20-F/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 20-F/A

Amendment No. 1

 (Mark One)

[  ]	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2017
OR
[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________________ to _________________
OR
[ ]	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	Date of event requiring this shell company report:

Commission file number: 001-38294

TORM plc

(Exact name of Registrant as specified in its charter)

(Translation of Registrant's name into English)

England and Wales

(Jurisdiction of incorporation or organization)

Birchin Court, 20 Birchin Lane, London, EC3V 9DU, United Kingdom

(Address of principal executive offices)

Jacob Meldgaard, Chief Executive Officer, Tuborg Havnevej 18, DK-2900 Hellerup, Denmark,

+45 39 17 92 00

(Name, Telephone, E-mail and/or Facsimile, and address of Company Contact Person)

Securities registered or to be registered pursuant to section 12(b) of the Act.

Title of each class		Name of each exchange on which registered
Class A common shares, par value $0.01 per	share	Nasdaq Stock Market LLC

Securities registered or to be registered pursuant to section 12(g) of the Act.

NONE

(Title of class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

NONE

(Title of class)

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: As of December 31, 2017 there were 61,985,975 of the Registrant's Class A common shares outstanding.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐ No ☐

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth Company.  See the definitions of "large accelerated filer," "accelerated filer" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer  ☐
Non-accelerated filer   ☒	Emerging growth company ☒
(Do not check if a smaller reporting company)

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.     ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

[  ]	U.S. GAAP
[X]	International Financial Reporting Standards as issued by the international Accounting Standards Board
[  ]	Other

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:

Item 17 ☐  Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

EXPLANATORY NOTE

TORM plc (the "Company") is filing this Amendment No. 1 (the "Amendment") to the Company's Annual Report on Form 20-F for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 8, 2018 (the "Original Filing"), solely to file Exhibit 101 to the Form 20-F in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the financial statements and related notes from the Form 20-F formatted in eXtensible Business Reporting Language ("XBRL") and amends "Item 19. Exhibits" to reflect the filing of Exhibit 101.

This Amendment does not modify or update any other items or disclosures contained in the Original Filing and does not reflect events occurring after the date of the Original Filing. This Amendment consists solely of the cover page, this explanatory note, the exhibit index and the exhibits filed herewith.

Item 19.          List of Exhibits

1.1	Memorandum and Articles of Association(1)
2.1	Form of Class A Common Share Certificate(1)
2.2	B Share Minority Trust Deed, dated May 30, 2016(1)
2.3	Equity Warrant Instrument, dated March 15, 2016(1)
4.1	The Working Capital Facility, dated July 13, 2015(1)
4.2	Term Facility 1, dated July 13, 2015(1)
4.3	DSF Facility, dated September 20, 2017(1)
4.4	Registration Rights Agreement, dated April 14, 2016(1)
4.5	CEXIM Facility, dated July 8, 2016(1)
4.6	Term Facility 2, dated January 6, 2017(1)
4.7	TORM plc 2017 Management Long-Term Incentive Plan(1)
4.8	ING Facility, dated September 8, 2017(1)
4.9	Amendment and Waiver Letter to Working Capital Facility and Term Facility 1, dated December 21, 2015(1)
4.10	Amendment and Waiver Letter to Working Capital Facility and Term Facility 1, dated August 23, 2016(1)
4.11	Term Sheet for ABN AMRO Facility, dated January 19, 2018*
8.1	List of Subsidiaries*
11.1	TORM's Business Principles*
12.1	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer*
12.2	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer*
13.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
13.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Schema Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Schema Definition Linkbase
101.LAB	XBRL Taxonomy Extension Schema Label Linkbase
101.PRE	XBRL Taxonomy Extension Schema Presentation Linkbase

*Previously filed with the Original Filing.

⁽¹⁾ These exhibits are incorporated by reference to the Company's Registration Statement on Form 20-F (Registration No. 001-38294), as amended, filed with the SEC on November 24, 2017.

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and has duly caused and authorized the undersigned to sign this Amendment No. 1 to its Annual Report on its behalf.

TORM PLC
By:	/s/ Jacob Meldgaard
	Name: Jacob Meldgaard
	Title: Executive Director and Principal Executive Officer

Date: April 9, 2018

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DOCUMENT AND ENTITY INFORMATION	12 Months Ended
	Dec. 31, 2017 shares
Document And Entity Information [Abstract]
Entity Registrant Name	TORM plc
Entity Central Index Key	0001655891
Trading Symbol	trmd
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding	0
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

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CONSOLIDATED INCOME STATEMENT - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Profit or loss [abstract]
Revenue	$ 656,991	$ 680,143	$ 540,404
Port expenses, bunkers and commissions	(259,888)	(221,859)	(169,646)
Charter hire	(8,517)	(21,498)	(12,023)
Operating expenses (Note 4)	(188,374)	(195,249)	(122,867)
Profit from sale of vessels (Note 23)	2,762
Administrative expenses (Note 4, 5)	(45,007)	(41,406)	(19,486)
Other operating expenses	(418)	(304)	(6,299)
Share of profit/(loss) from joint ventures	3	176	202
Impairment losses on tangible and intangible assets (Note 6, 7, 8, 23)	(3,572)	(185,000)
Depreciation (Note 7)	(114,451)	(122,215)	(67,327)
Operating profit/(loss) (EBIT)	39,529	(107,212)	142,958
Financial income (Note 9)	4,255	2,814	992
Financial expenses (Note 9)	(40,601)	(37,333)	(16,926)
Profit/(loss) before tax	3,184	(141,731)	127,024
Tax (Note 12)	(777)	(760)	(1,041)
Net profit/(loss) for the year	$ 2,407	$ (142,491)	$ 125,983
EARNINGS PER SHARE
Basic earnings/(loss) per share (USD) (Note 26)	$ 0.04	$ (2.3)	$ 2.4
Diluted earnings/(loss) per share (USD) (Note 26)	$ 0.04	$ (2.3)	$ 2.4

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017		Dec. 31, 2016	Dec. 31, 2015
Statement of comprehensive income [abstract]
Net profit/(loss) for the year		$ 2,407		$ (142,491)	$ 125,983
Items that may be reclassified to profit or loss:
Exchange rate adjustment arising from translation of entities using a functional currency different from USD		360		(240)	160
Fair value adjustment on hedging instruments		9,181		(2,675)	1,067
Fair value adjustment on hedging instruments transferred to income statement		(2,262)		1,665	333
Other comprehensive income/(loss) after tax	[1]	7,279	[2]	(1,250)	1,560
Total comprehensive income/(loss) for the year		$ 9,686		$ (143,741)	$ 127,543

[1] No income tax was incurred relating to other comprehensive income/(loss) items.

[2] Please refer to "Consolidated Statement of Comprehensive Income".

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CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Tangible fixed assets
Vessels and capitalized dry-docking (Note 7,8,16)	$ 1,294,472	$ 1,343,778
Prepayments on vessels (Note 7)	88,378	44,036
Other plant and operating equipment (Note 7)	1,945	1,836
Total tangible fixed assets	1,384,795	1,389,650
Financial assets
Investments in joint ventures	324	322
Other investments	5	4
Total financial assets	329	326
Total non-current assets	1,385,124	1,389,976
CURRENT ASSETS
Bunkers	33,204	31,616
Freight receivables (Note 10)	71,281	62,533
Other receivables (Note 11)	11,787	8,134
Prepayments	4,422	3,024
Cash and cash equivalents	134,207	75,971
Current assets, excluding assets held-for-sale	254,901	181,278
Assets held-for-sale (Note 23)	6,550
Total current assets	261,451	181,278
TOTAL ASSETS	1,646,575	1,571,254
EQUITY
Common shares (Note 13)	623	623
Treasury shares (Note 13)	(2,887)	(2,887)
Hedging reserves	7,309	390
Translation reserves	280	(80)
Retained profit	785,725	782,532
Total equity	791,050	780,578
NON-CURRENT LIABILITIES
Deferred tax liability (Note 12)	44,906	44,967
Mortgage debt and bank loans (Note 2,15,16,18)	629,198	593,912
Finance lease liabilities (Note 18,23)	25,294
Total non-current liabilities	699,398	638,879
CURRENT LIABILITIES
Mortgage debt and bank loans (Note 2,15,16,18)	91,720	75,652
Finance lease liabilities (Note 18,23)	2,899	13,624
Trade payables (Note 18)	26,150	28,498
Current tax liabilities	1,393	773
Other liabilities (Note 14,18)	33,822	33,055
Deferred income	143	195
Total current liabilities	156,127	151,797
Total liabilities	855,525	790,676
TOTAL EQUITY AND LIABILITIES	$ 1,646,575	$ 1,571,254

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands		Common shares	Treasury shares 3)		Hedging reserves		Translation reserves		Retained profit		Total
Changes in Stockholders' Equity [Roll Forward]
Balance as of 1 January 2015, as shown in the financial statements of TORM A/S		$ 87,986							$ 381,528		$ 469,514
Effect as of 1 January 2015 of the Exchange Offer	[1]	(87,590)							87,590
Equity at Dec. 31, 2014		396							469,118		469,514
Comprehensive income/loss for the year:
Net profit/(loss) for the year									125,983		125,983
Other comprehensive income/(loss) for the year					$ 1,400		$ 160				1,560	[2]
Total comprehensive income/(loss) for the year					1,400		160		125,983		127,543
Shareholders' contribution									14,040		14,040
Reverse acquisition of TORM A/S		242							367,536		367,778
Transaction costs share issue									(2,723)		(2,723)
Acquisition of treasury shares, cost			$ (176)	[3]							(176)
Total changes in equity 2015, 2016, 2017		242	(176)	[3]	1,400		160		504,836		506,462
Equity at Dec. 31, 2015		638	(176)	[3]	1,400		160		973,954		975,976
Comprehensive income/loss for the year:
Net profit/(loss) for the year									(142,491)		(142,491)
Other comprehensive income/(loss) for the year					(1,010)		(240)				(1,250)	[2]
Total comprehensive income/(loss) for the year					(1,010)		(240)		(142,491)		(143,741)
Acquisition of outstanding shares in TORM A/S, cost	[4]	(15)	176						(19,396)		(19,235)
Acquisition of treasury shares, cost			(2,887)	[3]							(2,887)
Corporate Reorganization TORM plc									(6,564)		(6,564)
Share-based compensation									2,029		2,029
Dividend paid									(25,000)		(25,000)
Total changes in equity 2015, 2016, 2017		(15)	(2,711)	[3]	(1,010)		(240)		(191,422)		(195,398)
Equity at Dec. 31, 2016		623	(2,887)	[3]	390		(80)		782,532		780,578
Comprehensive income/loss for the year:
Net profit/(loss) for the year									2,407		2,407
Other comprehensive income/(loss) for the year					6,919		360				7,279	[2],[5]
Total comprehensive income/(loss) for the year					6,919	[5]	360	[5]	2,407	[5]	9,686
Acquisition of treasury shares, cost											0
Corporate Reorganization TORM plc									146		146
Share-based compensation									1,880		1,880
Dividend paid									(1,240)		(1,240)
Total changes in equity 2015, 2016, 2017					6,919		360		3,193		10,472
Equity at Dec. 31, 2017		$ 623	$ (2,887)	[3]	$ 7,309		$ 280		$ 785,725		$ 791,050

[1] In connection with the Exchange Offer of 15 April 2016, the common shares were adjusted to reflect those of TORM plc. The adjustment with respect to the common shares reflects the change in currency of the shares changed from DKK to USD and the reduction in the nominal value of each share was reduced from DKK 15 each to USD 0.01 each.

[2] No income tax was incurred relating to other comprehensive income/(loss) items.

[3] Please refer to note 13 for further information on treasury shares.

[4] Relates to the squeeze-out of remaining minority shareholders in TORM A/S.

[5] Please refer to "Consolidated Statement of Comprehensive Income".

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - Apr. 15, 2016	$ / shares	kr / shares
Statement of changes in equity [abstract]
Par value of common shares (in DKK) | (per share)	$ 0.01	kr 15

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CONSOLIDATED CASH FLOW STATEMENT - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES
Net profit/(loss) for the year	$ 2,407	$ (142,491)	$ 125,983
Adjustments:
Reversal of profit from sale of vessels (Note 23)	(2,762)
Reversal of depreciation (Note 7)	114,451	122,215	67,327
Reversal of impairment loss on tangible and intangible assets (Note 6, 7, 8)	3,572	185,000
Reversal of share of profit/(loss) from joint ventures	(3)	(176)	(202)
Reversal of financial income (Note 9)	(4,255)	(2,814)	(992)
Reversal of financial expenses (Note 9)	40,601	37,333	16,926
Reversal of tax expenses (Note 12)	777	760	1,041
Reversal of other non-cash movements (Note 24)	3,696	(7,114)	(874)
Dividends received from joint ventures		188	200
Interest received and realized exchange gains	1,641	2,735	624
Interest paid and realized exchange losses	(36,698)	(31,385)	(12,364)
Income taxes paid	(586)	(1,430)	(584)
Change in bunkers, receivables and payables, etc. (Note 24)	(12,996)	8,322	16,870
Net cash flow from operating activities	109,845	171,143	213,955
CASH FLOW FROM INVESTING ACTIVITIES
Investment in tangible fixed assets	(145,112)	(119,408)	(253,964)
Cash from business combination			77,544
Sale of tangible fixed assets (Note 23)	31,382		17,640
Net cash flow from investing activities	(113,730)	(119,408)	(158,780)
CASH FLOW FROM FINANCING ACTIVITIES
Borrowing, mortgage debt	175,377	49,256	93,100
Borrowing, sale and leaseback transactions	30,195
Repayment/redemption, mortgage debt	(125,487)	(142,740)	(29,214)
Repayment/redemption, finance lease liabilities	(16,724)	(3,410)
Dividend paid	(1,240)	(25,000)
Acquisition of outstanding shares in TORM A/S		(19,241)
Shareholders' contribution			14,040
Transaction costs share issue			(2,723)
Purchase/disposal of treasury shares		(2,887)	(176)
Net cash flow from financing activities	62,121	(144,022)	75,027
Net cash flow from operating, investing and financing activities	58,236	(92,287)	130,202
Cash and cash equivalents as of 1 January	75,971	168,258	38,056
Cash and cash equivalents as of 31 December	$ 134,207	$ 75,971	$ 168,258

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ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

12 Months Ended

Dec. 31, 2017

Disclosure Of Accounting Policies Critical Accounting Estimates And Judgements [Abstract]

ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

NOTE 1 – ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

OVERVIEW OF BUSINESS

TORM plc is a shipping company, incorporated in the United Kingdom, which owns and operates a fleet of product tankers. Unless otherwise indicated, the terms "TORM plc," "we," "us," "our," the "Company" and the "Group" refer to TORM plc and its consolidated subsidiaries, which includes TORM A/S and its consolidated subsidiaries following the closing of the Exchange Offer (defined below). When used herein to describe events prior to the closing of the Exchange Offer, the terms "TORM A/S," "we," "us," "our," the "Company" and the "Group" refer to TORM A/S and its consolidated subsidiaries before such time. References to "Former TORM A/S" refer to TORM A/S and its consolidated subsidiaries prior to the Combination (defined below).

On March 27, 2015, TORM A/S, a company organized under the laws of Denmark, Oaktree Capital Management L.P., or Oaktree, and certain of TORM A/S' lenders entered into a restructuring agreement to recapitalize TORM A/S. The agreement included a mandatory and an optional debt cancellation of a part of TORM A/S' debt and required that OCM Njord Holdings S.à r.l., or Njord Luxco, a subsidiary of Oaktree, contribute OCM (Gibraltar) Njord Midco Ltd., or Njord, to TORM A/S in exchange for shares in TORM A/S. We refer to this transaction as the "Combination." The Combination was completed on July 13, 2015, the date on which Njord was transferred to TORM A/S, and comprised a part of a series of transactions, discussed more fully herein, which together we refer to as the "2015 Restructuring." We refer to the consummation of the 2015 Restructuring on July 13, 2015 as the Restructuring Completion Date.

The Combination was accounted for as a reverse acquisition, based on guidance in IFRS 3 "Business Combinations", under the acquisition method of accounting, with Njord considered to be the accounting acquirer of TORM A/S and the continuing reporting entity, though TORM A/S continued as the legal entity (we refer to Njord and Former TORM A/S, including their respective subsidiaries, together as the "Combined Group"). This was largely due to the fact that following the acquisition, Njord Luxco held 62% of the voting rights in TORM A/S (excluding the additional voting rights associated with the TORM A/S C-share, which relates to election and dismissal of members of our Board of Directors and certain amendments to our Articles of Association), was exposed to variable returns from involvement with the Combined Group and had the ability to use its control to affect the amount of the Group's return.

On 15 April 2016, a new corporate structure was established, whereby TORM plc effectively acquired all of the outstanding A-shares of TORM A/S (referred to herein as Danish A-shares) in exchange for TORM plc's securities. A total of 97.6% of TORM A/S' shareholders exchanged their shareholdings to TORM plc, and TORM plc acquired the remaining 2.4% shares from TORM A/S' minority shareholders in a statutory squeeze-out transaction under the Danish Companies Act for a total cash consideration of USD 19.2m.

In addition and in connection with the exchange of the Danish A-shares, all TORM A/S warrant holders exchanged their warrants on a one-for-one basis for warrants of TORM plc. We refer to these transactions collectively as the "Exchange Offer." On 19 April 2016, upon the closing of the Exchange Offer, TORM plc became the Group's publicly-held parent company incorporated under the laws of England and Wales. We refer to this as the "Redomiciliation". The Redomiciliation was accounted for as an internal reorganization of entities under common control and, therefore, the assets and liabilities of TORM A/S were accounted for at their historical cost basis and not revalued in the transaction.

The Corporate Reorganization is accounted for as a capital restructuring, where the assets and liabilities of TORM A/S and its subsidiaries are accounted for at their historical cost basis and not revalued at market value.

The consolidated financial statements for the TORM Group are presented in the legal name of TORM plc, but are a continuation of the financial statements of TORM A/S with a retroactive adjustment of the legal capital of the legal parent (TORM plc). The consolidated financial results reflect the activities for TORM A/S only for 2015 and the period from 1 January 2016 until 15 April 2016, whereas the remaining period of 2016 and all of 2017 reflects the combined activity of TORM plc and TORM A/S.

The impact on equity in 2016 of the Corporate Reorganization reflected the accumulated deficit of TORM plc at that date and the squeeze-out transaction impact of USD 19.2m.

TORM plc is listed on the stock exchange NASDAQ Copenhagen, Denmark and on NASDAQ New York, United States.

BASIS OF PREPARATION

The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the EU and as issued by the International Accounting Standards Board ("IASB").

The consolidated financial statements have been prepared on a going concern basis and under the historical cost convention except where fair value accounting is specifically required by IFRS.

The functional currency is USD, and the Company applies USD as presentation currency in the preparation of the consolidated financial statements.

GOING CONCERN

As of 31 December 2017, TORM's cash position was USD 134m, TORM's net debt was USD 620m (of which USD 271m was undrawn) and the net interest-bearing debt loan-to-value ratio was 55.8%. In January 2018 the Group's financial position was further strengthened via an equity raise of USD 100m. Further information on the Group's objectives and policies for managing its capital, its financial risk management objectives and its exposure to credit and liquidity risk can be found in note 20 to the financial statements.

The Group monitors its funding position throughout the year to ensure that it has access to sufficient funds to meet its forecast cash requirements, including newbuilding and loan commitments, and to monitor compliance with the financial covenants within its loan facilities, details of which are in note 2 to the financial statements. Sensitivity calculations are run to reflect different scenarios including, but not limited to, future freight rates and vessel valuations in order to identify risks to future liquidity and covenant compliance and to enable Management to take corrective actions, if required.

The Board of Directors has considered the Group's cash flow forecasts and the expected compliance with the Company's financial covenants for a period of not less than 12 months from the date of approval of these financial statements. Based on this review, the Board of Directors has a reasonable expectation that, taking into account reasonably possible changes in trading performance and vessel valuations, the Group will be able to continue in operational existence and comply with its financial covenants for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis in preparing its financial statements.

ADOPTION OF NEW OR AMENDED IFRSS

TORM has implemented the following standard amendments issued by IASB and adopted by the EU and the interpretations in the consolidated financial statements for 2017:

·          Amendments to IAS 7: "Disclosure initiative"

·          Amendments to IAS 12 "Recognition of Deferred Tax Assets for Unrealised Losses"

·          Amendments to IFRS 12 included in Annual Improvements to IFRS Standards 2014-2016 Cycle

The implementation of the standard amendments and improvements had no significant impact on the Group's financial statements.

ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET ADOPTED

IASB has issued a number of new or amended accounting standards (IFRS) and interpretations (IFRIC) that have not yet come into effect:

·          Amendments to IFRS 2 "Classification and Measurement of Share-based Payment Transactions". Effective date is 1 January 2018. The Company has evaluated the impact of this standard on the financial statements as insignificant.

·          IFRS 9 "Financial Instruments". The effective date of the standard is 1 January 2018. The standard and subsequent amendments will substantially change the classification and measurement of financial instruments and hedging requirements. Furthermore, IFRS 9 changes the recognition of credit losses from "incurred losses" to "expected losses". TORM has assessed the new requirement and concludes that the effect of the change will be insignificant, as TORM historically has had very limited actual incurred losses on receivables. The changes in the standard regarding classification will not change the measurement of the majority of financial assets from amortized cost except from derivatives that also under IFRS 9 will be measured at fair value through profit & loss unless cash flow hedge accounting is applied.

·          IFRS 15 "Revenue from Contracts with Customers". The effective date is 1 January 2018. The standard will change the recognition pattern of revenue. The change in revenue recognition will go from recognizing from "discharge-to-discharge" to "load-to-discharge". The cumulative effect of adopting the standard as at 1 January 2018 was a reduction in total equity of USD 1m. As this is not considered material the impact will be reflected in the results of the group for the year ending 31 December 2018 and prior periods will not be restated.

·          IFRS 16 "Leases". The effective date is 1 January 2019. The standard will change the recognition of leases. The standard is not expected to have a material impact on the TORM Group as TORM mainly operates owned vessels. It will however result in a right of use asset and related lease liability being recorded for certain (mostly property related) leases which are currently treated as operating leases. It will also result in a reclassification of costs associated with these operating leases from "Administrative expenses" (operating leases) to either "Depreciations" or "Financial expenses".

ACCOUNTING POLICIES

Consolidation principles

The consolidated financial statements comprise the financial statements of the Parent Company, TORM plc, and entities controlled by the Company and its subsidiaries. Control is achieved when the Company:

·          has the power over the investee; and

·          is exposed, or has the right to variable returns from involvement with the investee; and

·          has the ability to use its power to affect its returns

The Company should reassess whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities unilaterally. The Company considers all facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

·          the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders

·          potential voting rights held by the Company, other vote holders or other parties

·          rights arising from other contractual arrangements, and

·          any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time when decisions need to be made, including voting pattern at previous shareholders' meetings

Entities in which the Group exercises significant but not controlling influence are regarded as associated companies and are accounted for using the equity method.

Companies which are managed jointly by agreement with one or more companies and therefore are subject to joint control (joint ventures) are accounted for using the equity method.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ends when the Company loses control over the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated income statement and other comprehensive income from the date on which the Company obtains control until the date when the Company loses control over the subsidiary.

The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company, its subsidiaries and the Company's share of the income statement and balance sheet of joint operations by combining items of a uniform nature and eliminating intercompany transactions, balances and shareholdings as well as realized and unrealized gains and losses on transactions between the consolidated entities. The financial statements used for consolidation purposes are prepared in accordance with the Company's accounting policies.

The consolidated financial statements following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but as a continuation of the financial statements of the legal subsidiary (accounting acquirer). The accounting acquirer's legal capital is adjusted retrospectively to reflect the legal capital of the accounting acquiree. Comparative information is adjusted accordingly.

Business combinations

Newly acquired or formed entities are recognized in the consolidated financial statements from the date of acquisition or formation. The date of acquisition is the date on which control over the entity is effectively transferred.

Business combinations are accounted for by applying the purchase method, whereby the acquired entities' identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. The tax effect of the revaluation activities is also taken into account. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the amount of that adjustment is included in the cost of the combination if the event is probable and the adjustment can be measured reliably. Costs of issuing debt or equity instruments in connection with a business combination are accounted for together with the debt or equity issuance. All other costs associated with the acquisition are expensed in the income statement.

In reverse acquisitions the purchase price of a business combination is measured as the fair value of the consideration agreed upon. The purchase price in a reverse acquisition is calculated as the fair value of the interest in the accounting acquirer that the existing shareholders of the accounting acquiree would have received, had the business combination not been a reverse acquisition.

The excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities is recognized as goodwill under intangible assets and is tested for impairment at least once every year. Upon acquisition, goodwill is allocated to the cash generating units, which subsequently form the basis for the impairment test. If the fair value of the acquired assets, liabilities and contingent liabilities exceeds the cost of the business combination, the identification of assets and liabilities and the processes of measuring the fair value of the assets and liabilities and the cost of the business combination are reassessed. If the fair value of the business combination continues to exceed the cost, the resulting gain is recognized in the income statement.

Foreign currencies

The functional currency of all significant entities, including subsidiaries and associated companies, is United State dollars (USD), because the Company's vessels operate in international shipping markets, in which income and expenses are settled in USD, and because the Companies most significant assets and liabilities in the form of vessels and related liabilities are denominated in USD. Transactions in currencies other than the functional currency are translated into the functional currency at the transaction date. Cash, receivables and payables and other monetary items denominated in currencies other than the functional currency are translated into the functional currency at the exchange rate at the balance sheet date. Gains or losses due to differences between the exchange rate at the transaction date and the exchange rate at the settlement date or the balance sheet date are recognized in the income statement under "Financial income" and "Financial expenses".

An exchange rate gain or loss relating to a non-monetary item carried at fair value is recognized in the same line as the fair value adjustment.

The reporting currency of the Company is USD. Upon recognition of entities with functional currencies other than USD, the financial statements are translated into USD. Income statement items are translated into USD at the average exchange rates for the year, whereas balance sheet items are translated at the exchange rates as of the balance sheet date. Exchange differences arising from the translation of financial statements into USD are recognized as a separate component through other comprehensive income. On the disposal of an entity, the cumulative amount of the exchange differences recognized in the separate component of equity relating to that entity is transferred to the income statement as part of the gain or loss on disposal.

Derivative financial instruments

Derivative financial instruments, primarily forward currency exchange contracts, forward freight agreements and forward contracts regarding bunker purchases, are entered to hedge future committed or anticipated transactions. TORM applies hedge accounting under the specific rules on cash flow hedges when appropriate.

Derivative financial instruments are initially recognized in the balance sheet at fair value at the date when the derivative contract is entered into and are subsequently measured at their fair value as other receivables or other liabilities, respectively.

Changes in the fair value of derivative financial instruments that are designated as cash flow hedges and deemed to be effective are recognized directly in "Other comprehensive income". When the hedged transaction is recognized in the income statement, the cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement and included in the same line as the hedged transaction. However, when the hedged transaction results in the recognition of a fixed asset, the gains and losses previously accumulated in "Other comprehensive income" are transferred from "Other comprehensive income" and included in the initial measurement of the cost of the fixed asset. Changes in the fair value of a portion of a hedge deemed to be ineffective are recognized in the income statement.

Changes in the fair value of derivative financial instruments that are not designated as hedges are recognized in the income statement. While effectively reducing cash flow risk in accordance with the Company's risk management policy, interest rate swaps with cap features and certain forward freight agreements and forward contracts regarding bunker purchases do not qualify for hedge accounting. Changes in fair value of these derivate financial instruments are therefore recognized in the income statement under "Financial income" or "Financial expenses" for interest rate swaps with cap features, under "Revenue" for forward freight agreements and under "Port expenses, bunkers and commissions" for forward bunker contracts.

Segment information

In 2015, TORM consisted of two business segments: The Tanker Segment and Bulk Segment. Due to divestment of the Bulk Segment during 2015, only the Tanker Segment remains for 2016 and 2017.

The segmentation is based on the Group's internal management and reporting structure. In the Tanker Segment, the services provided primarily comprise transportation of refined oil products such as gasoline, jet fuel and naphtha.

The Group has only one geographical segment, because the Company considers the global market as a whole, and as the individual vessels are not limited to specific parts of the world. Furthermore, the internal management reporting does not provide such information. Consequently, it is not possible to provide geographical segment information on revenue from external customers or non-current segment assets.

The segment income statement comprises income and expenses which are directly attributable to the segment. Not allocated items primarily comprise assets and liabilities as well as revenues and expenses relating to the Company's administrative functions and investment activities, including cash and bank balances, interest-bearing debt, income tax, deferred tax, etc.

The accounting policies applied for the segments regarding recognition and measurement are consistent with the policies for TORM as described in this note.

Employee benefits

Wages, salaries, social security contributions, holiday and sick leave, bonuses and other monetary and non-monetary benefits are recognized in the year in which the employees render the associated services. Please also refer to the accounting policy for share-based payment.

Pension plans

The Group has entered into defined contribution plans only. Pension costs related to defined contribution plans are recorded in the income statement in the year to which they relate.

Leases

Agreements to charter in vessels and to lease other plant and operating equipment for which TORM substantially has all the risks and rewards of ownership are recognized in the balance sheet as finance leases. Lease assets are measured at the lower of fair value and the present value of minimum lease payments determined in the leases.

