UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 20-F





(Mark One)

| ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------------

OR



|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended November 30, 2009

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from              to

OR



| ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

Date of event requiring this shell company report

Commission File Number 00-21742





ACERGY S.A.

(Exact name of Registrant as specified in its charter)





LUXEMBOURG

(Jurisdiction of incorporation or organization)

c/o Acergy M.S. Limited

200 Hammersmith Road, London W6 7DL England

(Address of principal executive offices)

Contact Details of Company Contact Person:

Name: John Nicolson

E-mail: john.nicolson@acergy-group.com

Telephone: +44(0) 20 8210 5574

Address: 200 Hammersmith Road, London W6 7DL, England

Securities registered or to be registered pursuant to
Section 12(b) of the Act:



|                               |  |                                          
|------------------------------ |  | -----------------------------------------
|Title of each class            |  | Name of each exchange on which registered
|                               | 
|Common shares, $2.00 par value |  | Nasdaq Global Select Market              

Securities
registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

Indicate the number of
outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the annual report:



|                               |  |                                                   
|------------------------------ |  | --------------------------------------------------
|Common shares, $2.00 par value |  | 194,953,972 (including 11,746,930 treasury shares)





Indicate by check mark if
the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    x  Yes     ̈  No

If this report is an annual or transition report, indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.     ̈  Yes    x  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days.    x  Yes     ̈  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     ̈  Yes     ̈  No

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):



|                             |  |                        |  |                           
|---------------------------- |  | ---------------------- |  | --------------------------
|Large accelerated filer    x |  | Accelerated filer     ̈ |  | Non-accelerated filer     ̈

Indicate by check mark which basis of accounting the registrant has used to prepare the financial
statements included in this filing:



|                                                                                                      |  |   | 
|----------------------------------------------------------------------------------------------------- |  | - | 
|US GAAP                                                                                               |  |  ̈ | 
|                                                                                                      | 
|International Financial Reporting Standards as issued by the International Accounting Standards Board |  | x | 
|                                                                                                      | 
|Other                                                                                                 |  |  ̈ | 

If Other has been checked in response to the previous question, indicate by check mark
which financial statement item the Registrant has elected to follow:

 ̈  Item 17     ̈  Item 18

If this is an annual report, indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)     ̈  Yes    x  No







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Business Review:

Market Review



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           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|Our industry and markets The medium-term fundamentals remain strong driven by increasing field depletion, the need to access new reserves and replenish production.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 
|Acergy is a seabed-to-surface engineering and construction contractor to the offshore oil and gas industry worldwide. We provide integrated
services, and we plan, design and deliver complex projects in harsh and challenging environments.  Our business operates in the engineering and construction market, representing the late cycle elements of the upstream cycle of the offshore oil and gas industry. The focus of our business is outlined
below.  Market environment World energy demand is expected to be 45% higher in 2030 according to the World Energy Outlook 2009 produced by the International Energy Agency (IEA), driven by the
non-OECD economies, which account for 93% of the increase in global demand for energy between 2007 and 2030, driven largely by China and India, where their future consumption is expected to significantly exceed current production, despite short-term
slowdowns.  Even under the most optimistic assumptions about the development of
alternative technology, and the abatement arising from actions taken to reduce CO2 emissions, oil is expected to remain the worlds main source of energy for many years to
come.  Decline rates are a key determinant of the investment needs of the oil
companies. More and more of the worlds oil fields have entered into peak production and are in rapid decline. Russia and Mexico are now in the category of declining areas, in addition to the North Sea and the US, which have been declining for
a while. The IEA reference scenario projections imply a one percentage-point increase in the global average natural decline rate to over 10% per year by 2030 as all regions experience a drop in average field size and most see a shift in
production to deeper offshore fields, which have the highest decline rates. According to the IEA analysis of the worlds largest fields the underlying average rate of decline worldwide, was as high as 6.7% for those fields past the peak. In
addition, when stripping out the ongoing and period investment, the underlying rate of decline is expected to be as high as 9% for post-peak fields. Therefore, sustained investment is needed mainly to combat the decline in output at existing fields,
which will drop by almost two-thirds by 2030.  It is forecast that some 465mb/d of
gross capacity, or roughly four times the current capacity of Saudi Arabia, the worlds largest oil producing nation, needs to be installed between 2007 and 2030 to offset the effect of expected oilfield decline. The situation facing natural
gas is also worthy of mention. Additional capacity of around 2,700 bcm, or four times the current Russia natural gas production capacity is needed by 2030, half to offset decline at existing fields and half to meet the increase in global demand.  Despite the cyclicality of the energy sector, recent macro economic conditions,
including the worst economic slump since WWII and a collapse followed by a rebound in the oil price, we expect to see a continued expansion of demand for our services in the medium to long-term driven by the depletion of existing reserves and the
accelerating rate of decline of producing fields. Furthermore, structural changes underway in the upstream oil and gas industry mean national oil companies will play an increasingly dominant role compared to international oil |  | companies and are expected to account for about 80% of total incremental production in both oil and gas between 2007 and 2030.  While increased exploration and technological improvements have resulted in higher annual levels
of oil discoveries, including some recent significant finds such as the deepwater pre-salt fields offshore Brazil, the demand for, and production capacity of, the oil business shows a tight market with a low reserve replacement ratio, coupled with
accelerating decline rates for mature fields.  Despite lower short-term oil prices,
it is expected that the industry will continue to increase its capital expenditure (capex) in offshore exploration and production (E&P), as it is driven to look ever deeper and to more hostile environments for new reserves.   SURF activity becoming deeper Over 60% of global EPIC SURF activity in the next five years is expected to be in water
depths >500m. 
 LOGO
 Source: Infield Systems Ltd  Oil companies are facing the combined challenges of low reserve replacement ratios, as well as
smaller, deeper and more complex reservoir economics in more remote and less accessible areas, coupled with fewer larger discoveries. The next frontier is deepwater, where there have been important discoveries lately, including Brazil, Gulf of
Mexico and West Africa. Common to these is the greater challenge, and therefore higher E&P costs. Furthermore, development in deepwater takes a long time, typically about ten years.  Combining all these structural challenges that the oil companies are facing on the supply side
with the knowledge that oil demand is forecast to grow by approximately 9% in 2010, which shows a return to 2008 capex levels, following a 8% decline in 2009, which should be supportive for oil companies E&P spending.  Furthermore, increased investment in the offshore oil and gas industry is expected over the
medium to long-term, driven by continued strong levels of global demand for hydrocarbons, despite the current macro-economic slowdown, and faster decline rates at existing fields. As such, global upstream oil and gas investment is expected to be
approximately $600 billion in nominal terms by 2012, an increase of more than half over 2007 levels, with deepwater production capacity expected to grow significantly faster than that of shallower waters.







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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|Subsea field developments Subsea
engineering and construction in the offshore field developments, and the SURF (subsea, umbilicals, risers and flowlines) components, especially in deepwater and challenging environments, is our key focus, representing approximately 70-80% of backlog
for continuing operations on a year-on-year basis.  Infield Systems Ltd forecasts
that the total volume of Engineering, Procurement, Installation and Commissioning (EPIC) SURF work is expected to increase 60% over the next five years compared to the previous five years, with developments in water depths greater than 500 metres
expected to grow at the fastest rates. As a result, some 60% of the SURF market is expected to be in deepwater.  Important lead indicators for the SURF market include deepwater drilling contracts, subsea tree installation, and the demand for key installation components within the subsea construction contract, such as
pipelines, umbilicals and flexibles.  Following a shortage of available assets and
the lead times required to build new units in recent years, operators have been keen to secure access to capacity in the early stage of the offshore upstream cycle. As a result, a significant number of multi-year deepwater drilling contracts have
been awarded during 2007 and 2008, typically lasting from 2009 to 2013/14. It is forecast, that approximately six to eight new deepwater units will be delivered every quarter, from the second half of 2008, for the foreseeable future. These drilling
contracts represent a significant investment on behalf of the major oil companies.  Global subsea tree installation forecast by water depth Subsea tree
installation is a leading indicator for the SURF market. It is expected that the number of trees to be installed in the next five years will increase by more than 80% over the past five years. 
 LOGO
  Source: Infield
Systems Ltd  
 LOGO |  | It is expected that most of these contracts will, in time, lead to offshore construction and SURF work, however, to date only a small minority of
the associated EPIC SURF contracts in the subsea market have been awarded, representing significant future growth potential for the offshore construction and SURF market as a whole.  The volumes of subsea trees scheduled for installation is a further lead indicator of growth in
the SURF market in any given year. Capacity constraints throughout the supply chain in recent years have capped the volume of subsea tree installations. The combination of manufacturer investment and medium-term growth in the demand by major
operators in the offshore oil and gas market suggests positive growth. While 2009 saw a significant decrease in the number of trees installed due to the delay in contract awards resulting from the challenging macro environment, it is estimated that
the number of trees for installation in the period 2010  2013 represents an increase of some 80% on that of the previous five years, of which 55% are expected to be installed in 500 metres or greater.  The market for SURF activities has historically demonstrated cyclicality. The increasing size and
complexity of projects, together with external factors including national oil company approval, financial arrangements for the field operators, and the timing of the various development and exploration phases for these fields, suggest that, while
the fundamentals remain as strong as ever, we believe that we may continue to see the market remain cyclical in nature.  Inspection, Maintenance and Repair (IMR) and Survey The market
for IMR work has traditionally focused on the UK and Norwegian sectors of the North Sea and the Gulf of Mexico, the latter of which has often been driven by hurricane repair work. With the noticeable exception of 2009, the level of global offshore
capex has increased significantly over the past few years, which together with the expected continued increase in the installed base of subsea equipment suggests that the level of operating expenditure required to undertake examinations by
specialist survey assets and to maintain and repair previously installed and existing infrastructure will also increase. This has important implications for the growth in offshore and subsea services, such as Survey and IMR, which, excluding
hurricane repair work, is expected to grow significantly in the coming years. Furthermore, this market is expected to become more global in nature, following the trend of increasing globalisation of the subsea engineering and construction market.  Conventional Refer to Conventional field development outlined in Territory 2 on page 32. 
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Business
Review:

Operating Review



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|Territory
1 Northern Europe and Canada Asia and Middle East 
 LOGO
  Territory 1 includes the business segments covering
the North and Norwegian Seas and Western Canada, as well as Asia and Middle East including Asia Pacific and Australasia.  North and Norwegian Seas The North and Norwegian Seas have long
been an important market for offshore construction contractors. After decades of exploration and production, the developed infrastructure allows fast-track development from discovery to production, with relatively high profitability. Recent
prominent discoveries, such as Dagny and Ermintrude, in one of the most explored areas, shows that with new technology, new concepts and even better geologists, new resources can be found.  With time, the harsh and extremely challenging environments of the Barents Sea, and eventually
the Arctic will be within the technological capabilities of the industry and the realisable ambitions of our clients.  Asia Pacific Growing demand for energy in Asia is driving offshore oil and gas exploration and development in
the Asia Pacific region notably in Malaysia, Indonesia, India, Australias Northwest Shelf, and China. Development activity in the region is expected to grow sharply to exploit untapped deepwater resources, providing significant and growing
opportunities for SURF contractors in deepwater and challenging environments.  2009
saw the award of the Shell Gumusut contract to SapuraAcergy. This is the first of the major deepwater SURF projects in Malaysia to be awarded.  The Northwest Shelf offshore Australia currently comprises predominantly gas driven developments. With fourteen proposed new LNG developments, in addition to Gorgon
and PNG LNG Australasia, Australia has the potential to become one of the largest global suppliers of LNG. |  | IMR/Survey Acergy has traditionally
focused its IMR/Survey activities on the UK and Norwegian sectors of the North Sea, Norwegian Sea and Brazil.  With approximately 6,000 fixed platforms, 186 floating production sites, 175,000km of subsea pipeline and 3,300 wells in operation worldwide, the scope of the IMR/Survey market is significant and
growing.  Acergy has a world-class track record in the North Sea and Brazil in the
IMR/Survey market, demonstrated by the long-running BP Inspection contract, which has run for over 14 years and the recent award of a multi-year diving support vessel services contract to the DSVi consortium of companies in the North Sea.
 As older infrastructure comes to the end of its original design life, and new increasingly
complex subsea infrastructure is installed, the IMR/Survey market is forecast to grow significantly. With an increasing need to deliver technically challenging IMR contracts efficiently, the market represents a strong growth opportunity for Acergy
in the medium and long-term.  Opportunities for Acergy Our vision is to be the acknowledged leader in seabed-to-surface engineering and construction. The Group is dedicated to sharing its expertise and experience to create
innovative solutions for our clients, the worlds national, international, and independent oil and gas companies.  A common geological theme between Asia Pacific, especially Australia and the Norwegian Continental Shelf (NCS) is the prominence of gas fields. Acergys expertise on the NCS can be readily transferred to
support our clients needs in developing gas driven solutions on the North West coast of Australia.  Our client base, experience and industry knowledge means we are well positioned to anticipate market developments and ensure we are prepared for future tendering of major SURF contracts as existing and new basins
reach development milestones.  Over the coming years, we believe access to new
reserves will be in increasingly harsh environments and offshore developments are set to become deeper and more complex.  Summary The expected profile of major developments, in
particular the fact that the next development phase of fields in the Atlantic triangle is expected to coincide with the development of deepwater markets in the Asia Pacific region, means that demand for deepwater oilfield services is expected to
significantly exceed supply in the medium to long-term. The award of the first significant SURF contract in Malaysia and the entry of the Sapura3000 into Australia have demonstrated that we are well positioned to capitalise on these future market
growth opportunities. |  | 







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|Acergy |  | Annual Report and Financial Statements 2009



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Business
Review:

Operating Review continued



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                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   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|Territory
2 Africa and Mediterranean North America and Mexico South America 
 LOGO
  Overview Territory 2 includes the business segments covering the Atlantic triangle of West Africa, Brazil and the Gulf of Mexico.  Atlantic triangle  West Africa Angolas offshore deepwater production is expected to double to over three million barrels of oil equivalents per day by 2015, subject to OECD quotas, following
major developments by the oil majors in conjunction with Sonangol, in blocks 15, 17, 18 and 31 and the identification of significant opportunities in producing blocks and discoveries in recent years, such as blocks 31 (BP) and 32 (Total). Contract
awards for Nigerias significant deepwater offshore reserves have experienced continued delays. Awards are expected to be announced during 2010 and beyond. In addition, the requirement to eliminate gas flaring will lead to a number of
initiatives in this region, as demonstrated by the recent sanction of the Angola LNG plant in Soyo and the associated gas gathering system for blocks 0, 14, 15, 17 and 18.  Atlantic triangle  Brazil The recent pre-salt discoveries in offshore deepwater in Brazil represent a substantial opportunity for Acergy given its long track record in the country and strong
relationship with Petrobras, Brazils national oil company. Petrobras total planned investment for the period 2010  2014, show significant increases over the previous five years with the largest increase focused on investment in
offshore E&C activities. Almost $50 billion is earmarked for new upstream projects focused on: new production systems at Campos Basin, the start of the Santos Basin pre-salt development and accelerating the development of the Espirito Santo
pre-salt (Parque das Baleias). Pre-salt production is expected to account for nearly 50% of Petrobras production by 2020, from nil in 2008.  Atlantic triangle  Gulf of Mexico The Gulf of Mexico is
one of the most prolific hydrocarbon basins in the world and activity levels remain high. Development of the regions ultra- |  | deepwater fields, in close to 10,000 feet (some 3,000 metres) of water is expected to lead to significant opportunities from 2010 onwards.
These lower tertiary developments present technological challenges and require substantive innovation to provide the engineering and construction solutions that our clients require. The completion of the Perdido Project in water depths of nearly
3,000 metres in fiscal year 2009 demonstrates Acergys ability to execute successfully in the ultra-deepwater of the Gulf of Mexico.  Conventional The conventional market relates to the fabrication
and installation of fixed offshore platforms and associated pipelines, driven by operators needs to ensure continued production from current oil and gas facilities. This often requires the renovation of existing shallow water platforms and
associated pipelines, while ensuring conformity to the latest health and safety and environmental standards.  For Acergy, our conventional business focuses on the West African market. During 2009, we were awarded conventional contracts in Angola, as well as EPC4A and EGP3B, the first of the long awaited contracts in
Nigeria.  Opportunities for Acergy Our vision is to be the acknowledged leader in seabed-to-surface engineering and construction. The Group is dedicated to sharing its expertise and experience to create
innovative solutions for our clients, the worlds national, international, and independent oil and gas companies.  Our client base, experience and industry knowledge means we are well positioned to anticipate market developments and prepared for future tendering of major SURF contracts as existing and new basins reach
development milestones. Over the coming years, we believe access to new reserves will be in increasingly harsh environments and offshore developments are set to become ever deeper and more complex. Many new opportunities are expected in offshore
deepwater in the Atlantic triangle where we have a strong presence and track record.  For Acergy, our conventional business focuses entirely on the West African market. We have considerable local capabilities in Angola and Nigeria and have invested significantly in developing local expertise and innovative capability in our
people and our fabrication yards. We see our long-term local presence as a priority and key strength, which together with our track record positions us well to benefit from this market in supporting clients to maintain their current
production.  Summary The expected profile of major developments, in particular the fact that the next development phase of fields in the Atlantic triangle means that demand for deepwater
oilfield services is expected to exceed supply in the medium to long-term. The frontier territories of the Atlantic triangle are expected to become the deepwater fields under development during this period. Territory 2 continues to build backlog for
execution in 2010 and beyond. We continue to see progress in the conventional market in West Africa. Our success in winning the long-awaited conventional awards during 2009, will result in a higher proportion of our activities coming from
conventional activities over the next few years. We expect over the medium and long-term SURF will be the main driver of our future activities and we are well positioned geographically to capitalise on these future market growth
opportunities. |  | 







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|Acergy |  | Annual Report and Financial Statements 2009



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|The spirit and
energy of Acergy   Our core values underpin all that we are and all that we do  they embody the spirit and energy of Acergy at its best and are essential elements of sustainable value
creation.  Jean Cahuzac Chief Executive Officer |  | In order for Acergy to continue to deliver value for its shareholders, we must be assured of sustainable returns on its investments over many
years. In the Groups view, corporate performance cannot be sustained over an extended period unless it is founded on enduring and positive relationships with those who have an interest in the Groups activities, including shareholders,
clients, employees, governments and the communities in which we live and work.  We
strive to respect the principles of sustainable development as much as possible in our own business activities. By embedding sustainability into our business processes, we link our non financial performance with our business strategy. This enables
us to focus our efforts on long-term value drivers that contribute to the success of our company and progress for society at large.  Being successful over the long-term requires a thoughtful, proactive approach to each of these areas. By balancing growth, development and sustainability we will be
able to achieve our vision, and thereby be acknowledged by our clients, our people, and our shareholders as the leader in seabed-to-surface engineering and construction.  We address the challenge of sustainability through a diverse range of activities,
including:  Governance We manage safe, reliable, and ethical operations worldwide as well as sustainability issues through our core values and our globally deployed management systems. We
expect our employees to adhere to a strong corporate governance ethos and to integrate sustainability into their work-related activities and decision-making processes. Our management and controls systems are designed to support that goal.
 For further details, refer to Governance on page 52.  People We are, at our heart, a business driven by the passion and know-how of our people. We are committed to attracting, developing and retaining a truly multicultural world-class workforce to achieve our ambitions. For
further details, refer to Sustainability on pages 36 to 37.  Health and Safety Health and Safety remains at the heart of all our operations and we are committed to achieving our safety vision: an
incident free Acergy workplace everyday, everywhere.  For further details, refer to
Sustainability on pages 40 to 41.  Environmental
Performance We are committed to conducting business throughout the world in a manner that seeks no harm to the environment. We integrate
environmental improvement into our business plans and strategies, and address key environmental issues that are specific to the processes and activities of each business.  For further details, refer to Sustainability on pages 38 to 39. |  | 





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|Community We seek to create enduring and
positive relationships with those who have an interest in the Groups activities, including shareholders, clients, employees, governments and the communities in which we live and work. This, we believe, should have a positive influence in the
communities in which we work, and that this will foster long-term economic and social benefits from our projects and presence.  For further details, refer to Sustainability on pages 38 to 39.  Core values Our Core Values underpin all that we are and all
that we do. They embody the spirit and energy of Acergy at its best and are essential elements of sustainable value creation. Our values base is essential to our success over time in a competitive environment and are at the core of our management
system. They drive our performance and guide us in how we do business and how we work together and towards external stakeholders. We are not willing to compromise on our values, either in words or actions.  Bringing our core values to life Following our 2008 Global Opinion, in early 2009, Acergy AFMED created a forum to address the challenges facing their managers in which the Equipe des 100
(Team 100) was formed to focus on key business and management issues. In June, the group came together for a workshop on Acergys values. This event, hosted by Olivier Carré, Senior VP, Territory 2 and Paul Smith, Group Head of
Organisational Development, was designed to help managers explore how each of the Values can be brought to life through the demonstration of specific behaviours every day. Olivier and his team took time to explain what the Values meant to them
personally, and the group were challenged to explore each value in turn and identify real life examples of the Value in action. These examples, are now being used to help others define and understand what it means to be an effective
manager in Acergy.  Through focus and disciplined adherence to these values, we will
be able to achieve our vision: to be acknowledged by our clients, our people, and our shareholders, as the leader in seabed-to-surface engineering and construction. |  | Acting on our commitments Acergy is
committed to ensuring that we act on our commitments under the highest ethical standards. We expect employees to adhere to all company policies and to be responsible for reporting suspected violations of the law or corporate policy to management.
Employees are required to annually confirm that they have read and are familiar with the policies set forth in our Code of Business Conduct, which include a Code of Ethics and Business Conduct to prevent bribery and corruption. Detailed training is
provided to employees on a regular basis to ensure they understand company expectations. Further details on our Code of Business Conduct can be found in the Corporate Governance section.  Suspected violations are identified through internal control procedures, supervisory reviews,
hotline calls, and employee or third-party tips. Our internal Business Assurance Service and management investigate suspected violations of law, business practices, or internal control procedures.  To facilitate the reporting of fraud and corruption at the workplace in relation to internal
controls in the financial, auditing, accounting and banking fields there is a whistle blowing system in place that is available to all of our people to be able to confidentially report any concerns. The system Safecall is an alternative
way of reporting genuine concerns, which individuals feel may not be adequately dealt with by other existing reporting channels such as line management or personnel representatives. The facility is provided by a third-party company, to ensure that
we are able to leverage from their provision of quality service, as well as providing the opportunity for people to raise their concerns in a professional and confidential manner. Given the global nature of our business this facility ensures that
standardisation and quality can be sustained for Acergy all over the globe, as multi-way telephone interviews can be carried out in over 150 different languages and dialects.  Our employment practices are governed by our Code of Business Conduct, which support our
commitment to equal employment opportunity, prohibit harassment and discrimination in the workplace, and are consistent with applicable laws and regulations of the countries in which we operate. Acergy does not tolerate any form of discrimination or
harassment in the workplace. | 



