Depending on the transition rules, the payable tax will be between NOK 3.8 billion and NOK 4.8 billion, equivalent to a present value of NOK 20-25 per share. Applying the book values, the equity ratio will be reduced from 38% to between 10% and 16%.

"BW Gas chose to remain in Norway on the understanding that this would be a stable long-term system under which to operate. This latest proposal to cancel the current taxation system would be a dramatic reversal of that understanding, in spite of us honouring our commitment to invest in Norway. We hope that the final details of the proposal will take into account the impact not only on individual companies, but on the entire Norwegian maritime cluster and the image of Norway as a dependable investment location", said Jan Håkon Pettersen, CEO of BW Gas.
 
Background information
The Norwegian Government presented a new proposal for taxation of Norwegian shipowning companies last Friday afternoon. As part of this plan, the Government has proposed to cancel the current tonnage taxation system, which was entered into by Norwegian shipping companies in 1996. The present system levies no tax on operating profit unless taxable dividends are paid to the shareholders or if assets are moved out of Norway. The purpose of the 1996 shipping tax system was for Norway to retain shipping companies and remain competitive as a location from which to conduct international shipping activities. This system was proposed by the Government and supported by the Parliament. The Government now proposes to tax over a ten year period the undistributed profits kept in the system and not previously subject to taxation. In effect, this means a back-tax on the shipping industry from 1996. The new system will be presented on October 6, 2007 as part of the the 2008 fiscal budget, and ratified later in the year, provided that Parliament approves the budget with this back-tax plan.