For the purpose of calculating the present value, the interest rate implicit in the lease or an incremental borrowing rate is used as discount factor. The lease assets are depreciated and written down under the same accounting policy as the vessels owned by the Company or over the lease period depending on the lease terms.

The corresponding lease obligation is recognized as a liability in the balance sheet, and the interest element of the lease payment is charged to the income statement as incurred.

Other charter agreements concerning vessels and other leases are classified as operating leases, and lease payments are charged to the income statement on a straight-line basis over the lease term. The obligation for the remaining lease term is disclosed in the notes to the financial statements.

Agreements to charter out vessels for which substantially all the risks and rewards of ownership are transferred to the lessee are classified as finance leases, and an amount equal to the net investment in the lease is recognized and presented in the balance sheet as a receivable. The carrying amount of the vessel is derecognized, and any gain or loss on disposal is recognized in the income statement. Other agreements to charter out vessels are classified as operating leases, and lease income is recognized in the income statement on a straight-line basis over the lease term.

INCOME STATEMENT

Revenue

Income is recognized in the income statement when:

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

·          The income can be measured reliably

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

·          Costs relating to the transaction can be measured reliably

Revenue comprises freight, charter hire and demurrage revenues from the vessels and gains and losses on forward freight agreements designated as hedges. Revenue is recognized when it meets the general criteria mentioned above, and when the stage of completion can be measured reliably. Accordingly, freight, charter hire and demurrage revenue are recognized at selling price upon delivery of the service as per the charter parties concluded.

Cross-over voyages

Revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. For cross-over voyages (voyages in progress at the end of a reporting period), the uncertainty and the dependence on estimates are greater than for finalized voyages. The Company recognizes a percentage of the estimated revenue for the voyage equal to the percentage of the estimated duration of the voyage completed at the balance sheet date. The estimate of revenue is based on the expected duration and destination of the voyage. Voyage expenses are recognized as incurred.

When recognizing revenue, there is a risk that the actual number of days it takes to complete the voyage will differ from the estimate, and for time charter parties a lower day rate may have been agreed for additional days. The contract for a single voyage may state several alternative destination ports. The destination port may change during the voyage, and the rate may vary depending on the destination port. Changes to the estimated duration of the voyage as well as changing destinations and weather conditions will affect the voyage expenses.

Demurrage revenue

Freight contracts contain conditions regarding the amount of time available for loading and discharging of the vessel. If these conditions are breached, TORM is compensated for the additional time incurred in the form of demurrage revenue. Demurrage revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. Upon completion of the voyage, the Company assesses the time spent in port, and a demurrage claim based on the relevant contractual conditions is submitted to the charterers.

The claim will often be met by counterclaims due to differences in the interpretation of the agreement compared to the actual circumstances of the additional time used. Based on previous experience, 95% of the demurrage claim submitted is recognized as demurrage revenue upon initial recognition. The Company receives the demurrage payment upon reaching final agreement on the amount, which on average is approximately 100 days after the original demurrage claim was submitted. Any adjustments to the final agreement are recognized as demurrage revenue.

Port expenses, bunkers and commissions

Port expenses, bunker fuel consumption and commissions are recognized as incurred. Gains and losses on forward bunker contracts designated as hedges and write-down and provisions for losses on freight receivables are included in this line.

Freight and bunker derivatives

Freight and bunker derivatives comprise fair value adjustments and gains and losses on forward freight agreements, forward bunker contracts and other derivative financial instruments directly relating to shipping activities which are not designated as hedges. The freight and bunker derivatives that qualify for hedge accounting are recognized in Revenue and Port expense, bunkers and commissions respectively, as the hedging instrument is realized.

Charter hire

Charter hire comprises expenses related to the chartering in of vessels under operating leases which have been incurred in order to achieve the net revenue for the year.

Operating expenses

Operating expenses, which comprise crew expenses, repair and maintenance expenses and tonnage duty, are expensed as incurred.

Profit from sale of vessels

Profit from sale of vessels is recognized when the significant risks and rewards of ownership have been transferred to the buyer, representing the difference between the sales price less cost to sell and the carrying value of the vessel.

Administrative expenses

Administrative expenses, which comprise administrative staff costs, management costs, office expenses and other expenses relating to administration, are expensed as incurred.

Other operating expenses

Other operating expenses primarily comprise chartering commissions and management fees paid to commercial and technical managers for managing the fleet and to a lesser extent profits and losses deriving from the disposal of other plant and operating equipment.

Depreciation and impairment losses

Depreciation and impairment losses comprise depreciation of tangible fixed assets for the year as well as the write-down of the value of assets by the amount by which the carrying amount of the asset exceeds its recoverable amount. In the event of indication of impairment, the carrying amount is assessed, and the value of the asset is written down to its recoverable amount equal to the higher of value in use based on net present value of future earnings from the assets and its fair value less cost to sell.

Financial income

Financial income comprises interest income, realized and unrealized exchange rate gains relating to transactions in currencies other than the functional currency, realized gains from other equity investments and securities, unrealized gains from securities, dividends received and other financial income including value adjustments of certain financial instruments not accounted for as hedges of future transactions.

Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate. Dividends from other investments are recognized when the right to receive payment has been decided, which is typically when the dividend has been declared and can be received without conditions.

Financial expenses

Financial expenses comprise interest expenses, financing costs of finance leases, realized and unrealized exchange rate losses relating to transactions in currencies other than the functional currency, realized losses from other equity investments and securities, unrealized losses from securities and other financial expenses including value adjustments of certain financial instruments not accounted for as hedges of future transactions.

Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate.

Tax

Tax expenses comprise the expected tax including tonnage tax on the taxable income for the year for the Group, adjustments relating to previous years and the change in deferred tax for the year. However, tax relating to items in other comprehensive income is recognized directly in the statement of other comprehensive income.

BALANCE SHEET

Goodwill

Goodwill is measured as the excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities and is recognized as an asset under intangible assets. Goodwill is not amortized as it is considered to have an indefinite useful life, but the recoverable amount of goodwill is assessed at least once a year. For impairment testing purposes, goodwill is on initial recognition allocated to the cash generating unit expected to benefit from the synergies of the combination. If the recoverable amount of the cash generating unit is less than the carrying amount of the unit, the impairment loss is first allocated to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss for goodwill is not reversed in a subsequent period.

Vessels

Vessels are measured at cost less accumulated depreciation and accumulated impairment losses. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use, including interest expenses incurred during the period of construction based on the loans obtained for the vessels. All major components of vessels except for dry-docking costs are depreciated on a straight-line basis to the estimated residual value over their estimated useful lives, which TORM estimates to be 25 years. The Company considers that a 25-year depreciable life is consistent with what is used by other shipowners with comparable tonnage. Depreciation is based on cost less the estimated residual value. Residual value is estimated as the lightweight tonnage of each vessel multiplied by scrap value per ton. The useful life and the residual value of the vessels are reviewed at least at each financial year-end based on market conditions, regulatory requirements and the Company's business plans.

The Company also evaluates the carrying amounts to determine if events have occurred that indicate impairment and would require a modification of the carrying amounts. Prepayment on vessels is measured at costs incurred.

Dry-docking

Approximately every 30 and 60 months, depending on the nature of work and external requirements, the vessels are required to undergo planned dry-dockings for replacement of certain components, major repairs and major maintenance of other components, which cannot be carried out while the vessels are operating. These dry-docking costs are capitalized and depreciated on a straight-line basis over the estimated period until the next dry-docking. The residual value of such components is estimated at nil. The useful life of the dry-docking costs is reviewed at least at each financial year-end based on market conditions, regulatory requirements and TORM's business plans.

A portion of the cost of acquiring a new vessel is allocated to the components expected to be replaced or refurbished at the next dry-docking. Depreciation hereof is carried over the period until the next dry-docking. For newbuildings, the initial dry-docking asset is estimated based on the expected costs related to the first-coming dry-docking, which again is based on experience and past history of similar vessels. For second-hand vessels, a dry-docking asset is also segregated and capitalized separately, taking into account the normal docking intervals of the vessels.

At subsequent dry-dockings, the costs comprise the actual costs incurred at the dry-docking yard. Dry-docking costs may include the cost of hiring crews to carry out replacements and repairs, the cost of parts and materials used, cost of travel, lodging and supervision of Company personnel as well as the cost of hiring third-party personnel to oversee a dry-docking. Dry-docking activities include, but are not limited to, the inspection, service on turbocharger, replacement of shaft seals, service on boiler, replacement of hull anodes, applying of anti-fouling and hull paint, steel repairs as well as refurbishment and replacement of other parts of the vessel.

Other plant and operating equipment

Operating equipment is measured at cost less accumulated depreciation.

Computer equipment is depreciated on a straight-line basis over three years, and other operating equipment is depreciated on a straight-line basis over five years.

Leasehold improvements are measured at cost less accumulated amortization and impairment losses, and leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease and the estimated useful life. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use.

Investments in joint ventures

Investments in joint ventures comprise investments in companies which by agreement are managed jointly with one or more companies and therefore are subject to joint control and in which the parties have rights to the net assets of the joint venture. Joint ventures are accounted for using the equity method. Under the equity method, the investment in joint ventures is initially recognized at cost and thereafter adjusted to recognize TORM's share of the profit or loss in the joint venture. When TORM's share of losses in a joint venture exceeds the investment in the joint venture, TORM discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that TORM has incurred legal or constructive obligations or made payments on behalf of the joint venture.

Financial assets

Financial assets are initially recognized at the settlement date at fair value plus transaction costs, except for financial assets at fair value through profit or loss, which are recognized at fair value. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred.

Financial assets are classified as:

·          Financial assets at fair value through profit or loss

·          Loans and receivables

·          Available-for-sale financial assets

Other investments

Other investments comprise shares in other companies and are classified as available-for-sale. Listed shares are measured at the market value at the balance sheet date, and unlisted shares are measured at estimated fair value. Unrealized gains and losses resulting from changes in fair value of shares are recognized in "Other comprehensive income". Realized gains and losses resulting from sales of shares are recognized as "Financial income" or "Financial expenses" in the income statement. The cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement when the shares are sold. Dividends on shares in other companies are recognized as "Financial income" in the period in which they are declared.

Other investments are presented as non-current, unless Management intends to dispose of the investments within 12 months from the balance sheet date.

Receivables

Outstanding freight receivables and other receivables that are expected to be realized within 12 months from the balance sheet date are classified as loans and receivables and presented as current assets.

Receivables are measured at the lower of amortized cost and net realizable values, which corresponds to nominal value less provision for bad debts. Derivative financial instruments included in other receivables are measured at fair value.

Provisions for bad debt

Provision for bad debt is defined as the write off of certain accounts receivable assessed as being uncollectible. The assessment is based on historical experience and on an individual basis.

Impairment of assets

Non-current assets are reviewed at least annually to determine any indication of impairment due to a significant decline in either the assets' market value or in the cash flows generated by the assets. In case of such indication, the recoverable amount of the asset is estimated as the higher of the asset's fair value less costs to sell and its value in use. The value in use is the present value of the future cash flows expected to derive from a cash generating unit, utilizing a pre-tax discount rate that reflects current market estimates of the time value of money and the risks specific to the unit for which the estimates of future cash flows have not been adjusted. If the recoverable amount is less than the carrying amount of the cash generating unit, the carrying amount is reduced to the recoverable amount. The impairment loss is recognized immediately in the income statement. Where an impairment loss subsequently reverses, the carrying amount of the cash generating unit is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined, had no impairment loss been recognized in prior years.

For the purpose of assessing impairment, assets and time charter- and bareboat contracts are grouped at the lowest levels at which impairment is monitored for internal management purposes. There were two cash generating units in 2015, the Tanker Segment and the Bulk Segment. In 2017 and 2016, there was only one cash generating unit as the Bulk Segment was wound down in 2015.

Bunkers

Bunkers and luboil are stated at the lower of cost and net realizable value. Cost is determined using the FIFO method and includes expenditures incurred in acquiring the bunkers and luboil and delivery cost less discounts.

Assets held-for-sale

Assets are classified as held-for-sale if the carrying amount will be recovered principally through a sales transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject to terms that are usual and customary for sales of such assets, and when its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Assets held-for-sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

Gains are recognized on delivery to the new owners in the income statement in the item "Profit from sale of vessels". Anticipated losses are recognized at the time the asset is classified as held-for-sale in the item "Impairment losses on tangible and intangible assets".

Treasury shares

Treasury shares are recognized as a separate component of equity at cost. Upon subsequent disposal of treasury shares, any consideration is also recognized directly in equity.

Share-based payments

The Group makes equity settled share-based payments to certain employees, which are measured at fair value at the date of grant and expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. The fair value of the share schemes is calculated using the Black Scholes method at grant date.

Dividend

Dividend is recognized as a liability at the time of declaration. Dividend proposed for the year is moved from "Retained profit" and presented as a separate component of equity.

Provisions

Provisions are recognized when the Company has a legal or constructive obligation as a result of past events, and when it is probable that this will lead to an outflow of resources that can be reliably estimated. Provisions are measured at the estimated liability that is expected to arise, taking into account the time value of money.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. In addition, the deferred tax also constitutes the reserve in relation to the transition balance in connection with the Danish tonnage tax scheme.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on the laws that have been enacted by the balance sheet date. The deferred tax is charged through the income statement except when it relates to other comprehensive income items.

Mortgage debt and bank loans

At the time of borrowing, mortgage debt and bank loans are measured at fair value less transaction costs. Mortgage debt and bank loans are subsequently measured at amortized cost. This means that the difference between the net proceeds at the time of borrowing and the nominal amount of the loan is recognized in the income statement as a financial expense over the term of the loan applying the effective interest method.

When terms of existing financial liabilities are renegotiated, or other changes regarding the effective interest rate occur, TORM performs a test to evaluate whether the new terms are substantially different from the original terms. If the new terms are substantially different from the original terms, TORM accounts for the change as an extinguishment of the original financial liability and the recognition of a new financial liability. TORM considers the new terms to be substantially different from the original terms if the present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability.

Other liabilities

Other liabilities are generally measured at amortized cost. Derivative financial instruments included in other liabilities are measured at fair value.

CASH FLOW STATEMENT

The cash flow statement shows the Company's cash flows as well as cash and cash equivalents at the beginning and the end of the period.

Cash flow from operating activities is presented using the indirect method and is based on net profit/(loss) for the year adjusted for tax, financial income and expenses, net profit/(loss) from sale of vessels, non-cash operating items, changes in working capital, income tax paid, dividends received and interest paid/received.

Cash flow from investing activities comprises the purchase and sale of tangible fixed assets and financial assets as well as cash from business combinations.

Cash flow from financing activities comprises changes in long-term debt, bank loans, finance lease liabilities, purchases or sales of treasury shares and dividend paid to shareholders.

Cash and cash equivalents comprise cash at bank and in hand including restricted cash. Other investments are classified as investing activities.

EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the consolidated net profit/(loss) for the year available to common shareholders by the weighted average number of common shares outstanding during the period. Treasury shares are not included in the calculation. Purchases of treasury shares during the period are weighted based on the remaining period.

Diluted earnings per share is calculated by adjusting the consolidated profit or loss available to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive shares. Such potentially dilutive common shares are excluded when the effect of including them would be to increase earnings per share or reduce a loss per share.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements in accordance with IFRS requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are affected by the way TORM applies its accounting policies. An accounting estimate is considered critical if the estimate requires Management to make assumptions about matters subject to significant uncertainty, if different estimates could reasonably have been used, or if changes in the estimate that would have a material impact on the Company's financial position or results of operations are reasonably likely to occur from period to period. Management believes that the accounting estimates applied are appropriate and the resulting balances are reasonable. However, actual results could differ from the original estimates requiring adjustments to these balances in future periods.

Management believes that the following are the significant accounting estimates and judgements used in the preparation of the consolidated financial statements:

ACCOUNTING ESTIMATES

Carrying amounts of vessels

The Company evaluates the carrying amounts of the vessels (including newbuildings) to determine if events have occurred that would require a modification of their carrying amounts. The valuation of vessels is reviewed based on events and changes in circumstances that would indicate that the carrying amount of the assets might not be recoverable. In assessing the recoverability of the vessels, the Company reviews certain indicators of potential impairment such as reported sale and purchase prices, market demand and general market conditions. Furthermore, market valuations from leading, independent and internationally recognized shipbrokers are obtained on a quarterly basis as part of the review for potential impairment indicators. If an indication of impairment is identified, the need for recognizing an impairment loss is assessed by comparing the carrying amount of the vessels to the higher of the fair value less cost to sell and the value in use.

The review for potential impairment indicators and projection of future discounted cash flows related to the vessels is complex and requires the Company to make various estimates including future freight rates, utilization, earnings from the vessels, future operating and capital expenditure and discount rates. For more information on key assumptions and related sensitivities, please refer to note 8 in these financial statements. All these factors have been historically volatile. The carrying amounts of TORM's vessels may not represent their fair market value at any point in time, as market prices of second-hand vessels to a certain degree tend to fluctuate with changes in charter rates and the cost of newbuildings. However, if the estimated future cash flow or related assumptions in the future experience change, an impairment write-down or reversal of vessels may be required.

JUDGEMENTS

Reverse acquisition

TORM's Restructuring was completed on 13 July 2015 and included inter alia a contribution by OCM Njord Holdings S.à r.l. ("Njord Luxco") of Njord to TORM in exchange for a controlling interest in TORM. The transaction is described in detail in note 27. Management has concluded that the contribution should be accounted for as a reverse acquisition according to IFRS 3 (Revised 2008) – Business Combinations ("IFRS 3"), i.e. Njord is the acquirer and Former TORM is the acquiree. Management's most significant judgements applying to the accounting policies relate to:

·          Identification of the acquirer

·          Calculation of consideration

Identification of the acquirer

IFRS 3 requires that the determination of the acquirer shall be determined based on the guidance in IFRS 10 – "Consolidated Financial Statements", which means that the acquirer will be the entity that obtains control over the acquiree. The acquirer in a business combination will therefore most often be the entity (Former TORM A/S) legally acquiring the other (Njord) in exchange for cash, other assets or in exchange for issuing its equity interests. However, IFRS 3 states that in some cases the accounting acquirer can be the entity that is legally being acquired, i.e. Njord. The latter is typically the case when the former shareholder (Njord Luxco) of the entity whose shares are being acquired (Njord) owns the majority of shares and controls the majority of votes in the combined entity (TORM) after the transaction.

Following the transaction, Njord Luxco had control with the majority of the share capital and associated votes of Former TORM A/S, which led Management to conclude that the transaction is to be accounted for as a reverse acquisition, i.e. as if Former TORM A/S has been acquired by Njord rather than Former TORM A/S acquiring Njord.

Calculation of consideration

Based on the provision of IFRS 3, Njord's purchase price for a controlling interest in Former TORM A/S is calculated as the fair value of the interest in Njord that the existing shareholders and warrant holders in Former TORM A/S would have received, had the business combination of Former TORM A/S and Njord not been a reverse acquisition. As the issued shares of Former TORM A/S were publicly traded, Management considered whether the fair value of Former TORM A/S would have been a more reliable measure of the consideration. Management believes that the fair value of the interest in Njord that would have been issued represented the fair value of the consideration more reliably than the share price of Former TORM A/S. The share price of Former TORM A/S was very volatile during the period before the Restructuring due to the significant uncertainty about Former TORM A/S' future as an independent group.

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LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2017

Disclosure Of Information About Understanding Financial Position Liquidity Of Entity And Events After Reporting Date [Abstract]

LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS

NOTE 2 – LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS

LIQUIDITY AND CAPITAL RESOURCES

As of 31 December 2017, TORM's cash position totaled USD 134m (2016: USD 76m; 2015: USD 168m) and undrawn credit facilities amounted to USD 271m (2016: USD 190m; 2015: USD 75m). The undrawn credit facilities consisted of a USD 75m Working Capital Facility, a bilateral USD 115m facility with China Export-Import Bank and a bilateral USD 81m facility with Danish Ship Finance. TORM had ten newbuildings on order for delivery in 2018-2019 (2016: four; 2015: seven). The total outstanding CAPEX related to these newbuildings was USD 307m (2016: USD 149m; 2015: USD 224m) and is mainly financed by the undrawn facilities with China Export-Import Bank and Danish Ship Finance.

TORM has a Term Facility I of USD 401m and an undrawn Working Capital Facility of USD 75m both with maturity in 2021. In addition to the Term Facility I and the Working Capital Facility, TORM has a Term Facility II of USD 115m with maturity in 2022 and bilateral loan agreements with Danish Ship Finance of USD 158m maturing in 2022 and with ING of USD 46m maturing in 2024. As of 31 December 2017, the scheduled minimum payments on mortgage debt and bank loans in 2018 were USD 93m.

TORM's bank debt facilities include financial covenants related to:

·          Minimum liquidity including committed credit lines

·          Minimum cash

·          Loan-to-value

·          Equity ratio

During 2017, 2016 and 2015, TORM did not have any covenant breaches.

SUBSEQUENT EVENTS

On 12 January 2018, TORM took delivery of the newbuilding TORM Herdis,(hull no. 15121049), a 114,000 DWT LR2 tanker from Guangzhou Shipyard International.

On 22 January 2018, TORM secured commitment from ABN AMRO for attractive vessel financing of up to USD 50m regarding the two LR1 tanker newbuilding options exercised in December 2017. TORM expects the two LR1 newbuildings to be delivered in 2019 throughout the first quarter of 2020.

On 23 January 2018, TORM plc announced the USD 100m Private Placement by issuing 11,920,000 new A-shares. The related capital increase was filed on 26 January 2018 with the UK Companies House. After the capital increase, TORM's share capital amounts to a total nominal value of USD 742,188.48 divided into 74,218,846 A-shares of USD 0.01 each, one B-share of USD 0.01 and one C-share of USD 0.01.

On 26 January 2018, TORM delivered the Handysize tanker TORM Rhone to its new owner. In the financial statements, TORM Rhone is treated as an asset held-for-sale. The delivery results in a net profit from sale of vessels in TORM of USD 0.6m in 2018.

On 9 February 2018, TORM took delivery of the newbuilding TORM Hermia (hull no. 15121050), a 114,000 DWT LR2 tanker from Guangzhou Shipyard International.

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CONSOLIDATED SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

Disclosure of operating segments [abstract]

CONSOLIDATED SEGMENT INFORMATION

NOTE 3 – CONSOLIDATED SEGMENT INFORMATION

	2015
USDm	Tanker Segment	Bulk Segment	Not allocated	Total
Income Statement
Revenue	538.7	1.7	-	540.4
Port expenses, bunkers and commissions	-169.2	-0.5	-	-169.7
Charter hire	-11.1	-0.9	-	-12.0
Operating expenses	-121.7	-1.2	-	-122.9
Administrative expenses	-	-	-19.5	-19.5
Other operating expenses	-	-	-6.3	-6.3
Share of profit/(loss) from joint ventures	-	-	0.2	0.2
Impairment losses on tangible and intangible assets	-	-	-	-
Depreciation	-67.1	-0.2	-	-67.3
Operating profit/(loss) (EBIT)	169.6	-1.0	-25.6	143.0
Financial income	-	-	1.0	1.0
Financial expenses	-	-	-16.9	-16.9
Profit/(loss) before tax	169.6	-1.0	-41.5	127.1
Tax	-	-	-1.0	-1.0
Net profit/(loss) for the year	169.6	-1.0	-42.5	126.1

In 2015 TORM consisted of two business segments: The Tanker Segment and the Bulk Segment. Due to the divestment of the Bulk Segment in 2015, only the Tanker Segment remains for 2016 and 2017, and thus no segment information has been presented for 2017 and 2016.

During 2015, there have been no transactions between the Tanker and the Bulk Segments, and therefore all revenue derives from external customers.

As the Company considers the global market as a whole, and as the individual vessels are not limited to specific parts of the world, the Group has only one geographical segment.

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STAFF COSTS

12 Months Ended

Dec. 31, 2017

Disclosure Of Employee Benefits [Abstract]

STAFF COSTS

NOTE 4 – STAFF COSTS

USDm	2017	2016	2015
Total staff costs
Staff costs included in operating expenses	9.2	9.9	9.7
Staff costs included in administrative expenses	34.6	31.0	14.2
Total	43.8	40.9	23.9
Staff costs comprise the following
Wages and salaries	36.4	32.3	22.4
Share-based compensation	1.9	2.0	-
Pension costs	3.1	3.6	1.4
Other social security costs	0.3	0.4	0.1
Other staff costs	2.1	2.6	-
Total	43.8	40.9	23.9
Average number of permanent employees
Seafarers	130.6	137.0	65.0
Land-based	286.6	269.1	133.0
Total	417.2	406.1	198.0

Employee information

The majority of the staff on vessels are not employed by TORM. Staff costs included in operating expenses relate to the 131 seafarers (2016: 137, 2015: 65).

The average number of employees is calculated as a full-time equivalent (FTE).

The Executive Director is, in the event of termination by the Company, entitled to a severance payment of up to 12 months' salary.

USD '000	2017	2016	2015 ⁵⁾
Non-Executive Board and Committee Remuneration, Short term
Cheam Directors Limited ¹⁾	-	-	3
Christopher H. Boehringer	290	237	88
Kari Millum Gardarnar ²⁾³⁾⁴⁾	-	-	31
Rasmus Johannes Hoffmann ²⁾³⁾	-	-	29
Flemming Ipsen ²⁾	-	-	38
Olivier Dubois ²⁾	-	-	17
Alexander Green ²⁾	-	-	19
Jon Syvertsen ²⁾	-	-	19
David Weinstein	174	131	48
Torben Janholt	174	131	48
Göran Trapp	174	158	58
Jeffery Stein ²⁾³⁾	-	-	7
Total	812	657	405

¹⁾ Former member of the Board of Directors of Njord. Left the Board of Directors due to the reverse acquisition on 13 July 2015.

²⁾ Former member of the Board of Directors of Former TORM A/S. Resigned on 25 August 2015.

³⁾ Took up position as Board Observer of TORM plc.

⁴⁾ Resigned as Board Observer as of 31 July 2017.

⁵⁾ The 2015 figures represent amounts earned subsequent to the Restructuring on 13 July 2015.

Executive Management

USD '000	Salary	Taxable benefits	Annual performance bonus	Transaction bonus	Total
Executive Management Remuneration
Jacob Meldgaard
2015, TORM A/S¹⁾	362	19	144	345	870
2016, TORM A/S - restated ¹⁾ ²⁾	834	41	559	-	1,434
2016, TORM plc¹⁾	39	-	-	-	39
2017, TORM A/S¹⁾	923	42	580	-	1,545
2017, TORM plc¹⁾	81	-	-	-	81

¹⁾ Paid by legal entity as noted.

²⁾ The 2016 figures have been restated in order to include the figure for the annual bonus for 2016 as this was finalised and subsequently paid in 2017. No value was shown in the 2016 annual report. The total annual performance bonus of the Executive Director of TORM plc for 2016. arising in the period 1 January 2016 to 31 December 2016 was DKK 3.758.700 (USD 559t).

Senior Management Team

The aggregate compensation paid by the Group to the other members of the Senior Management Team (excluding Mr. Meldgaard) was USD 1,625,425 (2016: USD 1,735,563, 2015: USD 2,944,715), which includes an aggregate of USD 112,236 (2016: USD 93,163, 2015: USD 180,354) allocated for pensions for these individuals.

Long-Term Incentive Plan - RSUs granted in 2017:

	RSU LTIP grant	Exercise price per share ¹⁾	RSU grant value assuming 100% vesting
LTIP element of Jacob Meldgaard's remuneration package 2017:
Jacob Meldgaard ²⁾	1,276,273	DKK 96.3	USD 3.4m

¹⁾ Exercise price originally DKK 96.3. Subsequently adjusted 13 December 2016 to DKK 93.6 due to dividend payment

in September 2016. Further adjusted in December 2017 to DKK 93.5 due to dividend payment in September 2017.

²⁾ LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 2 of 18

January 2016. Therefore there is no minimum or maximum for 2017.

TORM has in accordance with its Remuneration Policy granted the CEO a number of Restricted Share Units (RSUs), which was communicated in company announcement no. 2 dated 18 January 2016. There are no performance conditions associated with this grant of RSUs.

The RSUs granted to the CEO will vest over a five-year period, with one fifth of the grant amount vesting at each anniversary during the five-year period. As at 1 January 2017, one fifth of the grant amounting to 255,345 RSUs vested, and as at 31 December 2017, the exercise period relating to those vested RSUs expired. The total value of the RSU allocation is calculated based on the Black-Scholes model and is included in the overall cost estimate for the Company's Long-Term Incentive Program (cf. company announcements dated 18 January and 8 March 2016).

The total number of securities granted was 1,276,725 (assuming 100% vesting). No further grants were made to the CEO during 2017. As of 31 December 2017, 1,021,380 RSUs remain.

The value of the grant, USD 3.4m, is based on the Black-Scholes model with an exercise price of DKK/share 96.3, a market value of one TORM A-share of DKK 84.05 (the closing price on 15 January 2016) and assuming 100% vesting. Subsequently, the exercise price was adjusted on 13 December 2016 to DKK 93.6 due to the dividend payment in September 2016. The exercise price was further adjusted in December 2017 to DKK 93.5 due to the dividend payment in September 2017.

