4.3.29Investment in Associates and Joint Arrangements
The Company has several joint arrangements and associates:
Entity name | Partners | Joint venture/ | % of ownership | Country registration | 2024 main reporting segment | Project name |
|---|---|---|---|---|---|---|
Malaysia Deepwater Floating Terminal (Kikeh) Ltd. | Malaysia International Shipping Corporation Behard | Joint venture | 49.00 | Malaysia | Lease & Operate | FPSO Kikeh |
Malaysia Deepwater Production Contractors Sdn Bhd | Malaysia International Shipping Corporation Behard | Joint venture | 49.00 | Malaysia | Lease & Operate | FPSO Kikeh |
Normand Installer S.A. | The Solstad group | Joint venture | 49.90 | Switzerland | Turnkey | Normand Installer |
Ocean-Power AS | Agri AS; CapeOmega; Knatten I AS among others | Associate | 7.69 | Norway | Turnkey | Ocean Power |
Ekwil S.A.S | Technip Energies | Joint venture | 50.00 | France | Turnkey | Ekwil |
STS VOF | Technip Energies | Joint operation | 52.00 | Netherlands | Turnkey | GranMorgu FPSO |
STS 58 B.V. | Technip Energies | Joint operation | 52.00 | Netherlands | Turnkey | GranMorgu FPSO |
The movements in investments in associates and joint ventures are as follows:
Note | 2024 | 2023 | |
|---|---|---|---|
Investments in associates and joint ventures at 1 January | 288 | 290 | |
Share of profit of equity-accounted investees | 19 | 19 | |
Dividends | - | (17) | |
Cash flow hedges | (0) | (2) | |
Capital increase/(decrease) | (225) | (0) | |
Foreign currency variations | 0 | (0) | |
Reclassification to assets held for sale | (60) | - | |
Other | (1) | - | |
Investments in associates and joint ventures at 31 December | 21 | 288 |
In 2024, the consolidated statement of comprehensive income included US$31 million of other comprehensive income from equity-accounted investees, mostly arising from adjustments following the reclassification of investees FPSOs N’Goma, Saxi Batuque and Mondo as subsidiaries and the disposal of Paenal (2023: US$(4) million).
Share Purchase Agreements signed with Sonangol entities
As announced on June 11, 2024, conditions precedent were completed for the two Share Purchase Agreements signed by the Company and its partner Sonangol EP in July 2023. for (i) the acquisition of Sonangol‘s equity shares in the lease and operating entities related to FPSOs N’Goma, Saxi Batuque and Mondo; and (ii) the full divestment to a Sonangol subsidiary of the Company’s equity shares in the parent company of the Angolan based Paenal Yard. On the same date, the interests in which were classified as joint ventures (N’Goma, Saxi Batuque and Mondo) and associates (Paenal) were derecognized. Further information on the transaction is included in note 4.3.30 Business combinations.
Classification as non-current assets held for sale
As announced on September 6, 2024, the Company and its partner MISC Berhad signed share purchase agreements for the full divestment to MISC Berhad of SBM Offshore’s effective equity interest in the lease and operating entities of the FPSO Kikeh in Malaysia. The transaction was completed on January 31, 2025 following the completion of conditions precedent. As of December 31, 2024, the investments in both entities, which were previously accounted for as joint ventures according to IFRS 11 and included in the Company’s Lease and Operate segment, are classified as non-current assets held for sale according to IFRS 5.
The following tables present the figures at 100%.
Information on significant joint ventures and associates – 2024
Project name | Place of the business | Total assets | Non-current assets | Cash | Loans | Non- current liabilities | Current liabilities | Dividends paid | Revenue |
|---|---|---|---|---|---|---|---|---|---|
Non material joint ventures/associates | 76 | 41 | 25 | 23 | 18 | 18 | - | 1 | |
Total at 100% | 76 | 41 | 25 | 23 | 18 | 18 | - | 1 |
Information on significant joint ventures and associates – 2023
Project name | Place of the business | Total assets | Non-current assets | Cash | Loans | Non- current liabilities | Current liabilities | Dividends paid | Revenue |
|---|---|---|---|---|---|---|---|---|---|
FPSO N'Goma | Angola | 668 | 302 | 211 | 190 | 152 | 85 | - | 39 |
Angola operations | Angola | 225 | 2 | 20 | 29 | 27 | 203 | - | 291 |
FPSO Kikeh | Malaysia | 153 | 89 | 4 | - | 10 | 28 | 35 | 71 |
Angolan yard | Angola | 52 | (0) | 43 | 588 | 588 | 28 | - | 9 |
Non material joint ventures/associates | 70 | 48 | 8 | 109 | 104 | 15 | - | 0 | |
Total at 100% | 1,167 | 441 | 286 | 917 | 880 | 359 | 35 | 410 |
The interest-bearing loans and other borrowings held by joint ventures and associates are as follows:
Information on loans and borrowings of joint ventures and associates
Net book value at 31 December 2024 | Net book value at 31 December 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Entity name | % Ownership | % Interest | Maturity | Non-current | Current | Total | Non-current | Current | Total |
US$ Project Finance facilities drawn: | |||||||||
Sonasing Xikomba Ltd1 | 50.00 | 4.10% | 15-05-2026 | - | - | - | 117 | 73 | 190 |
Normand Installer SA | 49.90 | 6.00% | 15-12-2026 | 5 | 6 | 11 | 11 | 6 | 16 |
Loans from subsidiaries of | 6 | - | 6 | 324 | - | 324 | |||
Loans from other shareholders of the joint ventures and associates | 6 | - | 6 | 368 | - | 368 | |||
Loans from other joint ventures | - | - | - | 266 | - | 2663 | |||
Net book value of loans and borrowings | 18 | 6 | 23 | 1,086 | 79 | 1,164 | |||
- 1 Please refer to note 4.3.30 ‘Business Combinations’
- 2 Please refer to note 4.3.16 'Loans to joint-ventures and associates' for presentation of the carrying amount of these loans in the Company's Consolidated Statement of financial position.
- 3 Mainly loans from the joint ventures SBM Shipyard Ltd to the JV PAENAL - Porto Amboim Estaleiros Navais Ltda.
Aggregated information on joint ventures and associates
2024 | 2023 | ||
|---|---|---|---|
Net result at 100% | 28 | 2 |
Reconciliation equity at 100 % with investment in associates and joint ventures
2024 | 2023 | ||
|---|---|---|---|
Equity at 100% | 41 | (72) | |
Partner ownership | (20) | 193 | |
Share in negative net equity reclassification to loans to joint ventures and associates | - | 166 | |
Investments in associates and joint ventures | 21 | 288 |