Company financial statements
Statement of comprehensive income
For the financial year ended 31 December 2021
|Dividend from a subsidiary||41,622||91,319|
|Gain from liquidation of subsidiary||7||900||–|
|Other operating expenses||3||(837)||(1,826)|
|Other finance expense||(38)||(38)|
|Finance income – net||134||265|
|Profit before income tax||41,819||89,758|
|Income tax expense||4||–||–|
|Profit after tax, representing total comprehensive income for the financial year||41,819||89,758|
Notes to the financial statements
These notes form an integral part of and should be read in conjunction with the accompanying financial statements
1. General information
Hafnia Limited (the “Company”), is incorporated and domiciled in Bermuda. The address of its registered office is Washington Mall Phase 2, 4th Floor, Suite 400, 22 Church Street, HM 1189, Hamilton HM EX, Bermuda.
On 16 January 2019, a wholly-owned subsidiary of Hafnia Limited (formerly known as BW Tankers Limited), BW Tankers Corporation, merged with Hafnia Tankers Limited (“Hafnia Tankers”), a fellow subsidiary of BW Group Limited (“BW Group”). The merger was effected through a share swap arrangement, where newly issued shares of BW Tankers Limited were exchanged for all outstanding shares of Hafnia Tankers Limited. On 21 January 2019, BW Tankers Corporation was merged with BW Tankers Limited without consideration in a simplified parent and subsidiary merger. BW Tankers Limited, 2.3 the surviving entity, then changed its name to Hafnia Limited.
The principal activity of the Company is that of investment holding.
These financial statements were authorised for issue by the Board of Directors of Hafnia Limited on 30 March 2022.
2. Significant accounting policies
2.1 Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), and have been prepared under the historical cost convention, except as disclosed in the accounting policies below.
2.2 Changes in accounting policies
Amendments to published standards effective in 2021
The Company has adopted the new standards and amendments to published standards as of 1 January 2021. Changes in the Company’s accounting policies have been made as required, in accordance with the transitional provisions in the respective standards and amendments.
The adoption of these new or amended standards did not result in substantial changes in the Company’s accounting policies and had no material effect on the amounts reported in the financial statements for the current or prior financial years.
2.3 Critical accounting estimates and assumptions
The preparation of financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Company’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. Estimates, assumptions and judgements are evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no estimates and assumptions which have a material effect on the financial statements.
2.4 Revenue and income recognition
Dividend income is recognised when the right to receive payment is established.
2.5 Investments in subsidiaries
Subsidiary is an entity controlled by the Company. The Company controls an entity when it is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Investment in subsidiaries are carried at cost less accumulated impairment losses in the Company’s balance sheet. On disposal of such investments, the difference between disposal proceeds and the carrying amounts of the investments are recognised in profit or loss.
2.6 Financial assets
(a) Recognition and initial measurement
Other receivables are initially recognised when they are originated. Other financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial assets are initially recognised at fair value plus transaction costs except for financial assets at fair value through profit or loss (FVTPL), which are recognised at fair value. Transaction costs for financial assets at FVTPL are recognised immediately as expenses.
The Company classifies its financial assets at amortised cost.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
They are presented as “Other receivables“ and “Cash and cash equivalents” in the balance sheet.
Financial assets at amortised cost are subsequently carried at amortised cost using the effective interest method.
(c) Derecognition of financial assets
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cashflows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
(d) Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount reported in the balance sheet, when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.
For financial assets measured at amortised cost and contract assets, the Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired and recognises an allowance for expected credit loss (ECL) at an amount equal to the lifetime expected credit loss if there has been a significant increase in credit risk since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company recognises an allowance for ECL at an amount equal to 12-month ECL.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that results from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.
For trade receivables and contract assets, the Company applied the simplified approach permitted by IFRS 9, which requires the loss allowance to be measured at an amount equal to lifetime ECLs.
The Company applies the general approach to provide for ECLs on all other financial instruments. Under the general approach, the loss allowance is measured at an amount equal to 12-month ECLs at initial recognition.
At each reporting date, the Company assesses whether the credit risk of a financial instrument has increased significantly since initial recognition. When credit risk has increased significantly since initial recognition, loss allowance is measured at an amount equal to lifetime ECLs.
