| | | | | | | | |
Changes in liabilities arising from financing activities (USD 1 000) | | | | Foreign exchang e moveme nts | | | | |
| | | | | | | | |
Current interest- bearing loans and borrowings | | | | | | | | |
Current lease liabilities, right-of-use assets | | | | | | | | |
Non-current interest- bearing loans and borrowing | | | | | | | | |
Non-current lease liabilities, right-of-use assets | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total liabilities from financing activities | | | | | | | | |
Loans from associates and joint ventures classified as other current liabilities (see note 25) | | | | | | | | |
| | | | | | | | |
1) 1) Other includes movements between non-current and current liabilities due to the passage of time, approval of dividends, and effects of acquistions of a subsidiary formerly recognized as a joint venture. |
across all debt agreements. The Group shall at all times maintain free liquid assets of the minimum the higher of
USD 50 million and 6% of interest-bearing debt (excluding debts related to rights of use of assets). The Group's
leverage shall not at any time exceed 75% (excluding right-of-use assets and debts related to rights of use
assets).
The Group was in compliance with its financial covenants throughout 2022 and 2021.
Maturity of total debt as at December 31, 2022:
| | | | | | | |
| | | | | | | |
Mortgaged loans from financial institutions | | | | | | | |
Other financial liabilities | | | | | | | |
| | | | | | | |
Lease liabilities, right-of-use assets | | | | | | | |
| | | | | | | |
Estimated interest payable | | | | | | | |
| | | | | | | |
1)Values excluding hedging effects from interest and currency swaps which is recognized as derivative financial instruments in the
statement of financial position
Maturity of total debt as at December 31, 2021:
| | | | | | | |
| | | | | | | |
Mortgaged loans from financial institutions | | | | | | | |
Other financial liabilities | | | | | | | |
| | | | | | | |
Lease liabilities, right-of-use assets | | | | | | | |
| | | | | | | |
Estimated interest payable | | | | | | | |
| | | | | | | |
1)Values excluding hedging effects from interest and currency swaps which is recognized as derivative financial instruments in the
statement of financial position
The average maturity of the Group\u2019s total interest-bearing debt is 4.4 years (5.1 years in 2021). Average maturity
on mortgaged loans from financial institutions is 3.2 years (2.6 years in 2021), other financial liabilities mature on
average in 7.6 years (8.3 years in 2021) and unsecured bonds mature on average in 1.3 years (2.1 years in
2021).
Security for mortgaged loans from financial institutions is made through first priority vessel mortgage, Group
guarantees, and assignments of earnings and insurances covering the relevant vessels. Other financial liabilities
(financial leases) are secured by Group guarantees and assignment of earnings and insurances covering the
relevant vessels. Debts related to rights of use of assets are generally unsecured.
The table below provides an overview of the carrying amount of vessel financing and related assets:
| | |
| | |
Mortgaged loans from financial institutions | | |
Other financial liabilities | | |
Lease liabilities, right-of-use assets | | |
Nominal amount preferred vessel financing | | |
| | |
Carrying amount, assets under mortgaged loans | | |
Carrying amount, assets under other financial liabilities | | |
Carrying amount, right-of-use assets | | |
Total carrying amount of assets financed | | |
The Group's financial leases, presented under 'Other financial liabilities' above, vary from 5 to 14 years from
inception. In addition to the payment of hire, the Group has obligations relating to the insurance and
maintenance of the relevant vessels, similar to owning the vessels. Based on the terms of the agreement, they
are considered financial arrangements in accordance with IFRS 9. All financial leases have embedded purchase
options to the Group.
The table below summarizes total debt by currency:
1) Unsecured bonds, nominal amounts. Swapped to USD 213 million (USD 252 million in 2021)
Interest expenses on total debt:
| | |
| | |
Interest expense, interest-bearing debt | | |
Interest expense, right-of-use assets | | |
| | |
Note 9 Taxes
| | |
| | |
Change in deferred tax, Norway \u2013 ordinary tax | | |
Change in deferred tax, other jurisdictions | | |
Taxes payable, other jurisdictions | | |
| | |
Total tax income (expenses) | | |
| | |
| | |
| | |
Tax calculated at Odfjell\u2019s statutory income tax rate 22% | | |
| | |
Income and expenses not subject to tax | | |
Share of result from joint ventures and associates | | |
| | |
Non deductible expenses for tax purposes - impairment | | |
| | |
Deferred tax asset not recognized | | |
| | |
| | |
| | |
| | |
Specification of deferred taxes (deferred tax assets):
| | | | |
| | Change in temporary differences | | |
| | | | |
Financial instruments/finance items | | | | |
| | | | |
Long-term temporary differences | | | | |
| | | | |
Non-deductible interest carried forward | | | | |
Total negative temporary differences | | | | |
| | | | |
Differences related to depreciation of non-current assets | | | | |
Deferred gain related to sale of non-current assets | | | | |
Differences related to long-term debt | | | | |
Total positive temporary differences | | | | |
| | | | |
Net temporary differences | | | | |
Temporary differences not accounted for 1) | | | | |
Temporary differences \u2013 basis for calculation of deferred tax | | | | |
| | | | |
Deferred tax liability (asset) in statement of financial position 2) | | | | |
| | | | |
1) This applies to temporary differences for companies with losses where deferred tax assets are not recognized.
2) For 2022 and 2021 this is classified as a deferred tax asset and deferred tax liability
The Group\u2019s Norwegian companies have a total loss carried forward of USD 234 million at December 31, 2022
(USD 255 million in 2021), that is available indefinitely to offset against future taxable profits of the companies in
which the losses arose. Tax Group contributions are also available within the same country and within the same
tax regime.
Deferred tax assets are not recognized for companies where there is uncertainty regarding the future utilisation
of temporary differences.
Any distribution of dividend to Odfjell SE\u2019s shareholders does not affect the Company\u2019s payable or deferred tax.
Note 10 Pension liabilities
The Group operates different types of pension schemes for the employees.
Defined benefit plan expenses
| | |
| | |
Defined benefit plan cost - Overseas offices | | |
| | |
Defined contribution plan expenses
| | |
| | |
Defined contribution cost - Norway | | |
Defined contribution cost \u2013 overseas offices | | |
| | |
| | |
In the Norwegian companies all employees are included in a defined contribution plan. The Odfjell Group pays a
fixed percentage of the salary as contribution to the plan limited to 12 times the base amount (G). In addition,
Executive Management are entitled to additional annual contribution limited to 18G. Several of the Group foreign
subsidiaries have defined contribution plans in accordance with local legislation.
Pension liabilities
| | |
| | |
Executive Management - Norway | | |
| | |
| | |
| | |
Some of the Group\u2019s Norwegian subsidiaries are bound to have mandatory occupational pension scheme
pursuant to the Norwegian law of Occupational pension scheme. The Group's pension scheme meets the
requirements of this Act.
Other pension liabilities for employees in Norway relates to defined contribution (12G-18G) not paid, and 'other
Norway' relates to fully vested contribution for former employees.
In 2022, the additional pension contribution payment (18G) to Executive Management was secured by payment
to an insurance company instead of holding a secured bank account. Bank deposit was transferred to the
insurance company and the pension liability removed from the balance sheet. The contribution / benefit was not
changed. 'Other - Norway' in the table above relates to one former employee. For pension expenses for the
Executive Management, see note 21.
Note 11 Property, plant and equipment
| | | | | |
| | Ships and newbuilding contracts | | | |
Net carrying amount January 1, 2021 | | | | | |
| | | | | |
| | | | | |
Assets from acquistion of Odfjell Gas | | | | | |
| | | | | |
| | | | | |
Reclassified to assets held for sale (book value) | | | | | |
Net carrying amount December 31, 2021 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net carrying amount December 31, 2022 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net carrying amount January 1, 2021 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Reclassified to assets held for sale | | | | | |
Net carrying amount December 31, 2021 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net carrying amount December 31, 2022 | | | | | |
1) Refer to note 13 for details on impairment recognized in 2021. Depreciation periods
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows
(in years):
| |
| |
| |
Periodic maintenance of ships | |
| |
Assets financed under sale-leaseback
The carrying amount of ships financed under sale-leaseback were USD 440.3 million and USD 634.2 million at
December 31, 2022 and December 31, 2021 respectively. See note 8 for future sale-leaseback obligations.
Depreciation
Starting from fiscal year 2021, the Group has elected to present depreciation expense from property, plant and
equipment and right-of-use assets as a single line item in the income statement. The amount of depreciation
expense from each item is as follows.
| | | |
| | | |
Depreciation property, plant and equipment | | | |
Depreciation right-of-use assets | | | |
| | | |
| | | |
Note 12 Leases
| | | | | | | |
| | | | | | | |
Capitalized right-of-use assets January 1, 2022 | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Carrying amount right-of-use assets December 31, 2022 | | | | | | | |
| | | | | | | |
| | | | | | | |
Capitalized right-of-use assets January 1, 2021 | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Carrying amount right-of-use assets December 31, 2021 | | | | | | | |
| | | | | | | |
| | | | | | | |
Remeasurement in 2021 of USD 9.8 million was mainly due to a time charter contract cancelled prior to the originally expiry date. | | | |
| | |
| | | | | | | |
| | | | | |
Variable lease payments made in 2022 are related to pool distributions to external participants in the pools. The total amount distributed in 2022 equals USD 108.6 million, including non-lease component (USD 101.1 million in 2021). | | |
| |
| |
Information about lease payments made | | | | | |
Total nominal lease payments (including short term,\u00a0 long term and variable leases) | | | | | |
Of which short term lease expenses\u00a0 (including non- lease component) | | | | | |
| | | | | | | |
Information about commitments for commenced leases\u00a0 (not included in lease liability) | | | | | |
Lease commitments associated with short term leases (undiscounted) | | | | | |
Non-lease component (OPEX) right-of-use assets, not included in lease liability (undiscounted) | | | | | |
| | | | | | | |
| | | | | | | |
The non-lease component refers to time-charter contracts including a service element. Refer to note 2.6 for a description of the Group's accounting policies related to said contracts. | | | |
| | |
| | |
| | | | | | | |
Information about extension options | | | | |
Extension options (undiscounted) not included in lease liability, bare-boat element vessels | | | | | |
Extension options\u00a0 (undiscounted) not included in lease liability, OPEX element vessels | | | | | |
Extension options\u00a0 (undiscounted) not included in lease liability, office buildings | | | | | |
Total extension options (undiscounted) not included in lease liability | | | | | |
| | | | | | | |
Information about leases not yet commenced but where the Group is Committed | | | | |
Nominal amount of future lease payments for time charter and bare-boat leases where lease term exceeds 12 months | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Maturity of debt related to right-of-use assets as per December 31, 2022: | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Maturity of debt related to right-of-use assets as per December 31, 2021: | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Refer to note 8 for an analysis of the maturity of total debt. | |
| | | | | | | |
| | | | | |
The Group terminated a sale-leaseback agreement in 2022 and refinanced the vessels in the bank market. The Group did not enter any new sale-leaseback agreements in 2022. Refer to note 8 for further details. |
|
| | | | | |
Note 13 Impairment of non-current assets
As of December 31 2022, the market capitalization exceeded the book value of its equity. However, due to
changing regulatory framework for the shipping sector, the Group has carried out an impairment assessment for
the year ended December 31, 2022. See also note 3, section \"Climate and regulatory risk\".
When calculating the value in use at the balance sheet date for the deep-sea/regional South-America CGU , the
following key assumptions are applied. This CGU also contains the Group's right-of-use assets (vessels).
| | |
| | |
Weighted average cost of capital | | |
Average annual growth in time charter earnings the first four year after the balance sheet date (arithmetic average) | | |
Estimated useful life of vessels | | |
All cash flows in the value in use calculation are assumed to increase with 2.5% in the entire remaining useful
life of the vessels. The above table indicate assumptions used in the base case. In 2021, we assumed a growth
of 4.5% the first four years, and thereafter 2% growth over the remaining useful life of the vessels.
Applying the above assumptions, the value in use calculation did not reveal any need for impairment.
Three different scenarios have been prepared when testing the vessels for possible impairment. The Group has
also performed a sensitivity analysis on the discount rate, with an increase of 50bp. The analysis did not indicate
any impairment in the specified range.
In all impairment test scenarios, the expected future increase in fuel cost stemming from carbon taxes are
assumed to be\u00a0 charged to charterer. Based on a price of emission allowances of EUR 90 per metric ton carbon
dioxide,\u00a0 USD 6 million in increased voyage expenses are estimated for 2024, increasing to USD 16 million in
2026.
Cash outflows related to capital expenditure includes estimated cost of dry-docking. Since our vessels are
estimated to achieve a C-rating on the AER (see Critical Accounting judgement - Climate and regulatory risk), no
mandatory capital expenditure related to compliance with new legislation is included.
In 2021, the Group recognized a total of USD 21 million in impairment associated with the agreed sale of three
regional vessels. These vessels were an important part of our regional Asia trade which we now have exited with
the delivery of the last vessel in February 2022. At the end of 2021, these vessels were classified as held for sale
in our balance sheet and valued at sales price less cost of disposal.
Note 14 Earnings per share
The basic earnings per share are calculated by dividing the net profit for the year attributable to ordinary equity
holders of the parent by weighted average number of ordinary shares outstanding during the year.\u00a0 Basic and
diluted earnings per share are the same, as the Company has no convertible bond loan or stock option plan.
| | |
| | |
Profit/(loss) and diluted profit for the year due to the holders of ordinary shares | | |
Weighted average number of ordinary shares for basic earnings per share /diluted average number of shares outstanding 1) | | |
Basic/diluted earnings per share | | |
1) The weighted average number of shares are adjusted for the weighted average effect of changes in treasury shares during the year. See
note 26.
Note 15 Transactions with related parties
The Group has carried out various transactions with related parties. All transactions have been carried out as
part of the ordinary operations, based on the arm-length principle. Transactions with related parties are settled
on a regular basis and the balances as per December 31, 2022 were immaterial.
The Odfjell Group shares offices in Brazil with a local terminal company related to Chair of the Board, Laurence
Ward Odfjell. The Chair's family also has ownership interest in a company, which acts as Brazilian port agent for
Odfjell. In addition to reimbursement of actual expenses and expenditures incurred, Odfjell Tankers AS and
Flumar Transportes de Quimicos e Gases Ltda paid these companies USD 1.0 million in agency fees in 2022
(USD 1.1 million in 2021), while Flumar Transportes de Quimicos e Gases Ltda and Odfjell Brazil \u2013
Representacoes Ltds paid USD 0.1 million for administrative services in 2022 (USD 0.1 million in 2021).
Odfjell Management AS rent offices in Norway from a company related to Chair of the Board, Laurence Ward
Odfjell. The annual lease for 2022 was USD 1.6 million.
Note 16 Commitments, guarantees and contingencies
Capital commitment
Odfjell has no capital commitment as per December 31, 2022.
Guarantees
| | |
| | |
100% owned subsidiaries (third party guarantees) | | |
Joint ventures (credit facilities) | | |
| | |
See also note 28 for guarantees within the joint venture structure.
Contingencies
The Group maintains insurance coverage for its activities consistent with industry practice. The Group is involved
in claims typical to the Chemical Tanker and Tank Terminal industry, but no claims have resulted in material
losses to the Group.
Note 17 Cash and cash equivalents
A substantial part of the Group's cash and cash equivalents are held by overseas offices, management
companies and pools as part of normal working capital. The main Norwegian entities are included in a cash pool
that allows for automatic borrowing between entities and currencies. In order to earn a higher rate of interest on
excess liquidity, we seek to minimize the top balance in the cash pool through placements in other financial
instruments.
Excess liquidity is defined as cash in excess of normal working capital, and include funds earmarked upcoming
bank payments, CAPEX and dividends. The Group considers the end-use of our cash and cash equivalent
balance and match the risk, tenor and liquidity of placements accordingly. As an example, funds earmarked for
working capital is usually placed in regular bank and cash pool accounts with up to a week's tenor, while funds
earmarked for debt repayments, yard installments, and dividends, are usually split on various time deposits and
in money market instruments with an investment horizon of 3-12 months.\u00a0
| | | |
| | | |
Cash at banks and in hand | | | |
Time deposits and Money Market instruments | | | |
Total cash and cash equivalents | | | |
Restricted cash consists of USD 2.0 million (USD 1.6 million in 2021) in funds for withholding taxes relating to
employees in Odfjell Management AS and Odfjell Maritime Services AS.
Note 18 Voyage expenses
Voyage expenses are expenses directly related to the ship voyage.
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Other voyage related expenses | | | |
| | | |
1) Inclusive financial hedging
Note 19 Operating expenses
Operating expenses consist of expenses for operating ships (for example wages and remunerations for crew
and operational personnel, and materials and equipment for ships).
| | | |
| | | |
| | | |
Other ship management expenses | | | |
| | | |
| | | |
Total operating expenses excluding service element of leases | | | |
Service element of leases | | | |
| | | |
Note 20 General and administrative expenses
General and administrative expenses consist of expenses for headquarter activities and activities internationally
for brokerage and agency.
| | |
| | |
| | |
| | |
| | |
Total general and administrative expenses | | |
Including in the above is auditor\u2019s remuneration for (exclusive of VAT):
Note 21 Salary expenses, number of employees and benefits to Board of Directors and management
Salary expenses are included in ship operating expenses and general and administrative expenses according to
the activity.
| | |
| | |
| | |
| | |
Pension expenses defined benefit plans (note 10) | | |
Pension expenses defined contribution plans (note 10) | | |
| | |
| | |
Average man-years of employees including crew:
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total average man-years of employees | | |
At the end of 2022 the Board of Directors consists of six members. Compensation and benefits to the
Board of Directors:
For more specification \u2013 see Odfjell SE note 11.
Compensation and benefits to the Management Group, paid and earned in 2022:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch (until 05.05.2022) | | | | | |
CEO, Harald Fotland (COO until 05.05.2022) | | | | | |
| | | | | |
CSO, \u00d8istein H. Jensen | | | | | |
| | | | | |
MD Terminals, Adrian Lenning 2) | | | | | |
| | | | | |
| | | | | |
1) The bonus relates to earned amount in 2022 for both short and long term incentive scheme. This is a change in methodology compared to\u00a0
2021, where paid, not earned was reported.
2) Included as member in the Management Group from December 1st 2022. The compensation presented above relates to their Executive
Management Positions from December 2022.
Compensation and benefits paid to the Management Group in 2021:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch | | | | | |
| | | | | |
| | | | | |
COS, \u00d8istein H. Jensen | | | | | |
| | | | | |
1) The bonus relates to expensed amount in 2021 for both short and long term incentive scheme.
In 2022, the bonus related to the long-term incentive program, net of withholding tax, have been used to acquire
Restricted Shares in accordance with the long-term incentive program.
Only the CEO of the Executive Management has a defined agreement with regard to severance pay. In case the
Company terminates the employment, the CEO is, in addition to payment of salary and other remuneration
during the notice period, also entitled to 6 months\u2019 base salary.
Refer to our Report on Salary and other Remuneration to Leading Personnel in Odfjell SE for the financial year
2022. The Report will be published on the Company's website once approved by the General Meeting.\u00a0
Note 22 Other financial items
| | |
| | |
Financial assets and liabilities at fair value through profit or loss statement | | |
Realized gain/losses on other current financial assets | | |
Currency gains (losses) \u2013 see note 23 | | |
| | |
| | |
Total other financial items | | |
See note 6 for overview of hedging exposure, and note 23 for specification of currency gains (losses).
Note 23 Currency gains and losses
| | |
| | |
Currency gains (losses) on non-current receivables and liabilities | | |
Currency gains (losses) on cash and cash equivalents | | |
Currency gains (losses) on other current assets and current liabilities | | |
Total currency gains (losses) | | |
See note 6 for overview of currency hedging exposure.
Note 24 Current receivables
| | |
| | |
Trade receivables from contract with customers | | |
| | |
Contract asset (accrued revenues) | | |
| | |
Allowance for expected credit losses | | |
Total current receivables | | |
Trade receivables are for a major part related to revenue from contract with customers with payment terms
shortly after bill of lading to upon delivery. Allowance for expected credit losses relates to trade receivables; see
Note 5 for information on credit risk management.\u00a0
Contract assets are recognized revenue for freight services partly satisfied from voyages that have commenced
but are not completed and invoices that have not been issued as per December 31. Contract assets are
reclassified to receivables from contracts with customers once the freight service is being invoiced to the
customer, at the latest when the voyage is completed (at the latest a few months after it commences). Contract
assets include variable consideration only when it is highly probable there will be no significant reversal at a later
date when the uncertainty related to the variable payment is resolved.
As the voyages and related contracts have a duration of less than a year, the Group does not disclose
separately the transaction price related to partially unfulfilled contracts at the reporting date, refer to IFRS
15.121.
As at December 31, the aging analysis of trade receivables, contract assets and other current
receivables are as follows:
1) Not including prepaid cost and allowance for expected credit losses
The table below summarizes total current receivables into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current receivables | | |
Note 25 Other current liabilities
| | |
| | |
| | |
| | |
Accrued expenses Ship Management | | |
Accrued interest expenses | | |
| | |
| | |
Working capital liabilities to pool partners | | |
Other current liabilities | | |
Loans from Joint Ventures | | |
Total other current liabilities | | |
As per December 31, 2022 the Group has the following remaining performance obligations (amounts not
disclosed):
\u2022For voyages in progress, revenues related to the remaining freight services will be recognized as the
voyage progress. All voyages in progress will be completed within a few months.
\u2022In addition, the Group has freight commitments related to contracts of affreightments entered into for
future shipments.
The table below summarizes the maturity profile of the Group\u2019s other current liabilities:
The table below summarizes other current liabilities into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current liabilities | | |
Note 26 Share capital and premium
| | | | | | | | | | | |
| | | Share capital\u00a0 (USD 1 000) | | Share premium (USD 1 000) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Per December 31, 2022 Odfjell SE holds 5,467,689 A - shares and 2,322,482 B - shares.
The shares are all authorized, issued and fully paid. Nominal value is NOK 2.50, equivalent to USD 0.25 as per
December 31, 2022. All the shares have the same rights in the Company, except for B-shares which have no
voting rights.
Shares owned/controlled by members of the Board of Directors, CEO and other members of the
Executive Management (including related parties) are:
| | | | | | | |
| | | |
| | | | | | | |
Chair of the Board of Directors, Laurence Ward Odfjell | | | | | | | |
Director, \u00c5ke Gregertsen | | | | | | | |
Director, Nils Petter Dyvik | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Note 27 List of subsidiaries
The following subsidiaries are fully consolidated in the financial statements as per December 31, 2022:
| | | |
| | | |
| | | |
Flumar Transportes de Quimicos e Gases Ltda | | | |
| | | |
| | | |
| | | |
| | | |
Odfjell Terminals Management BV | | | |
| | | |
Odfjell Chemical Tankers AS | | | |
Odfjell Chemical Tankers II AS | | | |
Odfjell Insurance & Properties AS | | | |
| | | |
Odfjell Maritime Services AS | | | |
| | | |
| | | |
| | | |
| | | |
Odfjell Ship Management Philippines Inc | | | |
| | | |
Odfjell Singapore Pte Ltd | | | |
Odfjell Terminals Asia Holdings Pte Ltd | | | |
Odfjell Terminals Asia Pte Ltd | | | |
Odfjell Terminals China Pte Ltd | | | |
Odfjell Durban South Africa Pty Ltd | | | |
Odfjell Mazibuko SA Pty Ltd | | | |
| | | |
Odfjell USA (Houston) Inc | | | |
Odfjell Terminals Management Inc | | | |
| | | |
| | | |
Note 28 Investments in joint ventures and associates
Odfjell Terminals BV, is acting as holding company for the Group's investments in terminals. In Odfjell Terminals
BV, the terminal investments are structured as joint ventures, with a separate holding company owned by the
respective joint venture partners.
The holding company in USA is Topco LLC. This holding company owns the terminals in USA (Houston and
Charleston) 100%. Odfjell Terminals BV owns 51% of Topco LLC, while Northleaf owns the remaining 49% of the
shares.
The holding company for the Asia terminal is Odfjell Terminals AS. Odfjell Terminals AS owns 50% in the terminal
in Korea. Up to July 2022, Odfjell Terminals Asia Holding Pte Ltd and its' subsidiaries were 51% owned by Odfjell
Terminals BV and 49% owned by Lindsay Goldberg. Lindsay Goldberg sold its' 49% share of Odfjell Terminals
Asia Holding Pte Ltd to Odfjell Terminals BV, so the company is now 100% owned by the Odfjell Group. The
acquisition is considered an asset acquisition and not a business combination. The acquistion was booked at fair
value and the majority of assets were receivables and cash. The agreed purchasing price was USD 26.7 million
and net cash outflow resulting from the transaction was USD 19.1 million.
The investment in Noord Natie Odfjell Terminals NV is owned directly by Odfjell Terminals BV.
Odfjell and its joint venture partner continues to share control over the investments, thus the investments in the
terminal holding companies are accounted for as investments in joint ventures, applying the equity method.
Odfjell had also established a joint venture with Breakwater Capital and Oak Hill Advisors, L.P. to include
Odfjell\u2019s Gas Carriers business. This investment was done through the holding company Odfjell Gas AS (ref.
note 4). In March 2021, Odfjell SE acquired the remaining 50% of shares in Odfjell Gas AS, and the companies
were fully consolidated in the financial statements the remaining months of 2021. The two Gas vessels are now
sold and Odfjell Gas AS and its subsidiaries are liquidated.
See note 16 for further information about guarantees issued on behalf of joint ventures.
The investment in joint ventures and associates includes the following companies accounted for
according to the equity consolidation method during 2022:
| | | |
Joint ventures and associates | | | |
| | | |
| | | |
Tank Terminal entities in Europe | | | |
Noord Natie Odfjell Terminals NV | | | |
| | | |
Tank Terminal entities in USA | | | |
| | | |
Odfjell Holdings (USA) Inc | | | |
Odfjell Terminals (Charleston) LLC | | | |
Odfjell Terminals (Houston) Inc | | | |
| | | |
| | | |
Tank Terminal entities in Asia | | | |
Odfjell Nangang Terminals (Tianjin) Co Ltd - company sold July-22 | | | |
Odfjell Changxing Terminals (Dalian) Co Ltd - company owned 20.4% up to July-22 | | | |
Odfjell Terminals (Korea) Co Ltd | | | |
Odfjell Terminals Asia Holding Pte Ltd -\u00a0 company owned 100% from July-22 | | | |
Odfjell Terminals (China) Pte Ltd - company owned 100% from July-22 | | | |
Odfjell Terminals Asia Pte Ltd - company owned 100% from July-22 | | | |
| | | |
The share of result and balance sheet items for investments in joint ventures and associates are
recognized based on equity method:
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total comprehensive income | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Depreciation excess values net of deferred | | | | | | | | | | | | |
Group's share of profit for the year | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total equity closing balance | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Capital expenditure, Odfjell share | | | | | | | | | | | | |
The table above illustrates that Odfjell now owns its terminal investments through separate joint ventures. Tank
Terminals Europe include financial information for the Noord Natie Terminals NV. Tank Terminals USA represent
the summarized financial information from the consolidated US Holdings Inc for the whole year. Similar, Tank
Terminals Asia represent the summarized financial information from the consolidated Odfjell Terminals Asia
Holding Pte Ltd up to July 2022, and Odfjell Terminals Korea Co. Ltd for the whole year. The book value of the
investment in the Odfjell Nangang Terminal (Tianjin) was zero. Accumulated net loss of USD 0.7 million related
to Odfjell Nangang Terminal (Tianjin) is not recognized in 2022 (USD 2.6 million in 2021).
The Group received dividend from Noord Natie Terminals NV in 2022, USD 1.3 million (USD 1.5 million in 2021),
and from Odfjell Terminals Korea Co. Ltd in 2022, USD 1.4 million (USD 1.3 million in 2021).
| | | |
| | | |
Loan to / from associates and joint ventures | | | |
All transactions are considered being at commercial reasonable market terms.
Note 29 Held for sale
As per December 31, 2022, no assets were classified as held for sale.
As per December 31, 2021, the vessels Bow Dalian, Bow Fuling and Bow Nangang were classified as held for
sale. The vessels were included in the Chemical Tankers reporting segment, refer to note 4. An impairment loss
of USD 21 million related to the vessels was recognized in the third quarter of 2021, see note 13.
Note 30 Contingent liabilities
In the ordinary course of business, the Group is party to certain disputes etc. of various scopes. The resolution of
these disputes etc. is associated with uncertainty, as they depend on legal proceedings, such as negotiations
between the parties affected. At the end of 2022, neither the parent company nor its consolidated subsidiaries
were involved in disputes etc. where the likely outcome could be material for the Group.
Note 31\u00a0 Other operating income / expenses
Other operating expenses in 2022 primarily relates to expenses incurred in Group restructurings.
A distribution from Den Norske Krigsforsikring for Skib to its members was approved in October 2021. The
distribution of USD 6.2 million less withholding tax of USD 1.6 million (net USD 4.6 million) was received in
December 2021. The withholding tax is assumed to be refunded from Norwegian tax authorities. Hence, no tax
expense is booked. The USD 1.6 million in withholding tax was recognized as a receivable in the balance sheet
per end December 2021 and was settled in 2022.
Note 32 Impact from the War in Ukraine and from Covid-19
The world has been shocked by Russia's war on Ukraine. The war has had an impact on supply chains, put
pressure on energy security, resulted in the loss of lives, and, most importantly, has been a tragedy for the
people of Ukraine's livelihood. The war has also had an impact on the global economy.