Long-term employee benefit obligations

The obligation comprises an obligation under the incentive programs to deliver Restricted Share Units (RSUs) in TORM plc at a determinable price to the entity's key personnel. The RSUs granted entitle the holder to acquire one TORM A-share.

The program was established during the year and comprises the following number of shares in TORM plc:

Number of shares (1,000)	2017	2016	2015
Outstanding 1 January	1,999.8	-	-
Granted during the period	866.6	2,127.4	-
Exercised during the period	-	-	-
Expired during the period	-233.9	-	-
Forfeited during the period	-21.3	-127.6	-
Outstanding 31 December	2,611.2	1,999.8	-
Exercisable 31 December	255.3	538.9	-

The vesting period of the program is three years for key employees and five years for the Executive Director. The exercise price is set to DKK 93.5. The exercise period is six months after the vesting date for key employees and twelve months after the vesting date for the Executive Director. The fair value of the options granted in 2017 was determined using the Black-Scholes valuation model and is not material.

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REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING

12 Months Ended

Dec. 31, 2017

Auditor's remuneration [abstract]

REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING

NOTE 5 — REMUNERATION TO AUDITORS APPOINTED AT THE PARENT

COMPANY'S ANNUAL GENERAL MEETING
USDm	2017	2016	2015
Audit fees
Fees payable to the Company's auditor for the audit of the Company's annual accounts	0.4	0.4	0.2
Audit of the Company's subsidiaries pursuant to legislation	0.2	0.1	0.1
Total audit fees	0.6	0.5	0.3
Non-audit fees
Audit related services	0.4	0.6	1.1
Tax services	-	0.3	0.5
Other services	-	0.1	0.2
Total non-audit fees	0.4	1.0	1.8
Total	1.0	1.5	2.1

Under SEC regulations, the remuneration of the auditor of USD 1.0m (2016: USD 1.5m, 2015: USD 2.1m) is required to be presented as follows: Audit USD 0.6m (2016: USD 0.5m, 2015: USD 0.3m), other audit-related USD 0.4m (2016: USD 0.6m, 2015: USD 1.1m), tax USD 0.0m (2016: USD 0.3m, 2015: USD 0.5m) and all other fees USD 0.0m (2016: USD 0.1m, 2015: USD 0.2).

Our Audit Committee pre-approves all audit, audit-related and non-audit services not prohibited by law to be performed by our independent auditors and associated fees prior to the engagement of the independent auditor with respect to such services.

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INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about intangible assets [abstract]

INTANGIBLE ASSETS

NOTE 6 – INTANGIBLE ASSETS

USDm	2017	2016	2015
Goodwill
Cost:
Balance as of 1 January	11.4	11.4	-
Additions during the year	-	-	11.4
Balance as of 31 December	11.4	11.4	11.4
Impairment losses:
Balance as of 1 January	-11.4	-	-
Impairment losses for the year	-	-11.4	-
Balance as of 31 December	-11.4	-11.4	-
Carrying amount as of 31 December	-	-	11.4

Goodwill is related to the reverse acquisition of TORM A/S in 2015 and has been allocated to the Tanker Segment.

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TANGIBLE FIXED ASSETS

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about property, plant and equipment [abstract]

TANGIBLE FIXED ASSETS

NOTE 7 – TANGIBLE FIXED ASSETS

USDm	2017	2016	2015
Vessels and capitalized dry-docking
Cost:
Balance as of 1 January	1,697.4	1,567.5	530.1
Additions	103.1	40.8	112.0
Additions from business combinations	-	-	857.4
Disposals	-14.3	-16.3	-18.6
Transferred to/from other items	-	105.4	104.6
Transferred to assets held-for-sale	-59.6	-	-18.0
Balance as of 31 December	1,726.6	1,697.4	1,567.5
Depreciation:
Balance as of 1 January	180.0	75.5	27.9
Disposals	-14.3	-15.9	-18.6
Depreciation for the year	113.6	120.4	66.5
Transferred to assets held-for-sale	-20.8	-	-0.3
Balance as of 31 December	258.5	180.0	75.5
Impairment:
Balance as of 1 January	173.6	-	-
Impairment losses on tangible fixed assets	-	173.6	-
Balance as of 31 December	173.6	173.6	-
Carrying amount as of 31 December	1,294.5	1,343.8	1,492.0
Of which finance leases as of 31 December	28.6	12.4	13.1

USDm	2017	2016	2015
Prepayments on vessels
Balance as of 1 January	44.1	72.6	34.7
Additions	44.3	76.9	142.5
Transferred to/from other items	-	-105.4	-104.6
Balance as of 31 December	88.4	44.1	72.6
Carrying amount as of 31 December	88.4	44.1	72.6

USDm	2017	2016	2015
Other plant and operating equipment
Cost:
Balance as of 1 January	2.7	3.2	-
Additions	1.0	1.1	0.9
Additions from business combinations	-	-	2.5
Disposals	-0.1	-1.6	-0.2
Balance as of 31 December	3.6	2.7	3.2
Depreciation:
Balance as of 1 January	0.9	0.7	-
Disposals	-0.1	-1.6	-0.2
Depreciations for the year	0.9	1.8	0.9
Balance as of 31 December	1.7	0.9	0.7
Carrying amount as of 31 December	1.9	1.8	2.5
Of which finance leases as of 31 December	-	-	-

Included in the carrying amount for "Vessels and capitalized dry-docking" are capitalized dry-docking costs in the amount of USD 68.1m (2016: USD 80.4m, 2015: USD 81.7m).

For information on assets used as collateral security, please refer to note 16. Please refer to note 8 for information on impairment testing.

The depreciation expense related to "Other plant and operating equipment" of USD 0.9m relates to "Administrative expense" (2016: USD 1.8m, 2015: USD 0.9m). Depreciations and impairment losses on tangible fixed assets on "Vessels and capitalized dry-docking" relate to operating expenses.

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IMPAIRMENT TESTING

12 Months Ended

Dec. 31, 2017

Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [abstract]

IMPAIRMENT TESTING

NOTE 8 – IMPAIRMENT TESTING

As of 31 December 2017, Management performed an impairment test of the recoverable amount of significant assets within the cash-generating unit — the Tanker Segment.

The recoverable amount of the Tanker Segment was based on its value in use.

Management concluded that the impairment test did not provide the basis for any impairment or reversal of the impairment recorded in 2016, as the value in use was materially equivalent to the carrying amount.

The assessment of the value in use of the Tanker Segment was based on the present value of the expected future cash flows. The freight rate estimates in the period 2018-2020 are based on the Company's business plans. Beyond 2020, the freight rates are based on TORM's 10-year historical average rates, amended to reduce strong rates in 2008, and also adjusted for inflation. The approach used for long-term freight rates outlined above represents a change in estimates, as in previous years the long-term freight rates have been based on the 10-year historical average rates from Clarksons .

From the year ended 31 December 2017 and going forward TORM has decided to use its own historical average rates, rather than the ones from Clarksons, as it has been concluded, following detailed analysis, that they are better estimates of the future earnings potential of TORM as they reflect TORM's actual trading pattern and routes which differ to the benchmarks used by Clarksons, in addition to reflecting operating efficiencies that TORM is able to achieve due to the size and interdependency of its fleet. TORM has historically continuously performed at or higher than the Clarksons benchmark.

The effect of the change in estimate of long-term freight rates on the year end impairment test was to significantly increase the value in use of the Tanker Segment, as of 31 December 2017. However, if the lower Clarksons rates were applied instead of TORM's the impairment charge arising in the current year would have been capped at USD 20m based on the fair value less cost to sell of the Tanker Segment, as indicated by a range of market valuations from independent shipbrokers.

The discount rate used in the value in use calculation is based on a Weighted Average Cost of Capital (WACC) of 8.7% as of 31 December 2017 (2016: 8.8%, 2015: 8.3%) . WACC is calculated by using a standard WACC model in which cost of equity, cost of debt and capital structure are the key parameters.

As of 31 December 2017, the amended 10-year historical average spot freight rates used in the value in use calculation are as follows:

·          LR2 USD/day 17,216 (2016: USD/day 20,176, 2015: USD/day 21,975)

·          LR1 USD/day 16,445 (2016: USD/day 17,124, 2015: USD/day 18,900)

·          MR USD/day 15,794 (2016: USD/day 15,118, 2015: USD/day 16,948)

·          Handysize USD/day 14,416 (2016: USD/day 15,203, 2015: USD/day 17,868)

Operating expenses and administrative expenses are estimated based on TORM's business plans for the period 2018-2020. Beyond 2020, operating expenses are adjusted for 3% (2016: 2%) inflation and administrative expenses are adjusted for 2% inflation (2016: 2%).

The product tankers are expected to generate normal income for 25 years from delivery from the shipyard. Given the current age profile of the tanker fleet, the average remaining life would be approximately 14 years.

The calculation of the value in use is sensitive to changes in the key assumptions which are related to the future development in freight rates, the WACC applied as discounting factor in the calculations and the development in operating expenses. All other things being equal, the sensitivities to the value in use have been assessed as follows:

·      A decrease/increase in the tanker freight rates of USD/day 1,000 would result in in a decrease/increase in the value in use of USD 241m.

·      An increase/decrease in WACC of 1.0% would result in a decrease/increase in the value in use of USD 100-112m.

·      An increase/decrease in operating expenses of 10.0% would result in a decrease/increase in the value in use of USD 187m.

However, if the downside sensitivities outlined above had been applied to the impairment test as of December 31 2017, the impairment charge arising in the current year would have been capped at USD 20m based on the fair value less cost to sell of the Tanker Segment, as outlined above. If the upside sensitivities outlined above had been applied,  the impairment reversal would have been capped at USD 159m being the impairment charge applied to the Group's vessels in 2016 adjusted for the impact of the incremental depreciations that would have been charged during the year and vessel disposals during 2017.

As outlined above, the impairment test has been prepared on the basis that the Company will continue to operate its vessels as a fleet in the current set-up. The market value based on broker values of TORM's vessels including the order book and chartered in vessels was USD 1,672m, which is USD 20 m below the carrying amount.

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FINANCIAL ITEMS

12 Months Ended

Dec. 31, 2017

Financial Items [Abstract]

FINANCIAL ITEMS

NOTE 9 – FINANCIAL ITEMS

USDm	2017	2016	2015
Financial income
Interest income from cash and cash equivalents ¹⁾	1.6	0.2	0.3
Exchange rate adjustments, including gain from forward exchange rate contracts	2.7	2.8	0.7
Total	4.3	3.0	1.0
Financial expenses
Interest expenses on mortgage and bank debt ¹⁾	33.3	29.7	15.0
Exchange rate adjustments, including loss from forward exchange rate contracts	3.2	2.6	0.6
Other financial expenses	4.1	5.2	1.3
Total	40.6	37.5	16.9
Total financial items	-36.3	-34.5	-15.9
¹⁾ Interest for financial assets and liabilities not at fair value through profit and loss.

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FREIGHT RECEIVABLES

12 Months Ended

Dec. 31, 2017

Freight Receivables [Abstract]

FREIGHT RECEIVABLES

NOTE 10 – FREIGHT RECEIVABLES

USDm	2017	2016	2015
Analysis as of 31 December of freight receivables:
Neither past due nor impaired	25.5	28.7	40.3
Past due not impaired:
Due before 30 days	26.0	13.0	22.8
Due between 30 and 180 days	18.4	18.7	16.4
Past due and impaired:
Due after 180 days	2.7	4.7	5.3
Total gross	72.6	65.1	84.8
Provision for impairment of freight receivables	1.3	2.6	1.7
Total net	71.3	62.5	83.1

As of 31 December 2017, freight receivables included receivables at a value of USD 0.0m (2016: USD 0.6m, 2015: USD 1.9m) that are individually determined to be impaired to a value of USD 0.0 m (2016: USD 0.5m, 2015: USD 0.2m).

Movements in provisions for impairment of freight receivables during the year are as follows:

USDm	2017	2016	2015
Provisions for impairment of Freight receivables
Balance as of 1 January	2.6	1.7	-
Addition from business combinations	-	-	1.9
Provisions for the year	0.6	1.9	0.5
Provisions reversed during the year	-1.9	-1.0	-0.7
Balance as of 31 December	1.3	2.6	1.7

Provisions for impairment of freight receivables have been recognized in the income statement under "Port expenses, bunkers and commissions".

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OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2017

Trade and other receivables [abstract]

OTHER RECEIVABLES

NOTE 11 – OTHER RECEIVABLES

USDm	2017	2016
Partners and commercial managements	-	0.5
Derivative financial instruments	7.6	3.3
Tax receivables	1.3	1.1
Other	2.9	3.2
Balance as of 31 December	11.8	8.1

No significant other receivables are past due or impaired.

Please refer to note 21 for further information on fair value hierarchies.

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TAX

12 Months Ended

Dec. 31, 2017

Disclosure Of Income Tax [Abstract]

TAX

NOTE 12 – TAX

USDm	2017	2016	2015
Tax for the year
Current tax for the year	1.0	1.2	1.3
Adjustments related to previous years	-0.1	-0.3	-0.2
Adjustment of deferred tax asset	-0.1	-0.1	-0.1
Total	0.8	0.8	1.0

The majority of the Group's taxable income is located in Denmark, and therefore the majority of the tax base is subject to Danish tax legislation. As such, the Group has elected to participate in the Danish tonnage tax scheme; the participation is binding until 31 December 2025.

The Group expects to participate in the tonnage tax scheme after the binding period and, at a minimum, to maintain an investing and activity level equivalent to the time of entering the tonnage tax scheme.

Under the Danish tonnage tax scheme, income and expenses from shipping activities are not subject to direct taxation, and accordingly an effective rate reconciliation has not been provided, as it would not provide any meaningful information. Instead, the taxable income is calculated from:

- The net tonnage of the vessels used to generate the income from shipping activities; and

- A rate applicable to the specific net tonnage of the vessel based on a sliding scale

Due to the provisions of the tonnage tax scheme, the effective tax rate of the Group is 24.4% (2016: -0.6 %, 2015: 0.8 %).

USDm	2017	2016	2015
Deferred tax liability
Balance at 1 January	45.0	45.1	-
Addition from business combination	-	-	45.2
Deferred tax for the year	-0.1	-0.1	-0.1
Balance as of 31 December	44.9	45.0	45.1

Essentially all deferred tax relates to vessels included in the transition account under the Danish tonnage tax scheme.

The Group operates in a wide variety of jurisdictions, in some of which the tax law is subject to varying interpretations and potentially inconsistent enforcement. As a result, there can be practical uncertainties in applying tax legislation to the Group's activities. Whilst the Group considers that it operates in accordance with applicable tax law, there are potential tax exposures in respect of its operations, the impact of which cannot be reliably estimated but could be material.

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COMMON SHARES & TREASURY SHARES

12 Months Ended

Dec. 31, 2017

Disclosure of classes of share capital [abstract]

COMMON SHARES & TREASURY SHARES

NOTE 13 – COMMON SHARES & TREASURY SHARES
Common shares	2017	2016	2015
	Number of shares	Number of shares	Number of shares
A-shares	62,298,846	62,298,846	63,836,249
B-shares	1	1	1
C-shares	1	1	1
Total	62,298,848	62,298,848	63,836,251

For accounting purposes due to the Corporate Reorganization, the common shares have been adjusted retrospectively to reflect the issued capital and common shares of TORM plc amounting to USD 0.4m as per 1 January 2015.

The A-shares are listed on NASDAQ Copenhagen and NASDAQ in New York and are publicly available for trading. Each A-share carries one vote at the Annual General Meeting and gives the shareholder right to dividends, liquidation proceeds or other distributions. The A-shares carry no other rights or obligations.

The B-share has one vote at the general meeting, has no pre-emption rights in relation to any issue of new shares of other classes and carries no right to receive dividends, liquidation proceeds or other distributions from TORM. The holder of the B-share has the right to elect one member to the Board of Directors (being the Deputy Chairman), up to three alternates as well as one Board Observer. The B-share cannot be transferred or pledged, except for a transfer to a replacement trustee.

The C-share represents 350,000,000 votes at the general meeting in respect of certain Specified Matters, including election of members to the Board of Directors (including the Chairman but excluding the Deputy Chairman) and certain amendments to the Articles of Association proposed by the Board of Directors. The C-share has no pre-emption rights in relation to any issue of new shares of other classes and carries no right to receive dividends, liquidation proceeds or other distributions from TORM. The C-share cannot be transferred or pledged, except to an affiliate of Njord Luxco.

The B-share and the C-share are redeemable by TORM in the event that (i) TORM has received written notification from Njord Luxco (or its affiliates) that Njord Luxco and its affiliates (as defined in the Articles of Association) hold less than 1/3 in aggregate of TORM's issued and outstanding shares, (ii) five business days have elapsed from the Board of Directors' receipt of such written notice either without any Board member disputing such notice or with at least 2/3 of the Board members confirming such notice and (iii) both of the B-share and the C-share are redeemed at the same time.

Issued warrants

Key management participates in an LTIP program, which gives the right to buy TORM shares at a predefined share price. Please refer to Note 4.

Treasury shares	2017	2016	2015
Number of shares ('000)
Balance as of 1 January	312.9	15.3	-
Additions	-	312.9	15.3
Cancellations	-	-15.3	-
Disposals	-	-	-
Balance as of 31 December	312.9	312.9	15.3
Nominal value USDm
Balance as of 1 January	-	-	-
Additions	-	-	-
Cancellations	-	-	-
Disposals	-	-	-
Balance as of 31 December	-	-	-
% of share capital
Balance as of 1 January	0.5	0.2	-
Additions	-	0.5	0.2
Cancellations	-	-0.2	-
Disposals	-	-	-
Balance as of 31 December	0.5	0.5	0.2

The total consideration for the treasury shares was USD 0.0m (2016: 2.9m and 2015: USD 0.2m). At 31 December 2016, the Company's holding of treasury shares represented 312,871 shares (2016: 312,871 shares and 2015: 15,319 shares) of USD 0.01 each at a total nominal value of USD 0.0m (2016: USD 0.0m and 2015: USD 0.0m) and a market value of USD 2.7m (2016: USD 2.8m 2015: USD 0.2m).

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OTHER LIABILITIES

12 Months Ended

Dec. 31, 2017

Disclosure Of Other Liabilities [Abstract]

OTHER LIABILITIES

NOTE 14 – OTHER LIABILITIES

USDm	2017	2016
Partners and commercial managements	1.4	2.0
Accrued operating expenses	8.5	5.2
Accrued interest	5.2	5.8
Wages and social expenses	16.3	14.6
Derivative financial instruments	-	4.8
Payables to joint ventures	0.1	0.1
Other	2.3	0.5
Balance as of 31 December	33.8	33.0

Please refer to note 21 for further information on fair value hierarchies.

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EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS

12 Months Ended

Dec. 31, 2017

Disclosure Of Effective Interest Rate, Outstanding Mortgage Debt And Bank Loans [Abstract]

EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS

NOTE 15 - EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS

In July 2015, TORM completed the Corporate Restructuring. This resulted in a Term Facility Agreement and a Working Capital Facility of USD 75m both expiring in 2021. In 2017, TORM agreed on an additional Term Facility Agreement with a syndicate of four banks expiring in 2022. Furthermore, TORM has a debt facility with Danish Ship Finance, the tranches of which expire in 2021 and 2022, and a debt facility with ING expiring in 2024. In 2018, TORM will take delivery of four new LR2 tankers. The Export Import Bank of China (CEXIM) has committed funding of up to USD 115m in a 12-year facility to finance these newbuildings. In 2019, TORM will take delivery of four new MR and two new LR1 tankers. Danish Ship Finance has committed funding of up to USD 81m in a 7-year facility to finance the four MR newbuildings.

As of 31 December 2017, no drawdowns had been made on the Working Capital Facility, the CEXIM Facility or the new USD 81m DSF Facility.

Please refer to note 2 for further information on the Company's liquidity and capital resources and note 19 and 20 for further information on interest rate swaps and financial risks.

The table below shows the effective interest and the value of the outstanding mortgage debt and bank loans.

		2017			2016			2015
USDm	Fixed/floating	Maturity	Effectiveinterest¹⁾	Carryingvalue²⁾	Maturity	Effectiveinterest¹⁾	Carryingvalue²⁾	Maturity	Effectiveinterest¹⁾	Carryingvalue²⁾
LOAN
DSF Facility 1 (USD)	Floating	2021	5.4%	74.3	2019	4.6%	109.4	2019	4,1%	125.7
TFA Facility 1 (USD)	Floating	2021	5.0%	400.8	2021	4.6%	470.0	2021	4.3%	548.9
DSF Facility 3 (USD)	Floating	2021	5.0%	56.5	2021	4.6%	62.2	2021	4,4%	66.6
DSF Facility 4 (USD)	Floating	2022	5.1%	26.8	2022	4.8%	30.0	2019	4,1%	26.0
TFA Facility 2 (USD)	Floating	2022	5.4%	115.0	N/A	N/A	-	N/A	N/A	-
ING (USD)	Floating	2024	4.6%	45.8	N/A	N/A	-	N/A	N/A	-
Weighted average effective interest rate			5.1%			4.6%			4.3%
Carrying value				719.1			671.6			767.2
Hereof non-current ²⁾				633.1			595.7			717.5
Hereof current ²⁾				86.0			75.9			49.7

¹⁾ Effective interest rate includes deferred and amortized bank fees.

²⁾ The carrying value of the Group's mortgage debt and bank loans is, due to their short-term nature of fixing of interest, approximate to fair value, and excludes amortized bank fees.

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COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS

12 Months Ended

Dec. 31, 2017

Disclosure Of Collateral [Abstract]

COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS

NOTE 16 – COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS

The total carrying amount for vessels that have been provided as security amounts to USD 1,259m at 31 December 2017 (2016: USD 1,115m, 2015: USD 1,329m).

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GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2017

Disclosure Of Commitments And Contingent Liabilities [Abstract]

GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 17 – GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES

The guarantee commitments of the Group are less than USD 0.1m (2016: USD 0.1m, 2015: USD 0.1m) and relate to guarantee commitments to Danish Shipowners' Association.

The Group is involved in certain legal proceedings and disputes. It is Management's opinion that the outcome of these proceedings and disputes will not have any material impact on the Group's financial position, results of operations and cash flows.

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CONTRACTUAL OBLIGATIONS

12 Months Ended

Dec. 31, 2017

Disclosure Of Contractual Commitments [Abstract]

CONTRACTUAL OBLIGATIONS

NOTE 18 – CONTRACTUAL OBLIGATIONS

TORM has various contractual obligations and commercial commitments to make future payments including lease obligations, purchase commitments, interest payments and repayment of mortgage debt and bank loans.

The following table summarizes the Company's contractual obligations at 31 December 2017.

USDm		2018	2019	2020	2021	2022	Thereafter	Total
Mortgage debt and bank loans	¹⁾	92.7	86.7	82.2	346.7	89.2	28.3	725.8
Interest payments related to scheduled interest fixing		20.4	14.4	12.1	8.9	0.4	-	56.2
Estimated variable interest payments	²⁾	11.9	13.6	12.2	9.1	2.6	2.0	51.4
Finance lease liabilities		2.9	3.2	3.4	3.7	15.0	-	28.2
Interest element regarding finance lease		2.3	2.0	1.7	1.4	0.3	-	7.7
Newbuilding installments	³⁾	144.2	162.7	-	-	-	-	306.9
Chartered-in vessels (operating lease)	⁴⁾	2.9	-	-	-	-	-	2.9
Other operating leases	⁵⁾	2.5	1.8	0.7	0.2	-	-	5.2
Trade payables and other obligations		51.5	-	-	-	-	-	51.5
Total		331.3	284.4	112.3	370.0	107.5	30.3	1,235.8

¹⁾ The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 4.8m (2016: USD 2.0m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 3.5m (2016: USD 1.3m).

²⁾ Variable interest payments are estimated based on the forward rates for each interest period.

³⁾ As of 31 December 2017, TORM had ten contracted newbuildings (2016: four) to be delivered during 2018-2019.

⁴⁾ Leases have been entered into with a mutually non-cancellable lease period of up to eight years. Certain leases include a profit-sharing element implying that the actual charter hire may be higher. The average period until redelivery of the vessels is 0.5 years (2016: 0.9 years). The leasing expense for 2017 amounts to USD 8.5m (2016: USD 21.5m, 2015: USD 12.0m) and is recognized under "Charter hire".

⁵⁾ Other operating leases primarily consist of contracts regarding office spaces, cars and apartments as well as IT-related contracts. The leasing expense for 2017 amounts to USD 2.3m (2016: USD 2.2m) and is recognized under "Administrative expenses".

 The following table summarizes the reconciliation of liabilities arising from financing activities:

		Cash		Non-cash
USDm	Opening balance as of 1 January 2017	Borrowings	Repayments	Changes in fair value	Other changes	End balance as of 31 December 2017
Mortgage debt	669.6	175.4	-125.5	0.7	0.7	720.9
Financial lease	13.6	30.2	-16.7	0.6	0.5	28.2
Swaps, fair value hedging	2.0	-	-1.4	-0.6	-	-
Total	685.2	205.6	-143.6	0.7	1.2	749.1

TORM has contractual rights to receive future payments as lessor of vessels on time charter and bareboat charter.

The following table summarizes the Company's contractual rights at 31 December 2017.

USDm		2018	2019	2020	2021	2022	Thereafter	Total
Contractual rights - as lessor:
Charter hire income for vessels	⁶⁾	45.5	4.7	-	-	-	-	50.2
Total		45.5	4.7	-	-	-	-	50.2

⁶⁾ Charter hire income for vessels on time charter and bareboat charter is recognized under "Revenue". The average period until redelivery of the vessels is 1.1 year (2016: 2.1 years).

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DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2017

Disclosure Of Derivative Financial Instruments Explanatory [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 19 – DERIVATIVE FINANCIAL INSTRUMENTS

USDm	2017	2016
Fair value of derivatives:
Derivative financial instruments regarding freight and bunkers:
Forward Freight Agreements	-0.2	-0.1
Bunker swaps	0.8	0.8
Derivative financial instruments regarding interest and currency exchange rate:
Forward exchange contracts	1.8	-4.6
Interest rate swaps	5.1	2.4
Fair value of derivatives as of 31 December	7.5	-1.5
Of which included in:
Other receivables	7.3	3.3
Other liabilities	0.2	-4.8

Please refer to Note 21 "Financial Instruments" for further information on fair value hierarchies.

Bunker swaps and forward freight agreements with a fair value of USD 0.6m (net) of a previously fixed hedge have been recognized in the income statement in 2017 (2016: USD 0.8m, 2015: USD -0.2m).

Forward exchange contracts with a fair value of USD 1.8m are designated as hedge accounting relationships to hedge a part of TORM's payments in 2018 regarding administrative and operating expenses denominated in DKK with a notional value of DKK 257.0m (2016: DKK 336.4m, 2015: DKK 235.1m).

Interest rate swaps with a fair value of USD 5.1m are designated as hedge accounting relationships to fix a part of TORM's interest payments during the period 2017 to 2022 with a notional value of USD 406.4m (2016: USD 373.8m, 2015: USD 382.3m).

The table below shows realized amounts as well as fair value adjustments regarding derivative financial instruments recognized in the income statements and equity in 2017, 2016 and 2015.

	Income statement			Equity
USDm	Revenue	Port expenses, bunkers and commissions	Financial items	Hedging reserves
2017
Forward Freight Agreements	0.5	-	-	-0.3
Bunker swaps	-	1.2	-	0.0
Forward exchange contracts	-	-	-1.4	4.4
Interest rate swaps	-	-	-2.0	2.7
Total	0.5	1.2	-3.4	6.9
2016
Forward Freight Agreements	-0.1	-	-	-0.2
Bunker swaps	-	0.0	-	1.0
Forward exchange contracts	-	-	0.1	-3.4
Interest rate swaps	-	-	-2.9	1.6
Total	-0.1	0.0	-2.8	-1.0
2015
Forward Freight Agreements	0.6	-	-	0.0
Bunker swaps	-	-0.9	-	-0.2
Forward exchange contracts	-	-	-	0.8
Interest rate swaps	-	-	-	0.8
Total	0.6	-0.9	-	1.4

Please refer to Note 20 for further information on commercial and financial risks.

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES

12 Months Ended

Dec. 31, 2017

Disclosure Of Risks Associated With Entities Activities [Abstract]

RISKS ASSOCIATED WITH TORM'S ACTIVITIES

NOTE 20 — RISKS ASSOCIATED WITH TORM'S ACTIVITIES

The risks can generally be divided into four main categories:

•         Long-term strategic risks

•         industry and market-related risks

•         operational and compliance risks

•         financial risks

The risks described under each of the four categories are considered to be among the most significant risks for TORM within each category.

LONG-TERM STRATEGIC RISKS

Industry-changing risks, such as the substitution of oil for other energy sources and radical changes in transportation patterns, are considered to have a relatively high potential impact but are long-term risks. Management continues to monitor long-term strategic risks to ensure the earliest possible mitigation of potential risks and develop necessary capabilities to exploit opportunities created by the same risks.

INDUSTRY AND MARKET RELATED RISKS

Industry and market-related risk factors relate to changes in the markets and in the political, economic and physical environment that Management cannot control such as freight rates and vessel and bunker prices.

FREIGHT RATE FLUCTUATIONS

The Company's income is principally generated from voyages carried out by its fleet of vessels. As such, TORM is exposed to the considerable volatility that characterizes freight rates for such voyages.