Measurement of ECLs
ECLs are probability-weighted estimates of credit losses. Credit losses are measured at the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
Credit-impaired financial assets
At each reporting date, the Company assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
- significant financial difficulty of the debtor;
- a breach of contract such as a default or being more than 90 days past due;
- the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;
- it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECLs in the balance sheet
Loss allowances for financial assets measured at amortised cost and contract assets are deducted from the gross carrying amount of these assets.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience, informed credit assessment and other forward-looking information.
The Company assumes that the credit risk on a financial asset has increased significantly if the debtor is under significant financial difficulties, or when there is default or significant delay in payments. The Company considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held).
2.7 Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired from suppliers in the ordinary course of business. Trade and other payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
Trade and other payables are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method, and are derecognised when the Company’s obligation has been discharged or cancelled or expired.
2.8 Impairment of non-financial assets
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less costs to sell and value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognised as an impairment loss in profit or loss.
An impairment loss for an asset (or CGU) other than goodwill is reversed if, and only if, there has been a change in the estimate of the asset’s (or CGU’s) recoverable amount since the last impairment loss was recognised. The carrying amount of the asset (or CGU) is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation and depreciation) had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of impairment loss for an asset (or CGU) other than goodwill is recognised in profit or loss.
2.9 Fair value estimation of financial assets and liabilities
The carrying amounts of current financial assets and liabilities measured at amortised costs approximate their fair values due to the short term nature of the balances.
2.10 Foreign currency translation
(a) Functional and presentation currency
The financial statements are presented in United States Dollars, which is the Company’s functional currency. All financial information presented in US dollars has been rounded to the nearest thousand, unless otherwise stated
(b) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the date of the transactions. Foreign currency exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date, are recognised in profit or loss.
2.11 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand short-term bank deposits, which are subject to an insignificant risk of change in value.
2.12 Share capital
Common shares are classified as equity.
Incremental costs directly attributable to the issuance of new equity instruments are taken to equity as a deduction, net of tax, from the proceeds.
2.13 Dividend to Company’s shareholders
Interim dividends are recognised in the financial year in which they are declared payable and final dividends are recognised when the dividends are approved for payment by the directors and shareholders respectively.
2.14 Financial guarantee contracts
Financial guarantee contracts are accounted for as insurance contracts and treated as contingent liabilities until such time as they become probable that the Company will be required to make a payment under the guarantee. A provision is recognised based on the Company’s estimate of the ultimate cost of settling all claims incurred but unpaid at the balance sheet date. The provision is assessed by reviewing individual claims and tested for adequacy by comparing the amount recognised and the amount that would be required to settle the guarantee contract.
3. Expenses by nature
|Total other operating expenses||837||1,826|
4. Income taxes
No provision for tax has been made for the year ended 31 December 2021 and 2020 as the Company does not have any income that is subject to income tax based on the tax legislation applicable to the Company.
There is no income, withholding, capital gains or capital transfer taxes payable in Bermuda.
5. Other receivables
|– non-related parties||8||8|
Other receivables due from subsidiary represent dividends receivable.
The carrying amounts of other receivables approximate their fair values.
Information about the Company’s exposure to credit risk is disclosed in Note 14.
6. Loans receivable from subsidiary
|Loans receivable from subsidiary||13,166||8,063|
The loans receivable from subsidiary refer to amounts provided to Hafnia Tankers Marshall Islands LLC (“HTMI LLC”) for on-lending to a joint venture company, Vista Shipping Pte. Ltd., for making payments for newbuild instalments and other vessel related expenses.
The non-current loan relates to a loan agreement offered to HTMI LLC and matures on 31 December 2025. It is unsecured, bears interest at 6% per annum and repayable on the earlier of (i) the maturity date or (ii) repayment from Vista Shipping Pte. Ltd. to HTMI LLC. The carrying value of the loan approximates its fair value as at the balance sheet dates.
The current loan relates to a loan agreement offered to HTMI LLC. It is unsecured, bears interest at 6% per annum and is repayable on demand.
|Equity investments at cost||657,966||1,076,138|
|Receivables from subsidiaries||495,493||506,774|
The receivables from subsidiaries originated from re-organisation of entities in prior years. Accordingly, these receivables are classified within “Subsidiaries” and are stated at amortised cost. These receivables are unsecured, interest-free, and settlement is at the absolute discretion of the subsidiaries. As the Company does not expect these receivables to be settled within the next 12 months, they have been classified as “non-current”.
