4.3.25Trade and Other Payables

Trade and other payables (summary)

’Trade payables’ and ’Accruals on projects’ together decreased as a result of lower accrued expenses on ongoing projects and increased payments to suppliers. At the end of the year there were still four FPSOs under construction, two MPF hulls under construction and the awarded initial scope to begin FEED activities for the FPSO for the Whiptail development project.

The increase in ‘Accruals regarding delivered orders’ mainly relates to FPSO Prosperity's finalization project.

For ’Contract liability’ refer to note 4.3.3. Revenue where the movement in current and non-current contract liabilities is explained.

Payables related to ’Taxation and social security’ concerns uncertain tax positions related mainly to various taxes other than corporate income tax.

’Other non-trade payables’ include a prepayment of US$52 million relating to the future potential participation of partners to charter contracts, which was presented in ’Other non-current liabilities’ in 2022, and interest payable and the short-term portion of the outstanding payments related to the Leniency Agreement and the settlement with Brazilian Federal Prosecutor’s Office (Ministério Público Federal – ’MPF’). The long-term portion of the outstanding payments related to these agreements is presented in the line item ’Other non-current liabilities’ in the Company’s statement of financial position.

The line item ’Other non-current liabilities’ in the consolidated statement of financial position (refer to 4.2.3 Consolidated Statement of Financial Position) includes non-current contract liabilities of US$22 million as detailed in note 4.3.3 Revenue.

The contractual maturity of the trade payables is analyzed in the liquidity risk section in 4.3.27 Financial Instruments − Fair Values and Risk Management.

During 2023, the Company acquired an additional stake of 49%, through the exercise of a put option in SBM Nauvata Engineering Private Limited (SBM Nauvata), thereby increasing its ownership to 100%. The put option over the interests held by non-controlling shareholders was initially recognized in 2019, when the Company acquired control of SBM Nauvata, as a financial liability. In accordance with IFRS 10 Consolidated Financial Statements, the acquisition of an additional ownership interest in a subsidiary without a change of control is accounted for as an equity transaction, with any excess or deficit of consideration paid over the carrying amount of the non-controlling interests being recognized in equity. As of December 31, 2022, the ‘Trade and Other Payables’ included an amount of US$22.8 million related to the put option, which was derecognized following the exercise of the put option and the cash consideration of US$21 million paid to the non-controlling shareholders. The carrying value of the net assets of SBM Nauvata attributable to non-controlling interests was US$4.3 million, which has been reattributed to retained earnings.