Dolphin Drilling today announces judgement handed down by the Court of Appeal in the UK regarding legacy tax case. The decision will be appealed.

Reference is made to the Dolphin Drilling Q3 earnings release report from November 28 2023, specifically the contingent liability noted in the ongoing legal process vs HMRC in the UK. Following two successful appeals defending the company’s position in the First-tier Tax Tribunal in November 2020, and against HMRC’s appeal to the Upper Tribunal in August 2022, the judgement handed down today by the Court of Appeal has found in favour of HMRC. The value of the tax claim is £9.9M, together with interest and costs of £2.9M to date this would total £12.8M.

Dolphin Drilling has taken steps to immediately appeal this decision, which based on procedural outcomes at each stage of the appeal process could take a number of months or potentially years until a final outcome is reached.

Stephen Cox, CFO, made the following statement:
“We are extremely disappointed to note the decision of the Court of Appeal today which finds in favour of HMRC and which overturns the judgements in the First-tier Tax Tribunal and Upper Tribunal, not only in the Court’s interpretation of the case, but also in a fundamental shift in interpretation of the language in the relevant legal test which has potentially significant ramifications for assets within UK territorial waters. Our legal teams have advised the position to be appealable and as such Dolphin Drilling has immediately taken steps to seek permission from the Courts to appeal this decision. We will continue to defend our position.”

KeyFacts Energy Industry Directory: Dolphin Drilling