Cash Flow / Liquidities − Directional
Directional cash and undrawn committed credit facilities amount to US$2,396 million at December 31, 2025, of which US$505 million is considered as pledged to specific project debt-servicing related to FPSO Jaguar, or otherwise restricted in its utilization.
The consolidated cash flow statement under Directional reporting is as follows:
in millions of US$ | 2025 | 2024 | |
|---|---|---|---|
Directional EBITDA | 1,709 | 1,896 | |
Adjustments for non-cash and investing items | |||
Directional Addition/(release) provision | 58 | 23 | |
Directional Effect of disposal of property, plant and equipment | (0) | 1,112 | |
Directional (Gain) / loss on disposal of equity-accounted investees | (31) | - | |
Directional (Gain) / loss on acquisition of shares in investees | (54) | (74) | |
Directional Share-based payments | 23 | 21 | |
Changes in operating assets and liabilities | |||
Directional (Increase)/Decrease in operating receivables | 5 | (1,181) | |
Directional Movement in contract assets | (279) | 124 | |
Directional (Increase)/Decrease in inventories | (300) | (26) | |
Directional Increase/(Decrease) in operating liabilities | 174 | 773 | |
Directional Income taxes paid | (139) | (178) | |
Directional Net cash flows from (used in) operating activities | 1,166 | 2,492 | |
Directional Capital expenditures | (487) | (937) | |
Directional (Addition) / repayments of funding loans | (0) | (4) | |
Directional Cash flows from changes in interests of subsidiaries | (28) | 1 | |
Directional Cash receipts from sale of investments in joint ventures | 42 | 57 | |
Directional Other investing activities | 195 | 27 | |
Directional Net cash flows from (used in) investing activities | (278) | (858) | |
Directional Additions and repayments of borrowings and lease liabilities | (7) | (969) | |
Directional Dividends paid to shareholders | (173) | (154) | |
Directional Share repurchase program | (174) | (102) | |
Directional Interest paid | (276) | (327) | |
Directional Net cash flows from (used in) financing activities | (630) | (1,552) | |
Directional Foreign currency variations | (10) | (3) | |
Directional Net increase/(decrease) in cash and cash equivalents | 248 | 79 |
The Company generated strong Directional operating cash flows mainly as a result of the cash flow from the expanded fleet under operations and the positive turnkey cash flows benefiting from client's milestone payments on FPSO projects under construction (mostly on Sale and Operate contracts).
Cash generated from Directional operating cash flows and drawdowns on project and construction financing, together with some of the Company’s existing cash, was primarily used to:
- Invest in the four Lease and Operate FPSOs/FSO under construction over the period and the Fast4Ward® new build multi-purpose hulls and related equipment for use in future projects;
- Full repayment of the US private placement notes in relation to the FPSO Cidade de Anchieta and the existing RCF;
- Return funds to shareholders through dividends and share repurchase programs; and
- Service the Company’s non-recourse debt and interest in accordance with the respective repayment schedules.
The Company completed the acquisition of the shares in the lease and operating entities related to FPSO Espirito Santo, the sale of all its shares in the parent company of FPSO Kikeh and the sale of all its shares in the lease and operating entities related to FPSO Aseng, which are all reported as investing activities within the Directional cash flow statement.
As a result, Directional cash and cash equivalents increased from US$642 million (including US$36 million classified as held for sale) at year-end 2024 to US$891 million at year-end 2025.