INVESTMENTS IN ASSOCIATED COMPANIES

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

As at June 30, 2023 and December 31, 2022, we had the following participation in investments that are recorded using the equity method:


(% of ownership)	2023		2022
TFG Marine Pte Ltd ("TFG Marine")	10.00	%	10.00	%
SwissMarine Pte. Ltd. ("SwissMarine")	15.92	%	16.40	%
United Freight Carriers LLC ("UFC")	50.00	%	50.00	%

Following the termination of the pool agreement, in February 2022 our 25% share in CCL was sold for $17.5 thousands.

Movements in equity method investments for the six months ended June 30, 2023 are summarized as follows:


(in thousands of $)	SwissMarine	Other	Totals
Balance as of December 31, 2022	51,437	13,963	65,400
Distributions received from associated companies	(7,803)	(9,065)	(16,868)
Loss on disposal of equity method investments	(163)	—	(163)
Share of income	5,322	4,708	10,030
Balance as of June 30, 2023	48,793	9,606	58,399

We have an equity investment of 15.92% in SwissMarine, a dry bulk freight operator. We account for this investment under the equity method as we determined that we have a significant influence over the investee. Our ownership in SwissMarine was diluted in March 2023 from 16.4% to 15.92%. In 2019 we have provided a $10.7 million subordinated shareholder loan with a five-year term to SwissMarine, which was partially repaid by SwissMarine in 2020 and remaining balance of subordinated shareholder loan of $5.35 million was fully repaid by SwissMarine in 2022. Further, in 2023, we received dividends from SwissMarine of $7.8 million.

In January 2020, we entered into a joint venture agreement with Frontline plc (formerly Frontline Ltd.) ("Frontline") and its subsidiary Bandama Investments Ltd and Trafigura Pte. Ltd. ("Trafigura") to establish TFG Marine, a leading global supplier of marine fuels. As a result, we acquired a 10% interest in TFG Marine. We have also provided a shareholder loan of $1.0 million to TFG Marine. In 2020, the shareholder loan in the total amount of $75,000 was converted to equity of TFG Marine, reducing the balance of the loan to $0.9 million. The loan had a five-year term and bears interest of LIBOR plus a margin of 7%. In February 2023, TFG Marine fully repaid the outstanding loan of $0.9 million, in addition paid dividends of $4.9 million related to 2022. We account for this investment under the equity method as we determined that we have a significant influence over the investee.

We also have an equity investment of 50% of the shares in UFC, a dry cargo vessel operator and logistics service provider. We account for this investment under the equity method, and the book value of the investment amounted to $2.2 million as of June 30, 2023. Further, in 2023, we received dividends from UFC of $4.2 million.