12. Other payables
|– related corporations||78,592||496,239|
|Loan payable to related corporation||1,076||1,045|
|Accrued operating expenses||247||113|
The carrying amounts of other payables, principally denominated in United States Dollars, approximate their fair values due to the short period to maturity.
The other payables to related corporations are unsecured, interest-free and are repayable on demand.
The loan payable to a related corporation is unsecured, interest-free and has no fixed terms of repayment.
Information about the Company’s exposure to currency and liquidity risks is included in Note 14.
13. Financial guarantee contracts
The Company’s policy is to provide financial guarantees only to the wholly-owned subsidiaries or joint ventures. At 31 December 2021, the Company has issued financial guarantees to certain banks in respect of credit facilities granted to subsidiaries. These bank borrowings amount to USD 1,112.9 million (2020: USD 1,110.5 million) at the balance sheet date.
In addition, the Company and the joint venture partner, CSSC (Hong Kong) Shipping Company Limited, have issued a joint financial guarantee to certain banks in respect of credit facilities granted to the joint venture. Bank borrowings provided to the joint venture amounts to USD 141.6 million (2020: USD 152.5 million) at the balance sheet date. Corporate guarantee given will become due and payable on demand if an event of default occurs.
In addition, the Company issued a limited financial guarantee to a bank in respect of the USD 50.0 million (2020: USD 50.0 million) receivables purchase agreement facility granted to the commercial pools.
14. Financial risk management
Financial risk factors
The Company’s activities expose it to a variety of financial risks. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial performance.
The Board of Directors is responsible for setting the objectives and underlying principles of financial risk management for the Company.
(a) Market risk – Currency risk
The Company’s business operations are not exposed to significant foreign exchange risk as it has no significant regular transactions denominated in foreign currencies.
(b) Credit risk
The Company‘s credit risk is primarily attributable to other receivables, loans receivable from subsidiary and cash and cash equivalents. Other receivables are neither past due nor impaired. The maximum exposure is represented by the carrying value of each financial asset on the balance sheet.
The Company has used a general 12-month approach in assessing the credit risk associated with loans receivable from subsidiary.
The Company performs ongoing credit risk assessment of subsidiaries to make sure they have sufficient resources to make settlement of its liability to the Company. In this regard, the Company is of the opinion that the credit risk of default is low.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Company maintains sufficient cash for its daily operations via short-term cash deposits at banks and funding from a subsidiary. Unless there is a liquidity need, the Company allows the vessel owning and operating subsidiaries to retain their surplus cash from operations.
The table below analyses non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date on an undiscounted basis.
|At 31 December 2021|
|At 31 December 2020|
(d) Capital risk
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholders’ value. In order to maintain or achieve an optimal capital structure, the Company may adjust the amount of dividends paid, return capital to shareholders, obtain new borrowings or sell assets to reduce borrowings.
The Company is not subject to any externally imposed capital requirements for the financial years ended 31 December 2021 and 2020.
(e) Accounting classifications and fair values
The following tables present assets and liabilities measured at fair value and classified by level of the following fair value measurement hierarchy:
(1) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(2) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and
(3) inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
15. Holding corporations
The Company’s ultimate and immediate holding corporation is BW Group Limited, incorporated in Bermuda, which is wholly owned by Sohmen family interests.
16. Related party transactions
Related party information has been disclosed elsewhere in the financial statements.
17. Dividends paid
|Final dividend paid in respect of Q4 2019 of USD 0.0573 per share||–||21,204|
|Interim dividend paid in respect of Q1 2020 of USD 0.1062 per share||–||38,557|
|Interim dividend paid in respect of Q2 2020 of USD 0.1062 per share||–||38,557|
The directors have not declared a dividend for the financial year ended 31 December 2021.
The directors declared a dividend of USD 21.2 million for the financial year ended 31 December 2019. Together with the interim dividends paid for Q1 2020 and Q2 2020 of USD 0.1062 per share in both quarters, the total dividend paid in FY 2020 amounted to USD 0.2708 per share or USD 98.3 million.
Under the Bermuda Companies Act, dividends cannot be paid if there are reasonable grounds for believing that (a) the Company is, or would after the payment be, unable to pay its liabilities as they become due; or (b) the realisable value of the Company’s assets would thereby be less than its liabilities.
