What I’ll close with in terms of my comments is, one, there’s a little bit of cash timing between first half and second half. And the second thing is, we feel very comfortable with the cash in the books, plus our unused revolver in terms of our ability to meet our cash needs to the line we get to cash cost.
Unidentified Participant: the number you can see that a little bit.
Julian Nebreda: Julian, could you repeat that again, we couldn’t
Unidentified Participant: Working capital, clearly, there was the — if you look at the balance sheet here, there was some consumption, some pieces. Can you talk about that?
Manavendra Sial: Yes. So it’s referring to 2020 to fourth quarter working capital usage. So if you start with — you put the total year in context and then I’ll bring to close what happened in the fourth quarter. If you put the total year in context, we put a bridge out there as well. The operating cash, which is principally working capital as well as some money that we collect from our customers as prepayments, which is also part of the expanded definition of working capital. It was about a 10% usage in terms of our revenue increase year-on-year. So that’s — that was our total consumption for the total year. As you pass the quarters, most of the cash usage in the fourth quarter was effectively us making good in terms of buying inventory and paying off our suppliers.
That was in execution of our projects, that was already funded in the most part at the beginning of the year from a customer prepayment perspective, which is why you see that phenomenon in the fourth quarter. But as you zoom out and look at the total year, you don’t see that as much. That model will continue, which we really like because it is a very working capitalization model.
Unidentified Participant: Got it. Thank you, guys.
Julian Nebreda: Thank you.
Operator: One moment. Our next question comes from Ben Kallo with Baird. Your line is open.
Ben Kallo: Hey. Good day, guys. Just first, just maybe backing up to the competitive environment. I know you guys have only been there 90 days. But how are you seeing bids change just in terms of the number of competitors and why someone like an Orsted would pick you. How crowded is competition terms? And then my second question, just in terms of tight labor supply, how do you guys think about that the IRA rolls out into next year, and there’s going to be a boom in projects, we think. So how do you think about labor and environment? Thank you.
Julian Nebreda: Thank you, Ben. Kind of maybe the rule of thumb is a final part of it. As you go up with the complexity scale, competition gets less softer. So if you go to a simpler solution where you see a lot of these stars up, there’s a lot of competition as you go up the scale either because the projects are very big or they need specific characteristics or features that we can only deliver then the competition kind of windows a little bit and we can’t really see need to find. And I think that why do people pick us, which is a little bit, why do they select us. I guess the reasons that we have — we talk to our customers as our ability to manage complexity, both in terms of project or product, our safety features. We have a product which is very original, it has proven to be very, very safe.
We have gone , we have done all the testing on the safety that people are really present. And then our end-to-end solution, the fact that when people hire, they know they will have a partner for the next one that will deliver, and we have seen it today with new regulations coming in place in Europe, in the U.K. this year, we were out there, it released the app and help people and customers, ensuring that they will be met regulations and take advantage of these opportunities. So I would say those are the three things: complexity, both on product and project; safety, and they are — they see us as a partner that will offer them — will continue with them and then move on, that’s the driver.
