Show All

Contract Portfolio and Main Clients

As of 06.30.2017, the contract portfolio (Backlog) had the following breakdown:

Client Backlog (USD Million) % of Backlog
Government 10,209 68%
Private Companies 375 2%
Intercompany 2,344 16%
Submarine 2,109 14%
Total 15,037 100%

Advances from Customers

When we enter into a contract, we generally receive between 10 to 15% of the contract’s value in Advances from customers (“down-payment”).

These advances are deducted proportionally from each invoice issued (from the beginning to the end of the contract). For instance, if the advance was 10%, an equivalent percentage will be deducted from each invoice. Advances from clients with expected deduction of more than 12 months are registered as long-term obligations.

If a contract is canceled, the amount of advances received is deducted from accounts receivable outstanding with the customer. If the advance is related to overbilling, it is made the adjustment in the contract margin. Further in case of cancellation the customer must still pay for decommissioning costs and obligations to suppliers.

Currency Debt Breakdown

As of 06.30.2017, OEC’s debt breakdown by currency type (excluding the guarantees to the OFL Bonds) was 97% in foreign currencies and 3% in Brazilian real.

Currency Cash Breakdown

Of the total cash and cash equivalents as of 06.30.2017, 65% are in USD, 10% in Reais and 25% in other currencies. 

Dividends Distribution Policy

Our dividend policy is to distribute the legal minimum of 25%. In 2016, no dividends were declared aiming at preserve OEC’s liquidity.