The shipping sector is no exception, as it is intertwined with most aspects of the worldwide economy. Odfjell has
a limited presence in the areas immediately affected by the current war, and we have observed limited direct
consequences this far. We are actively monitoring the situation and implementing the measures required to
minimize any adverse impact on our staff, operations, and financial results. Our top priority is to ensure the
safety and well-being of our crew, vessels and cargo.
Following the conflict in Ukraine, the EU and Western countries imposed a number of sanctions against Russian
companies, individuals, and products. These sanctions are complicated and rapidly evolving. Breach of the
sanctions could have serious consequences. Odfjell has taken a strict stance, refusing to operate in the Black
Sea or engage in trade with Russia, Russian individuals/owners, or Russian cargo. To ensure that we comply
with sanctions, we have updated our sanctions policies and procedures. We have also used external assistance
to ensure that we are doing enough due diligence to keep us safe and to support the sanctions' goal.
During 2022 ripple effects of the Coronavirus (COVID-19) continued to put constrains on businesses around the
world, but it did not have a severe negative effect on the Group's financial performance. Impact from COVID-19
is not expected to have an severe negative impact in 2023.
Note 33\u00a0 Subsequent events
Subsequent events are events that occur between the end of the reporting period and the date when the
financial statements are authorized for issue.
On February 8th 2023, the Board approved, based on proxy granted by the General Meeting, a dividend of USD
0.61 per share, totaling USD 48.2 million. The dividend was paid out February 21, 2023.
Note 34 Exchange rates of the Group\u2019s major currencies against USD
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Note 1 Corporate information
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Note 2 Summary of significant accounting principles
2.1 Basis for preparation
The Odfjell Group has prepared its consolidated financial statements according to International Financial
Reporting Standards (IFRS) approved by the EU. The consolidated financial statements have been prepared on
a historical cost basis, except for derivatives which are measured at fair value.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.2 Changes in accounting principles
The following new standards and amendments became effective as at January 1, 2022:
\u2013Reference to the Conceptual Framework \u2013 Amendments to IFRS 3
\u2013Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendment to IAS 16
\u2013Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37
\u2013IFRS 1 First-time Adoption of International Financial Reporting Standards \u2013 Subsidiary as a first-time
adopter
\u2013IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilities
\u2013IAS 41 Agriculture \u2013 Taxation in fair value measurements
The amendment to IFRS 3 adds an exception to recognition principles in IFRS 5 to avoid the issue of potential
day 2 gains or losses arising for liabilities within the scope of IAS 37 Provisions, Contingent liabilities and
Contingent assets.
Amendment to IAS 16 prohibits entities from deducting from the cost of an item of property, plant and equipment,
any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for
it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds
from selling such items, and the costs of producing those items, in profit or loss.
The amendment to IFRS 1 permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure
cumulative translation differences using the amounts reported in the parent\u2019s consolidated financial statements,
based on the parent\u2019s date of transition to IFRS, if no adjustments were made for consolidation procedures and
for the effects of the business combination in which the parent acquired the subsidiary. This amendment is also
applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1.
The amendment to IFRS 9 clarifies the fees that an entity includes when assessing whether the terms of a new
or modified financial liability are substantially different from the terms of the original financial liability. These
fees include only those paid or received between the borrower and the lender, including fees paid or received by
either the borrower or lender on the other\u2019s behalf.
The amendment to IAS 41 removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows
for taxation when measuring the fair value of assets within the scope of IAS 41.
The amendments mentioned above had no impact on the consolidated financial statements of the Group.
2.3 Revenues from contract with customers
Revenue from contracts with customers is recognized when control of the services is transferred to the customer
at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those
goods or services. The Group has generally concluded that it is the principal in its revenue arrangements,
because it typically controls the services before transferring them to the customer.
Freight revenue from transportation of liquids by sea
The Group recognizes revenue from rendering of transportation services over time, because the customer
simultaneously receives and consumes the benefits provided by the Group. The Group recognizes freight
revenue over time from load port to discharge port by measuring the progress towards complete satisfaction of
the services.\u00a0 Number of days sailed from load port compared to total estimated days until discharge port is used
as a measure of progress. The method applied is the one that most faithfully depicts our progress towards
complete satisfaction of the performance obligation.
Variable consideration
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to
which it will be entitled in exchange for transferring the service to the customer. The variable consideration is
estimated at contract inception or when changes in circumstances occur and is recognized as revenue if it is
highly probable that there will not be a significant reversal of revenue in a future period. The Group is estimating
demurrage revenue as a variable consideration when delays occur and the vessel is prevented from loading or
discharging cargo within the stipulated\u00a0lay time. The variable consideration based on contracted price terms and
estimated excess time taken to discharge or load are being recognized as part of the freight service revenue
over time for the remaining voyage (from the delay occur to the discharge port).
Contract balances
Contract assets: A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. Contract assets are recognized revenue for freight services partly satisfied from voyages that have
commenced but are not completed and invoices that have not been issued as per December 31. Contract assets
are reclassified to receivables from contracts with customers once the freight service is being invoiced to the
customer, at the latest when the voyage is completed. Contract assets include variable consideration only when
it is highly probable that there will be no significant reversal at a later date when the uncertainty related to the
variable payment is resolved. Contract assets are classified as part of current receivables in the balance sheet.
Trade receivables: A receivable represents the Group\u2019s right to an amount of consideration that is unconditional.
Contract liabilities: A contract liability is the obligation to transfer goods or services to a customer for which the
Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Group transfers goods or services to the customer, a contract liability is recognized
when the payment is made. Contract liabilities are recognized as revenue when the Group fulfills the
performance obligation (s) under the contract.
Cost to obtain a contract
The Group has elected to apply the optional practical expedient for costs to obtain a contract, e.g. broker
commissions, which allows the Group to immediately expense such costs when the related revenue is expected
to be recognized within one year.
External pool vessels
Odfjell operates pools of ships delivering freight services to customers and external ships participate in the
pools. Under IFRS 15, Odfjell acts as a principal for the external ships in the pool since the freight service
delivered to the customer is controlled by Odfjell. Revenues generated by external ships in the pool are therefore
recognized as gross revenue in the income statement.
2.4 Segments
Operating segments are reported in the manner consistent with the internal financial reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources
and assessing performance of the operating segment, has been identified as the Board and Executive
Management which makes the strategic decisions. In the internal reporting, the proportionate consolidation
method is used for the Group\u2019s share of investments in joint ventures and associates. The proportionate
consolidation method means that we include the Group\u2019s share of revenue and expenses in addition to our share
of assets and liabilities. In the consolidated financial statements, investments in joint ventures and associates
are accounted for according to the equity method.Transactions between the individual business areas are priced
at market terms and are proportionately eliminated in the consolidated accounts.
2.5 Property, plant and equipment
Property, plant and equipment \u2013 including ships, newbuilding contracts, real estate, office equipment and cars -
are measured at historical cost, which includes purchase price, capitalized interest and other expenses directly
related to the assets. The carrying value of property, plant and equipment represents the cost less accumulated
depreciation and any impairment charges. Newbuilding contracts include payments made under the contracts,
capitalized loan interest and other costs directly associated with the newbuilding and are not depreciated until
the asset is available for use.
The investment is depreciated over the remaining useful life of the asset. We estimate residual value at the
estimated time of disposal of assets, which is generally at the end of their useful life. To assess the residual
value of ships we use the current estimated recycling value. The residual value for ships is estimated by
distributing the total lightweight of the ships in a stainless steel part and a carbon steel part.\u00a0 Steel are estimated
to the market value of steel at year end. Stainless steel is valued at 10% of the quoted nickel price at London
Metal Exchange at the balance sheet date. The residual values are measured on a yearly basis and any
changes have an effect on future depreciation.
Each component of property, plant and equipment that is significant to the total cost of the item is depreciated
separately. The Company allocates the amount initially recognized in respect of an item of property, plant and
equipment to its significant components and depreciates separately each such component over their useful lives.
The carrying amount of ships is split into two components, ships and periodic maintenance.
Day-to-day repairs and maintenance costs are charged to the income statement in the period they are incurred.
The cost of major renovations and periodic maintenance is included in the asset\u2019s carrying amount. At the time of
investing in a ship a portion of the purchase price is defined as periodic maintenance, and this component is
depreciated over the period until the next periodic maintenance.
Expected useful lives of property, plant and equipment are reviewed at each balance sheet date, and where they
differ significantly from previous estimates, depreciation are adjusted accordingly. Changes are valid as from the
dates of estimate changes.
Capital gains and losses on disposals are determined by comparing the disposal proceeds with the carrying
amount and are included in the operating result. When the carrying amount of a property, plant and equipment
will be recovered principally through a sale transaction rather than through continued use they are reported at
the lower of the carrying amount and the fair value less selling costs.
Property, plant and equipment are classified as assets held for sale when their carrying amount is to be
recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the
lower of carrying amount and fair value less costs to sell.
Impairment of property, plant and equipment
The carrying amount of the Group\u2019s tangible assets is reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication exists, or when annual impairment testing for
an asset is required, the asset\u2019s recoverable amount is estimated in order to determine the extent of any
impairment loss. Where the asset does not generate cash flows that are independent from other assets, the
Group estimates the recoverable amount of the cash generating unit to which the asset belongs. A cash
generating unit is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or group of assets. Assets held for sale are excluded from the
cash generating units and are assessed separately for impairment.
The recoverable amount is the highest of the fair market value of the asset, less cost to sell, and value in use.
The value in use is the net present value of future estimated cash flow from the employment of the asset. The
net present value is calculated using the weighted average cost of capital\u00a0 as discount rate. If the recoverable
amount is lower than the book value, impairment has occurred and the asset shall be revalued. Impairment
losses are recognized in income statement.
Impairment losses recognized in the income statement for previous periods are reversed when there is
information that the basis for the impairment loss no longer exists. This reversal is classified in the income
statement as an impairment reversal. The increased carrying amount of an asset attributable to a reversal of an
impairment loss shall not exceed the carrying amount that would have been determined (net of depreciation) had
no impairment loss been recognized for the asset in prior years.
2.6 Leasing
To a large extent, the Group's leasing activity relates to ships where Odfjell is the lessee. The leasing contract
are either bare-boat or time-charter parties. They are typically made for fixed periods of 1 year to 10 years.
Lease payments are normally fixed for the whole lease period.The Group also leases offices in various areas.
Most charter contracts entitles the Group to either extend the lease period and / or to purchase the asset after a
certain period.
Bare-boat lease contracts relates to the lease of a specific ship, while time-charter contracts include the lease of
the specific ship and in addition a non-lease component (crew and maintenance; operating expense). We have
separated the non-lease component by estimating the operating expense based on internal and external sources
(benchmark of ships on external management) for ships of similar classes as ships on time-charter contracts.
Therefore, only payments for the bare-boat element are included when estimating the lease liability.
The existence of extension options and option to purchase the ships are used to maximize operational flexibility
and to reduce residual value risks associated with legal ownership. The extension and purchase options are
exercisable only by Odfjell. Consideration payable for extension or purchasing the underlying ship are included
when estimating the lease payments and lease term only to the extent it is reasonable certain that Odfjell will
exercise its options. A significant part of the leased assets relates to ships where the minimum lease term are up
to 8 years - 10 years. The likelihood of exercising options is made at commencement date, the date when the
underlying asset is made available to Odfjell.
If significant circumstances changes as a consequence of significant events within the control of the Group, the
likelihood of exercising the options is reassessed. Such event could be that one or more of the leased ships are
needed to fulfill the Group's contracts obligations towards customers. Refer to note 3 for further information on
the assessment of lease terms and options.
Leases are recognized as a right-of-use assets and a corresponding liability at the date which the leased asset is
available for use by Odfjell. Assets and liabilities are measured on a present value basis. The discount rate used
is the lessee's incremental borrowing rate. The incremental borrowing rate is the rate that the Group would have
to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.\u00a0 Lease liabilities include the net present value
of the bare-boat element.\u00a0
Right-of-use assets are measured at cost comprising the amount initial measurement of the lease liability and
direct external cost associated with negotiation of the lease contract.
For right-of-use assets where Odfjell is obliged to ensure dry-docking, we estimate the expense for the first dry-
docking, separate this from the right-of-use asset and depreciate the estimated dry-docking over the period from
the commencement of the lease until the estimated time of dry-docking. Once the dry-docking has taken place,
the Group capitalizes these expenses and depreciate over the shorter period until the next scheduled dry-
docking or the remaining lease term.
The non-lease element, deducted from nominal lease payments when calculating the net present value of the
lease liability, is charged to the income statement classified as 'Operating expenses'..
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period producing a constant periodic rate of interest on the remaining balance of the liability each
period.
Payments associated with short term leases of ships, other equipment and all leases of low value assets are
recognized on a straight line basis as an expense in the income statement. Assets regarded as low value assets
are equipment which need electricity to operate (e.g. copy machine, coffee machine). Short term leases of ships
are classified as 'time charter expenses' in the Group's income statement. Other short term leases and leases of
low value assets are classified as 'General and administrative expenses'.
Short term leases are those where the lease term are 12 months or less. Options to extend the lease term are
included in assessment of the lease term once the extension is agreed.
The Group regularly enters into sale-leaseback transactions related to ships. For these transactions, the Group
evaluates whether the transfer of the asset satisfies the requirements of IFRS 15 to account for the transfer as a
sale. For transactions where the Group retains control of the asset, and obtains substantially all of the remaining
benefits based on the length of the lease and/or rights to purchase the asset through options, the transaction is
accounted for as a financial arrangement in accordance with IFRS 9.
For transactions which meet the criteria as a sale and leaseback and the leaseback exceeds 12 months, the
asset is derecognized and the Group recognizes a right-of-use asset equal to a proportion of the previous
carrying amount consistent with the right-of-use retained in the transaction. Gain from such sale is calculated as
the proportion of the rights transferred to the buyer. For leaseback where the lease term is less than 12 months,
no right-of-use asset is recognized and the whole gain from the sale is recognized in the income statement.
The Odfjell Group is acting as pool manager for\u00a0 pools with external pool participants.\u00a0 The lease payments to
external pool participants are entirely variable and therefore not included when calculating the lease liability. The
variable lease payment, less management fee to pool manager, is charged to income statement as 'pool
distributions'.
2.7 Consolidation
The consolidated statements consist of Odfjell SE and its subsidiaries as at December 31 each year.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtained
control, and continues to be consolidated until the date that such control ceases. Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights results in control, but the Group considers all
facts and circumstances when assessing whether it has power over the investee.
Identified excess values have been allocated to those assets and liabilities to which the value relates. Fair value
adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and
liabilities of the foreign operation and translated at the exchange rate at the balance sheet date. Excess values
are depreciated over the estimated useful lives for the relevant asset and liabilities.
Intercompany transactions, balances and unrealized gains on transactions between Group companies are
eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s
accounting policies.
2.8 Investment in joint ventures and associates
A joint venture is a type of joint arrangement whereby the parties that have joint control have the right to the net
assets of the joint venture. Joint control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about relevant activities require unanimous consent of the parties sharing control.
An associate is an entity in which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over
those policies.
The Group\u2019s investments in joint ventures and associates are accounted for by using the equity method. Under
this method, the investment is initially recognized at cost. Goodwill relating the associate or joint venture is
included in the carrying amount of the investment and not tested for impairment individually.
The income statement reflects the Group\u2019s share of the net result after tax of the associate or joint venture. Any
depreciation or amortization of the Group\u2019s excess values, net of deferred tax, are included in the net result from
the joint ventures.
Any change in other comprehensive income of the associate or joint venture is presented separately in the
Group\u2019s other comprehensive income.
The financial statements of the associate or joint venture are prepared for the same reporting period as the
Group.\u00a0 When necessary, adjustments are made to bring the accounting principles in line with those of the
Group.
Impairment of joint ventures and associates
The Group determines whether it is necessary to recognize an impairment loss on its investments in joint
ventures or associates. At each reporting date, the Group determines whether there is objective evidence that
the investments are impaired. If there is such evidence, the Group calculates the amount of impairment as the
difference between the recoverable amount and the carrying amount of the investment. Any impairment loss is
recognized as \u2018share of profit or loss from joint venture and associates\u2019.
The recoverable amount is the higher of value in use and fair value less cost to sell. The entire carrying amount
of the investments are tested for impairment as one single asset.
2.9 Currency
The consolidated financial statements are presented in USD as the Group operates in an international market
where the functional currency is mainly USD.\u00a0 The functional currency of the parent company is USD.
Transactions in non-USD currency are recorded at the exchange rate on the date of the transaction. Receivables
and liabilities in non-USD currencies are translated at the exchange rate on the balance sheet date. All exchange
rate differences are taken to the Income statement.
The balance sheet of foreign subsidiaries with functional currency other than USD is translated at the rate
applicable on the balance sheet date, while the income statement is translated using the monthly average
exchange rate for the accounting period. Exchange rate differences that arise as a result of this are included as
exchange rate differences in other comprehensive income. When a foreign subsidiary is sold, the accumulated
translation adjustment related to that subsidiary is taken to the income statement.
2.10 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Recognition and derecognition
Financial assets and liabilities are recognized in the statement of financial position at the date the Group
becomes a party to the contractual provisions of the financial instruments. Financial instruments are recognized
at fair value, which normally equals their transaction price. Trade receivables are measured at transaction price.
Transaction costs are recognized in profit or loss, with the exception of transaction costs related to financial
instruments measured at amortized cost or fair value through OCI where transaction costs adjust the instruments
carrying amount and are amortized over the expected life of the instruments.
A financial asset is derecognized when the right to receive and retain cash flows from the asset has expired, or
when the rights to receive the cash flows from the financial asset and substantially all the risks and rewards from
ownership of the financial asset has been transferred. A financial liability is derecognized when it is extinguished,
i.e. when the financial liability is discharged, canceled or expires.
Classification and measurement
Financial assets are measured at amortized cost if their contractual cash flows are solely payment of principal
and interest on the principal amount outstanding, and they are held within a business model whose objective is
to hold financial assets in order to collect contractual cash flows. All financial assets of the Group that are not
derivatives or equity instruments meet these conditions and are measured at amortized cost. Derivatives and
equity instruments are measured at fair value through profit or loss, with the exception of derivative instruments
that are designated as hedging instruments in qualifying hedging relationships.
The Odfjell Group has the following financial assets; loan to associates and joint ventures, trade receivables
(included in current receivables), derivative financial instruments and cash and cash equivalents.
Financial liabilities are accounted for at amortized cost, unless they are held for trading, designated at fair value
through profit or loss or are derivatives. Financial liabilities of the Group are measured at amortized cost, with the
exception of derivatives which are either measured at fair value through profit or loss or are designated as
hedging instruments in qualifying hedging relationships.
The Odfjell Group has the following financial liabilities; Long and short term interest-bearing debt, trade and
other payables (included in 'other current liabilities' in the statement of financial position) and derivative financial
instruments.
Impairment
Impairments are recognized based on a three-step model, where assets are classified in step 1 at initial
recognition and in subsequent periods if the credit risk of the assets has not increased significantly after initial
recognition. Impairment losses for assets classified in step 1 is measured as the 12-months expected credit loss.
If the credit risk has increased significantly after initial recognition the financial assets shall be classified in step 2
or 3, and expected credit loss is measured at lifetime expected credit loss. When estimating expected credit loss,
the Group takes into consideration historical loss experience, information about current conditions and
expectations for future developments.
A simplified impairment model applies for trade receivables, where impairment losses are measured at lifetime
expected credit loss irrespective of whether credit risk has increased significantly or not.
Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge interest rates, foreign currency risk and commodity
price risk (bunkers). Derivative financial instruments are forward currency contracts, interest rate swaps and
forward commodity contracts. Such derivative financial instruments are initially recognized at fair value on the
date on which the contract is entered into and are subsequently remeasured at fair value. Derivatives are
recognized as assets if the fair value is positive and as a liability when the fair value is negative.
For the purpose of hedge accounting, the derivatives are classified as cash flow hedges and hedges highly
probable future cash flows. Forward currency contracts hedges future highly probable cash outflows in NOK and
forward commodity contracts hedges highly probable future purchase of bunkers nominated in USD. Interest rate
swaps hedges future interest payments.
At the inception of the hedging relationship, the Group formally designates and documents the hedge
relationship\u00a0 aligned with the risk management objective and hedging strategy.
Until the highly probable future transaction occurs, the effective portion of the gain or loss on the hedging
instrument is recognized in other comprehensive income in the cash flow hedge reserve. Any ineffective portion
is recognized in the income statement immediately as other financial items. The amount accumulated in the cash
flow reserve is reclassified to profit and loss as an adjustment in the same period as the hedged cash flow affect
profit and loss. In the income statement, adjustments related to forward commodity contracts are included in the
line voyage expense. The adjustments related to forward currency contracts are recognized in operating
expenses and\u00a0 general and administrative expenses. Adjustments associated with interest rate swaps are
included as interest expense.
Derivative financial contracts used as hedging instruments are classified as current assets or current liabilities if
they mature within 12 months after the balance sheet date. Derivative financial contracts maturing more than 12
months after the balance sheet date are classified as non current assets or non current liabilities.
2.11 Inventories
Bunkers, spare parts and consumables are accounted for at purchase price, on a first-in, first-out basis.
Inventories are measured at the lower of cost and net realizable value. If inventory is written down to net
realizable value, the write down is charged to the income statement.
2.12 Cash and cash equivalents
The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash in hand
and in bank, deposits held at call with banks and other short-term highly liquid investments with maturities of
three months or less from the date of acquisition.
The amount of cash and cash equivalents in the cash flow statement does not include available credit facilities.
2.13 Equity
Paid in equity
(i) Share capital
Ordinary shares (A-and B-shares) are classified as equity. The paid in equity equals the nominal value per share.
(ii) Treasury shares
Where any Group company purchases the Company\u2019s equity share capital (treasury shares), the consideration
paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity
attributable to the Company\u2019s equity holders until the shares are cancelled or reissued.
When such shares are subsequently reissued, any consideration received, net of any directly attributable
incremental transaction costs and the related income tax effects, is included in equity attributable to the
Company\u2019s equity holders.
(iii) Share premium
The excess value of the total paid-in-capital is not reflected in the nominal value of the shares. Transaction costs
of an equity transaction are accounted for as a deduction in share premium, net of any related income tax
benefit.
Other equity
(i) Translation differences
Translation differences arise in connection with currency differences when foreign entities, joint ventures and
associates are consolidated. When a foreign operation is sold, the accumulated translation differences linked to
the entity are reversed and recognized in profit or loss in the same period as the gain or loss on the sale is
recognized.
(ii) Cash flow hedge reserve
The cash flow hedge reserve includes the total net unrealized change in the fair value of the cash flow hedge
derivatives. When the hedged cash flow matures or is no longer expected to occur, the net change in fair value is
transferred to the income statement.
(iii) Retained earnings
Retained earnings equals net result less dividend paid to shareholders and other adjustments. The net result
attributable to and available for distribution to the shareholders. Dividends are recorded as a deduction to Other
equity in the period in which they are approved by the shareholders.
(iv) Pension remeasurement
The Group holds some minor defined benefit plans. Remeasurement of these defined pension obligations as a
consequence of changes in assumptions, are recognized directly in equity.
(v) Other comprehensive income from associates and joint ventures
Our share of items charged directly to equity in associates and joint ventures are charged directly to Odfjell's
equity as classified into this sub item of the equity.
2.14 Taxes
The shipping activities are operated in several countries and under different tax schemes, including the ordinary
tax system in Norway, the Norwegian shipping tax system and the Approved International Shipping system in
Singapore. In addition, we operate under local tax systems, most importantly in Brazil.
The Group\u2019s taxes include taxes of Group companies based on taxable profit for the relevant financial period,
together with tax adjustments for previous periods and any change in deferred taxes. Withholding tax on
dividend received and withholding tax on capital gains are classified as income tax. Tax credits arising from
subsidiaries\u2019 distribution of dividends are deducted from tax expenses.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
\u2022where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
\u2022in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available to
offset the temporary differences. We recognize formerly unrecognized deferred tax assets to the extent that it
has become probable that we can utilize the deferred tax asset. Similarly, the Company will reduce its deferred
tax assets to the extent that it no longer can utilize these.
Deferred tax and deferred tax assets for the current and prior periods are measured at the amount expected to
be paid to or recovered from the relevant tax authorities, using the tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date. Deferred tax and deferred tax assets are recognized
irrespective of when the differences will be reversed. Deferred tax and deferred tax assets are recognized at
their nominal value and are classified as non-current liabilities (non-current assets) in the balance sheet.
Companies taxed under special shipping tax systems will generally not be taxed on the basis of their net
operating profit. A portion of net financial income and other non-shipping activities are normally taxed at the
ordinary applicable tax rate. Taxation under shipping tax regimes requires compliance with certain requirements,
and breach of such requirements may lead to a forced exit of the regime.
Tax payable and deferred taxes are recognized directly in equity to the extent that they relate to factors that are
recognized directly in equity.
2.15 Borrowing cost
General and specific borrowing costs directly attributable to the acquisition, construction and production of
qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
2.16 Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past
events, and it is probable that an outflow of resources will be required to settle the obligation. Provisions are
based on best estimates. Provisions are reviewed on each balance sheet date and reflect the best estimate of
the liability. If the effect of the time value of money is material, normally more than twelve months, provisions are
discounted using a current pre tax rate that reflects the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognized as a finance cost.
2.17 Pension cost and liabilities
The Group operates a number of pension plans in accordance with the local conditions and practices in the
countries in which it operates. Such pension plans are defined benefit plans or contribution plans according to
the customary pension plans prevailing in the country concerned.
Defined benefit pension plans are pension plans with retirement, disability and termination income benefits. The
retirement income benefits are generally a function of years of employment and final salary with the Company.
Generally, the schemes are funded through payments to insurance companies. The liability in respect of defined
benefit pension plans is the present value of the accumulated defined benefit obligation at the balance sheet
date less the fair value of plan assets. The net pension liability is calculated based on assumptions with regards
to interest rates, future salary adjustments etc. These assumptions are based on historical experience and
current market conditions. The cost of providing pensions is charged to income statement so as to spread the
regular cost over the vesting period of the employees. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive
income.
For defined contribution plans, contributions are paid to pension insurance plans. Once the contributions have
been paid, there are no further payment obligations. Contributions to defined contribution plans are charged to
the income statement in the period to which the contributions relate.
2.18 Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity
holders of the parent company by the weighted average number of ordinary shares outstanding during the year.
2.19 Comparatives
Comparative figures have been reclassified to conform to changes in presentation in the current year when there
are changes in accounting principles, corrections of errors or operations defined as discontinued.
2.20 Related parties
In the normal course of the conduct of its business, the Group enters into a number of transactions with related
parties. The Company considers these arrangements to be on reasonable market terms.
2.21 Classification in the financial statement
Odfjell has used a classification based on a combination of nature and function in the income statement.
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2.1 Basis for preparation
The Odfjell Group has prepared its consolidated financial statements according to International Financial
Reporting Standards (IFRS) approved by the EU. The consolidated financial statements have been prepared on
a historical cost basis, except for derivatives which are measured at fair value.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.21 Classification in the financial statement
Odfjell has used a classification based on a combination of nature and function in the income statement.
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2.1 Basis for preparation
The Odfjell Group has prepared its consolidated financial statements according to International Financial
Reporting Standards (IFRS) approved by the EU. The consolidated financial statements have been prepared on
a historical cost basis, except for derivatives which are measured at fair value.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.",
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2.2 Changes in accounting principles
The following new standards and amendments became effective as at January 1, 2022:
\u2013Reference to the Conceptual Framework \u2013 Amendments to IFRS 3
\u2013Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendment to IAS 16
\u2013Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37
\u2013IFRS 1 First-time Adoption of International Financial Reporting Standards \u2013 Subsidiary as a first-time
adopter
\u2013IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilities
\u2013IAS 41 Agriculture \u2013 Taxation in fair value measurements
The amendment to IFRS 3 adds an exception to recognition principles in IFRS 5 to avoid the issue of potential
day 2 gains or losses arising for liabilities within the scope of IAS 37 Provisions, Contingent liabilities and
Contingent assets.
Amendment to IAS 16 prohibits entities from deducting from the cost of an item of property, plant and equipment,
any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for
it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds
from selling such items, and the costs of producing those items, in profit or loss.
The amendment to IFRS 1 permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure
cumulative translation differences using the amounts reported in the parent\u2019s consolidated financial statements,
based on the parent\u2019s date of transition to IFRS, if no adjustments were made for consolidation procedures and
for the effects of the business combination in which the parent acquired the subsidiary. This amendment is also
applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1.
The amendment to IFRS 9 clarifies the fees that an entity includes when assessing whether the terms of a new
or modified financial liability are substantially different from the terms of the original financial liability. These
fees include only those paid or received between the borrower and the lender, including fees paid or received by
either the borrower or lender on the other\u2019s behalf.
The amendment to IAS 41 removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows
for taxation when measuring the fair value of assets within the scope of IAS 41.
The amendments mentioned above had no impact on the consolidated financial statements of the Group.
",
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2.2 Changes in accounting principles
The following new standards and amendments became effective as at January 1, 2022:
\u2013Reference to the Conceptual Framework \u2013 Amendments to IFRS 3
\u2013Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendment to IAS 16
\u2013Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37
\u2013IFRS 1 First-time Adoption of International Financial Reporting Standards \u2013 Subsidiary as a first-time
adopter
\u2013IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilities
\u2013IAS 41 Agriculture \u2013 Taxation in fair value measurements
The amendment to IFRS 3 adds an exception to recognition principles in IFRS 5 to avoid the issue of potential
day 2 gains or losses arising for liabilities within the scope of IAS 37 Provisions, Contingent liabilities and
Contingent assets.
