20. Leases
The statements of financial position shows the following amounts relating to leases:
|
|
Year Ended December 31, |
||||
|---|---|---|---|---|---|---|
(in thousands of $) |
|
2025 |
|
2,024 |
|
2,023 |
Right-of-use assets |
|
|
|
|
|
|
Buildings |
|
28,393 |
|
33,780 |
|
16,798 |
Vehicles |
|
12,297 |
|
6,615 |
|
3,191 |
Equipment |
|
91 |
|
125 |
|
160 |
|
|
40,781 |
|
40,520 |
|
20,149 |
|
|
|
|
|
|
|
Lease liabilities |
|
|
|
|
|
|
Current |
|
10,833 |
|
6,533 |
|
4,646 |
Non-current |
|
36,327 |
|
32,520 |
|
15,354 |
|
|
47,160 |
|
39,053 |
|
20,000 |
Additions to the right-of-use assets amounted to $20 million for the year ended December 31, 2025, compared to $26 million and $11 million for the years ended December 31, 2024 and 2023 respectively.
The table below shows a maturity analysis of the lease liabilities:
|
|
Year Ended December 31, |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
(in thousands of $) |
|
2025 |
|
20241) |
|
20231) |
||||
Lease liabilities |
|
|
|
|
|
|
||||
Less than 1 year |
|
12,458 |
|
8,047 |
|
4,286 |
||||
Years 1 through 5 |
|
32,718 |
|
25,670 |
|
13,890 |
||||
Greater than 5 years |
|
7,786 |
|
11,829 |
|
1,824 |
||||
Total contractual cash flows |
|
52,962 |
|
45,546 |
|
20,000 |
||||
Total carrying amount |
|
47,160 |
|
39,053 |
|
20,000 |
||||
|
||||||||||
The consolidated statements of profit or loss and the consolidated statements of other comprehensive income or loss shows the following amounts relating to leases:
|
|
Year Ended December 31, |
||||
|---|---|---|---|---|---|---|
(in thousands of $) |
|
2025 |
|
2024 |
|
2023 |
Depreciation charges |
|
|
|
|
|
|
Buildings |
|
6,135 |
|
3,657 |
|
2,839 |
Vehicles |
|
4,272 |
|
2,067 |
|
971 |
Equipment |
|
34 |
|
35 |
|
36 |
|
|
10,441 |
|
5,759 |
|
3,846 |
|
|
|
|
|
|
|
Interest expense (included in finance cost) |
|
3,175 |
|
2,072 |
|
693 |
The total cash outflows for leases in 2025, 2024 and 2023 were $4 million, $8 million and $4 million respectively.
The Company applies the short-term lease recognition exemption (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option) and the lease of low-value assets recognition exemption. Lease payments on short-term leases and leases of low-value assets are immaterial and are recognized as an expense within the operating category in the statement of profit on a straight-line basis over the lease term.
The Company does not have any lease agreement with variable lease payments or residual value guarantees. The Company has several leases that include extension and termination options. These options provide flexibility in managing the leased-asset portfolio and align with the Company’s business needs. The Company exercises judgment in determining whether these extension and termination options are reasonably certain to be exercised. The undiscounted potential future rental payments relating to periods following the exercise date of extension and termination options that are not included in the lease term are not material.