The Company has acted in accordance with the provisions of the Bermuda Companies Act when declaring dividends.
18. New or revised accounting standards and interpretations
A number of new standards and interpretations are effective for annual periods beginning after 1 January 2021, and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Company.
There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.
19. Events occurring after balance sheet date
On 16 March 2022, the Company’s shareholdings in the joint venture, H&A Shipping, was sold and transferred to its subsidiary, Hafnia Holding Limited.
The following tables show the 44 modern vessels Hafnia has acquired as part of the CTI and Scorpio Transactions
Chemical – Handy
|Name||Mth-Year built||Shipyard||Capacity (dwt)||Flag||Ownership (%)|
|Navig8 Almandine||Feb-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Amber||Feb-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Amethyst||Mar-15||HMD||38,506||Marshall Islands||BB-in2|
|Hafnia Ametrine||Apr-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Aventurine||Apr-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Andesine||May-15||HMD||38,506||Marshall Islands||BB-in2|
|Hafnia Aronaldo||Jun-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Aquamarine||Jun-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Axinite||Jul-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Amessi||Jul-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Azotic||Sep-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Amazonite||May-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Ammolite||Aug-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Adamite||Sep-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Aragonite||Oct-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Azurite||Aug-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Alabaster||Nov-15||HMD||38,506||Marshall Islands||BB-in2|
|Navig8 Achoroite||Jan-16||HMD||38,506||Marshall Islands||BB-in2|
|TOTAL (18 VESSELS)|
Chemical – Stainless
|Name||Mth-Year built||Shipyard||Capacity (dwt)||Flag||Ownership (%)|
|Hafnia Sirius||Jun-16||Kitanihon||25,000||Marshall Islands||BB-in2|
|Hafnia Sky||Aug-16||Kitanihon||25,000||Marshall Islands||BB-in2|
|Hafnia Spark||Oct-16||Kitanihon||25,000||Marshall Islands||BB-in2|
|Hafnia Stellar||Oct-16||Kitanihon||25,000||Marshall Islands||BB-in2|
|Hafnia Saiph||Jan-17||Kitanihon||25,000||Marshall Islands||BB-in2|
|Hafnia Sceptrum||May-17||Kitanihon||25,000||Marshall Islands||BB-in2|
|Hafnia Spica||May-17||Fukuoka||25,000||Marshall Islands||BB-in2|
|Hafnia Sol||Aug-17||Fukuoka||25,000||Marshall Islands||BB-in2|
|TOTAL (8 VESSELS)|
Chemical – MR
|Name||Mth-Year built||Shipyard||Capacity (dwt)||Flag||Ownership (%)|
|Hafnia Turquoise||Apr-16||STX Shipbuilding||49,000||Marshall Islands||BB-in2|
|Hafnia Topaz||Jul-16||STX Shipbuilding||49,000||Marshall Islands||BB-in2|
|Hafnia Tourmaline||Oct-16||STX Shipbuilding||49,000||Marshall Islands||BB-in2|
|Hafnia Tanzanite||Nov-16||STX Shipbuilding||49,000||Marshall Islands||BB-in2|
|Hafnia Viridian||Dec-15||Wilmar||49,000||Marshall Islands||BB-in2|
|Hafnia Violette||Mar-16||Wilmar||49,000||Marshall Islands||BB-in2|
|TOTAL (6 VESSELS)|
|Name||Mth-Year built||Shipyard||Capacity (dwt)||Flag||Ownership (%)|
|Hafnia Excellence||May-16||STX Shipbuilding||74,613||Singapore||BB-in2|
|Hafnia Excelsior||Jan-16||STX Shipbuilding||74,665||Singapore||BB-in2|
|Hafnia Executive||May-16||STX Shipbuilding||74,431||Singapore||BB-in2|
|Hafnia Exceed||Feb-16||STX Shipbuilding||74,665||Singapore||BB-in2, 6|
|Hafnia Excel||Nov-16||STX Shipbuilding||74,547||Singapore||BB-in2, 6|
|Hafnia Expedite||Jan-16||STX Shipbuilding||74,634||Singapore||BB-in2, 6|
|Hafnia Experience||Mar-16||STX Shipbuilding||74,670||Singapore||BB-in2, 6|
|Hafnia Express||May-16||STX Shipbuilding||74,663||Singapore||BB-in2, 6|
|Hafnia Precision||Oct-16||SPP||74,997||Singapore||BB-in2, 6|