Amendment to IAS 16 prohibits entities from deducting from the cost of an item of property, plant and equipment,
any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for
it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds
from selling such items, and the costs of producing those items, in profit or loss.
The amendment to IFRS 1 permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure
cumulative translation differences using the amounts reported in the parent\u2019s consolidated financial statements,
based on the parent\u2019s date of transition to IFRS, if no adjustments were made for consolidation procedures and
for the effects of the business combination in which the parent acquired the subsidiary. This amendment is also
applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1.
The amendment to IFRS 9 clarifies the fees that an entity includes when assessing whether the terms of a new
or modified financial liability are substantially different from the terms of the original financial liability. These
fees include only those paid or received between the borrower and the lender, including fees paid or received by
either the borrower or lender on the other\u2019s behalf.
The amendment to IAS 41 removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows
for taxation when measuring the fair value of assets within the scope of IAS 41.
The amendments mentioned above had no impact on the consolidated financial statements of the Group.
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2.3 Revenues from contract with customers
Revenue from contracts with customers is recognized when control of the services is transferred to the customer
at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those
goods or services. The Group has generally concluded that it is the principal in its revenue arrangements,
because it typically controls the services before transferring them to the customer.
Freight revenue from transportation of liquids by sea
The Group recognizes revenue from rendering of transportation services over time, because the customer
simultaneously receives and consumes the benefits provided by the Group. The Group recognizes freight
revenue over time from load port to discharge port by measuring the progress towards complete satisfaction of
the services.\u00a0 Number of days sailed from load port compared to total estimated days until discharge port is used
as a measure of progress. The method applied is the one that most faithfully depicts our progress towards
complete satisfaction of the performance obligation.
Variable consideration
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to
which it will be entitled in exchange for transferring the service to the customer. The variable consideration is
estimated at contract inception or when changes in circumstances occur and is recognized as revenue if it is
highly probable that there will not be a significant reversal of revenue in a future period. The Group is estimating
demurrage revenue as a variable consideration when delays occur and the vessel is prevented from loading or
discharging cargo within the stipulated\u00a0lay time. The variable consideration based on contracted price terms and
estimated excess time taken to discharge or load are being recognized as part of the freight service revenue
over time for the remaining voyage (from the delay occur to the discharge port).
Contract balances
Contract assets: A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. Contract assets are recognized revenue for freight services partly satisfied from voyages that have
commenced but are not completed and invoices that have not been issued as per December 31. Contract assets
are reclassified to receivables from contracts with customers once the freight service is being invoiced to the
customer, at the latest when the voyage is completed. Contract assets include variable consideration only when
it is highly probable that there will be no significant reversal at a later date when the uncertainty related to the
variable payment is resolved. Contract assets are classified as part of current receivables in the balance sheet.
Trade receivables: A receivable represents the Group\u2019s right to an amount of consideration that is unconditional.
Contract liabilities: A contract liability is the obligation to transfer goods or services to a customer for which the
Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Group transfers goods or services to the customer, a contract liability is recognized
when the payment is made. Contract liabilities are recognized as revenue when the Group fulfills the
performance obligation (s) under the contract.
Cost to obtain a contract
The Group has elected to apply the optional practical expedient for costs to obtain a contract, e.g. broker
commissions, which allows the Group to immediately expense such costs when the related revenue is expected
to be recognized within one year.
External pool vessels
Odfjell operates pools of ships delivering freight services to customers and external ships participate in the
pools. Under IFRS 15, Odfjell acts as a principal for the external ships in the pool since the freight service
delivered to the customer is controlled by Odfjell. Revenues generated by external ships in the pool are therefore
recognized as gross revenue in the income statement.
Revenue from contract with customers
The Group applied the following judgments that significantly affect the determination of the amount and timing of
revenue from contracts with customers:
(i) Timing of freight revenue
The Group generates its revenue from contract with customers from the transportation of liquids by sea. After
commencement of a sea voyage, estimated revenue is recognized and prorated over time from a cargo is
loaded to the estimated time of discharge. Estimated revenue and time from load to discharge is being updated
as the voyage processes to include most recent data, and changes in estimates will impact revenue and contract
balances.\u00a0 See note 24 for information about contract balances.
(ii) Variable consideration - demurrage
The Group is estimating demurrage revenue as a variable consideration when delays occur and the vessel is
prevented from loading or discharging cargo within the stipulated\u00a0lay time. The variable consideration based on
contracted price terms and estimated excess time taken to discharge or load are being recognized as part of the
freight service revenue over time for the remaining voyage (from the delay occur to the discharge port). Changes
in estimates related to demurrage will impact revenue and contract balances.
(iii) Principal versus agent considerations
Odfjell operates pools of ships delivering freight services to customers and external ships\u00a0 participate in the
pools. The Group determined that it does act as a principal, not as an agent, for those external ships in the pool
since the operations of the external vessels and the freight service delivered to the customer is controlled by
Odfjell. Revenues generated by external ships in the pool are therefore recognized as gross revenue in the
income statement.
If some vessels have been on commercial management with Odfjell (prior to entering into pool participation
agreements), the Group determines that it does act as an agent, not a principal, for the ships on commercial
management since Odfjell does not have the risk or ability to direct and control the freight services provided by
these ships.\u00a0 Revenues generated by ships on commercial management are therefore not recognized as gross
revenue in the income statement.
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2.4 Segments
Operating segments are reported in the manner consistent with the internal financial reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources
and assessing performance of the operating segment, has been identified as the Board and Executive
Management which makes the strategic decisions. In the internal reporting, the proportionate consolidation
method is used for the Group\u2019s share of investments in joint ventures and associates. The proportionate
consolidation method means that we include the Group\u2019s share of revenue and expenses in addition to our share
of assets and liabilities. In the consolidated financial statements, investments in joint ventures and associates
are accounted for according to the equity method.Transactions between the individual business areas are priced
at market terms and are proportionately eliminated in the consolidated accounts.
The operating segments are organized and managed separately according to the nature of the products and
services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The Company has two reportable operating segments: Chemical Tankers and Tank
Terminals.
The Chemical Tankers involve a 'round the world' service, servicing ports in Europe, North and South America,
the Middle East and Asia, Australia and Africa. Our fleet composition enables us to offer both global and regional
transportation.
The Tank Terminals segment offers storage of various chemical and petroleum products and is operated through
joint ventures with our share owned by the subsidiary Odfjell Terminals BV. In addition, this segment plays an
important operational role in our cargo-consolidation program so as to reduce the time our vessels spend in
ports, reduce thereby emission in port, and enable us to be one of the world-leaders in combined shipping and
storage services.
Pricing of services and transactions between operating segments are set on an arm\u2019s length basis in a manner
similar to transactions with third parties. Segment revenue, segment expenses and segment results include
transactions between operating gross segments. These transactions are proportionately eliminated in below
operating segment data.
The Group provide geographical data for revenue and total assets, as the reliability measurement criteria cannot
be met for other items. The Group\u2019s activities are mainly divided among the following regions: Europe, North and
South America, the Middle East and Asia, Australia and Africa. Vessels and newbuilding contracts are not
allocated to specific geographical areas as they generally trade worldwide.
The Chemical Tankers\u00a0 segment also includes Corporate functions for the Group. Investments in joint ventures
are presented according to the proportionate consolidation method in the segment reporting, and according to
the equity method in the consolidated income statement and balance sheet.
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"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-381": {
"value": "
2.5 Property, plant and equipment
Property, plant and equipment \u2013 including ships, newbuilding contracts, real estate, office equipment and cars -
are measured at historical cost, which includes purchase price, capitalized interest and other expenses directly
related to the assets. The carrying value of property, plant and equipment represents the cost less accumulated
depreciation and any impairment charges. Newbuilding contracts include payments made under the contracts,
capitalized loan interest and other costs directly associated with the newbuilding and are not depreciated until
the asset is available for use.
The investment is depreciated over the remaining useful life of the asset. We estimate residual value at the
estimated time of disposal of assets, which is generally at the end of their useful life. To assess the residual
value of ships we use the current estimated recycling value. The residual value for ships is estimated by
distributing the total lightweight of the ships in a stainless steel part and a carbon steel part.\u00a0 Steel are estimated
to the market value of steel at year end. Stainless steel is valued at 10% of the quoted nickel price at London
Metal Exchange at the balance sheet date. The residual values are measured on a yearly basis and any
changes have an effect on future depreciation.
Each component of property, plant and equipment that is significant to the total cost of the item is depreciated
separately. The Company allocates the amount initially recognized in respect of an item of property, plant and
equipment to its significant components and depreciates separately each such component over their useful lives.
The carrying amount of ships is split into two components, ships and periodic maintenance.
Day-to-day repairs and maintenance costs are charged to the income statement in the period they are incurred.
The cost of major renovations and periodic maintenance is included in the asset\u2019s carrying amount. At the time of
investing in a ship a portion of the purchase price is defined as periodic maintenance, and this component is
depreciated over the period until the next periodic maintenance.
Expected useful lives of property, plant and equipment are reviewed at each balance sheet date, and where they
differ significantly from previous estimates, depreciation are adjusted accordingly. Changes are valid as from the
dates of estimate changes.
Capital gains and losses on disposals are determined by comparing the disposal proceeds with the carrying
amount and are included in the operating result. When the carrying amount of a property, plant and equipment
will be recovered principally through a sale transaction rather than through continued use they are reported at
the lower of the carrying amount and the fair value less selling costs.
Property, plant and equipment are classified as assets held for sale when their carrying amount is to be
recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the
lower of carrying amount and fair value less costs to sell.
Impairment of property, plant and equipment
The carrying amount of the Group\u2019s tangible assets is reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication exists, or when annual impairment testing for
an asset is required, the asset\u2019s recoverable amount is estimated in order to determine the extent of any
impairment loss. Where the asset does not generate cash flows that are independent from other assets, the
Group estimates the recoverable amount of the cash generating unit to which the asset belongs. A cash
generating unit is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or group of assets. Assets held for sale are excluded from the
cash generating units and are assessed separately for impairment.
The recoverable amount is the highest of the fair market value of the asset, less cost to sell, and value in use.
The value in use is the net present value of future estimated cash flow from the employment of the asset. The
net present value is calculated using the weighted average cost of capital\u00a0 as discount rate. If the recoverable
amount is lower than the book value, impairment has occurred and the asset shall be revalued. Impairment
losses are recognized in income statement.
Impairment losses recognized in the income statement for previous periods are reversed when there is
information that the basis for the impairment loss no longer exists. This reversal is classified in the income
statement as an impairment reversal. The increased carrying amount of an asset attributable to a reversal of an
impairment loss shall not exceed the carrying amount that would have been determined (net of depreciation) had
no impairment loss been recognized for the asset in prior years.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-380": {
"value": "
2.5 Property, plant and equipment
Property, plant and equipment \u2013 including ships, newbuilding contracts, real estate, office equipment and cars -
are measured at historical cost, which includes purchase price, capitalized interest and other expenses directly
related to the assets. The carrying value of property, plant and equipment represents the cost less accumulated
depreciation and any impairment charges. Newbuilding contracts include payments made under the contracts,
capitalized loan interest and other costs directly associated with the newbuilding and are not depreciated until
the asset is available for use.
The investment is depreciated over the remaining useful life of the asset. We estimate residual value at the
estimated time of disposal of assets, which is generally at the end of their useful life. To assess the residual
value of ships we use the current estimated recycling value. The residual value for ships is estimated by
distributing the total lightweight of the ships in a stainless steel part and a carbon steel part.\u00a0 Steel are estimated
to the market value of steel at year end. Stainless steel is valued at 10% of the quoted nickel price at London
Metal Exchange at the balance sheet date. The residual values are measured on a yearly basis and any
changes have an effect on future depreciation.
Each component of property, plant and equipment that is significant to the total cost of the item is depreciated
separately. The Company allocates the amount initially recognized in respect of an item of property, plant and
equipment to its significant components and depreciates separately each such component over their useful lives.
The carrying amount of ships is split into two components, ships and periodic maintenance.
Day-to-day repairs and maintenance costs are charged to the income statement in the period they are incurred.
The cost of major renovations and periodic maintenance is included in the asset\u2019s carrying amount. At the time of
investing in a ship a portion of the purchase price is defined as periodic maintenance, and this component is
depreciated over the period until the next periodic maintenance.
Expected useful lives of property, plant and equipment are reviewed at each balance sheet date, and where they
differ significantly from previous estimates, depreciation are adjusted accordingly. Changes are valid as from the
dates of estimate changes.
Capital gains and losses on disposals are determined by comparing the disposal proceeds with the carrying
amount and are included in the operating result. When the carrying amount of a property, plant and equipment
will be recovered principally through a sale transaction rather than through continued use they are reported at
the lower of the carrying amount and the fair value less selling costs.
Property, plant and equipment are classified as assets held for sale when their carrying amount is to be
recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the
lower of carrying amount and fair value less costs to sell.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-382": {
"value": "
Impairment of property, plant and equipment
The carrying amount of the Group\u2019s tangible assets is reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication exists, or when annual impairment testing for
an asset is required, the asset\u2019s recoverable amount is estimated in order to determine the extent of any
impairment loss. Where the asset does not generate cash flows that are independent from other assets, the
Group estimates the recoverable amount of the cash generating unit to which the asset belongs. A cash
generating unit is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or group of assets. Assets held for sale are excluded from the
cash generating units and are assessed separately for impairment.
The recoverable amount is the highest of the fair market value of the asset, less cost to sell, and value in use.
The value in use is the net present value of future estimated cash flow from the employment of the asset. The
net present value is calculated using the weighted average cost of capital\u00a0 as discount rate. If the recoverable
amount is lower than the book value, impairment has occurred and the asset shall be revalued. Impairment
losses are recognized in income statement.
Impairment losses recognized in the income statement for previous periods are reversed when there is
information that the basis for the impairment loss no longer exists. This reversal is classified in the income
statement as an impairment reversal. The increased carrying amount of an asset attributable to a reversal of an
impairment loss shall not exceed the carrying amount that would have been determined (net of depreciation) had
no impairment loss been recognized for the asset in prior years.
Impairment of joint ventures and associates
The Group determines whether it is necessary to recognize an impairment loss on its investments in joint
ventures or associates. At each reporting date, the Group determines whether there is objective evidence that
the investments are impaired. If there is such evidence, the Group calculates the amount of impairment as the
difference between the recoverable amount and the carrying amount of the investment. Any impairment loss is
recognized as \u2018share of profit or loss from joint venture and associates\u2019.
The recoverable amount is the higher of value in use and fair value less cost to sell. The entire carrying amount
of the investments are tested for impairment as one single asset.
Impairment
Impairments are recognized based on a three-step model, where assets are classified in step 1 at initial
recognition and in subsequent periods if the credit risk of the assets has not increased significantly after initial
recognition. Impairment losses for assets classified in step 1 is measured as the 12-months expected credit loss.
If the credit risk has increased significantly after initial recognition the financial assets shall be classified in step 2
or 3, and expected credit loss is measured at lifetime expected credit loss. When estimating expected credit loss,
the Group takes into consideration historical loss experience, information about current conditions and
expectations for future developments.
A simplified impairment model applies for trade receivables, where impairment losses are measured at lifetime
expected credit loss irrespective of whether credit risk has increased significantly or not.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-383": {
"value": "
Impairment of property, plant and equipment
The carrying amount of the Group\u2019s tangible assets is reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication exists, or when annual impairment testing for
an asset is required, the asset\u2019s recoverable amount is estimated in order to determine the extent of any
impairment loss. Where the asset does not generate cash flows that are independent from other assets, the
Group estimates the recoverable amount of the cash generating unit to which the asset belongs. A cash
generating unit is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or group of assets. Assets held for sale are excluded from the
cash generating units and are assessed separately for impairment.
The recoverable amount is the highest of the fair market value of the asset, less cost to sell, and value in use.
The value in use is the net present value of future estimated cash flow from the employment of the asset. The
net present value is calculated using the weighted average cost of capital\u00a0 as discount rate. If the recoverable
amount is lower than the book value, impairment has occurred and the asset shall be revalued. Impairment
losses are recognized in income statement.
Impairment losses recognized in the income statement for previous periods are reversed when there is
information that the basis for the impairment loss no longer exists. This reversal is classified in the income
statement as an impairment reversal. The increased carrying amount of an asset attributable to a reversal of an
impairment loss shall not exceed the carrying amount that would have been determined (net of depreciation) had
no impairment loss been recognized for the asset in prior years.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-384": {
"value": "
2.6 Leasing
To a large extent, the Group's leasing activity relates to ships where Odfjell is the lessee. The leasing contract
are either bare-boat or time-charter parties. They are typically made for fixed periods of 1 year to 10 years.
Lease payments are normally fixed for the whole lease period.The Group also leases offices in various areas.
Most charter contracts entitles the Group to either extend the lease period and / or to purchase the asset after a
certain period.
Bare-boat lease contracts relates to the lease of a specific ship, while time-charter contracts include the lease of
the specific ship and in addition a non-lease component (crew and maintenance; operating expense). We have
separated the non-lease component by estimating the operating expense based on internal and external sources
(benchmark of ships on external management) for ships of similar classes as ships on time-charter contracts.
Therefore, only payments for the bare-boat element are included when estimating the lease liability.
The existence of extension options and option to purchase the ships are used to maximize operational flexibility
and to reduce residual value risks associated with legal ownership. The extension and purchase options are
exercisable only by Odfjell. Consideration payable for extension or purchasing the underlying ship are included
when estimating the lease payments and lease term only to the extent it is reasonable certain that Odfjell will
exercise its options. A significant part of the leased assets relates to ships where the minimum lease term are up
to 8 years - 10 years. The likelihood of exercising options is made at commencement date, the date when the
underlying asset is made available to Odfjell.
If significant circumstances changes as a consequence of significant events within the control of the Group, the
likelihood of exercising the options is reassessed. Such event could be that one or more of the leased ships are
needed to fulfill the Group's contracts obligations towards customers. Refer to note 3 for further information on
the assessment of lease terms and options.
Leases are recognized as a right-of-use assets and a corresponding liability at the date which the leased asset is
available for use by Odfjell. Assets and liabilities are measured on a present value basis. The discount rate used
is the lessee's incremental borrowing rate. The incremental borrowing rate is the rate that the Group would have
to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.\u00a0 Lease liabilities include the net present value
of the bare-boat element.\u00a0
Right-of-use assets are measured at cost comprising the amount initial measurement of the lease liability and
direct external cost associated with negotiation of the lease contract.
For right-of-use assets where Odfjell is obliged to ensure dry-docking, we estimate the expense for the first dry-
docking, separate this from the right-of-use asset and depreciate the estimated dry-docking over the period from
the commencement of the lease until the estimated time of dry-docking. Once the dry-docking has taken place,
the Group capitalizes these expenses and depreciate over the shorter period until the next scheduled dry-
docking or the remaining lease term.
The non-lease element, deducted from nominal lease payments when calculating the net present value of the
lease liability, is charged to the income statement classified as 'Operating expenses'..
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period producing a constant periodic rate of interest on the remaining balance of the liability each
period.
Payments associated with short term leases of ships, other equipment and all leases of low value assets are
recognized on a straight line basis as an expense in the income statement. Assets regarded as low value assets
are equipment which need electricity to operate (e.g. copy machine, coffee machine). Short term leases of ships
are classified as 'time charter expenses' in the Group's income statement. Other short term leases and leases of
low value assets are classified as 'General and administrative expenses'.
Short term leases are those where the lease term are 12 months or less. Options to extend the lease term are
included in assessment of the lease term once the extension is agreed.
The Group regularly enters into sale-leaseback transactions related to ships. For these transactions, the Group
evaluates whether the transfer of the asset satisfies the requirements of IFRS 15 to account for the transfer as a
sale. For transactions where the Group retains control of the asset, and obtains substantially all of the remaining
benefits based on the length of the lease and/or rights to purchase the asset through options, the transaction is
accounted for as a financial arrangement in accordance with IFRS 9.
For transactions which meet the criteria as a sale and leaseback and the leaseback exceeds 12 months, the
asset is derecognized and the Group recognizes a right-of-use asset equal to a proportion of the previous
carrying amount consistent with the right-of-use retained in the transaction. Gain from such sale is calculated as
the proportion of the rights transferred to the buyer. For leaseback where the lease term is less than 12 months,
no right-of-use asset is recognized and the whole gain from the sale is recognized in the income statement.
The Odfjell Group is acting as pool manager for\u00a0 pools with external pool participants.\u00a0 The lease payments to
external pool participants are entirely variable and therefore not included when calculating the lease liability. The
variable lease payment, less management fee to pool manager, is charged to income statement as 'pool
distributions'.
Determination of the lease term for right-of-use assets
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or
not terminated). Extension options and / or purchase options for ships are not included in the lease liability
because the Group could replace the ships without significant cost or business disruption. Further, future
technological development increases the likelihood of not exercising the options to extend and not to exercise
purchase options. Thus, it is assessed that exercising the options is not reasonably certain. The nominal amount
of lease payments not included in the lease liability is included in Note 12 .
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-385": {
"value": "
2.7 Consolidation
The consolidated statements consist of Odfjell SE and its subsidiaries as at December 31 each year.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtained
control, and continues to be consolidated until the date that such control ceases. Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights results in control, but the Group considers all
facts and circumstances when assessing whether it has power over the investee.
Identified excess values have been allocated to those assets and liabilities to which the value relates. Fair value
adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and
liabilities of the foreign operation and translated at the exchange rate at the balance sheet date. Excess values
are depreciated over the estimated useful lives for the relevant asset and liabilities.
Intercompany transactions, balances and unrealized gains on transactions between Group companies are
eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s
accounting policies.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-386": {
"value": "
2.7 Consolidation
The consolidated statements consist of Odfjell SE and its subsidiaries as at December 31 each year.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtained
control, and continues to be consolidated until the date that such control ceases. Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights results in control, but the Group considers all
facts and circumstances when assessing whether it has power over the investee.
Identified excess values have been allocated to those assets and liabilities to which the value relates. Fair value
adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and
liabilities of the foreign operation and translated at the exchange rate at the balance sheet date. Excess values
are depreciated over the estimated useful lives for the relevant asset and liabilities.
Intercompany transactions, balances and unrealized gains on transactions between Group companies are
eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s
accounting policies.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-387": {
"value": "
2.8 Investment in joint ventures and associates
A joint venture is a type of joint arrangement whereby the parties that have joint control have the right to the net
assets of the joint venture. Joint control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about relevant activities require unanimous consent of the parties sharing control.
An associate is an entity in which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over
those policies.
The Group\u2019s investments in joint ventures and associates are accounted for by using the equity method. Under
this method, the investment is initially recognized at cost. Goodwill relating the associate or joint venture is
included in the carrying amount of the investment and not tested for impairment individually.
The income statement reflects the Group\u2019s share of the net result after tax of the associate or joint venture. Any
depreciation or amortization of the Group\u2019s excess values, net of deferred tax, are included in the net result from
the joint ventures.
Any change in other comprehensive income of the associate or joint venture is presented separately in the
Group\u2019s other comprehensive income.
The financial statements of the associate or joint venture are prepared for the same reporting period as the
Group.\u00a0 When necessary, adjustments are made to bring the accounting principles in line with those of the
Group.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-388": {
"value": "
2.8 Investment in joint ventures and associates
A joint venture is a type of joint arrangement whereby the parties that have joint control have the right to the net
assets of the joint venture. Joint control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about relevant activities require unanimous consent of the parties sharing control.
An associate is an entity in which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over
those policies.
The Group\u2019s investments in joint ventures and associates are accounted for by using the equity method. Under
this method, the investment is initially recognized at cost. Goodwill relating the associate or joint venture is
included in the carrying amount of the investment and not tested for impairment individually.
The income statement reflects the Group\u2019s share of the net result after tax of the associate or joint venture. Any
depreciation or amortization of the Group\u2019s excess values, net of deferred tax, are included in the net result from
the joint ventures.
Any change in other comprehensive income of the associate or joint venture is presented separately in the
Group\u2019s other comprehensive income.
The financial statements of the associate or joint venture are prepared for the same reporting period as the
Group.\u00a0 When necessary, adjustments are made to bring the accounting principles in line with those of the
Group.
Impairment of joint ventures and associates
The Group determines whether it is necessary to recognize an impairment loss on its investments in joint
ventures or associates. At each reporting date, the Group determines whether there is objective evidence that
the investments are impaired. If there is such evidence, the Group calculates the amount of impairment as the
difference between the recoverable amount and the carrying amount of the investment. Any impairment loss is
recognized as \u2018share of profit or loss from joint venture and associates\u2019.
The recoverable amount is the higher of value in use and fair value less cost to sell. The entire carrying amount
of the investments are tested for impairment as one single asset.
(v) Other comprehensive income from associates and joint ventures
Our share of items charged directly to equity in associates and joint ventures are charged directly to Odfjell's
equity as classified into this sub item of the equity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-389": {
"value": "
2.8 Investment in joint ventures and associates
A joint venture is a type of joint arrangement whereby the parties that have joint control have the right to the net
assets of the joint venture. Joint control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about relevant activities require unanimous consent of the parties sharing control.
An associate is an entity in which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control over
those policies.
The Group\u2019s investments in joint ventures and associates are accounted for by using the equity method. Under
this method, the investment is initially recognized at cost. Goodwill relating the associate or joint venture is
included in the carrying amount of the investment and not tested for impairment individually.
The income statement reflects the Group\u2019s share of the net result after tax of the associate or joint venture. Any
depreciation or amortization of the Group\u2019s excess values, net of deferred tax, are included in the net result from
the joint ventures.
Any change in other comprehensive income of the associate or joint venture is presented separately in the
Group\u2019s other comprehensive income.
The financial statements of the associate or joint venture are prepared for the same reporting period as the
Group.\u00a0 When necessary, adjustments are made to bring the accounting principles in line with those of the
Group.
Impairment of joint ventures and associates
The Group determines whether it is necessary to recognize an impairment loss on its investments in joint
ventures or associates. At each reporting date, the Group determines whether there is objective evidence that
the investments are impaired. If there is such evidence, the Group calculates the amount of impairment as the
difference between the recoverable amount and the carrying amount of the investment. Any impairment loss is
recognized as \u2018share of profit or loss from joint venture and associates\u2019.
The recoverable amount is the higher of value in use and fair value less cost to sell. The entire carrying amount
of the investments are tested for impairment as one single asset.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-390": {
"value": "
2.9 Currency
The consolidated financial statements are presented in USD as the Group operates in an international market
where the functional currency is mainly USD.\u00a0 The functional currency of the parent company is USD.
Transactions in non-USD currency are recorded at the exchange rate on the date of the transaction. Receivables
and liabilities in non-USD currencies are translated at the exchange rate on the balance sheet date. All exchange
rate differences are taken to the Income statement.
The balance sheet of foreign subsidiaries with functional currency other than USD is translated at the rate
applicable on the balance sheet date, while the income statement is translated using the monthly average
exchange rate for the accounting period. Exchange rate differences that arise as a result of this are included as
exchange rate differences in other comprehensive income. When a foreign subsidiary is sold, the accumulated
translation adjustment related to that subsidiary is taken to the income statement.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-391": {
"value": "
2.9 Currency
The consolidated financial statements are presented in USD as the Group operates in an international market
where the functional currency is mainly USD.\u00a0 The functional currency of the parent company is USD.
Transactions in non-USD currency are recorded at the exchange rate on the date of the transaction. Receivables
and liabilities in non-USD currencies are translated at the exchange rate on the balance sheet date. All exchange
rate differences are taken to the Income statement.
The balance sheet of foreign subsidiaries with functional currency other than USD is translated at the rate
applicable on the balance sheet date, while the income statement is translated using the monthly average
exchange rate for the accounting period. Exchange rate differences that arise as a result of this are included as
exchange rate differences in other comprehensive income. When a foreign subsidiary is sold, the accumulated
translation adjustment related to that subsidiary is taken to the income statement.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-392": {
"value": "
2.10 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Recognition and derecognition
Financial assets and liabilities are recognized in the statement of financial position at the date the Group
becomes a party to the contractual provisions of the financial instruments. Financial instruments are recognized
at fair value, which normally equals their transaction price. Trade receivables are measured at transaction price.
Transaction costs are recognized in profit or loss, with the exception of transaction costs related to financial
instruments measured at amortized cost or fair value through OCI where transaction costs adjust the instruments
carrying amount and are amortized over the expected life of the instruments.
A financial asset is derecognized when the right to receive and retain cash flows from the asset has expired, or
when the rights to receive the cash flows from the financial asset and substantially all the risks and rewards from
ownership of the financial asset has been transferred. A financial liability is derecognized when it is extinguished,
i.e. when the financial liability is discharged, canceled or expires.
Classification and measurement
Financial assets are measured at amortized cost if their contractual cash flows are solely payment of principal
and interest on the principal amount outstanding, and they are held within a business model whose objective is
to hold financial assets in order to collect contractual cash flows. All financial assets of the Group that are not
derivatives or equity instruments meet these conditions and are measured at amortized cost. Derivatives and
equity instruments are measured at fair value through profit or loss, with the exception of derivative instruments
that are designated as hedging instruments in qualifying hedging relationships.
