Borrowings
The movement in interest bearing borrowings is as follows:
2024 | 2023 | ||
|---|---|---|---|
Non-current portion | 8,112 | 6,839 | |
Add: current portion | 1,093 | 1,678 | |
Remaining principal at 1 January | 9,206 | 8,517 | |
Additions | 2,438 | 3,943 | |
Redemptions | (2,988) | (2,999) | |
Transaction and amortized costs | 38 | (255) | |
Other movements | 155 | 0 | |
Total movements | (356) | 688 | |
Remaining principal at 31 December | 8,850 | 9,206 | |
Less: Current portion | (1,218) | (1,093) | |
Non-current portion | 7,632 | 8,112 | |
Transaction and amortized costs | 434 | 472 | |
Remaining principal at 31 December (excluding transaction and amortized costs) | 9,284 | 9,677 | |
Less: Current portion | (1,277) | (1,142) | |
Non-current portion | 8,007 | 8,535 |
The additions in borrowings of US$2,438 million relate mainly to drawdowns on (i) project finance facilities for FPSO ONE GUYANA, FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão, (ii) the new construction financing for FPSO Jaguar completed in November 2024, and (iii) drawdowns on the Company’s SCF and the short-term corporate FPSO construction facility.
Other movements are related to the recognition of the FPSO N'Goma project loan, following the increased ownership of the Company into Sonasing Xikomba Limited following completion of the Share Purchase Agreements with Sonangol as part of the Sonangol transaction.
As announced on November 21, 2024, the Company has secured the construction financing of FPSO Jaguar for a total of US$1.5 billion. As of December 31, 2024, the Company has drawdown US$480 million from the construction financing.
The redemptions are mostly related to (i) the full repayment of the FPSO Prosperity loan of US$979 million and the FPSO Liza Destiny loan of US$405 million, following the sale of the units to the client, (ii) the full repayment of US$250 million short-term corporate FPSO construction facility, (iii) repayments on the Company’s SCF, (iv) partial repayment of the Revolving Credit Facility for MPF hull financing, and (v) the non-recourse debt repayment schedules.
For further disclosures about fair value measurement, the Company refers to note 4.3.27 Financial Instruments − Fair Values and Risk Management.
The Company has no ’off-balance sheet’ financing through special purpose entities. All long-term debt is included in the consolidated statement of financial position.
The borrowings, excluding the amount of transaction and amortized costs, have the following forecast repayment schedule:
31 December 2024 | 31 December 2023 | ||
|---|---|---|---|
Within one year | 1,277 | 1,142 | |
Between 1 and 2 years | 754 | 1,877 | |
Between 2 and 5 years | 3,744 | 3,237 | |
More than 5 years | 3,509 | 3,421 | |
Balance at 31 December | 9,284 | 9,677 |
The borrowings by entity are as follows:
Loans and borrowings per entity
Net book value at 31 December 2024 | Net book value at 31 December 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Entity name | Project name or nature of loan | % Ownership | % Interest1 | Maturity | Non-current | Current | Total | Non-current | Current | Total |
Project Finance facilities drawn | ||||||||||
SBM Baleia Azul Sarl | FPSO Cidade de Anchieta | 100.00 | 5.50% | 15-Sep-27 | 78 | 44 | 122 | 122 | 41 | 163 |
Alfa Lula Alto Sarl | FPSO Cidade de Marica | 61.00 | 5.60% | 17-Dec-29 | 409 | 135 | 544 | 544 | 128 | 672 |
Beta Lula Central Sarl | FPSO Cidade de Saquarema | 61.00 | 4.20% | 15-Jun-30 | 598 | 114 | 712 | 712 | 108 | 820 |
Sonasing Xikomba Limited | FPSO N’GOMA | 60.002 | 4.05% | 15-May-26 | 40 | 77 | 117 | - | - | - |
Guyana Deep Water UK Limited | FPSO Liza Destiny | 100.00 | SOFR + 1.91% | 18-Dec-29 | - | - | - | 405 | 70 | 474 |
Guyana Deep Water III UK Limited | FPSO Prosperity | 100.00 | SOFR + 1.86% | 29-Aug-25 | - | - | - | 951 | 87 | 1,038 |
Mero 2 Owning B.V. | FPSO Sepetiba | 51.00 | 4.20% | 15-Mar-38 | 1,251 | 90 | 1,341 | 1,370 | 56 | 1,425 |
Senior secured notes | ||||||||||
Guara Norte Sarl | FPSO Cidade de Ilhabela | 75.00 | 5.20% | 15-Jun-34 | 620 | 52 | 672 | 672 | 48 | 720 |
Guaranteed project finance facilities drawn | ||||||||||
Tamandare Owning B.V. | FPSO Almirante Tamandaré | 55.00 | 5.70% | 15-Dec-38 | 1,407 | 90 | 1,497 | 920 | (10) | 911 |
Guyana Deep Water IV UK Limited | FPSO ONE GUYANA | 100.00 | 5.10% | 31-jul-27 | 1,473 | 0 | 1,473 | 1,077 | (4) | 1,073 |
Mero 4 Owning B.V. | FPSO Alexandre de Gusmão | 55.00 | 6.20% | 15-May-39 | 1,210 | 5 | 1,215 | 1,022 | (5) | 1,017 |
SBM SWISS WT SA | FPSO Jaguar | 100.00 | SOFR + 2.50% | 30-Apr-27 | 461 | (3) | 458 | - | - | - |
Revolving credit facility | ||||||||||
SBM Holding Inc | Corporate Facility | 100.00 | Variable | 13-Feb-26 | (0) | 500 | 500 | - | 550 | 550 |
SBM Holding Inc | Fast4Ward® hull financing | 100.00 | SOFR + 2.1% | 20-Jun-25 | (0) | 89 | 89 | 209 | (1) | 208 |
Other | ||||||||||
Guara Norte Swiss Holding SA | FPSO Cidade de Ilhabela | 100.00 | 7.90% | 31-Dec-27 | 50 | 25 | 75 | 75 | 25 | 100 |
Brazilian Deepwater Production B.V. | FPSO Espirito Santo | 51.00 | SOFR + 1.05% | 31-Jan-29 | 27 | - | 27 | 25 | - | 25 |
Brazilian Deepwater Production Contractors Ltd. | FPSO Espirito Santo | 51.00 | 3.00% | 31-Dec-28 | 9 | - | 9 | 8 | - | 8 |
Other | 100.00 | 0 | - | 0 | 0 | - | 0 | |||
Net book value of loans and borrowings | 7,632 | 1,218 | 8,850 | 8,112 | 1,093 | 9,206 | ||||
- 1 % interest per annum on the remaining loan balance.
- 2 Refer to note 4.3.30 Business combinations.
For the project finance facilities, the respective vessels are mortgaged to the banks or to note holders.
The Company has available facilities resulting from the undrawn portions of (i) the Company‘s RCF and the Revolving Credit Facility for MPF hull financing, (ii) FPSO ONE GUYANA, FPSO Alexandre de Gusmão and FPSO Jaguar project facilities, and (iii) short-term uncommitted credit lines and SCF.
Expiry date of the undrawn facilities and unused credit lines
2024 | 2023 | ||
|---|---|---|---|
Expiring within one year | 892 | 274 | |
Expiring beyond one year | 1,520 | 2,174 | |
Total | 2,412 | 2,448 |