Cash Flow / Liquidities − Directional
Directional cash and undrawn committed credit facilities amount to US$2,639 million at December 31, 2024, of which US$1,533 million is considered as pledged to specific project debt-servicing related to FPSO ONE GUYANA, FPSO Alexandre de Gusmão, FPSO Prosperity and FPSO Jaguar, or otherwise restricted in its utilization.
The consolidated cash flow statement under Directional reporting is as follows:
in millions of US$ | 2024 | 2023 | |
|---|---|---|---|
Directional EBITDA | 1,896 | 1,319 | |
Adjustments for non-cash and investing items | |||
Directional Addition/(release) provision | 23 | 51 | |
Directional Effect of disposal of property, plant and equipment | 1,112 | 902 | |
Directional (Gain) / loss on acquisition of shares in investees | (74) | (0) | |
Directional Share-based payments | 21 | 20 | |
Changes in operating assets and liabilities | |||
Directional (Increase)/Decrease in operating receivables | (1,181) | (211) | |
Directional Movement in contract assets | 124 | (153) | |
Directional (Increase)/Decrease in inventories | (26) | (124) | |
Directional Increase/(Decrease) in operating liabilities | 773 | (84) | |
Directional Income taxes paid | (178) | (104) | |
Directional Net cash flows from (used in) operating activities | 2,492 | 1,616 | |
Directional Capital expenditures | (937) | (1,658) | |
Directional (Addition) / repayments of funding loans | (4) | (4) | |
Directional Cash flows from changes in interests of subsidiaries | 1 | 0 | |
Directional Cash receipts from sale of investments in joint ventures | 57 | (0) | |
Directional Other investing activities | 27 | 23 | |
Directional Net cash flows from (used in) investing activities | (858) | (1,639) | |
Directional Additions and repayments of borrowings and lease liabilities | (969) | 287 | |
Directional Dividends paid to shareholders | (154) | (197) | |
Directional Share repurchase program | (102) | (5) | |
Directional Payments from/to non-controlling interests for change in ownership | - | (21) | |
Directional Proceeds from settlement of interest rate swaps | - | 154 | |
Directional Interest paid | (327) | (248) | |
Directional Net cash flows from (used in) financing activities | (1,552) | (29) | |
Directional Foreign currency variations | (3) | 0 | |
Directional Net increase/(decrease) in cash and cash equivalents | 79 | (52) |
The Company generated strong Directional operating cash flows mainly as a result of the cash flow from the fleet under operations, the positive turnkey cash flows benefiting from client's milestone payments on FPSO projects and the proceeds received from FPSO Liza Destiny and FPSO Prosperity sale.
Cash generated from the strong Directional operating cash flows and drawdowns on project and construction financings, together with some of the Company's existing cash, was primarily used to:
- Invest in the five FPSOs under construction over the period and the Fast4Ward® new build multi-purpose hulls;
- Repayment of the project loan following the FPSO Liza Destiny and FPSO Prosperity sale;
- Return funds to shareholders through dividends and share repurchase programs; and
- Service the Company’s non-recourse debt and interest in accordance with the respective repayment schedules.
The Company completed the acquisition of the shares in the lease and operating entities related to FPSOs N’Goma, Saxi Batuque and Mondo from its partner Sonangol EP and simultaneously completed the sale of all its shares in the parent company of the Paenal shipyard in Angola to a subsidiary of Sonangol EP for a total consideration paid net of cash acquired of approximately US$40 million, which is reported as investing activity within the Directional cash flow statement.
With regards to the 13.5% divestment to CMFL, completed in October 2024, the cash proceeds from the transaction net of cash transferred are reported in investing activity within the Directional cash flow statement for an amount of US$45 million.
As a result, Directional cash and cash equivalents increased from US$563 million at year-end 2023 to US$606 million at year-end 2024.