The Odfjell Group has the following financial assets; loan to associates and joint ventures, trade receivables
(included in current receivables), derivative financial instruments and cash and cash equivalents.
Financial liabilities are accounted for at amortized cost, unless they are held for trading, designated at fair value
through profit or loss or are derivatives. Financial liabilities of the Group are measured at amortized cost, with the
exception of derivatives which are either measured at fair value through profit or loss or are designated as
hedging instruments in qualifying hedging relationships.
The Odfjell Group has the following financial liabilities; Long and short term interest-bearing debt, trade and
other payables (included in 'other current liabilities' in the statement of financial position) and derivative financial
instruments.
Impairment
Impairments are recognized based on a three-step model, where assets are classified in step 1 at initial
recognition and in subsequent periods if the credit risk of the assets has not increased significantly after initial
recognition. Impairment losses for assets classified in step 1 is measured as the 12-months expected credit loss.
If the credit risk has increased significantly after initial recognition the financial assets shall be classified in step 2
or 3, and expected credit loss is measured at lifetime expected credit loss. When estimating expected credit loss,
the Group takes into consideration historical loss experience, information about current conditions and
expectations for future developments.
A simplified impairment model applies for trade receivables, where impairment losses are measured at lifetime
expected credit loss irrespective of whether credit risk has increased significantly or not.
Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge interest rates, foreign currency risk and commodity
price risk (bunkers). Derivative financial instruments are forward currency contracts, interest rate swaps and
forward commodity contracts. Such derivative financial instruments are initially recognized at fair value on the
date on which the contract is entered into and are subsequently remeasured at fair value. Derivatives are
recognized as assets if the fair value is positive and as a liability when the fair value is negative.
For the purpose of hedge accounting, the derivatives are classified as cash flow hedges and hedges highly
probable future cash flows. Forward currency contracts hedges future highly probable cash outflows in NOK and
forward commodity contracts hedges highly probable future purchase of bunkers nominated in USD. Interest rate
swaps hedges future interest payments.
At the inception of the hedging relationship, the Group formally designates and documents the hedge
relationship\u00a0 aligned with the risk management objective and hedging strategy.
Until the highly probable future transaction occurs, the effective portion of the gain or loss on the hedging
instrument is recognized in other comprehensive income in the cash flow hedge reserve. Any ineffective portion
is recognized in the income statement immediately as other financial items. The amount accumulated in the cash
flow reserve is reclassified to profit and loss as an adjustment in the same period as the hedged cash flow affect
profit and loss. In the income statement, adjustments related to forward commodity contracts are included in the
line voyage expense. The adjustments related to forward currency contracts are recognized in operating
expenses and\u00a0 general and administrative expenses. Adjustments associated with interest rate swaps are
included as interest expense.
Derivative financial contracts used as hedging instruments are classified as current assets or current liabilities if
they mature within 12 months after the balance sheet date. Derivative financial contracts maturing more than 12
months after the balance sheet date are classified as non current assets or non current liabilities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-394": {
"value": "
Recognition and derecognition
Financial assets and liabilities are recognized in the statement of financial position at the date the Group
becomes a party to the contractual provisions of the financial instruments. Financial instruments are recognized
at fair value, which normally equals their transaction price. Trade receivables are measured at transaction price.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-393": {
"value": "Recognition and derecognition
A financial asset is derecognized when the right to receive and retain cash flows from the asset has expired, or
when the rights to receive the cash flows from the financial asset and substantially all the risks and rewards from
ownership of the financial asset has been transferred. A financial liability is derecognized when it is extinguished,
i.e. when the financial liability is discharged, canceled or expires.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-395": {
"value": "
Classification and measurement
Financial assets are measured at amortized cost if their contractual cash flows are solely payment of principal
and interest on the principal amount outstanding, and they are held within a business model whose objective is
to hold financial assets in order to collect contractual cash flows. All financial assets of the Group that are not
derivatives or equity instruments meet these conditions and are measured at amortized cost. Derivatives and
equity instruments are measured at fair value through profit or loss, with the exception of derivative instruments
that are designated as hedging instruments in qualifying hedging relationships.
The Odfjell Group has the following financial assets; loan to associates and joint ventures, trade receivables
(included in current receivables), derivative financial instruments and cash and cash equivalents.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-397": {
"value": "
Classification and measurement
Financial assets are measured at amortized cost if their contractual cash flows are solely payment of principal
and interest on the principal amount outstanding, and they are held within a business model whose objective is
to hold financial assets in order to collect contractual cash flows. All financial assets of the Group that are not
derivatives or equity instruments meet these conditions and are measured at amortized cost. Derivatives and
equity instruments are measured at fair value through profit or loss, with the exception of derivative instruments
that are designated as hedging instruments in qualifying hedging relationships",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-396": {
"value": "Classification and measurement
Financial liabilities are accounted for at amortized cost, unless they are held for trading, designated at fair value
through profit or loss or are derivatives. Financial liabilities of the Group are measured at amortized cost, with the
exception of derivatives which are either measured at fair value through profit or loss or are designated as
hedging instruments in qualifying hedging relationships.
The Odfjell Group has the following financial liabilities; Long and short term interest-bearing debt, trade and
other payables (included in 'other current liabilities' in the statement of financial position) and derivative financial
instruments.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-398": {
"value": "
Impairment
Impairments are recognized based on a three-step model, where assets are classified in step 1 at initial
recognition and in subsequent periods if the credit risk of the assets has not increased significantly after initial
recognition. Impairment losses for assets classified in step 1 is measured as the 12-months expected credit loss.
If the credit risk has increased significantly after initial recognition the financial assets shall be classified in step 2
or 3, and expected credit loss is measured at lifetime expected credit loss. When estimating expected credit loss,
the Group takes into consideration historical loss experience, information about current conditions and
expectations for future developments.
A simplified impairment model applies for trade receivables, where impairment losses are measured at lifetime
expected credit loss irrespective of whether credit risk has increased significantly or not.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-399": {
"value": "
Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge interest rates, foreign currency risk and commodity
price risk (bunkers). Derivative financial instruments are forward currency contracts, interest rate swaps and
forward commodity contracts. Such derivative financial instruments are initially recognized at fair value on the
date on which the contract is entered into and are subsequently remeasured at fair value. Derivatives are
recognized as assets if the fair value is positive and as a liability when the fair value is negative.
For the purpose of hedge accounting, the derivatives are classified as cash flow hedges and hedges highly
probable future cash flows. Forward currency contracts hedges future highly probable cash outflows in NOK and
forward commodity contracts hedges highly probable future purchase of bunkers nominated in USD. Interest rate
swaps hedges future interest payments.
At the inception of the hedging relationship, the Group formally designates and documents the hedge
relationship\u00a0 aligned with the risk management objective and hedging strategy.
Until the highly probable future transaction occurs, the effective portion of the gain or loss on the hedging
instrument is recognized in other comprehensive income in the cash flow hedge reserve. Any ineffective portion
is recognized in the income statement immediately as other financial items. The amount accumulated in the cash
flow reserve is reclassified to profit and loss as an adjustment in the same period as the hedged cash flow affect
profit and loss. In the income statement, adjustments related to forward commodity contracts are included in the
line voyage expense. The adjustments related to forward currency contracts are recognized in operating
expenses and\u00a0 general and administrative expenses. Adjustments associated with interest rate swaps are
included as interest expense.
Derivative financial contracts used as hedging instruments are classified as current assets or current liabilities if
they mature within 12 months after the balance sheet date. Derivative financial contracts maturing more than 12
months after the balance sheet date are classified as non current assets or non current liabilities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-400": {
"value": "
Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge interest rates, foreign currency risk and commodity
price risk (bunkers). Derivative financial instruments are forward currency contracts, interest rate swaps and
forward commodity contracts. Such derivative financial instruments are initially recognized at fair value on the
date on which the contract is entered into and are subsequently remeasured at fair value. Derivatives are
recognized as assets if the fair value is positive and as a liability when the fair value is negative.
For the purpose of hedge accounting, the derivatives are classified as cash flow hedges and hedges highly
probable future cash flows. Forward currency contracts hedges future highly probable cash outflows in NOK and
forward commodity contracts hedges highly probable future purchase of bunkers nominated in USD. Interest rate
swaps hedges future interest payments.
At the inception of the hedging relationship, the Group formally designates and documents the hedge
relationship\u00a0 aligned with the risk management objective and hedging strategy.
Until the highly probable future transaction occurs, the effective portion of the gain or loss on the hedging
instrument is recognized in other comprehensive income in the cash flow hedge reserve. Any ineffective portion
is recognized in the income statement immediately as other financial items. The amount accumulated in the cash
flow reserve is reclassified to profit and loss as an adjustment in the same period as the hedged cash flow affect
profit and loss. In the income statement, adjustments related to forward commodity contracts are included in the
line voyage expense. The adjustments related to forward currency contracts are recognized in operating
expenses and\u00a0 general and administrative expenses. Adjustments associated with interest rate swaps are
included as interest expense.
Derivative financial contracts used as hedging instruments are classified as current assets or current liabilities if
they mature within 12 months after the balance sheet date. Derivative financial contracts maturing more than 12
months after the balance sheet date are classified as non current assets or non current liabilities.
Cash flow hedging
The Group's currency, interest and bunkers exposure is long-term, visible and relatively stable. Derivatives used
to hedge these expenses is usually classified as cash flow hedges and accounted for at fair value. Changes in
fair value prior to maturity is accounted for under assets or liabilities and other comprehensive income. At
maturity, the result of the hedging transactions is accounted for in the account to the underlying exposure e.g.
voyage-, operating-, general and administrative-, or financial expenses.
Currency
Future expenses in the major non-USD currencies are estimated based on actual periodic expenses, adjusted
for anticipated changes. Expected cash flows are hedged in accordance with the Group's guidelines, primarily by
the use of forward exchange contracts for a period of up to two years.
Significant non-recurring exposures relating to e.g. dividends, investments or sales, can be hedged as the
obligation is fixed and definite, but would typically not qualify for hedge accounting and thus be classified as non-
hedging.
Bunkers
A substantial part of the Group's bunkers exposure is covered through bunkers adjustment clauses in contracts
of affreightments. Bunkers consumption from contracts without bunkers adjustment clauses and spot volumes
are considered for financial hedges using forward purchase contracts and options for a period of up to two years.
Bunkers adjustment clauses in new contracts for larger volumes or longer contract periods can be tightened in
the financial markets on a case-by-case basis.
Interest rates
The Group uses financial interest rate derivatives, mainly interest rate swaps for a period of up to ten years, to
reduce the variability of interest expenses that arises because of changes in the USD LIBOR or SOFR on
mortgaged loans, other financial liabilities and unsecured bonds.
Fair value hedging
From time to time, the Group will issue non-USD denominated debt instruments and swap interest payments and
principal back to USD if the combined cost of the debt instrument and swap is deemed lower than issuing the
same in USD. These cross-currency derivatives are classified as fair value hedges and measured at market
value with a corresponding offsetting change in market value of the underlying debt instrument.
Per December 31, 2022, unsecured NOK bonds of total NOK 1 825 million has been hedged to USD 213 million
(NOK 2 156 million was hedged to USD 252 million as per December 21, 2021).",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-401": {
"value": "
Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge interest rates, foreign currency risk and commodity
price risk (bunkers). Derivative financial instruments are forward currency contracts, interest rate swaps and
forward commodity contracts. Such derivative financial instruments are initially recognized at fair value on the
date on which the contract is entered into and are subsequently remeasured at fair value. Derivatives are
recognized as assets if the fair value is positive and as a liability when the fair value is negative.
For the purpose of hedge accounting, the derivatives are classified as cash flow hedges and hedges highly
probable future cash flows. Forward currency contracts hedges future highly probable cash outflows in NOK and
forward commodity contracts hedges highly probable future purchase of bunkers nominated in USD. Interest rate
swaps hedges future interest payments.
At the inception of the hedging relationship, the Group formally designates and documents the hedge
relationship\u00a0 aligned with the risk management objective and hedging strategy.
Until the highly probable future transaction occurs, the effective portion of the gain or loss on the hedging
instrument is recognized in other comprehensive income in the cash flow hedge reserve. Any ineffective portion
is recognized in the income statement immediately as other financial items. The amount accumulated in the cash
flow reserve is reclassified to profit and loss as an adjustment in the same period as the hedged cash flow affect
profit and loss. In the income statement, adjustments related to forward commodity contracts are included in the
line voyage expense. The adjustments related to forward currency contracts are recognized in operating
expenses and\u00a0 general and administrative expenses. Adjustments associated with interest rate swaps are
included as interest expense.
Derivative financial contracts used as hedging instruments are classified as current assets or current liabilities if
they mature within 12 months after the balance sheet date. Derivative financial contracts maturing more than 12
months after the balance sheet date are classified as non current assets or non current liabilities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-402": {
"value": "
2.11 Inventories
Bunkers, spare parts and consumables are accounted for at purchase price, on a first-in, first-out basis.
Inventories are measured at the lower of cost and net realizable value. If inventory is written down to net
realizable value, the write down is charged to the income statement.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-403": {
"value": "
2.12 Cash and cash equivalents
The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash in hand
and in bank, deposits held at call with banks and other short-term highly liquid investments with maturities of
three months or less from the date of acquisition.
The amount of cash and cash equivalents in the cash flow statement does not include available credit facilities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-404": {
"value": "
2.12 Cash and cash equivalents
The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash in hand
and in bank, deposits held at call with banks and other short-term highly liquid investments with maturities of
three months or less from the date of acquisition.
The amount of cash and cash equivalents in the cash flow statement does not include available credit facilities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-405": {
"value": "
2.13 Equity
Paid in equity
(i) Share capital
Ordinary shares (A-and B-shares) are classified as equity. The paid in equity equals the nominal value per share.
(ii) Treasury shares
Where any Group company purchases the Company\u2019s equity share capital (treasury shares), the consideration
paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity
attributable to the Company\u2019s equity holders until the shares are cancelled or reissued.
When such shares are subsequently reissued, any consideration received, net of any directly attributable
incremental transaction costs and the related income tax effects, is included in equity attributable to the
Company\u2019s equity holders.
(iii) Share premium
The excess value of the total paid-in-capital is not reflected in the nominal value of the shares. Transaction costs
of an equity transaction are accounted for as a deduction in share premium, net of any related income tax
benefit.
Other equity
(i) Translation differences
Translation differences arise in connection with currency differences when foreign entities, joint ventures and
associates are consolidated. When a foreign operation is sold, the accumulated translation differences linked to
the entity are reversed and recognized in profit or loss in the same period as the gain or loss on the sale is
recognized.
(ii) Cash flow hedge reserve
The cash flow hedge reserve includes the total net unrealized change in the fair value of the cash flow hedge
derivatives. When the hedged cash flow matures or is no longer expected to occur, the net change in fair value is
transferred to the income statement.
(iii) Retained earnings
Retained earnings equals net result less dividend paid to shareholders and other adjustments. The net result
attributable to and available for distribution to the shareholders. Dividends are recorded as a deduction to Other
equity in the period in which they are approved by the shareholders.
(iv) Pension remeasurement
The Group holds some minor defined benefit plans. Remeasurement of these defined pension obligations as a
consequence of changes in assumptions, are recognized directly in equity.
(v) Other comprehensive income from associates and joint ventures
Our share of items charged directly to equity in associates and joint ventures are charged directly to Odfjell's
equity as classified into this sub item of the equity.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-406": {
"value": "
(i) Share capital
Ordinary shares (A-and B-shares) are classified as equity. The paid in equity equals the nominal value per share.
(ii) Treasury shares
Where any Group company purchases the Company\u2019s equity share capital (treasury shares), the consideration
paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity
attributable to the Company\u2019s equity holders until the shares are cancelled or reissued.
When such shares are subsequently reissued, any consideration received, net of any directly attributable
incremental transaction costs and the related income tax effects, is included in equity attributable to the
Company\u2019s equity holders.
(iii) Share premium
The excess value of the total paid-in-capital is not reflected in the nominal value of the shares. Transaction costs
of an equity transaction are accounted for as a deduction in share premium, net of any related income tax
benefit.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-407": {
"value": "
(ii) Treasury shares
Where any Group company purchases the Company\u2019s equity share capital (treasury shares), the consideration
paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity
attributable to the Company\u2019s equity holders until the shares are cancelled or reissued.
When such shares are subsequently reissued, any consideration received, net of any directly attributable
incremental transaction costs and the related income tax effects, is included in equity attributable to the
Company\u2019s equity holders.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-408": {
"value": "
2.14 Taxes
The shipping activities are operated in several countries and under different tax schemes, including the ordinary
tax system in Norway, the Norwegian shipping tax system and the Approved International Shipping system in
Singapore. In addition, we operate under local tax systems, most importantly in Brazil.
The Group\u2019s taxes include taxes of Group companies based on taxable profit for the relevant financial period,
together with tax adjustments for previous periods and any change in deferred taxes. Withholding tax on
dividend received and withholding tax on capital gains are classified as income tax. Tax credits arising from
subsidiaries\u2019 distribution of dividends are deducted from tax expenses.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
\u2022where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
\u2022in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available to
offset the temporary differences. We recognize formerly unrecognized deferred tax assets to the extent that it
has become probable that we can utilize the deferred tax asset. Similarly, the Company will reduce its deferred
tax assets to the extent that it no longer can utilize these.
Deferred tax and deferred tax assets for the current and prior periods are measured at the amount expected to
be paid to or recovered from the relevant tax authorities, using the tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date. Deferred tax and deferred tax assets are recognized
irrespective of when the differences will be reversed. Deferred tax and deferred tax assets are recognized at
their nominal value and are classified as non-current liabilities (non-current assets) in the balance sheet.
Companies taxed under special shipping tax systems will generally not be taxed on the basis of their net
operating profit. A portion of net financial income and other non-shipping activities are normally taxed at the
ordinary applicable tax rate. Taxation under shipping tax regimes requires compliance with certain requirements,
and breach of such requirements may lead to a forced exit of the regime.
Tax payable and deferred taxes are recognized directly in equity to the extent that they relate to factors that are
recognized directly in equity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-409": {
"value": "
2.14 Taxes
The shipping activities are operated in several countries and under different tax schemes, including the ordinary
tax system in Norway, the Norwegian shipping tax system and the Approved International Shipping system in
Singapore. In addition, we operate under local tax systems, most importantly in Brazil.
The Group\u2019s taxes include taxes of Group companies based on taxable profit for the relevant financial period,
together with tax adjustments for previous periods and any change in deferred taxes. Withholding tax on
dividend received and withholding tax on capital gains are classified as income tax. Tax credits arising from
subsidiaries\u2019 distribution of dividends are deducted from tax expenses.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
\u2022where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
\u2022in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available to
offset the temporary differences. We recognize formerly unrecognized deferred tax assets to the extent that it
has become probable that we can utilize the deferred tax asset. Similarly, the Company will reduce its deferred
tax assets to the extent that it no longer can utilize these.
Deferred tax and deferred tax assets for the current and prior periods are measured at the amount expected to
be paid to or recovered from the relevant tax authorities, using the tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date. Deferred tax and deferred tax assets are recognized
irrespective of when the differences will be reversed. Deferred tax and deferred tax assets are recognized at
their nominal value and are classified as non-current liabilities (non-current assets) in the balance sheet.
Companies taxed under special shipping tax systems will generally not be taxed on the basis of their net
operating profit. A portion of net financial income and other non-shipping activities are normally taxed at the
ordinary applicable tax rate. Taxation under shipping tax regimes requires compliance with certain requirements,
and breach of such requirements may lead to a forced exit of the regime.
Tax payable and deferred taxes are recognized directly in equity to the extent that they relate to factors that are
recognized directly in equity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-410": {
"value": "
2.14 Taxes
The shipping activities are operated in several countries and under different tax schemes, including the ordinary
tax system in Norway, the Norwegian shipping tax system and the Approved International Shipping system in
Singapore. In addition, we operate under local tax systems, most importantly in Brazil.
The Group\u2019s taxes include taxes of Group companies based on taxable profit for the relevant financial period,
together with tax adjustments for previous periods and any change in deferred taxes. Withholding tax on
dividend received and withholding tax on capital gains are classified as income tax. Tax credits arising from
subsidiaries\u2019 distribution of dividends are deducted from tax expenses.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
\u2022where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
\u2022in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available to
offset the temporary differences. We recognize formerly unrecognized deferred tax assets to the extent that it
has become probable that we can utilize the deferred tax asset. Similarly, the Company will reduce its deferred
tax assets to the extent that it no longer can utilize these.
Deferred tax and deferred tax assets for the current and prior periods are measured at the amount expected to
be paid to or recovered from the relevant tax authorities, using the tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date. Deferred tax and deferred tax assets are recognized
irrespective of when the differences will be reversed. Deferred tax and deferred tax assets are recognized at
their nominal value and are classified as non-current liabilities (non-current assets) in the balance sheet.
Companies taxed under special shipping tax systems will generally not be taxed on the basis of their net
operating profit. A portion of net financial income and other non-shipping activities are normally taxed at the
ordinary applicable tax rate. Taxation under shipping tax regimes requires compliance with certain requirements,
and breach of such requirements may lead to a forced exit of the regime.
Tax payable and deferred taxes are recognized directly in equity to the extent that they relate to factors that are
recognized directly in equity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-411": {
"value": "
2.15 Borrowing cost
General and specific borrowing costs directly attributable to the acquisition, construction and production of
qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-412": {
"value": "
2.16 Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past
events, and it is probable that an outflow of resources will be required to settle the obligation. Provisions are
based on best estimates. Provisions are reviewed on each balance sheet date and reflect the best estimate of
the liability. If the effect of the time value of money is material, normally more than twelve months, provisions are
discounted using a current pre tax rate that reflects the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognized as a finance cost.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-413": {
"value": "
2.17 Pension cost and liabilities
The Group operates a number of pension plans in accordance with the local conditions and practices in the
countries in which it operates. Such pension plans are defined benefit plans or contribution plans according to
the customary pension plans prevailing in the country concerned.
Defined benefit pension plans are pension plans with retirement, disability and termination income benefits. The
retirement income benefits are generally a function of years of employment and final salary with the Company.
Generally, the schemes are funded through payments to insurance companies. The liability in respect of defined
benefit pension plans is the present value of the accumulated defined benefit obligation at the balance sheet
date less the fair value of plan assets. The net pension liability is calculated based on assumptions with regards
to interest rates, future salary adjustments etc. These assumptions are based on historical experience and
current market conditions. The cost of providing pensions is charged to income statement so as to spread the
regular cost over the vesting period of the employees. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive
income.
For defined contribution plans, contributions are paid to pension insurance plans. Once the contributions have
been paid, there are no further payment obligations. Contributions to defined contribution plans are charged to
the income statement in the period to which the contributions relate.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-414": {
"value": "
2.18 Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity
holders of the parent company by the weighted average number of ordinary shares outstanding during the year.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-415": {
"value": "
2.19 Comparatives
Comparative figures have been reclassified to conform to changes in presentation in the current year when there
are changes in accounting principles, corrections of errors or operations defined as discontinued.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-416": {
"value": "
2.20 Related parties
In the normal course of the conduct of its business, the Group enters into a number of transactions with related
parties. The Company considers these arrangements to be on reasonable market terms.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-417": {
"value": "
2.21 Classification in the financial statement
Odfjell has used a classification based on a combination of nature and function in the income statement.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-418": {
"value": "
Note 3 Critical accounting judgment and key sources of estimation uncertainties
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires the Management to exercise its judgment in the process of applying the Group\u2019s
accounting policies. The areas involving higher degree and judgment or complexity, or areas where assumptions
and estimates are significant to the consolidated financial statements are:
Revenue from contract with customers
The Group applied the following judgments that significantly affect the determination of the amount and timing of
revenue from contracts with customers:
(i) Timing of freight revenue
The Group generates its revenue from contract with customers from the transportation of liquids by sea. After
commencement of a sea voyage, estimated revenue is recognized and prorated over time from a cargo is
loaded to the estimated time of discharge. Estimated revenue and time from load to discharge is being updated
as the voyage processes to include most recent data, and changes in estimates will impact revenue and contract
balances.\u00a0 See note 24 for information about contract balances.
(ii) Variable consideration - demurrage
The Group is estimating demurrage revenue as a variable consideration when delays occur and the vessel is
prevented from loading or discharging cargo within the stipulated\u00a0lay time. The variable consideration based on
contracted price terms and estimated excess time taken to discharge or load are being recognized as part of the
freight service revenue over time for the remaining voyage (from the delay occur to the discharge port). Changes
in estimates related to demurrage will impact revenue and contract balances.
(iii) Principal versus agent considerations
Odfjell operates pools of ships delivering freight services to customers and external ships\u00a0 participate in the
pools. The Group determined that it does act as a principal, not as an agent, for those external ships in the pool
since the operations of the external vessels and the freight service delivered to the customer is controlled by
Odfjell. Revenues generated by external ships in the pool are therefore recognized as gross revenue in the
income statement.
If some vessels have been on commercial management with Odfjell (prior to entering into pool participation
agreements), the Group determines that it does act as an agent, not a principal, for the ships on commercial
management since Odfjell does not have the risk or ability to direct and control the freight services provided by
these ships.\u00a0 Revenues generated by ships on commercial management are therefore not recognized as gross
revenue in the income statement.
Climate and regulatory risk
In preparing the financial statements, the Group considers transition to a low carbon economy and the potential
impact of climate change. The International Maritime Organization (IMO) initial strategy envisages a reduction in
carbon intensity by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to a 2008 baseline.
While the 40% reduction target is on a ship-by-ship basis, the 2050 strategy is not fully crystallized. The Carbon
Intensity Indicator (CII) is a rating system for ships which is a mandatory measure that came into effect at the
beginning of 2023. The CII rating is on a scale from A-E where D rating over three years or an E rating for one
single year requires a corrective action plan to bring the performance to C or above rating. In 2025 IMO will
conduct a review to adjust or correct CII to ensure they hit their 70% reduction target.
The Group has worked consistently over several years with propulsion efficiency measures and other initiatives
to improve the fuel efficiency for the vessels. As a result, internal analysis indicates that all our owned vessels
are in compliance with the carbon Intensity Indicator (CII), achieving a C-rating or better in 2023. To achieve the
same ratings in 2030, the analysis shows that for some vessels we will either have to increase the fuel efficiency
further by investing in additional energy-saving devices or alternatively adjust the speed for these vessels.
The shipping industry will become incrementally subject to the EU Emission Trading System (ETS) in 2024
which will require the Group to purchase carbon-offset credits. As a consequence, the Group's voyage expenses
will increase and could impact the profitability and cash flows unless offset by an increase in revenue. In addition
to the Group's strategy to operate a fuel-efficient fleet, Odfjell will seek to implement clauses in freight contracts
ensuring recovery for the added voyage expenses.
The future impact from climate change may encompass an increase in extreme weather resulting in re-routing,
increased risk of port and infrastructure damages causing disruption to regular operations for both the Group and
its customers, lower productivity and increased operational cost. These sources of uncertainties are primarily
related to our vessels including right-of-use assets impacting the:
\u2013Useful life of vessels
\u2013Residual value of vessels\u00a0
\u2013Cash inflows from continuing use of the Group's vessels when assessing the recoverable amount.
In the sections 'Depreciation and residual value of ships' and 'Estimation of useful life of vessels' we have
described our assessment of the useful life of vessels and recycling values and consequences if our
assessments are wrong.\u00a0 When assessing the residual value of vessels, we assume that the vessels\u00a0 are
recycled according to prevailing regulatory requirements and at the location where the best recycling price is
achieved.
The established remaining useful life of vessels is used as basis for the time period over which we consider cash
flows from our vessels when assessing the recoverable amount, see Note 13 of impairment assessment.
Depreciation and residual value of ships
Ships are recognized at historical cost less accumulated depreciation and any impairment charges. The cost of
the ships includes the contract price, expenses related to site team and pre-delivery borrowings incurred. The
cost less residual value is depreciated on a straight-line basis over the ships estimated useful life.
The cost of the ships is divided into separate components for depreciation purposes. Estimated cost of first time
dry-docking is deducted from the cost of the ship and depreciated separately over a period until the next dry-
docking. The residual value of these the dry-docking components is zero.
Residual value is estimated based upon the latest available steel-price/stainless steel price and the lightweight of
the ships. Stainless steel part of the lightweight of the ships is separately assessed and valued as part of the
total residual value. Residual values are updated once a year.
Estimated useful life of the ships is 25-30 years. Estimated cost of dry-docking is depreciated over an estimated
period of 5 years for ships not older than 15 years. Capitalized dry-docking for ships older than 15 years are
depreciated over 2.5 years. If actual useful life of the ships differs from estimated useful life an impairment loss
could occur.
If residual value is incorrect, the future depreciation would be affected, either as a reduction if residual value is
understated or as an increase in deprecation if residual value is overstated.
For vessels where the Group's intended use is shorter than its economic life, the estimated sales price less cost
of disposal is used as residual value.
Estimation of useful life of vessels
The useful life of the Group's owned vessels is the expected economic life of the vessels. Economic life is the
period over which it is economic profitable to use the vessel. Wear and tear, technical and commercial
obsolescence and environmental requirements are factors affecting the assessment of the useful life.
Over the last years, fuel efficiency initiatives have improved the fuel efficiency and also made the vessels more
competitive than the industry at large. Internal assessments show that owned vessels will, over the their
remaining useful life, be compliant with current IMO requirement of carbon emission reductions (40% reduction
within 2030 compared to a 2008 baseline).
