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.
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