4.3.29Investment in Associates and Joint Ventures
The Company has several joint ventures and associates:
Entity name | Partners | Joint venture/ | % of ownership | Country registration | 2022 main reporting segment | Project name |
|---|---|---|---|---|---|---|
Sonasing Xikomba Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P.; Angola Offshore Services Limitada | Joint venture | 50.00 | Bermuda | Lease & Operate | FPSO N'Goma |
OPS-Serviços de Produção de Petróleos Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P. | Joint venture | 50.00 | Bermuda | Lease & Operate | Angola operations |
OPS-Serviços de Produção de Petróleos Ltd. Branch | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P. | Joint venture | 50.00 | Angola | Lease & Operate | Angola operations |
Sonasing Sanha Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P.; Angola Offshore Services Limitada | Joint venture | 50.00 | Bermuda | Lease & Operate | FPSO Sanha |
Sonasing Kuito Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P.; Angola Offshore Services Limitada | Joint venture | 50.00 | Bermuda | Lease & Operate | FPSO Kuito |
Sonasing Mondo Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P. | Joint venture | 90.00 | Bermuda | Lease & Operate | FPSO Mondo |
Sonasing Saxi Batuque Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P.; | Joint venture | 90.00 | Bermuda | Lease & Operate | FPSO Saxi-Batuque |
OPS Production Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P. | Joint venture | 50.00 | Bermuda | Lease & Operate | Angola operations |
Anchor Storage Ltd. | Maersk group | Joint venture | 49.00 | Bermuda | Lease & Operate | Nkossa II FSO |
Gas Management (Congo) Ltd. | Maersk group | Joint venture | 49.00 | Bahamas | Lease & Operate | Nkossa II FSO |
Malaysia Deepwater Floating Terminal (Kikeh) Ltd. | Malaysia International Shipping Corporation Behard | Joint venture | 49.00 | Malaysia | Lease & Operate | FPSO Kikeh |
Malaysia Deepwater Production Contractors Sdn Bhd | Malaysia International Shipping Corporation Behard | Joint venture | 49.00 | Malaysia | Lease & Operate | FPSO Kikeh |
Floventis Energy Limited | CIERCO LTD. | Joint venture | 70.00 | United Kingdom | Turnkey | Cierco |
Llŷr Floating Wind Limited | CIERCO LTD. | Joint venture | 70.00 | Scotland | Turnkey | Cierco |
CADEMO Corporation | CIERCO LTD. | Joint venture | 70.00 | United states of America | Turnkey | Cierco |
Normand Installer S.A. | The Solstad group | Joint venture | 49.90 | Switzerland | Turnkey | Normand Installer |
SBM Ship Yard Ltd. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P.; Daewoo Shipbuilding & Marine Engineering Co. Ltd. | Associate | 33.33 | Bermuda | Turnkey | Angolan yard |
PAENAL - Porto Amboim Estaleiros Navais Ltda. | Sociedad Nacional de Combustiveis de Angola Empresa Publica -Sonangol E.P.; SBM Shipyard | Associate | 30.00 | Angola | Turnkey | Angolan yard |
The Company has no joint operation as per definition provided by IFRS 11 ‘Joint arrangements’.
The movements in investments in associates and joint ventures are as follows:
Note | 2022 | 2021 | |
|---|---|---|---|
Investments in associates and joint ventures at 1 January | 361 | 282 | |
Share of profit of equity-accounted investees | 12 | 110 | |
Dividends | (92) | (43) | |
Cash flow hedges | 9 | 6 | |
Capital increase/(decrease) | - | 6 | |
Foreign currency variations | 1 | 0 | |
Share in negative net equity reclassification to loans to joint ventures and associates | (1) | - | |
Investments in associates and joint ventures at 31 December | 290 | 361 |
Share of profit in equity-accounted investees
As at 5 August 2022, due to the approval from Bermuda Monetary Authority, the Company increased its shareholding in the investees for FPSO Saxi Batuque and FPSO Mondo. The Company now owns 90% (previously 50%) of the issued shares of the investees. Although this shareholding represents a significant portion of the issued shares, the transaction did not impact the assessment of joint control, therefore the investees shall continue to be recognized as an equity-accounted investee and the impact on the consolidated financial statement has been assessed as not significant.
