4.3.27Trade and Other Payables

Trade and other payables (summary)

The total trade and other payables remained stable, despite the higher construction activities during 2019, due to the timing of payments made to suppliers.

Accruals regarding delivered orders increased in 2019 mainly due to the recognition of accruals related to the finalization of FPSO Liza Destiny following project completion in December 2019.

Decrease of the contract liability relates to progress of the work performed by the Company mainly in relation to Turret Mooring System EPC projects. The Company recognized revenue of US$125 million during the period, which was included in the contract liability as per December 31, 2018.

Payables related to taxation and social security costs increased mainly due to the Company's updated assessment of uncertain tax positions related mainly to various taxes other than corporate income tax.

Current portion of deferred income is mainly related to the revenue of one operating lease contract which includes a decreasing day-rate schedule. As income is shown in the income statement on a straight-line basis with reference to IFRS 16 ‘Leases’, the difference between the yearly straight-line revenue and the contractual day rates is included as deferred income. The deferral is released through the income statement over the remaining duration of the relevant operating lease contract.

Other non-trade payables include mostly interest payable, dividends payable and the short-term portion of the outstanding payments related to the Leniency Agreement. The long-term portion of the liability for outstanding payments related to the Leniency Agreement and the settlement with Brazilian Federal Prosecutor’s Office (Ministério PúblicoFederal – 'MPF') is presented in the line item 'Other non-current liabilities' in the Company's statement of financial position.

The contractual maturity of the trade payables is as follows:

Trade and other payables (contractual maturity of the trade payables)