Segment reporting

The Group distinguishes two operating segments: the operation of crude oil tankers on the international markets (Tankers) and the floating production, storage and offloading operations (FSO/FPSO). These two divisions operate in completely different markets, where in the latter the assets are tailor made or converted for specific long term projects. The tanker market requires a different marketing strategy as this is considered a very volatile market, contract duration is often less than two years and the assets are to a large extent standardized. The segment profit or loss figures and key assets as set out below are presented to the executive committee on at least a quarterly basis to help the key decision makers in evaluating the respective segments. The Chief Operating Decision Maker (CODM) also receives the information per segment based on proportionate consolidation for the joint ventures and not by applying equity accounting. The reconciliation between the figures of all segments combined on the one hand and with the consolidated statements of financial position and profit or loss on the other hand is presented in a separate column Equity-accounted investees.

The Group has one client in the Tankers segment that represented 7% of the Tankers segment total revenue in 2019 (2018: one client which represented 7% and in 2017 one client which represented 10%). All the other clients represent less than 7% of total revenues of the Tankers segment.

The Group has one client in the FSO segment.

The Group's internal organizational and management structure does not distinguish any geographical segments.

Consolidated statement of financial position



(in thousands of USD)	December 31, 2019					December 31, 2018
ASSETS	Tankers *	FSO *	Less: Equity-accounted investees *		Total	Tankers	FSO	Less: Equity-accounted investees		Total
Vessels	3,198,993	131,958	(153,689	)	3,177,262	3,520,067	150,029	(150,029	)	3,520,067
Right-of-use assets	58,908	—	—		58,908	—	—	—		—
Other tangible assets	2,265	—	—		2,265	1,943	—	—		1,943
Intangible assets	39	—	—		39	105	—	—		105
Receivables	52,502	—	18,581		71,083	38,658	—	—		38,658
Investments in equity accounted investees	2,355	—	47,967		50,322	1,915	—	41,267		43,182
Deferred tax assets	2,715	1,116	(1,116	)	2,715	2,255	1,229	(1,229	)	2,255

Total non-current assets	3,317,777	133,074	(88,257	)	3,362,594	3,564,943	151,258	(109,991	)	3,606,210

Total current assets	805,613	10,405	(13,769	)	802,249	521,536	15,784	(16,179	)	521,141

TOTAL ASSETS	4,123,390	143,479	(102,026	)	4,164,843	4,086,479	167,042	(126,170	)	4,127,351


EQUITY and LIABILITIES

Total equity	2,268,490	43,365	—		2,311,855	2,219,648	40,874	1		2,260,523

Bank and other loans	1,173,944	67,962	(67,962	)	1,173,944	1,421,465	97,480	(97,480	)	1,421,465
Other notes	198,571	—	—		198,571	148,166	—	—		148,166
Other borrowings	107,978	—	—		107,978	—	—	—		—
Lease liabilities	43,161	—	—		43,161	—	—	—		—
Other payables	3,809	539	(539	)	3,809	1,451	355	(355	)	1,451
Deferred tax liabilities	—	4,769	(4,769	)	—	—	4,283	(4,283	)	—
Employee benefits	8,094	—	—		8,094	4,336	—	—		4,336
Provisions	1,381	—	—		1,381	4,288	—	—		4,288

Total non-current liabilities	1,536,938	73,270	(73,270	)	1,536,938	1,579,706	102,118	(102,118	)	1,579,706

Total current liabilities	317,962	26,844	(28,756	)	316,050	287,125	24,050	(24,053	)	287,122

TOTAL EQUITY and LIABILITIES	4,123,390	143,479	(102,026	)	4,164,843	4,086,479	167,042	(126,170	)	4,127,351

Consolidated statement of profit or loss



(in thousands of USD)	2019								2018								2017
	Tankers *		FSO *		Less: Equity-accounted investees *		Total		Tankers		FSO		Less: Equity-accounted investees		Total		Tankers		FSO		Less: Equity-accounted investees		Total
Shipping income
Revenue	933,823		49,461		(50,907	)	932,377		600,024		49,155		(49,155	)	600,024		513,399		59,513		(59,544	)	513,368
Gains on disposal of vessels/other tangible assets	14,879		—		—		14,879		19,138		—		—		19,138		36,538		—		—		36,538
Other operating income	10,075		3,351		(3,332	)	10,094		4,775		72		(72	)	4,775		4,902		234		(234	)	4,902
Total shipping income	958,777		52,812		(54,239	)	957,350		623,937		49,227		(49,227	)	623,937		554,839		59,747		(59,778	)	554,808

