4.3.21Net Cash and Cash Equivalents

The increase of the cash and bank balances mainly relates to (i) net cash proceeds from the sale of FPSO Liza Destiny and FPSO Prosperity, (ii) operating cash flows from the fleet under operations and from Turnkey activities, (iii) company strategy on drawdowns on RCF and project and construction financing, (iv) cash proceeds from the 13.5% divestment to CMFL in Sepetiba entities, which together with (v) some of the Company‘s existing cash was partially used to (vi) invest in the five FPSOs under construction over the period and the Fast4Ward^® new build multi-purpose hulls, (vii) return funds to the shareholders through dividends and share repurchase programs and (viii) serve the Company’s non-recourse debt and interest in accordance with the respective repayment schedules.

The cash and cash equivalents dedicated to debt and interest payments (and therefore restricted) amounted to US$201 million as per December 31, 2024 (2023: US$193 million). Short-term investment deposits are made for varying periods of up to one year, usually less than three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

The cash and cash equivalents held in countries with restrictions on currency outflow (Angola, Brazil, China, Equatorial Guinea and Nigeria) amounted to US$56 million (December 31, 2023: US$26 million). These restrictions do not limit the liquidity of the cash balances.

Further disclosure about the fair value measurement is included in note 4.3.27 Financial Instruments − Fair Values and Risk Management.