OSLO, Norway, April 20, 2007 (PRIME NEWSWIRE) -- Petroleum Geo-Services ASA ('PGS' or the 'Company') (NYSE:PGS) (OSE:PGS) released today its IFRS Transition Report. PGS is required to use International Financial Reporting Standards (IFRS) for its primary financial reporting effective from, and including, the first quarter 2007. The Company has historically, through December 31, 2006, presented its primary financial statements on the basis of U.S. GAAP.
The purpose of the IFRS Transition Report is to prepare users of the Company's financial statements for the change to IFRS. The document contains a description of the Company's IFRS accounting policies, reconciliation from US GAAP to IFRS of selected unaudited 2006 financial information, and a description of significant differences between its reporting based on IFRS and U.S. GAAP.
In connection with the Company's completion of the IFRS Transition Report, the Company's Board of Directors have resolved to change the reporting of Income from discontinued operations in the Company's 2006 financial statements based on Norwegian GAAP. The change does not impact the Company's financial information previously released based on U.S. GAAP which is the Company's primary basis for reporting to the market.
Compared to the unaudited Norwegian GAAP financial information included in the supporting tables in the Company's earnings release dated February 26, 2007, the change will reduce the reported Income from discontinued operations, net of tax, by USD 47.5 million. The change relates to the reported gain on the sale of 20% of the shares in Petrojarl and is a reclassification in the Norwegian GAAP financial statements of consolidated net assets of Petrojarl between distribution to shareholders and cost of shares sold. The change does not impact reported earnings from continuing operations, statement of cash flows or balance sheets under Norwegian GAAP.
Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway. For more information on Petroleum Geo-Services visit www.pgs.com.
The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission including the Company's most recent Annual Report on Form 20-F for the year ended December 31, 2005. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.
The full report can be downloaded from the following link: http://hugin.info/115/R/1120356/205945.pdf