DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2019

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.