Noble Energy Inc. (NYSE: NBL) has repatriated $858 million, according to its financial report, which had been earmarked for investment in the company's world and Israeli natural gas assets.
The financial report added that repatriating the money would obligate Noble Energy to pay negligible tax on profits in the US. The company added that the repatriation was carried out in order to offer the company more financial flexibility.
Such a step is almost unprecedented in the US economy in recent years. Companies large and small, which have accumulated hundreds of billions of dollars in various tax havens and the countries in which they are operating tend to avoid paying tax in the US.
From Noble Energy's financial report, it transpires that Israel is one of the only locations in which the company is financially profitable. Noble Energy made a pre-tax profit of $318 million in 2015, down 7.6% from the previous year, while in the US, the company reported a pre-tax loss of $891 million compared with a profit of $509 million in 2014. Overall, Noble Energy ended 2015 with a $2.4 billion loss.
On Friday, Moody's downgraded the ratings of eight US energy companies including Noble Energy. Noble was downgraded by one notch to Baa3, one rating above junk with a negative outlook. This downgrading will make any money more expensive that Noble Energy wants to raise to develop the Leviathan field.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2016
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