It is the Company's strategy to seek a certain exposure to this risk, as volatility also represents an opportunity because earnings historically have been higher in the day-to-day market compared to time charters. The fluctuations in freight rates for different routes may vary substantially. However, TORM is aiming at reducing the sensitivity to the volatility of such specific freight rates by actively seeking the optimal geographical positioning of the fleet and by optimizing the services offered to customers.

Tanker freight income is to a certain extent covered against general fluctuations through the use of physical contracts such as cargo contracts and time charter agreements with durations of 6-36 months. In addition, TORM uses financial instruments such as forward freight agreements (FFAs) with coverage of typically 0-24 months forward, based on market expectations and in accordance with the Company's risk management policies. In 2017, 12% (2016: 10%; 2015: 5%) of freight earnings deriving from the Company's tankers was secured in this way. Physical time charter contracts accounted for 66% (2016: 83%; 2015: 95%) of overall hedging. In 2017, the Company sold FFAs with a notional contract value of USD 44m (2016: USD 12m; 2015: USD 6m) and bought FFAs with a notional contract value of USD 12m (2016: USD 3m; 2015: USD 4m). The total notional contract volume sold in 2017 was 1,754,000 metric tons (2016: 781,000 metric tons; 2015: 215,000 metric tons) and the total notional volume bought was 530,000 metric tons (2016: 190,000 metric tons; 2015: 142,000 metric tons). At the end of 2017, the coverage for 2018 was 13% (2016: 12%; 2015: 8%).

FFA trade and other freight-related derivatives are subject to specific policies and guidelines approved by the Risk Committee, including trading limits, stop-loss policies, segregation of duties and other internal control procedures.

All things being equal and to the extent the Company's vessels have not already been chartered out at fixed rates, a freight rate change of USD/day 1,000 would lead to the following change in profit before tax based on the expected number of earning days for the coming financial year:

SENSITIVITY TO CHANGES IN FREIGHT RATES

USDm	2018	2017	2016
Decrease in freight rates of USD/day
1,000:
Changes in profit before tax	24.1	25.0	26.7
Changes in equity	24.1	25.0	26.7

SALES AND PURCHASE PRICE FLUCTUATIONS

As an owner of vessels, TORM is exposed to risk associated with changes in the value of the vessels, which can vary considerably during their useful lives. As of 31 December 2017, the carrying value of the fleet was USD 1,294m (2016: USD 1,344m). Based on broker valuations, TORM's fleet excluding undelivered newbuildings had a market value of USD 1,260m as of 31 December 2017 (2016: USD 1,260m). During 2017, TORM has sold three Handysize tankers and one MR tanker and bought two new MR tankers. Furthermore, TORM has ten vessels on order for delivery in 2018-2019 and options for purchase of an additional one LR1 tanker and three MR tankers.

BUNKER PRICE FLUCTUATIONS

The cost of fuel oil consumed by the vessels, known in the industry as bunkers, accounted for 55% of the total voyage costs in 2017 (2016: 50%; 2015: 57%) and is by far the biggest single cost related to a voyage.

TORM is exposed to fluctuations in bunker prices that are not reflected in the freight rates achieved by the Company. To reduce this exposure, TORM hedges part of its bunker requirements with oil derivatives.

Bunker trade is subject to specific risk policies and guidelines approved by the Risk Committee including trading limits, stop-loss, stop-gain and stop-at-zero policies, segregation of duties and other internal control procedures.

TORM applies hedge accounting to all bunker hedge contracts.

In 2017, 3.3% (2016: 0.9%; 2015: 0.2%) of TORM's bunker consumption was hedged through bunker hedging contracts. At the end of 2017, TORM had covered 2.1% (2016: 1.6%; 2015: 0.7%) of its bunker requirements for 2018 using hedging instruments.

All things being equal, a price change of 10% per ton of bunker oil (without subsequent changes in freight rates) would lead to the following change in expenditure based on the expected bunker consumption in the spot market.

SENSITIVITY TO CHANGES IN THE BUNKER PRICES

USDm	2018	2017	2016
Increase in the bunker prices of 10% per ton:
Changes in profit before tax	-18.3	-15.6	-12.8
Changes in equity	-18.3	-15.6	-12.8

OPERATIONAL AND COMPLIANCE RISKS

Operational risks are risks associated with the ongoing operations of the business and include risks such as safe operation of vessels, availability of experienced seafarers and staff, terrorism, piracy as well as insurance and counterparty risk.

INSURANCE COVERAGE

In the course of the fleet's operation, various casualties, accidents and other incidents may occur that may result in financial losses for TORM. For example, national and international rules, regulations and conventions mean that the Company may incur substantial liabilities in the event that a vessel is involved in an oil spill or emission of other environmentally hazardous agents.

In order to reduce the exposure to these risks, the fleet is insured against such risks to the extent possible. The total insurance program comprises a broad cover of risks in relation to the operation of vessels and transportation of cargo, including personal injury, environmental damage and pollution, cargo damage, third-party casualty and liability, hull and machinery damage, total loss and war. All of TORM's owned vessels are insured for an amount corresponding to their market value plus a margin to cover any fluctuations. Liability risks are covered in line with international standards. It is TORM's policy to cooperate with financially sound international insurance companies with a credit rating of BBB or better, presently some 14-16 companies, along with two P&I clubs, to diversify risk. The P&I clubs are member of the internationally recognized collaboration, International Group of P&I clubs, and the Company's vessels are each insured for the maximum amount available in the P&I system. At the end of 2017, the aggregate insured value of hull and machinery and interest for TORM's owned vessels amounted to USD 1.4 billion (2016: USD 1.6 billion; 2015: USD 2.0 billion).

COUNTERPARTY RISK

Counterparty risk is an ever-present challenge demanding close monitoring to manage and decide on actions to minimize possible losses. The maximum counterparty risk associated is equal to the values recognized in the balance sheet. A consequential effect of the counterparty risk is loss of income in future periods, e.g. counterparties not being able to fulfill their responsibilities under a time charter, a contract of affreightment or an option. The main risk is the difference between the fixed rates under a time charter or a contract of affreightment and the market rates prevailing upon default.

The Company has a close focus on its risk policies and procedures to ensure that risks managed in the day-to-day business are kept at agreed levels and that changes in the risk situations are brought to Management's attention.

The Company's counterparty risks are primarily associated with:

•         Receivables, cash and cash equivalents

•         Contracts of affreightment with a positive fair value

•         Derivative financial instruments and commodity instruments with positive fair value

Receivables, cash and cash equivalents

The majority of TORM's customers are companies that operate in the oil industry. It is assessed that these companies are, to a great extent, subject to the same risk factors as those identified for TORM.

A major part of the Company's freight revenues stems from a small group of customers. One customer accounted for 8.2% of the freight revenues in 2017 (2016: 12.6%; 2015: 12.6%). The concentration of earnings on a few customers requires extra attention to credit risk. TORM has a credit policy under which continued credit evaluations of new and existing customers take place. For long-standing customers, payment of freight normally takes place after a vessel's cargo has been discharged. For new and smaller customers, the Company's credit risk is limited, as freight is usually paid prior to the cargo's discharge, or, alternatively, that a suitable bank guarantee is placed in lieu thereof.

As a consequence of the payment patterns mentioned above, the Company's receivables primarily consist of receivables from voyages in progress at year-end and, to a lesser extent, of outstanding demurrage. For the past five years, the Company has not experienced any significant losses in respect of charter payments or any other freight agreements. With regard to the collection of demurrage, the Company's average stands at 97.0% (2016: 96.8%; 2015: 96%), which is considered to be satisfactory given the differences in interpretation of events. In 2017, demurrage represented 16.8% (2016: 15.0%; 2015: 17.7%) of the total freight revenues.

Excess liquidity is placed on deposit accounts with major banks with strong and acceptable credit ratings or invested in secure papers such as American or Danish government bonds. Cash is invested with the aim of getting the highest possible yield while maintaining a low counterparty risk and adequate liquidity reserves for possible investment opportunities or to withstand a sudden drop in freight rates.

Derivative financial instruments and commodity instruments

In 2017, 65% (2016: 93%; 2015: 100%) of TORM's forward freight agreements (FFAs) and fuel swaps were cleared through NASDAQ, effectively reducing counterparty credit risk by daily clearing of balances. Over-the-counter fuel swaps have restrictively been entered into with major oil companies, banks or highly reputed partners with a satisfactory credit rating. TORM also trades FX and interest derivatives. All such derivatives were done with investment grade counterparties..

FINANCIAL RISKS

Financial risks relate to the Company's financial position, financing and cash flows generated by the business, including foreign exchange risk and interest rate risk. The Company's liquidity and capital resources are described in Note 2.

FOREIGN EXCHANGE RISK

TORM uses USD as its functional currency because the majority of the Company's transactions are denominated in USD. The foreign exchange risk is thereby limited to cash flows not denominated in USD. The primary risk relates to transactions denominated in DKK, EUR and SGD and relates to administrative and operating expenses.

The part of the Company's expenses that are denominated in currencies other than USD accounts for approximately 98% (2016: 99%; 2015: 98%) for administrative expenses and approximately 25% (2016: 27%; 2015: 26%) for operating expenses.

Approximately 62% (2016: 74%, 2015: 55%) of TORM's administrative and operating expenses in DKK and EUR in 2018 are hedged through FX forward contracts. TORM assumes identical currency risks arising from exposures in DKK and EUR.

SENSITIVITY TO CHANGES IN THE USD/DKK AND USD/EUR EXCHANGE RATE

All things being equal, a change in the USD/DKK and USD/EUR exchange rate of 10% would result in a change in profit before tax and equity as follows:

USDm	2018	2017	2016
Effect of a 10% increase of DKK and EUR:
Changes in profit before tax	-2.5	-1.7	-2.8
Changes in equity	-2.5	-1.7	-2.8

INTEREST RATE RISK

TORM's interest rate risk generally relates to interest-bearing mortgage debt and bank loans. All of the Company's loans for financing vessels are denominated in USD, and all are floating rate loans. At the end of 2017, TORM has fixed 63% of the interest exposure for 2018 (2016: 68%; 2015: 65%). The fixing is a result of floating rate loans, where USD 3 or 6 months Libor were fixed in 2017 into 2018 and interest hedging through interest rate swaps.

SENSITIVITY TO CHANGES IN INTEREST RATES

All things being equal, a change in the interest rate level of 1%-point would result in a change in the interest rate expenses as follows:

USDm	2018	2017	2016
Effect of a 1%-point increase in interest rates:
Changes in profit before tax	-3.2	-2.5	-3.3
Changes in equity	3.6	6.8	9.5

TORM's interest-bearing debt increased from year-end 2016 to year-end 2017 by USD 47m (2016: decrease of USD 95m; 2015: increase of USD 639m) to USD 719m (2016: USD 672m; 2015: USD 767m).

LIQUIDITY RISK

TORM's strategy is to ensure continuous access to funding sources by maintaining a robust capital structure and a close relationship with several financial partners. As of 31 December 2017, TORM's loan portfolio was spread across nine different banks.

As of 31 December 2017, TORM maintains a liquidity reserve of USD 134m in cash, combined with USD 75m in undrawn revolving credit facilities. Cash is only placed in banks with a high credit rating.

For further information on contractual obligations, including a maturity analysis, please refer to Note 18.

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FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2017

Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract]

FINANCIAL INSTRUMENTS

NOTE 21 – FINANCIAL INSTRUMENTS

Categories of financial assets and liabilities (USDm):		Quotedprices(level 1)	Observableinput(level 2)	Unobservableinput(level 3)	Fair valueTotal	Amortized cost	Carrying value
2017:
Loans and receivables
Freight receivables	¹⁾	-	-	-	-	71.3	71.3
Other receivables		-	7.6	-	7.6	4.2	11.8
Cash and cash equivalents	¹⁾	-	-	-	-	134.2	134.2
Total		-	7.6	-	7.6	209.7	217.3
Financial liabilities
Mortgage debt and bank loans	²⁾	-	-	-	-	720.9	720.9
Finance lease liabilities	¹⁾	-	-	-	-	28.2	28.2
Trade payables	¹⁾	-	-	-	-	26.2	26.2
Other liabilities	¹⁾	-	-0.2	-	-0.2	34.0	33.8
Total		-	-0.2	-	-0.2	809.3	809.1
2016:
Loans and receivables
Freight receivables	¹⁾	-	-	-	-	62.5	62.5
Other receivables		-	3.3	-	3.3	4.8	8.1
Cash and cash equivalents	¹⁾	-	-	-	-	76.0	76.0
Total		-	3.3	-	3.3	143.3	146.6
Financial liabilities
Mortgage debt and bank loans	²⁾	-	-	-	-	669.6	669.6
Finance lease liabilities	¹⁾	-	-	-	-	13.6	13.6
Trade payables	¹⁾	-	-	-	-	28.5	28.5
Other liabilities	¹⁾	-	4.8	-	4.8	28.3	33.1
Total		-	4.8	-	4.8	740.0	744.8

¹⁾ Due to the short maturity, the carrying value is considered to be an appropriate expression of the fair value.

²⁾ See note 15.

There have been no transfers between level 1 and 2.

FAIR VALUE HIERARCHY FOR FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE IN THE BALANCE SHEET

Below shows the fair value hierarchy for financial instruments measured at fair value in the balance sheet. The financial instruments in question are grouped into levels 1 to 3 based on the degree to which the fair value is observable.

· Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities

· Level 2 fair value measurements are those derived from input other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)

· Level 3 fair value measurements are those derived from valuation techniques that include input for the asset or liability that are not based on observable market data (unobservable input)

METHODS AND ASSUMPTIONS IN DETERMINING FAIR VALUE OF FINANCIAL INSTRUMENTS

Derivative part of other receivables and other payables

The fair value of derivatives in other receivables and other payables is measured using accepted valuation methods with input variables such as yield curves, forward curves, spreads, etc. The valuation methods discount the future fixed and estimated cash flows and valuation of any option elements.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2017

Disclosure of transactions between related parties [abstract]

RELATED PARTY TRANSACTIONS

NOTE 22 – RELATED PARTY TRANSACTIONS

The Company's ultimate controlling party is Oaktree Capital Group, LLC, a limited liability company incorporated in the USA. The immediate controlling shareholder is Njord Luxco.

Shareholders' contribution and dividends paid are disclosed in the consolidated statement of changes in equity.

The remuneration of key management personnel, which consists of the Board of Directors and the Executive Director, is disclosed in Note 4.

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NON-CURRENT ASSETS SOLD DURING THE YEAR

12 Months Ended

Dec. 31, 2017

Disclosure Of Noncurrent Assets Sold During Year [Abstract]

NON-CURRENT ASSETS SOLD DURING THE YEAR

NOTE 23 – NON-CURRENT ASSETS SOLD DURING THE YEAR

During 2017, TORM sold eight vessels, of which four were delivered to the new owners during 2017, one vessel is expected to be delivered in Q1 2018 (presented as "assets held-for-sale" as of 31 December 2017) and the remaining three vessels were sold and leased back to TORM as finance leases. The sales resulted in a profit from sale of vessels of USD 2.8m and an impairment on sold or held-for-sale vessels of USD 3.6m.

There was no sale of vessels in 2016.

During 2015, TORM sold its two remaining bulk vessels for USD 18m in connection with the wind-down of the Company's bulk activities. Both vessels were delivered to the new owners during 2015. The sales did not result in any gain or losses.

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CASH FLOWS

12 Months Ended

Dec. 31, 2017

Disclosure Of Cash Flow Statement [Abstract]

CASH FLOWS

NOTE 24 – CASH FLOWS

USDm	2017	2016	2015
Reversal of other non-cash movements:
Amortization of acquired assets and liabilities	-	-0.1	-0.7
Exchange rate adjustments	1.8	-2.4	-0.1
Share-based payments	1.9	2.0	-
Equity transactions expensed in relation to the Corporate Reorganization	-	-6.4	-
Other adjustments	-	-0.2	-0.1
Total	3.7	-7.1	-0.9

USDm	2017	2016	2015
Change in bunkers, receivables and payables:
Change in bunkers	-1.6	-6.1	15.6
Change in receivables	-12.4	18.1	6.1
Change in prepayments	-1.4	2.7	4.9
Change in trade payables and other liabilities	-4.5	-5.4	-11.9
Adjusted for fair value changes of derivative financial instruments	6.9	-1.0	2.2
Total	-13.0	8.3	16.9

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ENTITIES IN THE GROUP

12 Months Ended

Dec. 31, 2017

Disclosure of information about consolidated structured entities [abstract]

ENTITIES IN THE GROUP

NOTE 25 – ENTITIES IN THE GROUP

Entity	Country
TORM plc	United Kingdom
Investments in subsidiaries ⁸⁾:
Entity	Country	Ownership ⁷⁾
TORM A/S ¹⁾	Denmark	100%
DK Vessel HoldCo GP ApS ¹⁾	Denmark	100%
DK Vessel HoldCo K/S ¹⁾	Denmark	100%
OCM (Gibraltar) Njord Midco Ltd	Gibraltar	100%
OCM Njord Chartering Inc	Marshall Islands	100%
OCM Singapore Njord Holdings Agnes, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Alice, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Almena, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Amalie, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Aslaug, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Hardrada, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings St.Michaelis Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings St. Gabriel Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Harald Pte. Ltd ⁵⁾	Singapore	100%
OCM Singapore Njord Holdings Gorm Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Knut Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Valdemar Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Agnete, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Alexandra, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Anabel, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Arawa Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Leif Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Rolf Pte. Ltd ⁵⁾	Singapore	100%

Investments in subsidiaries ⁸⁾ - continued:
Entity	Country	Ownership ⁷⁾
OCM Holdings Mrs Inc.	Marshall Islands	100%
OCM Njord Anne Inc.	Marshall Islands	100%
OCM Njord Freya Inc.	Marshall Islands	100%
OCM Njord Gerd Inc.	Marshall Islands	100%
OCM Njord Gertrud Inc.	Marshall Islands	100%
OCM Njord Gunhild Inc.	Marshall Islands	100%
OCM Njord Helene Inc.	Marshall Islands	100%
OCM Njord Helvig Inc.	Marshall Islands	100%
OCM Njord Ingeborg Inc.	Marshall Islands	100%
OCM Njord Mary Inc.	Marshall Islands	100%
OCM Njord Ragnhild Inc.	Marshall Islands	100%
OCM Njord Thyra Inc.	Marshall Islands	100%
OCM Njord Valborg Inc.	Marshall Islands	100%
OCM Njord Vita Inc.	Marshall Islands	100%
OMI Holding Ltd. ¹⁾ ⁶⁾	Mauritius	100%
Torghatten & TORM Shipowning ApS ¹⁾ ⁵⁾	Denmark	100%
TORM Brasil Consultoria em Transporte Maritimo LTDA. ¹⁾ ⁴⁾	Brazil	100%
TORM Crewing Service Ltd.¹⁾	Bermuda	100%
TORM Shipping India Private Limited ¹⁾	India	100%
TORM Singapore Pte. Ltd. ¹⁾	Singapore	100%
TORM USA LLC ¹⁾	USA	100%
TT Shipowning K/S ¹⁾ ⁵⁾	Denmark	100%
VesselCo 1 K/S ¹⁾	Denmark	100%

Investments in subsidiaries ⁸⁾ - continued:
Entity	Country	Ownership ⁷⁾
VesselCo 2 Pte. Ltd. ¹⁾4⁾	Singapore	100%
VesselCo 3 K/S ¹⁾	Denmark	100%
VesselCo 4 Pte. Ltd. ¹⁾4⁾	Singapore	100%
VesselCo 5 K/S ¹⁾ ³⁾	Denmark	100%
VesselCo 6 Pte. Ltd.¹⁾	Singapore	100%
VesselCo 7 Pte. Ltd. ¹⁾	Singapore	100%
VesselCo 8 Pte. Ltd. ¹⁾	Singapore	100%
VesselCo 9 Pte. Ltd. ²⁾	Singapore	100%
VesselCo 10 Pte. Ltd. ²⁾	Singapore	100%
VesselCo 11 Pte. Ltd. ²⁾	Singapore	100%
VesselCo 12 Pte. Ltd. ³⁾	Singapore	100%
TORM Shipping (Phils.), Inc. ¹⁾	Philippines	25%
VesselCo A ApS ¹⁾	Denmark	100%
VesselCo C ApS ¹⁾	Denmark	100%
VesselCo E ApS ³⁾	Denmark	100%
1) Entities added in the financial year ended 31 December  2015.
2) Entities added in the financial year ended 31 December 2016.
3) Entities added in the financial year ended 31 December 2017.
4) Entities dissolved in the financial year ended 31 December 2015.
5) Entities dissolved in the financial year ended 31 December 2016.
6) Entities dissolved in the financial year ended 31 December 2017.
7) For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.) INC where voting rights are 100%.
8) All subsidiaries are consolidated in full.

The table below shows the registered addresses for the companies mentioned above:

Denmark	India	Philippines	Singapore
Tuborg Havnevej 18,	2nd Floor	7th Floor	6 Battery Road #27-02
DK-2900 Hellerup	Leela Business Park	Salcedo Towers, 169	Singapore 049909
Denmark	Andheri-Kurla Road	HV dela Costa Street	Singapore
	Andheri (E)	Salcedo Village,
	Mumbai 400059	Makati City
	India	Philippines 1227
United Kingdom	USA	Marshall Islands	Mauritius
Birchin Court	Suite 710	c/o The Trust	c/o Temple Corporate
20 Birchin Lane	2500 City West	Company of	Services
London, EC3V 9DU	Boulevard	Marshall Islands, Inc.	Temple Court 2,
United Kingdom	77042, Houston , Texas	P.O. Box 2095	Labourdonnais Street
	USA	Reston VA 20195-0095	Port Louis
		USA	Mauritius
Bermuda	Gibraltar	Brazil
c/o Estera Services	57/63 Line Wall Road	Avenida Rio Branco
(Bermuda Limited)	GX11 1AA	01-1201
Canon's Court	Gibraltar	CEP 200090-003
22 Victoria Street		Rio de Janeiro
PO Box 1624		Brazil
Hamilton HM GX
Bermuda

 

Interest in legal entities included as joint ventures:
			2017
Entity	Country	% Control	Profit andloss fromcontinuingoperations	Other compre-hensiveincome	Total compre-hensiveincome
Long Range 2 A/S	Denmark	50%	-	-	-
LR2 Management K/S	Denmark	50%	-	-	-

For registered addresses, please refer to the table above.

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EARNINGS PER SHARE & DIVIDEND PER SHARE

12 Months Ended

Dec. 31, 2017

Disclosure Of Earnings Per Share And Dividend Per Share [Abstract]

EARNINGS PER SHARE & DIVIDEND PER SHARE

NOTE 26 – EARNINGS PER SHARE & DIVIDEND PER SHARE

	2017	2016	2015
EARNINGS PER SHARE
Net profit/(loss) for the year (USDm)	2.4	-142.5	126.0
Million shares
Average number of shares	62.3	63.1	51.7
Average number of treasury shares	-0.3	-0.2	-
Average number of shares outstanding	62.0	62.9	51.7
Dilutive effect of outstanding share options	-	-	-
Average number of shares outstanding incl. dilutive effect of share options	62.0	62.9	51.7
Basic earnings/(loss) per share (USD)	0.04	-2.3	2.4
Diluted earnings/(loss) per share (USD)	0.04	-2.3	2.4

When calculating diluted earnings per share for 2017, RSUs have been omitted as they are out-of-the-money and thus anti-dilutive, but the RSUs may potentially dilute earnings per share in the future. Please refer to note 4 for information on the RSU share options.

	2017	2016	2015
DIVIDEND PER SHARE
Dividend for the year (USDm)	1.2	25.0	-
Number of shares, end of period (million)	62.3	62.3	63.8
Dividend per share	0.02	0.40	-

There is no proposed dividend as of 31 December 2017.

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BUSINESS COMBINATIONS IN 2015

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about business combination [abstract]

BUSINESS COMBINATIONS IN 2015

NOTE 27 — BUSINESS COMBINATIONS IN 2015

TORM A/S' Restructuring was completed on 13 July 2015 and included inter alia a contribution by OCM Njord Holdings S.à.r.l. ("Njord Luxco") of its 100% owned subsidiary Njord to TORM A/S in exchange for a controlling interest in TORM A/S.

Following the implementation of the Restructuring, Njord Luxco, held 61.99% of the voting rights (excluding the voting rights attached to the C Share) in TORM A/S, and its subsidiaries, including Njord and Njord's subsidiaries (the "Combined Group"), and controlled the Combined Group in accordance with IFRS 10 "Consolidated financial statements", as it controlled the majority of the voting rights in the Combined Group. Accordingly, the contribution of Njord by Njord Luxco in exchange for a controlling interest in the Combined Group was accounted for as a reverse acquisition in accordance with IFRS 3, "Business Combinations", which means that for financial reporting purposes, Njord was considered the accounting acquirer and the continuing reporting entity.

Consequently, the consolidated financial statements of TORM following the Restructuring were a continuation of the financial statements of Njord as the reporting continuing entity, despite TORM A/S being the legal acquirer and the continuing publicly listed company.

Njord's purchase price for a controlling interest in TORM A/S is calculated as the fair value of the interest in Njord that the existing shareholders and warrant holders of TORM A/S would have received, had the business combination of TORM A/S and Njord not been a reverse acquisition. The value is based on the value agreed between TORM A/S, Njord Luxco and certain of TORM A/S' pre- Restructuring shareholders and lenders for the purposes of determining the ownership interest in TORM A/S obtained by Njord Luxco in exchange for the contribution of Njord.

Goodwill that arose in the combination related to the benefit of expected synergies from combining operations of the acquiree and the acquirer. These benefits were not recognized separately from goodwill, because they did not meet the recognition criteria for identifiable intangible assets.

The freight and other receivables acquired with a total fair value of USD 60.0m had a gross contractual amount of USD 61.9m. The best estimate at the acquisition date of the contractual cash flows not to expected to be collected is USD 1.9m.

No acquisition-related costs were incurred.

Since the acquisition date, revenue of USD 390.8m and profit for the period ended 31 December 2015 of USD 88.2m are included in the consolidated income statement in 2015.

Had the business combination been effected as of 1 January 2015, the revenue of the combined Group would have been USD 854.3m and the profit for the year would have been USD 186.7m in 2015.

Assets acquired and liabilities assumed in the business combination at fair value
USDm
Tangible fixed assets	859.9
Investment in joint ventures	0.3
Bunkers	27.8
Freight receivables	53.4
Other receivables	6.6
Prepayments	10.6
Cash and cash equivalents	77.5
Deferred tax liabilities	-45.1
Mortgage debt and bank loans	-560.7
Finance lease liabilities	-13.5
Trade payables	-27.3
Current tax liabilities	-1.4
Other liabilities	-29.7
Time charter contracts	-1.6
Deferred income	-0.4
Net assets acquired	356.4
Goodwill	11.4
Consideration (purchase price)	367.8
Of which:
Shares	349.8
Warrants	18.0
	367.8

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ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Policies)

12 Months Ended

Dec. 31, 2017

Disclosure Of Accounting Policies Critical Accounting Estimates And Judgements [Abstract]

Consolidation principles

Consolidation principles

The consolidated financial statements comprise the financial statements of the Parent Company, TORM plc, and entities controlled by the Company and its subsidiaries. Control is achieved when the Company:

·          has the power over the investee; and

·          is exposed, or has the right to variable returns from involvement with the investee; and

·          has the ability to use its power to affect its returns

The Company should reassess whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities unilaterally. The Company considers all facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

·          the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders

·          potential voting rights held by the Company, other vote holders or other parties

·          rights arising from other contractual arrangements, and

·          any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time when decisions need to be made, including voting pattern at previous shareholders' meetings

Entities in which the Group exercises significant but not controlling influence are regarded as associated companies and are accounted for using the equity method.

Companies which are managed jointly by agreement with one or more companies and therefore are subject to joint control (joint ventures) are accounted for using the equity method.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ends when the Company loses control over the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated income statement and other comprehensive income from the date on which the Company obtains control until the date when the Company loses control over the subsidiary.

The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company, its subsidiaries and the Company's share of the income statement and balance sheet of joint operations by combining items of a uniform nature and eliminating intercompany transactions, balances and shareholdings as well as realized and unrealized gains and losses on transactions between the consolidated entities. The financial statements used for consolidation purposes are prepared in accordance with the Company's accounting policies.

The consolidated financial statements following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but as a continuation of the financial statements of the legal subsidiary (accounting acquirer). The accounting acquirer's legal capital is adjusted retrospectively to reflect the legal capital of the accounting acquiree. Comparative information is adjusted accordingly.

Business combinations

Business combinations

Newly acquired or formed entities are recognized in the consolidated financial statements from the date of acquisition or formation. The date of acquisition is the date on which control over the entity is effectively transferred.

Business combinations are accounted for by applying the purchase method, whereby the acquired entities' identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. The tax effect of the revaluation activities is also taken into account. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the amount of that adjustment is included in the cost of the combination if the event is probable and the adjustment can be measured reliably. Costs of issuing debt or equity instruments in connection with a business combination are accounted for together with the debt or equity issuance. All other costs associated with the acquisition are expensed in the income statement.

In reverse acquisitions the purchase price of a business combination is measured as the fair value of the consideration agreed upon. The purchase price in a reverse acquisition is calculated as the fair value of the interest in the accounting acquirer that the existing shareholders of the accounting acquiree would have received, had the business combination not been a reverse acquisition.

The excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities is recognized as goodwill under intangible assets and is tested for impairment at least once every year. Upon acquisition, goodwill is allocated to the cash generating units, which subsequently form the basis for the impairment test. If the fair value of the acquired assets, liabilities and contingent liabilities exceeds the cost of the business combination, the identification of assets and liabilities and the processes of measuring the fair value of the assets and liabilities and the cost of the business combination are reassessed. If the fair value of the business combination continues to exceed the cost, the resulting gain is recognized in the income statement.

Foreign currencies

Foreign currencies

The functional currency of all significant entities, including subsidiaries and associated companies, is United State dollars (USD), because the Company's vessels operate in international shipping markets, in which income and expenses are settled in USD, and because the Companies most significant assets and liabilities in the form of vessels and related liabilities are denominated in USD. Transactions in currencies other than the functional currency are translated into the functional currency at the transaction date. Cash, receivables and payables and other monetary items denominated in currencies other than the functional currency are translated into the functional currency at the exchange rate at the balance sheet date. Gains or losses due to differences between the exchange rate at the transaction date and the exchange rate at the settlement date or the balance sheet date are recognized in the income statement under "Financial income" and "Financial expenses".

An exchange rate gain or loss relating to a non-monetary item carried at fair value is recognized in the same line as the fair value adjustment.

The reporting currency of the Company is USD. Upon recognition of entities with functional currencies other than USD, the financial statements are translated into USD. Income statement items are translated into USD at the average exchange rates for the year, whereas balance sheet items are translated at the exchange rates as of the balance sheet date. Exchange differences arising from the translation of financial statements into USD are recognized as a separate component through other comprehensive income. On the disposal of an entity, the cumulative amount of the exchange differences recognized in the separate component of equity relating to that entity is transferred to the income statement as part of the gain or loss on disposal.

Derivative financial instruments

Derivative financial instruments

Derivative financial instruments, primarily forward currency exchange contracts, forward freight agreements and forward contracts regarding bunker purchases, are entered to hedge future committed or anticipated transactions. TORM applies hedge accounting under the specific rules on cash flow hedges when appropriate.

Derivative financial instruments are initially recognized in the balance sheet at fair value at the date when the derivative contract is entered into and are subsequently measured at their fair value as other receivables or other liabilities, respectively.

Changes in the fair value of derivative financial instruments that are designated as cash flow hedges and deemed to be effective are recognized directly in "Other comprehensive income". When the hedged transaction is recognized in the income statement, the cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement and included in the same line as the hedged transaction. However, when the hedged transaction results in the recognition of a fixed asset, the gains and losses previously accumulated in "Other comprehensive income" are transferred from "Other comprehensive income" and included in the initial measurement of the cost of the fixed asset. Changes in the fair value of a portion of a hedge deemed to be ineffective are recognized in the income statement.

Changes in the fair value of derivative financial instruments that are not designated as hedges are recognized in the income statement. While effectively reducing cash flow risk in accordance with the Company's risk management policy, interest rate swaps with cap features and certain forward freight agreements and forward contracts regarding bunker purchases do not qualify for hedge accounting. Changes in fair value of these derivate financial instruments are therefore recognized in the income statement under "Financial income" or "Financial expenses" for interest rate swaps with cap features, under "Revenue" for forward freight agreements and under "Port expenses, bunkers and commissions" for forward bunker contracts.

Segment information

Segment information

In 2015, TORM consisted of two business segments: The Tanker Segment and Bulk Segment. Due to divestment of the Bulk Segment during 2015, only the Tanker Segment remains for 2016 and 2017.

The segmentation is based on the Group's internal management and reporting structure. In the Tanker Segment, the services provided primarily comprise transportation of refined oil products such as gasoline, jet fuel and naphtha.

The Group has only one geographical segment, because the Company considers the global market as a whole, and as the individual vessels are not limited to specific parts of the world. Furthermore, the internal management reporting does not provide such information. Consequently, it is not possible to provide geographical segment information on revenue from external customers or non-current segment assets.

The segment income statement comprises income and expenses which are directly attributable to the segment. Not allocated items primarily comprise assets and liabilities as well as revenues and expenses relating to the Company's administrative functions and investment activities, including cash and bank balances, interest-bearing debt, income tax, deferred tax, etc.

The accounting policies applied for the segments regarding recognition and measurement are consistent with the policies for TORM as described in this note.

Employee benefits

Employee benefits

Wages, salaries, social security contributions, holiday and sick leave, bonuses and other monetary and non-monetary benefits are recognized in the year in which the employees render the associated services. Please also refer to the accounting policy for share-based payment.

Pension plans

Pension plans

The Group has entered into defined contribution plans only. Pension costs related to defined contribution plans are recorded in the income statement in the year to which they relate.

Leases

Leases

Agreements to charter in vessels and to lease other plant and operating equipment for which TORM substantially has all the risks and rewards of ownership are recognized in the balance sheet as finance leases. Lease assets are measured at the lower of fair value and the present value of minimum lease payments determined in the leases.

For the purpose of calculating the present value, the interest rate implicit in the lease or an incremental borrowing rate is used as discount factor. The lease assets are depreciated and written down under the same accounting policy as the vessels owned by the Company or over the lease period depending on the lease terms.

The corresponding lease obligation is recognized as a liability in the balance sheet, and the interest element of the lease payment is charged to the income statement as incurred.

Other charter agreements concerning vessels and other leases are classified as operating leases, and lease payments are charged to the income statement on a straight-line basis over the lease term. The obligation for the remaining lease term is disclosed in the notes to the financial statements.

Agreements to charter out vessels for which substantially all the risks and rewards of ownership are transferred to the lessee are classified as finance leases, and an amount equal to the net investment in the lease is recognized and presented in the balance sheet as a receivable. The carrying amount of the vessel is derecognized, and any gain or loss on disposal is recognized in the income statement. Other agreements to charter out vessels are classified as operating leases, and lease income is recognized in the income statement on a straight-line basis over the lease term.

Revenue

Revenue

Income is recognized in the income statement when:

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

·          The income can be measured reliably

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

·          Costs relating to the transaction can be measured reliably

Revenue comprises freight, charter hire and demurrage revenues from the vessels and gains and losses on forward freight agreements designated as hedges. Revenue is recognized when it meets the general criteria mentioned above, and when the stage of completion can be measured reliably. Accordingly, freight, charter hire and demurrage revenue are recognized at selling price upon delivery of the service as per the charter parties concluded.

Cross-over voyages

Revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. For cross-over voyages (voyages in progress at the end of a reporting period), the uncertainty and the dependence on estimates are greater than for finalized voyages. The Company recognizes a percentage of the estimated revenue for the voyage equal to the percentage of the estimated duration of the voyage completed at the balance sheet date. The estimate of revenue is based on the expected duration and destination of the voyage. Voyage expenses are recognized as incurred.

When recognizing revenue, there is a risk that the actual number of days it takes to complete the voyage will differ from the estimate, and for time charter parties a lower day rate may have been agreed for additional days. The contract for a single voyage may state several alternative destination ports. The destination port may change during the voyage, and the rate may vary depending on the destination port. Changes to the estimated duration of the voyage as well as changing destinations and weather conditions will affect the voyage expenses.

Demurrage revenue

Freight contracts contain conditions regarding the amount of time available for loading and discharging of the vessel. If these conditions are breached, TORM is compensated for the additional time incurred in the form of demurrage revenue. Demurrage revenue is recognized upon delivery of services in accordance with the terms and conditions of the charter parties. Upon completion of the voyage, the Company assesses the time spent in port, and a demurrage claim based on the relevant contractual conditions is submitted to the charterers.

The claim will often be met by counterclaims due to differences in the interpretation of the agreement compared to the actual circumstances of the additional time used. Based on previous experience, 95% of the demurrage claim submitted is recognized as demurrage revenue upon initial recognition. The Company receives the demurrage payment upon reaching final agreement on the amount, which on average is approximately 100 days after the original demurrage claim was submitted. Any adjustments to the final agreement are recognized as demurrage revenue.

Port expenses, bunkers and commissions

Port expenses, bunker fuel consumption and commissions are recognized as incurred. Gains and losses on forward bunker contracts designated as hedges and write-down and provisions for losses on freight receivables are included in this line.

Freight and bunker derivatives

Freight and bunker derivatives comprise fair value adjustments and gains and losses on forward freight agreements, forward bunker contracts and other derivative financial instruments directly relating to shipping activities which are not designated as hedges. The freight and bunker derivatives that qualify for hedge accounting are recognized in Revenue and Port expense, bunkers and commissions respectively, as the hedging instrument is realized.

Charter hire

Charter hire comprises expenses related to the chartering in of vessels under operating leases which have been incurred in order to achieve the net revenue for the year.

Operating expenses

Operating expenses

Operating expenses, which comprise crew expenses, repair and maintenance expenses and tonnage duty, are expensed as incurred.

Profit from sale of vessels

Profit from sale of vessels is recognized when the significant risks and rewards of ownership have been transferred to the buyer, representing the difference between the sales price less cost to sell and the carrying value of the vessel.

Administrative expenses

Administrative expenses, which comprise administrative staff costs, management costs, office expenses and other expenses relating to administration, are expensed as incurred.

Other operating expenses

Other operating expenses primarily comprise chartering commissions and management fees paid to commercial and technical managers for managing the fleet and to a lesser extent profits and losses deriving from the disposal of other plant and operating equipment.

Depreciation and impairment losses

Depreciation and impairment losses

Depreciation and impairment losses comprise depreciation of tangible fixed assets for the year as well as the write-down of the value of assets by the amount by which the carrying amount of the asset exceeds its recoverable amount. In the event of indication of impairment, the carrying amount is assessed, and the value of the asset is written down to its recoverable amount equal to the higher of value in use based on net present value of future earnings from the assets and its fair value less cost to sell.

Financial income

Financial income

Financial income comprises interest income, realized and unrealized exchange rate gains relating to transactions in currencies other than the functional currency, realized gains from other equity investments and securities, unrealized gains from securities, dividends received and other financial income including value adjustments of certain financial instruments not accounted for as hedges of future transactions.

Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate. Dividends from other investments are recognized when the right to receive payment has been decided, which is typically when the dividend has been declared and can be received without conditions.

Financial expenses

Financial expenses

Financial expenses comprise interest expenses, financing costs of finance leases, realized and unrealized exchange rate losses relating to transactions in currencies other than the functional currency, realized losses from other equity investments and securities, unrealized losses from securities and other financial expenses including value adjustments of certain financial instruments not accounted for as hedges of future transactions.

Interest is recognized in accordance with the accrual basis of accounting taking into account the effective interest rate.

Tax

Tax

Tax expenses comprise the expected tax including tonnage tax on the taxable income for the year for the Group, adjustments relating to previous years and the change in deferred tax for the year. However, tax relating to items in other comprehensive income is recognized directly in the statement of other comprehensive income.

Goodwill

Goodwill

Goodwill is measured as the excess of the cost of the business combination over the fair value of the acquired assets, liabilities and contingent liabilities and is recognized as an asset under intangible assets. Goodwill is not amortized as it is considered to have an indefinite useful life, but the recoverable amount of goodwill is assessed at least once a year. For impairment testing purposes, goodwill is on initial recognition allocated to the cash generating unit expected to benefit from the synergies of the combination. If the recoverable amount of the cash generating unit is less than the carrying amount of the unit, the impairment loss is first allocated to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss for goodwill is not reversed in a subsequent period.

Vessels

Vessels

Vessels are measured at cost less accumulated depreciation and accumulated impairment losses. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use, including interest expenses incurred during the period of construction based on the loans obtained for the vessels. All major components of vessels except for dry-docking costs are depreciated on a straight-line basis to the estimated residual value over their estimated useful lives, which TORM estimates to be 25 years. The Company considers that a 25-year depreciable life is consistent with what is used by other shipowners with comparable tonnage. Depreciation is based on cost less the estimated residual value. Residual value is estimated as the lightweight tonnage of each vessel multiplied by scrap value per ton. The useful life and the residual value of the vessels are reviewed at least at each financial year-end based on market conditions, regulatory requirements and the Company's business plans.

The Company also evaluates the carrying amounts to determine if events have occurred that indicate impairment and would require a modification of the carrying amounts. Prepayment on vessels is measured at costs incurred.

Dry-docking

Approximately every 30 and 60 months, depending on the nature of work and external requirements, the vessels are required to undergo planned dry-dockings for replacement of certain components, major repairs and major maintenance of other components, which cannot be carried out while the vessels are operating. These dry-docking costs are capitalized and depreciated on a straight-line basis over the estimated period until the next dry-docking. The residual value of such components is estimated at nil. The useful life of the dry-docking costs is reviewed at least at each financial year-end based on market conditions, regulatory requirements and TORM's business plans.

A portion of the cost of acquiring a new vessel is allocated to the components expected to be replaced or refurbished at the next dry-docking. Depreciation hereof is carried over the period until the next dry-docking. For newbuildings, the initial dry-docking asset is estimated based on the expected costs related to the first-coming dry-docking, which again is based on experience and past history of similar vessels. For second-hand vessels, a dry-docking asset is also segregated and capitalized separately, taking into account the normal docking intervals of the vessels.

At subsequent dry-dockings, the costs comprise the actual costs incurred at the dry-docking yard. Dry-docking costs may include the cost of hiring crews to carry out replacements and repairs, the cost of parts and materials used, cost of travel, lodging and supervision of Company personnel as well as the cost of hiring third-party personnel to oversee a dry-docking. Dry-docking activities include, but are not limited to, the inspection, service on turbocharger, replacement of shaft seals, service on boiler, replacement of hull anodes, applying of anti-fouling and hull paint, steel repairs as well as refurbishment and replacement of other parts of the vessel.

Other plant and operating equipment

Operating equipment is measured at cost less accumulated depreciation.

Computer equipment is depreciated on a straight-line basis over three years, and other operating equipment is depreciated on a straight-line basis over five years.

Leasehold improvements are measured at cost less accumulated amortization and impairment losses, and leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease and the estimated useful life. Cost comprises acquisition cost and costs directly related to the acquisition up until the time when the asset is ready for use.
 

Investments in joint ventures

Investments in joint ventures

Investments in joint ventures comprise investments in companies which by agreement are managed jointly with one or more companies and therefore are subject to joint control and in which the parties have rights to the net assets of the joint venture. Joint ventures are accounted for using the equity method. Under the equity method, the investment in joint ventures is initially recognized at cost and thereafter adjusted to recognize TORM's share of the profit or loss in the joint venture. When TORM's share of losses in a joint venture exceeds the investment in the joint venture, TORM discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that TORM has incurred legal or constructive obligations or made payments on behalf of the joint venture.

Financial assets

Financial assets

Financial assets are initially recognized at the settlement date at fair value plus transaction costs, except for financial assets at fair value through profit or loss, which are recognized at fair value. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred.

Financial assets are classified as:

·          Financial assets at fair value through profit or loss

·          Loans and receivables

·          Available-for-sale financial assets

Other investments

Other investments

Other investments comprise shares in other companies and are classified as available-for-sale. Listed shares are measured at the market value at the balance sheet date, and unlisted shares are measured at estimated fair value. Unrealized gains and losses resulting from changes in fair value of shares are recognized in "Other comprehensive income". Realized gains and losses resulting from sales of shares are recognized as "Financial income" or "Financial expenses" in the income statement. The cumulative value adjustment recognized in "Other comprehensive income" is transferred to the income statement when the shares are sold. Dividends on shares in other companies are recognized as "Financial income" in the period in which they are declared.

Other investments are presented as non-current, unless Management intends to dispose of the investments within 12 months from the balance sheet date.

Receivables

Receivables

Outstanding freight receivables and other receivables that are expected to be realized within 12 months from the balance sheet date are classified as loans and receivables and presented as current assets.

Receivables are measured at the lower of amortized cost and net realizable values, which corresponds to nominal value less provision for bad debts. Derivative financial instruments included in other receivables are measured at fair value.

Provisions for bad debt

Provisions for bad debt

Provision for bad debt is defined as the write off of certain accounts receivable assessed as being uncollectible. The assessment is based on historical experience and on an individual basis.

Impairment of assets

Impairment of assets

Non-current assets are reviewed at least annually to determine any indication of impairment due to a significant decline in either the assets' market value or in the cash flows generated by the assets. In case of such indication, the recoverable amount of the asset is estimated as the higher of the asset's fair value less costs to sell and its value in use. The value in use is the present value of the future cash flows expected to derive from a cash generating unit, utilizing a pre-tax discount rate that reflects current market estimates of the time value of money and the risks specific to the unit for which the estimates of future cash flows have not been adjusted. If the recoverable amount is less than the carrying amount of the cash generating unit, the carrying amount is reduced to the recoverable amount. The impairment loss is recognized immediately in the income statement. Where an impairment loss subsequently reverses, the carrying amount of the cash generating unit is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined, had no impairment loss been recognized in prior years.

For the purpose of assessing impairment, assets and time charter- and bareboat contracts are grouped at the lowest levels at which impairment is monitored for internal management purposes. There were two cash generating units in 2015, the Tanker Segment and the Bulk Segment. In 2017 and 2016, there was only one cash generating unit as the Bulk Segment was wound down in 2015.

Bunkers

Bunkers

Bunkers and luboil are stated at the lower of cost and net realizable value. Cost is determined using the FIFO method and includes expenditures incurred in acquiring the bunkers and luboil and delivery cost less discounts.

Assets held-for-sale

Assets held-for-sale

Assets are classified as held-for-sale if the carrying amount will be recovered principally through a sales transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject to terms that are usual and customary for sales of such assets, and when its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Assets held-for-sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

Gains are recognized on delivery to the new owners in the income statement in the item "Profit from sale of vessels". Anticipated losses are recognized at the time the asset is classified as held-for-sale in the item "Impairment losses on tangible and intangible assets".

Treasury shares

Treasury shares

Treasury shares are recognized as a separate component of equity at cost. Upon subsequent disposal of treasury shares, any consideration is also recognized directly in equity.

Share-based payments

Share-based payments

The Group makes equity settled share-based payments to certain employees, which are measured at fair value at the date of grant and expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. The fair value of the share schemes is calculated using the Black Scholes method at grant date.

Dividend

Dividend

Dividend is recognized as a liability at the time of declaration. Dividend proposed for the year is moved from "Retained profit" and presented as a separate component of equity.

Provisions

Provisions

Provisions are recognized when the Company has a legal or constructive obligation as a result of past events, and when it is probable that this will lead to an outflow of resources that can be reliably estimated. Provisions are measured at the estimated liability that is expected to arise, taking into account the time value of money.

Deferred tax

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. In addition, the deferred tax also constitutes the reserve in relation to the transition balance in connection with the Danish tonnage tax scheme.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on the laws that have been enacted by the balance sheet date. The deferred tax is charged through the income statement except when it relates to other comprehensive income items.

Mortgage debt and bank loans

Mortgage debt and bank loans

At the time of borrowing, mortgage debt and bank loans are measured at fair value less transaction costs. Mortgage debt and bank loans are subsequently measured at amortized cost. This means that the difference between the net proceeds at the time of borrowing and the nominal amount of the loan is recognized in the income statement as a financial expense over the term of the loan applying the effective interest method.

When terms of existing financial liabilities are renegotiated, or other changes regarding the effective interest rate occur, TORM performs a test to evaluate whether the new terms are substantially different from the original terms. If the new terms are substantially different from the original terms, TORM accounts for the change as an extinguishment of the original financial liability and the recognition of a new financial liability. TORM considers the new terms to be substantially different from the original terms if the present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability.

Other liabilities

Other liabilities

Other liabilities are generally measured at amortized cost. Derivative financial instruments included in other liabilities are measured at fair value.

CASH FLOW STATEMENT

CASH FLOW STATEMENT

The cash flow statement shows the Company's cash flows as well as cash and cash equivalents at the beginning and the end of the period.

Cash flow from operating activities is presented using the indirect method and is based on net profit/(loss) for the year adjusted for tax, financial income and expenses, net profit/(loss) from sale of vessels, non-cash operating items, changes in working capital, income tax paid, dividends received and interest paid/received.

Cash flow from investing activities comprises the purchase and sale of tangible fixed assets and financial assets as well as cash from business combinations.

Cash flow from financing activities comprises changes in long-term debt, bank loans, finance lease liabilities, purchases or sales of treasury shares and dividend paid to shareholders.

Cash and cash equivalents comprise cash at bank and in hand including restricted cash. Other investments are classified as investing activities.

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the consolidated net profit/(loss) for the year available to common shareholders by the weighted average number of common shares outstanding during the period. Treasury shares are not included in the calculation. Purchases of treasury shares during the period are weighted based on the remaining period.

Diluted earnings per share is calculated by adjusting the consolidated profit or loss available to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive shares. Such potentially dilutive common shares are excluded when the effect of including them would be to increase earnings per share or reduce a loss per share.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements in accordance with IFRS requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are affected by the way TORM applies its accounting policies. An accounting estimate is considered critical if the estimate requires Management to make assumptions about matters subject to significant uncertainty, if different estimates could reasonably have been used, or if changes in the estimate that would have a material impact on the Company's financial position or results of operations are reasonably likely to occur from period to period. Management believes that the accounting estimates applied are appropriate and the resulting balances are reasonable. However, actual results could differ from the original estimates requiring adjustments to these balances in future periods.

Management believes that the following are the significant accounting estimates and judgements used in the preparation of the consolidated financial statements:

ACCOUNTING ESTIMATES

Carrying amounts of vessels

The Company evaluates the carrying amounts of the vessels (including newbuildings) to determine if events have occurred that would require a modification of their carrying amounts. The valuation of vessels is reviewed based on events and changes in circumstances that would indicate that the carrying amount of the assets might not be recoverable. In assessing the recoverability of the vessels, the Company reviews certain indicators of potential impairment such as reported sale and purchase prices, market demand and general market conditions. Furthermore, market valuations from leading, independent and internationally recognized shipbrokers are obtained on a quarterly basis as part of the review for potential impairment indicators. If an indication of impairment is identified, the need for recognizing an impairment loss is assessed by comparing the carrying amount of the vessels to the higher of the fair value less cost to sell and the value in use.

The review for potential impairment indicators and projection of future discounted cash flows related to the vessels is complex and requires the Company to make various estimates including future freight rates, utilization, earnings from the vessels, future operating and capital expenditure and discount rates. For more information on key assumptions and related sensitivities, please refer to note 8 in these financial statements. All these factors have been historically volatile. The carrying amounts of TORM's vessels may not represent their fair market value at any point in time, as market prices of second-hand vessels to a certain degree tend to fluctuate with changes in charter rates and the cost of newbuildings. However, if the estimated future cash flow or related assumptions in the future experience change, an impairment write-down or reversal of vessels may be required.

JUDGEMENTS

Reverse acquisition

TORM's Restructuring was completed on 13 July 2015 and included inter alia a contribution by OCM Njord Holdings S.à r.l. ("Njord Luxco") of Njord to TORM in exchange for a controlling interest in TORM. The transaction is described in detail in note 27. Management has concluded that the contribution should be accounted for as a reverse acquisition according to IFRS 3 (Revised 2008) – Business Combinations ("IFRS 3"), i.e. Njord is the acquirer and Former TORM is the acquiree. Management's most significant judgements applying to the accounting policies relate to:

·          Identification of the acquirer

·          Calculation of consideration

Identification of the acquirer

IFRS 3 requires that the determination of the acquirer shall be determined based on the guidance in IFRS 10 – "Consolidated Financial Statements", which means that the acquirer will be the entity that obtains control over the acquiree. The acquirer in a business combination will therefore most often be the entity (Former TORM A/S) legally acquiring the other (Njord) in exchange for cash, other assets or in exchange for issuing its equity interests. However, IFRS 3 states that in some cases the accounting acquirer can be the entity that is legally being acquired, i.e. Njord. The latter is typically the case when the former shareholder (Njord Luxco) of the entity whose shares are being acquired (Njord) owns the majority of shares and controls the majority of votes in the combined entity (TORM) after the transaction.

Following the transaction, Njord Luxco had control with the majority of the share capital and associated votes of Former TORM A/S, which led Management to conclude that the transaction is to be accounted for as a reverse acquisition, i.e. as if Former TORM A/S has been acquired by Njord rather than Former TORM A/S acquiring Njord.

Calculation of consideration

Based on the provision of IFRS 3, Njord's purchase price for a controlling interest in Former TORM A/S is calculated as the fair value of the interest in Njord that the existing shareholders and warrant holders in Former TORM A/S would have received, had the business combination of Former TORM A/S and Njord not been a reverse acquisition. As the issued shares of Former TORM A/S were publicly traded, Management considered whether the fair value of Former TORM A/S would have been a more reliable measure of the consideration. Management believes that the fair value of the interest in Njord that would have been issued represented the fair value of the consideration more reliably than the share price of Former TORM A/S. The share price of Former TORM A/S was very volatile during the period before the Restructuring due to the significant uncertainty about Former TORM A/S' future as an independent group.

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CONSOLIDATED SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of operating segments [abstract]

Schedule of operating segments

	2015
USDm	Tanker Segment	Bulk Segment	Not allocated	Total
Income Statement
Revenue	538.7	1.7	-	540.4
Port expenses, bunkers and commissions	-169.2	-0.5	-	-169.7
Charter hire	-11.1	-0.9	-	-12.0
Operating expenses	-121.7	-1.2	-	-122.9
Administrative expenses	-	-	-19.5	-19.5
Other operating expenses	-	-	-6.3	-6.3
Share of profit/(loss) from joint ventures	-	-	0.2	0.2
Impairment losses on tangible and intangible assets	-	-	-	-
Depreciation	-67.1	-0.2	-	-67.3
Operating profit/(loss) (EBIT)	169.6	-1.0	-25.6	143.0
Financial income	-	-	1.0	1.0
Financial expenses	-	-	-16.9	-16.9
Profit/(loss) before tax	169.6	-1.0	-41.5	127.1
Tax	-	-	-1.0	-1.0
Net profit/(loss) for the year	169.6	-1.0	-42.5	126.1

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STAFF COSTS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Staff Cost [Abstract]

Schedule of staff costs and average number of employees

USDm	2017	2016	2015
Total staff costs
Staff costs included in operating expenses	9.2	9.9	9.7
Staff costs included in administrative expenses	34.6	31.0	14.2
Total	43.8	40.9	23.9
Staff costs comprise the following
Wages and salaries	36.4	32.3	22.4
Share-based compensation	1.9	2.0	-
Pension costs	3.1	3.6	1.4
Other social security costs	0.3	0.4	0.1
Other staff costs	2.1	2.6	-
Total	43.8	40.9	23.9
Average number of permanent employees
Seafarers	130.6	137.0	65.0
Land-based	286.6	269.1	133.0
Total	417.2	406.1	198.0

Schedule of termination benefits by title of individual

USD '000	2017	2016	2015 ⁵⁾
Non-Executive Board and Committee Remuneration, Short term
Cheam Directors Limited ¹⁾	-	-	3
Christopher H. Boehringer	290	237	88
Kari Millum Gardarnar ²⁾³⁾⁴⁾	-	-	31
Rasmus Johannes Hoffmann ²⁾³⁾	-	-	29
Flemming Ipsen ²⁾	-	-	38
Olivier Dubois ²⁾	-	-	17
Alexander Green ²⁾	-	-	19
Jon Syvertsen ²⁾	-	-	19
David Weinstein	174	131	48
Torben Janholt	174	131	48
Göran Trapp	174	158	58
Jeffery Stein ²⁾³⁾	-	-	7
Total	812	657	405

¹⁾ Former member of the Board of Directors of Njord. Left the Board of Directors due to the reverse acquisition on 13 July 2015.

²⁾ Former member of the Board of Directors of Former TORM A/S. Resigned on 25 August 2015.

³⁾ Took up position as Board Observer of TORM plc.

⁴⁾ Resigned as Board Observer as of 31 July 2017.

⁵⁾ The 2015 figures represent amounts earned subsequent to the Restructuring on 13 July 2015.

Schedule of key management personnel compensation

USD '000	Salary	Taxable benefits	Annual performance bonus	Transaction bonus	Total
Executive Management Remuneration
Jacob Meldgaard
2015, TORM A/S¹⁾	362	19	144	345	870
2016, TORM A/S - restated ¹⁾ ²⁾	834	41	559	-	1,434
2016, TORM plc¹⁾	39	-	-	-	39
2017, TORM A/S¹⁾	923	42	580	-	1,545
2017, TORM plc¹⁾	81	-	-	-	81

¹⁾ Paid by legal entity as noted.

²⁾ The 2016 figures have been restated in order to include the figure for the annual bonus for 2016 as this was finalised and subsequently paid in 2017. No value was shown in the 2016 annual report. The total annual performance bonus of the Executive Director of TORM plc for 2016. arising in the period 1 January 2016 to 31 December 2016 was DKK 3.758.700 (USD 559t).

Schedule of staff costs

	RSU LTIP grant	Exercise price per share ¹⁾	RSU grant value assuming 100% vesting
LTIP element of Jacob Meldgaard's remuneration package 2017:
Jacob Meldgaard ²⁾	1,276,273	DKK 96.3	USD 3.4m

¹⁾ Exercise price originally DKK 96.3. Subsequently adjusted 13 December 2016 to DKK 93.6 due to dividend payment

in September 2016. Further adjusted in December 2017 to DKK 93.5 due to dividend payment in September 2017.

