TORM plc | CIK:0001655891 | 3

  • Filed: 4/9/2018
  • Entity registrant name: TORM plc (CIK: 0001655891)
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  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1655891/000091957418002899/0000919574-18-002899-index.htm
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    • ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory

    NOTE 19 – DERIVATIVE FINANCIAL INSTRUMENTS
     
    USDm
    2017
    2016
    Fair value of derivatives:
    		  
    Derivative financial instruments regarding freight and bunkers:
    		  
    Forward Freight Agreements
     -0.2
      -0.1
    Bunker swaps
    0.8
    0.8
       
    Derivative financial instruments regarding interest and currency exchange rate:
    		  
    Forward exchange contracts
     1.8
     -4.6
    Interest rate swaps
     5.1
    2.4
    Fair value of derivatives as of 31 December
    7.5
      -1.5
       
    Of which included in:
    		  
       
    Other receivables
    7.3
    3.3
    Other liabilities
     0.2
     -4.8
     
    Please refer to Note 21 "Financial Instruments" for further information on fair value hierarchies.
     
    Bunker swaps and forward freight agreements with a fair value of USD 0.6m (net) of a previously fixed hedge have been recognized in the income statement in 2017 (2016: USD 0.8m, 2015: USD -0.2m).
     
    Forward exchange contracts with a fair value of USD 1.8m are designated as hedge accounting relationships to hedge a part of TORM's payments in 2018 regarding administrative and operating expenses denominated in DKK with a notional value of DKK 257.0m (2016: DKK 336.4m, 2015: DKK 235.1m).
     
    Interest rate swaps with a fair value of USD 5.1m are designated as hedge accounting relationships to fix a part of TORM's interest payments during the period 2017 to 2022 with a notional value of USD 406.4m (2016: USD 373.8m, 2015: USD 382.3m).
     
    The table below shows realized amounts as well as fair value adjustments regarding derivative financial instruments recognized in the income statements and equity in 2017, 2016 and 2015.
     
     
    Income statement
    Equity
    USDm
    Revenue
    Port expenses, bunkers and commissions
    Financial items
    Hedging reserves
    2017
    		    
    Forward Freight Agreements
      0.5
      -
      -
      -0.3
    Bunker swaps
      -
    1.2
      -
      0.0
    Forward exchange contracts
      -
      -
    -1.4
      4.4
    Interest rate swaps
      -
      -
      -2.0
      2.7
    Total
      0.5
    1.2
      -3.4
      6.9
         
    2016
    		    
    Forward Freight Agreements
    -0.1
     -
     -
      -0.2
    Bunker swaps
     -
      0.0
     -
    1.0
    Forward exchange contracts
     -
     -
    0.1
      -3.4
    Interest rate swaps
     -
     -
      -2.9
    1.6
    Total
    -0.1
      0.0
      -2.8
    -1.0
         
    2015
    		    
    Forward Freight Agreements
      0.6
     -
     -
      0.0
    Bunker swaps
     -
      -0.9
     -
      -0.2
    Forward exchange contracts
     -
     -
     -
      0.8
    Interest rate swaps
     -
     -
     -
      0.8
    Total
      0.6
      -0.9
      -
    1.4
     
    Please refer to Note 20 for further information on commercial and financial risks.