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|A dedicated and experienced
team of people                                                                                                                                                                         |  | LOGO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Acergy is, at heart, a business driven by the passion and know-how of our
people. We are committed to attracting, developing and retaining a truly multicultural world-class workforce to achieving our ambitions. |  | One of the tightest constraints on the growth of our business over recent
years has been people, with the average age and experience of people within the industry falling significantly over the past decade, the industry has faced considerable challenges in recruiting talent to satisfy future capacity.  2009 has been a challenging year for all businesses. During this difficult period, we have
demonstrated financial discipline and effective management of our cost base. This has resulted in a reduction in the workforce as employment levels have been adjusted to address declining activity levels in some geographies.  In challenging times, successful companies are those that apply business discipline to maintain
focus on delivering on behalf of its clients, while maintaining its risk profile within acceptable tolerances in order to manage effectively through the short-term challenges without compromising its long-term strategy and
expertise.   People by business segment As at November 30, 2009 Acergy employed nearly 6,400 people
worldwide. The Corporate category includes offshore personnel. 
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   Split permanent/contractor Approximately 70% of our global workforce are permanent employees.
This is a common split within the offshore engineering and construction industry and enables us to effectively leverage our global capabilities to meet our clients needs. 
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                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   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 Despite these short-term challenges, we believe the fundamentals of our business remain strong and the need to access new reserves and
to replenish production will return our markets to growth. This, we believe will once again present capacity constraints and that the challenges the industry has faced in recent years in recruiting talent will return.  To address the short-term challenges and to ensure we are well placed to capitalise on new growth
opportunities, we continue to leverage one of our global capabilities, namely our people, while realigning our business to meet the future needs of our clients. We continue to focus on selected recruitment in the traditional regions, as well as
maintaining a strong focus on critical growth countries, including Angola, Australia, Brazil, Malaysia and Nigeria.  Our strategy is to increase the number of national employees in key markets and to train them in technical and professional skills necessary for working on existing and future projects and operations. Over the
long-term, this helps us to develop a pool of talented employees to meet future business needs around the world, beyond supporting local operations. These actions will ensure that we have a truly integrated presence and that we are well placed to
satisfy demand for our services in the future.  People development
In an industry where people are a core asset, continued focused development and training is key to maintaining expertise and driving the creativity and innovation
of our people which remains an essential element to achieve our ambitions.  We are
committed to supporting the ongoing training and development of our people. Placing individuals at the centre of their own learning and development represents the cornerstone of our Group culture. The Acergy Academy is instrumental in delivering a
wide range of development opportunities and has been a leader in our industry. Initially designed to help the development and career progression of our engineering discipline via functional and technical training, the long-term goal of the Academy
has always been to provide the same opportunities across all business functions within Acergy. |  | During 2009, we have focused on a number of initiatives, including:   Extending our Acergy Academy development
programmes to cover all employees, wherever they live and work. In addition to developing skills within a field of expertise it provides our people with the ability to broaden their individual skill base and to enable greater career opportunities
throughout the business.   Continued investment in our current managers and leaders to help them become better managers and leaders so that they can help others to fulfil their potential.   Ongoing development of key talent at all
levels, including the identification, development and retention of todays management, as well as an emphasis on our young talent, creating the leaders of the future in respect of leadership in both management and technical
expertise.   Succession planning
to ensure all key roles have identified successors ready to step into roles and facilitate a smooth transition and to support our vision to become the acknowledged leader in our field.  People are central to our success, providing opportunities for our people to develop their
capabilities and to achieve their potential, while ensuring they remain healthy, fit and secure, whether at home or at work, wherever they may be in the world, means we are well placed to meet with enthusiasm the challenges of the future.
 Innovation Every day, Acergy utilises advanced technologies in some of the worlds harshest environments. We depend on human innovation and endeavour to succeed. We encourage our people to think deeper about learning and
development and to work across multi-disciplines to deliver and exceed our clients expectations.  The development of a new type of radius controller is one example of strong technical innovation. The laying of static umbilicals sometimes required the handling of large in-line transitions joints. The
installation is always a delicate operation, requiring careful co-ordination to limit the loss experienced by the umbilicals transition joints. It is an operation that previously required the co-ordination of two cranes, each working
independently to take the strain while loading the umbilical on to a vessel. Failure to support effectively the weight of the umbilical has the potential to overload and damage the product.  Through the work of a multi-disciplinary team of engineers a new type of radius controller has
been developed. Three detailed design concepts were considered for evaluation. After considering each potential solution, evaluating each designs effectiveness, stability and ease of access one design concept was selected for future
development. The proposed solution immediately removed the need for one of the cranes, simplifying the operation and vastly reducing the risks involved. The design was fitted aboard Acergy Eagle in 2009. The new adjustable radius controller, which
can handle products up to 300 Kg/m, immediately produced exceptional operational results. The transfer of the umbilical transition joint over the tensioner tower during installation was regarded as the most complex element of the StatoilHydro Gjoa
Project. The use of the new radius controller more than halved the operational time required and ensured the operation was performed in a safe manner. |  | LOGO

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|Operating safely across the
business   At Acergy achieving excellence in safety and health in the workplace is a core value. Safety remains at the heart of all our operations and we are committed to achieving our safety vision: an incident free Acergy
workplace everyday, everywhere:   Nobody hurt  No damage to the environment  No damage to the property, vessels or equipment  
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  (a)  The Days
Away From Work Cases (DAFWC) frequency rate is calculated as Number of DAFWC multiplied by 200,000, divided by Number of Manhours. |  | To achieve this vision, all employees and contractors must accept responsibility and accountability for safe performance on the job. Effective
safety, health and environmental leadership behaviours are essential and a key component of our management behaviours. The Groups Health, Safety, Environment and Quality (HSEQ) Director is a member of the Corporate Management Team and reports
directly to the Chief Executive Officer. In addition, the HSEQ Director reports regularly to the Audit Committee to provide assurance on HSEQ activities.  As Acergy operates worldwide and our people continue to move around the globe, our HSEQ needs to look and feel the same everywhere whilst meeting local regulations.
This requires everyone to adhere to our safety visions and to share consistent HSEQ expectations and to be committed to ensure that we only do things one way, the safe way, with the confidence that any one of us can stop the job if they are unsure
or feel unsafe. This will help us to achieve our vision of an incident free Acergy workplace everyday, everywhere.  Through our Management System we have established a framework for setting and reviewing HSEQ and security objectives for the Group. Our HSEQ and security philosophy is based on the international standards of ISO
9001:2000 for Quality, OHSAS 18001 for occupational health and safety, ISO 14001 for environmental management and international best practice and standards for security. This is supported by management commitment, personal accountability, training,
fairness, and performance measurement, through which, work processes are clearly described, risks are identified and mitigated, critical procedures are developed, and workforce responsibilities are defined. Accordingly, we are committed to
preventing injuries, damage to the environment and damage to or loss of property or equipment.  The Management System also provides the necessary instructions, procedures and guidelines encompassing all areas of the Groups operations to assure the quality of our services to clients. The Group maintains
a stringent quality assurance programme throughout our organisation in accordance with ISO 9001:2000, an international standard established by the International Organisation for Standardisation to certify quality assurance systems.  The Group introduced the Total Acergy Quality Leadership (TAQL) initiative to further drive the
total quality management process across our organisation. Each of our segments has dedicated professional health, safety, environment and quality assurance staff, who are responsible for overseeing and supporting the projects in that particular
segment.  However, our commitment is all encompassing. Everyone working at Acergy
has a duty to comply with and to embrace the following principles, to which management is fully committed:   Uphold HSEQ and security as a core business value of the Group to achieve the elimination of unsafe actions and
conditions.   Communicate to our
people that anyone who observes an action or condition that is unsafe has a right and duty to intervene and stop the operation, and that this action will be supported by management.   Foster a positive and progressive HSEQ and
security culture throughout our organisation ensuring that all our people, whether employed directly by us or working on our behalf, work responsibly to meet our HSEQ and security standards whilst complying with the applicable laws, regulations and
good industry practices in each country of operation. |  | 





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| Provide the resources, training and development to ensure that work is carried out safely,
professionally and with full consideration for environmental protection.   Identify hazards and assess risks so that we actively manage our operations safely.   Investigate all events where injuries, damage to property or harm to the environment has occurred or could have
occurred. Furthermore, we will learn from such events to prevent them recurring in the future and operate a just system of accountability when dealing with HSEQ and security infringements.  Actions taken during 2009 We were disappointed that our HSEQ results in 2008 did not support our safety vision. We had not created, on a sustained basis, the safe environment we desire on every worksite. We remain committed to ensuring
nobody gets hurt. We continuously work to improve the safety and health of our employees and contractors.  The results of an extensive offshore study aboard our vessels deployed in West Africa highlighted an invaluable lesson. The most significant causes of incidents and injuries are directly connected to certain human
behaviours that put people at risk. The study identified 84 behaviours, 16 of which were the critical at risk behaviours which directly contributed to the incidents. The top five at risk behaviours accounted for nearly two
thirds of our injuries. By eliminating those top five behaviours we could prevent over 60% of our recorded injuries.  Significant time and focus was invested during 2009 to improve our performance and to achieve a sustainable improvement. As a result of this focus on critical at risk behaviours, and evident diligence on the
vessels involved in the survey, we achieved no recordable injuries during the year-long campaign in West Africa, involving seven large construction and survey ships. The lessons learned were applied across the Group and helped to drive an improved
recordable injuries performance in 2009 extending this awareness throughout our fleet, yards and work sites to further improving our safety performance.  Fiscal year 2009 saw a continued intense operational focus, including the offshore completion of a number of major projects. With this has been a considerable effort
with respect to HSEQ. The impact of our continued focus on HSEQ, including our focus on critical at risk behaviours can be seen in our results for 2009. |  | Improved safety performance in 2009 During
fiscal year 2009, 18 million manhours were worked, our Days Away From Work Cases (DAFWC) frequency rate was 0.10, a 40% improvement compared to 0.17 in 2008 and was in line with our Group target of <0.1. During the same period, our Total
Recordable Injuries Rate (TRIR) fell nearly 30%. In December 2009 we saw the achievement of a significant milestone, for the calendar month, we achieved our safety vision of no harm. Including December, our results improved further
reflecting an improvement of 60% and 40% for DAFWCs and TRIR respectively. Furthermore, the number of management HSEQ visits conducted increased and the number of safety observation cards completed increased to an all-time high.  During 2009, the crew of the Acergy Harrierwas recognised for its exemplary safety
record, receiving a commemorative plaque from client Petrobras for remaining 1,600 days without recording a single DAFWC. The milestone is especially significant considering the nature of the vessels deepwater diving operations and the total
number of crew onboard conducting round the clock operations.  Operating in
challenging environments All of our projects are undertaken in remote and hostile environments, which present their own set of challenges and risks.
A key task for our Project Managers is always to evaluate the risks involved at every stage of the project lifecycle, and take steps to eliminate or mitigate them as far as possible. Undesired events, always highly regrettable in themselves, can
also have a negative impact on the progress of any project. Our track record in anticipating and managing all types of risk is one of the reasons why Acergys projects typically run on schedule and within budget. Our clients can depend on us to
take care of health, safety, security and environmental considerations and risk management. Wherever in the world we operate, our projects always aim to meet or exceed any applicable risk management and safety legislation.  We remain focused on getting the HSEQ basics right, on investing in our people to enable them to
fulfil their potential, and in achieving this in keeping with our core values to be building for the future. Working in accordance with our principles we will create a culture that holds at its heart the critical values of HSEQ and security and
delivers improved business performance on a continuous basis. We aim to push back the boundaries of seabed-to-surface development and construction, but always in safe and sustainable ways. | 



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|Managing our environmental impacts  As a company with a long-term focus we work to ensure that the benefits from our projects are
sustainable over time. Throughout the life cycle of our projects and our presence we seek to support and enhance the communities in which we operate.  We strive to respect the principles of sustainable development as much as possible in our own business activities. Globally aware, locally sensitive is a strong ethos
within Acergys operations and underlines the importance of local expertise and innovation in deepwater subsea fabrication, while ensuring compliance with national regulations. |  | LOGO
  Environmental Performance We are committed to conducting business throughout the world in a manner that protects and reduces our impact on the environment. We integrate environmental
improvement into our business plans and strategies, and address key environmental issues that are specific to the processes and activities of each business. We conduct business in accordance with a well-defined set of processes, which comply with
the International Management Code for the Safe Operation of Ships and for Pollution Prevention and ISO 14001 for environmental management, through which we effectively manage our environmental aspects and limit the damage to or loss of property and
equipment.  Our commitment to operating in an environmentally sustainable manner is
anchored in our environmental approach, whereby we promote the Positive Attitude, Caring for the Environment (PACE) by associating our business with environmental improvement and commitment. Our policy emphasises individual responsibility, fosters
appropriate operating practices and training, and requires our ships, yards and work sites to be designed, operated and managed with the goal of preventing incidents, and controlling emissions and waste to within acceptable levels. This is not only
core to our commitment to environmental responsibility, but will also help us to reduce operating costs, improve safety and reduce our impact on the environment.  Recent additions to the fleet, including Skandi Acergy and Acergy Viking, both delivered in 2008, carry the CLEAN-DESIGN notation. This
notation stipulates requirements for controlling and limiting operational emissions and discharges. These requirements cover the most important environmental aspects, including: fuel tanks protection from grounding damage, the handling of
sewage and garbage; ballast water; and fuel oil. As well as combustion machinery emissions (NOx and SOx), the use of refrigerants and Green Passport Inventory for recycling the ship. In addition, the CLEAN-DESIGN notation stipulates
defensive design, accident prevention and consequence limitation requirements, thus providing additional environmental protection. Furthermore, Acergy Borealis, our new state-of-the-art pipelay ship will also carry this notation upon
delivery.  As a global operator, we operate in a number of environmentally sensitive
parts of the world. Wherever we operate, we meet local regulations for environmental performance, and where there are no local regulations we seek to operate to standards that we believe are protective of the environment. Our HSE advisors are
trained to develop environmental management programmes and awareness training for each project. We are looking to improve our own economic and environmental performance, by doing no harm and reducing the environmental impact of our
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|Our environmental initiatives during 2009 included:   The commencement of detailed collection and collation of environmental data across the entire Acergy
fleet.   Seeking ways to reduce
the consumption of fresh water and preserve water quality through efficient re-use.   Improving ship fuel consumption. 
 Effectively managing waste across the business.  In Aberdeen, Acergy has made a significant investment as part of our continuing commitment to
environmental improvement and sustainability. Our new offices in Westhill have the largest commercial ground source heating system in Scotland. The facility has been recognised as very good by the British Research Establishment
Environmental Assessment Method (BREEAM). Key elements which have been designed into the building, include a 98 bore hole ground source heating systems to reduce carbon emissions by one-third, a rainwater capture system to significantly reduce the
buildings water consumption, as well as measures to improved biodiversity of the building and its surrounding area.  Safe and Healthy We believe that a successful business relies on a healthy workforce and we take seriously
those health issues that impact our workforce whether work-related or not.  To
improve the health of our people we have throughout the business adopted PATH, Positive Attitude to Health, through which we seek to reduce illness and sickness absence. We actively manage our approach to ensuring that our workforce is
healthy. During 2009, we continue to assess the health risks facing our people and to provide ongoing advice to our people in order to mitigate these risks. One noticeable health concern, during the year, was the worldwide swine flu pandemic. A
thorough communication campaign provided necessary advice and support to our people worldwide. As a result there were no operational interruptions arising from this pandemic.  Further details on our approach to safety and our safety performance can be found on pages 38 to
39.  Community We have incorporated the practice of sustainable development into our way of doing business, including working to change our peoples attitudes and practices, acting socially responsibly in the communities in
which we work, working with our clients to minimise our consumption of non-renewable resources and working with local communities to help care for and improve their local environments.  Our people around the world actively support their local communities through many social and
charitable events during 2009. Two long standing programmes that the Group and our people have supported for are our Malaria Control Programme in Angola and the Hope Project in Brazil. |  | LOGO
 Malaria Control Programme (MCP) The MCP was established, under the guidance of Dr Jean-François Foucher, to help protect employees and their families. Education and the distribution of impregnated mosquito nets among our employees homes played a key role in the
programme, which combats malaria through awareness, mosquito bite prevention, anti-malaria medication and early diagnosis and treatment. The MCP which has been running successfully for many years and the work carried out by the local Sonamet team is
recognised by the Angolan authorities. Moreover, the World Health Organisation (WHO) includes details of the results of the programme in their publications which are sent to governments. The protection of the nets combined with an initiative to
limit mosquito-breeding areas has proved highly successful. Malaria cases among Sonamet staff are now rare. Furthermore the preventive action of the mosquito nets has a significant effect on neighbouring houses, which accounts for the now-proven
regression of the disease. This work in engineering Acergys MCP in Lobito, with the help of oil companies, has been recognised by the WHO and has achieved remarkable results in tackling the effects of malaria in Angola.  Hope project During 2009, Acergy SAM was recognised by the honoris causa, or honourable cause award at a recent awards ceremony, hosted by the Brazilian Sate of Pernambuco for its continued support of
the Hope Project, otherwise know as Projeto Esperanca.  The Hope project was first
established in 2000 to help support institutions in dire need of assistance and additional material and human resources. To date, more than 110,000 people across Brazil have directly benefited from the Projects support. In four years, the
Project has helped contribute more than 180 tonnes of food and 16,000 toys to the Pernambuco Solidarity Citizenship Action Committee.  Globally aware, locally sensitive is a strong ethos that sits at the very heart of Acergy, worldwide. |  | LOGO



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                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               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|Managing Risks
and Uncertainties  Effective management of risk and opportunity is essential to the delivery of the
Groups vision, achievement of sustainable shareholder value and protection of its reputation. The Board acknowledges its responsibility for the Groups system of internal control and for reviewing its effectiveness. The Groups
system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable but not absolute assurance against material misstatement or loss.  Independent Assurance This key element of our governance framework is provided primarily by our internal Business Assurance Services division and also by external advisors.  Business Assurance provides assurance to the Board, the Audit Committee, the Chief Executive
Officer and the Management Team that effective and efficient internal control processes are in place to identify and manage business risk across the Group. In particular, Business Assurance assists management by carrying out independent appraisals
of the effectiveness of the internal control environment and makes recommendations for improvement, and supports the Groups business risk management policies.  Other external advisors have recently provided advice to the Board of Directors on issues related to Corporate Governance such as Board Effectiveness and insurance
cover.  The Independent Registered Public Accounting Firms report to
shareholders on the Financial Statements is set out on page 93.  Management-Based
Assurance The Management Team is responsible for monitoring, managing and, where possible, mitigating the various risks facing the business. These
activities fall into the following categories:  Market Risks   Market Intelligence Gathering   Dedicated Relationship Manager for each major client   Comprehensive Fleet Rejuvenation Programme   Cost Reduction Initiatives 
Strategic Risks   Analysis of Ownership vs. Lease of New Assets   Organisational
Restructuring   Use of Joint Ventures for Higher-risk Investments   Long-Term Scenario Planning |  | Operational Risks   Regular Reviews of Insurance Cover   Critical Asset Management Programme   Regular Supplier and
Sub-Contractor Audits   ISO 9001 Quality Compliance Audits  Financial Risks   Annual Financial Reporting Risk Self-Assessments   Annual Reviews of Uncertain Tax Positions   Financial Training and Development Programme   Regular Testing of Key Internal Controls  Compliance Risks   Whistleblower Hotline for All Employees   Annual Fraud Risk Self-Assessments   Published Code of Business Conduct   Anti-Corruption Compliance Committee  For a further discussion, refer to Risk Factors.  Commercial Assurance Marketing of our services is performed through our territories and regional offices, and most of our work is obtained through a competitive tendering process. When a target project is identified by our marketing
team, the decision to prepare and submit a competitive bid is taken by management in accordance with delegated authority limits. Cost estimates are prepared on the basis of a detailed standard costing analysis, and the selling price and contract
terms are based on our commercial standards and market conditions.  Formal review
process: Before the tender package is submitted to the client, it is subject to a disciplined review process. Tenders are first reviewed at the regional level where the technical, operational, legal and financial aspects of the proposal are
considered in detail. Completion of the regional review process requires the formal approval of the Vice-President of the region, followed by a detailed review by our corporate tender review board, which is composed of a cross-functional team of
senior level managers.    Tenders with values between $10 million and $60 million require approval from the Chief Operating Officer and Corporate Vice President for Business Development.   Tenders with values greater than $60 million require the further approval of the Chief Executive Officer.   Tenders in excess of $250 million require a further review and approval of the Board of
Directors.  Risk management: A formal risk assessment is performed for each project
for which we intend to submit a tender. The assessment consists of a legal risk assessment that compares the contractual terms and conditions of the proposed tender to our standard terms and conditions. The financial impact of any deviation from our
standard terms and conditions is quantified and a risk mitigation plan is proposed. In addition, an operational risk assessment is conducted that analyses factors such as the impact of weather, supplier delays, strikes, and other factors to quantify
the potential financial impact of such events.  Standardisation of approach: The
implementation of standard tendering policies has resulted in the information contained in tender review packages being uniform across the organisation, allowing the relative risks and benefits of tendering for various projects to be assessed. As
projects continue to increase in size and complexity, a larger proportion of tenders are reviewed centrally by corporate management and great |  | 







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Risk Framework



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|emphasis is placed on adherence to the standard contractual terms and
conditions. With these policies in place, a significant amount of management time is devoted to the tendering process and, given the costs associated with the tendering process, management is selective of the initiation of new tenders, focusing on
those tenders it believes it is well placed to win and which will deliver a positive financial return.  Variation orders: The Groups policy is not to undertake variations to work scope without prior agreement of scope, schedule and price. A tender board appointed to supervise each tender can decide whether or
not to deviate from this policy. It is customary that, where a variation to the project scope or specifications is required, execution of the project usually continues through to completion. Precise agreement with the client on the financial
responsibilities of all parties will be ongoing. These often give rise to claims and variation orders, which will be negotiated with the client during the ordinary course of the project, although settlement may follow the completion of the offshore
activities.  Internal Controls The Board acknowledges its responsibility for the Groups system of internal control and for reviewing its effectiveness. The Groups system of internal
control is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable but not absolute assurance against material misstatement or loss.  The Group carried out an evaluation under the supervision, and with the participation of
management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of disclosure controls and procedures as at November 30, 2009.  The Groups management, using the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission in Internal Control  Integrated Framework, believes that as of November 30, 2009 the Groups internal control over financial reporting was effective. |  | Managements Report on Internal Control over Financial Reporting, as
well as an attestation Report from our Independent Registered Public Accounting Firm is part of our Annual Report on Form 20-F for fiscal year 2009, which will be filed with the SEC see Cross reference table on page 178. We intend to
maintain our focus on improving the control environment within the business and we consider it to be a key pillar contributing to an appropriate financial strategy.  As of November 30, 2009 no material weaknesses had been identified. For ongoing monitoring of the progress of Sarbanes-Oxley compliance project, regular Sarbanes-Oxley
Steering Committee meetings are held. Members of the Steering Committee include the Chief Financial Officer, the Group Financial Controller and the Head of Compliance. In addition, representatives from our Independent Public Accountant are invited
to attend certain meetings.  There has been no change in our internal control over
financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.  The Board derives further assurance from the reports from the Audit Committee, which has been
delegated responsibility to review the effectiveness of the internal financial control systems implemented by management and is assisted by Business Assurance.  Risk Factors The following factors and the other information
contained in this Report should be carefully considered. The following is a summary of the risks that may affect some or all of our activities and which may affect the value of an investment in our securities. If any of the events described below
occurs, our business, financial condition or results of operations could be materially adversely affected. This summary is not exhaustive. Additional risks and uncertainties that the Group is unaware of or that the Group currently deems immaterial
may in the future have a material adverse effect on the Groups business, results of operations and financial condition. | 





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Business
Review:

