OSLO, Norway, Oct. 15, 2007 (PRIME NEWSWIRE) -- Petroleum Geo-Services ASA ("PGS" or the "Company") announced today that it expects to recognize approximately US$150 million of additional deferred tax asset in its interim financial statements for the third quarter 2007.
When the Company released its interim financial statements for the second quarter 2007 it reported that it had approximately US$230 million of unrecognized deferred tax assets and that a significant portion would possibly be recognized in the third quarter. As of today, the Company's management expects to recognize in the third quarter approximately US$150 million of deferred tax asset in addition to amounts previously recognized. The amount would be recorded as an increase of deferred tax asset in the balance sheet and as a one-off credit to income tax expense (i.e. a tax benefit) in the income statement.
The recognition of an additional deferred tax asset is a result of the increased likelihood that the related benefits will flow to the Company in the form of reduced future taxes. It is a non-cash item and does not represent any change in the Company's tax status or tax positions.
This information is released to the market in recognition of its impact, despite of the non-cash nature, on analysts' estimates for net income and earnings per share.
As previously announced PGS plans to release its 2007 third quarter financial results on Wednesday, October 24, 2007, at approximately 8:00 am Central European Time (CET).
Petroleum Geo-Services is a focused geophysical company providing abroad 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 that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. 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 Annual Report on Form 20-F for the year ended December31, 2006, as filed with the U.S. Securities and Exchange Commission.As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.