²⁾ LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 2 of 18

Schedule of reconciliation number of other equity instruments

Number of shares (1,000)	2017	2016	2015
Outstanding 1 January	1,999.8	-	-
Granted during the period	866.6	2,127.4	-
Exercised during the period	-	-	-
Expired during the period	-233.9	-	-
Forfeited during the period	-21.3	-127.6	-
Outstanding 31 December	2,611.2	1,999.8	-
Exercisable 31 December	255.3	538.9	-

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REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Tables)

12 Months Ended

Dec. 31, 2017

Auditor's remuneration [abstract]

Schedule of auditor remuneration

USDm	2017	2016	2015
Audit fees
Fees payable to the Company's auditor for the audit of the Company's annual accounts	0.4	0.4	0.2
Audit of the Company's subsidiaries pursuant to legislation	0.2	0.1	0.1
Total audit fees	0.6	0.5	0.3
Non-audit fees
Audit related services	0.4	0.6	1.1
Tax services	-	0.3	0.5
Other services	-	0.1	0.2
Total non-audit fees	0.4	1.0	1.8
Total	1.0	1.5	2.1

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INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about intangible assets [abstract]

Schedule of reconciliation of changes in intangible assets and goodwill

USDm	2017	2016	2015
Goodwill
Cost:
Balance as of 1 January	11.4	11.4	-
Additions during the year	-	-	11.4
Balance as of 31 December	11.4	11.4	11.4
Impairment losses:
Balance as of 1 January	-11.4	-	-
Impairment losses for the year	-	-11.4	-
Balance as of 31 December	-11.4	-11.4	-
Carrying amount as of 31 December	-	-	11.4

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TANGIBLE FIXED ASSETS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about property, plant and equipment [abstract]

Schedule of tangible fixed assets

USDm	2017	2016	2015
Vessels and capitalized dry-docking
Cost:
Balance as of 1 January	1,697.4	1,567.5	530.1
Additions	103.1	40.8	112.0
Additions from business combinations	-	-	857.4
Disposals	-14.3	-16.3	-18.6
Transferred to/from other items	-	105.4	104.6
Transferred to assets held-for-sale	-59.6	-	-18.0
Balance as of 31 December	1,726.6	1,697.4	1,567.5
Depreciation:
Balance as of 1 January	180.0	75.5	27.9
Disposals	-14.3	-15.9	-18.6
Depreciation for the year	113.6	120.4	66.5
Transferred to assets held-for-sale	-20.8	-	-0.3
Balance as of 31 December	258.5	180.0	75.5
Impairment:
Balance as of 1 January	173.6	-	-
Impairment losses on tangible fixed assets	-	173.6	-
Balance as of 31 December	173.6	173.6	-
Carrying amount as of 31 December	1,294.5	1,343.8	1,492.0
Of which finance leases as of 31 December	28.6	12.4	13.1

USDm	2017	2016	2015
Prepayments on vessels
Balance as of 1 January	44.1	72.6	34.7
Additions	44.3	76.9	142.5
Transferred to/from other items	-	-105.4	-104.6
Balance as of 31 December	88.4	44.1	72.6
Carrying amount as of 31 December	88.4	44.1	72.6

USDm	2017	2016	2015
Other plant and operating equipment
Cost:
Balance as of 1 January	2.7	3.2	-
Additions	1.0	1.1	0.9
Additions from business combinations	-	-	2.5
Disposals	-0.1	-1.6	-0.2
Balance as of 31 December	3.6	2.7	3.2
Depreciation:
Balance as of 1 January	0.9	0.7	-
Disposals	-0.1	-1.6	-0.2
Depreciations for the year	0.9	1.8	0.9
Balance as of 31 December	1.7	0.9	0.7
Carrying amount as of 31 December	1.9	1.8	2.5
Of which finance leases as of 31 December	-	-	-

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FINANCIAL ITEMS (Tables)

12 Months Ended

Dec. 31, 2017

Financial Items [Abstract]

Schedule of finance income costs

USDm	2017	2016	2015
Financial income
Interest income from cash and cash equivalents ¹⁾	1.6	0.2	0.3
Exchange rate adjustments, including gain from forward exchange rate contracts	2.7	2.8	0.7
Total	4.3	3.0	1.0
Financial expenses
Interest expenses on mortgage and bank debt ¹⁾	33.3	29.7	15.0
Exchange rate adjustments, including loss from forward exchange rate contracts	3.2	2.6	0.6
Other financial expenses	4.1	5.2	1.3
Total	40.6	37.5	16.9
Total financial items	-36.3	-34.5	-15.9
¹⁾ Interest for financial assets and liabilities not at fair value through profit and loss.

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FREIGHT RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2017

Freight Receivables [Abstract]

Schedule of individually determined to be impaired to a value

USDm	2017	2016	2015
Analysis as of 31 December of freight receivables:
Neither past due nor impaired	25.5	28.7	40.3
Past due not impaired:
Due before 30 days	26.0	13.0	22.8
Due between 30 and 180 days	18.4	18.7	16.4
Past due and impaired:
Due after 180 days	2.7	4.7	5.3
Total gross	72.6	65.1	84.8
Provision for impairment of freight receivables	1.3	2.6	1.7
Total net	71.3	62.5	83.1

Schedule of movment in provisions for impairment of freight receivables

USDm	2017	2016	2015
Provisions for impairment of Freight receivables
Balance as of 1 January	2.6	1.7	-
Addition from business combinations	-	-	1.9
Provisions for the year	0.6	1.9	0.5
Provisions reversed during the year	-1.9	-1.0	-0.7
Balance as of 31 December	1.3	2.6	1.7

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OTHER RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2017

Trade and other receivables [abstract]

Schedule of other current receivables

USDm	2017	2016
Partners and commercial managements	-	0.5
Derivative financial instruments	7.6	3.3
Tax receivables	1.3	1.1
Other	2.9	3.2
Balance as of 31 December	11.8	8.1

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TAX (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Income Tax [Abstract]

Schedule of income tax

USDm	2017	2016	2015
Tax for the year
Current tax for the year	1.0	1.2	1.3
Adjustments related to previous years	-0.1	-0.3	-0.2
Adjustment of deferred tax asset	-0.1	-0.1	-0.1
Total	0.8	0.8	1.0

Schedule of deferred taxes

USDm	2017	2016	2015
Deferred tax liability
Balance at 1 January	45.0	45.1	-
Addition from business combination	-	-	45.2
Deferred tax for the year	-0.1	-0.1	-0.1
Balance as of 31 December	44.9	45.0	45.1

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COMMON SHARES & TREASURY SHARES (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of classes of share capital [abstract]

Schedule of purposes due to the corporate reorganization, the common shares

Common shares	2017	2016	2015
	Number of shares	Number of shares	Number of shares
A-shares	62,298,846	62,298,846	63,836,249
B-shares	1	1	1
C-shares	1	1	1
Total	62,298,848	62,298,848	63,836,251

Schedule of treasury share transactions

Treasury shares	2017	2016	2015
Number of shares ('000)
Balance as of 1 January	312.9	15.3	-
Additions	-	312.9	15.3
Cancellations	-	-15.3	-
Disposals	-	-	-
Balance as of 31 December	312.9	312.9	15.3
Nominal value USDm
Balance as of 1 January	-	-	-
Additions	-	-	-
Cancellations	-	-	-
Disposals	-	-	-
Balance as of 31 December	-	-	-
% of share capital
Balance as of 1 January	0.5	0.2	-
Additions	-	0.5	0.2
Cancellations	-	-0.2	-
Disposals	-	-
Balance as of 31 December	0.5	0.5	0.2

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OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Other Liabilities [Abstract]

Schedule of other liabilities

USDm	2017	2016
Partners and commercial managements	1.4	2.0
Accrued operating expenses	8.5	5.2
Accrued interest	5.2	5.8
Wages and social expenses	16.3	14.6
Derivative financial instruments	-	4.8
Payables to joint ventures	0.1	0.1
Other	2.3	0.5
Balance as of 31 December	33.8	33.0

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EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Effective Interest Rate, Outstanding Mortgage Debt And Bank Loans [Abstract]

Schedule of effective interest rate, outstanding mortgage debt and bank loans

		2017			2016			2015
USDm	Fixed/floating	Maturity	Effectiveinterest¹⁾	Carryingvalue²⁾	Maturity	Effectiveinterest¹⁾	Carryingvalue²⁾	Maturity	Effectiveinterest¹⁾	Carryingvalue²⁾
LOAN
DSF Facility 1 (USD)	Floating	2021	5.4%	74.3	2019	4.6%	109.4	2019	4,1%	125.7
TFA Facility 1 (USD)	Floating	2021	5.0%	400.8	2021	4.6%	470.0	2021	4.3%	548.9
DSF Facility 3 (USD)	Floating	2021	5.0%	56.5	2021	4.6%	62.2	2021	4,4%	66.6
DSF Facility 4 (USD)	Floating	2022	5.1%	26.8	2022	4.8%	30.0	2019	4,1%	26.0
TFA Facility 2 (USD)	Floating	2022	5.4%	115.0	N/A	N/A	-	N/A	N/A	-
ING (USD)	Floating	2024	4.6%	45.8	N/A	N/A	-	N/A	N/A	-
Weighted average effective interest rate			5.1%			4.6%			4.3%
Carrying value				719.1			671.6			767.2
Hereof non-current ²⁾				633.1			595.7			717.5
Hereof current ²⁾				86.0			75.9			49.7

¹⁾ Effective interest rate includes deferred and amortized bank fees.

²⁾ The carrying value of the Group's mortgage debt and bank loans is, due to their short-term nature of fixing of interest, approximate to fair value, and excludes amortized bank fees.

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CONTRACTUAL OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Contractual Commitments [Abstract]

Schedule of contractual obligations

USDm		2018	2019	2020	2021	2022	Thereafter	Total
Mortgage debt and bank loans	¹⁾	92.7	86.7	82.2	346.7	89.2	28.3	725.8
Interest payments related to scheduled interest fixing		20.4	14.4	12.1	8.9	0.4	-	56.2
Estimated variable interest payments	²⁾	11.9	13.6	12.2	9.1	2.6	2.0	51.4
Finance lease liabilities		2.9	3.2	3.4	3.7	15.0	-	28.2
Interest element regarding finance lease		2.3	2.0	1.7	1.4	0.3	-	7.7
Newbuilding installments	³⁾	144.2	162.7	-	-	-	-	306.9
Chartered-in vessels (operating lease)	⁴⁾	2.9	-	-	-	-	-	2.9
Other operating leases	⁵⁾	2.5	1.8	0.7	0.2	-	-	5.2
Trade payables and other obligations		51.5	-	-	-	-	-	51.5
Total		331.3	284.4	112.3	370.0	107.5	30.3	1,235.8

¹⁾ The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 4.8m (2016: USD 2.0m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 3.5m (2016: USD 1.3m).

²⁾ Variable interest payments are estimated based on the forward rates for each interest period.

³⁾ As of 31 December 2017, TORM had ten contracted newbuildings (2016: four) to be delivered during 2018-2019.

⁴⁾ Leases have been entered into with a mutually non-cancellable lease period of up to eight years. Certain leases include a profit-sharing element implying that the actual charter hire may be higher. The average period until redelivery of the vessels is 0.5 years (2016: 0.9 years). The leasing expense for 2017 amounts to USD 8.5m (2016: USD 21.5m, 2015: USD 12.0m) and is recognized under "Charter hire".

⁵⁾ Other operating leases primarily consist of contracts regarding office spaces, cars and apartments as well as IT-related contracts. The leasing expense for 2017 amounts to USD 2.3m (2016: USD 2.2m) and is recognized under "Administrative expenses".

Schedule of reconciliation of liabilities arising from financing activities

		Cash		Non-cash
USDm	Opening balance as of 1 January 2017	Borrowings	Repayments	Changes in fair value	Other changes	End balance as of 31 December 2017
Mortgage debt	669.6	175.4	-125.5	0.7	0.7	720.9
Financial lease	13.6	30.2	-16.7	0.6	0.5	28.2
Swaps, fair value hedging	2.0	-	-1.4	-0.6	-	-
Total	685.2	205.6	-143.6	0.7	1.2	749.1

Schedule of contractual rights

USDm		2018	2019	2020	2021	2022	Thereafter	Total
Contractual rights - as lessor:
Charter hire income for vessels	⁶⁾	45.5	4.7	-	-	-	-	50.2
Total		45.5	4.7	-	-	-	-	50.2

⁶⁾ Charter hire income for vessels on time charter and bareboat charter is recognized under "Revenue". The average period until redelivery of the vessels is 1.1 year (2016: 2.1 years).

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Derivative Financial Instruments Explanatory [Abstract]

Schedule of disclosure of derivative financial instruments

USDm	2017	2016
Fair value of derivatives:
Derivative financial instruments regarding freight and bunkers:
Forward Freight Agreements	-0.2	-0.1
Bunker swaps	0.8	0.8
Derivative financial instruments regarding interest and currency exchange rate:
Forward exchange contracts	1.8	-4.6
Interest rate swaps	5.1	2.4
Fair value of derivatives as of 31 December	7.5	-1.5
Of which included in:
Other receivables	7.3	3.3
Other liabilities	0.2	-4.8

Schedule of realized amounts and fair value adjustments for derivative financial instruments

	Income statement			Equity
USDm	Revenue	Port expenses, bunkers and commissions	Financial items	Hedging reserves
2017
Forward Freight Agreements	0.5	-	-	-0.3
Bunker swaps	-	1.2	-	0.0
Forward exchange contracts	-	-	-1.4	4.4
Interest rate swaps	-	-	-2.0	2.7
Total	0.5	1.2	-3.4	6.9
2016
Forward Freight Agreements	-0.1	-	-	-0.2
Bunker swaps	-	0.0	-	1.0
Forward exchange contracts	-	-	0.1	-3.4
Interest rate swaps	-	-	-2.9	1.6
Total	-0.1	0.0	-2.8	-1.0
2015
Forward Freight Agreements	0.6	-	-	0.0
Bunker swaps	-	-0.9	-	-0.2
Forward exchange contracts	-	-	-	0.8
Interest rate swaps	-	-	-	0.8
Total	0.6	-0.9	-	1.4

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Risks Associated With Entities Activities [Abstract]

Schedule of sensitivity analysis for changes in freight rates

USDm	2018	2017	2016
Decrease in freight rates of USD/day
1,000:
Changes in profit before tax	24.1	25.0	26.7
Changes in equity	24.1	25.0	26.7

Schedule of sensitivity analysis, impact of 10 percent per ton increase in bunker prices

USDm	2018	2017	2016
Increase in the bunker prices of 10% per ton:
Changes in profit before tax	-18.3	-15.6	-12.8
Changes in equity	-18.3	-15.6	-12.8

Schedule of sensitivity analysis, impact of 10 percent change in exchange rate

USDm	2018	2017	2016
Effect of a 10% increase of DKK and EUR:
Changes in profit before tax	-2.5	-1.7	-2.8
Changes in equity	-2.5	-1.7	-2.8

Schedule of sensitivity analysis, impact of 1 percent point increase in interest rate

USDm	2018	2017	2016
Effect of a 1%-point increase in interest rates:
Changes in profit before tax	-3.2	-2.5	-3.3
Changes in equity	3.6	6.8	9.5

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FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract]

Schedule of fair value measurement of assets and liabilities

Categories of financial assets and liabilities (USDm):		Quotedprices(level 1)	Observableinput(level 2)	Unobservableinput(level 3)	Fair valueTotal	Amortized cost	Carrying value
2017:
Loans and receivables
Freight receivables	¹⁾	-	-	-	-	71.3	71.3
Other receivables		-	7.6	-	7.6	4.2	11.8
Cash and cash equivalents	¹⁾	-	-	-	-	134.2	134.2
Total		-	7.6	-	7.6	209.7	217.3
Financial liabilities
Mortgage debt and bank loans	²⁾	-	-	-	-	720.9	720.9
Finance lease liabilities	¹⁾	-	-	-	-	28.2	28.2
Trade payables	¹⁾	-	-	-	-	26.2	26.2
Other liabilities	¹⁾	-	-0.2	-	-0.2	34.0	33.8
Total		-	-0.2	-	-0.2	809.3	809.1
2016:
Loans and receivables
Freight receivables	¹⁾	-	-	-	-	62.5	62.5
Other receivables		-	3.3	-	3.3	4.8	8.1
Cash and cash equivalents	¹⁾	-	-	-	-	76.0	76.0
Total		-	3.3	-	3.3	143.3	146.6
Financial liabilities
Mortgage debt and bank loans	²⁾	-	-	-	-	669.6	669.6
Finance lease liabilities	¹⁾	-	-	-	-	13.6	13.6
Trade payables	¹⁾	-	-	-	-	28.5	28.5
Other liabilities	¹⁾	-	4.8	-	4.8	28.3	33.1
Total		-	4.8	-	4.8	740.0	744.8

¹⁾ Due to the short maturity, the carrying value is considered to be an appropriate expression of the fair value.

²⁾ See note 15.

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CASH FLOWS (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Cash Flow Statement [Abstract]

Schedule of cash flow statement

USDm	2017	2016	2015
Reversal of other non-cash movements:
Amortization of acquired assets and liabilities	-	-0.1	-0.7
Exchange rate adjustments	1.8	-2.4	-0.1
Share-based payments	1.9	2.0	-
Equity transactions expensed in relation to the Corporate Reorganization	-	-6.4	-
Other adjustments	-	-0.2	-0.1
Total	3.7	-7.1	-0.9

USDm	2017	2016	2015
Change in bunkers, receivables and payables:
Change in bunkers	-1.6	-6.1	15.6
Change in receivables	-12.4	18.1	6.1
Change in prepayments	-1.4	2.7	4.9
Change in trade payables and other liabilities	-4.5	-5.4	-11.9
Adjusted for fair value changes of derivative financial instruments	6.9	-1.0	2.2
Total	-13.0	8.3	16.9

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ENTITIES IN THE GROUP (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of information about consolidated structured entities [abstract]

Schedule of of subsidiaries

Entity	Country
TORM plc	United Kingdom
Investments in subsidiaries ⁸⁾:
Entity	Country	Ownership ⁷⁾
TORM A/S ¹⁾	Denmark	100%
DK Vessel HoldCo GP ApS ¹⁾	Denmark	100%
DK Vessel HoldCo K/S ¹⁾	Denmark	100%
OCM (Gibraltar) Njord Midco Ltd	Gibraltar	100%
OCM Njord Chartering Inc	Marshall Islands	100%
OCM Singapore Njord Holdings Agnes, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Alice, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Almena, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Amalie, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Aslaug, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Hardrada, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings St.Michaelis Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings St. Gabriel Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Harald Pte. Ltd ⁵⁾	Singapore	100%
OCM Singapore Njord Holdings Gorm Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Knut Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Valdemar Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Agnete, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Alexandra, Pte. Ltd	Singapore	100%
OCM Singapore Njord Holdings Anabel, Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Arawa Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Leif Pte. Ltd ⁶⁾	Singapore	100%
OCM Singapore Njord Holdings Rolf Pte. Ltd ⁵⁾	Singapore	100%

Investments in subsidiaries ⁸⁾ - continued:
Entity	Country	Ownership ⁷⁾
OCM Holdings Mrs Inc.	Marshall Islands	100%
OCM Njord Anne Inc.	Marshall Islands	100%
OCM Njord Freya Inc.	Marshall Islands	100%
OCM Njord Gerd Inc.	Marshall Islands	100%
OCM Njord Gertrud Inc.	Marshall Islands	100%
OCM Njord Gunhild Inc.	Marshall Islands	100%
OCM Njord Helene Inc.	Marshall Islands	100%
OCM Njord Helvig Inc.	Marshall Islands	100%
OCM Njord Ingeborg Inc.	Marshall Islands	100%
OCM Njord Mary Inc.	Marshall Islands	100%
OCM Njord Ragnhild Inc.	Marshall Islands	100%
OCM Njord Thyra Inc.	Marshall Islands	100%
OCM Njord Valborg Inc.	Marshall Islands	100%
OCM Njord Vita Inc.	Marshall Islands	100%
OMI Holding Ltd. ¹⁾ ⁶⁾	Mauritius	100%
Torghatten & TORM Shipowning ApS ¹⁾ ⁵⁾	Denmark	100%
TORM Brasil Consultoria em Transporte Maritimo LTDA. ¹⁾ ⁴⁾	Brazil	100%
TORM Crewing Service Ltd.¹⁾	Bermuda	100%
TORM Shipping India Private Limited ¹⁾	India	100%
TORM Singapore Pte. Ltd. ¹⁾	Singapore	100%
TORM USA LLC ¹⁾	USA	100%
TT Shipowning K/S ¹⁾ ⁵⁾	Denmark	100%
VesselCo 1 K/S ¹⁾	Denmark	100%

Investments in subsidiaries ⁸⁾ - continued:
Entity	Country	Ownership ⁷⁾
VesselCo 2 Pte. Ltd. ¹⁾4⁾	Singapore	100%
VesselCo 3 K/S ¹⁾	Denmark	100%
VesselCo 4 Pte. Ltd. ¹⁾4⁾	Singapore	100%
VesselCo 5 K/S ¹⁾ ³⁾	Denmark	100%
VesselCo 6 Pte. Ltd.¹⁾	Singapore	100%
VesselCo 7 Pte. Ltd. ¹⁾	Singapore	100%
VesselCo 8 Pte. Ltd. ¹⁾	Singapore	100%
VesselCo 9 Pte. Ltd. ²⁾	Singapore	100%
VesselCo 10 Pte. Ltd. ²⁾	Singapore	100%
VesselCo 11 Pte. Ltd. ²⁾	Singapore	100%
VesselCo 12 Pte. Ltd. ³⁾	Singapore	100%
TORM Shipping (Phils.), Inc. ¹⁾	Philippines	25%
VesselCo A ApS ¹⁾	Denmark	100%
VesselCo C ApS ¹⁾	Denmark	100%
VesselCo E ApS ³⁾	Denmark	100%
1) Entities added in the financial year ended 31 December  2015.
2) Entities added in the financial year ended 31 December 2016.
3) Entities added in the financial year ended 31 December 2017.
4) Entities dissolved in the financial year ended 31 December 2015.
5) Entities dissolved in the financial year ended 31 December 2016.
6) Entities dissolved in the financial year ended 31 December 2017.
7) For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.) INC where voting rights are 100%.
8) All subsidiaries are consolidated in full.

Schedule of registered addresses

Denmark	India	Philippines	Singapore
Tuborg Havnevej 18,	2nd Floor	7th Floor	6 Battery Road #27-02
DK-2900 Hellerup	Leela Business Park	Salcedo Towers, 169	Singapore 049909
Denmark	Andheri-Kurla Road	HV dela Costa Street	Singapore
	Andheri (E)	Salcedo Village,
	Mumbai 400059	Makati City
	India	Philippines 1227
United Kingdom	USA	Marshall Islands	Mauritius
Birchin Court	Suite 710	c/o The Trust	c/o Temple Corporate
20 Birchin Lane	2500 City West	Company of	Services
London, EC3V 9DU	Boulevard	Marshall Islands, Inc.	Temple Court 2,
United Kingdom	77042, Houston , Texas	P.O. Box 2095	Labourdonnais Street
	USA	Reston VA 20195-0095	Port Louis
		USA	Mauritius
Bermuda	Gibraltar	Brazil
c/o Estera Services	57/63 Line Wall Road	Avenida Rio Branco
(Bermuda Limited)	GX11 1AA	01-1201
Canon's Court	Gibraltar	CEP 200090-003
22 Victoria Street		Rio de Janeiro
PO Box 1624		Brazil
Hamilton HM GX
Bermuda

Schedule of joint ventures

			2017
Entity	Country	% Control	Profit andloss fromcontinuingoperations	Other compre-hensiveincome	Total compre-hensiveincome
Long Range 2 A/S	Denmark	50%	-	-	-
LR2 Management K/S	Denmark	50%	-	-	-

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EARNINGS PER SHARE & DIVIDEND PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Earnings Per Share And Dividend Per Share [Abstract]

Schedule of earnings per share

	2017	2016	2015
EARNINGS PER SHARE
Net profit/(loss) for the year (USDm)	2.4	-142.5	126.0
Million shares
Average number of shares	62.3	63.1	51.7
Average number of treasury shares	-0.3	-0.2	-
Average number of shares outstanding	62.0	62.9	51.7
Dilutive effect of outstanding share options	-	-	-
Average number of shares outstanding incl. dilutive effect of share options	62.0	62.9	51.7
Basic earnings/(loss) per share (USD)	0.04	-2.3	2.4
Diluted earnings/(loss) per share (USD)	0.04	-2.3	2.4

Schedule of dividend per share

	2017	2016	2015
DIVIDEND PER SHARE
Dividend for the year (USDm)	1.2	25.0	-
Number of shares, end of period (million)	62.3	62.3	63.8
Dividend per share	0.02	0.40	-

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BUSINESS COMBINATIONS IN 2015 (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about business combination [abstract]

Schedule of fair value of assets acquired and liabilities assumed

USDm
Tangible fixed assets	859.9
Investment in joint ventures	0.3
Bunkers	27.8
Freight receivables	53.4
Other receivables	6.6
Prepayments	10.6
Cash and cash equivalents	77.5
Deferred tax liabilities	-45.1
Mortgage debt and bank loans	-560.7
Finance lease liabilities	-13.5
Trade payables	-27.3
Current tax liabilities	-1.4
Other liabilities	-29.7
Time charter contracts	-1.6
Deferred income	-0.4
Net assets acquired	356.4
Goodwill	11.4
Consideration (purchase price)	367.8
Of which:
Shares	349.8
Warrants	18.0
	367.8

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ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual)	Mar. 27, 2015
TORM A/S
Disclosure Of Business Overview [Line Items]
Percentage of voting rights	62.00%

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ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual 1) - TORM A/S $ in Millions	Apr. 15, 2016 USD ($) ratio
Disclosure Of Business Overview [Line Items]
Percentage of shares exchanged	97.60%
Percentage of remaining shares acquired	2.40%
Total cash consideration | $	$ 19.2
Ratio of warrants exchanged | ratio	1

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ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual 2) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) Segment	Dec. 31, 2015 USD ($) Segment	Jan. 31, 2018 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2014 USD ($)
Disclosure Of Accounting Policy [Line Items]
Cash and cash equivalents	$ 134,207	$ 168,258		$ 75,971	$ 38,056
Net debt	620,000
Undrawn debt	$ 271,000	75,000		190,000
Net interest-bearing debt loan-to-value ratio	55.80%
Raised equity	$ 791,050	$ 975,976		$ 780,578	$ 469,514
Number of business segments | Segment		2
Number of geographical segment | Segment	1
Demurrage revenue claim percentage	95.00%
Average period of receiving demurrage payment	100 days
Major ordinary share transactions
Disclosure Of Accounting Policy [Line Items]
Raised equity			$ 100,000

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ACCOUNTING POLICIES, CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Details Textual 3) - cashgeneratingunit	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Accounting Policy [Line Items]
Depreciation method	straight-line basis
Number of cash generating unit	1	1	2
Minimum percentage of difference to recognize new financial liability	10.00%
Dry Docking period	every 30 and 60 months
Ships
Disclosure Of Accounting Policy [Line Items]
Estimated useful lives	25 years
Computer equipment
Disclosure Of Accounting Policy [Line Items]
Estimated useful lives	over three years
Other property, plant and equipment
Disclosure Of Accounting Policy [Line Items]
Estimated useful lives	over five years

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LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS (Details textuals) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) Newbuilding	Dec. 31, 2016 USD ($) Newbuilding	Dec. 31, 2015 USD ($) Newbuilding	Jul. 31, 2015 USD ($)
Liquidity And Capital Resources [Line Items]
Cash position	$ 134.0	$ 76.0	$ 168.0
Undrawan credit facilities	$ 271.0	$ 190.0	$ 75.0
Newbuildings on order for delivery | Newbuilding	10	4	7
Total outstanding CAPEX related to newbuildings	$ 307.0	$ 149.0	$ 224.0
Mortgage debt and bank loans (Note 2,15,16,18)	719.1	$ 671.6	$ 767.2
Scheduled minimum payments on mortgage debt and bank loans in 2018	93.0
Working capital facility
Liquidity And Capital Resources [Line Items]
Undrawan credit facilities	75.0			$ 75.0
Term facility I
Liquidity And Capital Resources [Line Items]
Mortgage debt and bank loans (Note 2,15,16,18)	401.0
Term facility II
Liquidity And Capital Resources [Line Items]
Mortgage debt and bank loans (Note 2,15,16,18)	115.0
Bilateral borrowing facility | China export import Bank
Liquidity And Capital Resources [Line Items]
Undrawan credit facilities	115.0
Bilateral borrowing facility | Danish ship finance
Liquidity And Capital Resources [Line Items]
Undrawan credit facilities	81.0
Bilateral loan agreements | Danish ship finance
Liquidity And Capital Resources [Line Items]
Mortgage debt and bank loans (Note 2,15,16,18)	158.0
Bilateral loan agreements | ING
Liquidity And Capital Resources [Line Items]
Mortgage debt and bank loans (Note 2,15,16,18)	$ 46.0