|TOTAL (12 VESSELS)|
1 As at 30 March 2022
2 Bareboat charter-in
3 Time charter-in
4 Owned through the joint venture, Vista Shipping
5 Owned through the joint venture, H&A Shipping
6 These vessels have not been delivered as at 30 March 2022
|Bareboat Charter||An arrangement where charterer has possession and control of the vessel, including the right to appoint the crew|
|Bermuda Companies Act||The Companies Act 1981, as amended, of Bermuda|
|Bunkers||Fuel used on vessels to run its engines|
|BW Group||BW Group Limited|
|BW Tankers||BW Tankers Limited|
|Coating||Coatings applied to prodct tanker tanks, allowing the vessel to load refined oil products|
|Commercial Management||An arrangement to manage a vessel’s commercial operation on behalf of the shipowner|
|Corporate Governance Code||The Norwegian Code of Practice for Corporate Governance last updated 14 October 2021|
|CTI||Chemical Tankers, Inc|
|Demurrage||A charge payble to the shipowner by the charterer of a vessel upon failure in discharging the vessel within the time agreed|
|Dwt||Deadweight ton, a measure of the carrying capacity of a vessel|
|ESG||Environmental, Social and Governance|
|EUR||The lawful currency of the participating member states in the European Union|
|Hafnia Tankers||Hafnia Tankers Limited|
|Handy||Handy size, class of product tankers with cargo carrying capacity between 25,000 dwt and 39,999 dwt|
|Handy Pool||Handy pool for Handy vessels (one of four commercial tanker pools the Group operates as a pool manager for)|
|HSEQ||Health, safety, environment and quality|
|IASB||International Accounting Standards Board|
|ICBCL||ICBC Financial Leasing Co, Ltd|
|IFRS||International Financial Reporting Standards as adopted by the European Union|
|IMO||International Maritime Organisation|
|ISM Code||International Safety Management Code|
|KPI||Key Performance Indicator, a performance measure that evaluates an organisation’s progress towards its long-term goals|
|KPMG||KPMG Singapore LLP|
|LNG||Liquefied Natural Gas carriers|
|Loan-to-value (LTV)||A leverage ratio, measured by borrowings on vessels (net of cash) divided by fair market value of the vessels|
|LPG||Liquefied Petroleum Gas carriers|
|LR Pool||The LR pool for LR1 and LR2 vessels (one of four commercial tanker pools the Group operates as a pool manager for)|
|LR1||Long Range I, class of product tanker with cargo carrying capacity between 55,000 dwt and 84,999 dwt|
|LR2||Long Range II, class of product tanker with cargo carrying capacity between 85,000 dwt and 124,999 dwt|
|LTIP||The long-term incentive plan established by the Board of Directors|
|MR||Medium range, class of product tankers with cargo carrying capacity between 40,000 dwt and 54,999 dwt|
|MR Pool||MR pool for MR vessels (one of four commercial tanker pools the Group operates as a pool manager for)|
|NOK||Norwegian kroner, the lawful currency of Norway|
|Oaktree||Oaktree Capital Management, L.P. Oaktree is a global asset manager specializing in alternative investments|
|OPEC||Organisation of the Petroleum Exporting Countries|
|Oslo Stock Exchange||Oslo Børs, a stock exchange operated by a Norwegian stock exchange being part of Euronext and operated by Oslo Børs ASA|
|P&I Club||Protection & Indemnity club|
|Pool or Pools||Specialised Pool, Handy Pool, MR Pool and LR Pool, collectively|
|Scorpio||Scorpio Tankers Inc|
|SGD||Singapore Dollar, the lawful currency of Singapore|
|Specialised||Specialised, product tankers with cargo carrying capacity below 20,000 dwt|
|Specialised Pool||Specialised pool for specialised vessels (one of four commercial tanker pools the Group operates as a pool manager for)|
|Time Charter||An arrangement where charterer undertakes to hiring of a vessel for a stated period of time but the shipowner is responsible for crewing the vessel|
|Tonne-mile||A measure of one tonne of freight moved over a distance of one mile|
|USD||The lawful currency of the United States|