000 |
FINANCIAL INSTRUMENTS - Fair va
FINANCIAL INSTRUMENTS - Fair value measurement of assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | $ 0.5 | $ 3.7 |
Financial assets at amortised cost | 172.6 | 217.2 |
Financial assets | 173.1 | 220.9 |
Financial liabilities, at fair value | 12.3 | 3.4 |
Financial liabilities at amortised cost | 937.5 | 817.8 |
Financial liabilities | 949.8 | 821.2 |
Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Financial liabilities at amortised cost | 855.4 | 749.6 |
Financial liabilities | 855.4 | 749.6 |
Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Financial liabilities at amortised cost | 47.1 | 35.1 |
Financial liabilities | 47.1 | 35.1 |
Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 12.3 | 3.4 |
Financial liabilities at amortised cost | 35 | 33.1 |
Financial liabilities | 47.3 | 36.5 |
Loans and receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | |
Financial liabilities at amortised cost | 4.6 | |
Financial liabilities | 4.6 | |
Freight receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 0 |
Financial assets at amortised cost | 89.8 | 86 |
Financial assets | 89.8 | 86 |
Other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0.5 | 3.7 |
Financial assets at amortised cost | 5.7 | 3.8 |
Financial assets | 6.2 | 7.5 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 0 |
Financial assets at amortised cost | 72.5 | 127.4 |
Financial assets | 72.5 | 127.4 |
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 | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 1 | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 1 | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 1 | Loans and receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | |
Level 1 | Freight receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 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 | 0 | 0 |
Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0.5 | 3.7 |
Financial liabilities, at fair value | 12.3 | 3.4 |
Level 2 | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 2 | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 2 | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 12.3 | 3.4 |
Level 2 | Loans and receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortised cost | 0 | |
Level 2 | Freight receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 0 |
Level 2 | Other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0.5 | 3.7 |
Level 2 | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 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 | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 3 | Trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 3 | Other liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Level 3 | Loans and receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | |
Level 3 | Freight receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 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 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
joint venture | |
Disclosure of transactions between related parties [line items] | |
Amount of total cost for fleet | $ 26.1 |
ASSETS HELD FOR SALE AND NON-_2
ASSETS HELD FOR SALE AND NON-CURRENT ASSETS SOLD DURING THE YEAR (Details) - Non-current assets held for sale [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | |
Disclosure Of Information About Non Current Assets Held For Sale [Line Items] | |||
Number of vessels sold | 8 | 4 | 8 |
Number of vessels delivered to new owner | 7 | 3 | 4 |
Number of vessels expected to be delivered in Q1 | 1 | 1 | 1 |
Number of leased back vessel sold | 8 | ||
Number of remaining vessels sold | 3 | ||
Profit from sale of vessels | $ | $ 1.2 | $ 0.8 | $ 2.8 |
Impairment on sold or held-for-sale vessels | $ | 6 | $ 3.2 | $ 3.6 |
Proceed from leased back vessel sold | $ | $ 157.8 |
CASH FLOWS (Details)
CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reversal of other non-cash movements: | |||
Exchange rate adjustments | $ (900) | $ 0 | $ 1,800 |
Share-based payments | 1,900 | 2,000 | 1,900 |
Other adjustments | (100) | 0 | 0 |
Total | 900 | 2,000 | 3,700 |
Change in bunkers, receivables and payables: | |||
Change in bunkers | 5,100 | (6,200) | (1,600) |
Change in receivables | (2,500) | (10,400) | (12,400) |
Change in prepayments | (700) | 1,500 | (1,400) |
Change in trade payables and other liabilities | 22,800 | 11,700 | (1,600) |
Other changes | (800) | (2,200) | (2,900) |
Adjusted for fair value changes of derivative financial instruments | (12,000) | (7,100) | 6,900 |
Total | $ 11,858 | $ (12,668) | $ (12,996) |
ENTITIES IN THE GROUP (Details)
ENTITIES IN THE GROUP (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
DK Vessel HoldCo GP ApS | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | DK Vessel HoldCo GP ApS |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
DK Vessel HoldCo K/S | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | DK Vessel HoldCo K/S |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
OCM (Gibraltar) Njord Midco Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM (Gibraltar) Njord Midco Ltd 4) |
Country of incorporation of subsidiary | Gibraltar |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Chartering Inc | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Chartering Inc 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Agnes, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Agnes, Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Alice, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Alice, Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Almena, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Almena, Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Amalie, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Amalie, Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Aslaug, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Aslaug, Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Hardrada, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Hardrada, Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings St.Michaelis Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings St.Michaelis Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings St. Gabriel Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings St. Gabriel Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Gorm Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Gorm Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Knut Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Knut Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Valdemar Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Valdemar Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Agnete, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Agnete, Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Alexandra, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Alexandra, Pte. Ltd |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Anabel, Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Anabel, Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Arawa Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Arawa Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Singapore Njord Holdings Leif Pte. Ltd | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Singapore Njord