4.3.27Trade and Other Payables

Trade and other payables (summary)

The total trade and other payables increased due to the higher construction activities during 2020.

Accruals on projects increased mainly relate to progress made on projects and MPF hulls not yet invoiced by construction yards.

Accruals regarding delivered orders decreased in 2020 compared to 2019 mainly in relation to the finalization of Liza Destiny (FPSO) following project completion in December 2019.

Increase of the contract liability is mainly due to the timing of invoicing in relation to Renewables EPC projects.

Current portion of deferred income is mainly related to the revenue of operating lease contracts which includes a decreasing day-rate schedule. As income 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 is included as deferred income. The deferral is released through the income statement over the remaining duration of the relevant operating lease contract. The decrease in deferred income of US$51 million as per December 31, 2020 compared to prior year is mainly due to the sale of the FPSO Espirito Santo. Please refer to note 4.3.15 Finance Lease Receivables.

Other non-trade payables include mostly interest payable and the short-term portion of the outstanding payments related to the Leniency Agreement. The long-term portion of the liability for outstanding payments related to the Leniency Agreement and the settlement with Brazilian Federal Prosecutor’s Office (Ministério Público Federal – ’MPF’) is presented in the line item ’Other non-current liabilities’ in the Company’s statement of financial position.

The contractual maturity of the trade payables is as follows:

Trade and other payables (contractual maturity of the trade payables)