Operating expenses
Voyage expenses and commissions	(145,047	)	2		364		(144,681	)	(141,416	)	(1	)	1		(141,416	)	(62,035	)	(304	)	304		(62,035	)
Vessel operating expenses	(212,010	)	(12,657	)	12,872		(211,795	)	(185,792	)	(9,637	)	9,637		(185,792	)	(150,391	)	(9,157	)	9,121		(150,427	)
Charter hire expenses	(604	)	—		—		(604	)	(31,114	)	—		—		(31,114	)	(31,173	)	—		—		(31,173	)
Losses on disposal of vessels/other tangible assets	(75	)	—		—		(75	)	(273	)	—		—		(273	)	(21,027	)	—		—		(21,027	)
Impairment on non-current assets held for sale	—		—		—		—		(2,995	)	—		—		(2,995	)	—		—		—		—
Depreciation tangible assets	(338,036	)	(18,071	)	18,461		(337,646	)	(270,582	)	(18,071	)	18,071		(270,582	)	(229,777	)	(18,071	)	18,071		(229,777	)
Depreciation intangible assets	(56	)	—		—		(56	)	(111	)	—		—		(111	)	(95	)	—		—		(95	)
General and administrative expenses	(66,958	)	(283	)	351		(66,890	)	(66,235	)	(425	)	428		(66,232	)	(46,871	)	(30	)	33		(46,868	)
Total operating expenses	(762,786	)	(31,009	)	32,048		(761,747	)	(698,518	)	(28,134	)	28,137		(698,515	)	(541,369	)	(27,562	)	27,529		(541,402	)

RESULT FROM OPERATING ACTIVITIES	195,991		21,803		(22,191	)	195,603		(74,581	)	21,093		(21,090	)	(74,578	)	13,470		32,185		(32,249	)	13,406

Finance income	20,399		147		26		20,572		15,023		160		(160	)	15,023		7,267		197		(198	)	7,266
Finance expenses	(119,809	)	(4,558	)	4,564		(119,803	)	(89,412	)	(3,795	)	3,795		(89,412	)	(50,730	)	(1,026	)	1,027		(50,729	)
Net finance expenses	(99,410	)	(4,411	)	4,590		(99,231	)	(74,389	)	(3,635	)	3,635		(74,389	)	(43,463	)	(829	)	829		(43,463	)

Gain on bargain purchase	—		—		—		—		23,059		—		—		23,059		—		—		—		—
Share of profit (loss) of equity accounted investees (net of income tax)	440		—		16,020		16,460		220		—		15,856		16,076		150		—		29,932		30,082

Profit (loss) before income tax	97,021		17,392		(1,581	)	112,832		(125,691	)	17,458		(1,599	)	(109,832	)	(29,843	)	31,356		(1,488	)	25

Income tax expense	(602	)	(1,581	)	1,581		(602	)	(238	)	(1,599	)	1,599		(238	)	1,358		(1,488	)	1,488		1,358




Profit (loss) for the period	96,418	15,812	—	112,230	(125,929	)	15,859	—	(110,070	)	(28,485	)	29,868	—	1,383

Attributable to:
Owners of the company	96,418	15,812	—	112,230	(125,929	)	15,859	—	(110,070	)	(28,485	)	29,868	—	1,383

Summarized consolidated statement of cash flows



(in thousands of USD)	2019								2018								2017
	Tankers *		FSO *		Less: Equity-accounted investees *		Total		Tankers		FSO		Less: Equity-accounted investees		Total		Tankers		FSO		Less: Equity-accounted investees		Total
Net cash from (used in) operating activities	259,109		41,278		(28,396	)	271,991		843		40,672		(40,674	)	841		211,310		49,684		(49,698	)	211,295
Net cash from (used in) investing activities	44,211		—		(461	)	43,750		190,042		—		—		190,042		(40,243	)	—		1		(40,242	)
Net cash from (used in) financing activities	(178,587	)	(41,491	)	28,891		(191,187	)	(160,165	)	(42,164	)	42,164		(160,165	)	(234,921	)	(78,421	)	78,367		(234,976	)

Capital expenditure	(30,173	)	—		22,120		(8,053	)	(238,065	)	—		—		(238,065	)	(177,901	)	—		—		(177,901	)

* The Group initially applied IFRS 16 at 1 January 2019, which requires the recognition of right-of-use assets and lease liabilities for lease contracts that were previously classified as operating leases (see Note 1.5). As a result, the Group recognized $87.6 million of right-of-use assets and $105.3 million of liabilities from those lease contracts. The assets and liabilities are included in the Tankers and FSO segments as at 31 December 2019. The Group has applied IFRS 16 using the modified retrospective approach, under which comparative information is not restated (see Note 1.5).