Holdings Leif Pte. Ltd 3) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Holdings Mrs Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Holdings Mrs Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Anne Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Anne Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Freya Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Freya Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Gerd Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Gerd Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Gertrud Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Gertrud Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Gunhild Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Gunhild Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Helene Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Helene Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Helvig Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Helvig Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Ingeborg Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Ingeborg Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Mary Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Mary Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Ragnhild Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Ragnhild Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Thyra Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Thyra Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Valborg Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Valborg Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OCM Njord Vita Inc. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OCM Njord Vita Inc. 4) |
Country of incorporation of subsidiary | Marshall Islands |
Proportion of ownership interest in subsidiary | 100.00% |
OMI Holding Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | OMI Holding Ltd. |
Country of incorporation of subsidiary | Mauritius |
Proportion of ownership interest in subsidiary | 100.00% |
TORM Crewing Service Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | TORM Crewing Service Ltd. |
Country of incorporation of subsidiary | Bermuda |
Proportion of ownership interest in subsidiary | 100.00% |
TORM Shipping India Private Limited | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | TORM Shipping India Private Limited |
Country of incorporation of subsidiary | India |
Proportion of ownership interest in subsidiary | 100.00% |
TORM Singapore Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | TORM Singapore Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
TORM USA LLC | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | TORM USA LLC |
Country of incorporation of subsidiary | USA |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 1 K/S | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 1 K/S |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 3 K/S | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 3 K/S |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 5 K/S | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 5 K/S 1) |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 6 K/S | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 6 K/S 2) |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 6 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 6 Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 7 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 7 Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 8 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 8 Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 9 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 9 Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 10 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 10 Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 11 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 11 Pte. Ltd. |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo 12 Pte. Ltd. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo 12 Pte. Ltd. 1) |
Country of incorporation of subsidiary | Singapore |
Proportion of ownership interest in subsidiary | 100.00% |
TORM SHIPPING (PHILS.), INC. | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | TORM SHIPPING (PHILS.), INC. |
Country of incorporation of subsidiary | Philippines |
Proportion of ownership interest in subsidiary | 25.00% |
VesselCo A ApS | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo A ApS |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo C ApS | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo C ApS |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo E ApS | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo E ApS 1) |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
VesselCo F ApS | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | VesselCo F ApS 2) |
Country of incorporation of subsidiary | Denmark |
Proportion of ownership interest in subsidiary | 100.00% |
ENTITIES IN THE GROUP - Schedul
ENTITIES IN THE GROUP - Schedule of interest in legal entities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Entities [Line Items] | |||
Profit and loss from continuing operations | $ 166,022 | $ (34,779) | $ 2,407 |
Other comprehensive income | (11,661) | (7,419) | 7,279 |
Total comprehensive income | $ 154,361 | $ (42,198) | $ 9,686 |
Long Range 2 A/S | |||
Disclosure Of Entities [Line Items] | |||
Country | Denmark | ||
% Control | 50.00% | ||
Profit and loss from continuing operations | $ 0 | ||
Other comprehensive income | 0 | ||
Total comprehensive income | $ 0 | ||
LR2 Management K/S | |||
Disclosure Of Entities [Line Items] | |||
Country | Denmark | ||
% Control | 50.00% | ||
Profit and loss from continuing operations | $ 0 | ||
Other comprehensive income | 0 | ||
Total comprehensive income | $ 0 | ||
Marine Exhaust Technology Ltd. | |||
Disclosure Of Entities [Line Items] | |||
Country | Hong Kong | ||
% Control | 28.00% | ||
Profit and loss from continuing operations | $ 3,400 | ||
Other comprehensive income | 0 | ||
Total comprehensive income | $ 3,400 |
ENTITIES IN THE GROUP - Additio
ENTITIES IN THE GROUP - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
ENTITIES IN THE GROUP | |
Percentage of voting rights held in subsidiaries | 100.00% |
EARNINGS PER SHARE AND DIVIDE_3
EARNINGS PER SHARE AND DIVIDEND PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE AND DIVIDEND PER SHARE | |||
Net profit/(loss) for the year | $ 166 | $ (34.8) | $ 2.4 |
Weighted average number of shares | 74.3 | 73.4 | 62.3 |
Weighted average number of treasury shares | (0.3) | (0.3) | (0.3) |
Weighted average number of shares outstanding | 74 | 73.1 | 62 |
Dilutive effect of outstanding share options | 0 | 0 | 0 |
Weighted average number of shares outstanding incl. dilutive effect of share options | 74 | 73.1 | 62 |
Basic earnings/(loss) per share (USD) | $ 2.24 | $ (0.48) | $ 0.04 |
Diluted earnings/(loss) per share (USD) | $ 2.24 | $ (0.48) | $ 0.04 |
EARNINGS PER SHARE AND DIVIDE_4
EARNINGS PER SHARE AND DIVIDEND PER SHARE - Schedule of dividend per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DIVIDEND PER SHARE | |||
Dividend for the year | $ 7.4 | $ 0 | $ 1.2 |
Number of shares, end of period | 74.7 | 74.2 | 62.3 |
Dividend per share | $ 0.10 | $ 0 | $ 0.02 |