4.3.5Expenses by Nature

The table below sets out expenses by nature for all items included in EBIT for the years 2022 and 2021:




Expenses on construction contracts



Employee benefit expenses




Vessels operating costs



Depreciation, amortization and impairment



Selling expenses



Other costs



Total expenses



In 2022 'Expenses on construction contracts' continued to increase as a result of the further ramp-up of activity on Turnkey projects as the Company has five FPSO’s under construction, which now includes the awarded FPSO ONE GUYANA.

'Employee benefit expenses' increased mainly due to the ramp-up of activity on Turnkey projects.

'Vessel operating costs' remained stable, mainly as a result of FPSO Liza Unity first oil at the beginning of 2022 and offset by the impact of FPSO Capixaba and SBM Installer leaving the fleet.

The increase of 'Depreciation, amortization and impairment' in comparison to 2021 mainly relates to the impairment of US$92 million of FPSO Cidade de Anchieta due to the additional costs required for tank repairs following the shutdown in 2022 (refer to note 4.3.13 Property, Plant and Equipment).

Expenses related to short-term leases and leases of low value assets amounted to US$1 million in 2022 (2021: US$4 million).

The increase during 2022 in 'Other costs' is mainly driven by the overall ramp-up of activities impact on consultancy and contractor fees, currency exchange differences and by uncertain tax position other than corporate income tax which were released during 2021.