Statement of Financial Position
|
in millions of US$ |
2020 |
2019 |
2018 |
2017 |
2016 |
|---|---|---|---|---|---|
|
Total equity |
3,462 |
3,613 |
3,612 |
3,559 |
3,513 |
|
Net debt1 |
5,209 |
4,416 |
3,818 |
4,613 |
5,216 |
|
Net cash |
414 |
506 |
718 |
957 |
904 |
|
Total assets |
11,085 |
10,287 |
9,992 |
11,007 |
11,488 |
- 1 Net debt is calculated as total borrowings (including lease liabilities) less cash and cash equivalents.
Total equity decreased from US$3,613 million at December 31, 2019 to US$3,462 million with the positive result over the current year period being more than offset by:
- The completion of the EUR150 million (US$165 million) share repurchase program executed between February 13, 2020 and April 3, 2020;
- Dividends distributed to the shareholders and non-controlling interests (US$233 million); and
- A decrease of the hedging reserves (US$98 million). The movement in hedging reserve is mainly caused by the decrease of the marked-to-market value of the interest rate swaps due to declining market interest rates during the year. This was partially offset by the increase of the marked-to-market value of forward currency contracts, mainly driven by the depreciation of the US$ exchange rate versus the hedged currencies (especially EUR).
Net debt increased by US$793 million to US$5,209 million at year-end 2020. While the Lease and Operate segment continues to generate strong operating cash flow, the Company drew under the project loan facilities of Liza Destiny (FPSO) and Liza Unity (FPSO) as well as under the bridge loan secured for FPSO Sepetiba to fund continued investment in growth.
The majority of the Company’s debt as of December 31, 2020 consisted of non-recourse project financing (US$4 billion) in special purpose investees. The remainder (US$1.5 billion) comprised of borrowings to support the construction of Liza Unity (FPSO) and FPSO Sepetiba as well as the loan related to the DSCV SBM Installer. The Revolving Credit Facility (RCF) was undrawn at year-end and the net cash balance stood at US$414 million (December 31, 2019: US$506 million). Lease liabilities totaled US$71 million as of December 31, 2020.
Total assets increased to US$11.1 billion as of December 31, 2020, compared with US$10.3 billion at year-end 2019 with the investments in Liza Unity (FPSO), Prosperity (FPSO) and FPSO Sepetiba being partially offset by a reduction of the gross amount of the finance lease receivable in line with the repayment schedule as well as by regular depreciation and non recurring impairments of property, plant and equipment.
RETURN ON AVERAGE CAPITAL EMPLOYED
Return on average capital employed (ROACE) is a measure of the return generated on capital invested in the Company. The measure provides a guide for long-term value creation by the Company. ROACE is calculated as Underlying EBIT divided by the annual average of: i) total equity, ii) total borrowings and lease liabilities, iii) non-current provisions and iv) deferred tax liabilities minus the cash and cash equivalents.
2020 ROACE stood at 8.1%, which is in line with the past three-year average of 8.1%.
RETURN ON AVERAGE EQUITY
Return on average equity (ROAE) measures the performance of the Company based on the average equity attributable to the shareholders of the parent company. ROAE is calculated as Underlying profit attributable to shareholders divided by the annual average of equity attributable to shareholders of the parent company.
2020 ROAE stood at 10.5%, which is in line with the past three-year average of 10.0%.