Operating Leases as a Lessor

The category ’Vessels and floating equipment’ mainly relates to facilities leased to third parties under various operating lease agreements which terminate between 2022 and 2030. Leased facilities included in the ’Vessels and floating equipment’ amount to:

Leased facilities included in the vessels and floating equipment

In December 2020, the Company entered into a new contract with the client on the FPSO Espirito Santo and agreed new terms and conditions including the extension of the contract from the year 2023 to 2028 and additional annual extension options up to 2033. As a result, this new contract has been classified as a finance lease as per IFRS 16 instead of an operating lease. Further, The Deep Panuke MOPU, located offshore Nova Scotia, Canada, was safely redelivered by the client to the Company in July 2020. As such, the Deep Panuke MOPU is not a leased facility anymore as of December 31, 2020. As a result, the book value of the leased facilities included in the vessels and floating equipment has decreased by US$410 million.

The nominal values of the future expected bareboat receipts (undiscounted lease payments) in respect of the remaining operating lease contracts are:

Nominal values of the future expected bareboat receipts

A number of agreements have extension options, which have not been included in the above table.

Purchase and termination options in operating lease contracts

The operating lease contract of semi-submersible Thunder Hawk includes a call option for the client to purchase the underlying asset. The exercise of this call option would have resulted in a gain for the Company as of December 31, 2020.