Arrow Prospectus - PGS

ARROW SEISMIC ASA – INITIAL PUBLIC OFFERING
8. SELECTED FINANCIAL INFORMATION
The selected consolidated income statement information for the fiscal year ended 31 December 2006 and 2005,
and the selected consolidated balance sheet information as of 31 December 2006 and 2005 has been derived
from the Company’s audited financial statements included in Appendix 2, Appendix 3 and Appendix 4 to this
Prospectus. Appendix 3 is a translation from Norwegian to English of the official 2006 Annual Report for the
parent company Arrow Seismic ASA. The selected financial information set forth below should be read in
conjunction with Arrow Seismic ASA’s published financial statements and the notes to those statements. The
financial statements have been audited by Arrow Seismic ASA’s statutory auditor, Ernst & Young AS.
The selected income statement information for the three months ended 31 March 2007 and 2006, and the
selected consolidated balance sheet information as of 31 March 2007 and 2006 has been derived from the
Company’s interim financial statements for the Q1 2007, included in Appendix 5 to this Prospectus. The
financial information for the Q1 2007 has been subject to a limited review.
The Company has not, since the establishment, paid any dividends.
The accounting principles used by Arrow Seismic ASA are described in section 8.3.
8.1 BASIS FOR PREPARATION
International Financial Reporting Standards (IFRS) have been adopted as the accounting principles for listed
companies in Norway and Europe with effect from 1 January 2005. The Company was established on 27
October 2005 and has prepared the financial statements in accordance with IFRS as adopted by the EU from its
incorporation.
Financial statements included in the document have been prepared in accordance with IFRS (2006 with
comparatives for 2005), which may not be comparable to United States generally accepted accounting principles
(“U.S. GAAP”). A reconciliation of the Company’s financial statements to U.S. GAAP has not been presented
in the prospectus, and the Company does not intend to reconcile future financial statements to U.S. GAAP.
Furthermore, the Company has not quantified or identified the impact of the differences between IFRS and U.S.
GAAP as applied to its financial statements. As there are differences between IFRS and U.S. GAAP, there might
be substantial differences in the Company’s results of operations, cash flows and financial position if it were to
prepare the financial statements in accordance with U.S. GAAP. Prospective investors should review the
accounting policies applied in the preparation of the financial statements and consult their own accounting
experts in order to understand how such differences may be relevant to their review of the Company’s financial
statements.
8.2 FINANCIAL INFORMATION
8.2.1 Consolidated income statements for Arrow Seismic ASA
Income statement
(USD 1,000’)
Reviewed
IFRS
3 Months
ended 31
March 2007
Unaudited
IFRS
3 Months ended
31 march 2006
Audited
IFRS
12 Months ended
31 December
2006
Audited
IFRS
12 Months ended
31 December
2005*
Revenues 5,586 814 9,572 518
Operating expenses (excluding
depreciation and amortisation) (2,104) (317) (5,992) (121)
EBITDA 3,482 497 3,580 397
Depreciation and amortisation (2,932) (522) (5,042) (203)
Operating profit (loss) 550 (25) (1,462) 194
Net finance (3,417) (1,478) (4,431) (182)
Profit (loss) before tax (2,867) (1,502) (5,893) 12
Tax (270) 0 (669) 16
Net income (loss) for the period (3,137) (1,502) (6,561) 28
* From inception 27 October 2005
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