
USDm	2025	2024	2023
Disaggregation of revenue
Transportation of oil products and chemicals	1,314.2	1,544.0	1,491.4
Scrubbers and related services	18.7	9.1	21.7
Welding and mounting	4.3	4.9	5.3
Others	2.3	1.2	2.0
Total revenue	1,339.5	1,559.2	1,520.4
Tanker segment	1,314.2	1,544.0	1,491.4
Marine Engineering segment	37.2	29.6	48.0
Intersegment elimination	(11.9)	(14.4)	(19.0)
Total revenue	1,339.5	1,559.2	1,520.4


USDm	2025	2024	2023
Customer contract balances
Trade receivables	214.7	183.9	211.0
Customer contract assets¹⁾	1.6	2.4	2.5
Customer contract liabilities²⁾	(2.3)	(7.5)	(3.4)
Total	214.0	178.8	210.1

Refer to Note 14 for further information on trade receivables. Customer contract assets primarily relate to prepaid voyage expenses until

the cargo load date. During the year, $2.4m was recognized relating to customer contracts entered in 2024 (2024: $2.5m relating to

2023, 2023: $3.0m relating to 2022). Customer contract liabilities primarily relate to prepaid charter hire and prepayments received by

customers in connection with scrubber installations. The change in customer contract liabilities during the year is primarily caused by a

•The income generating activities have been carried out on the basis of a binding agreement

•It is probable that the economic benefits associated with the transaction will flow to the Company

Revenue comprises freight, charter hire, and demurrage revenue from the vessels as well as Marine Engineering revenue. Revenue is

recognized when or as performance obligations are satisfied by transferring services to the customer, i.e. over time, provided that the

stage of completion can be measured reliably. Revenue is measured as the consideration that the Group expects to be entitled to. Freight

revenue including charter hire and demurrage (and related voyage 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). 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 because the customer

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

When recognizing revenue, there is a risk that the actual number of days it takes to complete the voyage will differ from the estimate.

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

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, 97% of the demurrage claim submitted is recognized as demurrage revenue upon

initial recognition. For cross-over voyages, an estimate of incurred demurrage is recognized at the balance sheet date.

The Company receives the demurrage payment upon reaching final agreement on the amount, which could be up to approximately 100

days after the original demurrage claim was submitted. Any adjustments to the final agreement are recognized as demurrage revenue.

Some of the Group’s contracts with customers relate to the sale of marine engineering equipment with installation services. Customers

obtain control of the marine engineering equipment with installation services when the goods are delivered to the customer, they have

completed commissioning and delivery has been accepted by the customers. When without installation services, customers obtain

control of the marine engineering equipment when the goods are delivered to and have been accepted by the customers.

Revenue is thus recognized upon the customers obtaining control. There is generally only one performance obligation related hereto.

A warranty provision is recognized for expected repair costs related to warranty claims for sold marine engineering equipment within

the standard warranty period of one year. These provisions are recognized when the equipment is sold and are based on historical