Investments due to new environmental requirements, if any,\u00a0 and periodic dry-dockings are conducted to comply
with requirements from various stakeholders.
Odfjell Group has applied 25-30 years as estimated useful life of its owned vessels consistently over the years.
If useful life is shortened, the annual depreciation will increase and value in use calculated when testing assets
for impairment would be reduced.
Determination of the lease term for right-of-use assets
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or
not terminated). Extension options and / or purchase options for ships are not included in the lease liability
because the Group could replace the ships without significant cost or business disruption. Further, future
technological development increases the likelihood of not exercising the options to extend and not to exercise
purchase options. Thus, it is assessed that exercising the options is not reasonably certain. The nominal amount
of lease payments not included in the lease liability is included in Note 12 .
Impairment test chemical tanker vessels
The chemical tanker fleet is reviewed for impairment whenever events or changes in circumstances indicate the
carrying amount of the fleet may not be recoverable. Management measures the recoverable amount of an asset
or Cash Generating Unit (CGU) by comparing its carrying amount to the higher of its fair value less cost of
disposal or value in use that the asset or CGU is expected to generate over its remaining useful life.
In determining fair value less cost of disposal we use indicative broker values from independent ship brokers. In
assessing value in use, the estimated future cash flows are discounted to their present value using an average
weighted cost of capital that reflects current market assessments.
CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or group of assets. The Group has identified one CGUs within the chemical
tanker segment, the deep-sea trade together with the regional South America trade. The Groups right-of-use
assets in the vessel category are included in the deep-sea CGU.
As the Odfjell vessels within each CGU are interchangeable through a logistical system / fleet scheduling and
that customer contracts are not linked to a specific vessel,\u00a0 cash inflows are therefore dependent of this
scheduling and\u00a0 chemical tankers vessels are seen together as a portfolio of vessels. In addition, the pool of
officers and crew are used throughout the fleet. Odfjell has a strategy of a total crew composition and how the
crew is dedicated to the individual vessels varies. Changing the crew between two vessels can change the net
present value per vessel without any effect for the Group. Vessels will only be impaired if the total recoverable
amount of the vessels within each CGU is lower than the carrying amount related to that CGU.
If an asset or CGU is considered to be impaired, impairment is recognized in an amount equal to the excess of
the carrying amount of the asset or CGU over its recoverable amount. A previously recognized impairment loss
is reversed only if there has been a change in the assumptions used to determine the asset's recoverable since
the last impairment loss was recognized. Any reversal is limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss be recognized for the asset in prior years.
Factors that indicates impairment which trigger impairment testing may be significant decline in chemical tanker
freight rates, significant decline in market values of vessels, significant underperformance compared to projected
operating results, change in strategy for the business, significant negative industry or economic trends,
significant loss of market share, significant unfavorable regulatory decisions. In addition, the company's market
capitalization below the book value of equity would be an indicator of impairment.
The key assumptions used to determine the recoverable amount for the\u00a0 CGUs, including a sensitivity analysis,
are disclosed and further explained in note 13.
Impairment test of investments in joint ventures
According to the equity method, the Group determines whether it is necessary to recognize an impairment loss
on its investments in joint ventures. At each reporting date, the Group determines whether there is objective
evidence that the investments are impaired. If there is such evidence, the Group calculates the amount of
impairment as the difference between the recoverable amount and the carrying amount of the investment. Any
impairment loss is recognized in the Income Statement as \u2018share of profit or loss from joint venture and
associates\u2019.
The recoverable amount is the higher of value in use and fair value less cost to sell. The entire carrying amount
of the investment is tested for impairment as one single asset/one cash generating unit. If the joint venture is a
group itself (a joint venture sub-group), we estimate our share of the recoverable amount of the total investment
in the joint venture by adding up estimated share of the fair value less cost to sell or value in use for each
underlying cash generating unit in the joint venture sub-group.
We test the investment in the Tank Terminals joint ventures for impairment. We estimate the fair value less cost
to sell or value in use for the investment based on adding up Odfjell\u2019s share of the estimated values for each
tank terminal which represents underlying CGUs in the joint venture.
When calculating the value in use at the balance sheet date for the deep-sea/regional South-America CGU , the
following key assumptions are applied. This CGU also contains the Group's right-of-use assets (vessels).
| | |
| | |
Weighted average cost of capital | | |
Average annual growth in time charter earnings the first four year after the balance sheet date (arithmetic average) | | |
Estimated useful life of vessels | | |
All cash flows in the value in use calculation are assumed to increase with 2.5% in the entire remaining useful
life of the vessels. The above table indicate assumptions used in the base case. In 2021, we assumed a growth
of 4.5% the first four years, and thereafter 2% growth over the remaining useful life of the vessels.
Applying the above assumptions, the value in use calculation did not reveal any need for impairment.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-419": {
"value": "
Note 4 Segment information and disaggregation of revenues
The operating segments are organized and managed separately according to the nature of the products and
services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The Company has two reportable operating segments: Chemical Tankers and Tank
Terminals.
The Chemical Tankers involve a 'round the world' service, servicing ports in Europe, North and South America,
the Middle East and Asia, Australia and Africa. Our fleet composition enables us to offer both global and regional
transportation.
The Tank Terminals segment offers storage of various chemical and petroleum products and is operated through
joint ventures with our share owned by the subsidiary Odfjell Terminals BV. In addition, this segment plays an
important operational role in our cargo-consolidation program so as to reduce the time our vessels spend in
ports, reduce thereby emission in port, and enable us to be one of the world-leaders in combined shipping and
storage services.
Pricing of services and transactions between operating segments are set on an arm\u2019s length basis in a manner
similar to transactions with third parties. Segment revenue, segment expenses and segment results include
transactions between operating gross segments. These transactions are proportionately eliminated in below
operating segment data.
The Group provide geographical data for revenue and total assets, as the reliability measurement criteria cannot
be met for other items. The Group\u2019s activities are mainly divided among the following regions: Europe, North and
South America, the Middle East and Asia, Australia and Africa. Vessels and newbuilding contracts are not
allocated to specific geographical areas as they generally trade worldwide.
The Chemical Tankers\u00a0 segment also includes Corporate functions for the Group. Investments in joint ventures
are presented according to the proportionate consolidation method in the segment reporting, and according to
the equity method in the consolidated income statement and balance sheet.
OPERATING SEGMENT DATA (according to the proportionate consolidation method):
| | | | | | | | | | |
| | | | | | |
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| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Other operating income / expenses | | | | | | | | | | |
Operating result before depreciation (EBITDA) | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Capital gain/loss on fixed assets/sale of business | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Non-current interest-bearing debt | | | | | | | | | | |
Non-current debt, right-of-use assets | | | | | | | | | | |
Other non-current liabilities | | | | | | | | | | |
Current interest-bearing debt | | | | | | | | | | |
Current debt, right-of-use assets | | | | | | | | | | |
Other current liabilities | | | | | | | | | | |
Total equity and liabilities | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Segment revenue from joint ventures | | | | | | | | | | |
Consolidated revenue in income statement | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Segment EBIT from\u00a0 joint ventures | | | | | | | | | | |
Share of net result from joint ventures | | | | | | | | | | |
Consolidated EBIT in income statement | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Investment in joint ventures | | | | | | | | | | |
Total consolidated assets in statement of financial position | | | | | | | | | | |
| | | | | | | | | | |
Total segment liabilities | | | | | | | | | | |
| | | | | | | | | | |
Total consolidated liabilities in statement of financial position | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
1) In the first quarter of 2021, the Group discontinued its reporting of the Gas Carriers segment and the two LPG/Ethylene carriers were
included in the Chemical Tankers segment in our reporting. Both LPG/Ethylene carriers are now sold, and the Group is no longer involved in
the Gas Carrier segment.
Gross revenue and assets per geographical area (according to the equity method)
Shipping revenue is allocated on the basis of the area in which the cargo is loaded. Total assets are allocated to
the area where the respective assets are located while ships and new building contracts are not allocated to a
certain area as the ships sail on a worldwide basis.
| | | | | | | |
| | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Investment in associates and joint ventures | | | | | | | |
Unallocated ships and newbuilding contracts | | | | | | | |
| | | | | | | |
Disaggregation of revenue (according to the equity method)
The Group's gross revenue (Chemical Tankers segment only) has been disaggregated and presented in the
tables below:
| | |
| | |
| | |
Revenue from contract with customers | | |
| | |
| | |
| | |
Revenue from contract with customers disaggregated by type of contract: | | |
Charter of Affreightment contracts | | |
| | |
Revenue from contract with customers | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-420": {
"value": "
Note 4 Segment information and disaggregation of revenues
The operating segments are organized and managed separately according to the nature of the products and
services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The Company has two reportable operating segments: Chemical Tankers and Tank
Terminals.
The Chemical Tankers involve a 'round the world' service, servicing ports in Europe, North and South America,
the Middle East and Asia, Australia and Africa. Our fleet composition enables us to offer both global and regional
transportation.
The Tank Terminals segment offers storage of various chemical and petroleum products and is operated through
joint ventures with our share owned by the subsidiary Odfjell Terminals BV. In addition, this segment plays an
important operational role in our cargo-consolidation program so as to reduce the time our vessels spend in
ports, reduce thereby emission in port, and enable us to be one of the world-leaders in combined shipping and
storage services.
Pricing of services and transactions between operating segments are set on an arm\u2019s length basis in a manner
similar to transactions with third parties. Segment revenue, segment expenses and segment results include
transactions between operating gross segments. These transactions are proportionately eliminated in below
operating segment data.
The Group provide geographical data for revenue and total assets, as the reliability measurement criteria cannot
be met for other items. The Group\u2019s activities are mainly divided among the following regions: Europe, North and
South America, the Middle East and Asia, Australia and Africa. Vessels and newbuilding contracts are not
allocated to specific geographical areas as they generally trade worldwide.
The Chemical Tankers\u00a0 segment also includes Corporate functions for the Group. Investments in joint ventures
are presented according to the proportionate consolidation method in the segment reporting, and according to
the equity method in the consolidated income statement and balance sheet.
OPERATING SEGMENT DATA (according to the proportionate consolidation method):
| | | | | | | | | | |
| | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Other operating income / expenses | | | | | | | | | | |
Operating result before depreciation (EBITDA) | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Capital gain/loss on fixed assets/sale of business | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Non-current interest-bearing debt | | | | | | | | | | |
Non-current debt, right-of-use assets | | | | | | | | | | |
Other non-current liabilities | | | | | | | | | | |
Current interest-bearing debt | | | | | | | | | | |
Current debt, right-of-use assets | | | | | | | | | | |
Other current liabilities | | | | | | | | | | |
Total equity and liabilities | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Segment revenue from joint ventures | | | | | | | | | | |
Consolidated revenue in income statement | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Segment EBIT from\u00a0 joint ventures | | | | | | | | | | |
Share of net result from joint ventures | | | | | | | | | | |
Consolidated EBIT in income statement | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Investment in joint ventures | | | | | | | | | | |
Total consolidated assets in statement of financial position | | | | | | | | | | |
| | | | | | | | | | |
Total segment liabilities | | | | | | | | | | |
| | | | | | | | | | |
Total consolidated liabilities in statement of financial position | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
1) In the first quarter of 2021, the Group discontinued its reporting of the Gas Carriers segment and the two LPG/Ethylene carriers were
included in the Chemical Tankers segment in our reporting. Both LPG/Ethylene carriers are now sold, and the Group is no longer involved in
the Gas Carrier segment.
Gross revenue and assets per geographical area (according to the equity method)
Shipping revenue is allocated on the basis of the area in which the cargo is loaded. Total assets are allocated to
the area where the respective assets are located while ships and new building contracts are not allocated to a
certain area as the ships sail on a worldwide basis.
| | | | | | | |
| | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Investment in associates and joint ventures | | | | | | | |
Unallocated ships and newbuilding contracts | | | | | | | |
| | | | | | | |
Disaggregation of revenue (according to the equity method)
The Group's gross revenue (Chemical Tankers segment only) has been disaggregated and presented in the
tables below:
| | |
| | |
| | |
Revenue from contract with customers | | |
| | |
| | |
| | |
Revenue from contract with customers disaggregated by type of contract: | | |
Charter of Affreightment contracts | | |
| | |
Revenue from contract with customers | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-421": {
"value": "
OPERATING SEGMENT DATA (according to the proportionate consolidation method):
| | | | | | | | | | |
| | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Other operating income / expenses | | | | | | | | | | |
Operating result before depreciation (EBITDA) | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Capital gain/loss on fixed assets/sale of business | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Non-current interest-bearing debt | | | | | | | | | | |
Non-current debt, right-of-use assets | | | | | | | | | | |
Other non-current liabilities | | | | | | | | | | |
Current interest-bearing debt | | | | | | | | | | |
Current debt, right-of-use assets | | | | | | | | | | |
Other current liabilities | | | | | | | | | | |
Total equity and liabilities | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Segment revenue from joint ventures | | | | | | | | | | |
Consolidated revenue in income statement | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Segment EBIT from\u00a0 joint ventures | | | | | | | | | | |
Share of net result from joint ventures | | | | | | | | | | |
Consolidated EBIT in income statement | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Investment in joint ventures | | | | | | | | | | |
Total consolidated assets in statement of financial position | | | | | | | | | | |
| | | | | | | | | | |
Total segment liabilities | | | | | | | | | | |
| | | | | | | | | | |
Total consolidated liabilities in statement of financial position | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
1) In the first quarter of 2021, the Group discontinued its reporting of the Gas Carriers segment and the two LPG/Ethylene carriers were
included in the Chemical Tankers segment in our reporting. Both LPG/Ethylene carriers are now sold, and the Group is no longer involved in
the Gas Carrier segment.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-422": {
"value": "
Gross revenue and assets per geographical area (according to the equity method)
Shipping revenue is allocated on the basis of the area in which the cargo is loaded. Total assets are allocated to
the area where the respective assets are located while ships and new building contracts are not allocated to a
certain area as the ships sail on a worldwide basis.
| | | | | | | |
| | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Investment in associates and joint ventures | | | | | | | |
Unallocated ships and newbuilding contracts | | | | | | | |
| | | | | | | |
Disaggregation of revenue (according to the equity method)
The Group's gross revenue (Chemical Tankers segment only) has been disaggregated and presented in the
tables below:
| | |
| | |
| | |
Revenue from contract with customers | | |
| | |
| | |
| | |
Revenue from contract with customers disaggregated by type of contract: | | |
Charter of Affreightment contracts | | |
| | |
Revenue from contract with customers | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-423": {
"value": "
Note 5 Financial Risk Management
Financial risk management is carried out by the Group's treasury function. The Group has an active approach to
managing financial risk, through systematic monitoring and management of risks related to currencies, interest
rates, emission allowances and bunkers. Financial derivatives are used to reduce unwanted fluctuations in net
result and cash flows caused by movements in currencies, interest rates and bunkers to which the Group is
exposed to. Similarly, financial derivatives may be used to lock-in a target return on an investment, financing,
project or contract. This may also limit the Group's upside potential from favorable movements in the same
financial risks.
Derivatives may not be used for speculative arbitrage or investment purposes, and may not be leveraged.
Financial hedging instruments used are presented in note 6.
The table below shows sensitivities to the Group\u2019s net result before taxes, before and after financial derivatives
and bunkers adjustment clauses (BAC), due to changes in major cost components on an annual basis. The
Group applies hedge accounting for bunkers, interest rates and currency.
Sensitivity analysis as per December 31, 2022:
| | | | | |
| Net result effect before hedges and BACs | Effect of hedges and BACs | Net result effect after hedges and BACs | Impact on fair value of derivatives included in other comprehensive income | Net impact on equity including OCI 2) |
Bunkers, USD 50 per tonne increase1) | | | | | |
Interest rates, 1% increase | | | | | |
Currency, USD 10% decrease vs NOK | | | | | |
Sensitivity analysis as per December 31, 2021:
| | | | | |
| Net result effect before hedges and BACs | Effect of hedges and BACs | Net result effect after hedges and BACs | Impact on fair value of derivatives included in other comprehensive income | Net impact on equity including OCI 2) |
Bunkers, USD 50 per tonne increase1) | | | | | |
Interest rates, 1% increase | | | | | |
Currency, USD 10% decrease vs NOK | | | | | |
1)VLSFO equivalent
2)Sum of net result effect after hedges and BACs and impact on derivatives in the statement of financial position
Credit risk
Credit risk includes the risk that a counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities, including deposits with banks and financial
institutions, foreign exchange transactions and other financial instruments.
Customer credit risk is managed by assessing the credit quality of all customers. Outstanding customer
receivables and contract balances are regularly monitored, and an impairment analysis is performed at each
reporting date on outstanding trade receivables and demurrage claims. The Group considers the concentration
of risk with respect to trade receivables as low.
Credit risk from balances with banks and financial institutions is managed by the Group\u2019s treasury function in
accordance with the Group\u2019s policy for financial risk management, deposits and placements. The Group
maintains a low risk profile in its placement of surplus funds, and considers the concentration of risk with respect
to financial derivatives and placements as low.
Maximum credit risk exposure is the carrying amount of derivatives and financial assets at amortized cost. See
note 6 for details.
Liquidity risk
The Group' strategy is to ensure sufficient liquidity is available at all times to withstand prolonged adverse
conditions in the markets where we operate. Surplus liquidity is placed in deposits, money market funds or
bonds with a high credit rating. The Group also has revolving credit facilities with undrawn commitments of USD
68 million as of December 31, 2022 (USD 36 million in 2021).
Total nominal interest-bearing debt (excluding IFRS 16 leases) as of December 31, 2022 was USD 998 million,
while cash and cash equivalents amounted to USD 118 million, both figures excludes joint venture companies
not consolidated in the Group's accounts. The equity ratio was 34.7% compared to 26.5% per December 31,
2021. In 2022, we completed four refinancing transactions, involving 13 vessels, and we repaid a maturing bond.
See note 8 for information about interest-bearing debt maturities.
Currency risk
Currency risk relates mainly to the net result and cash flow from voyage related expenses, ship operating
expenses, general and administrative expenses and financial expenses denominated in non-USD currencies,
mainly NOK and EUR. As of December 31, 2022, approximately 60% of the estimated recurring NOK exposure
and approximately 40% of the estimated recurring EUR exposure in FY2023 are covered by forwards. For
further information on currency exposure, see notes 6 and 23.
Bunkers risk
Bunkers is the single largest component of voyage related expenses, and the Group makes physical purchases
of bunkers worldwide. A substantial part of the Group's exposure is hedged through bunkers adjustment clauses
in contracts of affreightments. Bunkers consumption from contracts without bunkers adjustment clauses and spot
volumes are considered for financial hedges. As of December 31, 2022, Odfjell has no financial bunker hedges
in place.
Interest rate risk
The Group uses financial interest rate derivatives, mainly interest rate swaps, to reduce the variability of interest
expenses on loans that arises because of changes in the USD LIBOR. Per 31 December, 2022, interest rate
payments corresponding to USD 300 million of loans has been swapped from floating to fixed rate (USD 300
million as per December 31, 2021).
Interest rate benchmark reform
The Group\u2019s interest-bearing debt and interest rate swaps use USD LIBOR as benchmark. From June 30, 2023,
USD LIBOR will no longer be quoted, and it will be replaced by a secured overnight funding rate (SOFR) as
benchmark for USD denominated loans and derivatives. Per December 31, 2022, 44% of our interest-bearing
debt already use SOFR, as SOFR has been used as interest rate benchmark for all new loans for some time.
Some loans and leases, and all of our interest rate swaps that mature after June 30, 2023, will transition to
SOFR during the first half of 2023.
SOFR is a backward looking risk free rate that is quoted at a discount to the forward looking interbank borrowing
rate that is LIBOR. During the course of 2022, a forward looking term SOFR market started to emerge and we
are predominantly using this as benchmark in our loan agreements due to increased visibility on cash flows and
reduced administration and documentation. A credit adjustment factor is added to the interest rate calculation for
SOFR loans and swaps, such that the total interest rate will be substantially unaffected by the transition. The
benchmark reform is thus not expected to have an impact on the Group\u2019s cost of capital.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-424": {
"value": "
Credit risk
Credit risk includes the risk that a counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities, including deposits with banks and financial
institutions, foreign exchange transactions and other financial instruments.
Customer credit risk is managed by assessing the credit quality of all customers. Outstanding customer
receivables and contract balances are regularly monitored, and an impairment analysis is performed at each
reporting date on outstanding trade receivables and demurrage claims. The Group considers the concentration
of risk with respect to trade receivables as low.
Credit risk from balances with banks and financial institutions is managed by the Group\u2019s treasury function in
accordance with the Group\u2019s policy for financial risk management, deposits and placements. The Group
maintains a low risk profile in its placement of surplus funds, and considers the concentration of risk with respect
to financial derivatives and placements as low.
Maximum credit risk exposure is the carrying amount of derivatives and financial assets at amortized cost. See
note 6 for details.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-425": {
"value": "
Liquidity risk
The Group' strategy is to ensure sufficient liquidity is available at all times to withstand prolonged adverse
conditions in the markets where we operate. Surplus liquidity is placed in deposits, money market funds or
bonds with a high credit rating. The Group also has revolving credit facilities with undrawn commitments of USD
68 million as of December 31, 2022 (USD 36 million in 2021).
Total nominal interest-bearing debt (excluding IFRS 16 leases) as of December 31, 2022 was USD 998 million,
while cash and cash equivalents amounted to USD 118 million, both figures excludes joint venture companies
not consolidated in the Group's accounts. The equity ratio was 34.7% compared to 26.5% per December 31,
2021. In 2022, we completed four refinancing transactions, involving 13 vessels, and we repaid a maturing bond.
See note 8 for information about interest-bearing debt maturities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-426": {
"value": "
Currency risk
Currency risk relates mainly to the net result and cash flow from voyage related expenses, ship operating
expenses, general and administrative expenses and financial expenses denominated in non-USD currencies,
mainly NOK and EUR. As of December 31, 2022, approximately 60% of the estimated recurring NOK exposure
and approximately 40% of the estimated recurring EUR exposure in FY2023 are covered by forwards. For
further information on currency exposure, see notes 6 and 23.
Bunkers risk
Bunkers is the single largest component of voyage related expenses, and the Group makes physical purchases
of bunkers worldwide. A substantial part of the Group's exposure is hedged through bunkers adjustment clauses
in contracts of affreightments. Bunkers consumption from contracts without bunkers adjustment clauses and spot
volumes are considered for financial hedges. As of December 31, 2022, Odfjell has no financial bunker hedges
in place.
Interest rate risk
The Group uses financial interest rate derivatives, mainly interest rate swaps, to reduce the variability of interest
expenses on loans that arises because of changes in the USD LIBOR. Per 31 December, 2022, interest rate
payments corresponding to USD 300 million of loans has been swapped from floating to fixed rate (USD 300
million as per December 31, 2021).
Interest rate benchmark reform
The Group\u2019s interest-bearing debt and interest rate swaps use USD LIBOR as benchmark. From June 30, 2023,
USD LIBOR will no longer be quoted, and it will be replaced by a secured overnight funding rate (SOFR) as
benchmark for USD denominated loans and derivatives. Per December 31, 2022, 44% of our interest-bearing
debt already use SOFR, as SOFR has been used as interest rate benchmark for all new loans for some time.
Some loans and leases, and all of our interest rate swaps that mature after June 30, 2023, will transition to
SOFR during the first half of 2023.
SOFR is a backward looking risk free rate that is quoted at a discount to the forward looking interbank borrowing
rate that is LIBOR. During the course of 2022, a forward looking term SOFR market started to emerge and we
are predominantly using this as benchmark in our loan agreements due to increased visibility on cash flows and
reduced administration and documentation. A credit adjustment factor is added to the interest rate calculation for
SOFR loans and swaps, such that the total interest rate will be substantially unaffected by the transition. The
benchmark reform is thus not expected to have an impact on the Group\u2019s cost of capital.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-427": {
"value": "
Note 6 Financial assets and financial liabilities
Assets and liabilities are classified in the Statement of Financial position sheet as follows:
Classification of assets and liabilities as at December 31, 2022:
| | | | | | | |
| Other current financial assets through profit and loss | Derivative s held as hedge instrumen t\u00a0 1) | Derivativ es at fair value through profit and loss 1) | Financial assets at amortized cost | Financial liabilities at amortized cost | Non- financial assets/ liabilities | |
| | | | | | | |
Cash and cash equivalents | | | | | | | |
Other current financial assets | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
| | | | | | | |
Loan to associates and joint ventures | | | | | | | |
Other non-financial assets | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other current liabilities | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
Other non-current liabilities | | | | | | | |
Other non-financial liabilities | | | | | | | |
| | | | | | | |
1) Items measured at fair value.
Classification of assets and liabilities as at December 31, 2021:
| | | | | | | |
| Other current financial assets through profit and loss | Derivatives held as hedge instrument\u00a0 1) | Derivatives at fair value through profit and loss 1) | Financial assets at amortized cost | Financial liabilities at amortized cost | Non- financial assets/ liabilities | |
| | | | | | | |
Cash and cash equivalents | | | | | | | |
Other current financial assets | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
| | | | | | | |
Other non-financial assets | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other current liabilities | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
Other non-current liabilities | | | | | | | |
Other non-financial liabilities | | | | | | | |
| | | | | | | |
1) Items measured at fair value.
Fair value of financial instruments
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurement. The measurement used by Odfjell is either level 1 or 2, where level 1 is
quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity access at the
measurement date, and level 2 is input other than quoted prices that are observable for the asset or liability,
either directly or indirectly. For derivatives classified as level 2, fair value is calculated by using observable
forward curves. For interest rate swaps, fair value is determined by the expected cash flows for the floating rate
leg using the forward interest rate curve at the balance sheet date, less fixed rate payments. Currencies and
commodities are determined based on the current forward rate compared to contractual rates for the same time
period. For some non-derivative financial assets and liabilities we consider carrying amount to be the best
estimate of fair value due to short maturity date and valid terms, i.e. interest-bearing debt except bond loans,
current receivables and payables.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Derivative
financial instruments are recognized in the balance sheet at the fair value at the balance sheet date. For cash
and cash equivalents and current liabilities the carrying amount is considered to be a reasonable estimate of fair
value of these instruments due to the short maturity date. Receivables are measured at nominal value reduced
by any impairment. Carrying amount is considered to be a reasonable estimate of fair value due to short maturity
date and valid terms. Fair value of bonds is calculated based on quoted market prices.
The Group's bond debt ODF10 and ODF11, swapped to USD 213 million, had a market value of USD 189 million
per December 31, 2022 compared to carrying amount of USD 184 million. Correspondingly market value was
USD 213 million as per December 31, 2021 compared to carrying amount of USD 207 million. The NOK 331
million bond that matured in June 2022, ODF09 swapped to USD 39 million, had a market value of USD 38
million compared to carrying amount USD 37 million as per December 31, 2021.\u00a0
| | | | | |
| | | |
| | | | | |
Recurring fair value measurement | | | | | |
Financial assets at fair value: | | | | | |
Derivatives instruments - hedging | | | | | |
Other current financial assets | | | | | |
Financial liabilities at fair value: | | | | | |
| | | | | |
Derivatives instruments - non hedging | | | | | |
Derivatives instruments - hedging | | | | | |
Other current financial assets
In 2021, the Group received shares in BW Epic Kosan Ltd as part of the settlement for the sale of vessels Bow
Gallant and Bow Guardian, for a total nominal value of USD 15.8 million. The shares are listed on Euronext
Growth exchange and subsequent changes in fair value will be booked through profit or loss according to the
published price quotation at the balance sheet date. As per December 31, 2022, the book value of the shares
was USD 12.9 million.
Cash flow hedging
The Group's currency, interest and bunkers exposure is long-term, visible and relatively stable. Derivatives used
to hedge these expenses is usually classified as cash flow hedges and accounted for at fair value. Changes in
fair value prior to maturity is accounted for under assets or liabilities and other comprehensive income. At
maturity, the result of the hedging transactions is accounted for in the account to the underlying exposure e.g.
voyage-, operating-, general and administrative-, or financial expenses.
Currency
Future expenses in the major non-USD currencies are estimated based on actual periodic expenses, adjusted
for anticipated changes. Expected cash flows are hedged in accordance with the Group's guidelines, primarily by
the use of forward exchange contracts for a period of up to two years.
Significant non-recurring exposures relating to e.g. dividends, investments or sales, can be hedged as the
obligation is fixed and definite, but would typically not qualify for hedge accounting and thus be classified as non-
hedging.
Bunkers
A substantial part of the Group's bunkers exposure is covered through bunkers adjustment clauses in contracts
of affreightments. Bunkers consumption from contracts without bunkers adjustment clauses and spot volumes
are considered for financial hedges using forward purchase contracts and options for a period of up to two years.
Bunkers adjustment clauses in new contracts for larger volumes or longer contract periods can be tightened in
the financial markets on a case-by-case basis.
Interest rates
The Group uses financial interest rate derivatives, mainly interest rate swaps for a period of up to ten years, to
reduce the variability of interest expenses that arises because of changes in the USD LIBOR or SOFR on
mortgaged loans, other financial liabilities and unsecured bonds.
Fair value hedging
From time to time, the Group will issue non-USD denominated debt instruments and swap interest payments and
principal back to USD if the combined cost of the debt instrument and swap is deemed lower than issuing the
same in USD. These cross-currency derivatives are classified as fair value hedges and measured at market
value with a corresponding offsetting change in market value of the underlying debt instrument.