Risk continued



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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          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|Market Risks Our business is affected by
expenditures by participants in he oil and gas industry. Demand for our services depends on expenditures by participants in the oil and gas industry and particularly on capital expenditure budgets of the companies engaged in the exploration, development and production of
offshore oil and gas. Should a major international or national oil and gas company significantly scale back its project expenditure programme, or delay, change the scope of, or cancel projects already included in our backlog, this may have adverse
effects on our revenue and profits. Offshore oil and gas field capital expenditures are also influenced by many other factors beyond our control,
including:  prices of oil and gas and
anticipated changes in world oil and gas demand; the discovery rate of new offshore oil and gas reserves; the economic feasibility of developing particular offshore oil and gas fields; the production from existing producing oil and gas fields; political and economic conditions in areas where offshore oil and gas exploration and development may occur;
governmental regulations regarding environmental protection and the oil and gas industry generally, including
policies regarding the exploration for, pricing and production and development of their oil and gas reserves; and the ability of oil and gas companies to access or generate capital and the cost of such capital.  We face competition both for contracts and for resources. Contracts for our services are generally awarded on a
competitive bid basis, and although clients may consider, among other things, the availability and capability of equipment and the reputation and experience of the contractor, price is a primary factor in determining which contractor is awarded a
contract. Intense competition could result in pricing pressures, lower sales and reduced margins that would have an adverse affect on our operating results, cash flows and financial condition.  We may experience constraints in our supply chain due to future increases in expenditure by our
clients in the industry which could lead to increased competition for resources, such as raw materials, equipment and skilled workers. Such supply chain bottlenecks could negatively affect our results of operations. Additionally, if we are unable to
attract and retain skilled workers in a competitive environment, our business will be adversely affected. Additional Information  Competition.  We depend on certain significant clients and long-term contracts. The loss of any one or more of our significant clients, or a failure to replace significant long-term projects on similar terms, or a substantial decrease in demand by our significant clients, could result in a substantial loss of revenue
which could have a material adverse effect on our business. Financial Review  Business Segments results and Additional Information  Clients provide summaries of our largest contracts and largest
clients.  Strategic Risks Our international operations expose us to political, social and economic instability in the developing countries in which we operate and other risks inherent in
international business. Many of our operations are performed in emerging markets such as Angola, Nigeria, and Brazil. Operations in these emerging
markets present risks including:  economic and political instability; increased risk of fraud and political
corruption; boycotts and embargoes that may be imposed by the international community; |  | requirements to use local suppliers or subcontractors; disruptions due to civil war, terrorist activities, piracy, labour unrest, election outcomes, shortage of commodities,
power interruptions or inflation; the imposition of adverse tax policies; and exchange controls and other restrictions by foreign governments.  Such events could cause cost overruns on projects for which we are not reimbursed. Additionally,
these factors could delay the completion of projects resulting in contractual penalties and the unavailability of assets that are needed elsewhere. Political or social instability could also reduce growth opportunities for our business.
 We are exposed to substantial hazards, risks and delays for which liabilities may
potentially exceed our insurance coverage and contractual indemnity provisions. Our operations could result in injury or death to personnel or third
parties, damage to or loss of property. A successful liability claim for which we are underinsured or uninsured could have a material adverse effect on us. Additionally, such events could cause the suspension of our operations on a particular
projects, delays and costs overruns.  We generally seek to obtain indemnity
agreements from our clients requiring them to hold us harmless in the event of damage to existing facilities, loss of production or liability for pollution. Such contractual indemnification, however, does not generally cover liability resulting from
the gross negligence or wilful misconduct of, or violation of law by, our employees or subcontractors. Additionally, if the client cannot satisfy its obligation, we could suffer losses.  We must continuously improve our technology and equipment to compete for business and avoid
asset write-downs. Our clients are seeking to develop oil and gas fields in increasingly deeper waters and more challenging offshore environments. To
meet our clients needs, we must continuously develop new, and update existing technology for the installation, repair and maintenance of offshore structures. If we do not, we may not be able to meet our clients requirements and compete
effectively for projects. In addition, rapid and frequent technology and market demand changes can render existing technologies obsolete, requiring substantial new capital expenditures and write-downs of our assets. Any failure by us to anticipate
or to respond adequately and timely to changing technology, market demands and client requirements could adversely affect our business and financial results.  Our international operations expose us to the risk of fluctuations in currency exchange rates. The revenue and costs of operations and financial position of many of our non-US subsidiaries are measured initially in the local currencies of countries in which those subsidiaries reside. That financial
information is then translated into US dollars (our reporting currency) at the applicable exchange rate.  The exchange rate between these currencies and the US dollar may fluctuate substantially, which could have a significant effect both from a translational and operational perspective on our reported consolidated
results of operations and financial position. For a discussion of our exposure to exchange rate fluctuations, see Note 37 Financial Instruments to the Consolidated Financial Statements.  We attempt to manage our foreign currency exchange exposure by using derivative instruments to
hedge revenue or expenditure that is not in the functional currency of a given subsidiary. However, we cannot eliminate such exposure and, therefore, currency exchange rate movements and volatility can have a material adverse impact on our financial
position.
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                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|Operational Risks We may experience
equipment or mechanical failures. We operate a scheduled maintenance programme in order to keep all assets in good working order, but despite this
breakdowns can and do occur. Such problems could increase costs, impair revenue and result in penalties for failure to meet project completion requirements.  Our results may fluctuate due to adverse weather conditions. A
substantial portion of our revenue from continuing operations is generated from work performed offshore West Africa and in the North Sea, where during certain periods of the year adverse weather conditions usually result in low levels of offshore
activity. During such periods of curtailed activity, we continue to incur operating expenses, but our revenue from operations is delayed or reduced.  Unexpected costs may adversely affect the amount we realise from lump-sum contracts. A significant proportion of our business is performed on a lump-sum or turnkey basis. Consequently, unexpected costs can reduce the profitability of a lump-sum or turnkey project if we are not contractually
entitled to compensation for the cost overrun. Unexpected costs can arise from equipment failures, subcontractor problems, unanticipated offshore conditions or price increases on necessary materials.  We employ the percentage-of-completion method of accounting, which relies on our ability to
develop reliable estimates of our progress toward completion. Unexpected costs could require us to take charges against income to reflect properly the level of completion of a project and to recognise loss-making projects immediately. This could
result in a reduction or elimination of previously reported contract revenues.  Unexpected costs and or delays in completingAcergy Borealis The completion of Acergy Borealis is covered by
several contracts. The construction and purchase contracts are managed by the Company. There can be no certainty that the construction of the ship will be completed on time and on budget.  Financial and Compliance Risks Our reputation and our ability to do business may be impaired by corrupt behaviour by any of our employees or agents or those of our affiliates. We and our affiliates, including our subsidiaries and joint ventures, operate in countries known to experience governmental and institutional corruption. While we are
committed to conducting business in a legal and ethical manner, there is a risk that our employees or agents or those of our affiliates may take actions that violate the law and could result in monetary penalties against us or our affiliates and
could damage our reputation and, therefore, our ability to do business.  We are
exposed to financial risk involving third parties. If one or more of our major banks or depositing counterparties becomes insolvent we could lose
access to agreed credit lines or lose our cash deposits.  If the consortium of banks
which provides our guarantee facilities is unable to continue to provide the current level of guarantee facilities, this would negatively impact our ability to bid for new contracts and could undermine our ability to fulfil existing contracts since
a large portion of available contracts require provision of bank guarantees.  We may
be liable to third parties for the failure of our joint venture partners to fulfil their obligations. |  | Our ability to service indebtedness and fund our operations depends on cash flows from our subsidiaries. As a holding company, our principal assets consist of our direct and indirect shareholdings in our subsidiaries. Accordingly, our ability to make required payments of
interest and principal on our indebtedness and funding of our operations is affected by the ability of our operating subsidiaries, our principal source of cash flow, to transfer available cash to us. The inter-company transfer of funds and
repatriation of profit or capital (by way of dividends, inter-company loans or otherwise) may be restricted or prohibited by legal requirements applicable to the respective subsidiaries and their directors, especially in the event that our liquidity
or financial position is uncertain. In addition, such repatriation of profits, capital or funds could be subject to tax at various levels within our corporate structure and, depending on where tax is payable, our effective rate may be adversely
affected.  Our tax liabilities could increase as a result of changes in the
Luxembourg tax regime. The Luxembourg Holding Company Law of 1929 provides exemption from Luxembourg corporate taxes on earnings (including
dividends, interest and royalties) in certain circumstances. This special tax status will terminate on December 31, 2010 and from January 1, 2011 we will become subject to Luxembourgs ordinary tax regime which may affect our tax
liabilities thereby increasing our tax liabilities.  We are evaluating corporate
structuring alternatives to maximise the efficiency of our corporate structure and holdings. However, there can be no guarantee that such alternatives will be as beneficial, or more beneficial from a tax perspective than our current corporate
structure. We may also not pursue any such alternatives.  Our tax liabilities
could increase as a result of adverse tax audits, enquiries or settlements. Due to our global operations, we routinely deal with complex transfer
pricing, permanent establishment and other similar international tax issues, as well as competing tax systems where tax treaties may not exist. In the ordinary course of events our operations are currently or will be subject to audit, enquiry and
possible re-assessment by different tax authorities.  We provide taxes for the
amounts that we consider becoming payable as a result of tax audits and for which a reasonable estimate may be made. The risk exists that adjustments will be required to our tax provisions in later years as and when these and other matters are
finalised with the appropriate tax authorities.  Our operations in various countries
are currently subject to enquiries, audits and disputes including operations in France, UK, Nigeria and Congo. Further information about these issues, including a list of countries where we are currently subject to enquiries, audits and disputes, is
provided in Note 12 Taxation to the Consolidated Financial Statements.  Our Articles of Incorporation impose restrictions on the ownership of our shares. Our Articles of Incorporation provide that in
recognition of the fact that certain shareholdings may threaten us with imminent and grave damage (as defined in our Articles of Incorporation), which term we understand is likely to include adverse tax consequences, a hostile takeover
attempt or adverse governmental sanctions, (i) no US Person (as defined in our Articles of Incorporation) shall own, directly or indirectly, more than 9.9% of our outstanding shares, and (ii) all shareholders of any single country may not own,
directly or indirectly, more than 49.9% of our outstanding shares. |  | LOGO





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Governance:

Board of Directors

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|Sir Peter Mason KBE 1946 Independent Chairman Appointment: Sir Peter Mason has served as an Independent Non-executive Director since October 2006
and was appointed Chairman of the Board in May 2009.  Committee membership:
Sir Peter is Chairman of the Governance and Nomination Committee and a member of the Audit Committee.  Skills and experience: He brings extensive management and oil service experience, having served as Chief Executive of AMEC from 1996 until his retirement in September 2006. Prior management positions include
Executive Director of BICC plc and Chairman and Chief Executive of Balfour Beatty. Sir Peter was appointed as Chairman of the Board of Thames Water Utilities Ltd in December 2006 and has also been a Non-executive Director of BAE Systems since
January 2003. He was also, until October 2008, a Board Member of the 2012 Olympic Delivery Authority. He is a Fellow of the Institute of Civil Engineers and holds a Bachelor of Sciences degree in Engineering. Sir Peter is a British
citizen.  External appointments: Chairman of the Board of Thames Water
Utilities Ltd and a Non-executive Director of BAE Systems PLC. |  | Tom Ehret 1952 Independent Deputy
Chairman Appointment: Mr. Ehret was appointed to the Board in November 2003, and served in the position of Chief Executive Officer of the
Company from March 2003 until his retirement in April 2008. He continued as an Executive Board Member until June 2008 at which time he became a Non-executive Director. 
Committee membership: Chairman of the Compensation Committee and a member of the Governance and Nomination Committee.  Skills and experience: Before joining Acergy in 2003, Mr. Ehret was Vice Chairman of the
Management Board of Technip and President of its Offshore Branch. With more than 30 years experience in the offshore and subsea business, he was instrumental in several industry shaping moves. These included the turnaround of the loss making Stena
Offshore, the 1989 acquisition of Sante Fes pipelay business by Stena Offshore, the 1995 merger between Stena Offshore and Coflexip and he negotiated the acquisition of this group by Technip in 2002. Mr. Ehret has worked in all major
disciplines, both technical and commercial. Mr. Ehret is a French citizen.  External appointments: Mr. Ehret is Chairman of Viking Moorings Ltd, Deputy Chairman of Dockwise Ltd, a non-executive Director of Green Holdings Corporation and a member of the supervisory board of SBM
Offshore N.V. |  | Jean Cahuzac 1954 Chief Executive
Officer Appointment: Mr. Cahuzac joined Acergy as Chief Executive Officer in April 2008 and joined the Board as an Executive Director
following the 2008 AGM in May 2008.  Skills and experience: Prior to joining
Acergy, he gained over 29 years experience in the offshore oil and gas industry, having held various technical and senior management positions around the world. From 2000 until April 2008 Mr. Cahuzac worked at Transocean in Houston, USA where he
held the positions of Chief Operating Officer and then President, prior to the merger with Global SantaFe. Prior to this he worked at Schlumberger from 1979 to 2000 where he served in various positions including Field Engineer, Division Manager, VP
Engineering and Shipyards Manager, Executive VP and President. He is a Fellow and Director of the International Association of Drilling Contractors and a Fellow of the Society of Petroleum Engineers. He holds a Masters degree in Mechanical
Engineering from École des Mines de St Etienne and is a graduate of the French Petroleum Institute in Paris. Mr. Cahuzac is a French citizen. |  | Dr. Thorleif Enger 1943 Independent
Non-executive Director Appointment: Dr. Enger was appointed to the Board as an Independent Non-executive Director at the 2009 AGM in May 2009.  Committee membership: He is a member of the Governance and Nomination Committee and the Compensation Committee.  Skills and experience: Dr. Enger has a PhD in Structural Engineering from the University
of Colorado, USA. He has over 30 years of experience in the oil and gas industry. Dr. Enger is the former President and Chief Executive Officer of Yara International. He previously served as Executive Vice President of Hydro Agri from 1999 to 2004,
Executive Vice President of Oil and Energy for Norsk Hydro from 1996 to 1999, and President of Hydros Exploration and Production Division from 1987 to 1996. He was the Chairman of Telenor ASA from 2003 until 2007. Dr. Enger is a Norwegian
citizen.  External appointments: Dr. Enger is a Board member of FMC
Technologies Inc., Marine Harvest ASA and Spring Energy Norway AS, and serves on the supervisory board of E.ON Ruhrgas AG.







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|Dod A. Fraser 1950 Independent Non-executive Director Appointment:Mr. Fraser was appointed to the Board as an Independent Non-executive Director at the 2009 EGM in December
2009.  Committee membership: He is a member of the Compensation Committee.  Skills and experience: Mr. Fraser is President of Sackett Partners
Incorporated, a consulting company, and a member of corporate boards. Mr. Fraser has 27 years experience as an investment banker providing strategic advisory and corporate finance services to natural resource companies. Mr. Fraser served
as a Managing Director and Group Executive, leading the global oil and gas group with Chase Manhattan Bank, now JP Morgan Chase, from 1995 until 2000, and until 1995 he was a General Partner of Lazard Freres & Co. Mr. Fraser has been a
trustee of Resources for the Future, a Washington- based, environmental policy think-tank. He is a graduate of Princeton University. Mr. Fraser is a U.S. citizen. 
External appointments: Mr. Fraser is a Board member of Smith International, Inc., an oilfield service company; Forest Oil Corporation, an independent
oil and gas company; and Terra Industries, Inc., a nitrogen-based fertilizer company. Mr. Fraser serves as Chairman of the Audit Committees of Smith and Forest and the Compensation Committee of Terra. He is also a member of the National
Advisory Board of Outward Bound. |  | J. Frithjof Skouverøe 1944 Independent Non-executive DirectorAppointment: Mr. Skouverøe joined the Board as an Independent Non-executive Director in 1993.  Committee membership: He is a member of the Audit Committee.  Skills and experience: Mr. Skouverøe has been in the offshore business since 1976.
He was previously CEO of Stolt-Nielsen Seaway, a predecessor of the Company.  Mr.
Skouverøe is the active owner of a group of companies operating within industrial and financial investment activities in Norway. He is the longest serving Board member. He has successfully participated in the start-up of new ventures, in
projects for turning around and growing companies in a variety of industries throughout his career. He has an MBA from INSEAD and an MSc from the Technical University of Norway. Mr. Skouverøe is a Norwegian citizen.  External appointments: Mr. Skouverøe is the active owner and member of the Board of a
group companies operating within industrial and financial investment activities in Norway. He is also on the Board of Bolig Berlin AS, Bordeaux Vinhandel AS and Bergshav Product Tankers KS, all privately owned Norwegian limited
companies. |  | Trond Ø. Westlie 1961 Independent Non-executive Director
Appointment: Mr. Westlie has been an Independent Non-executive Director of the Company since June 2004.  Committee membership: He is Chairman of the Audit Committee.  Skills and experience: Mr. Westlie was appointed Group Chief Financial Officer of A.P. Moller-Maersk A/S on January 1, 2010, and is a member of their Executive Board. He was previously Executive Vice
President and Chief Financial Officer of the Telenor Group. He gained extensive experience in the oil and gas service sector as the Group Executive Vice President and Chief Financial Officer of Aker Kvaerner ASA from 2002 to 2004; and management
positions including Executive Vice President and Chief Financial Officer of Aker Maritime ASA from 2000 to 2002, and Executive Vice President, Business Development for Aker RGI ASA from 1998 to 2000. He qualified as a State Authorised Public Auditor
from Norges Handelshøyskole (the Norwegian School of Economics and Business Administration) and has served on numerous corporate boards. Mr Westlie is a Norwegian citizen.  External appointments: Mr. Westlie is Group Chief Financial Officer of A.P. Moller-Maersk
A/S and is a member of their Executive Board. He is also a Board member of Mesta Konsern ASA. | 

All Directors of the Board were elected at the Annual General Meeting of Shareholders on
May 22, 2009, except as otherwise noted. The Board of Directors of Acergy S.A. comprises the persons listed above:

Under the terms of our Articles
of Incorporation, our Directors may be elected for terms of up to six years and serve until their successors are elected. It has been our practice to elect directors for one-year terms. The terms of all of our directors will expire on the date of
our next Annual General Meeting of Shareholders, scheduled for May 28, 2010. Under our Articles of Incorporation, the Board of Directors must consist of not fewer than three directors. Candidates for election as director can only be nominated
by either an individual sitting director, or by the sitting Board of Directors. Elections are by shareholder vote.







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Governance:

Corporate Management Team



|                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Jean Cahuzac 1954 Chief Executive
Officer Appointment: Jean Cahuzac joined Acergy as Chief Executive Officer of the Company in April 2008 and joined the Board as an Executive
Director following the 2008 AGM in May 2008.  Mr. Cahuzacs full biography
is included under Board of Directors on page 48. |  | Simon Crowe 1967 Chief Financial Officer Appointment: Simon Crowe joined Acergy in October 2009 as Chief Financial Officer.  Skills and experience: Prior to joining Acergy, Mr. Crowe held senior financial, strategic
and corporate finance positions across a range of industries, including several international energy companies, having worked in a number of locations around the world including London, Geneva, Houston, Paris and Singapore.  His most recent roles prior to joining Acergy were at Transocean as Vice President, Strategy and
Planning, & Finance Director of Transoceans Europe & Africa Business. He holds a degree in Physics from Liverpool University and is a member of the Chartered Institute of Management Accountants in the U.K. Mr. Crowe is a British
citizen and lives in England, U.K. |  | Bruno Chabas 1964 Chief Operating
Officer Appointment: Bruno Chabas was appointed as Acergys Chief Operating Officer in October 2002, with responsibility for all the
day-to-day commercial and operational activity of the five segments. In October 2008, his scope was extended to include Marine Assets, Operations and Supply Chain Management.  Skills and experience: Since joining the Group in 1992 Mr. Chabas has held various
positions in the U.K., France and the U.S., including Chief Financial Officer. He has seen the Groups rapid growth from the inside, having lived through all the major acquisitions. He holds an MA in Economics from the University of Science at
Aix-en-Provence and an MBA from Babson College in Massachusetts. Mr. Chabas is a French citizen and lives in England, U.K.



|                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
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|                                                                                                                                                                                                                                                                                                 |  | Allen Leatt 1954 Chief
Technology Officer & Corporate VP Engineering Appointment: Allen Leatt joined Acergys Corporate Management Team in September 2003 as
CTO.  Skills and experience: Mr. Leatt has been responsible for various parts
of the business over the last six years. Presently he is responsible for the engineering function within Acergy, including corporate technology development. Mr. Leatt began his career in marine civil engineering with John Laing Construction for five
years, and then spent six years at SubSea Offshore (now Subsea7) as a Project Engineer and Project Manager. He joined Technip S.A. in 1988, where he held a number of management and executive positions, ultimately as Executive Vice President for the
SURF Product Line, before joining Acergy. He holds a degree in Civil Engineering, is a chartered civil engineer in the U.K. and holds a MBA from Cranfield University. Mr. Leatt is a British citizen and lives in London, U.K. |  | Øyvind Mikaelsen 1963 Senior VP Territory 1 and Regional VP Northern Europe And Canada Appointment: Øyvind Mikaelsen was appointed Senior VP
Territory 1 in July 2009, incorporating Acergy AME with his existing responsibilities for Acergy NEC which he has held since 2003.  Skills and experience: Mr. Mikaelsen began his career as a Contracts Coordinator with Kvaerner Rosenberg A/S from 1990 to 1992 and a Cost and Contracts Engineer
with Norske Shell from 1988 to 1990. He joined the predecessor to Acergy in 1992 and has held a variety of positions, including contracts administration, project management and sales and marketing. In 2001, he was appointed VP Subsea Construction
product line, based in Aberdeen, a position he held until his present appointment. He is a Board Director of the OLF, the Norwegian Oil Industry Association. He holds a Master of Science degree from the University of Trondheim in Norway. Mr.
Mikaelsen is a Norwegian citizen and lives in Stavanger, Norway.
|Acergy S.A. is a Luxembourg holding company and does not have officers as such. The following are persons employed by our subsidiaries who currently perform the indicated executive
functions for our combined businesses, who are referred to as our Corporate Management Team in this Report. |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              







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|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |     
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|Olivier Carré 1952 Senior VP Territory 2 and Regional VP
Africa And Mediterranean Appointment: Olivier Carré was appointed Senior VP Territory 2 in July 2009, incorporating Acergy
NAMEX and Acergy SAM with his existing responsibilities for Acergy AFMED, which he has held since March 2007.  Skills and experience: Mr. Carré started his career as an engineer with a civil engineering company. He joined the Group in 1981 as project engineer and held a number of positions in projects and
operations, including that of Project Director on the Girassol SURF Project before being appointed Director for Projects and Operations in July 2003. He is a graduate of the Ecole Speciale des Travaux Publics. Mr. Carré is a French
citizen and lives in Paris, France. |  | Andrew Culwell 1951 Corporate VP Health, Safety, Environment &
Quality (HSEQ) Appointment: Andrew Culwell joined Acergys Corporate Management Team in October 2008 as Corporate VP HSEQ.  Skills and experience: Mr. Culwell has overall responsibility for HSEQ within the Group
and ensures alignment with all other operational activities around the segments. He has held a wide range of project and operational management roles, onshore and offshore, and has worked in the U.K., France, Netherlands, U.S., Brazil, Peru,
Australia, Angola and Ivory Coast, during his 36 years in the industry, 16 of which have been with Acergy. Mr. Culwell is a U.S. citizen and lives in London, U.K. |  | Jean-Luc Laloë 1951 Corporate VP M&A and Corporate
Development Appointment: Jean-Luc Laloë joined Acergys Corporate Management Team in May 2003, bringing with him over 25 years of
international experience in the offshore oil and gas construction industry.  Skills and experience: As Corporate VP M&A and Corporate Development, Mr. Laloë focuses on the long-term corporate development and evolution of the Group, together with the associated M&A strategic growth projects. Mr.
Laloë began his career as a naval architect. He has since held a wide variety of positions around the world with Stena Offshore, Coflexip, Coflexip Stena and latterly Technip S.A., including Executive Vice President, North America; Managing
Director, U.K.; Vice President Special Projects in Paris; Chief Financial Officer for Brazil; and Vice President Strategic Planning in Paris. He has a Masters degree in Aeronautical & Space Engineering. Mr. Laloë is a French citizen and
lives in London, U.K. | 
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
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|Mark Preece 1958 Corporate VP, Business Development &
Marketing Appointment: Mark Preece joined Acergys Corporate Management Team in February 2004 as Corporate VP Business Development and
Marketing.  Skills and experience: Mr. Preece has extensive commercial,
operations management and business development experience gained both in the U.K. and internationally. Previously he was Managing Director with Bibby Line Ltd and with Stena Offshore, Coflexip Stena and Technip S.A. where he was Managing Director,
Canada and Caspian; Senior Vice President U.K. and International Business Development, and a Board Member of Genesis Oil and Gas. In his earlier offshore career he was a Ships Master and a Marine Superintendent. He is a Master Mariner with an
MBA from Henley Management College. Mr. Preece is a British citizen and lives in England, U.K. |  | Johan Rasmussen 1956 Corporate VP and General Counsel Appointment:Johan Rasmussen serves as Corporate Vice President and General Counsel. He joined the Group in 1988 as an in-house legal advisor and was promoted
to the position of General Counsel in March 1996.  Skills and experience:
Prior to joining Acergy, Mr. Rasmussen served with a subdivision of the Norwegian Ministry of Defense and as a Deputy Judge in the Haugesund District Court from 1986 to 1988. Mr. Rasmussen has a Law Degree from the University of Oslo in Norway, is a
Norwegian attorney-at-law and a member of the Norwegian Bar Association. Mr. Rasmussen is also our representative in the International Marine Contractors Association (IMCA) and currently serves as President of this Association. Mr.
Rasmussen is a Norwegian citizen and lives in Sandnes, Norway. |  | Keith Tipson 1958 Corporate VP Human Resources Appointment: Keith Tipson joined Acergys Corporate Management Team in November 2003 as Corporate VP Human Resources.  Skills and experience: Mr. Tipsons role within the Corporate Management Team is to
develop and implement the Group Human Resources strategy and develop the global Human Resources team. He has responsibility for resourcing, performance and reward, people development and internal communications. His previous experience in the
engineering project sector was with the Dowty Group and latterly with Alstom where he held the position of Senior Vice President Human Resources, Power Sector, based in Paris. He has a business degree from Thames Valley University, London and has
worked in Belgium, France, Switzerland and the U.K. Mr. Tipson is a British citizen and lives in London, U.K. |  | 





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Governance:

Corporate Governance

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|Strong governance
and strategic planning                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | LOGO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 
|Good corporate governance is more than just a statement of compliance. The Board is committed to achieving high corporate governance standards and
we believe that there is a link between high quality governance and the creation of shareholder value. The Board believes strongly that the observance of these standards is in the best interests of all of our stakeholders.  Corporate Governance at Acergy Acergys Board of Directors is responsible for and committed to the maintenance of high standards of corporate governance at all times throughout the
Group.  The Board is charged with ensuring that the Group conducts its business in
accordance with exacting standards of business practice worldwide and observes high ethical standards. The Group conducts its operations in challenging environments, which heightens the need for a robust culture of governance, and the role of the
Board is to monitor and safeguard this governance culture. The Board and its Committees oversee the management of the Groups operations, and report to shareholders on the effectiveness of Acergys controls.  The Group acknowledges the division of roles between shareholders, the Board and the Corporate
Management Team. The Company further ensures good governance is adopted by holding regular Board meetings at which the Corporate Management Team attend to present strategic, operational and financial matters.  Legal and regulatory framework Acergy S.A. is a Société Anonyme Holding organised in the Grand Duchy of Luxembourg under the Company Law of 1915, as amended and
incorporated in Luxembourg in 1993 as the holding company for all of our activities. |  | Our registered office is located at 412F, route dEsch, L-2086 Luxembourg and registered in the Companies Register of the Luxembourg
District Court under the designation R.C.S. Luxembourg B 43172. The Companys principal executive office is care of Acergy M.S. Limited, based in London. In this Report, the terms we, us, our,
Group, Company and Acergy refer to Acergy S.A. and, unless the context otherwise requires, its consolidated subsidiaries.  As a company incorporated in Luxembourg, and quoted on both the NASDAQ Global Select Market and the Oslo Børs, Acergy is subject to a number of different laws
and regulations with respect to corporate governance.  Acergy is subject to NASDAQ
Marketplace Rule 5600 establishing certain corporate governance requirements. Pursuant to Rule 5615(a)(3), as a foreign private issuer we may follow our home country corporate governance practices in lieu of the requirements of Rule 5600 provided
that we comply with certain mandatory sections of Rule 5600, make disclosure of those areas where our home country practice departs from NASDAQ requirements, and provide certification to NASDAQ that our corporate governance practices are not
prohibited by Luxembourg law. Further details can be found on page 165. As a company listed on the Oslo Børs, we seek to comply with certain aspects of Norwegian securities law where these do not contradict Luxembourg laws and regulations and
those of the NASDAQ Global Select Market and the U.S. Securities and Exchange Commission (SEC).  A key corporate governance activity undertaken by the Group concerns compliance with the provisions of Section 404 of the Sarbanes-Oxley Act of 2002, which is applicable to most companies listed on a U.S. national
securities exchange and enforced by the SEC.







