Total Debt (Carrying Amount)
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The analyzed data reflects the company's debt structure over a five-year period, highlighting both current and non-current obligations as well as overall total debt levels.
- Current finance lease and other financing obligations
- This category shows a relatively stable trend from 2019 to 2021, maintaining values around 100 to 106 million US dollars. A decline is observed in 2022, dropping to 96 million, followed by a noticeable increase to 114 million in 2023.
- Current debt
- Current debt demonstrates significant fluctuations over the periods reported. The data for 2019 and 2022 is missing. In 2020, current debt is recorded at 551 million, a substantial value compared to 87 million in 2021, indicating a sharp reduction. By 2023, current debt dramatically rises to 1,923 million, the highest figure in the observed timeline, suggesting a substantial short-term obligation increase.
- Non-current debt
- Non-current debt declines slightly from 6,138 million in 2019 to 5,480 million in 2020. It remains relatively stable through 2021 and 2022 with values of 5,565 million and 5,571 million respectively. In 2023, however, there is a marked increase to 6,951 million, reflecting a significant rise in long-term liabilities.
- Non-current finance lease and other financing obligations
- This line exhibits a consistent downward trend throughout the period, decreasing from 596 million in 2019 to 448 million by 2023, indicating a gradual reduction in finance lease liabilities or other similar obligations classified as non-current.
- Total debt, finance lease and other financing obligations (carrying amount)
- The aggregate carrying amount of total debt and related obligations peaks at 6,834 million in 2019, followed by a gradual decline to 6,132 million in 2022. In 2023, there is a pronounced increase to 9,436 million, driven largely by the increases seen in current and non-current debt categories.
Overall, the data reveals a recent shift towards higher total indebtedness, particularly driven by a substantial rise in both current and non-current debt during the latest period. This is set against a backdrop of a steady reduction in non-current finance lease obligations. The sharp increase in current debt in 2023 may indicate heightened short-term funding requirements or refinancing activities, while the increase in non-current debt suggests rising long-term liabilities. The declining non-current finance lease obligations could imply a strategic move away from lease financing or successful repayment of such obligations over time.
Total Debt (Fair Value)
Dec 31, 2023 | |
---|---|
Selected Financial Data (US$ in millions) | |
Debt | 8,975) |
Finance lease and other financing obligations | 562) |
Total debt, finance lease and other financing obligations (fair value) | 9,537) |
Financial Ratio | |
Debt, fair value to carrying amount ratio | 1.01 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance leases: 4.44%
Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
---|---|---|---|
2.80% | 645) | 18) | |
3.25% | 597) | 19) | |
2.25% | 872) | 20) | |
2.60% | 868) | 23) | |
5.88% | 654) | 38) | |
6.25% | 986) | 62) | |
5.75% | 535) | 31) | |
4.88% | 991) | 48) | |
5.45% | 462) | 25) | |
4.20% | 438) | 18) | |
6.39% | 562) | 36) | |
Total | 7,610) | 338) | |
4.44% |
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 338 ÷ 7,610 = 4.44%
Interest Costs Incurred
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The annual interest costs incurred data indicates several noteworthy trends over the five-year period. The overall interest costs incurred show a slight fluctuation with a peak in 2020, measured at 332 million US dollars, followed by a gradual decline in the subsequent two years, reaching a low of 296 million in 2022 before increasing again to 332 million in 2023.
Interest expense, net of capitalized interest, reveals a generally downward trend from 301 million in 2019 to 227 million in 2022. However, this trend reverses slightly in 2023, with the interest expense rising to 243 million. This suggests that after a period of decreasing net interest expenses, there was an increase in the most recent year.
Capitalized interest demonstrates a consistent upward trajectory throughout the period. Starting from 26 million in 2019, it steadily increased each year, more than tripling to 89 million by 2023. This rising capitalized interest may indicate greater investment activity or increased project financing during this time.
Analysing these components together, the increasing capitalized interest appears to partly offset the declining net interest expense. This results in relatively stable total interest costs incurred over the years, with slight fluctuations but no significant long-term increase or decrease. The rise in capitalized interest could reflect strategic financial decisions to capitalize more interest rather than expensing it immediately, thus affecting the net interest expense trends.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= -1,725 ÷ 243 = -7.10
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= -1,725 ÷ 332 = -5.20
- Interest Coverage Ratio (without capitalized interest)
- Over the five-year period, the interest coverage ratio exhibits a clear and continuous downward trend. Starting from a robust level of 13.58 in 2019, the ratio decreases moderately to 11.82 in 2020. The decline accelerates in subsequent years, dropping to 5.65 in 2021 and then sharply falling to 1.25 by the end of 2022. By 2023, the ratio enters negative territory at -7.1, indicating that earnings before interest and taxes are insufficient to cover interest expenses. This progression points to a considerable deterioration in the company’s ability to service its debt through operational income over the period.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- The adjusted interest coverage ratio, which accounts for capitalized interest, similarly declines throughout the same period. It starts at 12.5 in 2019 and slightly decreases to 10.96 in 2020. The ratio falls more sharply thereafter, reaching 4.96 in 2021 and declining further to 0.96 in 2022, approaching a critical threshold. In 2023, the ratio turns negative at -5.2. The pattern closely mirrors that of the unadjusted ratio, confirming a significant weakening in earnings capacity relative to interest obligations, even after considering capitalized interest.
- Overall Analysis
- Both ratios indicate that the company's coverage of interest expenses has substantially worsened over the analyzed period. The transition from high positive ratios in 2019 and 2020 to negative ratios by 2023 suggests rising interest burdens and/or declining operating earnings. The near-zero ratios in 2022 suggest a critical liquidity position, while negative values in 2023 imply operational earnings are insufficient to meet interest costs, potentially increasing financial risk and stressing cash flows.