4.3.19Trade and Other Receivables

Trade and other receivables (summary)

The increase in ’Trade debtors’ of US$109 million is mainly due to the result of the acquisition of lease and operating entities related to FPSOs N’Goma, Saxi Batuque and Mondo (refer to note 4.3.30 Business Combinations for further details). Additionally, the ramp-up of the Turnkey activities, especially for the newly awarded GranMorgu FPSO, also contributed for the increase.

The increase in ’Other accrued income’ is mainly due to the acquisition of lease and operating entities related to FPSOs N’Goma, Saxi Batuque and Mondo and the growth support to the fleet through brownfield projects.

The increase in prepayments of US$185 million is mainly related to advance payments to yards related to FPSO Jaguar and to the multi-purpose floater (MPF) hull that has not yet been allocated to a project.

The decrease in accrued income in respect of delivered orders is due to the completion of FPSO Prosperity at the end of 2023.

The increase in ’Other receivables’ mainly relates to the full and final settlement agreement signed during the last quarter 2024 with the Company‘s insurers on FPSO Cidade de Anchieta and the inclusion of a financial asset for the consideration to be paid by AOSL in the amount of US$43 million for 20% of the Company's shareholding in the FPSO N’Goma, dependent on completion of the conditions precedent of the share purchase agreement.

The carrying amounts of the Company’s trade debtors are distributed in the following countries:

Trade debtors (countries where Company’s trade debtors are distributed)

The trade debtors‘ balance is the nominal value less an allowance for estimated impairment losses as follows:

Trade debtors (trade debtors balance)

The allowance for impairment represents the Company’s estimate of losses in respect of trade debtors. The allowance related to credit risk for significant trade debtors is built on specific expected loss components that relate to individual exposures. Furthermore, the Company uses historical credit loss experience as well as forward-looking information to determine a 1% expected credit loss rate on individually insignificant trade receivable balances. The creation and release for impaired trade debtors due to credit risk are reported in the line ’Net impairment losses on financial and contract assets’ of the consolidated income statement. Amounts charged to the allowance account are generally written off when there is no expectation of recovery.

The ageing of the nominal amounts of the trade debtors are:

Trade debtors (aging of the nominal amounts of the trade debtors)

Not past due are those receivables for which either the contractual or ’normal’ payment date has not yet elapsed. Past due are those amounts for which either the contractual or the ’normal’ payment date has passed. Amounts that are past due but not impaired relate to a number of Company joint ventures and independent customers for whom there is no recent history of default, or the receivable amount can be offset by amounts included in current liabilities.

For the closing balance and movements during the year of allowances on trade receivables, please refer to note 4.3.27 Financial Instruments − Fair Values and Risk Management.