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|Acergy |  | Annual Report and Financial Statements 2009



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Governance:

The Board





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |     
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|Board Members Sir Peter Mason KBE Chairman Tom Ehret Deputy Chairman Jean Cahuzac Chief Executive Officer Thorleif Enger Non-executive director Dod A. Fraser Non-executive director J. Frithjof Skouverøe Non-executive director Trond Ø. Westlie Non-executive director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | The Board of Directors is accountable for the proper stewardship of the Groups affairs, with the Non-executive Directors
having a particular responsibility for ensuring that strategies proposed for the development of the business are critically reviewed. This ensures that the Board of Directors acts in the best long-term interest of shareholders and takes account of
the wider community of interests represented by clients, employees and suppliers, as well as broader social, environmental and ethical interests.  Board relations with management The Board of Directors is
responsible for overall control of the Groups affairs. The Corporate Management Team is responsible for control and management of day-to-day business matters. The Board of Directors delegates day-to-day and business control matters to the
Chief Executive Officer who, with the Corporate Management Team, is responsible for implementing Group policy and monitoring the performance of the business.  The Corporate Management Team comprises the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Senior Vice Presidents of Territories 1 and 2
and the heads of all the key Group functions. Effective liaison between the Board of Directors and the Corporate Management Team is achieved through regular attendance by members of the Corporate Management Team at Board meetings, and the provision
of financial and operational updates by the Corporate Management Team to the Board of Directors.  Board balance The Board of Directors comprises a Non-executive Chairman, the Non-executive Deputy Chairman, the
Chief Executive Officer, and four further Non-executive Directors. Biographies of Board members, along with details of their committee memberships, are shown on pages 48 and 49.  The posts of Chairman and Chief Executive Officer are separate and their responsibilities are
clearly defined. The Chairman is responsible for the leadership of the Board, ensuring its effectiveness and independence from the Groups management. The Chief Executive Officer is responsible for implementing the strategy of the business,
within the authorities delegated to him by the Board.  The Chairman is supported by
the Deputy Chairman. The Non-executive Directors provide experience and knowledge gained in a variety of sectors, and constructively challenge managements proposals for the strategy and direction of the business. |  | LOGO
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|Board responsibilities The Board of Directors key responsibilities are:  to set values and standards and agree policies and processes which will be used to guide the affairs of the Group. This
includes the setting of clear principles of ethical conduct to apply to all activities undertaken by the Group;  to agree a business strategy for the Group which is reviewed and refreshed as necessary with a view to ensuring
relevance to the Groups market;  to ensure that an effective system of internal controls is in place at all times. Such a system is used to identify and manage risks that threaten the fulfilment of the Groups business objectives. This includes material failure
to perform in accordance with agreed business plans, non-compliance with law and regulation, fraud and material losses and failure to maintain appropriate accounting records; and  to ensure that it receives accurate and timely
information on the performance of the Group, and to agree with the Chief Executive Officer the nature and scope of the information to be provided.  Board purpose The Board of Directors is the principal
decision-making forum of the Group and exercises overall control of the Groups affairs. The Board of Directors is responsible for the Groups strategy, for the financial statements, for acquisitions and disposals, for treasury and risk
management policies, for the approval of major capital projects and for the maintenance of high standards of corporate governance. |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



The current
composition of the Board and its Committees is shown below:



|                      |  |                                |  |             |     |  |                |  |                                   |  |                        |  | 
|--------------------- |  | ------------------------------ |  | ----------- | --- |  | -------------- |  | --------------------------------- |  | ---------------------- |  | 
|Director              |  | Year ofappointmentto the Board |  | Independent |     |  | AuditCommittee |  | GovernanceandNomination Committee |  | Compensation Committee |  | 
|Sir Peter Mason KBE   |  | 2006                           |  | Yes         |     |  | Yes            |  | Chairman                          |  | No                     | 
|Tom Ehret             |  | 2003                           |  | Yes         | (a) |  | No             |  | Yes                               |  | Chairman               | 
|Jean Cahuzac          |  | 2008                           |  | No          |     |  | No             |  | No                                |  | No                     | 
|Thorleif Enger        |  | 2009                           |  | Yes         |     |  | No             |  | Yes                               |  | Yes                    | 
|Dod A. Fraser         |  | 2009                           |  | Yes         |     |  | No             |  | No                                |  | Yes                    | 
|J. Frithjof Skouverøe |  | 1993                           |  | Yes         |     |  | Yes            |  | No                                |  | No                     | 
|Trond Ø. Westlie      |  | 2004                           |  | Yes         |     |  | Chairman       |  | No                                |  | No                     | 



|(a) | Mr Ehret will not be considered an Independent Director for the purpose of the NASDAQ Marketplace Rules until July 1, 2011, three years after his retirement as
Chief Executive of the Group. However, he does meet the criteria for independence under Rule 10A-3 of the Exchange Act and is eligible for nomination to Board Committees under home country (Luxembourg) practice.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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54





Governance:

The Board continued



Mark Woolveridge, James B. Hurlock and George H. Doremus retired from the Board of Directors at the Annual General
Meeting on May 22, 2009, having served on the Board of Directors for sixteen, seven and five years respectively. Dr. Thorleif Enger was
appointed to the Board of Directors at the 2009 Annual General Meeting. Dod A. Fraser was appointed to the Board of Directors at the Extraordinary
General Meeting on December 17, 2009. The appointment of a new Independent Non-executive Director, Ron Henderson, will be put to shareholders for
approval at the Annual General Meeting on May 28, 2010. The Committee membership structure was reviewed in October 2009 by the Governance and
Nomination Committee, in order to refresh the Committees memberships and to ensure that the workload was shared appropriately between individual Directors. Directors training and induction Induction training is offered to all new Directors. The training is
tailored to the individual Directors requirements, but is designed to provide a comprehensive review of the Groups business and financial structure, and other areas relevant to the new Directors understanding of the Group. The
induction training involves meetings with members of the Corporate Management Team, and also includes site visits. Ongoing training is available to
Directors at all times. Directors have access to the advice of the Company Secretary and to external advisors, where appropriate. Directors
interests The interests of the Directors in the share capital of the Company as at February 17, 2010, being the last practicable date before
publication of the Annual Report, are set out below:  Director

Number of shares heldSir Peter Mason KBE

10,000Tom Ehret

112,694Jean Cahuzac

62,061Thorleif Enger

NilDod A. Fraser

NilJ. Frithjof Skouverøe

26,500Trond Ø. Westlie

NilTotal

211,255 Details
of share options held by Directors are shown in the Remuneration Report. As at February 17, 2010, the Directors of Acergy S.A. directly and
indirectly owned 211,255 common shares, representing 0.1% of all issued common shares.


Directors contracts Non-executive Directors contracts and the Companys Articles of Incorporation provide that each directors appointment will continue until the next Annual General Meeting, at which the Director will
be proposed for re-appointment. Thus, Directors appointments are effectively for one-year terms, which will expire next on the date of the 2010 Annual General Meeting, May 28, 2010. The Chief Executive Officer is an Executive Director, whose appointment to the Board of Directors will also continue until the next Annual General Meeting. As an
Executive Director, he also has a contract of employment with the Group. Directors indemnification Directors are indemnified under the Companys Articles of Incorporation against expenses reasonably incurred or paid by them in connection with claims, actions,
suits or proceedings in which they become involved by virtue of being a Director of the Company. No indemnification is provided, however, to Directors against any liability to the Company or its shareholders by reason of wilful misfeasance, gross
negligence or reckless disregard of their duties or where the Director is adjudicated to have acted in bad faith and not in the interests of the Company. How the Board operates Schedule of meetings The Board of Directors meets five times a year, with meetings scheduled around key reporting
dates in the Groups financial calendar, and all Directors are encouraged to attend all meetings wherever possible. Details of the Directors attendance at meetings of the Board of Directors and its committees, in person or via telephone
conference, during the fiscal year 2009 are shown below:  Board

AuditCommittee

GovernanceandNominationCommittee

CompensationCommittee2009 Meetings

5

5

1

3Mark Woolveridge(a)

2/2





Sir Peter Mason KBE

5/5

3/3

1/1

3/3Tom Ehret

5/5



1/1

3/3Jean Cahuzac

5/5





George H. Doremus(b)

2/2

2/2



2/2Thorleif Enger(c)

2/3





James B. Hurlock(d)

2/2

2/2



J. Frithjof Skouverøe

5/5

5/5

1/1

Trond Ø. Westlie

5/5

5/5



2/3  (a)
Retired May 22, 2009 (b)
Retired May 22, 2009 (c)
Appointed May 22, 2009 (d)
Retired May 22, 2009








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|Acergy |  | Annual Report and Financial Statements 2009



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55







|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Purpose of meetings The agendas of the
Board meetings are drawn up by the Chairman, on the recommendation of management.  Regular items at Board meetings include meetings of the Directors without any members of management present, and meetings of the Non-executive Directors with no Executive Directors present.  Administration of meetings The Company Secretary is responsible for the administration of Board meetings. This includes the drawing up of the schedule of Board meetings, so as to maximise Directors attendance, and the circulation of
Board papers in a timely manner to ensure sufficient opportunity for Directors to properly consider the matters being discussed. Meetings of the Board and its Committees are minuted in detail to ensure an accurate record is kept of decisions taken.  Board performance evaluation Evaluation of the performance of the Board and its Directors is undertaken on an annual basis.  In early 2009, Acergys Business Assurance function commissioned an external advisor to
review the operation of the Companys Board and Board Committees. This review encompassed the framework within which the Board operates, the functioning of the Board, and the attributes of the Board and its members. The review noted certain
positive elements of the way the Board operated, such as the quality of information provided by management to the Board, and identified areas in which there was scope for improvement.  Company Secretarial services The Company Secretary is responsible for advising the Board of Directors on all governance matters. The Directors have full access to the advice and services of the Company Secretary, who is also responsible to the
Board of Directors for ensuring that correct Board procedures are followed.  Shareholder Relations Contacts with major shareholders The Board of Directors seeks to encourage a positive dialogue with shareholders. The Chairman is available to discuss issues with shareholders and to address any shareholder concerns which may arise. The Deputy
Chairman is available to resolve any matters which cannot be dealt with through the normal channel of contact with the Chairman.  Information on Acergys Investor Relations programme is given in the Key investor information section on page 176. A list of major shareholders is
given in the Additional Information section on page 175. |  | General Meetings Constructive use of General Meetings All holders of American Depositary Receipts through Deutsche Bank Trust Company, our depository in
the United States, and all shareholders that are registered in VPS, the central depository of Oslo Børs, or other such depository, receive written notice of meetings, and may attend and vote at our general meetings. They have the right to
submit proposals and may vote either directly or by proxy.  The Board of Directors
is obliged to call a general meeting of shareholders within 30 days of receipt of a written demand from shareholders representing at least one-tenth of the issued and outstanding shares entitled to vote.  Annual General Meeting business The Companys Annual General Meeting is held in Luxembourg on the fourth Friday of May each year.  The Annual General Meeting elects the Board of Directors, approves the Annual Report and
Financial Statements of the Group and approves the appointment of the external auditors. Directors may be elected for terms of up to six years and serve until their successors are elected. It has been the Groups practice to elect Directors for
one-year terms. The term of all our Directors will expire on the date of the next Annual General Meeting on May 28, 2010.  Extraordinary General Meetings The Company held two
Extraordinary General Meetings during 2009. At an Extraordinary General Meeting on August 4, 2009, shareholder approval was granted to the Board of Directors to issue new shares and not to offer such shares to existing shareholders on a
pre-emptive basis, as proposed by the Board of Directors in the notice. Shareholder approval was also granted to the Board of Directors to cancel shares which had been bought back.  At a subsequent Extraordinary General Meeting on December 17, 2009, shareholder approval was
granted to the appointment of Dod A. Fraser as a Non-executive Director, and to the introduction of a new Long-Term Incentive Plan for senior management.  A further Extraordinary General Meeting was held on February 16, 2010, at which certain changes to the Articles of Incorporation were approved. Details of these
changes are given in Additional Information on page 166.  Dividends Dividend policy Acergys objective is to give shareholders a competitive return on their invested capital over time. The return is to be achieved through both an increase in the value of their shareholdings and through the payment of
dividends.  Final dividends are declared at the Annual General Meeting. Interim and
final dividends on common shares can be paid out of retained and current earnings, as well as paid in surplus after satisfaction of the legal reserve detailed below. In the case of interim dividends, the satisfaction of all legal requirements must
be certified by an independent auditor. |  | LOGO





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56







Governance: The Board continued Luxembourg law authorises the payment of stock dividends if sufficient surplus exists to pay for the par
value of the shares issued in connection with any stock dividend. Dividend details The Company paid a dividend of $0.22 per common share to shareholders on June 12, 2009 and to holders of American Depository Receipts on June 17, 2009. The Board of Directors has resolved to recommend to
shareholders the payment of a dividend for the fiscal year 2009 of $0.23 per common share. Ethics and Integrity Code of Business Conduct Acergy has adopted a Code of Business
Conduct applicable to all Directors, officers and employees, which also constitutes the Code of Ethics applicable to our Chief Executive Officer, Chief Financial Officer, Controller and persons performing similar functions, in accordance with the
Sarbanes-Oxley Act of 2002 and the applicable laws, rules and regulations of the SEC and the NASDAQ Global Select Market. The Groups Code of
Business Conduct requires any director or employee to declare if they hold any direct or indirect interest in any transaction entered into by the Group. Any transactions between the Group and members of the Board of Directors, Management Team or
close associates are detailed as related party transactions in Note 38 Related party transactions to the Consolidated Financial Statements. A copy of the Code of Business Conduct is available to download from the Groups website www.acergy-group.com (the contents of the website are not incorporated by reference). Board oversight of risk The Board of Directors acknowledges
its responsibility for the Groups system of internal control and for reviewing its effectiveness. Information on the Groups risk management
processes is given in the Managing Risks and Uncertainties section of the Business Review on page 42.










|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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57







Governance:

Board Committees

Audit Committee Report



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Committee Members  Trond Ø. Westlie (Chairman)  Sir Peter Mason KBE  J. Frithjof Skouverøe   Key
duties The Audit Committee has overall responsibility for overseeing the accounting and financial processes of the Group and is directly responsible
for the appointment, compensation, retention and oversight of the work of the Groups external auditor. In particular, the main duties of the Audit Committee are summarised as follows:   to approve the appointment and fees of the
Groups external auditor;   to oversee the work of the Groups external auditor and approve the scope of the audit;   to oversee the resolution of any disagreements between management and the Groups external
auditor;   to approve, in
advance, all non-audit services provided by the Groups external auditor;   to review the quarterly and annual financial statements before their approval by the Board, or the Chairman of the
Board of Directors, acting on its behalf;   to oversee all aspects of the work of the Groups Business Assurance function;   to continually review the effectiveness of internal control systems; and   to deal with complaints received directly or
via management, including information received confidentially and anonymously, in relation to accounting, financial reporting, internal controls and external audit issues.  A full copy of the Audit Committees Terms of Reference is available to download from the
Groups website www.acergy-group.com, the contents of which are not incorporated by reference.  The Committee is chaired by Trond Ø. Westlie who, as Chief Financial Officer of AP Moeller Maersk, and previously of Telenor Group, has recent and relevant financial experience. The Board of Directors has
determined that Trond Ø. Westlie is the Audit Committee financial expert. The other Audit Committee members are Sir Peter Mason KBE and Frithjof Skouverøe. The Audit Committees Terms of Reference require that the Committee shall
consist of not less than three Non-executive Directors, and that all three members of the Audit Committee are independent, Non-executive Directors. The Audit Committee meets at least four times a year, and its meetings are attended by
representatives of the external auditor, and by the head of the Business Assurance function. |  | Activities during 2009 During the year, the
Audit Committee:   reviewed the
2008 Annual Report and Form 20F and press release;   received reports from the external auditor on their audit work in relation to fiscal year 2008;   reviewed the results of internal audit reviews;   received reports from the Chief Financial
Officer on a quarterly basis on the Groups financial performance, including its joint ventures;   reviewed and approved the external auditors plan for 2009;   approved the external auditors fee for
2009;   reviewed and approved
external auditors fee for non-audit work;   reviewed the performance of the external auditor;   reviewed outstanding tax claims; and   met with the external auditors without management present. |  | LOGO





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Governance:

Board Committees continued

Governance and Nomination Committee Report



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Committee Members Sir Peter Mason KBE (Chairman) Tom Ehret Thorleif Enger                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Activities during 2009 Appointments/resignations during the year Following the retirements of Mark Woolveridge, James Hurlock and George Doremus in May 2009,
the Committee resolved to recruit additional Non-executive Directors. The Committee recommended the appointment of Thorleif Enger, a former President and CEO of Yara International, with over 30 years experience in the oil and gas industry. Dr
Enger was formally appointed at the Annual General Meeting in May 2009.  In July
2009, the Committee reviewed the composition of the Board of Directors and concluded that two new independent Non-executive Directors should be recruited. Two external search consultancies were retained to lead the search for appropriately qualified
and experienced candidates. In September 2009, Dod A. Fraser was identified as a suitable candidate, based on his extensive experience in investment banking with a particular emphasis on the oil and gas sector.  Subsequent to the year end Mr Fraser was invited to join the Board of Directors, and was
appointed at the Extraordinary General Meeting on December 17, 2009. In December 2009, Ron Henderson was identified as a suitable candidate because of his background as a finance director in the engineering sector. He is a chartered accountant,
and a former Group Finance Director of Network Rail and BICC plc (now Balfour Beatty). A proposal to appoint him will be put to shareholders for approval at the Annual General Meeting in May 28, 2010.  The Committee reviewed the composition of the Boards committees in October 2009 and
recommended a number of changes intended to refresh the committees memberships and to ensure that the workload was shared appropriately among individual Directors. The Board of Directors accepted these recommendations and the committee
memberships were revised with effect from December 1, 2009.
|Key duties The Governance and Nomination Committee assists the Board of Directors with respect to matters
relating to governance and succession. The main duties of the Governance and Nomination Committee are summarised below:  to establish, review and make recommendations to the Board of Directors regarding Board composition and structure and
review and evaluate the performance and effectiveness of the Board of Directors annually;  to review and make recommendations to the Board of Directors regarding the nature and duties of Board
committees;  to evaluate potential
candidates for election or re-election as Directors and for service on each Board committee;  to interview those candidates whom the Board of Directors decides are qualified candidates and make the final
recommendation to the Board of Directors as to whom the Board of Directors should propose for appointment as Directors;  to review from time to time the appropriate skills and characteristics required of Board members in the context of the
current make-up of the Board of Directors, including such factors as business experience, diversity, personal skills in technology, finance, marketing, international business, financial reporting and other areas that are expected to contribute to an
effective Board of Directors;  to
consider questions of possible conflicts of interest of Board members and senior executives;  to consider matters of corporate governance, and establish and review Corporate Governance Guidelines; and  to review the performance of the Chief Executive
Officer annually, and establish and review annually a plan for Chief Executive Officer succession.  A full copy of the Governance and Nomination Committees Terms of Reference is available to download from the Groups website www.acergy-group.com, the contents of the website are not incorporated by
reference. The Governance and Nomination Committee is chaired by Sir Peter Mason KBE. The other Governance and Nomination Committee members are Tom Ehret and Thorleif Enger. All three members of the Governance and Nomination Committee are
Independent Non-executive Directors. | 







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|Acergy |  | Annual Report and Financial Statements 2009



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59







Board Committees continued

Compensation Committee Report



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Committee Members  Tom Ehret (Chairman)  Thorleif Enger  Dod A. Fraser                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Activities during 2009 During
the year, the Compensation Committee:   reviewed the performance and bonus for the Chief Executive Officer for 2008 and made a recommendation to the Board of Directors based on its findings;   reviewed and approved bonus payments for
senior management in respect of 2008;   reviewed and approved senior management salary levels and bonus targets for 2009;   considered and approved the Special Incentive Plan 2009; and   considered the 2009 Long-Term Incentive Plan
for management which was approved by shareholders at the Extraordinary General Meeting on December 17, 2009. |  | LOGO
|Key duties The Compensation Committee reviews and decides upon issues of compensation strategy, management appointments and compensation awards. In matters relating to the Chief
Executive Officer, the Committees remit is confined to making recommendations to the Board of Directors. The Compensation Committees main duties are summarised below:   to recommend performance targets for the
Chief Executive Officer for approval by the Board of Directors. To recommend to the Board of Directors any change to the Chief Executive Officers remuneration, including salary, incentive and stock option awards;   to review annually with the Chief Executive
Officer the career development plans and succession plans of the Chief Executive Officer and his direct reports and consider the adequacy of available managerial talent in the Group and report to the Board of Directors;   to review each year with the Chief Executive
Officer the performance of the senior management of the Group;   to review managements proposals for compensation strategy in order to determine whether they are appropriate for the business in which Acergy operates, are competitive, and are structured to
attract and retain key staff of the required calibre;   to review the effectiveness of existing long-term compensation plans and consider whether any changes to existing plans or other types of plan are appropriate; and   to review all benefit plans proposed by
management or changes to existing plans.  A full copy of the Compensation
Committees Terms of Reference is available to download from the Groups website www.acergy-group.com, the contents of the website are not incorporated by reference. The Compensation Committee is chaired by Tom Ehret. The other
Compensation Committee members are Thorleif Enger and Dod A. Fraser. All three members of the Compensation Committee are Independent Non-executive Directors. |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  





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60







Governance: Disclosure Committee   Membership  

Chief Financial Officer  

Group Financial Controller  

Chief Operating Officer  

General Counsel  

Head of Business Assurance  

Group Manager, Investor Relations  Key duties The Disclosure Committee assists the Chief Executive Officer and Chief Financial Officer in fulfilling their responsibility for oversight of the accuracy and
timeliness of the disclosures made by the Group. The Disclosure Committees main duties are summarised below:  

to assist the Chief Executive Officer in maintaining disclosure controls and procedures and, in consultation with the internal auditor, internal financial
controls;  

to monitor the integrity and effectiveness of disclosure controls and procedures, and consult with the Chief Executive Officer;  

to assist the Chief Executive Officer in complying with his obligations under applicable securities laws;  

to ensure that information required to be disclosed is accumulated and communicated by the Disclosure Committee;  

to apply disclosure requirements to accumulated information so that reports can be made in compliance with applicable securities laws;  

to oversee and review the preparation of annual and interim reports (including the Annual Report to Shareholders, Annual Report on Form 20-F and quarterly
financial press release) and present them for review to the Chief Executive Officer and the Audit Committee or its representatives; and  

to oversee and review preparation of disclosure documents other than those described above, such as registration statements and other securities offering
documents, press releases containing financial or other material information, earnings guidance, presentations to analysts and the investment community, presentations to ratings agencies, communications with shareholders such as proxy statements and
other publicly disseminated information.










|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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61







Governance: Compensation of Directors and Corporate Management Team Remuneration Report The Groups remuneration policy is set by the Compensation Committee. The policy is designed to provide remuneration packages which will help to attract, retain
and motivate senior management to achieve the Groups strategic objectives and to enhance shareholder value. The Compensation Committee benchmarks executive remuneration against comparable Companies, and seeks to ensure that Acergy offers
rewards and incentives which are competitive with those offered by our peers. The Committee seeks to ensure that the remuneration policy is applied consistently across the Group, and that remuneration is fair and transparent, whilst at the same time
encouraging high performance. Executive remuneration comprises base salary, bonus, share based payments, benefits-in-kind and pension. In benchmarking
elements of remuneration against Acergys peers, the Compensation Committee takes advice from time to time from external consultants. External advice was taken for the Acergy S.A. 2009 Long-Term Incentive Plan. Chief Executive Officer remuneration The remuneration package
of the Chief Executive Officer is determined by the Board of Directors, on the recommendation of the Compensation Committee. The compensation of the
Chief Executive Officer, for fiscal year 2009 was $2.1million and included base salary, bonus, benefits-in-kind and pension contributions. This excludes compensation paid under the incentive plans described below. Effective April 14, 2008, as a
component of his compensation package, he was awarded 20,000 restricted shares under the Restricted Share Plan. He also holds share options, which are shown in the table below:  Name

Date of Grant

Number

Exercise Price ($)

Date ofExpiryJean P. Cahuzac

April 14, 2008

100,000

24.20

April 14, 2018


Non-executive Directors fees and share options Non-executive Directors are paid a base fee for their services, with additional fees to reflect membership of committees and further fees to reflect chairmanship of committees. The fee structure which applied
during fiscal year 2009 is as follows:

LOGOFee

$ per annumChairman fee

160,000Base fee for Non-executive Directors

70,000Additional fee for Audit Committee members

21,500Additional fee for CompensationCommittee members

16,000Additional fee for Governance andNomination Committee members

16,000Additional fee for chairing a Committee

7,500






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Governance:

Compensation of Directors
and Corporate Management Team continued



Details of the fees paid to Non-executive Directors for the year to November 30, 2009 are set out below:



|                      |  |                |  |                          |  |                             |  |                                               |  |                                     |  |               |  |               | 
|--------------------- |  | -------------- |  | ------------------------ |  | --------------------------- |  | --------------------------------------------- |  | ----------------------------------- |  | ------------- |  | ------------- | 
|Name                  |  | Annual Fee ($) |  | Chairman ofCommittee ($) |  | Member ofAuditCommittee ($) |  | Member ofGovernanceandNominationCommittee ($) |  | Member of CompensationCommittee ($) |  | 2009Total ($) |  | 2008Total ($) | 
|Sir Peter Mason KBE   |  | 119,384        |  | 11,455                   |  | 11,339                      |  | 16,000                                        |  | 16,000                              |  | 174,178       |  | 105,999       | 
|Mark Woolveridge(a)   |  | 76,055         |  | 1,690                    |  |                            |  | 7,605                                         |  |                                    |  | 85,350        |  | 177,916       | 
|Tom Ehret             |  | 70,000         |  |                         |  |                            |  | 16,000                                        |  | 16,000                              |  | 102,000       |  | 98,666        | 
|George H. Doremus(b)  |  | 33,274         |  |                         |  | 10,220                      |  |                                              |  | 7,605                               |  | 51,099        |  | 104,166       | 
|Thorleif Enger(c)     |  | 36,918         |  |                         |  |                            |  |                                              |  |                                    |  | 36,918        |  |              | 
|James B. Hurlock(d)   |  | 33,274         |  |                         |  | 10,220                      |  | 7,605                                         |  |                                    |  | 51,099        |  | 104,166       | 
|Trond Ø. Westlie      |  | 70,000         |  | 7,500                    |  | 21,500                      |  |                                              |  | 16,000                              |  | 115,000       |  | 111,499       | 
|J. Frithjof Skouverøe |  | 70,000         |  |                         |  | 21,500                      |  | 16,000                                        |  |                                    |  | 107,500       |  | 104,166       | 



|(a) | Retired May 22, 2009
|--- | --------------------

|(b) | Retired May 22, 2009
|--- | --------------------

|(c) | Appointed May 22, 2009
|--- | ----------------------

|(d) | Retired May 22, 2009
|--- | --------------------

Non-executive Directors do not receive
pension contributions, benefits-in-kind or bonuses. Non-executive Directors were previously eligible to participate in share option plans. However, a review was undertaken, based on advice provided by external advisors, as a result of which
Non-executive Directors agreed to the cancellation of share options awarded to them in March 2008. Options awarded prior to March 2008 and still held by Non-executive Directors are as follows:



|                      |  |                   |  |         |  |                    |  |                   | 
|--------------------- |  | ----------------- |  | ------- |  | ------------------ |  | ----------------- | 
|Name of Director      |  | Date of Grant     |  | Number  |  | Exercise Price ($) |  | Date of Expiry    | 
|Sir Peter Mason KBE   |  | November 21, 2006 |  | 5,000   |  | 19.45              |  | November 20, 2016 | 
|Tom Ehret             |  | November 22, 2005 |  | 33,750  |  | 10.32              |  | November 21, 2015 | 
|                      |  | November 21, 2006 |  | 50,000  |  | 19.45              |  | November 20, 2016 | 
|Thorleif Enger        |  |                   |  | Nil     |  |                    |  |                   | 
|Dod A. Fraser         |  |                   |  | Nil     |  |                    |  |                   | 
|J. Frithjof Skouverøe |  | November 12, 2004 |  | 5,000   |  | 5.02               |  | November 11, 2014 | 
|                      |  | November 22, 2005 |  | 5,000   |  | 10.32              |  | November 21, 2015 | 
|                      |  | November 21, 2006 |  | 5,000   |  | 19.45              |  | November 20, 2016 | 
|Trond Ø. Westlie      |  | November 12, 2004 |  | 5,000   |  | 5.02               |  | November 11, 2014 | 
|                      |  | November 22, 2005 |  | 5,000   |  | 10.32              |  | November 21, 2015 | 
|                      |  | November 21, 2006 |  | 5,000   |  | 19.45              |  | November 20, 2016 | 
|Total                 |  |                   |  | 118,750 |  |                    |  |                   | 

Management Team remuneration

The aggregate compensation for the ten current members of the Corporate Management Team (excluding our Chief Executive Officer) for fiscal year 2009 was $7.5 million.
This includes base salary, bonus, benefits-in-kind, pension contributions and an element of performance bonus which is related to the future development of the Groups share price. Share options held by the Corporate Management Team, and
details of long-term incentive arrangements are shown below.

The remuneration of the Corporate Management Team is determined by the Compensation
Committee. Salary levels were reviewed by the Compensation Committee in February 2009 and it was agreed that basic salaries should not be increased. Bonus targets for the Corporate Management Team for 2009 were set by the Compensation Committee,
based on a combination of Group EBITDA, net income and order intake.







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63













|                                                                                            |  |                    |      |         |  |                    |  |                    |  |  | 
|------------------------------------------------------------------------------------------- |  | ------------------ | ---- | ------- |  | ------------------ |  | ------------------ |  |  | 
|Share options held by the Corporate Management Team (excluding the Chief Executive Officer) |  |                    | LOGO
|Name                                                                                        |  | Date of Grant      |      | Number  |  | Exercise Price ($) |  | Date of Expiry     |  | 
|Olivier Carré                                                                               |  | November 12, 2004  |      | 20,000  |  | 5.02               |  | November 11, 2014  |  | 
|                                                                                            |  | November 22, 2005  |      | 10,000  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 25,000  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 35,000  |  | 22.52              |  | March 11, 2018     |  | 
|Bruno Chabas                                                                                |  | December 5, 2003   |      | 5,625   |  | 2.24               |  | December 4, 2013   |  | 
|                                                                                            |  | May 14, 2004       |      | 105,834 |  | 2.30               |  | May 13, 2014       |  | 
|                                                                                            |  | November 22, 2005  |      | 24,374  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 35,000  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 25,000  |  | 22.52              |  | March 11, 2018     |  | 
|Simon Crowe                                                                                 |  |                    |      | Nil     |  |                    |  |                    |  | 
|Andrew Culwell                                                                              |  | May 9, 2001        |      | 1,000   |  | 13.56              |  | May 8, 2011        |  | 
|                                                                                            |  | December 3, 2001   |      | 1,000   |  | 6.25               |  | December 2, 2011   |  | 
|                                                                                            |  | March 17, 2003     |      | 1,000   |  | 1.19               |  | March 16, 2013     |  | 
|                                                                                            |  | December 5, 2003   |      | 10,000  |  | 2.24               |  | December 4, 2013   |  | 
|                                                                                            |  | November 12, 2004  |      | 6,000   |  | 5.02               |  | November 11, 2014  |  | 
|                                                                                            |  | November 22, 2005  |      | 4,500   |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 4,500   |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 6,000   |  | 22.52              |  | March 11, 2018     |  | 
|Jean-Luc Laloë                                                                              |  | May 20, 2003       |      | 2,500   |  | 1.96               |  | May 19, 2013       |  | 
|                                                                                            |  | December 3, 2003   |      | 13,750  |  | 2.24               |  | December 2, 2013   |  | 
|                                                                                            |  | November 22, 2005  |      | 16,500  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 24,500  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 15,000  |  | 22.52              |  | March 11, 2018     |  | 
|Allen Leatt                                                                                 |  | September 25, 2003 |      | 2,500   |  | 1.62               |  | September 24, 2013 |  | 
|                                                                                            |  | December 3, 2003   |      | 7,500   |  | 2.24               |  | December 2, 2013   |  | 
|                                                                                            |  | November 22, 2005  |      | 16,500  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 24,500  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 15,000  |  | 22.52              |  | March 11, 2018     |  | 
|Øyvind Mikaelsen                                                                            |  | May 14, 2004       |      | 60,000  |  | 2.30               |  | May 13, 2014       |  | 
|                                                                                            |  | November 12, 2004  |      | 3,300   |  | 5.02               |  | November 11, 2014  |  | 
|                                                                                            |  | November 22, 2005  |      | 18,750  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 30,000  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 15,000  |  | 22.52              |  | March 11, 2018     |  | 
|Mark Preece                                                                                 |  | November 22, 2005  |      | 16,500  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 24,500  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 15,000  |  | 22.52              |  | March 11, 2018     |  | 
|Johan Rasmussen                                                                             |  | December 3, 2003   |      | 13,750  |  | 2.24               |  | December 2, 2013   |  | 
|                                                                                            |  | May 14, 2004       |      | 30,000  |  | 2.30               |  | May 13, 2014       |  | 
|                                                                                            |  | November 12, 2004  |      | 6,050   |  | 5.02               |  | November 11, 2014  |  | 
|                                                                                            |  | November 22, 2005  |      | 16,500  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 24,500  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 15,000  |  | 22.52              |  | March 11, 2018     |  | 
|Keith Tipson                                                                                |  | November 22, 2005  |      | 22,000  |  | 10.32              |  | November 21, 2015  |  | 
|                                                                                            |  | November 21, 2006  |      | 24,500  |  | 19.45              |  | November 20, 2016  |  | 
|                                                                                            |  | March 12, 2008     |      | 15,000  |  | 22.52              |  | March 11, 2018     |  | 
|Total                                                                                       |  |                    |      | 808,433 |  |                    |  |                    |  | 





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Governance:

Compensation of Directors
and Corporate Management Team continued



Share ownership of Corporate Management Team The interests of the Corporate Management Team in the share capital of the Company as at February 17, 2010, being the last practicable date before publication of the Annual Report, are set out below: Name

Number of shares heldOlivier Carré

8,000Bruno Chabas(a)

19,398Simon Crowe

14,250Andrew Culwell

1,660Jean-Luc Laloë(a)

23,753Allen Leatt(a)

5,000Øyvind Mikaelsen

9,019Mark Preece(a)

5,000Johan Rasmussen(a)

15,174Keith Tipson(a)

9,646Total

110,900  (a)
Includes shares purchased or allocated under the Executive Deferred Incentive Schemes and the Restricted Share Plan. As of February 17, 2010, the Corporate Management Team directly and indirectly owned 110,900 common shares, representing 0.1% of all issued common shares. (The
Chief Executives interest in Acergy S.A shares is shown in Directors interest above). Pension arrangements Acergy operates a number of pension schemes, depending on location, covering certain qualifying employees. One of these pension schemes is a defined benefit scheme;
the remainder are defined contribution schemes. The Chief Executive Officer, and all members of the Corporate Management Team, are members of defined contribution schemes sponsored by the Group, and contributions are made by the Group to those
schemes on their behalf. Long-term incentive arrangements The Group operates a number of long-term incentive arrangements to reward and incentivise key management. These are summarised below: Senior Management Incentive Plan (SMIP) As a condition to a bonding facility agreement which was
finalised in 2004, there was a requirement to put in place a Key Staff Retention Plan (KSRP), now called the SMIP, in order to secure the services of certain senior executives. The SMIP provided for deferred compensation as a combination
of cash and performance-based share options, linked to the attainment of a number of strategic objectives for each of the fiscal years 2004, 2005 and 2006. The objectives fixed in the plan, and agreed by the Compensation Committee, included targets
for net profit, management team retention, bonding lines, internal controls over accounting and audit activities, business growth and restructuring. No compensation was awarded for fiscal year 2009 and no further awards will be made under this plan.
The options under the SMIP are exercisable until ten years after their date of grant.


Restricted Share Plan In March 2008 the Board of Directors approved and adopted a restricted share plan to provide a retention incentive to selected senior executives. The plan stipulates that the number of free shares (without any cash compensation) that may be
awarded under the plan may not exceed an average of 350,000 common shares over a three year period. During the three year restricted plan period, participants are not permitted to sell or transfer shares but will be entitled to dividends which will
be held by the Group until the restricted period lapses during fiscal year 2011. In April 2008, 65,000 restricted shares were issued to selected senior executives as part of the retention incentive of the plan. These shares had a fair value
representing their weighted average market price which was $22.23 on the date of issue. No further restricted shares have been issued under the Restricted Share Plan. Executive Deferred Incentive Scheme 2008 In March 2008 the Board of Directors approved and adopted a deferred
incentive scheme for selected senior executives including stipulating the number of shares that may be awarded. The scheme enables the executives to defer, on a voluntary basis, up to 50% of their annual bonus into shares of Acergy S.A. which will
be matched in shares at the end of three years subject to performance conditions. The value of the bonus deferred was used to purchase 17,797 shares based upon the prevailing share price on March 31, 2008 which was $21.35. The matched element
is conditional upon the growth of earnings per share over the three years to November 30, 2010. Executive Deferred Incentive Scheme 2009 In 2009 the Board of Directors approved and adopted a deferred incentive scheme for selected senior executives. The scheme enables the executives to
defer, on a voluntary basis, up to 50% of their annual bonus into shares of Acergy S.A. which will be matched in cash at the end of three years subject to performance conditions. The value of the bonus deferred was used to purchase 58,374 shares
based upon the prevailing share price on April 17, 2009 which was $7.64. The matched element is conditional upon achieving target total shareholder return over the three years to March, 2012 and is conditional on the shares being held for three
years. Special Incentive Plan 2009 Subsequent
to November 30, 2009, but prior to the adoption of the 2009 Long-Term Incentive Plan, and as an interim measure, the Group put in place the Special Incentive Plan 2009 (SIP 2009), a cash-settled incentive plan designed to provide
awards to selected executives and key employees, thus further aligning their interests with those of shareholders. Awards under the SIP 2009 are in the form of a cash bonus, payable in April 2012, of between zero and twelve months base salary,
dependent on the average Acergy S.A. share price as quoted on the NASDAQ Global Select Market between January 1, 2012 and March 31, 2012. If the average share price over that period is $8.75 or less, no cash bonus will be payable. If the
average share price over that period is $35.00 or more, a cash bonus equal to twelve months base salary will be payable. If the average share price over that period is between $8.75 and $35.00, a cash bonus equal to between zero and twelve
months base salary will be payable, calculated on a straight-line basis pro rata to the share price. Awards under the SIP are capped at the equivalent of twelve months base salary. No other performance criteria apply.








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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |  |  |     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ----
|2009 Long-Term Incentive Plan The Acergy
S.A. 2009 Long-Term Incentive Plan (2009 LTIP) was approved by shareholders at the Extraordinary General Meeting on December 17, 2009.  The 2009 LTIP is an essential component of the Groups compensation policy, and was designed to place the Group on a par with competitors in terms of recruitment
and retention abilities. The 2009 LTIP provides for whole share awards, which vest after three years, based on the following performance conditions:  Performance conditions are based on relative Total Shareholder Return (TSR) against a specified comparator group of 14 companies determined over a three
year period. The Group would have to deliver TSR above the median for any awards to vest. At the median level, only 30% of the maximum award would vest. The maximum award would only be achieved if the Group achieved top decile TSR (i.e. if, when
added to the comparator group, Acergy was first or second, in terms of TSR performance). In addition, individual award caps have been introduced. No senior executive or other employee may be granted shares under the 2009 LTIP in a single calendar
year that have an aggregate fair market value in excess of 150%, in the case of senior executives, or 100%, in the case of other employees, of his or her annual base salary as of the first day of said year. Additionally, a holding requirement for
senior executives has been introduced. Senior executives must hold 50% of all awards that vest until they have built up a shareholding of 1.5 x salary, which must be maintained.  No awards have been made under the 2009 LTIP as at February 17, 2010. It is intended that
the 2009 LTIP will cover approximately 100 senior managers and key employees. Grants will be determined by the Acergy Compensation Committee, which will be responsible for operating and administering the plan. The 2009 LTIP has a five-year term with
awards being made annually. The aggregate number of shares subject to all awards which may be granted in any calendar year is limited to 0.5% of issued and outstanding share capital on January 1 of each such calendar year. |  |  |  | LOGO





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Financial Review and Statements:

Financial Review





Solid operational performanceLOGO


2009 was a year characterised by continued macro economic turmoil and uncertainty in the energy and financial
markets. The worldwide economic recession continued to affect commodity prices and the significant falls in the energy prices seen during the second half of 2008 continued into 2009, albeit at a greatly reduced rate. Our 2009 fiscal year commenced with the price of oil below $40 per barrel rising to $77 per barrel by year end. As economic conditions remained uncertain, and in
anticipation of a fall in raw material prices, clients remained cautious and continued to focus on cash optimisation. Decisions and contract awards were delayed, leading to poor short-term visibility, lower levels of activity, sporadic order flow
and more aggressive competition. Although the oil price strengthened during the year, the ongoing volatility continued to concern clients and for much
of 2009 the underlying macro economic factors required to support the current oil price or to sustain further improvements were not sufficiently compelling for the operators to change behaviour. Despite these challenging short-term conditions, we
performed strongly. Financial strategy Our
financial strategy can be summarised as maintaining a robust balance sheet to support the growth of our business in targeted regions with specific services and provide sufficient funding through the business cycle. We will achieve this by having the
best people and the best assets. We will continually analyse business opportunities that match our resources and those that maximise cash flow, whilst being disciplined in maintaining strict debt service (net debt/EBITDA) and debt volume (net
debt/enterprise value) internal control ratios. There are four key elements to our financial strategy: Cost control We are continuously reviewing and challenging our
cost base. In 2009 we responded to the changed macro economic environment by taking measures to reduce our operational and overhead cost base. We conducted a thorough review of all of our resource requirements and sought to rationalise where
possible while still retaining an underlying cost base that could support our customers. Aligned corporate and entity structure We seek competitive advantage by ensuring that we have the appropriate corporate structure to minimise our administration costs and maximise the support that we give
our clients and operations. We have an ongoing internal project which is reviewing our operating model and entity structure to better align our operations with customer needs and ensure that we maximise efficiencies across our business. Strong balance sheet to support growth and financial flexibility As can be seen from our results we continue to be focused on maintaining a strong balance sheet and have built a healthy cash position during 2009 while maintaining access and capacity in the debt markets. The Board of Directors and
Corporate Management Team believed that the challenging market conditions would present opportunities to invest in the business which would drive future growth and deliver superior returns for our shareholders. This conservative approach has allowed
us to move swiftly to capitalise on such an opportunity, and we were delighted to announce the acquisition of Acergy Borealis in December 2009. The details of this asset acquisition are highlighted on page 77 of the Financial Review.








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69







Robust control environment Progress continues to be made in strengthening our compliance and control environment. We have refined and enhanced our internal controls and have continued to
develop our Business Assurance capability. We operate an ongoing risk review which seeks to identify the key value drivers at Acergy and to mitigate those risks where it is cost effective. Financial highlights For the fiscal year (in $ millions, except share and per share data)

2009


2008Continuing operations:Revenue

2,208.8


2,522.4Gross profit

525.0


648.2Net operating income

342.7


460.8Income before taxes

361.3


492.3Taxation

(102.8
)

(162.6
)Income from continuing operations

258.5


329.7Net income/(loss) from discontinued operations

7.2


(22.5
)Net income  total operations

265.7


307.2Earnings per share  continuing operations

$ pershare


$ pershareBasic

1.30


1.76Diluted

1.29


1.70Weighted average number of common shares
and common share equivalentsOutstanding (millions)Basic

183.0


184.1Diluted

183.8


207.5 Continuing operations In 2009 the Group delivered revenue from continuing operations of $2,208.8 million (2008: $2,522.4 million), which was a decrease of 12% primarily reflecting the impact of the economic climate. Our business is managed on a geographic basis and can also be analysed by business service. Revenue generated by the regions was:  2009


2008Revenue(in $ millions)

Percentageof total


Revenue(in $ millions)


Percentageof totalAcergy NEC

648.8

29.4
%

843.1


33.4
%Acergy AME

206.0

9.3
%

180.8


7.2
%Acergy AFMED

999.7

45.3
%

1,175.9


46.6
%Acergy SAM

288.8

13.1
%

320.1


12.7
%Acergy NAMEX

57.8

2.6
%

4.4


0.2
%Acergy Corporate

7.7

0.3
%

(1.9
)

(0.1
)%2,208.8

100.0
%

2,522.4


100.0
%


The revenue generated by the different services we offer can be detailed as follows. Our SURF activity contributed $1,615.8 million (73%),
Conventional activity added $388.2 million (18%) and IMR and Survey $204.8 million (9%).  Income before taxes from continuing operations decreased by 27% to $361.3 million (2008: $492.3 million) impacted by the reduction in revenue and lower investment income. 2008 benefited from a one-off pension credit. Net income from
continuing operations also decreased by 22% to $258.5 million (2008: $329.7 million) mitigated by the reduction in the effective tax rate from 33% in 2008 to 28% in 2009. This decrease in net income was due primarily to a decrease in revenues, our
operating expenses not decreasing as much as revenue, a drop in joint venture income and a decrease in investment returns on higher cash holdings.  For further detail refer to pages 73 to 86 of the Financial Review.  Earnings per share and dividends Earnings per
share Basic earnings per share from continuing operations decreased by 26% (2008: increase of 171%) to $1.30 (2008: $1.76), reflecting the effect of
the economic conditions on revenue and resultant profitability. Total diluted earnings per share for continuing operations are $1.29 (2008: $1.70) for a total diluted share count of 183.8 million (2008: 207.5 million).  Dividends per share Against these challenging market conditions the Board of Directors recognises the continued importance of rewarding shareholders for their investment in Acergy. The Board continued to review opportunities to invest
in the business, as well as returning cash to shareholders through share buybacks and dividends, while maintaining a strong balance sheet. Acergy distributed a total of $40.2 million to our shareholders in 2009 in the form of dividends. While we did
not execute any share buybacks in 2009, we have returned a total of $401.1 million to shareholders over the past three years.  In recognition of the strength of the fiscal year results and the confidence in the future, the Board of Directors has proposed a dividend of $0.23 per common share or
common share equivalent payable in 2010 (2008: $0.22), subject to shareholder approval at the 2010 Annual General Meeting. We delivered a total shareholder return(a)of 162% for the fiscal year.  (a)  Total shareholder return is a measure to show what returns an investor would realise from holding shares in a
company and is defined as ((price at end of fiscal year  price at beginning of fiscal year)+dividends paid in year)/price at beginning of fiscal year.

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Financial Review and Statements:

Financial Review continued





Cash flow Movements in cash balances are summarised as follows:  For the fiscal year (in $ millions)

2009


2008Cash and cash equivalents at the beginning of the year

573.0


582.7Net cash generated from operating activities

546.1


493.1Net cash used in investing activities

(100.4
)

(286.7
)Net cash used in financing activities

(52.0
)

(186.1
)Effect of exchange rate changes on cash andcash equivalents

44.5


(30.0
)Cash balances classified as held for sale

(103.6
)

Cash and cash equivalents at the end of the year

907.6


573.0 Our
principal source of funds for 2009 has been cash generated from operating activities of $546.1 million (2008: $493.1 million) together with net proceeds from the sale of the Acergy Piper of $73.0 million. Operating cash flow improved as a result of
good project management and the timing of project completion. 2009 also saw a reduction in investment in new property, plant and equipment, which
reflects the economic cycle, and there were also no purchases of treasury shares. Foreign exchange rate variances also contributed favourably to our cash valuation. The pending reduction in the shareholding of the Sonamet/Sonacergy investment
resulted in $103.6 million being reclassified as part of the assets held for sale. Liquidity At the end of 2009 Acergy had unutilised committed credit and guarantee facilities of $243 million, of which $6.1 million was available for cash drawings. On
December 17, 2009 further guarantee capacity became available as a result of a cancellation of a guarantee that was not required and this resulted in a total of $75 million becoming available for cash drawings. Combined with cash balances of
$907.6 million, this ensured that as at fiscal year 2009 the Group has sufficient liquid resources to meet current operating requirements. In the light of our recent purchase of Acergy Borealisand our ongoing assessment of future business
opportunities, we are actively reviewing our cash and guarantee facilities, as well as our long term funding requirements. In 2009 the conversion price
of our convertible loan notes was revised to $22.71 per share (2008: $23.52) in accordance with the anti-dilution features of our loan notes which require such adjustment. The conversion price will continue to be adjusted in line with the terms of
the convertible loan notes. The notes mature in October 2013 and are a very cost effective source of funds. Covenant compliance Our credit facilities contain various financial covenants including, but not limited to, a minimum level of tangible net worth, a maximum level of net debt to earnings
before interest, taxes, depreciation and amortisation, a maximum level of total financial debt to tangible net worth, a minimum level of cash and cash equivalents and an interest cover covenant. The Group must meet the requirements of the financial
covenants on a consolidated basis in quarterly intervals on the last day of February, May, August and November of each year. Based on our latest forecast for fiscal year 2010, the Group expects that it will be able to comply with all financial
covenants during fiscal year 2010.