Per December 31, 2022, unsecured NOK bonds of total NOK 1 825 million has been hedged to USD 213 million
(NOK 2 156 million was hedged to USD 252 million as per December 21, 2021).
Non hedging
Changes in market value prior to maturity for derivatives that do not qualify for hedge accounting, and the result
of the derivative transaction at maturity, are accounted for under Other financial items in the Group's net result.
The below overview reflects status of hedging and non-hedging exposure December 31, 2022 (figures in
1 000):
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | Time to maturity \u2013 USD amounts |
Cross currency interest rate swaps | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
1) Mark to market valuation
2) Related to NOK bonds issued by Odfjell SE
The below overview reflects status of hedging and non-hedging exposure December 31, 2021 (figures in
1 000):
| | | | | | | | | | |
| | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | Time to maturity \u2013 USD amounts |
Cross currency interest rate swaps | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
1) Mark to market valuation
2) Related to NOK bonds issued by Odfjell SE
Negative value MTM of the cross currency swaps related to the two outstanding bond loans swapped to a total
of USD 213 million (USD 252 million in 2021), amounts to USD 30.9 million per December 31, 2022 (USD 10.8
million in 2021). Accumulated currency gain booked related to the same bond loans per December 31, 2022
amounts to USD 8.0 million (USD 11.3 million in 2021).
Derivative financial instruments recognized as assets/liabilities on the balance sheet:
| | |
| | |
| | |
Basis swaps (interest and currency) | | |
Derivative financial instruments | | |
Hedging reserve recognized in statement of other comprehensive income
The table below shows fluctuations in the hedging reserve in the statement of other comprehensive income from
cash flow hedges (see Statement of other comprehensive income) divided between the different types of
hedging contracts:
| | | | |
| | Currency exchange contracts | | |
Balance sheet as at Balance sheet as at January 1, 2021 | | | | |
Fluctuations during the period: | | | | |
- Gains/losses due to changes in fair value | | | | |
-Transfer to income statement | | | | |
| | | | |
Balance sheet as at Balance sheet as at December 31, 2021 | | | | |
Fluctuations during the period: | | | | |
- Gains/losses due to changes in fair value | | | | |
-Transfer to income statement | | | | |
Balance sheet as at Balance sheet as at December 31, 2022 | | | | |
Note 22 Other financial items
| | |
| | |
Financial assets and liabilities at fair value through profit or loss statement | | |
Realized gain/losses on other current financial assets | | |
Currency gains (losses) \u2013 see note 23 | | |
| | |
| | |
Total other financial items | | |
See note 6 for overview of hedging exposure, and note 23 for specification of currency gains (losses).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-428": {
"value": "
Classification of assets and liabilities as at December 31, 2022: | | | | | | | |
| Other current financial assets through profit and loss | Derivative s held as hedge instrumen t\u00a0 1) | Derivativ es at fair value through profit and loss 1) | Financial assets at amortized cost | Financial liabilities at amortized cost | Non- financial assets/ liabilities | |
| | | | | | | |
Cash and cash equivalents | | | | | | | |
Other current financial assets | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
| | | | | | | |
Loan to associates and joint ventures | | | | | | | |
Other non-financial assets | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other current liabilities | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
Other non-current liabilities | | | | | | | |
Other non-financial liabilities | | | | | | | |
| | | | | | | |
1) Items measured at fair value.
Classification of assets and liabilities as at December 31, 2021:
| | | | | | | |
| Other current financial assets through profit and loss | Derivatives held as hedge instrument\u00a0 1) | Derivatives at fair value through profit and loss 1) | Financial assets at amortized cost | Financial liabilities at amortized cost | Non- financial assets/ liabilities | |
| | | | | | | |
Cash and cash equivalents | | | | | | | |
Other current financial assets | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
| | | | | | | |
Other non-financial assets | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other current liabilities | | | | | | | |
Derivative financial instruments | | | | | | | |
| | | | | | | |
Other non-current liabilities | | | | | | | |
Other non-financial liabilities | | | | | | | |
| | | | | | | |
1) Items measured at fair value.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-429": {
"value": "
Fair value of financial instruments
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurement. The measurement used by Odfjell is either level 1 or 2, where level 1 is
quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity access at the
measurement date, and level 2 is input other than quoted prices that are observable for the asset or liability,
either directly or indirectly. For derivatives classified as level 2, fair value is calculated by using observable
forward curves. For interest rate swaps, fair value is determined by the expected cash flows for the floating rate
leg using the forward interest rate curve at the balance sheet date, less fixed rate payments. Currencies and
commodities are determined based on the current forward rate compared to contractual rates for the same time
period. For some non-derivative financial assets and liabilities we consider carrying amount to be the best
estimate of fair value due to short maturity date and valid terms, i.e. interest-bearing debt except bond loans,
current receivables and payables.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Derivative
financial instruments are recognized in the balance sheet at the fair value at the balance sheet date. For cash
and cash equivalents and current liabilities the carrying amount is considered to be a reasonable estimate of fair
value of these instruments due to the short maturity date. Receivables are measured at nominal value reduced
by any impairment. Carrying amount is considered to be a reasonable estimate of fair value due to short maturity
date and valid terms. Fair value of bonds is calculated based on quoted market prices.
The Group's bond debt ODF10 and ODF11, swapped to USD 213 million, had a market value of USD 189 million
per December 31, 2022 compared to carrying amount of USD 184 million. Correspondingly market value was
USD 213 million as per December 31, 2021 compared to carrying amount of USD 207 million. The NOK 331
million bond that matured in June 2022, ODF09 swapped to USD 39 million, had a market value of USD 38
million compared to carrying amount USD 37 million as per December 31, 2021.\u00a0
| | | | | |
| | | |
| | | | | |
Recurring fair value measurement | | | | | |
Financial assets at fair value: | | | | | |
Derivatives instruments - hedging | | | | | |
Other current financial assets | | | | | |
Financial liabilities at fair value: | | | | | |
| | | | | |
Derivatives instruments - non hedging | | | | | |
Derivatives instruments - hedging | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-430": {
"value": "
Fair value of financial instruments
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurement. The measurement used by Odfjell is either level 1 or 2, where level 1 is
quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity access at the
measurement date, and level 2 is input other than quoted prices that are observable for the asset or liability,
either directly or indirectly. For derivatives classified as level 2, fair value is calculated by using observable
forward curves. For interest rate swaps, fair value is determined by the expected cash flows for the floating rate
leg using the forward interest rate curve at the balance sheet date, less fixed rate payments. Currencies and
commodities are determined based on the current forward rate compared to contractual rates for the same time
period. For some non-derivative financial assets and liabilities we consider carrying amount to be the best
estimate of fair value due to short maturity date and valid terms, i.e. interest-bearing debt except bond loans,
current receivables and payables.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Derivative
financial instruments are recognized in the balance sheet at the fair value at the balance sheet date. For cash
and cash equivalents and current liabilities the carrying amount is considered to be a reasonable estimate of fair
value of these instruments due to the short maturity date. Receivables are measured at nominal value reduced
by any impairment. Carrying amount is considered to be a reasonable estimate of fair value due to short maturity
date and valid terms. Fair value of bonds is calculated based on quoted market prices.
The Group's bond debt ODF10 and ODF11, swapped to USD 213 million, had a market value of USD 189 million
per December 31, 2022 compared to carrying amount of USD 184 million. Correspondingly market value was
USD 213 million as per December 31, 2021 compared to carrying amount of USD 207 million. The NOK 331
million bond that matured in June 2022, ODF09 swapped to USD 39 million, had a market value of USD 38
million compared to carrying amount USD 37 million as per December 31, 2021.\u00a0
| | | | | |
| | | |
| | | | | |
Recurring fair value measurement | | | | | |
Financial assets at fair value: | | | | | |
Derivatives instruments - hedging | | | | | |
Other current financial assets | | | | | |
Financial liabilities at fair value: | | | | | |
| | | | | |
Derivatives instruments - non hedging | | | | | |
Derivatives instruments - hedging | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-431": {
"value": "
Fair value of financial instruments
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurement. The measurement used by Odfjell is either level 1 or 2, where level 1 is
quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity access at the
measurement date, and level 2 is input other than quoted prices that are observable for the asset or liability,
either directly or indirectly. For derivatives classified as level 2, fair value is calculated by using observable
forward curves. For interest rate swaps, fair value is determined by the expected cash flows for the floating rate
leg using the forward interest rate curve at the balance sheet date, less fixed rate payments. Currencies and
commodities are determined based on the current forward rate compared to contractual rates for the same time
period. For some non-derivative financial assets and liabilities we consider carrying amount to be the best
estimate of fair value due to short maturity date and valid terms, i.e. interest-bearing debt except bond loans,
current receivables and payables.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Derivative
financial instruments are recognized in the balance sheet at the fair value at the balance sheet date. For cash
and cash equivalents and current liabilities the carrying amount is considered to be a reasonable estimate of fair
value of these instruments due to the short maturity date. Receivables are measured at nominal value reduced
by any impairment. Carrying amount is considered to be a reasonable estimate of fair value due to short maturity
date and valid terms. Fair value of bonds is calculated based on quoted market prices.
The Group's bond debt ODF10 and ODF11, swapped to USD 213 million, had a market value of USD 189 million
per December 31, 2022 compared to carrying amount of USD 184 million. Correspondingly market value was
USD 213 million as per December 31, 2021 compared to carrying amount of USD 207 million. The NOK 331
million bond that matured in June 2022, ODF09 swapped to USD 39 million, had a market value of USD 38
million compared to carrying amount USD 37 million as per December 31, 2021.\u00a0
| | | | | |
| | | |
| | | | | |
Recurring fair value measurement | | | | | |
Financial assets at fair value: | | | | | |
Derivatives instruments - hedging | | | | | |
Other current financial assets | | | | | |
Financial liabilities at fair value: | | | | | |
| | | | | |
Derivatives instruments - non hedging | | | | | |
Derivatives instruments - hedging | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-432": {
"value": "
Other current financial assets
In 2021, the Group received shares in BW Epic Kosan Ltd as part of the settlement for the sale of vessels Bow
Gallant and Bow Guardian, for a total nominal value of USD 15.8 million. The shares are listed on Euronext
Growth exchange and subsequent changes in fair value will be booked through profit or loss according to the
published price quotation at the balance sheet date. As per December 31, 2022, the book value of the shares
was USD 12.9 million.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-433": {
"value": "
Cash flow hedging
The Group's currency, interest and bunkers exposure is long-term, visible and relatively stable. Derivatives used
to hedge these expenses is usually classified as cash flow hedges and accounted for at fair value. Changes in
fair value prior to maturity is accounted for under assets or liabilities and other comprehensive income. At
maturity, the result of the hedging transactions is accounted for in the account to the underlying exposure e.g.
voyage-, operating-, general and administrative-, or financial expenses.
Currency
Future expenses in the major non-USD currencies are estimated based on actual periodic expenses, adjusted
for anticipated changes. Expected cash flows are hedged in accordance with the Group's guidelines, primarily by
the use of forward exchange contracts for a period of up to two years.
Significant non-recurring exposures relating to e.g. dividends, investments or sales, can be hedged as the
obligation is fixed and definite, but would typically not qualify for hedge accounting and thus be classified as non-
hedging.
Bunkers
A substantial part of the Group's bunkers exposure is covered through bunkers adjustment clauses in contracts
of affreightments. Bunkers consumption from contracts without bunkers adjustment clauses and spot volumes
are considered for financial hedges using forward purchase contracts and options for a period of up to two years.
Bunkers adjustment clauses in new contracts for larger volumes or longer contract periods can be tightened in
the financial markets on a case-by-case basis.
Interest rates
The Group uses financial interest rate derivatives, mainly interest rate swaps for a period of up to ten years, to
reduce the variability of interest expenses that arises because of changes in the USD LIBOR or SOFR on
mortgaged loans, other financial liabilities and unsecured bonds.
Fair value hedging
From time to time, the Group will issue non-USD denominated debt instruments and swap interest payments and
principal back to USD if the combined cost of the debt instrument and swap is deemed lower than issuing the
same in USD. These cross-currency derivatives are classified as fair value hedges and measured at market
value with a corresponding offsetting change in market value of the underlying debt instrument.
Per December 31, 2022, unsecured NOK bonds of total NOK 1 825 million has been hedged to USD 213 million
(NOK 2 156 million was hedged to USD 252 million as per December 21, 2021).
Non hedging
Changes in market value prior to maturity for derivatives that do not qualify for hedge accounting, and the result
of the derivative transaction at maturity, are accounted for under Other financial items in the Group's net result.
The below overview reflects status of hedging and non-hedging exposure December 31, 2022 (figures in
1 000):
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | Time to maturity \u2013 USD amounts |
Cross currency interest rate swaps | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
1) Mark to market valuation
2) Related to NOK bonds issued by Odfjell SE
The below overview reflects status of hedging and non-hedging exposure December 31, 2021 (figures in
1 000):
| | | | | | | | | | |
| | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | Time to maturity \u2013 USD amounts |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | Time to maturity \u2013 USD amounts |
Cross currency interest rate swaps | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
1) Mark to market valuation
2) Related to NOK bonds issued by Odfjell SE
Negative value MTM of the cross currency swaps related to the two outstanding bond loans swapped to a total
of USD 213 million (USD 252 million in 2021), amounts to USD 30.9 million per December 31, 2022 (USD 10.8
million in 2021). Accumulated currency gain booked related to the same bond loans per December 31, 2022
amounts to USD 8.0 million (USD 11.3 million in 2021).
Derivative financial instruments recognized as assets/liabilities on the balance sheet:
| | |
| | |
| | |
Basis swaps (interest and currency) | | |
Derivative financial instruments | | |
Hedging reserve recognized in statement of other comprehensive income
The table below shows fluctuations in the hedging reserve in the statement of other comprehensive income from
cash flow hedges (see Statement of other comprehensive income) divided between the different types of
hedging contracts:
| | | | |
| | Currency exchange contracts | | |
Balance sheet as at Balance sheet as at January 1, 2021 | | | | |
Fluctuations during the period: | | | | |
- Gains/losses due to changes in fair value | | | | |
-Transfer to income statement | | | | |
| | | | |
Balance sheet as at Balance sheet as at December 31, 2021 | | | | |
Fluctuations during the period: | | | | |
- Gains/losses due to changes in fair value | | | | |
-Transfer to income statement | | | | |
Balance sheet as at Balance sheet as at December 31, 2022 | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-434": {
"value": "
Note 7 Capital management
The main objective of the Group\u2019s capital management policy is to maintain healthy capital ratios and ensure
sufficient availability of liquidity to support the general business and take advantage of investment opportunities.
Another objective is to ensure the Group has a robust capital structure that is able to withstand prolonged
adverse conditions in significant risk factors, such as long-term down-cycles in our markets and unfavorable
conditions in the financial markets.
The Group manages the capital structure and makes adjustments to maintain a structure adapted to current
economic conditions. In order to maintain or adjust the capital structure, the Company may adjust the dividend
policy, buy treasury shares, redeem shares or issue new shares.
The Group monitors its capital using the book equity ratio and available liquidity, being the sum of cash and cash
equivalents and available drawing facilities, as the primary measurements. The Group\u2019s policy is to maintain an
equity ratio between 30% and 40% and available liquidity of USD 150 - 200 million throughout market cycles.
| | |
| | |
| | |
| | |
| | |
Equity ratio (equity method) | | |
| | |
| | |
Cash and cash equivalents | | |
| | |
Total available liquidity | | |
For liquidity risk see note 5.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-435": {
"value": "
Note 8 Total debt
Total debt includes interest-bearing debt and Debt related to right-of-use of assets. interest-bearing debt includes
mortgage loans from financial institutions, financial lease obligations classified as Other financial liabilities, and
unsecured bonds denominated in the issuing currency. Interest rates are generally floating rate. Debts related to
Rights of use of assets are fixed rate.
| | | |
| Interest rate year end 1) | | |
Mortgaged loans from finance institutions | | | |
Other financial liabilities 2) | | | |
| | | |
Lease liabilities, right-of-use assets | | | |
| | | |
| | | |
| | | |
Current portion, interest-bearing debt | | | |
Current portion, right-of-use assets | | | |
| | | |
1)Interest rate is the weighted average of interest rates (margin plus benchmark), excluding hedges, as per end of 2022
2)Includes debt related to sale-leaseback transactions
3)Amortized and included in interest expense
Mortgaged loans from finance institutions include debt from 12 different facilities backed by 11 different lenders
and covers 29 vessels with an average age of 14.5 years. Five of the facilities are sustainability-linked whereby
the margin is linked to the AER performance of the Group, as measured annually, and the Group's continuous
and overall plan to meet our 2030 ambitions. Financial leases, classified as Other financial liabilities are made up
from 11 different facilities from 9 different lease providers and covers 14 vessels with an average age of 13.7
years. Unsecured bonds include two senior unsecured Norwegian bond issues, denominated in NOK and
swapped to USD. One of the bonds is classified as sustainability-linked, whereby the redemption price of the
bond is linked to the AER performance of the Group, measured on June 30, 2024, and the Group's continuous
and overall plan to meet our 2030 ambitions.
During 2022, the Group refinanced four loan facilities covering 13 vessels. We also repaid an unsecured bond
and three loan facilities, and made extraordinary prepayments on our revolving credit facilities. New mortgaged
loans from financial institutions totaled USD 249 million, and the related balloon installments totaled USD 218
million. The bond that was repaid, ODF09 maturing in June 2022, had a total outstanding nominal amount of
NOK 331 million and a swapped amount of USD 39 million. The three loan facilities that were fully repaid totaled
USD 34 million and covered four vessels of which three were sold to external parties. Extraordinary prepayments
on revolving credit facilities totaled USD 40 million.
Net repayment on loans and leases totaled USD 82 million in 2022. In addition, scheduled installments on loans
and leases totaled USD 80 million, bringing the total reduction in nominal debt to USD 162 million for the year.
Lease liabilities related to IFRS16 right-of-use assets is mainly related to 17 time charter- and bareboat
agreements with tenors longer than 12 months from delivery. Total debt related to right-of-use of vessels per
December 31, 2022 was USD 215 million. Lease obligations from long-term office rental agreements totaled
USD 5 million. During 2022, debts related to right-of-use assets decreased with total USD 13 million. Lease
installments totaled USD 63 million, while new and extended agreements totaled USD 50 million.
Transaction expenses from financing transactions are charged to net result over the life of the underlying debt
facility using the effective interest rate method, or in full at repayment if repaid ahead of maturity. During 2022,
transaction expenses charged to the net result totaled USD 6.2 million (USD 3.7 million in 2021). The increase is
linked to the early refinancing of loan- and lease facilities in 2022.
Summary of changes in total debt during 2022:
| | | | | | | | |
Changes in liabilities arising from financing activities (USD 1 000) | | | | Foreign exchang e moveme nts | | | | |
| | | | | | | | |
Current interest- bearing loans and borrowings | | | | | | | | |
Current lease liabilities, right-of-use assets | | | | | | | | |
Non-current interest- bearing loans and borrowing | | | | | | | | |
Non-current lease liabilities, right-of-use assets | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total liabilities from financing activities | | | | | | | | |
Loans from associates and joint ventures classified as other current liabilities (see note 25) | | | | | | | | |
| | | | | | | | |
1) 1) Other includes movements between non-current and current liabilities due to the passage of time, approval of dividends, and effects of acquistions of a subsidiary formerly recognized as a joint venture. |
across all debt agreements. The Group shall at all times maintain free liquid assets of the minimum the higher of
USD 50 million and 6% of interest-bearing debt (excluding debts related to rights of use of assets). The Group's
leverage shall not at any time exceed 75% (excluding right-of-use assets and debts related to rights of use
assets).
The Group was in compliance with its financial covenants throughout 2022 and 2021.
Maturity of total debt as at December 31, 2022:
| | | | | | | |
| | | | | | | |
Mortgaged loans from financial institutions | | | | | | | |
Other financial liabilities | | | | | | | |
| | | | | | | |
Lease liabilities, right-of-use assets | | | | | | | |
| | | | | | | |
Estimated interest payable | | | | | | | |
| | | | | | | |
1)Values excluding hedging effects from interest and currency swaps which is recognized as derivative financial instruments in the
statement of financial position
Maturity of total debt as at December 31, 2021:
| | | | | | | |
| | | | | | | |
Mortgaged loans from financial institutions | | | | | | | |
Other financial liabilities | | | | | | | |
| | | | | | | |
Lease liabilities, right-of-use assets | | | | | | | |
| | | | | | | |
Estimated interest payable | | | | | | | |
| | | | | | | |
1)Values excluding hedging effects from interest and currency swaps which is recognized as derivative financial instruments in the
statement of financial position
The average maturity of the Group\u2019s total interest-bearing debt is 4.4 years (5.1 years in 2021). Average maturity
on mortgaged loans from financial institutions is 3.2 years (2.6 years in 2021), other financial liabilities mature on
average in 7.6 years (8.3 years in 2021) and unsecured bonds mature on average in 1.3 years (2.1 years in
2021).
Security for mortgaged loans from financial institutions is made through first priority vessel mortgage, Group
guarantees, and assignments of earnings and insurances covering the relevant vessels. Other financial liabilities
(financial leases) are secured by Group guarantees and assignment of earnings and insurances covering the
relevant vessels. Debts related to rights of use of assets are generally unsecured.
The table below provides an overview of the carrying amount of vessel financing and related assets:
| | |
| | |
Mortgaged loans from financial institutions | | |
Other financial liabilities | | |
Lease liabilities, right-of-use assets | | |
Nominal amount preferred vessel financing | | |
| | |
Carrying amount, assets under mortgaged loans | | |
Carrying amount, assets under other financial liabilities | | |
Carrying amount, right-of-use assets | | |
Total carrying amount of assets financed | | |
The Group's financial leases, presented under 'Other financial liabilities' above, vary from 5 to 14 years from
inception. In addition to the payment of hire, the Group has obligations relating to the insurance and
maintenance of the relevant vessels, similar to owning the vessels. Based on the terms of the agreement, they
are considered financial arrangements in accordance with IFRS 9. All financial leases have embedded purchase
options to the Group.
The table below summarizes total debt by currency:
1) Unsecured bonds, nominal amounts. Swapped to USD 213 million (USD 252 million in 2021)
Interest expenses on total debt:
| | |
| | |
Interest expense, interest-bearing debt | | |
Interest expense, right-of-use assets | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-436": {
"value": "
Note 8 Total debt
Total debt includes interest-bearing debt and Debt related to right-of-use of assets. interest-bearing debt includes
mortgage loans from financial institutions, financial lease obligations classified as Other financial liabilities, and
unsecured bonds denominated in the issuing currency. Interest rates are generally floating rate. Debts related to
Rights of use of assets are fixed rate.
| | | |
| Interest rate year end 1) | | |
Mortgaged loans from finance institutions | | | |
Other financial liabilities 2) | | | |
| | | |
Lease liabilities, right-of-use assets | | | |
| | | |
| | | |
| | | |
Current portion, interest-bearing debt | | | |
Current portion, right-of-use assets | | | |
| | | |
1)Interest rate is the weighted average of interest rates (margin plus benchmark), excluding hedges, as per end of 2022
2)Includes debt related to sale-leaseback transactions
3)Amortized and included in interest expense
Mortgaged loans from finance institutions include debt from 12 different facilities backed by 11 different lenders
and covers 29 vessels with an average age of 14.5 years. Five of the facilities are sustainability-linked whereby
the margin is linked to the AER performance of the Group, as measured annually, and the Group's continuous
and overall plan to meet our 2030 ambitions. Financial leases, classified as Other financial liabilities are made up
from 11 different facilities from 9 different lease providers and covers 14 vessels with an average age of 13.7
years. Unsecured bonds include two senior unsecured Norwegian bond issues, denominated in NOK and
swapped to USD. One of the bonds is classified as sustainability-linked, whereby the redemption price of the
bond is linked to the AER performance of the Group, measured on June 30, 2024, and the Group's continuous
and overall plan to meet our 2030 ambitions.
During 2022, the Group refinanced four loan facilities covering 13 vessels. We also repaid an unsecured bond
and three loan facilities, and made extraordinary prepayments on our revolving credit facilities. New mortgaged
loans from financial institutions totaled USD 249 million, and the related balloon installments totaled USD 218
million. The bond that was repaid, ODF09 maturing in June 2022, had a total outstanding nominal amount of
NOK 331 million and a swapped amount of USD 39 million. The three loan facilities that were fully repaid totaled
USD 34 million and covered four vessels of which three were sold to external parties. Extraordinary prepayments
on revolving credit facilities totaled USD 40 million.
Net repayment on loans and leases totaled USD 82 million in 2022. In addition, scheduled installments on loans
and leases totaled USD 80 million, bringing the total reduction in nominal debt to USD 162 million for the year.
Lease liabilities related to IFRS16 right-of-use assets is mainly related to 17 time charter- and bareboat
agreements with tenors longer than 12 months from delivery. Total debt related to right-of-use of vessels per
December 31, 2022 was USD 215 million. Lease obligations from long-term office rental agreements totaled
USD 5 million. During 2022, debts related to right-of-use assets decreased with total USD 13 million. Lease
installments totaled USD 63 million, while new and extended agreements totaled USD 50 million.
Transaction expenses from financing transactions are charged to net result over the life of the underlying debt
facility using the effective interest rate method, or in full at repayment if repaid ahead of maturity. During 2022,
transaction expenses charged to the net result totaled USD 6.2 million (USD 3.7 million in 2021). The increase is
linked to the early refinancing of loan- and lease facilities in 2022.
Summary of changes in total debt during 2022:
| | | | | | | | |
Changes in liabilities arising from financing activities (USD 1 000) | | | | Foreign exchang e moveme nts | | | | |
| | | | | | | | |
Current interest- bearing loans and borrowings | | | | | | | | |
Current lease liabilities, right-of-use assets | | | | | | | | |
Non-current interest- bearing loans and borrowing | | | | | | | | |
Non-current lease liabilities, right-of-use assets | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total liabilities from financing activities | | | | | | | | |
Loans from associates and joint ventures classified as other current liabilities (see note 25) | | | | | | | | |
| | | | | | | | |
1) 1) Other includes movements between non-current and current liabilities due to the passage of time, approval of dividends, and effects of acquistions of a subsidiary formerly recognized as a joint venture. |
across all debt agreements. The Group shall at all times maintain free liquid assets of the minimum the higher of
USD 50 million and 6% of interest-bearing debt (excluding debts related to rights of use of assets). The Group's
leverage shall not at any time exceed 75% (excluding right-of-use assets and debts related to rights of use
assets).
The Group was in compliance with its financial covenants throughout 2022 and 2021.
Maturity of total debt as at December 31, 2022:
| | | | | | | |
| | | | | | | |
Mortgaged loans from financial institutions | | | | | | | |
Other financial liabilities | | | | | | | |
| | | | | | | |
Lease liabilities, right-of-use assets | | | | | | | |
| | | | | | | |
Estimated interest payable | | | | | | | |
| | | | | | | |
1)Values excluding hedging effects from interest and currency swaps which is recognized as derivative financial instruments in the
statement of financial position
Maturity of total debt as at December 31, 2021:
| | | | | | | |
| | | | | | | |
Mortgaged loans from financial institutions | | | | | | | |
Other financial liabilities | | | | | | | |
| | | | | | | |
Lease liabilities, right-of-use assets | | | | | | | |
| | | | | | | |
Estimated interest payable | | | | | | | |
| | | | | | | |
1)Values excluding hedging effects from interest and currency swaps which is recognized as derivative financial instruments in the
statement of financial position
The average maturity of the Group\u2019s total interest-bearing debt is 4.4 years (5.1 years in 2021). Average maturity
on mortgaged loans from financial institutions is 3.2 years (2.6 years in 2021), other financial liabilities mature on
average in 7.6 years (8.3 years in 2021) and unsecured bonds mature on average in 1.3 years (2.1 years in
2021).
Security for mortgaged loans from financial institutions is made through first priority vessel mortgage, Group
guarantees, and assignments of earnings and insurances covering the relevant vessels. Other financial liabilities
(financial leases) are secured by Group guarantees and assignment of earnings and insurances covering the
relevant vessels. Debts related to rights of use of assets are generally unsecured.
The table below provides an overview of the carrying amount of vessel financing and related assets:
| | |
| | |
Mortgaged loans from financial institutions | | |
Other financial liabilities | | |
Lease liabilities, right-of-use assets | | |
Nominal amount preferred vessel financing | | |
| | |
Carrying amount, assets under mortgaged loans | | |
Carrying amount, assets under other financial liabilities | | |
Carrying amount, right-of-use assets | | |
Total carrying amount of assets financed | | |
The Group's financial leases, presented under 'Other financial liabilities' above, vary from 5 to 14 years from
inception. In addition to the payment of hire, the Group has obligations relating to the insurance and
maintenance of the relevant vessels, similar to owning the vessels. Based on the terms of the agreement, they
are considered financial arrangements in accordance with IFRS 9. All financial leases have embedded purchase
options to the Group.