Outstanding purchase and termination options in finance lease contracts − Joint ventures and associates
The finance lease contracts of FPSO N’Goma, FPSO Saxi Batuque and FPSO Mondo, where the Company is the lessor, include call options for the client to purchase the underlying asset or to terminate the contract early.
The exercise of the purchase option on FPSOs N’Goma, Saxi Batuque and Mondo as per December 31, 2022 would have resulted in a gain or a near breakeven result for the Company. The exercise of the option to terminate the contract early, in which case the Company retains ownership of the vessel, would result in a near break-even result.
The following tables present the figures at 100%.
Information on significant joint arrangements and associates - 2022
Project name | Place of the business | Total assets | Non-current assets | Cash | Loans | Non- current liabilities | Current liabilities | Dividends paid | Revenue |
|---|---|---|---|---|---|---|---|---|---|
FPSO N'Goma | Angola | 722 | 448 | 102 | 259 | 227 | 88 | 155 | 55 |
Angola operations | Angola | 178 | 4 | 10 | 28 | 7 | 172 | - | 236 |
FPSO Kikeh | Malaysia | 189 | 117 | 6 | - | 5 | 36 | 30 | 74 |
Angolan yard | Angola | 57 | (0) | 48 | 556 | 556 | 34 | (0) | 1 |
Non material joint ventures/associates | 70 | 49 | 12 | 101 | 67 | 42 | - | 0 | |
Total at 100% | 1,217 | 618 | 178 | 944 | 862 | 372 | 184 | 367 |
Information on significant joint arrangements and associates - 2021
Project name | Place of the business | Total assets | Non-current assets | Cash | Loans | Non- current liabilities | Current liabilities | Dividends paid | Revenue |
|---|---|---|---|---|---|---|---|---|---|
FPSO N'Goma | Angola | 909 | 570 | 182 | 325 | 307 | 83 | - | 64 |
Angola operations | Angola | 127 | 4 | 14 | 28 | 28 | 104 | - | 179 |
FPSO Kikeh | Malaysia | 208 | 144 | 7 | - | 5 | 32 | 88 | 212 |
Angolan yard | Angola | 74 | 0 | 53 | 539 | 539 | 38 | - | 4 |
Non material joint ventures/associates | 92 | 75 | 7 | 168 | 163 | 8 | - | 1 | |
Total at 100% | 1,410 | 794 | 263 | 1,059 | 1,041 | 265 | 88 | 460 |
The bank interest-bearing loans and other borrowings held by joint ventures and associates are as follows:
Information on loans and borrowings of joint ventures and associates
Net book value at 31 December 2022 | Net book value at 31 December 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Entity name | % Ownership | % Interest | Maturity | Non-current | Current | Total | Non-current | Current | Total |
US$ Project Finance facilities drawn: | |||||||||
Sonasing Xikomba Ltd | 50.00 | 4.00% | 15-05-2026 | 190 | 69 | 259 | 259 | 65 | 325 |
Normand Installer SA | 49.90 | Libor + 2.1% | 15-02-2023 | - | 22 | 22 | 22 | 5 | 27 |
Loans from subsidiaries of | 293 | 7 | 300 | 358 | - | 358 | |||
Loans from other shareholders of the joint ventures and associates | 341 | 6 | 346 | 333 | - | 333 | |||
Loans from other joint ventures2 | 255 | - | 255 | 245 | - | 245 | |||
Net book value of loans and borrowings | 1,079 | 103 | 1,182 | 1,217 | 70 | 1,288 | |||
- 1 Please refer to note 4.3.16 'Loans to joint-ventures and associates' for presentation of the carrying amount of these loans in the Company's Consolidated Statement of financial position.
- 2 Mainly loans from the joint ventures SBM Shipyard Ltd to the JV PAENAL - Porto Amboim Estaleiros Navais Ltda.
Aggregated information on joint ventures and associates
2022 | 2021 | ||
|---|---|---|---|
Net result at 100% | (18) | 187 |
Reconciliation equity at 100 % with investment in associates and joint ventures
2022 | 2021 | ||
|---|---|---|---|
Equity at 100% | (18) | 104 | |
Partner ownership | 141 | 88 | |
Share in negative net equity reclassification to loans to joint ventures and associates | 166 | 168 | |
Investments in associates and joint ventures | 290 | 361 |