4.3.21Net Cash and Cash Equivalents

The increase of the cash and bank balances mainly relates to:

• Net operating cash flows from the fleet under operations and from Turnkey activities;
• Company strategy on drawdowns on the RCF and construction financing;
• The payment of the final settlement agreement with the Company‘s insurers relating to the repair of tanks in FPSO Cidade de Anchieta; and
• Full drawdown of the sale and leaseback financing agreement for FPSO Cidade de Paraty.

Which together with some of the Company’s existing cash were partially used to:

• Return funds to the shareholders and non-controlling interests through dividends and share repurchase programs;
• Fully repay US private placement notes in relation to FPSO Cidade de Anchieta; and
• Serve the Company’s non-recourse debt and interest in accordance with the respective repayment schedules.

The cash and cash equivalents dedicated to debt and interest payments (and therefore restricted) amounted to US$341 million as per December 31, 2025 (2024: US$201 million). Short-term investment deposits are made for varying periods of up to one year, usually less than three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

The cash and cash equivalents held in countries with restrictions on currency outflow (Angola, Brazil, China and Nigeria) amounted to US$23 million (December 31, 2024: US$56 million, which also included Equatorial Guinea). These restrictions do not limit the liquidity of the cash balances.

Further disclosure about the fair value measurement is included in note 4.3.27 Financial Instruments − Fair Values and Risk Management.