Property, Plant and Equipment owned by the Company
The movement of the Property, plant and equipment during the year 2021 is summarized as follows:
2021
|
Land and buildings |
Vessels and floating equipment |
Other fixed assets |
Assets under construction |
Total |
|
|---|---|---|---|---|---|
|
Cost |
67 |
2,751 |
93 |
11 |
2,922 |
|
Accumulated depreciation and impairment |
(35) |
(2,335) |
(61) |
(0) |
(2,431) |
|
Book value at 1 January |
32 |
416 |
32 |
11 |
490 |
|
Additions |
0 |
0 |
4 |
(0) |
4 |
|
Disposals |
0 |
(23)1 |
0 |
0 |
(23) |
|
Depreciation |
(6) |
(74) |
(11) |
- |
(91) |
|
Impairment |
- |
(0) |
- |
0 |
0 |
|
Foreign currency variations |
(2) |
(0) |
(2) |
0 |
(3) |
|
Other movements |
1 |
(23)2 |
4 |
(6) |
(24) |
|
Total movements |
(6) |
(121) |
(4) |
(6) |
(138) |
|
Cost |
63 |
1,741 |
83 |
4 |
1,891 |
|
Accumulated depreciation and impairment |
(38) |
(1,446) |
(55) |
- |
(1,540) |
|
Book value at 31 December |
25 |
295 |
28 |
4 |
351 |
- 1 Disposals mainly relate to the sale of the Gene vessel
- 2 Other movements mainly relate to the reclassification of the DSCV Installer as Asset Held For Sale
2020
|
Land and buildings |
Vessels and floating equipment |
Other fixed assets |
Assets under construction |
Total |
|
|---|---|---|---|---|---|
|
Cost |
57 |
3,299 |
82 |
22 |
3,460 |
|
Accumulated depreciation and impairment |
(28) |
(2,490) |
(52) |
- |
(2,570) |
|
Book value at 1 January |
29 |
809 |
30 |
22 |
890 |
|
Additions |
4 |
35 |
10 |
(3) |
46 |
|
Disposals |
- |
(126)1 |
(0) |
- |
(126) |
|
Depreciation |
(5) |
(279) |
(10) |
- |
(294) |
|
Impairment |
- |
(24) |
- |
(0) |
(24) |
|
Foreign currency variations |
2 |
- |
1 |
0 |
3 |
|
Other movements |
1 |
- |
2 |
(8) |
(5) |
|
Total movements |
2 |
(394) |
3 |
(11) |
(400) |
|
Cost |
67 |
2,751 |
93 |
11 |
2,921 |
|
Accumulated depreciation and impairment |
(35) |
(2,335) |
(61) |
(0) |
(2,431) |
|
Book value at 31 December |
32 |
416 |
32 |
11 |
490 |
- 1 The net disposal amount for FPSO Espirito Santo of US$126 million consists of historical cost of US$584 million less accumulated depreciation of US$458 million.
During the 2021 period, the following main events occurred regarding owned property, plant and equipment:
- US$91 million of annual depreciation charges, following the normal depreciation schedule;
- A decrease in net book value in Vessels and floating equipment of US$23 million due to the disposal of the Gene vessel;
- A reclassification of US$25 million due to the recognition of DSCV SBM Installer as asset held for sale. As announced on August 21, 2020, the Company had the intention to sell DSCV SBM Installer. Following this announcement, the Company successfully signed a memorandum of understanding with a suitable buyer on November 12, 2021. As agreed upon with the buyer the vessel had to undergo maintenance prior to the handover, which occurred in January 2022. The Company sold the vessel for US$34 million (net of costs to sell) and related gain on sale of US$8 million shall be recognized in 2022.
Property, plant and equipment at year-end comprises of:
- Two (2020: two) integrated floating production, storage and offloading systems (FPSOs) (namely FPSO Capixaba and FPSO Cidade de Anchieta) each consisting of a converted tanker, a processing plant and one mooring system. These two FPSOs are leased to third parties under an operating lease contract;
- One semi-submersible production platform, the Thunder Hawk (2020: one), leased to third parties under an operating lease contract;
The depreciation charge for the semi-submersible production facility Thunder Hawk is calculated based on its future anticipated economic benefits, resulting in a depreciation plan based on the unit of production method. All other property, plant and equipment is depreciated on a straight-line basis.
Company-owned property, plant and equipment with a carrying amount of US$253 million (2020: US$282 million) has been pledged as security for liabilities, mainly for external financing.
No interest has been capitalized during the financial year as part of the additions to property, plant and equipment (2020: nil).