The table below summarizes total debt by currency:
1) Unsecured bonds, nominal amounts. Swapped to USD 213 million (USD 252 million in 2021)
Interest expenses on total debt:
| | |
| | |
Interest expense, interest-bearing debt | | |
Interest expense, right-of-use assets | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-437": {
"value": "
Interest expenses on total debt:
| | |
| | |
Interest expense, interest-bearing debt | | |
Interest expense, right-of-use assets | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-438": {
"value": "
Note 9 Taxes
| | |
| | |
Change in deferred tax, Norway \u2013 ordinary tax | | |
Change in deferred tax, other jurisdictions | | |
Taxes payable, other jurisdictions | | |
| | |
Total tax income (expenses) | | |
| | |
| | |
| | |
Tax calculated at Odfjell\u2019s statutory income tax rate 22% | | |
| | |
Income and expenses not subject to tax | | |
Share of result from joint ventures and associates | | |
| | |
Non deductible expenses for tax purposes - impairment | | |
| | |
Deferred tax asset not recognized | | |
| | |
| | |
| | |
| | |
Specification of deferred taxes (deferred tax assets):
| | | | |
| | Change in temporary differences | | |
| | | | |
Financial instruments/finance items | | | | |
| | | | |
Long-term temporary differences | | | | |
| | | | |
Non-deductible interest carried forward | | | | |
Total negative temporary differences | | | | |
| | | | |
Differences related to depreciation of non-current assets | | | | |
Deferred gain related to sale of non-current assets | | | | |
Differences related to long-term debt | | | | |
Total positive temporary differences | | | | |
| | | | |
Net temporary differences | | | | |
Temporary differences not accounted for 1) | | | | |
Temporary differences \u2013 basis for calculation of deferred tax | | | | |
| | | | |
Deferred tax liability (asset) in statement of financial position 2) | | | | |
| | | | |
1) This applies to temporary differences for companies with losses where deferred tax assets are not recognized.
2) For 2022 and 2021 this is classified as a deferred tax asset and deferred tax liability
The Group\u2019s Norwegian companies have a total loss carried forward of USD 234 million at December 31, 2022
(USD 255 million in 2021), that is available indefinitely to offset against future taxable profits of the companies in
which the losses arose. Tax Group contributions are also available within the same country and within the same
tax regime.
Deferred tax assets are not recognized for companies where there is uncertainty regarding the future utilisation
of temporary differences.
Any distribution of dividend to Odfjell SE\u2019s shareholders does not affect the Company\u2019s payable or deferred tax.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-439": {
"value": "
Note 9 Taxes
| | |
| | |
Change in deferred tax, Norway \u2013 ordinary tax | | |
Change in deferred tax, other jurisdictions | | |
Taxes payable, other jurisdictions | | |
| | |
Total tax income (expenses) | | |
| | |
| | |
| | |
Tax calculated at Odfjell\u2019s statutory income tax rate 22% | | |
| | |
Income and expenses not subject to tax | | |
Share of result from joint ventures and associates | | |
| | |
Non deductible expenses for tax purposes - impairment | | |
| | |
Deferred tax asset not recognized | | |
| | |
| | |
| | |
| | |
Specification of deferred taxes (deferred tax assets):
| | | | |
| | Change in temporary differences | | |
| | | | |
Financial instruments/finance items | | | | |
| | | | |
Long-term temporary differences | | | | |
| | | | |
Non-deductible interest carried forward | | | | |
Total negative temporary differences | | | | |
| | | | |
Differences related to depreciation of non-current assets | | | | |
Deferred gain related to sale of non-current assets | | | | |
Differences related to long-term debt | | | | |
Total positive temporary differences | | | | |
| | | | |
Net temporary differences | | | | |
Temporary differences not accounted for 1) | | | | |
Temporary differences \u2013 basis for calculation of deferred tax | | | | |
| | | | |
Deferred tax liability (asset) in statement of financial position 2) | | | | |
| | | | |
1) This applies to temporary differences for companies with losses where deferred tax assets are not recognized.
2) For 2022 and 2021 this is classified as a deferred tax asset and deferred tax liability
The Group\u2019s Norwegian companies have a total loss carried forward of USD 234 million at December 31, 2022
(USD 255 million in 2021), that is available indefinitely to offset against future taxable profits of the companies in
which the losses arose. Tax Group contributions are also available within the same country and within the same
tax regime.
Deferred tax assets are not recognized for companies where there is uncertainty regarding the future utilisation
of temporary differences.
Any distribution of dividend to Odfjell SE\u2019s shareholders does not affect the Company\u2019s payable or deferred tax.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-440": {
"value": "
Note 9 Taxes
| | |
| | |
Change in deferred tax, Norway \u2013 ordinary tax | | |
Change in deferred tax, other jurisdictions | | |
Taxes payable, other jurisdictions | | |
| | |
Total tax income (expenses) | | |
| | |
| | |
| | |
Tax calculated at Odfjell\u2019s statutory income tax rate 22% | | |
| | |
Income and expenses not subject to tax | | |
Share of result from joint ventures and associates | | |
| | |
Non deductible expenses for tax purposes - impairment | | |
| | |
Deferred tax asset not recognized | | |
| | |
| | |
| | |
| | |
Specification of deferred taxes (deferred tax assets):
| | | | |
| | Change in temporary differences | | |
| | | | |
Financial instruments/finance items | | | | |
| | | | |
Long-term temporary differences | | | | |
| | | | |
Non-deductible interest carried forward | | | | |
Total negative temporary differences | | | | |
| | | | |
Differences related to depreciation of non-current assets | | | | |
Deferred gain related to sale of non-current assets | | | | |
Differences related to long-term debt | | | | |
Total positive temporary differences | | | | |
| | | | |
Net temporary differences | | | | |
Temporary differences not accounted for 1) | | | | |
Temporary differences \u2013 basis for calculation of deferred tax | | | | |
| | | | |
Deferred tax liability (asset) in statement of financial position 2) | | | | |
| | | | |
1) This applies to temporary differences for companies with losses where deferred tax assets are not recognized.
2) For 2022 and 2021 this is classified as a deferred tax asset and deferred tax liability
The Group\u2019s Norwegian companies have a total loss carried forward of USD 234 million at December 31, 2022
(USD 255 million in 2021), that is available indefinitely to offset against future taxable profits of the companies in
which the losses arose. Tax Group contributions are also available within the same country and within the same
tax regime.
Deferred tax assets are not recognized for companies where there is uncertainty regarding the future utilisation
of temporary differences.
Any distribution of dividend to Odfjell SE\u2019s shareholders does not affect the Company\u2019s payable or deferred tax.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-441": {
"value": "
Note 10 Pension liabilities
The Group operates different types of pension schemes for the employees.
Defined benefit plan expenses
| | |
| | |
Defined benefit plan cost - Overseas offices | | |
| | |
Defined contribution plan expenses
| | |
| | |
Defined contribution cost - Norway | | |
Defined contribution cost \u2013 overseas offices | | |
| | |
| | |
In the Norwegian companies all employees are included in a defined contribution plan. The Odfjell Group pays a
fixed percentage of the salary as contribution to the plan limited to 12 times the base amount (G). In addition,
Executive Management are entitled to additional annual contribution limited to 18G. Several of the Group foreign
subsidiaries have defined contribution plans in accordance with local legislation.
Pension liabilities
| | |
| | |
Executive Management - Norway | | |
| | |
| | |
| | |
Some of the Group\u2019s Norwegian subsidiaries are bound to have mandatory occupational pension scheme
pursuant to the Norwegian law of Occupational pension scheme. The Group's pension scheme meets the
requirements of this Act.
Other pension liabilities for employees in Norway relates to defined contribution (12G-18G) not paid, and 'other
Norway' relates to fully vested contribution for former employees.
In 2022, the additional pension contribution payment (18G) to Executive Management was secured by payment
to an insurance company instead of holding a secured bank account. Bank deposit was transferred to the
insurance company and the pension liability removed from the balance sheet. The contribution / benefit was not
changed. 'Other - Norway' in the table above relates to one former employee. For pension expenses for the
Executive Management, see note 21.
Note 21 Salary expenses, number of employees and benefits to Board of Directors and management
Salary expenses are included in ship operating expenses and general and administrative expenses according to
the activity.
| | |
| | |
| | |
| | |
Pension expenses defined benefit plans (note 10) | | |
Pension expenses defined contribution plans (note 10) | | |
| | |
| | |
Average man-years of employees including crew:
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total average man-years of employees | | |
At the end of 2022 the Board of Directors consists of six members. Compensation and benefits to the
Board of Directors:
For more specification \u2013 see Odfjell SE note 11.
Compensation and benefits to the Management Group, paid and earned in 2022:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch (until 05.05.2022) | | | | | |
CEO, Harald Fotland (COO until 05.05.2022) | | | | | |
| | | | | |
CSO, \u00d8istein H. Jensen | | | | | |
| | | | | |
MD Terminals, Adrian Lenning 2) | | | | | |
| | | | | |
| | | | | |
1) The bonus relates to earned amount in 2022 for both short and long term incentive scheme. This is a change in methodology compared to\u00a0
2021, where paid, not earned was reported.
2) Included as member in the Management Group from December 1st 2022. The compensation presented above relates to their Executive
Management Positions from December 2022.
Compensation and benefits paid to the Management Group in 2021:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch | | | | | |
| | | | | |
| | | | | |
COS, \u00d8istein H. Jensen | | | | | |
| | | | | |
1) The bonus relates to expensed amount in 2021 for both short and long term incentive scheme.
In 2022, the bonus related to the long-term incentive program, net of withholding tax, have been used to acquire
Restricted Shares in accordance with the long-term incentive program.
Only the CEO of the Executive Management has a defined agreement with regard to severance pay. In case the
Company terminates the employment, the CEO is, in addition to payment of salary and other remuneration
during the notice period, also entitled to 6 months\u2019 base salary.
Refer to our Report on Salary and other Remuneration to Leading Personnel in Odfjell SE for the financial year
2022. The Report will be published on the Company's website once approved by the General Meeting.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-442": {
"value": "
Note 11 Property, plant and equipment
| | | | | |
| | Ships and newbuilding contracts | | | |
Net carrying amount January 1, 2021 | | | | | |
| | | | | |
| | | | | |
Assets from acquistion of Odfjell Gas | | | | | |
| | | | | |
| | | | | |
Reclassified to assets held for sale (book value) | | | | | |
Net carrying amount December 31, 2021 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net carrying amount December 31, 2022 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net carrying amount January 1, 2021 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Reclassified to assets held for sale | | | | | |
Net carrying amount December 31, 2021 | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net carrying amount December 31, 2022 | | | | | |
1) Refer to note 13 for details on impairment recognized in 2021. Depreciation periods
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows
(in years):
| |
| |
| |
Periodic maintenance of ships | |
| |
Assets financed under sale-leaseback
The carrying amount of ships financed under sale-leaseback were USD 440.3 million and USD 634.2 million at
December 31, 2022 and December 31, 2021 respectively. See note 8 for future sale-leaseback obligations.
Depreciation
Starting from fiscal year 2021, the Group has elected to present depreciation expense from property, plant and
equipment and right-of-use assets as a single line item in the income statement. The amount of depreciation
expense from each item is as follows.
| | | |
| | | |
Depreciation property, plant and equipment | | | |
Depreciation right-of-use assets | | | |
| | | |
| | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-443": {
"value": "
Depreciation periods
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows
(in years):
| |
| |
| |
Periodic maintenance of ships | |
| |
Depreciation
Starting from fiscal year 2021, the Group has elected to present depreciation expense from property, plant and
equipment and right-of-use assets as a single line item in the income statement. The amount of depreciation
expense from each item is as follows.
| | | |
| | | |
Depreciation property, plant and equipment | | | |
Depreciation right-of-use assets | | | |
| | | |
| | | |
Note 12 Leases
| | | | | | | |
| | | | | | | |
Capitalized right-of-use assets January 1, 2022 | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Carrying amount right-of-use assets December 31, 2022 | | | | | | | |
| | | | | | | |
| | | | | | | |
Capitalized right-of-use assets January 1, 2021 | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Carrying amount right-of-use assets December 31, 2021 | | | | | | | |
| | | | | | | |
| | | | | | | |
Remeasurement in 2021 of USD 9.8 million was mainly due to a time charter contract cancelled prior to the originally expiry date. | | | |
| | |
| | | | | | | |
| | | | | |
Variable lease payments made in 2022 are related to pool distributions to external participants in the pools. The total amount distributed in 2022 equals USD 108.6 million, including non-lease component (USD 101.1 million in 2021). | | |
| |
| |
Information about lease payments made | | | | | |
Total nominal lease payments (including short term,\u00a0 long term and variable leases) | | | | | |
Of which short term lease expenses\u00a0 (including non- lease component) | | | | | |
| | | | | | | |
Information about commitments for commenced leases\u00a0 (not included in lease liability) | | | | | |
Lease commitments associated with short term leases (undiscounted) | | | | | |
Non-lease component (OPEX) right-of-use assets, not included in lease liability (undiscounted) | | | | | |
| | | | | | | |
| | | | | | | |
The non-lease component refers to time-charter contracts including a service element. Refer to note 2.6 for a description of the Group's accounting policies related to said contracts. | | | |
| | |
| | |
| | | | | | | |
Information about extension options | | | | |
Extension options (undiscounted) not included in lease liability, bare-boat element vessels | | | | | |
Extension options\u00a0 (undiscounted) not included in lease liability, OPEX element vessels | | | | | |
Extension options\u00a0 (undiscounted) not included in lease liability, office buildings | | | | | |
Total extension options (undiscounted) not included in lease liability | | | | | |
| | | | | | | |
Information about leases not yet commenced but where the Group is Committed | | | | |
Nominal amount of future lease payments for time charter and bare-boat leases where lease term exceeds 12 months | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Maturity of debt related to right-of-use assets as per December 31, 2022: | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Maturity of debt related to right-of-use assets as per December 31, 2021: | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Refer to note 8 for an analysis of the maturity of total debt. | |
| | | | | | | |
| | | | | |
The Group terminated a sale-leaseback agreement in 2022 and refinanced the vessels in the bank market. The Group did not enter any new sale-leaseback agreements in 2022. Refer to note 8 for further details. |
|
| | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-444": {
"value": "
Note 12 Leases
| | | | | | | |
| | | | | | | |
Capitalized right-of-use assets January 1, 2022 | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Carrying amount right-of-use assets December 31, 2022 | | | | | | | |
| | | | | | | |
| | | | | | | |
Capitalized right-of-use assets January 1, 2021 | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Carrying amount right-of-use assets December 31, 2021 | | | | | | | |
| | | | | | | |
| | | | | | | |
Remeasurement in 2021 of USD 9.8 million was mainly due to a time charter contract cancelled prior to the originally expiry date. | | | |
| | |
| | | | | | | |
| | | | | |
Variable lease payments made in 2022 are related to pool distributions to external participants in the pools. The total amount distributed in 2022 equals USD 108.6 million, including non-lease component (USD 101.1 million in 2021). | | |
| |
| |
Information about lease payments made | | | | | |
Total nominal lease payments (including short term,\u00a0 long term and variable leases) | | | | | |
Of which short term lease expenses\u00a0 (including non- lease component) | | | | | |
| | | | | | | |
Information about commitments for commenced leases\u00a0 (not included in lease liability) | | | | | |
Lease commitments associated with short term leases (undiscounted) | | | | | |
Non-lease component (OPEX) right-of-use assets, not included in lease liability (undiscounted) | | | | | |
| | | | | | | |
| | | | | | | |
The non-lease component refers to time-charter contracts including a service element. Refer to note 2.6 for a description of the Group's accounting policies related to said contracts. | | | |
| | |
| | |
| | | | | | | |
Information about extension options | | | | |
Extension options (undiscounted) not included in lease liability, bare-boat element vessels | | | | | |
Extension options\u00a0 (undiscounted) not included in lease liability, OPEX element vessels | | | | | |
Extension options\u00a0 (undiscounted) not included in lease liability, office buildings | | | | | |
Total extension options (undiscounted) not included in lease liability | | | | | |
| | | | | | | |
Information about leases not yet commenced but where the Group is Committed | | | | |
Nominal amount of future lease payments for time charter and bare-boat leases where lease term exceeds 12 months | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Maturity of debt related to right-of-use assets as per December 31, 2022: | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Maturity of debt related to right-of-use assets as per December 31, 2021: | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Refer to note 8 for an analysis of the maturity of total debt. | |
| | | | | | | |
| | | | | |
The Group terminated a sale-leaseback agreement in 2022 and refinanced the vessels in the bank market. The Group did not enter any new sale-leaseback agreements in 2022. Refer to note 8 for further details. |
|
| | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-445": {
"value": "
Note 13 Impairment of non-current assets
As of December 31 2022, the market capitalization exceeded the book value of its equity. However, due to
changing regulatory framework for the shipping sector, the Group has carried out an impairment assessment for
the year ended December 31, 2022. See also note 3, section \"Climate and regulatory risk\".
When calculating the value in use at the balance sheet date for the deep-sea/regional South-America CGU , the
following key assumptions are applied. This CGU also contains the Group's right-of-use assets (vessels).
| | |
| | |
Weighted average cost of capital | | |
Average annual growth in time charter earnings the first four year after the balance sheet date (arithmetic average) | | |
Estimated useful life of vessels | | |
All cash flows in the value in use calculation are assumed to increase with 2.5% in the entire remaining useful
life of the vessels. The above table indicate assumptions used in the base case. In 2021, we assumed a growth
of 4.5% the first four years, and thereafter 2% growth over the remaining useful life of the vessels.
Applying the above assumptions, the value in use calculation did not reveal any need for impairment.
Three different scenarios have been prepared when testing the vessels for possible impairment. The Group has
also performed a sensitivity analysis on the discount rate, with an increase of 50bp. The analysis did not indicate
any impairment in the specified range.
In all impairment test scenarios, the expected future increase in fuel cost stemming from carbon taxes are
assumed to be\u00a0 charged to charterer. Based on a price of emission allowances of EUR 90 per metric ton carbon
dioxide,\u00a0 USD 6 million in increased voyage expenses are estimated for 2024, increasing to USD 16 million in
2026.
Cash outflows related to capital expenditure includes estimated cost of dry-docking. Since our vessels are
estimated to achieve a C-rating on the AER (see Critical Accounting judgement - Climate and regulatory risk), no
mandatory capital expenditure related to compliance with new legislation is included.
In 2021, the Group recognized a total of USD 21 million in impairment associated with the agreed sale of three
regional vessels. These vessels were an important part of our regional Asia trade which we now have exited with
the delivery of the last vessel in February 2022. At the end of 2021, these vessels were classified as held for sale
in our balance sheet and valued at sales price less cost of disposal.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-446": {
"value": "
Note 14 Earnings per share
The basic earnings per share are calculated by dividing the net profit for the year attributable to ordinary equity
holders of the parent by weighted average number of ordinary shares outstanding during the year.\u00a0 Basic and
diluted earnings per share are the same, as the Company has no convertible bond loan or stock option plan.
| | |
| | |
Profit/(loss) and diluted profit for the year due to the holders of ordinary shares | | |
Weighted average number of ordinary shares for basic earnings per share /diluted average number of shares outstanding 1) | | |
Basic/diluted earnings per share | | |
1) The weighted average number of shares are adjusted for the weighted average effect of changes in treasury shares during the year. See
note 26.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-447": {
"value": "1.79",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:USD/xbrli:shares"
}
},
"f-448": {
"value": "1.79",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:USD/xbrli:shares"
}
},
"f-449": {
"value": "-0.42",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:USD/xbrli:shares"
}
},
"f-450": {
"value": "-0.42",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:USD/xbrli:shares"
}
},
"f-451": {
"value": "
Note 15 Transactions with related parties
The Group has carried out various transactions with related parties. All transactions have been carried out as
part of the ordinary operations, based on the arm-length principle. Transactions with related parties are settled
on a regular basis and the balances as per December 31, 2022 were immaterial.
The Odfjell Group shares offices in Brazil with a local terminal company related to Chair of the Board, Laurence
Ward Odfjell. The Chair's family also has ownership interest in a company, which acts as Brazilian port agent for
Odfjell. In addition to reimbursement of actual expenses and expenditures incurred, Odfjell Tankers AS and
Flumar Transportes de Quimicos e Gases Ltda paid these companies USD 1.0 million in agency fees in 2022
(USD 1.1 million in 2021), while Flumar Transportes de Quimicos e Gases Ltda and Odfjell Brazil \u2013
Representacoes Ltds paid USD 0.1 million for administrative services in 2022 (USD 0.1 million in 2021).
Odfjell Management AS rent offices in Norway from a company related to Chair of the Board, Laurence Ward
Odfjell. The annual lease for 2022 was USD 1.6 million.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-452": {
"value": "
Note 16 Commitments, guarantees and contingencies
Capital commitment
Odfjell has no capital commitment as per December 31, 2022.
Guarantees
| | |
| | |
100% owned subsidiaries (third party guarantees) | | |
Joint ventures (credit facilities) | | |
| | |
See also note 28 for guarantees within the joint venture structure.
Contingencies
The Group maintains insurance coverage for its activities consistent with industry practice. The Group is involved
in claims typical to the Chemical Tanker and Tank Terminal industry, but no claims have resulted in material
losses to the Group.
Note 30 Contingent liabilities
In the ordinary course of business, the Group is party to certain disputes etc. of various scopes. The resolution of
these disputes etc. is associated with uncertainty, as they depend on legal proceedings, such as negotiations
between the parties affected. At the end of 2022, neither the parent company nor its consolidated subsidiaries
were involved in disputes etc. where the likely outcome could be material for the Group.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-453": {
"value": "Capital commitmentOdfjell has no capital commitment as per December 31, 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-454": {
"value": "
Guarantees
| | |
| | |
100% owned subsidiaries (third party guarantees) | | |
Joint ventures (credit facilities) | | |
| | |
See also note 28 for guarantees within the joint venture structure.
Contingencies
The Group maintains insurance coverage for its activities consistent with industry practice. The Group is involved
in claims typical to the Chemical Tanker and Tank Terminal industry, but no claims have resulted in material
losses to the Group.
Note 30 Contingent liabilities
In the ordinary course of business, the Group is party to certain disputes etc. of various scopes. The resolution of
these disputes etc. is associated with uncertainty, as they depend on legal proceedings, such as negotiations
between the parties affected. At the end of 2022, neither the parent company nor its consolidated subsidiaries
were involved in disputes etc. where the likely outcome could be material for the Group.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-455": {
"value": "45000",
"decimals": -3,
"dimensions": {
"concept": "odf:Guarantees",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:USD"
}
},
"f-456": {
"value": "181000",
"decimals": -3,
"dimensions": {
"concept": "odf:Guarantees",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:USD"
}
},
"f-457": {
"value": "
Note 17 Cash and cash equivalents
A substantial part of the Group's cash and cash equivalents are held by overseas offices, management
companies and pools as part of normal working capital. The main Norwegian entities are included in a cash pool
that allows for automatic borrowing between entities and currencies. In order to earn a higher rate of interest on
excess liquidity, we seek to minimize the top balance in the cash pool through placements in other financial
instruments.
Excess liquidity is defined as cash in excess of normal working capital, and include funds earmarked upcoming
bank payments, CAPEX and dividends. The Group considers the end-use of our cash and cash equivalent
balance and match the risk, tenor and liquidity of placements accordingly. As an example, funds earmarked for
working capital is usually placed in regular bank and cash pool accounts with up to a week's tenor, while funds
earmarked for debt repayments, yard installments, and dividends, are usually split on various time deposits and
in money market instruments with an investment horizon of 3-12 months.\u00a0
| | | |
| | | |
Cash at banks and in hand | | | |
Time deposits and Money Market instruments | | | |
Total cash and cash equivalents | | | |
Restricted cash consists of USD 2.0 million (USD 1.6 million in 2021) in funds for withholding taxes relating to
employees in Odfjell Management AS and Odfjell Maritime Services AS.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-458": {
"value": "
Note 17 Cash and cash equivalentsRestricted cash consists of USD 2.0 million (USD 1.6 million in 2021) in funds for withholding taxes relating to
employees in Odfjell Management AS and Odfjell Maritime Services AS.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-459": {
"value": "
Note 18 Voyage expenses
Voyage expenses are expenses directly related to the ship voyage.
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Other voyage related expenses | | | |
| | | |
1) Inclusive financial hedging
Note 19 Operating expenses
Operating expenses consist of expenses for operating ships (for example wages and remunerations for crew
and operational personnel, and materials and equipment for ships).
| | | |
| | | |
| | | |
Other ship management expenses | | | |
| | | |
| | | |
Total operating expenses excluding service element of leases | | | |
Service element of leases | | | |
| | | |
Note 20 General and administrative expenses
General and administrative expenses consist of expenses for headquarter activities and activities internationally
for brokerage and agency.
| | |
| | |
| | |
| | |
| | |
Total general and administrative expenses | | |
Including in the above is auditor\u2019s remuneration for (exclusive of VAT):
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-460": {
"value": "
Note 19 Operating expenses
Operating expenses consist of expenses for operating ships (for example wages and remunerations for crew
and operational personnel, and materials and equipment for ships).
| | | |
| | | |
| | | |
Other ship management expenses | | | |
| | | |
| | | |
Total operating expenses excluding service element of leases | | | |
Service element of leases | | | |
| | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-461": {
"value": "
Note 20 General and administrative expenses
General and administrative expenses consist of expenses for headquarter activities and activities internationally
for brokerage and agency.
| | |
| | |
| | |
| | |
| | |
Total general and administrative expenses | | |
Including in the above is auditor\u2019s remuneration for (exclusive of VAT):
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-462": {
"value": "
Including in the above is auditor\u2019s remuneration for (exclusive of VAT):
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-463": {
"value": "
Average man-years of employees including crew:
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total average man-years of employees | | |
At the end of 2022 the Board of Directors consists of six members. Compensation and benefits to the
Board of Directors:
For more specification \u2013 see Odfjell SE note 11.
Compensation and benefits to the Management Group, paid and earned in 2022:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch (until 05.05.2022) | | | | | |
CEO, Harald Fotland (COO until 05.05.2022) | | | | | |
| | | | | |
CSO, \u00d8istein H. Jensen | | | | | |
| | | | | |
MD Terminals, Adrian Lenning 2) | | | | | |
| | | | | |
| | | | | |
1) The bonus relates to earned amount in 2022 for both short and long term incentive scheme. This is a change in methodology compared to\u00a0
2021, where paid, not earned was reported.
2) Included as member in the Management Group from December 1st 2022. The compensation presented above relates to their Executive
Management Positions from December 2022.
Compensation and benefits paid to the Management Group in 2021:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch | | | | | |
| | | | | |
| | | | | |
COS, \u00d8istein H. Jensen | | | | | |
| | | | | |
1) The bonus relates to expensed amount in 2021 for both short and long term incentive scheme.
In 2022, the bonus related to the long-term incentive program, net of withholding tax, have been used to acquire
Restricted Shares in accordance with the long-term incentive program.
Only the CEO of the Executive Management has a defined agreement with regard to severance pay. In case the
Company terminates the employment, the CEO is, in addition to payment of salary and other remuneration
during the notice period, also entitled to 6 months\u2019 base salary.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-464": {
"value": "
At the end of 2022 the Board of Directors consists of six members. Compensation and benefits to the
Board of Directors:
For more specification \u2013 see Odfjell SE note 11.
Compensation and benefits to the Management Group, paid and earned in 2022:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch (until 05.05.2022) | | | | | |
CEO, Harald Fotland (COO until 05.05.2022) | | | | | |
| | | | | |
CSO, \u00d8istein H. Jensen | | | | | |
| | | | | |
MD Terminals, Adrian Lenning 2) | | | | | |
| | | | | |
| | | | | |
1) The bonus relates to earned amount in 2022 for both short and long term incentive scheme. This is a change in methodology compared to\u00a0
2021, where paid, not earned was reported.
2) Included as member in the Management Group from December 1st 2022. The compensation presented above relates to their Executive
Management Positions from December 2022.
Compensation and benefits paid to the Management Group in 2021:
| | | | | |
| | | | | |
CEO, Kristian V. M\u00f8rch | | | | | |
| | | | | |
| | | | | |
COS, \u00d8istein H. Jensen | | | | | |
| | | | | |
1) The bonus relates to expensed amount in 2021 for both short and long term incentive scheme.
In 2022, the bonus related to the long-term incentive program, net of withholding tax, have been used to acquire
Restricted Shares in accordance with the long-term incentive program.
Only the CEO of the Executive Management has a defined agreement with regard to severance pay. In case the
Company terminates the employment, the CEO is, in addition to payment of salary and other remuneration
during the notice period, also entitled to 6 months\u2019 base salary.
Shares owned/controlled by members of the Board of Directors, CEO and other members of the
Executive Management (including related parties) are:
| | | | | | | |
| | | |
| | | | | | | |
Chair of the Board of Directors, Laurence Ward Odfjell | | | | | | | |
Director, \u00c5ke Gregertsen | | | | | | | |
Director, Nils Petter Dyvik | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-465": {
"value": "
Note 22 Other financial items
| | |
| | |
Financial assets and liabilities at fair value through profit or loss statement | | |
Realized gain/losses on other current financial assets | | |
Currency gains (losses) \u2013 see note 23 | | |
| | |
| | |
Total other financial items | | |
See note 6 for overview of hedging exposure, and note 23 for specification of currency gains (losses).
Note 23 Currency gains and losses
| | |
| | |
Currency gains (losses) on non-current receivables and liabilities | | |
Currency gains (losses) on cash and cash equivalents | | |
Currency gains (losses) on other current assets and current liabilities | | |
Total currency gains (losses) | | |
See note 6 for overview of currency hedging exposure.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-466": {
"value": "
Note 22 Other financial items
| | |
| | |
Financial assets and liabilities at fair value through profit or loss statement | | |
Realized gain/losses on other current financial assets | | |
Currency gains (losses) \u2013 see note 23 | | |
| | |
| | |
Total other financial items | | |
See note 6 for overview of hedging exposure, and note 23 for specification of currency gains (losses).
