Lease Liabilities
The lease liabilities mostly relate to the leasing of office buildings as of December 31, 2020.
The movement in the lease liabilities is as follows:
|
2020 |
2019 |
||
|---|---|---|---|
|
Principal recognized at 1 January |
173 |
189 |
|
|
Additions |
12 |
14 |
|
|
Redemptions |
(28) |
(28) |
|
|
Foreign currency variations |
3 |
(1) |
|
|
Other |
(87) |
- |
|
|
Total movements |
(101) |
(16) |
|
|
Remaining principal at 31 December |
71 |
173 |
|
|
Of which |
|||
|
Current portion |
20 |
32 |
|
|
Non-current portion |
51 |
141 |
The Company was the long-term charterer of the diving support and construction vessel (DSCV) SBM Installer under a contract ending in 2026. The Company had 25% equity ownership in the entity holding the vessel, OS Installer Limited (OSI). The Company acquired the remaining 75% equity ownership in OSI on September 30, 2020. As a result, OSI has been fully consolidated as from such acquisition date and the existing lease liability related to the long-term charter was derecognized since the obligation became an intercompany liability eliminated in the group consolidated financial statements. The value of the lease liability at the acquisition date was US$87 million. Please refer to note 4.3.1 Financial Highlights.
Maturity of the lease liabilities is analyzed as follows:
|
31 December 2020 |
||
|---|---|---|
|
Within one year |
20 |
|
|
Between 1 and 2 years |
18 |
|
|
Between 2 and 5 years |
28 |
|
|
More than 5 years |
6 |
|
|
Balance at 31 December |
71 |
The total cash outflow for leases in 2020 was US$31 million, which includes redemptions of principal and interest payments.