Cash Flow / Liquidities − Directional
Cash and undrawn committed credit facilities amount to US$2,984 million at December 31, 2021, of which US$1,069 million is considered as pledged to specific project debts servicing related to Liza Unity (FPSO), Prosperity (FPSO) and FPSO Sepetiba or otherwise restricted in its utilization.
The consolidated cash flow statement under Directional reporting is as follows:
|
in millions of US$ |
2021 |
2020 |
|
|---|---|---|---|
|
EBITDA |
849 |
1,021 |
|
|
Adjustments for non-cash and investing items |
|||
|
Addition/(release) provision |
14 |
25 |
|
|
(Gain)/loss on disposal of property, plant and equipment |
(1) |
1 |
|
|
(Gain) / loss on acquisition of shares in investees |
0 |
(1) |
|
|
Share-based payments |
27 |
26 |
|
|
Changes in operating assets and liabilities |
|||
|
(Increase)/Decrease in operating receivables |
17 |
(227) |
|
|
Movement in construction work-in-progress / contract liability |
(42) |
24 |
|
|
(Increase)/Decrease in inventories |
(1) |
(134) |
|
|
Increase/(Decrease) in operating liabilities |
(82) |
11 |
|
|
Income taxes paid |
(66) |
(51) |
|
|
Net cash flows from (used in) operating activities |
715 |
696 |
|
|
Capital expenditures |
(1,483) |
(871) |
|
|
(Addition) / repayments of funding loans |
(6) |
3 |
|
|
Cash receipts from sale of investments in joint ventures |
53 |
28 |
|
|
Other investing activities |
20 |
4 |
|
|
Net cash flows from (used in) investing activities |
(1,415) |
(837) |
|
|
Additions and repayments of borrowings and lease liabilities |
1,945 |
534 |
|
|
Dividends paid to shareholders |
(165) |
(150) |
|
|
Share repurchase program |
(178) |
(165) |
|
|
Interest paid |
(224) |
(155) |
|
|
Net cash flows from (used in) financing activities |
1,377 |
62 |
|
|
Foreign currency variations |
(2) |
5 |
|
|
Net increase/(decrease) in cash and cash equivalents |
676 |
(74) |
Significant cash has been generated in 2021. The (i) strong operating cash flows, (ii) drawdowns on project financings and bridge loans and (iii) net proceed from the issuance of the senior secure notes on FPSO Cidade de Ilhabela were partially used to:
- Invest in the five FPSOs under construction and the limited scope for the FPSO for the Yellowtail development project;
- Return funds to the shareholders through dividends and the share repurchase program; and
- Service the Company’s non-recourse debt and interest in accordance with the respective repayment schedules.
The fact that the bridge loans related to FPSO Almirante Tamandaré and FPSO Alexandre de Gusmão were drawn in full during the last quarter of 2021 for a total amount of US$1,255 million generated a significant excess of financing cash flow compared with actual investments to date on these two units (approximately US$800 million as of December 31, 2021). As a result, cash and cash equivalents increased from US$383 million at year-end 2020 to US$1,059 million at year-end 2021.