Balance sheet Management believes that Acergy continues to maintain a robust balance sheet as demonstrated by the strong cash position of $907.6 million and profitable joint venture investments of $190.3 million.  As at November 30 (in $ millions)

2009

2008Property, plant and equipment

821.8

907.6Interest in associates and joint ventures

190.3

140.2Trade and other receivables

297.9

354.5Assets held for sale

263.6

75.5Other accrued income and prepaid expenses

212.8

233.5Cash and cash equivalents

907.6

573.0Other assets

139.1

186.8Total assets

2,833.1

2,471.1Total equity

1,099.2

801.4Non-current portion of borrowings

415.8

409.2Trade and other payables

624.1

651.6Deferred revenue

279.8

305.6Current tax liabilities

97.9

69.1Liabilities associated with assets held for sale

174.9

Other liabilities

141.4

234.2Total liabilities

1,733.9

1,669.7Total equity and liabilities

2,833.1

2,471.1 Backlog Backlog for continuing operations as at November 30, 2009 was $2.8 billion (2008: $2.5 billion), of which $1.7 billion relates to our SURF activity, $1.0 billion to Conventional and $0.1 billion to Survey/IMR. We expect that $1.7 billion of backlog will be executed in 2010, $0.8 billion in 2011 and $0.3 billion in 2012 and thereafter. Backlog excludes associates, joint
ventures and discontinued operations. Outlook We have good visibility for 2010 with $1.7 billion of revenue already in hand. This supports our guidance for fiscal year 2010 namely for continuing operations, we expect to deliver revenue in line with 2009, albeit with a lower Adjusted
EBITDA margin. We have seen a recent increase in tendering activity, most particularly in the UK North Sea and the Gulf of Mexico, but the pricing
environment continues to be very competitive. This year, we anticipate more activity in the Conventional market in West Africa and we are also
encouraged that certain major SURF contracts, delayed during 2009, are expected to come to market award. The offshore installation phase of most of these projects is expected to commence from late 2011 onwards, and given their size are likely to
contribute to substantial industry growth in the medium-term. We expect the Conventional market in West Africa to remain very strong and believe the
trend will be for SURF projects to continue to increase in size and complexity. Acergy is well placed to combine our competitive strengths of high calibre engineering and project management skills with our high quality assets to capture these future
growth opportunities. Simon Crowe Chief Financial Officer








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|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----- |  | ----- |  | ----- |  | 
|Factors Affecting the Business Results Business environment Acergys services largely depend on the success of exploration and the level of
investment in upstream offshore exploration and production by the major oil companies.  Management believes the medium-term market fundamentals for the Groups business remain strong, driven by increasing field depletion and clients strategic needs to access new reserves and replenish production, including the
development of hydrocarbon discoveries in increasingly challenging acreage. While the Group believes that these market fundamentals remain strong, the business environment in which the Group operates remains challenging in the short-term.
 2008 witnessed significant and historic events in capital and commodity markets with global
financial markets suffering the most serious crisis since the great crash of 1929. For commodity markets, 2008 was a year of extremes as the oil price reached nearly $150 per barrel, later falling to below $40 per barrel.  The effect of the economic downturn remained evident throughout 2009. The combination of macro
economic concerns and oil price weakness dented market confidence which, together with the credit crunch, put pressure on clients short and medium-term capital expenditure plans, resulting in clients delaying the award of large SURF projects
and poor short-term visibility in this market. Consequently we have seen a lower level of activity with pressure on prices. The Group remains vigilant, managing its internal cost base and risk profile without compromising long-term strategy and
expertise.  Seasonality A significant portion of our revenue in fiscal year 2009 was generated from work performed offshore in West Africa where optimal weather conditions exist only from
October to April, with most offshore operations being scheduled for that period. The Group also generated a significant portion of our revenue in fiscal year 2009 in the North Sea and Norwegian Sea. Adverse weather conditions during the winter
months in this region usually result in low levels of activity. Due to the macro environment and current financial conditions the usual seasonal patterns of an increased level of activity during the summer usually observed in the North Sea and the
Norwegian Sea have been noticeably dampened.  A full-year result is not likely to be
a direct multiple of any particular quarter or combination of quarters. Additionally, during certain periods of the year, the Group may be affected by delays caused by adverse weather conditions such as hurricanes or tropical storms. During periods
of curtailed activity due to adverse weather conditions, the Group continues to incur operating expenses, but revenue from operations may only be recognised later in line with the percentage-of-completion method.  Ship utilisation The Groups ability to earn revenue is driven by its optimisation of the utilisation of its ships. The following table sets forth the average ship utilisation by year for the fleet of dynamically positioned
deepwater and heavy construction ships, light construction and survey ships, and other barges and anchor ships. The utilisation rate is calculated by dividing the total number of days for which the ships were engaged in project-related work by 350
days annually, expressed as a percentage. The remaining 15 days are attributable to routine maintenance. |  | LOGO 
|Utilisation rate (excluding discontinued operations) for the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 2009% |  | 2008% |  | 2007% | 
|Deepwater and heavy construction ships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 82    |  | 83    |  | 86    | 
|Light construction and survey ships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 81    |  | 84    |  | 96    | 
|Other barges and anchor ships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 79    |  | 27    |  | 67    | 
|Utilisation of major ships (excludes barges and minor support
vessels included in the above table and calculated on the above basis) was 80% in fiscal year 2009 compared to 81% for fiscal year 2008.  The utilisation of deepwater and heavy construction ships has remained at a similar level to fiscal year 2008. Toisa Proteus, located in Asia, and Acergy
Polaris, located in West Africa, had higher utilisation levels however there was a reduction in utilisation of Acergy Falconand Acergy Hawk. The increase in the utilisation of Acergy Polariswas due to the fact that in 2008
the ship had a seven month dry-dock as the ship had been in service for 30 years.  Utilisation of light construction and survey ships has decreased slightly in fiscal year 2009 compared to fiscal year 2008, mainly due to reduced utilisation of Acergy Petrel, which operates in the competitive North Sea survey
market.  The utilisation of other barges and anchor ships has increased
significantly in fiscal year 2009 as compared to that of fiscal year 2008. This is due to a much higher utilisation of the cargo barges in West Africa supporting conventional and hook up activities, which were lower in fiscal year 2008 but which
returned to fiscal year 2007 levels.  For fiscal year 2010 a decrease in the
utilisation of the fleet is anticipated due to the current market conditions and a higher number of scheduled dry-docks being performed in that year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 





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Ship scheduling

Performance can be adversely affected by conflicts in the scheduled utilisation of key ships and barges. These can be caused by delays in releasing ships from projects
due to additional client requirements and overruns. Conflicts can also arise from commercial decisions concerning the utilisation of assets after work has been tendered and contracted for. The need to substitute ships or barges as a result of
unavailability of initially planned ships or barges can adversely affect the results of the projects concerned.

Maintenance and reliability of
assets

The successful execution of contracts requires a high degree of reliability of ships, barges and equipment. Breakdowns not only add to the
costs of executing a project, but can also cause delays in the completion of subsequent contracts which are scheduled to utilise the same assets. The Group operates a scheduled maintenance programme in order to keep all assets in good working order
but, despite this, breakdowns can and do occur.

Revisions of estimates on major projects

During the course of major projects adjustments to the original estimates of the total contract revenue, total contract cost, or extent of progress toward completion
are often required as the work progresses under the contract and as experience is gained, even though in certain cases the scope of work required under the contract may not change. Where a change of scope is required, variation orders are negotiated
with the client. However final agreement and settlement are often not achieved until late in the project. As discussed in Note 3  Significant accounting policies  revenue recognition to the Consolidated Financial Statements, these
revisions to estimates will not result in restating amounts in previous periods as they are continuous and characteristic of the process.

Estimates are
revised monthly on the basis of project status reports, which include an updated forecast of the cost to complete each project. Additional information that enhances and refines the estimation process is often obtained after the balance sheet date
but before the issuance of the financial statements. Such information will be reflected in the financial statements, unless the events occurring after the balance sheet date are outside the normal exposure and risk aspects of the contract, in which
case they will be reflected in the following fiscal year.

The revision of estimates calculation is based on the difference between the current and
prior fiscal years estimated gross margin at completion of the project, multiplied by the prior fiscal year percentage-of-completion. If a project had not commenced at November 30 of the previous fiscal year, the revision of estimates
incurred for this project during the current fiscal year would not be included in the calculation for revision of estimates.

The impact of revisions of
project estimates, including variation orders, at the gross profit level is as follows:



|                                    |  |       |   |  |       |   |  |       |  
|----------------------------------- |  | ----- | - |  | ----- | - |  | ----- | -
|For the fiscal year (in $ millions) |  | 2009  |   |  | 2008  |   |  | 2007  |  
|Continuing operations               |  |       |   |  |       |   |  |       |  
|Positive revisions                  |  | 154.8 |   |  | 180.8 |   |  | 144.7 |  
|Negative revisions                  |  | (73.9 | ) |  | (4.5  | ) |  | (16.8 | )
|Total continuing revisions          |  | 80.9  |   |  | 176.3 |   |  | 127.9 |  
|Discontinued operations             |  |       |   |  |       |   |  |       |  
|Positive revisions                  |  | 17.5  |   |  |      |   |  | 10.1  |  
|Negative revisions                  |  |      |   |  | (23.8 | ) |  |      |  
|Total discontinued revisions        |  | 17.5  |   |  | (23.8 | ) |  | 10.1  |  
|Total                               |  | 98.4  |   |  | 152.5 |   |  | 138.0 |  

Continuing operations

There were positive revisions to estimates (improvements in projected project margin during and at completion of
the contract) reported in all business segments during fiscal year 2009. Negative revisions in fiscal year 2009 primarily related to Acergy NEC, which reported $56.5m on SURF projects, primarily due to increased operating expenses on the Marathon
Volund Project which completed during the fiscal year and which is subject to ongoing commercial negotiations.

Exchange rates

The Group transacts in a number of foreign currencies and as a result has foreign currency denominated revenue, expenses, assets and liabilities. However, the
consolidated Group results are denominated in US Dollars. As a consequence, movements in exchange rates can affect profitability, the comparability of results between periods and the carrying value of assets and liabilities. Other than the US
Dollar, the major foreign currencies of the Group are the Euro, British Pound and Norwegian Krone.







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----
|The policy of the Group is to contract in the functional currency of the contracting entity. However, when the Group incurs expenses that are not denominated in the same currency as the
related functional currency revenue, foreign exchange rate fluctuations can adversely affect profitability. Where it is not possible to contract in functional currency, the Groups policy is to use foreign exchange contracts to hedge the
significant external foreign exchange exposure. The US Dollar is the functional currency of the most significant subsidiaries in Acergy NAMEX, Acergy SAM and Acergy AME. In Acergy AFMED, the functional currencies are primarily the Euro, Nigerian
Naira, Central African Franc and US Dollar. In Acergy NEC, the functional currencies are primarily the Norwegian Krone, US Dollar, Canadian Dollar and British Pound. Exposure to currency exchange rate fluctuations results from net investments in
foreign subsidiaries, primarily in the United Kingdom, Norway, France and Brazil. There is also exposure to fluctuations in several other currencies resulting from operating expenditures and significant one-off non-project-related transactions such
as capital expenditure. |  | LOGO
|In order to prepare Consolidated Financial Statements, non-US Dollar
denominated results of operations, assets and liabilities are translated to US Dollars. Balance sheet items are translated into US Dollars using the relevant exchange rate at the fiscal year end for assets and liabilities, and income statement and
cash flow items are translated using exchange rates which approximate the average exchange rate during the relevant period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 
|Fluctuations in the value of the US Dollar versus other currencies will have an effect on the reported Consolidated Income Statement and the value of assets and liabilities in the
Consolidated Balance Sheet even where the results of operations or the value of those assets and liabilities have not changed in their local functional currency.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 
|As the Group conducts operations in many countries there is exposure to
currency fluctuations through generation of revenue and expenditure in the normal course of business. The currency rate exposure policy prescribes the range of allowable hedging activity to minimise this exposure. Forward foreign exchange contracts
are used primarily to hedge capital expenditure and operational non-functional currency exposure on a continuing basis for periods consistent with committed exposures. Please refer to Note 28 Movements in reserves to the Consolidated
Financial Statements for further detail.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 
|Impairment charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|Impairment charges in fiscal year 2009 amounted to $15.6 million (2008: $2.8 million). The charge for 2009 included $9.8 million relating to underutilised operating equipment and $4.8 million
relating to the Groups investments in its subsidiaries, Sonamet and Sonacergy, which are classified as assets held for sale at November 30, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|Discontinued operations contributed $1.0 million to the impairment charge.
This related to a reduction in the expected sale price of equipment relating to but not included in the sale of Acergy Piper. For more information regarding impairment charges, see also Note 16 Property, plant and equipment and
Note 21 Assets classified as held for sale to the Consolidated Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 
|In fiscal year 2008, impairment charges in respect of underutilised
operating equipment amounted to $2.8 million and a reversal of an impairment charge relating to Acergy Piper of $14.3 million, as discussed below in Discontinued operations. Impairment charges in fiscal year 2007 were $0.3 million
in respect of underutilised operating equipment. For further information regarding impairment charges, see also Note 16 Property, plant and equipment to the Consolidated Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 
|Financial Review                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|Revenue Revenue from continuing operations
decreased by 12.4% to $2,208.8 million in fiscal year 2009 (2008: $2,522.4 million). The core SURF activity contributed $1,615.8 million or 73.1 % of continuing revenue (2008: $1,832.4 million, 72.6%) . Conventional activity comprised $388.2
million or 17.6% of continuing revenue (2008: $442.0 million, 17.5%) with almost all the activity occurring in Africa. Other revenue streams related to IMR/Survey activity of $204.8 million (2008: $248.0 million) represented 9.3% of the continuing
revenue. As at November 30, 2009, an estimated $1.7 billion of the $2.8 billion backlog was scheduled for execution in fiscal year 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
|Revenue from continuing operations increased to $2,522.4 million in fiscal
year 2008 from $2,406.3 million in fiscal year 2007. The core SURF activity contributed $1,832.4 million or 72.6% of continuing revenue (2007: $1,905.2 million, 79.2%) with a growing presence in Africa and Brazil as well as increased activity in
Northern Europe. Conventional activity comprised $442.0 million or 17.5% of continuing revenue (2007: $354.0 million, 14.7%) with almost all the activity occurring in Africa. Other revenue streams related to IMR/Survey activity of $248.0 million
(2007: $143.7 million) and no revenue in the corporate region in 2008 (2007: $3.4 million). The most significant negative impact on revenue was the planned dry-dock scheduling, particularly Acergy Polaris during the third and fourth quarters
of fiscal year 2008.                                                                                                                                                                                                                                                                                                                                                                        | 
|Operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|Operating expenses in fiscal year 2009 amounted to $1,683.8 million (2008: $1,874.2 million), decreasing 10.2% compared to fiscal year 2008, slightly less than the 12.4% fall of revenue.
Despite careful monitoring of project expenses, operating expenses increased, leading to an overall gross profit margin percentage point decrease of 1.9% compared to fiscal year 2008. This was primarily due to increased operating expenses on the
Marathon Volund Project which completed during the fiscal year and which is subject to ongoing commercial negotiations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 





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Operating expenses in fiscal year 2008 amounted to $1,874.2 million (2007: $1,859.1 million), a marginal increase
of 0.8% compared to fiscal year 2007 and less than the 4.8% increase in revenues when compared to fiscal year 2007. The improvement in the gross margin was attributable to both a closer monitoring of costs on a project by project basis, but also
benefited from a $30.0 million credit in the Acergy NEC region relating to the settlement of a Norwegian defined benefit pension scheme.

Gross
profit

Gross profit for the fiscal year 2009 was $525.0 million (2008: $648.2 million), a decrease of 19.0%, with the gross profit margin of 23.8%
declining from 25.7% in 2008. The decrease in gross profit reflects lower activity levels and the current portfolio mix with fewer major SURF projects in installation phase or completed compared to fiscal year 2008. This was partially offset by good
project execution and continued good utilisation of vessels.

Gross profit for the fiscal year 2008 was $648.2 million, an increase of 18.5% compared to
the gross profit in fiscal year 2007 of $547.2 million, representing a gross profit margin of 25.7% compared to 22.7% in fiscal year 2007. It should be noted that 1.2% of the margin improvement related to a $30.0 million credit in Acergy NEC arising
on the settlement of a Norwegian defined benefit pension scheme. Vessel utilisation of major ships (excluding Acergy Piper) in the period decreased slightly to 84% compared to 86% in fiscal year 2007 primarily due to extensive dry-dock of
Acergy Polaris and a number of other dry-docks in the second half of the year. Despite this slight fall in utilisation, total chargeable major ship days increased by over 600 days in fiscal year 2008 following fleet expansion.

Administrative expenses

Administrative expenses decreased
$22.5 million (8.9%) to $231.3 million in fiscal year 2009 from $253.8 million in fiscal year 2008 and represented 10.5% of revenue (2008: 10.1%) . This reduction is the combination of cost reduction initiatives launched in early 2009,
continuous monitoring of the cost base and favourable foreign exchange rate movements.

Administrative expenses increased $26.2 million (11.5%) to
$253.8 million in fiscal year 2008 from $227.6 million in fiscal year 2007, which represented 10.1% of revenue (2007: 9.5%) . This was mainly attributable to some administrative expenses not being allocated to discontinued operations in fiscal year
2008 (as they remained with the business), and higher tendering and support costs to meet business requirements.

Share of results of associates and
joint ventures

The Groups share of net income of associates and joint ventures from continuing operations in fiscal years 2009, 2008 and 2007
was as follows:



|                                    |  |      |   |  |       |   |  |       |  
|----------------------------------- |  | ---- | - |  | ----- | - |  | ----- | -
|For the fiscal year (in $ millions) |  | 2009 |   |  | 2008  |   |  | 2007  |  
|Mar Profundo Girassol               |  |     |   |  |      |   |  | (0.1  | )
|Dalia                               |  | 2.9  |   |  | 0.6   |   |  | 3.4   |  
|Oceon                               |  | (0.9 | ) |  | (0.9  | ) |  | (0.5  | )
|Acergy/Subsea 7                     |  | 0.6  |   |  | 3.5   |   |  | 12.3  |  
|SapuraAcergy                        |  | 9.7  |   |  | (15.4 | ) |  | (10.3 | )
|Seaway Heavy Lifting                |  | 15.0 |   |  | 29.6  |   |  | 8.8   |  
|NKT Flexibles                       |  | 21.7 |   |  | 45.6  |   |  | 17.9  |  
|Total                               |  | 49.0 |   |  | 63.0  |   |  | 31.5  |  

The
Groups share of net income of associates and joint ventures in fiscal year 2009 decreased 22.2% to $49.0 million compared to $63.0 million in fiscal year 2008. The results were primarily due to a reduced NKT Flexibles contribution of $21.7
million (2008: $45.6 million), reflecting challenging conditions in the flexible pipelay market, and a lower contribution from Seaway Heavy Lifting, which contributed $15.0 million (2008: $29.6 million) due to a particularly strong performance in
fiscal year 2008. This was partially offset by a positive contribution from SapuraAcergy of $9.7 million (2008: loss of $15.4 million) largely due to improvements in Kikeh and MHS Project performance and Sapura 3000 being available for the
full year.

The Groups share of net income of associates and joint ventures in fiscal year 2008 increased by 100% to $63.0 million from $31.5
million in fiscal year 2007. The increase was primarily attributable to a strong performance from NKT Flexibles of $45.6 million (2007: $17.9 million) due to increased demand for flexible pipe following an increase in global SURF activity. Seaway
Heavy Lifting contributed $29.6 million (2007: $8.8 million) with a significant improvement in the fourth quarter of fiscal year 2008 compared to the fourth quarter of fiscal year 2007 when Stanislav Yudin was in dry-dock for the full
quarter. The increase was partially offset by a net loss of $15.4 million from the SapuraAcergy joint venture (2007: loss of $10.3 million).

Net
operating income from continuing operations

Net operating income decreased by $118.1 million to $342.7 million in 2009 (2008: $460.8 million). This
represents a reduction of 25.6% from 2008 reflecting the overall decline in market activity observed in 2009, which was evidenced by the reduction in gross profit margin and the $14.0 million decrease in the share of results from associates and
joint ventures.

In 2008 operational performance remained strong due to successful project management and execution of projects which resulted in an
increase in net operating income of 31.1% to $460.8 million for fiscal year 2008 (2007: $351.5 million).







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Investment income In fiscal year 2009
investment income decreased to $6.4 million compared to $17.9 million in fiscal year 2008, mainly as a result of a continuing decline in global interest rates on overnight balances from our deposit investment returns. This continued the trend that
was experienced in fiscal year 2008 in which investment income decreased to $17.9 million from $30.8 million in fiscal year 2007.  Other gains and losses Other gains and losses were $43.6 million
in fiscal year 2009, compared to $44.1 million and $0.6 million in fiscal year 2008 and 2007 respectively, and are composed of gains or losses on net foreign currency exchange and disposals of property, plant and equipment.  Net foreign currency exchange gains or losses During fiscal year 2009 the Group recorded foreign exchange gains of $43.2 million. The largest elements of this gain related to foreign exchange gains of $52.7
million arising on the revaluation of cash balances and unrealised hedging gains of $20.2 million, partially offset by foreign exchange losses of $30.4 million arising on the revaluation of short-term inter-company balances in subsidiary entities.  In fiscal year 2008 the Group recorded foreign exchange gains of $39.0 million.
The largest element of this gain related to the revaluation of short-term inter-company balances in subsidiary entities and the strengthening of the US Dollar compared to other currencies, primarily the Euro.  In fiscal year 2007 foreign exchange losses amounted to $11.6 million. These consisted of a
foreign exchange loss of $21.8 million due to the revaluation and settlement of short-term inter-company balances, partially offset by a gain of $10.2 million due to changes in the market value of the forward exchange contracts and the realisation
of forward exchange contracts.  Gains on disposal of property, plant and
equipment In fiscal year 2009 a gain of $0.4 million was recognised relating to operating equipment.  In fiscal year 2008, the gain of $5.4 million primarily reflected a gain of $3.7 million arising
on the disposal of a Saturation Dive system. Additionally other small gains include $0.7 million on the sale of Tarpon in Acergy NAMEX and a gain on the disposal of Bucksburn House, Scotland in Acergy NEC.  In fiscal year 2007, the gain of $13.6 million comprised $12.5 million from the sale of diving
and shallow water assets in Acergy AME, $0.7 million from the sale of the J-Lay tower in Acergy AFMED and other gains on disposal totalling $0.4 million.  Finance costs Finance costs in fiscal year 2009 were comparable
to fiscal year 2008, totalling $31.4 million in comparison to $30.5 million for fiscal year 2008, relating mainly to interest on convertible loan notes.  Finance costs in fiscal year 2008 decreased to $30.5 million compared to $39.0 million in fiscal year 2007, due to interest on tax liabilities of $10.7 million
recognised in 2007 in comparison to $0.7 million in 2008.  Income before
taxes In fiscal year 2009 net income before taxation decreased to $361.3 million (2008: $492.3 million and 2007: $343.9 million), primarily due to
the decrease in investment income and income from operations.  Taxation The Group recorded a net tax charge of $102.8 million on continuing operations in fiscal year 2009 as compared to $162.6 million
in fiscal year 2008 (2007: $215.1 million). The effective tax rate on continuing operations for 2009 was 28.5%, compared to an effective tax rate of 33.0% for 2008 (2007: 62.5%).  The movements in the tax provision or benefit year on year generally are a product of the
differing levels of profitability achieved in each of the many territories in which business is conducted. The significant components of the taxation provision are referred to in the following paragraphs.  The tax rate in 2009 benefited from a net release of provisions and prior year adjustments
totalling $8.6 million including the impact of progress made towards resolution of UK and French tax audits. Against this, the tax rate reflected that a significant proportion of profits were generated by Acergy AFMED, which operated in high tax
regimes.  As discussed more fully in Note 12 Taxation to the
Consolidated Financial Statements, the Group reassessed its estimates of the probable liabilities resulting from ongoing tax audits which resulted in a net release of provisions of $10.2 million. The French tax audit remains ongoing, but substantial
progress has been made toward resolving all open cases through 2005. In fiscal year 2008, a provision of $4.1 million was made for risks arising out of tax audits and enquiries in the UK.  In fiscal 2007, an accrual for tax liabilities of $59.8 million was made. The most significant of
these provisions arose from the French tax audit. The Group made a provision of $26.0 million in fiscal 2007 in respect of certain identified risks reflecting the Groups best estimates of its probable liability. |  | LOGO





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Additionally further provisions of $23.0 million were made in fiscal year 2007 reflecting revised estimates of
probable liabilities identified through the Group-wide review of uncertain tax positions. A further $10.8 million of the accrual was expensed on transition to IFRS.

The Group updated its Group-wide review of uncertain tax positions in 2009 and has made additional provision in respect of potential exposures arising from the contracting structure of the Group and restructurings
previously undertaken in a number of jurisdictions. The impact of this provision is included in the $8.6 million noted above. However, it is possible that the ultimate resolution of ongoing tax inquiries and audits and uncertain tax positions could
result in tax charges that are materially higher or lower than the amounts accrued or provided for.

The Groups UK ship owning subsidiaries
continue to be taxed within the UK tonnage tax regime. A key feature of this regime is that the commercial profits from the ship operations qualifying as tonnage tax activities are adjusted by reference to a formula linked to the tonnage of the
vessels before being taxed at the UK statutory tax rate. The tax charge reflected a net benefit of $6.0 million in fiscal year 2009 compared to $7.5 million in fiscal year 2008 (2007: $0.5 million). This is compared to the UK tax that would be
payable had the Group not elected to join the UK tonnage tax regime. During fiscal year 2007 the UK tax authorities started an enquiry into the amount of profits allocated to tonnage tax from 2003 to 2006 (see Note 12 Taxation to the
Consolidated Financial Statements for more information). The enquiry closed in 2009 with no material adjustment being required.

The Group recognised
net deferred tax liabilities totalling $30.6 million in fiscal 2009 (2008: a deferred tax liability of $16.3 million, 2007: a deferred tax asset of $24.3 million) for the tax effects of temporary differences related to property, plant and equipment,
accrued expenses, share-based payments, convertible loan notes and tax losses. An analysis of these balances is shown in Note 12 Taxation to the Consolidated Financial Statements.

