4.3.5Expenses by Nature

The table below sets out expenses by nature for all items included in EBIT for the years 2019 and 2018:

Note

2019

2018

Expenses on construction contracts

(1,319)

(469)

Employee benefit expenses

4.3.6

(575)

(519)

Vessels operating costs

(312)

(289)

Depreciation, amortization and impairment

(268)

(235)

Selling expenses

(30)

(22)

Other costs

(153)

(142)

Total expenses

(2,657)

(1,676)

Year-on-year, expenses on construction contracts increased mainly as a result of higher activity on Turnkey projects. The main projects responsible for the increase of expenses are: 2019 awards of FPSO Liza Unity and FPSO Sepetiba and the initial limited scope awarded for the FPSO Prosperity project.

In 2019, depreciation, amortization and impairment was impacted by a US$16 million impairment of semi-submersible production facility Thunder Hawk and a US$9 million impairment of Deep Panuke MOPU.

Expenses related to short-term leases and leases of low value assets amounted to US$6 million in 2019 (2018: US$4 million).