4.3.25Deferred Income

Deferred income is as follows:

The deferred income on operating lease contracts was mainly related to the revenue FPSO Espirito Santo, which reflected a decreasing day-rate schedule. As revenue is shown in the income statement on a straight-line basis with reference to IFRS 16 ’Leases’, the difference between the yearly straight-line revenue and the contractual day rates was included as deferred income as of December 31, 2019.

The decrease in deferred income of US$150 million compared with prior year is entirely due to the sale of the FSPO Espirito Santo following the newly negotiated contract with the client in December 2020, which resulted in a finance lease accounting treatment instead of an operating lease. We refer to note 4.3.15 Finance Lease Receivables.