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LIQUIDITY, CAPITAL RESOURCES AND SUBSEQUENT EVENTS (Details textuals 1)	1 Months Ended
	Jan. 26, 2018 USD ($) $ / shares shares	Jan. 23, 2018 USD ($) shares	Jan. 22, 2018 USD ($)	Dec. 31, 2017 shares	Dec. 31, 2016 shares	Apr. 15, 2016 $ / shares	Apr. 15, 2016 kr / shares	Dec. 31, 2015 shares
Disclosure of non-adjusting events after reporting period [line items]
Number of shares issued				62,298,848	62,298,848			63,836,251
Par value of common shares (in DKK) | (per share)						$ 0.01	kr 15
Common class A shares
Disclosure of non-adjusting events after reporting period [line items]
Number of shares issued				62,298,846	62,298,846			63,836,249
Common class B shares
Disclosure of non-adjusting events after reporting period [line items]
Number of shares issued				1	1			1
Common class C shares
Disclosure of non-adjusting events after reporting period [line items]
Number of shares issued				1	1			1
Entering into significant commitments or contingent liabilities
Disclosure of non-adjusting events after reporting period [line items]
Maximum financing of secured commitment for attractive vessel | $			$ 50,000,000
Major ordinary share transactions
Disclosure of non-adjusting events after reporting period [line items]
Proceeds from private placement | $		$ 100,000,000
Number of shares issued in Private placement		11,920,000
Nominal value of shares issued | $	$ 742,188.48
Number of shares issued	74,218,846
Major ordinary share transactions | Common class A shares
Disclosure of non-adjusting events after reporting period [line items]
Par value of common shares (in DKK) | $ / shares	$ 0.01
Major ordinary share transactions | Common class B shares
Disclosure of non-adjusting events after reporting period [line items]
Par value of common shares (in DKK) | $ / shares	0.01
Major ordinary share transactions | Common class C shares
Disclosure of non-adjusting events after reporting period [line items]
Par value of common shares (in DKK) | $ / shares	$ 0.01
Classification of assets as held for sale
Disclosure of non-adjusting events after reporting period [line items]
Net profit from sale of vessels | $	$ 600,000

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CONSOLIDATED SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of profit or loss and other comprehensive income [abstract]
Revenue			$ 540,400
Port expenses, bunkers and commissions	$ (259,888)	$ (221,859)	(169,646)
Charter hire			(12,000)
Operating expenses (Note 4)	(188,374)	(195,249)	(122,867)
Administrative expenses (Note 4, 5)	(45,007)	(41,406)	(19,486)
Other operating expenses			(6,300)
Share of profit/(loss) from joint ventures			200
Impairment losses on tangible and intangible assets	20,000		0
Depreciation (Note 7)	(114,451)	(122,215)	(67,327)
Operating profit/(loss) (EBIT)	39,529	(107,212)	142,958
Total	4,255	2,814	992
Financial expenses (Note 9)	(40,601)	(37,333)	(16,926)
Profit/(loss) before tax	3,184	(141,731)	127,024
Tax (Note 12)	(777)	(760)	(1,041)
Net profit/(loss) for the year	$ 2,407	$ 142,491	125,983
Operating segments | Tanker Segment
Statement of profit or loss and other comprehensive income [abstract]
Revenue			538,700
Port expenses, bunkers and commissions			(169,200)
Charter hire			(11,100)
Operating expenses (Note 4)			(121,700)
Administrative expenses (Note 4, 5)			0
Other operating expenses			0
Share of profit/(loss) from joint ventures			0
Impairment losses on tangible and intangible assets			0
Depreciation (Note 7)			(67,100)
Operating profit/(loss) (EBIT)			169,600
Total			0
Financial expenses (Note 9)			0
Profit/(loss) before tax			169,600
Tax (Note 12)			0
Net profit/(loss) for the year			169,600
Operating segments | Bulk Segment
Statement of profit or loss and other comprehensive income [abstract]
Revenue			1,700
Port expenses, bunkers and commissions			(500)
Charter hire			(900)
Operating expenses (Note 4)			(1,200)
Administrative expenses (Note 4, 5)			0
Other operating expenses			0
Share of profit/(loss) from joint ventures			0
Impairment losses on tangible and intangible assets			0
Depreciation (Note 7)			(200)
Operating profit/(loss) (EBIT)			(1,000)
Total			0
Financial expenses (Note 9)			0
Profit/(loss) before tax			(1,000)
Tax (Note 12)			0
Net profit/(loss) for the year			(1,000)
Not allocated
Statement of profit or loss and other comprehensive income [abstract]
Revenue			0
Port expenses, bunkers and commissions			0
Charter hire			0
Operating expenses (Note 4)			0
Administrative expenses (Note 4, 5)			(19,500)
Other operating expenses			(6,300)
Share of profit/(loss) from joint ventures			200
Impairment losses on tangible and intangible assets			0
Depreciation (Note 7)			0
Operating profit/(loss) (EBIT)			(25,600)
Total			1,000
Financial expenses (Note 9)			(16,900)
Profit/(loss) before tax			(41,500)
Tax (Note 12)			(1,000)
Net profit/(loss) for the year			$ (42,500)

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CONSOLIDATED SEGMENT INFORMATION (Details textuals)	12 Months Ended
	Dec. 31, 2015 Segment
Disclosure of operating segments [abstract]
Number of business segments	2

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STAFF COSTS (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) Employees	Dec. 31, 2016 USD ($) Employees	Dec. 31, 2015 USD ($) Employees
Total staff costs
Staff costs	$ 43.8	$ 40.9	$ 23.9
Staff costs comprise the following
Wages and salaries	36.4	32.3	22.4
Share-based compensation	1.9	2.0	0.0
Pension costs	3.1	3.6	1.4
Other social security costs	0.3	0.4	0.1
Other staff costs	2.1	2.6	0.0
Total	$ 43.8	$ 40.9	$ 23.9
Average number of permanent employees
Seafarers | Employees	130.6	137.0	65.0
Land-based | Employees	286.6	269.1	133.0
Total | Employees	417.2	406.1	198.0
Operating expenses
Total staff costs
Staff costs	$ 9.2	$ 9.9	$ 9.7
Staff costs comprise the following
Total	9.2	9.9	9.7
Administrative expenses
Total staff costs
Staff costs	34.6	31.0	14.2
Staff costs comprise the following
Total	$ 34.6	$ 31.0	$ 14.2

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STAFF COSTS (Details 1) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	[1]
Non-Executive Board and Committee Remuneration, Short term
Total		$ 812	$ 657	$ 405
Cheam Directors Limited
Non-Executive Board and Committee Remuneration, Short term
Total	[2]	0	0	3
Christopher H. Boehringer
Non-Executive Board and Committee Remuneration, Short term
Total		290	237	88
Kari Millum Gardarnar
Non-Executive Board and Committee Remuneration, Short term
Total	[3],[4],[5]	0	0	31
Rasmus Johannes Hoffmann
Non-Executive Board and Committee Remuneration, Short term
Total	[3],[5]	0	0	29
Flemming Ipsen
Non-Executive Board and Committee Remuneration, Short term
Total	[3]	0	0	38
Olivier Dubois
Non-Executive Board and Committee Remuneration, Short term
Total	[3]	0	0	17
Alexander Green
Non-Executive Board and Committee Remuneration, Short term
Total	[3]	0	0	19
Jon Syvertsen
Non-Executive Board and Committee Remuneration, Short term
Total	[3]	0	0	19
David Weinstein
Non-Executive Board and Committee Remuneration, Short term
Total		174	131	48
Torben Janholt
Non-Executive Board and Committee Remuneration, Short term
Total		174	131	48
Goran Trapp
Non-Executive Board and Committee Remuneration, Short term
Total		174	158	58
Jeffery Stein
Non-Executive Board and Committee Remuneration, Short term
Total	[3],[5]	$ 0	$ 0	$ 7

[1] The 2015 figures represent amounts earned subsequent to the Restructuring on 13 July 2015.

[2] Former member of the Board of Directors of Njord. Left the Board of Directors due to the reverse acquisition on 13 July 2015.

[3] Former member of the Board of Directors of Former TORM A/S. Resigned on 25 August 2015.

[4] Resigned as Board Observer as of 31 July 2017.

[5] Took up position as Board Observer of TORM plc.

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STAFF COSTS (Details 2) $ in Thousands		12 Months Ended
		Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)		Dec. 31, 2016 DKK (kr)	Dec. 31, 2015 USD ($)
Disclosure Of Employee Benefits [Line Items]
Salary		$ 36,400	$ 32,300			$ 22,400
Annual performance bonus			559		kr 3,758,700
Jacob Meldgaard
Disclosure Of Employee Benefits [Line Items]
Salary	[1]	81	39
Taxable benefits	[1]	0	0
Annual performance bonus	[1]	0	0
Transaction bonus	[1]	0	0
Total	[1]	81	39
Jacob Meldgaard | TORM A/S
Disclosure Of Employee Benefits [Line Items]
Salary	[1]	923	834	[2]		362
Taxable benefits	[1]	42	41	[2]		19
Annual performance bonus	[1]	580	559	[2]		144
Transaction bonus	[1]	0	0	[2]		345
Total	[1]	$ 1,545	$ 1,434	[2]		$ 870

[1] Paid by legal entity as noted.

[2] The 2016 figures have been restated in order to include the figure for the annual bonus for 2016 as this was finalised and subsequently paid in 2017. No value was shown in the 2016 annual report. The total annual performance bonus of the Executive Director of TORM plc for 2016. arising in the period 1 January 2016 to 31 December 2016 was DKK 3.758.700 (USD 559t).

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STAFF COSTS - Parentheticals (Details 2) - 12 months ended Dec. 31, 2016 $ in Thousands	USD ($)	DKK (kr)
Disclosure Of Employee Benefits [Abstract]
Annual performance bonus	$ 559	kr 3,758,700

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STAFF COSTS (Details 3) - Long term incentive plan $ in Millions				12 Months Ended
		Dec. 13, 2016 kr / shares	Dec. 12, 2016 kr / shares	Dec. 31, 2017 USD ($) Share	Dec. 31, 2017 kr / shares	[1]	Dec. 31, 2016 Share	Dec. 31, 2015 Share
Disclosure of terms and conditions of share-based payment arrangement [line items]
RSU LTIP grant				866,600			2,127,400	0
Jacob Meldgaard
Disclosure of terms and conditions of share-based payment arrangement [line items]
RSU LTIP grant	[1]			1,276,273
Exercise price per share | kr / shares		kr 93.6	kr 96.3		kr 96.3
RSU grant value assuming 100% vesting | $	[1]			$ 3.4

[1] LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 2 of 18 January 2016. Therefore there is no minimum or maximum for 2017.

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STAFF COSTS - Parentheticals (Details 3) - kr / shares			12 Months Ended
	Dec. 13, 2016	Dec. 12, 2016	Dec. 31, 2017
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting percentage of RSU grant			100.00%
Long term incentive plan | Jacob Meldgaard
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price of RSU	kr 93.6	kr 96.3	kr 96.3	[1]

[1] LTIP award is fixed by the Board of Directors and was communicated via company announcement no. 2 of 18 January 2016. Therefore there is no minimum or maximum for 2017.

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STAFF COSTS (Details 4) - Long term incentive plan - Share	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding 1 January	1,999,800	0	0
Granted during the period	866,600	2,127,400	0
Exercised during the period	0	0	0
Expired during the period	(233,900)	0	0
Forfeited during the period	(21,300)	(127,600)	0
Outstanding 31 December	2,611,200	1,999,800	0
Exercisable 31 December	255,300	538,900	0

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STAFF COSTS (Detail Textuals)	1 Months Ended	12 Months Ended
	Jan. 31, 2017 Share	Dec. 31, 2017 USD ($) Share seafarer	Dec. 31, 2017 Share kr / shares	Dec. 31, 2016 USD ($) Share seafarer	Dec. 31, 2015 USD ($) Share seafarer	Dec. 31, 2014 Share
Disclosure Of Employee Benefits [Line Items]
Number of seafarers for which staff costs included in operating expenses | seafarer		131		137	65
Vesting period of RSUs granted		3 years
Vesting percentage of RSU grant		100.00%
Long term incentive plan
Disclosure Of Employee Benefits [Line Items]
Number of RSUs granted		866,600		2,127,400	0
Number of RSUs outstanding as of date		2,611,200	2,611,200	1,999,800	0	0
Key management personnel of entity or parent
Disclosure Of Employee Benefits [Line Items]
Agreegate compensation paid | $		$ 1,625,425		$ 1,735,563	$ 2,944,715
Agrergate compensation paid for pensions | $		$ 112,236		$ 93,163	$ 180,354
Chief executive officer | Long term incentive plan
Disclosure Of Employee Benefits [Line Items]
Vesting period of RSUs granted	5 years	5 years
Installment of RSUs vesting at each anniversary date	5 years
Number Of Shares Vested At First Anniversary Other Equity Instruments	255,345
Number of RSUs granted		1,276,725
Vesting percentage of RSU grant		100.00%
Number of RSUs outstanding as of date		1,021,380	1,021,380
Value of RSUs grant | $		$ 3,400,000
Market value of one TORM A-share (the closing price on 15 January 2016) | kr / shares			kr 84.05

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STAFF COSTS (Detail Textuals 1) - kr / shares	1 Months Ended	12 Months Ended
	Jan. 31, 2017	Dec. 31, 2017
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period of RSUs		3 years
Exercise period of RSUs		6 months
Long term incentive plan
Disclosure of terms and conditions of share-based payment arrangement [line items]
Exercise price of RSUs		kr 93.5
Long term incentive plan | Chief executive officer
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period of RSUs	5 years	5 years
Exercise period of RSUs		12 months

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REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Audit fees
Fees payable to the Company's auditor for the audit of the Company's annual accounts	$ 0.4	$ 0.4	$ 0.2
Audit of the Company's subsidiaries pursuant to legislation	0.2	0.1	0.1
Total audit fees	0.6	0.5	0.3
Non-audit fees
Audit related services	0.4	0.6	1.1
Tax services	0.0	0.3	0.5
Other services	0.0	0.1	0.2
Total non-audit fees	0.4	1.0	1.8
Total	$ 1.0	$ 1.5	$ 2.1

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REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY'S ANNUAL GENERAL MEETING (Detail Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Auditor's remuneration [abstract]
Auditor's remuneration	$ 1.0	$ 1.5	$ 2.1
Total audit fees	0.6	0.5	0.3
Auditor's remuneration for audit services	0.4	0.6	1.1
Auditor's remuneration for tax services	0.0	0.3	0.5
Auditor's remuneration for other services	$ 0.0	$ 0.1	$ 0.2

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INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill at begining of period	$ 0.0	$ 11.4
Goodwill at end of period	0.0	0.0	$ 11.4
Gross
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill at begining of period	11.4	11.4	0.0
Additions during the year	0.0	0.0	11.4
Goodwill at end of period	11.4	11.4	11.4
Accumulated impairment
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Goodwill at begining of period	(11.4)	0.0	0.0
Impairment losses for the year	0.0	(11.4)	0.0
Goodwill at end of period	$ (11.4)	$ (11.4)	$ 0.0

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TANGIBLE FIXED ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of changes in property, plant and equipment [abstract]
Balance	$ 1,389,650
Balance	1,384,795	$ 1,389,650
Prepayments On Vessels [Abstract]
Balance	44,036	72,600
Balance	88,378	44,036	$ 72,600
Vessels and capitalized dry docking
Reconciliation of changes in property, plant and equipment [abstract]
Balance	1,343,800	1,492,000
Balance	1,294,500	1,343,800	1,492,000
Prepayments On Vessels [Abstract]
Balance	44,100	72,600	34,700
Additions	44,300	76,900	142,500
Transferred to/from other items		(105,400)	(104,600)
Balance	88,400	44,100	72,600
Vessels and capitalized dry docking | Property, plant and equipment subject to operating leases
Reconciliation of changes in property, plant and equipment [abstract]
Balance	12,400	13,100
Balance	28,600	12,400	13,100
Vessels and capitalized dry docking | Gross
Reconciliation of changes in property, plant and equipment [abstract]
Balance	1,697,400	1,567,500	530,100
Additions	103,100	40,800	112,000
Additions from business combinations			857,400
Disposals	(14,300)	(16,300)	(18,600)
Transferred to/from other items		105,400	104,600
Transferred to assets held-for-sale	(59,600)		(18,000)
Balance	1,726,600	1,697,400	1,567,500
Vessels and capitalized dry docking | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Balance	180,000	75,500	27,900
Disposals	(14,300)	(15,900)	(18,600)
Depreciation for the year	113,600	120,400	66,500
Transferred to assets held-for-sale	(20,800)		(300)
Balance	258,500	180,000	75,500
Vessels and capitalized dry docking | Accumulated impairment
Reconciliation of changes in property, plant and equipment [abstract]
Balance	173,600	0	0
Impairment losses on tangible fixed assets		173,600	0
Balance	173,600	173,600	0
Other property, plant and equipment
Reconciliation of changes in property, plant and equipment [abstract]
Balance	1,800	2,500
Balance	1,900	1,800	2,500
Other property, plant and equipment | Property, plant and equipment subject to operating leases
Reconciliation of changes in property, plant and equipment [abstract]
Balance	0	0
Balance	0	0	0
Other property, plant and equipment | Gross
Reconciliation of changes in property, plant and equipment [abstract]
Balance	2,700	3,200
Additions	1,000	1,100	900
Additions from business combinations			2,500
Disposals	(100)	(1,600)	(200)
Balance	3,600	2,700	3,200
Other property, plant and equipment | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Balance	900	700
Disposals	(100)	(1,600)	(200)
Depreciation for the year	900	1,800	900
Balance	$ 1,700	$ 900	$ 700

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TANGIBLE FIXED ASSETS (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation expense relates to administrative expense	$ 114,451	$ 122,215	$ 67,327
Vessels and capitalized dry docking
Disclosure of detailed information about property, plant and equipment [line items]
Capitalized dry-docking costs	68,100	80,400	81,700
Other property, plant and equipment
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation expense relates to administrative expense	$ 900	$ 1,800	$ 900

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IMPAIRMENT TESTING (Details textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [abstract]
Projected cash flows calculation period	10 years
Impairment charge arising in current year	$ 20
Discount rate used in calculation based on a Weighted Average Cost of Capital (WACC)	8.70%	8.80%	8.30%

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IMPAIRMENT TESTING (Details textuals 1) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Historical average spot freight rates	10-year
LR2
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Amended historical average spot rate used in per day freight rate calculation	$ 17,216	$ 20,176	$ 21,975
LR1
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Amended historical average spot rate used in per day freight rate calculation	16,445	17,124	18,900
MR
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Amended historical average spot rate used in per day freight rate calculation	15,794	15,118	16,948
Handysize
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items]
Amended historical average spot rate used in per day freight rate calculation	$ 14,416	$ 15,203	$ 17,868

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IMPAIRMENT TESTING (Details textuals 2) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [abstract]
Adjustment of operating expenses for inflation, percentage	3.00%	2.00%
Adjustment of administrative expenses for inflation, percentage	2.00%	2.00%
Expected to generate normal income from delivery from shipyard	25 years
Average remaining life of tanker	14 years
Decrease/increase in tanker per day freight rates	$ 1,000
Decrease/increase in value in use of freight rates	$ 241,000,000
Increase/decrease in WACC percentage	1.00%
Decrease/increase in value in use of WACC	USD 100-112m
Increase/decrease in operating expenses percentage	10.00%
Decrease/increase in value in use of operating expenses	$ 187,000,000
Reversal of impairment	159,000,000
Market value based on broker values of vessels	1,672,000,000
Difference of Market value and Carrying amount	$ 20,000,000

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FINANCIAL ITEMS (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financial income
Interest income from cash and cash equivalents	[1]	$ 1,600	$ 200	$ 300
Exchange rate adjustments, including gain from forward exchange rate contracts		2,700	2,800	700
Total		4,255	2,814	992
Financial expenses
Interest expenses on mortgage and bank debt	[1]	33,300	29,700	15,000
Exchange rate adjustments, including loss from forward exchange rate contracts		3,200	2,600	600
Other financial expenses		4,100	5,200	1,300
Total		40,601	37,333	16,926
Total financial items		$ (36,300)	$ (34,500)	$ (15,900)

[1] Interest for financial assets and liabilities not at fair value through profit and loss.

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FREIGHT RECEIVABLES (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of financial assets that are either past due or impaired [line items]
Total net	$ 0	$ 500,000	$ 200,000
Gross
Disclosure of financial assets that are either past due or impaired [line items]
Total net	72,600	65,100	84,800
Provision for impairment of freight receivables
Disclosure of financial assets that are either past due or impaired [line items]
Total net	1,300,000	2,600,000	1,700,000	$ 0
Financial assets neither past due nor impaired | Gross
Disclosure of financial assets that are either past due or impaired [line items]
Total net	25,500,000	28,700,000	40,300,000
Financial assets past due but not impaired | Due before 30 days | Gross
Disclosure of financial assets that are either past due or impaired [line items]
Total net	26,000,000	13,000,000	22,800,000
Financial assets past due but not impaired | Due between 30 and 180 days | Gross
Disclosure of financial assets that are either past due or impaired [line items]
Total net	18,400,000	18,700,000	16,400,000
Financial Assets Past Due And Impaired | Due after 180 days | Gross
Disclosure of financial assets that are either past due or impaired [line items]
Total net	$ 2,700,000	$ 4,700,000	$ 5,300,000

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FREIGHT RECEIVABLES (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of financial assets [line items]
Balance at begining of period	$ 0.5	$ 0.2
Balance at end of period	0.0	0.5	$ 0.2
Accumulated impairment
Disclosure of financial assets [line items]
Balance at begining of period	2.6	1.7	0.0
Addition from business combinations	0.0	0.0	1.9
Provisions for the year	0.6	1.9	0.5
Provisions reversed during the year	(1.9)	(1.0)	(0.7)
Balance at end of period	$ 1.3	$ 2.6	$ 1.7

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FREIGHT RECEIVABLES (Detail Textual) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of financial assets that are either past due or impaired [line items]
Receivables individually determined to be impaired	$ 0.0	$ 0.5	$ 0.2
Financial assets individually assessed for credit losses
Disclosure of financial assets that are either past due or impaired [line items]
Receivables individually determined to be impaired	$ 0.0	$ 0.6	$ 1.9

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OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Trade and other receivables [abstract]
Partners and commercial managements	$ 0	$ 500
Derivative financial instruments	7,600	3,300
Tax receivables	1,300	1,100
Other	2,900	3,200
Other receivables (Note 11)	$ 11,787	$ 8,134

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TAX (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Tax for the year
Current tax for the year	$ 1,000	$ 1,200	$ 1,300
Adjustments related to previous years	(100)	(300)	(200)
Adjustment of deferred tax asset	(100)	(100)	(100)
Total	$ 777	$ 760	$ 1,041

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TAX (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax liability
Balance at 1 January	$ 45.0	$ 45.1	$ 0.0
Addition from business combination	0.0	0.0	45.2
Deferred tax for the year	(0.1)	(0.1)	(0.1)
Balance as of 31 December	$ 44.9	$ 45.0	$ 45.1

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TAX (Details textuals)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Major components of tax expense (income) [abstract]
Effective tax rate	24.40%	(0.60%)	0.80%

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COMMON SHARES & TREASURY SHARES (Details) - shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of classes of share capital [line items]
Number of shares issued	62,298,848	62,298,848	63,836,251
Common class A shares
Disclosure of classes of share capital [line items]
Number of shares issued	62,298,846	62,298,846	63,836,249
Common class B shares
Disclosure of classes of share capital [line items]
Number of shares issued	1	1	1
Common class C shares
Disclosure of classes of share capital [line items]
Number of shares issued	1	1	1

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COMMON SHARES & TREASURY SHARES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Common Shares & Treasury Shares [Abstract]
Balance as of 1 January	312.9	15.3	0
Additions	0	312.9	15.3
Cancellations	0	(15.3)	0
Disposals	0	0	0
Balance as of 31 December	312.9	312.9	15.3
Balance as of 1 January	$ 0	$ 0	$ 0
Additions	0	0	0
Cancellations	0	0	0
Disposals	0	0	0
Balance as of 31 December	$ 0	$ 0	$ 0
Balance as of 1 January	0.50%	0.20%	0.00%
Additions	0.00%	0.50%	0.20%
Cancellations	(0.00%)	(0.20%)	(0.00%)
Disposals	0.00%	0.00%	0.00%
Balance as of 31 December	0.50%	0.50%	0.20%

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COMMON SHARES & TREASURY SHARES (Detail Textuals) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) ratio Board_Member Vote shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($) shares
Common Shares & Treasury Shares [Abstract]
Share capital	$ 623	$ 623		$ 400
Number of votes in share capital | Vote	350,000,000
Maximum portion of agreegate issued and outstanding shares for holding rights as per written notification | ratio	0.33
Number of days elapsed from written notice of Board of Directors receipt	5 days
Minimum number of board members confirming written notice | Board_Member	0.66
Total consideration for the treasury shares	$ 2,887	$ 2,887	$ 200
Number of treasury shares held | shares	312.9	312.9	15.3	0
Nominal value of treasury shares held	$ 0	$ 0	$ 0	$ 0
Market value of treasury shares held	$ 2,700	$ 2,800	$ 200

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OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure For Other Liabilities [Abstract]
Partners and commercial managements	$ 1,400	$ 2,000
Accrued operating expenses	8,500	5,200
Accrued interest	5,200	5,800
Wages and social expenses	16,300	14,600
Derivative financial instruments	0	4,800
Payables to joint ventures	100	100
Other	2,300	500
Balance as of 31 December	$ 33,822	$ 33,055

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EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about borrowings [line items]
Effective interest rate	[1]	5.10%	4.60%	4.30%
Carrying value		$ 719,100	$ 671,600	$ 767,200
Hereof non-current		629,198	593,912	717,500
Hereof current	[2]	$ 86,000	$ 75,900	$ 49,700
DSF Facility 1
Disclosure of detailed information about borrowings [line items]
Maturity		2021	2019	2019
Effective interest rate	[1]	5.40%	4.60%	41.00%
Carrying value		$ 74,300	$ 109,400	$ 125,700
Hereof non-current		$ 74,300	$ 109,400	$ 125,700
TFA Facility 1
Disclosure of detailed information about borrowings [line items]
Maturity		2021	2021	2021
Effective interest rate	[1]	5.00%	4.60%	4.30%
Carrying value		$ 400,800	$ 470,000	$ 548,900
Hereof non-current		$ 400,800	$ 470,000	$ 548,900
DSF Facility 3
Disclosure of detailed information about borrowings [line items]
Maturity		2021	2021	2021
Effective interest rate	[1]	5.00%	4.60%	44.00%
Carrying value		$ 56,500	$ 62,200	$ 66,600
Hereof non-current		$ 56,500	$ 62,200	$ 66,600
DSF Facility 4
Disclosure of detailed information about borrowings [line items]
Maturity		2022	2022	2019
Effective interest rate	[1]	5.10%	4.80%	41.00%
Carrying value		$ 26,800	$ 30,000	$ 26,000
Hereof non-current		$ 26,800	30,000	26,000
TFA Facility 2
Disclosure of detailed information about borrowings [line items]
Maturity		2022
Effective interest rate	[1]	5.40%
Carrying value		$ 115,000	0	0
Hereof non-current		$ 115,000	0	0
ING
Disclosure of detailed information about borrowings [line items]
Maturity		2024
Effective interest rate	[1]	4.60%
Carrying value		$ 45,800	0	0
Hereof non-current		$ 45,800	$ 0	$ 0
Floating interest rate | DSF Facility 1
Disclosure of detailed information about borrowings [line items]
Fixed/floating		Floating
Floating interest rate | TFA Facility 1
Disclosure of detailed information about borrowings [line items]
Fixed/floating		Floating
Floating interest rate | DSF Facility 3
Disclosure of detailed information about borrowings [line items]
Fixed/floating		Floating
Floating interest rate | DSF Facility 4
Disclosure of detailed information about borrowings [line items]
Fixed/floating		Floating
Floating interest rate | TFA Facility 2
Disclosure of detailed information about borrowings [line items]
Fixed/floating		Floating
Floating interest rate | ING
Disclosure of detailed information about borrowings [line items]
Fixed/floating		Floating

[1] Effective interest rate includes deferred and amortized bank fees.

[2] The carrying value of the Group's mortgage debt and bank loans is, due to their short-term nature of fixing of interest, approximate to fair value, and excludes amortized bank fees.