The effective tax rate for fiscal year 2009 has been reduced by the availability of losses in the United States and withholding tax credits and losses in Nigeria
which had not been previously recognised as a deferred tax asset. The benefit in fiscal year 2009 of approximately $18 million is unlikely to recur in the foreseeable future. In 2007 the tax rate was increased by the generation of these losses and
withholding tax credits on which no deferred tax asset was recognised.

The Group has potential future tax deductions, tax credits and Net Operating
Losses (NOLs) in several countries, including, as noted above, the US. With the exception of some of the losses in France and the UK, no deferred tax asset has been recognised in respect of the future benefit of NOLs because the
Group determined, due to an uncertainty over future profits and a history of losses in the jurisdictions concerned, that it is unlikely that tax deductions will be realised based on current estimates of future taxable earnings. Across its
subsidiaries, the Group has NOLs and similar deductions of $148 million, a substantial proportion of which are in the US.

The Company is a tax exempt
1929 Luxembourg Holding Company. The Luxembourg tax law which provides for a special tax regime for 1929 Holding Companies will expire on December 31, 2010. The Group is currently reviewing whether any changes to its corporate structure will be
required as a result of the expiration of this law.

Income from continuing operations

Income from continuing operations decreased 21.6% to $258.5 million for fiscal year 2009 compared to $329.7 million for fiscal year 2008. The decrease in income was a
combination of lower operating activity levels during the year and reduced investment income, partially offset by a reduction in the effective tax rate from 33.0% to 28.5%, where the Group benefited from a tax audit provision reversal reducing the
overall tax charge.

In 2008 income from continuing operations increased 156.0% to $329.7 million for fiscal year 2008 compared to $128.8 million for
fiscal year 2007. The increase in income from continuing operations was primarily due to a combination of the reduction in the effective tax rate, the increased activity levels which generated higher revenues and gross margins from the Groups
projects, greater contributions from joint venture operations and foreign exchange gains from the revaluation of inter-company balances.

Discontinued operations

In November 2008 the Group decided to dispose of its non-core Trunkline business which included only Acergy
Piper and was hence classified as discontinued operations for fiscal years 2008 and 2009. Further, the Trunkline operations, which were previously recorded under continuing operations in fiscal year 2007, were restated as part of discontinued
operations for fiscal year 2007. The sale of Acergy Piper to Saipem (Portugal) Comercio Maritimo S.U. Lda was completed on January 9, 2009 for a net sales consideration of $73.0 million. Prior to being classified as an asset held for
sale, the Group reversed $14.3 million of impairment charges from prior years to operating expenses in discontinued operations.

Discontinued operations
for fiscal year 2009 generated $114.8 million of revenue, all contributed by the Acergy SAM segment. Operating expenses attributable to discontinued operations during fiscal year 2009 amounted to $99.9 million. Net income of $7.2 million was
recorded from discontinued operations for fiscal year 2009 after taking into consideration an impairment charge on Acergy Piper generators and generating sets of $1.0 million and taxation on discontinued operations of $6.7 million.

Discontinued operations for fiscal year 2008 generated $281.8 million of revenue which includes $275.9 million contributed by the Acergy SAM segment.
Operating expenses attributable to discontinued operations during fiscal year 2008 amounted to $320.7 million. A net loss of $22.5 million was incurred from discontinued operations for fiscal year 2008. These results included the $14.3 million
reversal of a previous impairment change relating to Acergy Piper and a $2.1 million taxation credit on discontinued operations.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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77









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                            |  |                 |  |       |  |                 |  | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------ |  | --------------- |  | ----- |  | --------------- |  | 
|Discontinued operations in fiscal year 2007 also included the final completion of the remaining IMR and conventional project work in
Trinidad and Tobago (part of the Acergy NAMEX region) which had commenced prior to the disposal of nine IMR and conventional ships to Cal Dive International Inc during fiscal years 2005 and 2006. Discontinued operations for fiscal year 2007
generated $274.0 million of revenue. This included $211.2 million contributed by the Acergy NEC region, $45.9 million by the Acergy SAM region and $16.9 million by the Acergy NAMEX region. Expenses attributable to discontinued operations during
fiscal year 2007 amounted to $271.2 million resulting in a net income of $5.7 million from discontinued operations for fiscal year 2007 after taking into consideration a taxation credit on discontinued operations amounting to $2.9
million.  Net income In fiscal year 2009 net income for total operations was $265.7 million (2008: $307.2 million, 2007: $134.5 million)  Investment and capital expenditure To develop SURF activity in the business, and add capability, capacity and flexibility, in fiscal year 2005 the Group launched an asset upgrade and rejuvenation
programme. Fiscal year 2007 saw the delivery of the newly converted Polar Queen and Pertinacia, and fiscal year 2008 saw the delivery of the new builds Acergy Viking and Skandi Acergy, as well as Sapura 3000 to the joint
venture, SapuraAcergy. In December 2009 the Group announced the acquisition of Acergy Borealis, a state-of-the-art deepwater pipelay ship, which is expected to drive superior returns for future activity. This differentiating asset, currently being
built at the Sembawang Shipyard in Singapore, is a DP3 dynamic positioning vessel equipped with a 5,000 tonne crane. The Group plans to install a 1,000 tonne J-Lay tower and state-of-the-art 600 tonne S-Lay equipment for worldwide deepwater and
harsh environment operations. Final completion and operational delivery of the ship is scheduled for the first half of fiscal year 2012. Total costs, upon delivery, are expected to be less than $500 million, including approximately $260 million
relating to the acquisition of the ship and delivery as per the original design.  In
addition, in the second half of fiscal year 2010, the Group is expecting the delivery of Acergy Havila (a state-of-the-art dive support ship) and Oleg Strashnov (a heavy lifting construction vessel) which will be delivered
to the Seaway Heavy Lifting joint venture.  In fiscal year 2009 additions to
property, plant and equipment for continuing operations were $131.6 million (2008: $326.6 million, 2007: $235.8 million). There was no capital expenditure for discontinued operations in fiscal year 2009 (2008: $1.4 million, 2007: $0.2
million).  The table below sets out the principal additions of property, plant and
equipment in the last three fiscal years. |  | LOGO                                      
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                            |  | 2009            |  | 2008  |  | 2007            | 
|Construction support ships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                            |  | 53.2            |  | 180.1 |  | 29.3            | 
|Operating equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                            |  | 60.6            |  | 123.4 |  | 189.2           | 
|Land and buildings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                            |  | 13.1            |  | 6.6   |  | 2.4             | 
|Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                            |  | 4.7             |  | 16.5  |  | 14.9            | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                            |  | 131.6           |  | 326.6 |  | 235.8           | 
|The four largest
capital expenditure projects during fiscal year 2009 were:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 
|Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Description of capital expenditure project |  | ($ in millions) | 
|Sonamet construction(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Upgraded facilities                        |  |                 |  |       |  | 37.1            | 
|Acergy Polaris                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Improvements to J-lay tower                |  |                 |  |       |  | 13.4            | 
|Skandi Acergy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Ship conversion                            |  |                 |  |       |  | 12.4            | 
|Acergy Legend                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Class dry-dock                             |  |                 |  |       |  | 9.5             | 
|(a) Classified as an
asset held for sale at year end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|The four largest
capital expenditure projects during fiscal year 2008 were:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 
|Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Description of capital expenditure project |  |                 |  |       |  | ($ in millions) | 
|Acergy Polaris                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 30 year class dry-dock(a)                  |  |                 |  |       |  | 74.5            | 
|Skandi Acergy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Ship conversion                            |  |                 |  |       |  | 34.5            | 
|Acergy Petrel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Purchase of vessel                         |  |                 |  |       |  | 31.7            | 
|Toisa Proteus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Flexible lay system                        |  |                 |  |       |  | 27.9            | 



|(a) | This includes capital expenditure on Acergy Polaris for its 30 year class dry-dock carried out between May 2008 and January 2009 and the additional installation of the
Deep Water Stinger.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





LOGO



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78





Financial Review and Statements:

Financial Review continued



The four largest capital expenditure projects during fiscal year 2007 were:



|               |  |                                            |  |                
|-------------- |  | ------------------------------------------ |  | ---------------
|Assets         |  | Description of capital expenditure project |  | ($ in millions)
|Polar Queen    |  | Ship conversion                            |  | 117.9          
|Pertinacia     |  | Ship conversion                            |  | 32.7           
|Acergy Polaris |  | New J-Lay tower(a)                         |  | 27.2           
|Toisa Proteus  |  | Flexible lay system and ship preparation   |  | 18.3           



|(a) | To ensure consistency of reporting, the new J-Lay (deepwater pipelay) system which has been installed onboard deepwater pipelay and construction barge Acergy Polarisis
classified as maintenance capital expenditure as it replaces an existing system. This is despite an evolving specification which has resulted in a significantly more advanced J-Lay system than was replaced.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Capital expenditure planned for fiscal year 2010

Planned
capital expenditure on property, plant and equipment for fiscal year 2010 is approximately $340 million. The majority of the expenditure will be for the purchase of Acergy Borealis, as well as for further upgrading and rejuvenation of the
fleet which operates across the various segments. In addition, the subsidiary, Acergy Havila, is expecting capital expenditure of approximately $180 million upon delivery of Acergy Havila. The 2010 capital expenditure is expected to be
financed from existing cash resources, with the exception of Acergy Havila which will be financed through the loan facility described in Note 30 Borrowings to the Consolidated Financial Statements.

Divestitures

As at fiscal year end 2009, assets held for sale
and the related business segments were:



|                                    |  |      |  |      |  |     
|----------------------------------- |  | ---- |  | ---- |  | ----
|For the fiscal year (in $ millions) |  | 2009 |  | 2008 |  | 2007
|Acergy AME(a)                       |  | 1.1  |  | 1.1  |  | 1.1 
|Acergy NEC(b)                       |  | 1.0  |  | 74.4 |  |    
|Acergy NAMEX                        |  | 0.1  |  |     |  |    
|Acergy AFMED(c)                     |  | 86.5 |  |     |  |    
|Total                               |  | 88.7 |  | 75.5 |  | 1.1 



|(a) | This relates to the land, buildings and office equipment in Balikpapan, Indonesia in Acergy AME. The Group expects to sell the assets in fiscal year 2010 as part of the decision
to dispose of certain Indonesian assets involved with shallow water and diving activities.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | This relates to the disposal of the Trunkline business in 2008 including Acergy Piper, a semi-submersible pipelay barge which was sold on January 9, 2009. The 2009
value represents equipment purchased for Acergy Piperthat is expected to be sold in 2010.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | This relates to property, plant and equipment owned by the Sonamet and Sonacergy subsidiaries that has been classified as an asset held for sale as a result of the expected sale
of 19% of the Groups interest in 2010. See Note 21 Assets classified as held for sale to the Consolidated Financial Statements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Business segments results

The Groups operations were managed through five geographical segments. In 2009 it was decided to
combine the regional structures into Territory 1 and Territory 2 in order to improve our commercial focus and the co-ordination and utilisation of worldwide resources.

Territory 1 comprises Northern Europe and Canada, and Asia and Middle East.

Territory 2 comprises Africa and Mediterranean, North America and Mexico and South America.

Corporate manages activities that serve more than one segment.

The chief operating decision maker is the Chief Executive Officer
of Acergy S.A. He is assisted by the Chief Operating Officer of Acergy S.A. who is supported by the Senior Vice President of each Territory. Each region within the Territories is managed by a Vice President who is responsible
for all aspects of the projects within the relevant segment, from initial tender to completion. Each segment is accountable for income and losses for such projects. One segment may provide support to other segments; an example is the Frade project
where Acergy NAMEX provides project management support to Acergy SAM.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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79









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                      |  |         |  |                      |  |         |  |                      |  |         |  | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------- |  | ------- |  | -------------------- |  | ------- |  | -------------------- |  | ------- |  | 
|Territory 1  Acergy Northern Europe and Canada (NEC) This segment
includes all activities in Northern Europe and Eastern Canada and manages the Acergy/Subsea 7 project-specific joint venture operations. Its offices are based in Aberdeen, UK; Stavanger, Norway; Moscow, Russia; and St Johns, Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | LOGO                
|For the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 2009 (in $ millions) |  | %       |  | 2008 (in $ millions) |  | %       |  | 2007 (in $ millions) |  | %       | 
|Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 648.8                |  | 29.4(a) |  | 843.1                |  | 33.4(a) |  | 696.6                |  | 28.9(a) | 
|Operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | (519.7)              |  | 30.9(b) |  | (574.5)              |  | 30.7(b) |  | (509.2)              |  | 27.4(b) | 
|Net income before tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 88.6                 |  |         |  | 185.1                |  |         |  | 145.5                |  |         | 
|(a)  Segment
revenue as a percentage of total revenue from continuing operations. (b)  Segment operating expenses
as a percentage of total operating expenses from continuing operations.  Investment In fiscal year 2007 the Group entered into a $180.0 million agreement with Havila Shipping ASA for a new build diving support
ship for Acergy NEC which is expected to join the fleet in the second half of 2010. The ship, Acergy Havila,will be a state-of-the-art diving support ship and is specifically designed for efficient diving operations in the harshest
environments. Acergy Havilawill be owned by Acergy Havila Limited, a subsidiary in which the Group has a 50% ownership, and will be operated by Acergy for a period of ten years.  In fiscal year 2007 the Group signed a new lease agreement with Volstad Shipping AS for a five
year charter of the new build ship Acergy Merlinfor the IMR and Survey market. The charter agreement for Acergy Merlinwas cancelled in February 2009 following a reduction in the level of forecast IMR and Survey work. A charge has
been recorded in fiscal year 2009 of $6.5 million, being the cost of cancelling the charter agreement.  In fiscal year 2009, the Group decided not to exercise the renewal option for Normand Mermaidlease agreement with lessor Solstad Shipping AS.  Revenue Acergy NECs revenue from continuing operations for fiscal year 2009 was $648.8 million representing 29.4% of total revenue from continuing operations, a decrease of $194.3 million compared to $843.1million in
fiscal year 2008. The decrease reflected lower activity levels, as anticipated, and lower ship utilisation in the highly competitive North Sea market. All business areas were affected by the economic downturn; SURF activity, revenues declined to
$506.7 million in fiscal year 2009 compared to $647.0 million in fiscal year 2008; IMR and Survey activities also declined with revenues of $142.1 million compared to $196.1 million in fiscal year 2008. The market conditions and reduced investment
in the segment have also resulted in new project awards of smaller value in comparison to the main revenue generating projects which reached maturity in 2008. Main project revenue contributors for fiscal year 2009 were Dong Nini East, Ormen Lange,
Gjoa and EnCana Deep Panuke which made good progress during the year.  This
segments revenue in fiscal year 2008 of $843.1 million represented 33.4% of total revenue from continuing operations, an increase of $146.5 million compared to $696.6 million in fiscal year 2007. The increase was driven by higher levels of
SURF activity which reported revenue of $647.0 million compared to $589.1 million in fiscal year 2007, and IMR and Survey activity which contributed revenue of $196.1 million compared to $107.5 million in fiscal year 2007. These results reflected
good progress on SURF projects such as Marathon Volund, Sage Hot Tap, Miskar and the Tyrihans Subsea installation. In addition the number of chargeable vessel days increased following the delivery of Skandi Acergyduring fiscal year 2008.  Operating expenses Acergy NECs operating expenses for fiscal year 2009 were $519.7 million representing 30.9% of total operating expenses from continuing operations, a decrease of
$54.8 million compared to $574.5 million in fiscal year 2008. Operating expenses were 80.1% of the segments revenue compared to 68.1% in fiscal year 2008. Operating expenses for fiscal year 2008 included a credit of $30.0 million related to
the settlement of a Norwegian defined benefit pension scheme. Excluding the settlement, operating expenses represented 80.1% of the segments revenue in fiscal 2009 compared to 71.7% in 2008. The increase predominately reflects the additional
operating expenses on the Marathon Volund Project which completed during fiscal year 2009, although commercial negotiations remain ongoing.  This segments operating expenses for fiscal year 2008 were $574.5 million representing 30.7% of total operating expenses from continuing operations, an increase
of $65.3 million compared to $509.2 million in fiscal year 2007. This increase of $65.3 million included a credit of $30.0 million arising on the settlement of a Norwegian defined benefit pension scheme in fiscal year 2008. Operating expenses were
68.1% of the segments revenue in fiscal 2008 compared to 73.1% in fiscal year 2007. Excluding the settlement credit, operating expenses as a percentage of revenue for fiscal year 2008 would have been broadly in line with fiscal year
2007.  Net income before tax Acergy NECs net income before tax for fiscal year 2009 was $88.6 million, a decrease of $96.5 million compared to $185.1 million in fiscal year 2008. The
decrease in fiscal year 2009 is primarily due to a reduction in gross profit of $139.5 million due to lower project activity levels and an increase in operating expenses on the Marathon Volund Project which completed during the fiscal year 2009,
although commercial negotiations remain ongoing. This was partially offset by a reduction in administrative expense of $17.9 million following cost reduction measures taken during the year and an increase in other gains and losses of $30.3 million
primarily due to positive foreign exchange movements. | 





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Financial Review and Statements:

Financial Review continued



In fiscal year 2008 the segments net income before tax was $185.1 million, an increase of $39.6 million
compared to $145.5 million in fiscal year 2007. The increase in fiscal year 2008 was primarily due to increased gross profit of $81.2 million from projects due to higher project activity and the benefit of the $33.0 million gain arising on the
settlement of a Norwegian defined benefit pension scheme in fiscal year 2008. The increase in net income before tax was partially offset by a $30.4 million reduction in other gains and losses due largely to foreign exchange movements resulting in a
loss of $11.7 million in fiscal year 2008 compared to a profit of $18.7 million in fiscal year 2007.

The following table sets forth the most significant
recent or ongoing projects in the Acergy NEC segment:



|                               |  |                                                                                                  
|------------------------------ |  | -------------------------------------------------------------------------------------------------
|Project name                   |  | Description                                                                                      
|Lump sum SURF projects:        |  |                                                                                                  
|BP Skarv                       |  | Project offshore Norway, being executed during 2009 to 2011 for BP.                              
|Britannia Satellites           |  | Project offshore United Kingdom, executed during 2005 to 2007 for ConocoPhillips.                
|Deep Panuke                    |  | Project offshore Canada, being executed during 2008 to 2011 for Encana Corporation.              
|Gjoa Umbilical Riser           |  | Project offshore Norway, being executed during 2008 to 2010 for StatoilHydro.                    
|Miskar                         |  | Project offshore Tunisia, executed during 2007 to 2008 for British Gas.                          
|Njord Gas Export               |  | Project offshore Norway, executed during 2005 to 2008 for StatoilHydro.                          
|Nini East Development Project  |  | Project offshore Denmark, being executed during 2008 to 2010 for DONG Energy.                    
|Ormen Lange                    |  | Project offshore Norway, executed during 2008 to 2009 for StatoilHydro.                          
|Talisman Scapa                 |  | Project offshore United Kingdom, executed during 2009 for Talisman.                              
|Trym Field Development Project |  | Project offshore Norway, being executed during 2009 to 2010 for DONG Energy.                     
|Tyrihans Subsea                |  | Project offshore Norway, executed during 2006 to 2008 for StatoilHydro.                          
|SAGE Hot Tap                   |  | Project offshore United Kingdom, executed during 2007 to 2008 for ExxonMobil.                    
|Volund                         |  | Project offshore Norway, executed during 2007 to 2009 for Marathon Petroleum.                    
|                               | 
|Day rate IMR projects:         |  |                                                                                                  
|Hydro Frame Agreement          |  | Project offshore Norway, expected to be executed during the period 1999 to 2010 for StatoilHydro.
|                               | 
|SURF/IMR/Survey projects:      |  |                                                                                                  
|BP IMR UK                      |  | Project offshore United Kingdom, expected to be executed during 2008 to 2012 for BP.             
|CNR Frame Agreement            |  | Project offshore United Kingdom, expected to be executed during 2006 to 2010 for CNR.            
|DONG Energy Frame Agreement    |  | Project offshore North Sea, expected to be executed during 2008 to 2012 for DONG Energy.         







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                      |  |        |  |                      |  |        |  |                      |  |        |  | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------- |  | ------ |  | -------------------- |  | ------ |  | -------------------- |  | ------ |  | 
|Acergy Asia and Middle East (AME) This segment includes all activities in Asia Pacific, India, and Middle East and includes the Malaysian joint venture, SapuraAcergy, with SapuraCrest Petroleum Berhad. It has its offices in Singapore and Perth,
Australia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | LOGO                
|For the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 2009 (in $ millions) |  | %      |  | 2008 (in $ millions) |  | %      |  | 2007 (in $ millions) |  | %      | 
|Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 206.0                |  | 9.3(a) |  | 180.8                |  | 7.2(a) |  | 102.4                |  | 4.3(a) | 
|Operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | (156.9)              |  | 9.3(b) |  | (129.0)              |  | 6.9(b) |  | (101.1)              |  | 5.4(b) | 
|Net income/(loss) before tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 38.1                 |  |        |  | 17.2                 |  |        |  | (15.5)               |  |        | 
|(a)  Segment
revenue as a percentage of total revenue from continuing operations. (b)  Segment operating expenses
as a percentage of total operating expenses from continuing operations.  Investment Toisa Proteus, which is in its final year of a three year charter from the Toisa/Sealion Group of companies, joined the
fleet during the second quarter of fiscal year 2007. The ship completed its conversion programme and commenced working for the segments projects during the third quarter of fiscal year 2007. In addition, Sapura 3000, a new build ship
within the SapuraAcergy joint venture, was delivered in fiscal year 2008. Fiscal year 2009 operations included the final offshore phase of the Kikeh and Mumbai High Seas (MHS) Projects.  Revenue Acergy AMEs revenue from continuing operations for fiscal year 2009 was $206.0 million representing 9.3% of the total revenue from continuing operations, an increase of $25.2 million compared to $180.8
million in fiscal year 2008. The increase reflects the segments strategy to focus its resources on the SURF market and progress of the segments portfolio of SURF projects to more advanced stages of execution. Projects which made good
progress during fiscal year 2009 included Van Gogh, Pyrenees and Al Shaheen and the Pluto Project, which remained in early stages.  This segments revenue from continuing operations of $180.8 million represented 7.2% of the total revenue from continuing operations in fiscal year 2008, an
increase of $78.4 million compared to $102.4 million in fiscal year 2007. The increase was driven by SURF projects, which contributed revenue of $178.0 million, compared to $88.0 million in fiscal year 2007 and included Vincent, Maari and Liu Hua
Projects, which completed during the year and good progress on other SURF projects, including Van Gogh and Pluto.  Operating expenses Acergy AMEs operating expenses for fiscal year 2009 were $156.9 million. This
represented 9.3% of total operating expenses from continuing operations, an increase of $27.9 million compared to $129.0 million in fiscal year 2008. Operating expenses were 76.2% of the segments revenue compared to 71.3% in fiscal year 2008.
The increase was primarily due to the increase in SURF project activity.  This
segments operating expenses in fiscal year 2008 were $129.0 million representing 6.9% of total operating expenses from continuing operations, an increase of $27.9 million from $101.1 million in fiscal year 2007. The increase was primarily due
to the increase in SURF project activity.  Net income/(loss) before
tax Acergy AMEs net income before tax for fiscal year 2009 was $38.1 million, compared to $17.2 million in fiscal year 2008, an increase of
$20.9 million. This increase was primarily due to a significant contribution from the Van Gogh and Bluewater Al Sheehan Projects and the SapuraAcergy joint venture which contributed a $9.7 million profit in fiscal year 2009 compared with a loss of
$15.4 million in fiscal year 2008. The turnaround of the joint ventures result was due to improvements in the Kikeh and MHS Projects performance and Sapura 3000being available for the full year allowing greater
utilisation.  This segments net income before tax for fiscal year 2008 was
$17.2 million, compared to a net loss before tax of $15.5 million in fiscal year 2007. The increase in profitability is primarily due to significant project contributions from the Liu Hua and Maari Projects. The increased profitability was partially
offset by a loss of $15.4 million from the SapuraAcergy joint venture in fiscal 2008 (2007: a loss of $10.3 million) due to the late delivery of Sapura 3000. | 





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Financial Review and Statements:

Financial Review continued



The following table sets forth the most significant recent and ongoing projects in the Acergy AME segment:



|                                |  |                                                                                                                                              
|------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------
|Project name                    |  | Description                                                                                                                                  
|Lump sum SURF projects:         |  |                                                                                                                                              
|Bluewater Al-Shaheen            |  | Project offshore Qatar, executed during 2009 for Bluewater.                                                                                  
|Dai Hung                        |  | Project offshore Vietnam, executed during 2005 to 2008 for Petrovietnam Exploration and Production Company.                                  
|Devil Creek Development Project |  | A SapuraAcergy project offshore Australia, expected to be executed during 2009 to 2011 for Apache                                            
|                                |  | Energy Ltd utilising Sapura 3000.                                                                                                            
|Gumusut                         |  | A SapuraAcergy project offshore Malaysia, expected to be executed during 2009 to 2012 for Sabah Shell Petroleum Co Ltd utilising Sapura 3000.
|Kerisi                          |  | Project offshore Indonesia, executed during 2006 to 2007 for ConocoPhillips.                                                                 
|Kikeh                           |  | A SapuraAcergy project offshore Malaysia, executed during 2007 to 2009 for Murphy Sabah Oil Co utilising Sapura 3000.                        
|Maari                           |  | Project offshore New Zealand, executed during 2006 to 2008 for Tablelands Development.                                                       
|Liu Hua                         |  | Project offshore China, executed during 2007 to 2008 for CNOOC.                                                                              
|Pluto                           |  | Project offshore Australia, being executed during 2008 to 2010 for Woodside.                                                                 
|Pyreness Project                |  | Project offshore Australia, being executed during 2009 to 2010 for BHP Billiton.                                                             
|Van Gogh                        |  | Project offshore Australia, executed during 2007 to 2009 for Apache Energy.                                                                  
|Vincent Development             |  | Project offshore Australia, executed during 2006 to 2008 for Woodside.                                                                       

Territory 2

Acergy Africa and Mediterranean (AFMED)

This segment comprises all activities within the Africa and Mediterranean region and has its office in Suresnes, France. It operates fabrication yards in Nigeria,
Angola and Gabon and also manages project specific joint ventures such as the Nigerian joint venture, Oceon.



|                      |  |                      |   |  |         |  |                      |   |  |         |  |                      |  |        
|--------------------- |  | -------------------- | - |  | ------- |  | -------------------- | - |  | ------- |  | -------------------- |  | -------
|For the fiscal year   |  | 2009 (in $ millions) |   |  | %       |  | 2008 (in $ millions) |   |  | %       |  | 2007 (in $ millions) |  | %      
|Revenue               |  | 999.7                |   |  | 45.3(a) |  | 1,175.9              |   |  | 46.6(a) |  | 1,398.4              |  | 58.1(a)
|Operating expenses    |  | (746.5               | ) |  | 44.3(b) |  | (897.1               | ) |  | 47.9(b) |  | (1,069.8)            |  | 57.5(b)
|Net income before tax |  | 178.8                |   |  |         |  | 219.3                |   |  |         |  | 200.1                |  |        



|(a) | Segment revenue as a percentage of total revenue from continuing operations.
|--- | ----------------------------------------------------------------------------

|(b) | Segment operating expenses as a percentage of total operating expenses from continuing operations.
|--- | --------------------------------------------------------------------------------------------------

Revenue

Acergy AFMEDs revenue from continuing operations for fiscal year 2009 was $999.7 million
representing 45.3% of total revenue from continuing operations, a decrease of $176.2 million compared to $1,175.9 million in fiscal year 2008. The decrease primarily reflected the result of lower activity levels in both SURF and conventional markets
caused by delays in new project awards, as a result of the general economic downturn. As anticipated this was reflected in a lower utilisation of all the segments ships, with the exception of Acergy Polaris. Major SURF projects,
including Block 15 and PazFlor, progressed well and contributed revenue of $617.2 million compared to $735.8 million in 2008 and conventional projects, including EPC4 A and Angola LNG, contributed revenue of $382.5 million compared to $440.1 million
in fiscal year 2008.