Note 23 Currency gains and losses
| | |
| | |
Currency gains (losses) on non-current receivables and liabilities | | |
Currency gains (losses) on cash and cash equivalents | | |
Currency gains (losses) on other current assets and current liabilities | | |
Total currency gains (losses) | | |
See note 6 for overview of currency hedging exposure.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-467": {
"value": "
Note 22 Other financial items
| | |
| | |
Financial assets and liabilities at fair value through profit or loss statement | | |
Realized gain/losses on other current financial assets | | |
Currency gains (losses) \u2013 see note 23 | | |
| | |
| | |
Total other financial items | | |
See note 6 for overview of hedging exposure, and note 23 for specification of currency gains (losses).
Note 23 Currency gains and losses
| | |
| | |
Currency gains (losses) on non-current receivables and liabilities | | |
Currency gains (losses) on cash and cash equivalents | | |
Currency gains (losses) on other current assets and current liabilities | | |
Total currency gains (losses) | | |
See note 6 for overview of currency hedging exposure.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-468": {
"value": "
Note 24 Current receivables
| | |
| | |
Trade receivables from contract with customers | | |
| | |
Contract asset (accrued revenues) | | |
| | |
Allowance for expected credit losses | | |
Total current receivables | | |
Trade receivables are for a major part related to revenue from contract with customers with payment terms
shortly after bill of lading to upon delivery. Allowance for expected credit losses relates to trade receivables; see
Note 5 for information on credit risk management.\u00a0
Contract assets are recognized revenue for freight services partly satisfied from voyages that have commenced
but are not completed and invoices that have not been issued as per December 31. Contract assets are
reclassified to receivables from contracts with customers once the freight service is being invoiced to the
customer, at the latest when the voyage is completed (at the latest a few months after it commences). Contract
assets include variable consideration only when it is highly probable there will be no significant reversal at a later
date when the uncertainty related to the variable payment is resolved.
As the voyages and related contracts have a duration of less than a year, the Group does not disclose
separately the transaction price related to partially unfulfilled contracts at the reporting date, refer to IFRS
15.121.
As at December 31, the aging analysis of trade receivables, contract assets and other current
receivables are as follows:
1) Not including prepaid cost and allowance for expected credit losses
The table below summarizes total current receivables into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current receivables | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-469": {
"value": "
Note 24 Current receivables
| | |
| | |
Trade receivables from contract with customers | | |
| | |
Contract asset (accrued revenues) | | |
| | |
Allowance for expected credit losses | | |
Total current receivables | | |
Trade receivables are for a major part related to revenue from contract with customers with payment terms
shortly after bill of lading to upon delivery. Allowance for expected credit losses relates to trade receivables; see
Note 5 for information on credit risk management.\u00a0
Contract assets are recognized revenue for freight services partly satisfied from voyages that have commenced
but are not completed and invoices that have not been issued as per December 31. Contract assets are
reclassified to receivables from contracts with customers once the freight service is being invoiced to the
customer, at the latest when the voyage is completed (at the latest a few months after it commences). Contract
assets include variable consideration only when it is highly probable there will be no significant reversal at a later
date when the uncertainty related to the variable payment is resolved.
As the voyages and related contracts have a duration of less than a year, the Group does not disclose
separately the transaction price related to partially unfulfilled contracts at the reporting date, refer to IFRS
15.121.
As at December 31, the aging analysis of trade receivables, contract assets and other current
receivables are as follows:
1) Not including prepaid cost and allowance for expected credit losses
The table below summarizes total current receivables into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current receivables | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-470": {
"value": "
Note 25 Other current liabilities
| | |
| | |
| | |
| | |
Accrued expenses Ship Management | | |
Accrued interest expenses | | |
| | |
| | |
Working capital liabilities to pool partners | | |
Other current liabilities | | |
Loans from Joint Ventures | | |
Total other current liabilities | | |
As per December 31, 2022 the Group has the following remaining performance obligations (amounts not
disclosed):
\u2022For voyages in progress, revenues related to the remaining freight services will be recognized as the
voyage progress. All voyages in progress will be completed within a few months.
\u2022In addition, the Group has freight commitments related to contracts of affreightments entered into for
future shipments.
The table below summarizes the maturity profile of the Group\u2019s other current liabilities:
The table below summarizes other current liabilities into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current liabilities | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-471": {
"value": "
Note 25 Other current liabilities
| | |
| | |
| | |
| | |
Accrued expenses Ship Management | | |
Accrued interest expenses | | |
| | |
| | |
Working capital liabilities to pool partners | | |
Other current liabilities | | |
Loans from Joint Ventures | | |
Total other current liabilities | | |
As per December 31, 2022 the Group has the following remaining performance obligations (amounts not
disclosed):
\u2022For voyages in progress, revenues related to the remaining freight services will be recognized as the
voyage progress. All voyages in progress will be completed within a few months.
\u2022In addition, the Group has freight commitments related to contracts of affreightments entered into for
future shipments.
The table below summarizes the maturity profile of the Group\u2019s other current liabilities:
The table below summarizes other current liabilities into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current liabilities | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-472": {
"value": "
Note 25 Other current liabilities
| | |
| | |
| | |
| | |
Accrued expenses Ship Management | | |
Accrued interest expenses | | |
| | |
| | |
Working capital liabilities to pool partners | | |
Other current liabilities | | |
Loans from Joint Ventures | | |
Total other current liabilities | | |
As per December 31, 2022 the Group has the following remaining performance obligations (amounts not
disclosed):
\u2022For voyages in progress, revenues related to the remaining freight services will be recognized as the
voyage progress. All voyages in progress will be completed within a few months.
\u2022In addition, the Group has freight commitments related to contracts of affreightments entered into for
future shipments.
The table below summarizes the maturity profile of the Group\u2019s other current liabilities:
The table below summarizes other current liabilities into different currencies:
| | |
| | |
| | |
| | |
| | |
| | |
Total current liabilities | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-473": {
"value": "
Note 26 Share capital and premium
| | | | | | | | | | | |
| | | Share capital\u00a0 (USD 1 000) | | Share premium (USD 1 000) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Per December 31, 2022 Odfjell SE holds 5,467,689 A - shares and 2,322,482 B - shares.
The shares are all authorized, issued and fully paid. Nominal value is NOK 2.50, equivalent to USD 0.25 as per
December 31, 2022. All the shares have the same rights in the Company, except for B-shares which have no
voting rights.
Shares owned/controlled by members of the Board of Directors, CEO and other members of the
Executive Management (including related parties) are:
| | | | | | | |
| | | |
| | | | | | | |
Chair of the Board of Directors, Laurence Ward Odfjell | | | | | | | |
Director, \u00c5ke Gregertsen | | | | | | | |
Director, Nils Petter Dyvik | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-474": {
"value": "
Note 26 Share capital and premium
| | | | | | | | | | | |
| | | Share capital\u00a0 (USD 1 000) | | Share premium (USD 1 000) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Per December 31, 2022 Odfjell SE holds 5,467,689 A - shares and 2,322,482 B - shares.
The shares are all authorized, issued and fully paid. Nominal value is NOK 2.50, equivalent to USD 0.25 as per
December 31, 2022. All the shares have the same rights in the Company, except for B-shares which have no
voting rights.
Shares owned/controlled by members of the Board of Directors, CEO and other members of the
Executive Management (including related parties) are:
| | | | | | | |
| | | |
| | | | | | | |
Chair of the Board of Directors, Laurence Ward Odfjell | | | | | | | |
Director, \u00c5ke Gregertsen | | | | | | | |
Director, Nils Petter Dyvik | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-475": {
"value": "
Note 27 List of subsidiaries
The following subsidiaries are fully consolidated in the financial statements as per December 31, 2022:
| | | |
| | | |
| | | |
Flumar Transportes de Quimicos e Gases Ltda | | | |
| | | |
| | | |
| | | |
| | | |
Odfjell Terminals Management BV | | | |
| | | |
Odfjell Chemical Tankers AS | | | |
Odfjell Chemical Tankers II AS | | | |
Odfjell Insurance & Properties AS | | | |
| | | |
Odfjell Maritime Services AS | | | |
| | | |
| | | |
| | | |
| | | |
Odfjell Ship Management Philippines Inc | | | |
| | | |
Odfjell Singapore Pte Ltd | | | |
Odfjell Terminals Asia Holdings Pte Ltd | | | |
Odfjell Terminals Asia Pte Ltd | | | |
Odfjell Terminals China Pte Ltd | | | |
Odfjell Durban South Africa Pty Ltd | | | |
Odfjell Mazibuko SA Pty Ltd | | | |
| | | |
Odfjell USA (Houston) Inc | | | |
Odfjell Terminals Management Inc | | | |
| | | |
| | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-476": {
"value": "
Note 27 List of subsidiaries
The following subsidiaries are fully consolidated in the financial statements as per December 31, 2022:
| | | |
| | | |
| | | |
Flumar Transportes de Quimicos e Gases Ltda | | | |
| | | |
| | | |
| | | |
| | | |
Odfjell Terminals Management BV | | | |
| | | |
Odfjell Chemical Tankers AS | | | |
Odfjell Chemical Tankers II AS | | | |
Odfjell Insurance & Properties AS | | | |
| | | |
Odfjell Maritime Services AS | | | |
| | | |
| | | |
| | | |
| | | |
Odfjell Ship Management Philippines Inc | | | |
| | | |
Odfjell Singapore Pte Ltd | | | |
Odfjell Terminals Asia Holdings Pte Ltd | | | |
Odfjell Terminals Asia Pte Ltd | | | |
Odfjell Terminals China Pte Ltd | | | |
Odfjell Durban South Africa Pty Ltd | | | |
Odfjell Mazibuko SA Pty Ltd | | | |
| | | |
Odfjell USA (Houston) Inc | | | |
Odfjell Terminals Management Inc | | | |
| | | |
| | | |
Note 28 Investments in joint ventures and associates
Odfjell Terminals BV, is acting as holding company for the Group's investments in terminals. In Odfjell Terminals
BV, the terminal investments are structured as joint ventures, with a separate holding company owned by the
respective joint venture partners.
The holding company in USA is Topco LLC. This holding company owns the terminals in USA (Houston and
Charleston) 100%. Odfjell Terminals BV owns 51% of Topco LLC, while Northleaf owns the remaining 49% of the
shares.
The holding company for the Asia terminal is Odfjell Terminals AS. Odfjell Terminals AS owns 50% in the terminal
in Korea. Up to July 2022, Odfjell Terminals Asia Holding Pte Ltd and its' subsidiaries were 51% owned by Odfjell
Terminals BV and 49% owned by Lindsay Goldberg. Lindsay Goldberg sold its' 49% share of Odfjell Terminals
Asia Holding Pte Ltd to Odfjell Terminals BV, so the company is now 100% owned by the Odfjell Group. The
acquisition is considered an asset acquisition and not a business combination. The acquistion was booked at fair
value and the majority of assets were receivables and cash. The agreed purchasing price was USD 26.7 million
and net cash outflow resulting from the transaction was USD 19.1 million.
The investment in Noord Natie Odfjell Terminals NV is owned directly by Odfjell Terminals BV.
Odfjell and its joint venture partner continues to share control over the investments, thus the investments in the
terminal holding companies are accounted for as investments in joint ventures, applying the equity method.
Odfjell had also established a joint venture with Breakwater Capital and Oak Hill Advisors, L.P. to include
Odfjell\u2019s Gas Carriers business. This investment was done through the holding company Odfjell Gas AS (ref.
note 4). In March 2021, Odfjell SE acquired the remaining 50% of shares in Odfjell Gas AS, and the companies
were fully consolidated in the financial statements the remaining months of 2021. The two Gas vessels are now
sold and Odfjell Gas AS and its subsidiaries are liquidated.
See note 16 for further information about guarantees issued on behalf of joint ventures.
The investment in joint ventures and associates includes the following companies accounted for
according to the equity consolidation method during 2022:
| | | |
Joint ventures and associates | | | |
| | | |
| | | |
Tank Terminal entities in Europe | | | |
Noord Natie Odfjell Terminals NV | | | |
| | | |
Tank Terminal entities in USA | | | |
| | | |
Odfjell Holdings (USA) Inc | | | |
Odfjell Terminals (Charleston) LLC | | | |
Odfjell Terminals (Houston) Inc | | | |
| | | |
| | | |
Tank Terminal entities in Asia | | | |
Odfjell Nangang Terminals (Tianjin) Co Ltd - company sold July-22 | | | |
Odfjell Changxing Terminals (Dalian) Co Ltd - company owned 20.4% up to July-22 | | | |
Odfjell Terminals (Korea) Co Ltd | | | |
Odfjell Terminals Asia Holding Pte Ltd -\u00a0 company owned 100% from July-22 | | | |
Odfjell Terminals (China) Pte Ltd - company owned 100% from July-22 | | | |
Odfjell Terminals Asia Pte Ltd - company owned 100% from July-22 | | | |
| | | |
The share of result and balance sheet items for investments in joint ventures and associates are
recognized based on equity method:
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total comprehensive income | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Depreciation excess values net of deferred | | | | | | | | | | | | |
Group's share of profit for the year | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total equity closing balance | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Capital expenditure, Odfjell share | | | | | | | | | | | | |
The table above illustrates that Odfjell now owns its terminal investments through separate joint ventures. Tank
Terminals Europe include financial information for the Noord Natie Terminals NV. Tank Terminals USA represent
the summarized financial information from the consolidated US Holdings Inc for the whole year. Similar, Tank
Terminals Asia represent the summarized financial information from the consolidated Odfjell Terminals Asia
Holding Pte Ltd up to July 2022, and Odfjell Terminals Korea Co. Ltd for the whole year. The book value of the
investment in the Odfjell Nangang Terminal (Tianjin) was zero. Accumulated net loss of USD 0.7 million related
to Odfjell Nangang Terminal (Tianjin) is not recognized in 2022 (USD 2.6 million in 2021).
The Group received dividend from Noord Natie Terminals NV in 2022, USD 1.3 million (USD 1.5 million in 2021),
and from Odfjell Terminals Korea Co. Ltd in 2022, USD 1.4 million (USD 1.3 million in 2021).
| | | |
| | | |
Loan to / from associates and joint ventures | | | |
All transactions are considered being at commercial reasonable market terms.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-477": {
"value": "
Note 28 Investments in joint ventures and associates
Odfjell Terminals BV, is acting as holding company for the Group's investments in terminals. In Odfjell Terminals
BV, the terminal investments are structured as joint ventures, with a separate holding company owned by the
respective joint venture partners.
The holding company in USA is Topco LLC. This holding company owns the terminals in USA (Houston and
Charleston) 100%. Odfjell Terminals BV owns 51% of Topco LLC, while Northleaf owns the remaining 49% of the
shares.
The holding company for the Asia terminal is Odfjell Terminals AS. Odfjell Terminals AS owns 50% in the terminal
in Korea. Up to July 2022, Odfjell Terminals Asia Holding Pte Ltd and its' subsidiaries were 51% owned by Odfjell
Terminals BV and 49% owned by Lindsay Goldberg. Lindsay Goldberg sold its' 49% share of Odfjell Terminals
Asia Holding Pte Ltd to Odfjell Terminals BV, so the company is now 100% owned by the Odfjell Group. The
acquisition is considered an asset acquisition and not a business combination. The acquistion was booked at fair
value and the majority of assets were receivables and cash. The agreed purchasing price was USD 26.7 million
and net cash outflow resulting from the transaction was USD 19.1 million.
The investment in Noord Natie Odfjell Terminals NV is owned directly by Odfjell Terminals BV.
Odfjell and its joint venture partner continues to share control over the investments, thus the investments in the
terminal holding companies are accounted for as investments in joint ventures, applying the equity method.
Odfjell had also established a joint venture with Breakwater Capital and Oak Hill Advisors, L.P. to include
Odfjell\u2019s Gas Carriers business. This investment was done through the holding company Odfjell Gas AS (ref.
note 4). In March 2021, Odfjell SE acquired the remaining 50% of shares in Odfjell Gas AS, and the companies
were fully consolidated in the financial statements the remaining months of 2021. The two Gas vessels are now
sold and Odfjell Gas AS and its subsidiaries are liquidated.
See note 16 for further information about guarantees issued on behalf of joint ventures.
The investment in joint ventures and associates includes the following companies accounted for
according to the equity consolidation method during 2022:
| | | |
Joint ventures and associates | | | |
| | | |
| | | |
Tank Terminal entities in Europe | | | |
Noord Natie Odfjell Terminals NV | | | |
| | | |
Tank Terminal entities in USA | | | |
| | | |
Odfjell Holdings (USA) Inc | | | |
Odfjell Terminals (Charleston) LLC | | | |
Odfjell Terminals (Houston) Inc | | | |
| | | |
| | | |
Tank Terminal entities in Asia | | | |
Odfjell Nangang Terminals (Tianjin) Co Ltd - company sold July-22 | | | |
Odfjell Changxing Terminals (Dalian) Co Ltd - company owned 20.4% up to July-22 | | | |
Odfjell Terminals (Korea) Co Ltd | | | |
Odfjell Terminals Asia Holding Pte Ltd -\u00a0 company owned 100% from July-22 | | | |
Odfjell Terminals (China) Pte Ltd - company owned 100% from July-22 | | | |
Odfjell Terminals Asia Pte Ltd - company owned 100% from July-22 | | | |
| | | |
The share of result and balance sheet items for investments in joint ventures and associates are
recognized based on equity method:
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total comprehensive income | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Depreciation excess values net of deferred | | | | | | | | | | | | |
Group's share of profit for the year | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total equity closing balance | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Capital expenditure, Odfjell share | | | | | | | | | | | | |
The table above illustrates that Odfjell now owns its terminal investments through separate joint ventures. Tank
Terminals Europe include financial information for the Noord Natie Terminals NV. Tank Terminals USA represent
the summarized financial information from the consolidated US Holdings Inc for the whole year. Similar, Tank
Terminals Asia represent the summarized financial information from the consolidated Odfjell Terminals Asia
Holding Pte Ltd up to July 2022, and Odfjell Terminals Korea Co. Ltd for the whole year. The book value of the
investment in the Odfjell Nangang Terminal (Tianjin) was zero. Accumulated net loss of USD 0.7 million related
to Odfjell Nangang Terminal (Tianjin) is not recognized in 2022 (USD 2.6 million in 2021).
The Group received dividend from Noord Natie Terminals NV in 2022, USD 1.3 million (USD 1.5 million in 2021),
and from Odfjell Terminals Korea Co. Ltd in 2022, USD 1.4 million (USD 1.3 million in 2021).
| | | |
| | | |
Loan to / from associates and joint ventures | | | |
All transactions are considered being at commercial reasonable market terms.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-478": {
"value": "
Note 28 Investments in joint ventures and associates
Odfjell Terminals BV, is acting as holding company for the Group's investments in terminals. In Odfjell Terminals
BV, the terminal investments are structured as joint ventures, with a separate holding company owned by the
respective joint venture partners.
The holding company in USA is Topco LLC. This holding company owns the terminals in USA (Houston and
Charleston) 100%. Odfjell Terminals BV owns 51% of Topco LLC, while Northleaf owns the remaining 49% of the
shares.
The holding company for the Asia terminal is Odfjell Terminals AS. Odfjell Terminals AS owns 50% in the terminal
in Korea. Up to July 2022, Odfjell Terminals Asia Holding Pte Ltd and its' subsidiaries were 51% owned by Odfjell
Terminals BV and 49% owned by Lindsay Goldberg. Lindsay Goldberg sold its' 49% share of Odfjell Terminals
Asia Holding Pte Ltd to Odfjell Terminals BV, so the company is now 100% owned by the Odfjell Group. The
acquisition is considered an asset acquisition and not a business combination. The acquistion was booked at fair
value and the majority of assets were receivables and cash. The agreed purchasing price was USD 26.7 million
and net cash outflow resulting from the transaction was USD 19.1 million.
The investment in Noord Natie Odfjell Terminals NV is owned directly by Odfjell Terminals BV.
Odfjell and its joint venture partner continues to share control over the investments, thus the investments in the
terminal holding companies are accounted for as investments in joint ventures, applying the equity method.
Odfjell had also established a joint venture with Breakwater Capital and Oak Hill Advisors, L.P. to include
Odfjell\u2019s Gas Carriers business. This investment was done through the holding company Odfjell Gas AS (ref.
note 4). In March 2021, Odfjell SE acquired the remaining 50% of shares in Odfjell Gas AS, and the companies
were fully consolidated in the financial statements the remaining months of 2021. The two Gas vessels are now
sold and Odfjell Gas AS and its subsidiaries are liquidated.
See note 16 for further information about guarantees issued on behalf of joint ventures.
The investment in joint ventures and associates includes the following companies accounted for
according to the equity consolidation method during 2022:
| | | |
Joint ventures and associates | | | |
| | | |
| | | |
Tank Terminal entities in Europe | | | |
Noord Natie Odfjell Terminals NV | | | |
| | | |
Tank Terminal entities in USA | | | |
| | | |
Odfjell Holdings (USA) Inc | | | |
Odfjell Terminals (Charleston) LLC | | | |
Odfjell Terminals (Houston) Inc | | | |
| | | |
| | | |
Tank Terminal entities in Asia | | | |
Odfjell Nangang Terminals (Tianjin) Co Ltd - company sold July-22 | | | |
Odfjell Changxing Terminals (Dalian) Co Ltd - company owned 20.4% up to July-22 | | | |
Odfjell Terminals (Korea) Co Ltd | | | |
Odfjell Terminals Asia Holding Pte Ltd -\u00a0 company owned 100% from July-22 | | | |
Odfjell Terminals (China) Pte Ltd - company owned 100% from July-22 | | | |
Odfjell Terminals Asia Pte Ltd - company owned 100% from July-22 | | | |
| | | |
The share of result and balance sheet items for investments in joint ventures and associates are
recognized based on equity method:
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total comprehensive income | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Depreciation excess values net of deferred | | | | | | | | | | | | |
Group's share of profit for the year | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total equity closing balance | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Capital expenditure, Odfjell share | | | | | | | | | | | | |
The table above illustrates that Odfjell now owns its terminal investments through separate joint ventures. Tank
Terminals Europe include financial information for the Noord Natie Terminals NV. Tank Terminals USA represent
the summarized financial information from the consolidated US Holdings Inc for the whole year. Similar, Tank
Terminals Asia represent the summarized financial information from the consolidated Odfjell Terminals Asia
Holding Pte Ltd up to July 2022, and Odfjell Terminals Korea Co. Ltd for the whole year. The book value of the
investment in the Odfjell Nangang Terminal (Tianjin) was zero. Accumulated net loss of USD 0.7 million related
to Odfjell Nangang Terminal (Tianjin) is not recognized in 2022 (USD 2.6 million in 2021).
The Group received dividend from Noord Natie Terminals NV in 2022, USD 1.3 million (USD 1.5 million in 2021),
and from Odfjell Terminals Korea Co. Ltd in 2022, USD 1.4 million (USD 1.3 million in 2021).
| | | |
| | | |
Loan to / from associates and joint ventures | | | |
All transactions are considered being at commercial reasonable market terms.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-479": {
"value": "
Note 28 Investments in joint ventures and associates
Odfjell Terminals BV, is acting as holding company for the Group's investments in terminals. In Odfjell Terminals
BV, the terminal investments are structured as joint ventures, with a separate holding company owned by the
respective joint venture partners.
The holding company in USA is Topco LLC. This holding company owns the terminals in USA (Houston and
Charleston) 100%. Odfjell Terminals BV owns 51% of Topco LLC, while Northleaf owns the remaining 49% of the
shares.
The holding company for the Asia terminal is Odfjell Terminals AS. Odfjell Terminals AS owns 50% in the terminal
in Korea. Up to July 2022, Odfjell Terminals Asia Holding Pte Ltd and its' subsidiaries were 51% owned by Odfjell
Terminals BV and 49% owned by Lindsay Goldberg. Lindsay Goldberg sold its' 49% share of Odfjell Terminals
Asia Holding Pte Ltd to Odfjell Terminals BV, so the company is now 100% owned by the Odfjell Group. The
acquisition is considered an asset acquisition and not a business combination. The acquistion was booked at fair
value and the majority of assets were receivables and cash. The agreed purchasing price was USD 26.7 million
and net cash outflow resulting from the transaction was USD 19.1 million.
The investment in Noord Natie Odfjell Terminals NV is owned directly by Odfjell Terminals BV.
Odfjell and its joint venture partner continues to share control over the investments, thus the investments in the
terminal holding companies are accounted for as investments in joint ventures, applying the equity method.
Odfjell had also established a joint venture with Breakwater Capital and Oak Hill Advisors, L.P. to include
Odfjell\u2019s Gas Carriers business. This investment was done through the holding company Odfjell Gas AS (ref.
note 4). In March 2021, Odfjell SE acquired the remaining 50% of shares in Odfjell Gas AS, and the companies
were fully consolidated in the financial statements the remaining months of 2021. The two Gas vessels are now
sold and Odfjell Gas AS and its subsidiaries are liquidated.
See note 16 for further information about guarantees issued on behalf of joint ventures.
The investment in joint ventures and associates includes the following companies accounted for
according to the equity consolidation method during 2022:
| | | |
Joint ventures and associates | | | |
| | | |
| | | |
Tank Terminal entities in Europe | | | |
Noord Natie Odfjell Terminals NV | | | |
| | | |
Tank Terminal entities in USA | | | |
| | | |
Odfjell Holdings (USA) Inc | | | |
Odfjell Terminals (Charleston) LLC | | | |
Odfjell Terminals (Houston) Inc | | | |
| | | |
| | | |
Tank Terminal entities in Asia | | | |
Odfjell Nangang Terminals (Tianjin) Co Ltd - company sold July-22 | | | |
Odfjell Changxing Terminals (Dalian) Co Ltd - company owned 20.4% up to July-22 | | | |
Odfjell Terminals (Korea) Co Ltd | | | |
Odfjell Terminals Asia Holding Pte Ltd -\u00a0 company owned 100% from July-22 | | | |
Odfjell Terminals (China) Pte Ltd - company owned 100% from July-22 | | | |
Odfjell Terminals Asia Pte Ltd - company owned 100% from July-22 | | | |
| | | |
The share of result and balance sheet items for investments in joint ventures and associates are
recognized based on equity method:
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total comprehensive income | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Depreciation excess values net of deferred | | | | | | | | | | | | |
Group's share of profit for the year | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Total equity closing balance | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Capital expenditure, Odfjell share | | | | | | | | | | | | |
The table above illustrates that Odfjell now owns its terminal investments through separate joint ventures. Tank
Terminals Europe include financial information for the Noord Natie Terminals NV. Tank Terminals USA represent
the summarized financial information from the consolidated US Holdings Inc for the whole year. Similar, Tank
Terminals Asia represent the summarized financial information from the consolidated Odfjell Terminals Asia
Holding Pte Ltd up to July 2022, and Odfjell Terminals Korea Co. Ltd for the whole year. The book value of the
investment in the Odfjell Nangang Terminal (Tianjin) was zero. Accumulated net loss of USD 0.7 million related
to Odfjell Nangang Terminal (Tianjin) is not recognized in 2022 (USD 2.6 million in 2021).
The Group received dividend from Noord Natie Terminals NV in 2022, USD 1.3 million (USD 1.5 million in 2021),
and from Odfjell Terminals Korea Co. Ltd in 2022, USD 1.4 million (USD 1.3 million in 2021).
| | | |
| | | |
Loan to / from associates and joint ventures | | | |
All transactions are considered being at commercial reasonable market terms.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-480": {
"value": "
Note 29 Held for sale
As per December 31, 2022, no assets were classified as held for sale.
As per December 31, 2021, the vessels Bow Dalian, Bow Fuling and Bow Nangang were classified as held for
sale. The vessels were included in the Chemical Tankers reporting segment, refer to note 4. An impairment loss
of USD 21 million related to the vessels was recognized in the third quarter of 2021, see note 13.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-481": {
"value": "
Note 31\u00a0 Other operating income / expenses
Other operating expenses in 2022 primarily relates to expenses incurred in Group restructurings.
A distribution from Den Norske Krigsforsikring for Skib to its members was approved in October 2021. The
distribution of USD 6.2 million less withholding tax of USD 1.6 million (net USD 4.6 million) was received in
December 2021. The withholding tax is assumed to be refunded from Norwegian tax authorities. Hence, no tax
expense is booked. The USD 1.6 million in withholding tax was recognized as a receivable in the balance sheet
per end December 2021 and was settled in 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-482": {
"value": "
Note 31\u00a0 Other operating income / expenses
Other operating expenses in 2022 primarily relates to expenses incurred in Group restructurings.
A distribution from Den Norske Krigsforsikring for Skib to its members was approved in October 2021. The
distribution of USD 6.2 million less withholding tax of USD 1.6 million (net USD 4.6 million) was received in
December 2021. The withholding tax is assumed to be refunded from Norwegian tax authorities. Hence, no tax
expense is booked. The USD 1.6 million in withholding tax was recognized as a receivable in the balance sheet
per end December 2021 and was settled in 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-483": {
"value": "
Note 33\u00a0 Subsequent events
Subsequent events are events that occur between the end of the reporting period and the date when the
financial statements are authorized for issue.
On February 8th 2023, the Board approved, based on proxy granted by the General Meeting, a dividend of USD
0.61 per share, totaling USD 48.2 million. The dividend was paid out February 21, 2023.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-484": {
"value": "
Note 34 Exchange rates of the Group\u2019s major currencies against USD
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:529900J8VSH14TP5VD23",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}