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CONTRACTUAL OBLIGATIONS
 12 Months Ended
Dec. 31, 2018
Disclosure Of Contractual Commitments [Abstract]  
CONTRACTUAL OBLIGATIONS

NOTE 17 – CONTRACTUAL OBLIGATIONS

 

TORM has various contractual obligations and commercial commitments to make future payments including lease obligations, purchase commitments, interest payments and repayment of mortgage debt and bank loans.

 

The following table summarizes the Group's contractual obligations as of 31 December 2018.

 

USDm       2019     2020     2021     2022     2023     Thereafter     Total  
Mortgage debt and bank loans   1)     92.2       87.6       343.4       96.9       10.0       99.4       729.5  
Interest payments related to scheduled interest fixing         21.9       19.4       16.0       7.7       6.2       9.7       80.9  
Estimated variable interest payments   2)     11.2       10.5       8.8       0.2       -0.6       8.7       38.8  
Finance lease liabilities         3.2       3.4       3.7       15.0       -       -       25.3  
Interest element regarding finance lease         2.0       1.7       1.4       0.3       -       -       5.4  
Newbuilding instalments   3)     232.4       25.6       -       -       -       -       258.0  
Committed scrubber installations         22.6       -       -       -       -       -       22.6  
Other operating leases   4)     2.8       1.2       0.9       0.9       0.4       -       6.2  
Trade payables and other obligations         59.3       -       -       -       -       -       59.3  
Total         447.6       149.4       374.2       121.0       16.0       117.8       1,226.0  

 

1) The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 5.1m (2017: USD 4.8m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 1.1m (2017: USD 3.5m).
2) Variable interest payments are estimated based on the forward rates for each interest period including hedging instruments.
3) As of 31 December 2018, TORM had nine contracted newbuildings (2017: ten) to be delivered during 2019-2020.
4) Other operating leases primarily consist of contracts regarding office spaces, cars and apartments as well as IT-related contracts. The leasing expense for 2018 amounts to USD 2.5m (2017: USD 2.3m) and is recognized under "Administrative expenses".

 

The following table summarizes the reconciliation of liabilities arising from financing activities:

 

          Cash     Non-cash        
USDm   Opening 
balance as of 1 
January 2018		     Borrowings     Repayments     Changes in fair 
value		     Other changes     End balance as 
of 31 December 
2018		  
Mortgage debt     720.9       114.5       -110.8       -       -0.3       724.3  
Financial lease     28.2       -       -2.9       -       -       25.3  
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 2018.

 

USDm       2019     2020     2021     2022     2023     Thereafter     Total  
Contractual rights - as lessor:                                                            
Charter hire income for vessels   6)     21.5       11.3       0.8       -       -       -       33.6  
Total         21.5       11.3       0.8       -       -       -       33.6  

 

6) 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 2018 is 0.8 year (2017: 1.1 years).