Tax

Oil Company Cringes at Taxman’s Call

Investigations in four countries are expected to drive up Acergy's tax rate.
Stephen TaubNovember 29, 2007

Acergy S.A., a UK-based oil services company, warned that the results of ongoing tax audits and inquiries in France, the UK, the Netherlands, and the United States could hamper its results for the current fiscal year.

Settlements in these proceedings, particularly in France, could have a material adverse effect on the company’s effective rate of tax, which it anticipates will be higher than its previously provided guidance of 35 percent.

Assessment of the impacts will be determined through the financial close process, it added.

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The company issued this warning ahead of results for the fourth quarter ended November 30. In the pre-announcement, the company said it expects to report a record $2.7 billion of net operating revenue.

For 2008, Acergy is guiding investors to look for an effective tax rate of 35 percent for the underlying operations. However, it added that it anticipates quarterly volatility dependent on when the tax audits are resolved.