Note 19 - Leases

The Company has entered into different operating leases for office premises, office machines, and communication satellite equipment for the vessels. The lease period for the lease agreements varies and most of the leases contain an option for extension.

The lease costs were as follows:

Parent company

Consolidated

2017

2016

(Amounts in USD 1,000)

2017

2016

-

-

Annual lease payment on operational leases

3,115

3,042

 

As of 31 December 2017, the Company had commitments relating to lease agreements which fall due as follows.

Parent company

Fall due

Consolidated

-

2018

2,296

-

2019

1,326

-

2020

1,864

-

Total

5,486

Net present value of future commitments relating to lease agreements are calculated to be USD 5,000K for the Company There are no lease agreement for the Parent. The interest rate in the calculation of net present value is 5 %.

Operating Leases as Lessor of vessels:

The table below shows future minimum lease payments for vessels fixed on operational leases (in total 25 Time Charter contracts and 2 Bare Boat contracts as of December 31, 2017). For the Time Charter contracts, the service element related to operations of the vessels (crewing, maintenance etc.) is also included in the amounts presented below. Optional periods are not included in the amounts below.

Parent company

(Amounts in USD 1,000)

Consolidated

2017

2016

Fall due

2017

2016

-

-

Within 1 year

214,460

220,368

-

-

1 to 5 years

540,280

589,091

-

-

After 5 years

74,411

185,318

-

-

Total

829,151

994,776

Board Of Directors

Financial Statements

Notes