Profitability

Revenue

Total revenue decreased by 4% to US$4,784 million compared with US$4,963 million in 2023. This decrease was mainly driven by the Turnkey segment despite the positive impact of the Lease and Operate segment.

Turnkey revenue decreased by 20% to US$2,710 million, compared with US$3,400 million in the year-ago period, mainly explained by (i) the completion of FPSO Prosperity during the last quarter of 2023 and FPSO Sepetiba early January 2024, and (ii) a reduced level of progress during the period compared with the year-ago period on FPSO Almirante Tamandaré, FPSO Alexandre de Gusmão and FPSO ONE GUYANA as those projects approached completion during the current year. This was partially offset by (iii) the progress on the awarded contracts for the FPSO Jaguar, GranMorgu FPSO and FSO Trion projects and (iv) the increased support to the fleet through brownfield projects.

Lease and Operate revenue increased by 33% to US$2,074 million, compared with US$1,563 million in the year-ago period. This reflects mainly the following events: (i) FPSO Prosperity and FPSO Sepetiba joining the fleet upon successful delivery during the last quarter of 2023 and early January 2024 respectively, (ii) full consolidation of the lease and operating entities related to FPSOs N’Goma, Saxi Batuque and Mondo following the acquisition of additional shares (’Sonangol transaction’), and (iii) an increase in reimbursable scope on the fleet partially offset by (iv) reduced revenue from FPSO Liza Unity only contributing in 2024 as an operating contract following the purchase of the unit by the client at the end of 2023 (therefore not contributing to lease revenue in 2024) and (v) regular declining profile of interest revenue from finance leases.

EBITDA

EBITDA based on IFRS accounting policies amounted to US$1,041 million, representing a 16% decrease compared with US$1,239 million in the year-ago period. This variance is further detailed as follows by segment:

• Turnkey EBITDA decreased to US$287 million in the current year, compared with US$646 million in the year-ago period, as a result of (i) the completion of FPSO Prosperity during last quarter of 2023 and of FPSO Sepetiba early January 2024, (ii) a reduced level of progress during the period compared with the year-ago on FPSO Almirante Tamandaré, FPSO Alexandre de Gusmão and FPSO ONE GUYANA as those projects approached completion during the current year. This was partially offset by (iii) the increased support to the fleet through brownfield projects, (iv) an improved performance on some projects in the portfolio affected in prior years by the historical consequences of the pandemic and subsequent pressure on the global supply chain and (v) a reduced investment on Floating Offshore Wind projects following the implementation of the Ekwil Joint Venture in partnership with Technip Energies. Finally, it should be noted that with respect to the awarded contracts for the GranMorgu FPSO and FSO Trion projects which contributed to the revenue during the period, no contribution to EBITDA was recognized as those projects had not reached the requisite ’stage of completion’ to allow margin to be recognized at the end of the current period. With regards to FPSO Jaguar, the contribution to EBITDA is limited over the period as the project just reached the requisite ’stage of completion’ during the last quarter of 2024.
• Lease and Operate EBITDA for the current period increased by 21% to US$842 million versus US$695 million in the year-ago period. This increase resulted from (i) the same drivers as for the Lease and Operate revenue, and (ii) the net gain arising from the acquisition of interests held by Sonangol related to FPSOs N’Goma, Saxi Batuque and Mondo and the divestment in the parent company of the Paenal shipyard in Angola recognized in Other Operating Income, both impacting the Lease and Operate segment due their strategic and commercial link for a total amount of US$32 million partially offset by (iii) additional non-recurring maintenance costs for the fleet under operation.

The other non-allocated costs charged to EBITDA amounted to US$(88) million in 2024, a US$(13) million decrease compared with the US$(101) million in the year-ago period, which is mainly explained by the one-off impact of US$11 million restructuring costs following the implementation of an optimization plan related to the Company’s support functions’ activities in the year-ago period.

EBITDA is reconciled to the consolidated income statement as follows:

Net income

Depreciation, amortization and impairment increased by US$19 million compared with the year-ago period, mostly explained by the US$39 million FPSO Cidade de Anchieta impairment (refer to note 4.3.13 Property Plant and equipment), partially offset by the impairment of a funding loan provided to some equity-accounted entities, which was recognized a year ago.

Net financing costs totaled US$(663) million, compared with US$(575) million in the year-ago period. This increase of 15% compared with prior year is mainly explained by (i) increased project financing to fund continued investment in growth on FPSO Almirante Tamandaré, FPSO Alexandre de Gusmão and FPSO ONE GUYANA, and (ii) additional interest expense generated by the construction financing of FPSO Jaguar, partially offset by (iii) lower interest expense on FPSOs Liza Unity, Prosperity and Liza Destiny following the purchase of the units by the client and the full repayment of the project loans in November 2023, November 2024 and December 2024 respectively, and (iv) the scheduled amortization of project loans for the fleet under operations.

The effective tax rate over 2024 increased to 27%, compared with (4)% in the year-ago period. The increase is primarily driven by the initial recognition of a deferred tax asset on a tax goodwill in Switzerland in prior year.

As a result, the consolidated net income attributable to shareholders stood at US$150 million, a decrease of US$(341) million compared with the prior year.