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EFFECTIVE INTEREST RATE, OUTSTANDING MORTGAGE DEBT AND BANK LOANS (Detail Textuals) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) Bank Tankers Newbuildings	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jul. 31, 2015 USD ($)
Disclosure of detailed information about borrowings [line items]
Working capital facility	$ 271	$ 190	$ 75
Funding commitment	307	$ 149	$ 224
Danish ship finance | Announcement of Event Occuring in 2019
Disclosure of detailed information about borrowings [line items]
Funding commitment	$ 81
Number of year facility to finance newbuilding	7 years
Danish ship finance | Announcement of Event Occuring in 2019 | MR
Disclosure of detailed information about borrowings [line items]
Number of tanker | Tankers	4
Number of newbuilding | Newbuildings	4
Danish ship finance | Announcement of Event Occuring in 2019 | LR1
Disclosure of detailed information about borrowings [line items]
Number of tanker | Tankers	2
China export import Bank | Announcement of Event Occuring in 2018 | LR2
Disclosure of detailed information about borrowings [line items]
Number of tanker | Tankers	4
Funding commitment	$ 115
Number of year facility to finance newbuilding	12 years
Working capital facility
Disclosure of detailed information about borrowings [line items]
Working capital facility	$ 75			$ 75
Term Facility
Disclosure of detailed information about borrowings [line items]
Number of bank | Bank	4

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COLLATERAL SECURITY FOR MORTGAGE DEBT AND BANK LOANS (Detail Textual) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Collateral [Abstract]
Carrying amount for vessels as collateral security	$ 1,259	$ 1,115	$ 1,329

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GUARANTEE COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Guarantee Commitments And Contingent Liabilities [Abstract]
Guarantee commitments of the Group to Danish Shipowners' Association	$ 0.1	$ 0.1	$ 0.1

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CONTRACTUAL OBLIGATIONS (Details) $ in Millions	Dec. 31, 2017 USD ($)
Contractual Obligations [Line Items]
Mortgage debt and bank loans	$ 725.8	[1]
Interest payments related to scheduled interest fixing	56.2
Estimated variable interest payments	51.4	[2]
Finance lease liabilities	28.2
Interest element regarding finance lease	7.7
Newbuilding installments	306.9	[3]
Chartered-in vessels (operating lease)	2.9	[4]
Other operating leases	5.2	[5]
Trade payables and other obligations	51.5
Total	1,235.8
2018
Contractual Obligations [Line Items]
Mortgage debt and bank loans	92.7	[1]
Interest payments related to scheduled interest fixing	20.4
Estimated variable interest payments	11.9	[2]
Finance lease liabilities	2.9
Interest element regarding finance lease	2.3
Newbuilding installments	144.2	[3]
Chartered-in vessels (operating lease)	2.9	[4]
Other operating leases	2.5	[5]
Trade payables and other obligations	51.5
Total	331.3
2019
Contractual Obligations [Line Items]
Mortgage debt and bank loans	86.7	[1]
Interest payments related to scheduled interest fixing	14.4
Estimated variable interest payments	13.6	[2]
Finance lease liabilities	3.2
Interest element regarding finance lease	2.0
Newbuilding installments	162.7	[3]
Chartered-in vessels (operating lease)	0.0	[4]
Other operating leases	1.8	[5]
Trade payables and other obligations	0.0
Total	284.4
2020
Contractual Obligations [Line Items]
Mortgage debt and bank loans	82.2	[1]
Interest payments related to scheduled interest fixing	12.1
Estimated variable interest payments	12.2	[2]
Finance lease liabilities	3.4
Interest element regarding finance lease	1.7
Newbuilding installments	0.0	[3]
Chartered-in vessels (operating lease)	0.0	[4]
Other operating leases	0.7	[5]
Trade payables and other obligations	0.0
Total	112.3
2021
Contractual Obligations [Line Items]
Mortgage debt and bank loans	346.7	[1]
Interest payments related to scheduled interest fixing	8.9
Estimated variable interest payments	9.1	[2]
Finance lease liabilities	3.7
Interest element regarding finance lease	1.4
Newbuilding installments	0.0	[3]
Chartered-in vessels (operating lease)	0.0	[4]
Other operating leases	0.2	[5]
Trade payables and other obligations	0.0
Total	370.0
2022
Contractual Obligations [Line Items]
Mortgage debt and bank loans	89.2	[1]
Interest payments related to scheduled interest fixing	0.4
Estimated variable interest payments	2.6	[2]
Finance lease liabilities	15.0
Interest element regarding finance lease	0.3
Newbuilding installments	0.0	[3]
Chartered-in vessels (operating lease)	0.0	[4]
Other operating leases	0.0	[5]
Trade payables and other obligations	0.0
Total	107.5
Thereafter
Contractual Obligations [Line Items]
Mortgage debt and bank loans	28.3	[1]
Interest payments related to scheduled interest fixing	0.0
Estimated variable interest payments	2.0	[2]
Finance lease liabilities	0.0
Interest element regarding finance lease	0.0
Newbuilding installments	0.0	[3]
Chartered-in vessels (operating lease)	0.0	[4]
Other operating leases	0.0	[5]
Trade payables and other obligations	0.0
Total	$ 30.3

[1] The presented amounts to be repaid do not include directly related costs arising from the issuing of the loans of USD 4.8m (2016: USD 2.0m), which are amortized over the term of the loans. Borrowing costs capitalized during the year amount to USD 3.5m (2016: USD 1.3m).

[2] Variable interest payments are estimated based on the forward rates for each interest period.

[3] As of 31 December 2017, TORM had ten contracted newbuildings (2016: four) to be delivered during 2018-2019.

[4] Leases have been entered into with a mutually non-cancellable lease period of up to eight years. Certain leases include a profit-sharing element implying that the actual charter hire may be higher. The average period until redelivery of the vessels is 0.5 years (2016: 0.9 years). The leasing expense for 2017 amounts to USD 8.5m (2016: USD 21.5m, 2015: USD 12.0m) and is recognized under "Charter hire".

[5] Other operating leases primarily consist of contracts regarding office spaces, cars and apartments as well as IT-related contracts. The leasing expense for 2017 amounts to USD 2.3m (2016: USD 2.2m) and is recognized under "Administrative expenses".

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CONTRACTUAL OBLIGATIONS (Details 1) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Opening balance as of 1 January 2017	$ 685.2
Cash - Borrowings	205.6
Cash - Repayments	(143.6)
Non-Cash - Changes in fair value	0.7
Non-Cash - Other changes	1.2
End balance as of 31 December 2017	749.1
Mortgage debt
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Opening balance as of 1 January 2017	669.6
Cash - Borrowings	175.4
Cash - Repayments	(125.5)
Non-Cash - Changes in fair value	0.7
Non-Cash - Other changes	0.7
End balance as of 31 December 2017	720.9
Financial lease
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Opening balance as of 1 January 2017	13.6
Cash - Borrowings	30.2
Cash - Repayments	(16.7)
Non-Cash - Changes in fair value	0.6
Non-Cash - Other changes	0.5
End balance as of 31 December 2017	28.2
Swaps, fair value hedging
Disclosure of reconciliation of liabilities arising from financing activities [line items]
Opening balance as of 1 January 2017	2.0
Cash - Borrowings	0.0
Cash - Repayments	(1.4)
Non-Cash - Changes in fair value	(0.6)
Non-Cash - Other changes	0.0
End balance as of 31 December 2017	$ 0.0

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CONTRACTUAL OBLIGATIONS (Details 2) $ in Millions	Dec. 31, 2017 USD ($)
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	$ 50.2	[1]
2018
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	45.5
2019
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	4.7
2020
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0
2021
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0
2022
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0
Thereafter
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0
Vessel | 2018
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	45.5	[1]
Vessel | 2019
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	4.7	[1]
Vessel | 2020
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0	[1]
Vessel | 2021
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0	[1]
Vessel | 2022
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	0.0	[1]
Vessel | Thereafter
Disclosure of finance lease and operating lease by lessor [line items]
Charter hire income for vessels	$ 0.0	[1]

[1] Charter hire income for vessels on time charter and bareboat charter is recognized under "Revenue". The average period until redelivery of the vessels is 1.1 year (2016: 2.1 years).

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CONTRACTUAL OBLIGATIONS (Detail Textuals) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) Newbuilding	Dec. 31, 2016 USD ($) Newbuilding	Dec. 31, 2015 USD ($)
Disclosure Of Contractual Commitments [Abstract]
Direct issuance costs for borrowings	$ 4.8	$ 2.0
Borrowing costs capitalized	$ 3.5	$ 1.3
Expected number of newbuildings to be delivered during 2018-2019 | Newbuilding	10	4
Average period of redelivery of vessels	5 years	9 years
Maximum mutually non-cancellable operating lease period	8 years
Lease expense for Charter hire	$ 8.5	$ 21.5	$ 12.0
Other operating lease expense	$ 2.3	$ 2.2
Average period until redelivery of the vessels	1 year 1 month 6 days	2 years 1 month 6 days

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DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives as of 31 December	$ 7.5	$ (1.5)
Forward freight agreements
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives as of 31 December	(0.2)	(0.1)
Bunker swaps
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives as of 31 December	0.8	0.8
Forward exchange contracts
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives as of 31 December	1.8	(4.6)
Interest rate swaps
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives as of 31 December	$ 5.1	$ 2.4

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DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Financial instruments designated as hedging instruments, at fair value	$ 7.5	$ (1.5)
Other receivables
Disclosure of detailed information about financial instruments [line items]
Financial instruments designated as hedging instruments, at fair value	7.3	3.3
Other liabilities
Disclosure of detailed information about financial instruments [line items]
Financial instruments designated as hedging instruments, at fair value	$ 0.2	$ (4.8)

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DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2015
Hedging reserves
Disclosure of detailed information about financial instruments [line items]
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity	$ 6.9	$ (1.0)	$ 1.4
Revenue
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.5	(0.1)	0.6
Port expenses, bunkers and commissions
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	1.2	0.0	(0.9)
Financial items
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	(3.4)	(2.8)	0.0
Forward freight agreements | Hedging reserves
Disclosure of detailed information about financial instruments [line items]
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity	(0.3)	(0.2)	0.0
Forward freight agreements | Revenue
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.5	(0.1)	0.6
Forward freight agreements | Port expenses, bunkers and commissions
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Forward freight agreements | Financial items
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Bunker swaps | Hedging reserves
Disclosure of detailed information about financial instruments [line items]
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity	0.0	1.0	(0.2)
Bunker swaps | Revenue
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Bunker swaps | Port expenses, bunkers and commissions
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	1.2	0.0		$ (0.9)
Bunker swaps | Financial items
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Forward exchange contracts | Hedging reserves
Disclosure of detailed information about financial instruments [line items]
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity	4.4	(3.4)	0.8
Forward exchange contracts | Revenue
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Forward exchange contracts | Port expenses, bunkers and commissions
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Forward exchange contracts | Financial items
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	(1.4)	0.1	0.0
Interest rate swaps | Hedging reserves
Disclosure of detailed information about financial instruments [line items]
Fair value adjustments of derivative financial instruments designated as hedge recognized in equity	2.7	1.6	0.8
Interest rate swaps | Revenue
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Interest rate swaps | Port expenses, bunkers and commissions
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	0.0	0.0	0.0
Interest rate swaps | Financial items
Disclosure of detailed information about financial instruments [line items]
Gain (loss) on derivative financial instruments, recognised in profit or loss	$ (2.0)	$ (2.9)	$ 0.0

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DERIVATIVE FINANCIAL INSTRUMENTS (Details Textuals) kr in Millions, $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2017 DKK (kr)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 DKK (kr)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 DKK (kr)
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives	$ 7.5		$ (1.5)
Forward freight agreements
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives	(0.2)		(0.1)
Bunker swaps
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives net of a previously fixed hedge	0.6		0.8		$ (0.2)
Fair value of derivatives	0.8		0.8
Forward exchange contracts
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives	1.8		(4.6)
Notional amount | kr		kr 257.0		kr 336.4		kr 235.1
Interest rate swaps
Disclosure of detailed information about financial instruments [line items]
Fair value of derivatives	5.1		2.4
Notional amount	$ 406.4		$ 373.8		$ 382.3

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Decrease in freight rates of USD/day 1,000:
Changes in profit before tax	$ 24.1	$ 25.0	$ 26.7
Changes in equity	$ 24.1	$ 25.0	$ 26.7

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Increase in the bunker prices of 10% per ton:
Changes in profit before tax	$ (18.3)	$ (15.6)	$ (12.8)
Changes in equity	$ (18.3)	$ (15.6)	$ (12.8)

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effect of a 10% increase of DKK and EUR:
Changes in profit before tax	$ (2.5)	$ (1.7)	$ (2.8)
Changes in equity	$ (2.5)	$ (1.7)	$ (2.8)

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effect of a 1%-point increase in interest rates:
Changes in profit before tax	$ (3.2)	$ (2.5)	$ (3.3)
Changes in equity	$ 3.6	$ 6.8	$ 9.5

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Detail Textual) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) metric_tons Company Club	Dec. 31, 2016 USD ($) metric_tons	Dec. 31, 2015 USD ($) metric_tons
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of freight earnings derived from tankers secured by agreements	12.00%	10.00%	5.00%
Percentage of physical time charter contracts accounted for overall hedging	66.00%	83.00%	95.00%
Percentage of coverage	13.00%	12.00%	8.00%
Number of Protection and Indemnity club | Club	2
Bottom of range
Disclosure of nature and extent of risks arising from financial instruments [line items]
Number of companies to diversify risk | Company	14
Long Position
Disclosure of nature and extent of risks arising from financial instruments [line items]
Notional contract value of derivative | $	$ 12	$ 3	$ 4
Notional contract volume | metric_tons	530,000	190,000	142,000
Short Position
Disclosure of nature and extent of risks arising from financial instruments [line items]
Notional contract value of derivative | $	$ 44	$ 12	$ 6
Notional contract volume | metric_tons	1,754,000	781,000	215,000
Cargo contracts and time charte ragreements | Bottom of range
Disclosure of nature and extent of risks arising from financial instruments [line items]
Coverage period under agreement	6 months
Cargo contracts and time charte ragreements | Top of range
Disclosure of nature and extent of risks arising from financial instruments [line items]
Coverage period under agreement	36 months
Number of companies to diversify risk | Company	16
Forward freight agreements | Bottom of range
Disclosure of nature and extent of risks arising from financial instruments [line items]
Coverage period under agreement	0 months
Forward freight agreements | Top of range
Disclosure of nature and extent of risks arising from financial instruments [line items]
Coverage period under agreement	24 months

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RISKS ASSOCIATED WITH TORM'S ACTIVITIES (Detail Textual 1) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) Tanker Banks	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Disclosure of nature and extent of risks arising from financial instruments [line items]
Carrying value of fleet	$ 1,294.0	$ 1,344.0
Market value of fleet (excluding undelivered newbuildings)	$ 1,260.0	$ 1,260.0
Number of vessels on order for delivery in 2018-2019 | Tanker	10
Threshold percentage of total voyage costs as cost of fuel oil consumed by vessels	55.00%	50.00%	57.00%
Percentage of bunker consumption hedged	3.30%	0.90%	0.20%
Percentage of bunker requirements for hedging instruments	2.10%	1.60%	0.70%
Number of banks having loan portfolio | Banks	9
Aggregate insured value of hull and machinery and interest for TORM's owned vessels	$ 1,400.0	$ 1,600.0	$ 2,000.0
Percentage of frieght revenues	8.20%	12.60%	12.60%
Average percentage of demurrage	97.00%	96.80%	96.00%
Percentage of total freight revenues as demurrage	16.80%	15.00%	17.70%
Percentage of forward freight agreements (FFAs) and fuel swaps	65.00%	93.00%	100.00%
Percentage of administrative expenses denominated in currencies other than USD	98.00%	99.00%	98.00%
Percentage of operating expenses denominated in currencies other than USD	25.00%	27.00%	26.00%
Percentage of administrative and operating expenses denominated in currencies in DKK and EUR	62.00%	74.00%	55.00%
Percentage of exposure to interest rate risk	63.00%	68.00%	65.00%
Floating rate loans description of variable rate basis	3 or 6 months Libor
Increased interest-bearing debt	$ 719.1	$ 671.6	$ 767.2
Liquidity reserve in cash	134.0
Undrawn credit facilities	271.0	190.0	75.0
Revolving Credit Facilities
Disclosure of nature and extent of risks arising from financial instruments [line items]
Undrawn credit facilities	75.0
Interest bearing debt
Disclosure of nature and extent of risks arising from financial instruments [line items]
Increase (decrease) in interest-bearing debt	47.0	(95.0)	639.0
Increased interest-bearing debt	$ 719.0	$ 672.0	$ 767.0
Handysize Tanker
Disclosure of nature and extent of risks arising from financial instruments [line items]
Number of tanker sold | Tanker	3
MR Tanker
Disclosure of nature and extent of risks arising from financial instruments [line items]
Number of tanker sold | Tanker	1
Number of tanker purchased | Tanker	2
Number of additional tanker purchased | Tanker	3
LR1 Tanker
Disclosure of nature and extent of risks arising from financial instruments [line items]
Number of additional tanker purchased | Tanker	1

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FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions		Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		$ 7.6	$ 3.3
Financial assets at amortised cost		209.7	143.3
Financial assets		217.3	146.6
Financial liabilities, at fair value		0.2	4.8
Financial liabilities at amortised cost		809.3	740.0
Financial liabilities		809.1	744.8
Mortgage debt and bank loans
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[1]	0.0	0.0
Financial liabilities at amortised cost	[1]	720.9	669.6
Financial liabilities	[1]	720.9	669.6
Financial lease
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Financial liabilities at amortised cost	[2]	28.2	13.6
Financial liabilities	[2]	28.2	13.6
Trade payables
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Financial liabilities at amortised cost	[2]	26.2	28.5
Financial liabilities	[2]	26.2	28.5
Other liabilities
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	(0.2)	4.8
Financial liabilities at amortised cost	[2]	34.0	28.3
Financial liabilities	[2]	33.8	33.1
Freight receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Financial assets at amortised cost	[2]	71.3	62.5
Financial assets	[2]	71.3	62.5
Other receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		7.6	3.3
Financial assets at amortised cost		4.2	4.8
Financial assets		11.8	8.1
Cash and cash equivalents
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Financial assets at amortised cost	[2]	134.2	76.0
Financial assets	[2]	134.2	76.0
Level 1
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		0.0	0.0
Financial liabilities, at fair value		0.0	0.0
Level 1 | Mortgage debt and bank loans
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[1]	0.0	0.0
Level 1 | Financial lease
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 1 | Trade payables
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 1 | Other liabilities
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 1 | Freight receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Level 1 | Other receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		0.0	0.0
Level 1 | Cash and cash equivalents
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Level 2
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		7.6	3.3
Financial liabilities, at fair value		(0.2)	4.8
Level 2 | Mortgage debt and bank loans
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[1]	0.0	0.0
Level 2 | Financial lease
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 2 | Trade payables
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 2 | Other liabilities
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	(0.2)	4.8
Level 2 | Freight receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Level 2 | Other receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		7.6	3.3
Level 2 | Cash and cash equivalents
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Level 3
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		0.0	0.0
Financial liabilities, at fair value		0.0	0.0
Level 3 | Mortgage debt and bank loans
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[1]	0.0	0.0
Level 3 | Financial lease
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 3 | Trade payables
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 3 | Other liabilities
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	[2]	0.0	0.0
Level 3 | Freight receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	0.0	0.0
Level 3 | Other receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		0.0	0.0
Level 3 | Cash and cash equivalents
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	[2]	$ 0.0	$ 0.0

[1] See note 15.

[2] Due to the short maturity, the carrying value is considered to be an appropriate expression of the fair value.

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RELATED PARTY TRANSACTIONS (Detail Textual)	12 Months Ended
	Dec. 31, 2017
Disclosure of transactions between related parties [abstract]
Name of ultimate parent of group	Oaktree Capital Group, LLC,

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NON-CURRENT ASSETS SOLD DURING THE YEAR (Details) - Non-current assets held for sale $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) Vessel	Dec. 31, 2015 USD ($) Vessel
Disclosure Of Information About Non Current Assets Held For Sale [Line Items]
Number of vessels sold	8
Number of vessels delivered to new owner	4
Number of vessels expected to be delivered in Q1	1
Number of remaining vessels sold	3	2
Profit from sale of vessels | $	$ 2.8
Impairment on sold or held-for-sale vessels | $	$ 3.6
Amount in connection with wind-down of bulk activities | $		$ 18.0

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CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reversal of other non-cash movements:
Amortization of acquired assets and liabilities		$ (100)	$ (700)
Exchange rate adjustments	$ 1,800	(2,400)	(100)
Share-based payments	1,900	2,000
Equity transactions expensed in relation to the Corporate Reorganization		(6,400)
Other adjustments		(200)	(100)
Total	3,700	(7,100)	(900)
Adjustments For Decrease (Increase) In Trade Accounts Receivables And Payables For Bunkers [Abstract]
Change in bunkers	(1,600)	(6,100)	15,600
Change in receivables	(12,400)	18,100	6,100
Change in prepayments	(1,400)	2,700	4,900
Change in trade payables and other liabilities	(4,500)	(5,400)	(11,900)
Adjusted for fair value changes of derivative financial instruments	6,900	(1,000)	2,200
Total	$ 12,996	$ (8,322)	$ (16,870)

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ENTITIES IN THE GROUP (Details)	12 Months Ended
	Dec. 31, 2017
Disclosure of subsidiaries [line items]
Name of parent entity	TORM plc
Country of incorporation	United Kingdom
TORM A/S
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM A/S	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
DK Vessel HoldCo GP ApS
Disclosure of subsidiaries [line items]
Name of subsidiary	DK Vessel HoldCo GP ApS	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
DK Vessel HoldCo K/S
Disclosure of subsidiaries [line items]
Name of subsidiary	DK Vessel HoldCo K/S	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM (Gibraltar) Njord Midco Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM (Gibraltar) Njord Midco Ltd	[1]
Country of incorporation of subsidiary	Gibraltar
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Chartering Inc
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Chartering Inc	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Agnes, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Agnes, Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Alice, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Alice, Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Almena, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Almena, Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Amalie, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Amalie, Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Aslaug, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Aslaug, Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Hardrada, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Hardrada, Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings St.Michaelis Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings St.Michaelis Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings St. Gabriel Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings St. Gabriel Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Harald Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Harald Pte. Ltd	[1],[5]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Gorm Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Gorm Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Knut Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Knut Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Valdemar Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Valdemar Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Agnete, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Agnete, Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Alexandra, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Alexandra, Pte. Ltd	[1]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Anabel, Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Anabel, Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Arawa Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Arawa Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Leif Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Leif Pte. Ltd	[1],[4]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Singapore Njord Holdings Rolf Pte. Ltd
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Singapore Njord Holdings Rolf Pte. Ltd	[1],[5]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Holdings Mrs Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Holdings Mrs Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Anne Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Anne Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Freya Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Freya Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Gerd Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Gerd Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Gertrud Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Gertrud Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Gunhild Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Gunhild Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Helene Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Helene Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Helvig Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Helvig Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Ingeborg Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Ingeborg Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Mary Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Mary Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Ragnhild Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Ragnhild Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Thyra Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Thyra Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Valborg Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Valborg Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OCM Njord Vita Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	OCM Njord Vita Inc.	[1]
Country of incorporation of subsidiary	Marshall Islands
Proportion of ownership interest in subsidiary	100.00%	[3]
OMI Holding Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	OMI Holding Ltd.	[1],[2],[4]
Country of incorporation of subsidiary	Mauritius
Proportion of ownership interest in subsidiary	100.00%	[3]
Torghatten & TORM Shipowning ApS
Disclosure of subsidiaries [line items]
Name of subsidiary	Torghatten & TORM Shipowning ApS	[1],[2],[5]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
TORM Brasil Consultoria em Transporte Maritimo LTDA.
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM Brasil Consultoria em Transporte Maritimo LTDA.	[1],[2],[6]
Country of incorporation of subsidiary	Brazil
Proportion of ownership interest in subsidiary	100.00%	[3]
TORM Crewing Service Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM Crewing Service Ltd.	[1],[2]
Country of incorporation of subsidiary	Bermuda
Proportion of ownership interest in subsidiary	100.00%	[3]
TORM Shipping India Private Limited
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM Shipping India Private Limited	[1],[2]
Country of incorporation of subsidiary	India
Proportion of ownership interest in subsidiary	100.00%	[3]
TORM Singapore Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM Singapore Pte. Ltd.	[1],[2]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
TORM USA LLC
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM USA LLC	[1],[2]
Country of incorporation of subsidiary	USA
Proportion of ownership interest in subsidiary	100.00%	[3]
TT Shipowning K/S
Disclosure of subsidiaries [line items]
Name of subsidiary	TT Shipowning K/S	[1],[2],[5]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 1 K/S
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 1 K/S	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 2 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 2 Pte. Ltd.	[1],[2],[6]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 3 K/S
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 3 K/S	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 4 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 4 Pte. Ltd.	[1],[2],[6]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 5 K/S
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 5 K/S	[1],[2],[7]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 6 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 6 Pte. Ltd.	[1],[2]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 7 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 7 Pte. Ltd.	[1],[2]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 8 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 8 Pte. Ltd.	[1],[2]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 9 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 9 Pte. Ltd.	[1],[8]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 10 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 10 Pte. Ltd.	[1],[8]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 11 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 11 Pte. Ltd.	[1],[8]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo 12 Pte. Ltd.
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo 12 Pte. Ltd.	[1],[7]
Country of incorporation of subsidiary	Singapore
Proportion of ownership interest in subsidiary	100.00%	[3]
TORM Shipping (Phils.), Inc.
Disclosure of subsidiaries [line items]
Name of subsidiary	TORM Shipping (Phils.), Inc.	[1],[2]
Country of incorporation of subsidiary	Philippines
Proportion of ownership interest in subsidiary	25.00%	[3]
VesselCo A ApS
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo A ApS	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo C ApS
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo C ApS	[1],[2]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]
VesselCo E ApS
Disclosure of subsidiaries [line items]
Name of subsidiary	VesselCo E ApS	[1],[7]
Country of incorporation of subsidiary	Denmark
Proportion of ownership interest in subsidiary	100.00%	[3]

[1] All subsidiaries are consolidated in full.

[2] Entities added in the financial year ended 31 December 2015.

[3] For all subsidiaries, ownership and voting rights are the same except for TORM SHIPPING (PHILS.) INC where voting rights are 100%.

[4] Entities dissolved in the financial year ended 31 December 2017.

[5] Entities dissolved in the financial year ended 31 December 2016.

[6] Entities dissolved in the financial year ended 31 December 2015.

[7] Entities added in the financial year ended 31 December 2017.

[8] Entities added in the financial year ended 31 December 2016.

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ENTITIES IN THE GROUP (Details 1) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017		Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Entities [Line Items]
Profit and loss from continuing operations		$ 2,407		$ (142,491)	$ 125,983
Other compre-hensive income	[1]	7,279	[2]	(1,250)	1,560
Total compre-hensive income		$ 9,686		$ (143,741)	$ 127,543
Long Range 2 A/S
Disclosure Of Entities [Line Items]
Country		Denmark
% Control		50.00%
Profit and loss from continuing operations		$ 0
Other compre-hensive income		0
Total compre-hensive income		$ 0
LR2 Management K/S
Disclosure Of Entities [Line Items]
Country		Denmark
% Control		50.00%
Profit and loss from continuing operations		$ 0
Other compre-hensive income		0
Total compre-hensive income		$ 0

[1] No income tax was incurred relating to other comprehensive income/(loss) items.

[2] Please refer to "Consolidated Statement of Comprehensive Income".

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ENTITIES IN THE GROUP (Detail Textuals)	12 Months Ended
	Dec. 31, 2017
Disclosure of information about consolidated structured entities [abstract]
Percentage of voting rights held in subsidiaries	100.00%

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EARNINGS PER SHARE & DIVIDEND PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Earnings Per Share And Dividend Per Share [Abstract]
Net profit/(loss) for the year	$ 2,407	$ 142,491	$ 125,983
Average number of shares	62.3	63.1	51.7
Average number of treasury shares	(0.3)	(0.2)	0.0
Average number of shares outstanding	62.0	62.9	51.7
Dilutive effect of outstanding share options	0.0	0.0	0.0
Average number of shares outstanding incl. dilutive effect of share options	62.0	62.9	51.7
Basic earnings/(loss) per share (USD)	$ 0.04	$ (2.3)	$ 2.4
Diluted earnings/(loss) per share (USD)	$ 0.04	$ (2.3)	$ 2.4

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EARNINGS PER SHARE & DIVIDEND PER SHARE (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
DIVIDEND PER SHARE
Dividend for the year	$ 1.2	$ 25.0	$ 0.0
Number of shares, end of period	62.3	62.3	63.8
Dividend per share	$ 0.02	$ 0.4	$ 0

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BUSINESS COMBINATIONS IN 2015 (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 13, 2015
Disclosure of detailed information about business combination [abstract]
Tangible fixed assets				$ 859.9
Investment in joint ventures				0.3
Bunkers				27.8
Freight receivables				53.4
Other receivables				6.6
Prepayments				10.6
Cash and cash equivalents				77.5
Deferred tax liabilities				45.1
Mortgage debt and bank loans				(560.7)
Finance lease liabilities				13.5
Trade payables				27.3
Current tax liabilities				1.4
Other liabilities				29.7
Time charter contracts				1.6
Deferred income				0.4
Net assets acquired				356.4
Goodwill	$ 0.0	$ 0.0	$ 11.4	11.4
Consideration (purchase price)				367.8
Shares				349.8
Warrants				18.0
Total consideration transferred				$ 367.8

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BUSINESS COMBINATIONS IN 2015 (Detail Textuals) - USD ($) $ in Millions		12 Months Ended
	Jul. 13, 2015	Dec. 31, 2017	Dec. 31, 2015
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items]
Percentage of voting rights held in subsidiaries		100.00%
TORM A/S | OCM Njord Holdings S.a.R.L. | Business combinations
Disclosure of transactions recognised separately from acquisition of assets and assumption of liabilities in business combination [line items]
Ownership percentage	100.00%
Percentage of voting rights held in subsidiaries	61.99%
Freight and other receivables acquired	$ 60.0
Gross contractual amount	61.9
Contractual cash flows not to expected to be collected	1.9
Revenue	390.8
Profit for the period			$ 88.2
Revenue of combined Group	$ 854.3
Profit for the period of combined Group			$ 186.7