Revenue

Directional ¹ Revenue decreased by 23% year-on-year despite an increase of 19% for the Lease and Operate segment:

Revenue (in millions of US$)

Directional¹

Third party Directional Turnkey revenue came down 54% year-over-year to US$ 702 million, representing only 35% of total 2016 revenue. This compares to US$ 1,512 million, or 58% of total revenue, in 2015. The decrease is mostly attributable to the completion stage reached in the course of 2016 on Ichthys turret and FPSOs Cidade de Maricá, Cidade de Saquarema and Turritella, as well as the very low order intake in 2014, 2015 and 2016 as a result of the market downturn.

Directional¹ Lease and Operate revenue increased by 19% to US$ 1,310 million, representing 65% of total Directional¹ revenue contribution in 2016, up from the 42% contribution of 2015. The increase in segment revenue is attributable to the start-up of FPSOs Cidade de Maricá, Cidade de Saquarema and Turritella while no vessel have been decommissioned during the period.

IFRS

Total IFRS revenue decreased during the year, down by 16% to US$ 2,272 million, despite an increase of 25% for the Lease and Operate segment. This was mainly attributable to significantly lower revenue recognized in the Turnkey segment upon completion of major projects in the course of 2016 as well as low order intake in 2014, 2015 and 2016.