Note 20 - Operating Leases as Lessee

The Company has entered into different operating leases for office premises, office machines and communication satellite equipment for the vessels. The leases also include a substitute vessel on a time charter party. 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

2015

2014

(Amounts in USD 1,000)

2015

2014

-

-

Annual lease payment on operational leases

2,985

4,020

         

As of 31 December 2015, the Company had some commitments relating to lease agreements which fall due as follows:

         

PARENT COMPANY

 

Fall due

CONSOLIDATED

-

 

2016

 

1,618

-

 

2017

 

1,062

-

 

2018

 

1,122

-

 

Total

 

3,802

Net present value of future commitments relating to lease agreements are calculated to be USD 3,473 for the Company There are no lease agreement for the Parent. The interest rate in the calculation of net present value is 5 %.