Table:
| USDm | 2019 | 2018 | 2017 |
| --- | --- | --- | --- |
| Reconciliation to revenue |  |  |  |
| Revenue | 692.6 | 635.4 | 657.0 |
| Port expenses, bunkers and commissions | -267.7 | -283.0 | -259.9 |
| Charter hire | - | -2.5 | -8.5 |
| Operating expenses | -173.0 | -180.4 | -188.4 |
| Gross profit | 251.9 | 169.5 | 200.2 |
Paragraphs:
ALTERNATIVE PERFORMANCE MEASURES
Gross profit:
TORM defines Gross profit, a performance measure, as revenue less port expenses, bunkers and commissions, charter hire and operating expenses. The Company reports Gross profit because we believe it provides additional meaningful information to investors, as Gross profit measures the net earnings from shipping activities. Gross profit is calculated as follows:
Question:
How does TORM define gross profit?
Answer: TORM defines Gross profit, a performance measure, as revenue less port expenses, bunkers and commissions, charter hire and operating expenses.