Premier Oil to report in US dollars
Premier Oil, the exploration and production company, is to switch from sterling to the US dollar as the group's reporting currency.
Link: Buck the Trend
The majority of Premier’s revenue and expenditure is carried out in US dollars, despite being a UK company headquartered in London.
The company said by adopting the US dollar for reporting purposes, the board believes the accounts will give a clearer picture of the performance of the company’s business, minimising the impact of US dollar/sterling exchange rate fluctuations.
The change will take effect in the results for the year ended 31 December 2004, to be announced in March 2005.
FD John van der Welle said reporting twice a year to shareholders in sterling put an ‘artificial overlay’ on its results. ‘We even submit tax returns to the UK’s Inland Revenue in dollars,’ reported The Financial Times.