This segments revenue from continuing operations for fiscal year 2008 was $1,175.9 million representing 46.6% of total
revenue from continuing operations, a decrease of $222.5 million compared to $1,398.4 million in fiscal year 2007. The decrease was primarily due to lower activity levels resulting from the unusually high level of planned dry-dock on Acergy
Polaris, Acergy Legend and Acergy Hawk during the second half of fiscal year 2008. During fiscal year 2008, good progress was made on major SURF projects, including Moho Bilondo, Tombua Landana, Block 15 and the successful
completion of the Kizomba C-Mondo and Kizomba C-Saxi Batuque Projects, as well as Conventional projects, including EPC2B. SURF projects contributed revenue of $735.8 million compared to $1,055.4 million in fiscal year 2007, and conventional projects
contributed revenue of $440.1 million compared to $343.0 million in fiscal year 2007.

Operating expenses

Acergy AFMEDs operating expenses in fiscal year 2009 were $746.5 million compared to $897.1 million in fiscal year 2008, representing 44.3% of our total
operating expenses from continuing operations, a decrease of $150.6 million. The decrease is primarily due to lower activity levels with operating expenses representing 74.7% of revenue compared to 76.3% in fiscal year 2008. Maintenance and repair
costs incurred on Acergy Polaris related to its extensive planned dry-dock, which completed during the first quarter of fiscal year 2009, however the operating margin improved in fiscal year 2009 as a result of operational efficiencies.







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |                                                                                                                                                                          |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | 
|This segments operating expenses in fiscal year 2008 were $897.1 million. This represented 47.9% of total operating expenses
from continuing operations, a decrease of $172.7 million compared to $1,069.8 million in fiscal year 2007. Operating expenses were 76.3% of the segments revenue compared to 76.5% for fiscal year 2007. The decrease primarily reflected the lower
levels of project activity due to the high levels of dry-dock during the second half of fiscal year 2008. It was also explained by the completion of a number of major projects, including Greater Plutonio, during fiscal 2007 for which high levels of
operating expenditure were required, compared to fiscal year 2008 when the major projects within the portfolio were at less advanced stages and therefore required less operating expenditure.  Net income before tax Acergy AFMEDs net income before tax in fiscal year 2009 was $178.8 million, a decrease of $40.5 million compared to $219.3 million in fiscal year 2008. The reduction in net income before tax was primarily due
to a lower gross profit performance reflecting the reduced activity levels partially offset by the positive foreign exchange movements, a positive contribution from Sonamet and a $14.9 million reduction in administrative expenses; partially offset
by a lower contribution from other gains and losses with a gain of $5.9 million in fiscal year 2009, compared to a gain of $34.8 million in fiscal year 2008 which benefited from foreign exchange gains arising from revaluation of inter-company
balances.  This segments net income before tax in fiscal year 2008 was $219.3
million, an increase of $19.2 million compared to $200.1 million in fiscal year 2007. The increase was primarily due to a $55.0 million positive improvement in the contribution from other gains and losses with a gain of $34.8 million being recorded
in fiscal year 2008 compared to a loss of $20.2 million in fiscal year 2007, despite lower project revenue during fiscal year 2008. The largest element of this improvement related to foreign exchange gains of $39.0 million (2007: $11.6 million loss)
arising principally from the revaluation of inter-company balances due to foreign exchange rate movements particularly in the fourth quarter.  The following table sets forth the most significant recent or ongoing projects in the Acergy AFMED segment: |  | LOGO                                                                                                                                                                    
|Project name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Description                                                                                                                                                              | 
|Lump sum Conventional projects:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                          | 
|Angola LNG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Project offshore Angola, being executed during 2008 to 2010 for Angola LNG.                                                                                              | 
|Block 17/18                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Project offshore Angola, being executed during 2009 to 2010 for Total and BP.                                                                                            | 
|EPC2B                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Project offshore Nigeria, executed during 2005 to 2008 for ExxonMobil.                                                                                                   | 
|EPC4A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Project offshore Nigeria, being executed during 2009 to 2010 for ExxonMobil.                                                                                             | 
|EGP3B                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Project offshore Nigeria, being executed during 2010 to 2013 for Chevron Texaco.                                                                                         | 
|Mafumeira                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Sonamet/Sonacergy project for fabrication in 2007 and 2008 of jacket and deck for Chevron Texaco.                                                                        | 
|OSO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Project offshore Nigeria, executed in 2007 for ExxonMobil.                                                                                                               | 
|Sonamet/Sonacergy Projects                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Portfolio of shallow water and deepwater fabrication projects performed at the fabrication facility in Lobito, Angola on behalf of the Group and other external clients. | 
|Lump sum SURF projects:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                          | 
|Agbami                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Project offshore Nigeria, executed during 2005 to 2008 for Star Deepwater Petroleum.                                                                                     | 
|Block 15                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Project offshore Angola, being executed during 2008 to 2010 for ExxonMobil.                                                                                              | 
|Cameron USAN Manifolds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Project offshore Nigeria, being executed during 2008 to 2011 for Cameron.                                                                                                | 
|Greater Plutonio                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Project offshore Angola, executed during 2004 to 2007 for BP.                                                                                                            | 
|Kizomba C Mondo                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Project offshore Angola, executed during 2006 to 2008 for ExxonMobil.                                                                                                    | 
|Kizomba C Saxi Batuque                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Project offshore Angola, executed during 2006 to 2008 for ExxonMobil.                                                                                                    | 
|Moho Bilondo                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Project offshore Congo, being executed during 2005 to 2010 for Total.                                                                                                    | 
|PazFlor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Project offshore Angola, being executed during 2008 to 2011 for Total.                                                                                                   | 
|Tombua Landana                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Project offshore Angola, executed during 2006 to 2009 for Chevron.                                                                                                       | 





LOGO



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Financial Review and Statements:

Financial Review continued



Acergy North America and Mexico (NAMEX)

This segment includes activities in the United States of America, Mexico, Central America and Western Canada and provides project management support for major projects
executed in South America. Its office is in Houston, Texas in the United States of America.



|                             |  |                      |  |        |  |                      |     |  |          |  |                      |   |  |       
|---------------------------- |  | -------------------- |  | ------ |  | -------------------- | --- |  | -------- |  | -------------------- | - |  | ------
|For the fiscal year          |  | 2009 (in $ millions) |  | %      |  | 2008 (in $ millions) |     |  | %        |  | 2007 (in $ millions) |   |  | %     
|Revenue                      |  | 57.8                 |  | 2.6(a) |  | 4.4                  |     |  | 0.2(a)   |  | 3.2                  |   |  | 0.1(a)
|Operating (expenses)/income  |  | (19.1)(c)            |  | 1.1(b) |  | 17.2                 | (c) |  | (0.9)(b) |  | (3.2)                |   |  | 0.2(b)
|Net income/(loss) before tax |  | 24.2                 |  |        |  | 17.9                 |     |  |          |  | (5.3                 | ) |  |       



|(a) | Segment revenue as a percentage of total revenue from continuing operations.
|--- | ----------------------------------------------------------------------------

|(b) | Segment operating expenses as a percentage of total operating expenses from continuing operations.
|--- | --------------------------------------------------------------------------------------------------

|(c) | The amount includes income from inter-segmental expenditure sharing arrangements.
|--- | ---------------------------------------------------------------------------------

Revenue

Acergy NAMEXs revenue from continuing operations for fiscal year 2009 was $57.8 million, an
increase of $53.4 million compared to $4.4 million in fiscal year 2008, due primarily to the successful execution and completion of the Perdido and Hess Conger Projects.

This segments revenue from continuing operations for fiscal year 2008 was $4.4 million, an increase of $1.2 million compared to $3.2 million in fiscal year 2007, due primarily to the commencement of the ultra
deepwater Perdido Project.

Operating (expenses)/income

Acergy NAMEXs operating expenses in fiscal year 2009 were $19.1 million compared to $17.2 million operating income in fiscal year 2008, an increase of $36.3 million, due primarily to expenses incurred for activity related to the
Perdido and Hess Conger Projects and this segments ongoing support for cross regional projects in Acergy SAM which contributed towards operating expenses being shared.

This segments operating income in fiscal year 2008 was $17.2 million compared to $3.2 million operating expenses in fiscal year 2007. This segment is directly involved with various cross-regional projects
which contributed towards expenditures being shared and allocated to other regions.

Net income/(loss) before tax

The segments net income before tax in fiscal year 2009 was $24.2 million, an increase of $6.3 million compared to $17.9 million in fiscal year 2008. The increase
was primarily due to a gross profit improvement of $17.1 million including the contribution from the Perdido and Hess Conger Projects, income shared on an equal basis with Acergy SAM in relation to the Frade Project, partially offset by a decrease
of $9.2 million in other gains and losses arising from the revaluation of inter-company balances due to foreign exchange rate movements.

This
segments net income before tax in fiscal year 2008 was $17.9 million, an increase of $23.2 million, compared to a net loss before tax of $5.3 million in fiscal year 2007. The increase was primarily due to the recovery of general administrative
expenses and other support costs pursuant to inter-segmental expenditure sharing arrangements during fiscal year 2008 compared to fiscal year 2007. Included in the segments net income was a portion of the net income resulting from the PRA-1
and Frade Projects, which were shared on an equal basis with Acergy SAM.

The table below sets out the most significant recent or ongoing projects in
the Acergy NAMEX segment:



|                        |  |                                                                                       
|----------------------- |  | --------------------------------------------------------------------------------------
|Project name            |  | Description                                                                           
|Lump sum SURF projects: |  |                                                                                       
|Hess Conger             |  | Project offshore the United States of America, executed during 2009 for Amerada Hess. 
|Perdido                 |  | Project offshore the United States of America, executed during 2008 to 2009 for Shell.

Acergy South America (SAM)

This segment includes
all activities in South America and the islands of the southern Atlantic Ocean and has its office in Rio de Janeiro, Brazil. Its principal operating location is Macae, Brazil.



|                             |  |                      |   |  |         |  |                      |   |  |         |  |                      |   |  |        
|---------------------------- |  | -------------------- | - |  | ------- |  | -------------------- | - |  | ------- |  | -------------------- | - |  | -------
|For the fiscal year          |  | 2009 (in $ millions) |   |  | %       |  | 2008 (in $ millions) |   |  | %       |  | 2007 (in $ millions) |   |  | %      
|Revenue                      |  | 288.8                |   |  | 13.1(a) |  | 320.1                |   |  | 12.7(a) |  | 202.0                |   |  | 8.4(a) 
|Operating (expenses)/income  |  | (224.7               | ) |  | 13.3(b) |  | (268.9               | ) |  | 14.3(b) |  | (188.9)              |   |  | 10.2(b)
|Net income/(loss) before tax |  | 35.3                 |   |  |         |  | 27.1                 |   |  |         |  | (0.3                 | ) |  |        



|(a) | Segment revenue as a percentage of total revenue from continuing operations.
|--- | ----------------------------------------------------------------------------

|(b) | Segment operating expenses as a percentage of total operating expenses from continuing operations.
|--- | --------------------------------------------------------------------------------------------------







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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85









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                            |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -------------------------------------------------------------------------- |  | 
|Revenue Acergy SAMs
revenue from continuing operations for fiscal year 2009 was $288.8 million representing 13.1% of total revenue from continuing operations, a decrease of $31.3 million compared to $320.1 million in fiscal year 2008. The decrease reflected an
anticipated lower contribution from the segments lump-sum SURF project portfolio, due to the completion in the prior fiscal year of the PRA-1 Project, partially offset by the good contribution from the Frade and Roncador Manifolds Projects
which completed during the fiscal year. The three ships on long-term service arrangement, Acergy Condor, Acergy Harrier and Pertinacia, achieved full utilisation outside of dry-docks and generated similar levels of revenue
compared to fiscal year 2008. During fiscal year 2009 Acergy SAMs segment was awarded a fourth long-term service arrangement contract by Petrobras for the Polar Queen which will provide flexible laying services for a period of four
years commencing in fiscal year 2010.  This segments revenue from continuing
operations for fiscal year 2008 was $320.1 million representing 12.7% of total revenue from continuing operations, an increase of $118.1 million compared to $202.0 million in fiscal year 2007. The increase was primarily due to higher activity in the
cross-regional lump-sum SURF projects, PRA-1 and Frade, both offshore Brazil, which contributed revenue of $192.4 million compared to $102.7 million in fiscal year 2007. The three ships on long-term service arrangement achieved full utilisation
outside of planned dry-docks and contributed revenue of $120.4 million compared to $80.5 million in fiscal year 2007.  Operating expenses Acergy SAMs operating expenses for fiscal year 2009 were $224.7 million representing
13.3% of total operating expenses from continuing operations, a decrease of $44.2 million compared to $268.9 million in fiscal year 2009. The decrease was primarily due to the lower activity levels in the cross-regional SURF projects in fiscal year
2009.  This segments operating expenses for fiscal year 2008 were $268.9
million representing 14.3% of total operating expenses from continuing operations, an increase of $80.0 million compared to $188.9 million in fiscal year 2007. The increase was primarily due to higher activity levels in the cross-regional SURF
projects and a full years operating expenses relating to the Pertinacia.  Net income/(loss) before tax Acergy SAMs net income before tax in fiscal year 2009 was $35.3 million compared to $27.1 million in
fiscal year 2008, an increase of $8.2 million primarily due to an improved gross profit performance of $12.9 million due to the successful completion of the Frade and Roncador Manifold Projects, partially offset by a negative variance of $6.5
million on other gains and losses following measures taken to reduce the segments foreign exchange exposure.  This segments net income before tax in fiscal year 2008 was $27.1 million compared to a $0.3 million net loss before tax in fiscal year 2007. The increase primarily reflected higher activity in the
cross-regional SURF projects, PRA-1 and Frade, and a positive contribution from Pertinacia which operated for the full twelve months of the fiscal year 2008 compared to only seven months in fiscal year 2007. The increase also reflected a positive
contribution from Acergy Harrier due to increased profitability following resolution of the thruster problems experienced in fiscal year 2007.  The following table sets out the most significant recent or ongoing projects in the Acergy SAM segment: |  | LOGO                                                                      
|Project name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Description                                                                | 
|Lump sum SURF projects:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                            | 
|Frade                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Project offshore Brazil, executed during 2006 to 2009 for Chevron Texaco.  | 
|PRA-1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Project offshore Brazil, executed during 2006 to 2008 for Petrobras.       | 
|Roncador Manifolds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Project offshore Brazil, executed during 2009 for Petrobras.               | 
|Ships on long-term service arrangements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 
|Acergy Condor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Projects offshore Brazil, being executed during 2006 to 2010 for Petrobas. | 
|Acergy Harrier                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | Projects offshore Brazil, being executed during 2006 to 2010 for Petrobas. | 
|Pertinacia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | Projects offshore Brazil, being executed during 2007 to 2013 for Petrobas. | 
|Polar Queen                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Projects offshore Brazil, being executed during 2010 to 2013 for Petrobas. | 

Corporate

Acergy Corporate (CORP)

This segment includes all activities that serve more than one segment and
includes: marine assets which have global mobility including construction and flowline lay support ships, ROVs and other mobile assets that are not allocated to any one segment; management of offshore personnel; captive insurance activities;
management and corporate services provided for the benefit of all of our businesses; NKT Flexibles, a joint venture that manufactures flexible pipeline and risers; and SHL, a joint venture with a subsidiary of the Russian Oil Company
Lukoil-Kaliningradmorneft plc, which operates the heavy lift ship Stanislav Yudin.

Principal executive offices are located in Hammersmith,
London, United Kingdom.





LOGO



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Financial Review and Statements:

Financial Review continued





|                             |  |                      |   |  |        |  |                      |   |  |          |  |                      |  |         
|---------------------------- |  | -------------------- | - |  | ------ |  | -------------------- | - |  | -------- |  | -------------------- |  | --------
|For the fiscal year          |  | 2009 (in $ millions) |   |  | %      |  | 2008 (in $ millions) |   |  | %        |  | 2007 (in $ millions) |  | %       
|Revenue                      |  | 7.7                  |   |  | 0.3(a) |  | (1.9                 | ) |  | (0.1)(a) |  | 3.7                  |  | 0.2(a)  
|Operating (expenses)/income  |  | (16.9                | ) |  | 1.0(b) |  | (21.9                | ) |  | 1.2(b)   |  | 13.1                 |  | (0.7)(b)
|Net (loss)/income before tax |  | (3.7                 | ) |  |        |  | 25.7                 |   |  |          |  | 19.4                 |  |         



|(a) | Segment revenue as a percentage of total revenue from continuing operations.
|--- | ----------------------------------------------------------------------------

|(b) | Segment operating expenses as a percentage of total operating expenses from continuing operations.
|--- | --------------------------------------------------------------------------------------------------

Revenue

Acergy CORPs revenue from continuing operations in fiscal year 2009 was $7.7 million compared to
$1.9 million negative revenue in fiscal year 2008. The revenue in fiscal year 2009 is due to personnel services and related costs charged to the SapuraAcergy joint venture.

Acergy CORPs revenue in fiscal year 2008 was $1.9 million negative revenue compared to $3.7 million positive revenue in fiscal year 2007 due to the reversal of prior year corporate accrued revenue.

Operating (expenses)/income

In fiscal year 2009
the segments operating expenses were $16.9 million, compared to $21.9 million in fiscal year 2008, primarily due to higher recovery of offshore crewing costs partially offset by a $9.8 million impairment charge in respect of under-utilised
operating equipment and a lower contribution from fewer global vessels included in this segment.

In fiscal year 2008 the segments operating
expenses were $21.9 million, compared to an operating income of $13.1 million in fiscal year 2007. Operating income in fiscal year 2007 included an over-recovery arising from positive results in the captive insurance business which did not
materialise in fiscal year 2008.

Net (loss)/income before tax

Acergy CORPs net loss before tax for fiscal year 2009 was $3.7 million compared to net income before tax of $25.7 million in fiscal year 2008. The decrease of $29.4 million was primarily due to a reduction of
$38.5 million from joint ventures, where NKT Flexibles contributed $21.7 million (2008: $45.6 million), reflecting challenging conditions in the flexible pipe market, and a lower contribution from Seaway Heavy Lifting which contributed $15.0 million
(2008: $29.6 million) due to a particularly strong performance in fiscal year 2008. This was partially offset by a $14.6 million increase in gross profit due to an over recovery of offshore personnel costs partially offset by lower utilisation on
fewer global vessels within the Acergy CORP segment in fiscal year 2009.

Acergy CORPs net income before tax for fiscal year 2008 was $25.7
million compared to $19.4 million in fiscal year 2007. The increase was due to significant improvements in the results of the joint ventures which contributed $75.2 million, an increase of $48.5 million on the contribution received in fiscal year
2007. NKT Flexibles contributed $45.6 million (2007: $17.9 million) due to greater demand for flexibles following the increase in global SURF activity levels and Seaway Heavy Lifting contributing $29.6 million (2007: $8.8 million) with a significant
improvement in the fourth quarter of fiscal year 2008 compared to the fourth quarter 2007 when Stanislav Yudin was in dry-dock for the full quarter. These gains were partly offset by $12.1 million in under recovery of offshore personnel
costs.

Liquidity and capital resources

Cash
management constraints

The Groups cash operations are managed and controlled by its treasury department, and cash surpluses and requirements
are identified using consolidated cash flow forecasts. It is not always possible to freely transfer funds across international borders. For example, certain subsidiary companies in France which show a negative net asset position are unable to
release funds to the treasury department without approval from the Board of Directors of the relevant subsidiary. Further approval from the Central Bank of Brazil is required to obtain remittances from Brazil. Access to the $103.6 million cash that
is held by Sonamet and Sonacergy is limited because it would require agreement between the minority shareholder and the Group, as well as approval from the National Bank of Angola for Sonamet.

The Group operated within a liquidity risk management framework which governs its management of short, medium and long-term funding and liquidity requirements. The
Group manages liquidity risk by maintaining what it believes are adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and aiming at matching the maturity profiles of
financial assets and liabilities. Included in Note 30 Borrowings to the Consolidated Financial Statements is a list of undrawn facilities that the Group had at its disposal as of November 30, 2009.

The main uncertainties with respect to primary sources of funds are: project related timing of cash inflows and outflows; timing of the costs relating to investment
in and expansion of the fleet; the ability to agree with clients, in a timely fashion, the amounts due as claims and variation orders; and the availability of cash flows from joint ventures.

Future compliance with debt covenants

As described in Note 30
Borrowings to the Consolidated Financial Statements, the Groups credit facilities contain various financial covenants, including but not limited to, a minimum level of tangible net worth, a maximum level of net debt to earnings
before interest, taxes, depreciation and amortisation (EBITDA), a maximum level of total financial debt to tangible net worth, a minimum level of cash and cash equivalents and an interest







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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87









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |         |  |         |  |         |  | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- |  | ------- |  | ------- |  | 
|cover covenant. The Group must meet the requirements of the financial covenants on a consolidated basis in quarterly intervals on the
last day of February, May, August and November of each year. Given the performance of the business for fiscal year 2009 the Group expects, based on its forecasts for fiscal year 2010, that it will be able to comply with all financial covenants
during fiscal year 2010.  Sources of cash The Groups principal sources of funds for fiscal year 2009 have been cash from operations.  The cash and cash equivalents position of $907.6 million at November 30, 2009 (2008: $573.0
million) is largely attributable to stronger net cash generated from operating activities of $546.1 million compared to $493.1 million achieved in fiscal year 2008. The readily available funds for ongoing operations were: (i) unutilised cash loan
credit facilities of $6.1 million; (ii) cash on hand as at November 30, 2009 of $907.6 million; (iii) the sale of Acergy Piper which realised net $73.0 million on January 9, 2009; and (iv) ongoing cash generated from operations;
less (v) project liabilities of $279.8 million comprising both advances received from customers of $38.6 million and amounts due under construction contracts of $241.2 million where the amounts have been invoiced ahead of project progress. In
respect of amounts available under cash loan credit facilities, a further $68.9 million became available on December 17, 2009, increasing the cash available under cash loan credit facilities to an aggregate of $75.0 million.  There was also a cash balance of $103.6 million (subject to repatriation challenge discussed
above) in Sonamet and Sonacergy which has been classified as assets held for sale.  At November 30, 2008 cash and cash equivalents were $573.0 million, primarily unchanged from 2007 ($582.7 million). The readily available funds for ongoing operations were: (i) unutilised cash loan credit facilities amounting to $100.0
million; (ii) cash on hand as at November 30, 2008 of $573.0 million; and (iii) ongoing cash generated from operations; less (iv) project liabilities of $305.6 million comprising both advances received from customers of $59.8 million and
amounts due under construction contracts of $245.8 million where the amounts have been invoiced ahead of project progress.  The Group believes that its ability to obtain funding from the sources described above will continue to provide the cash flows necessary to satisfy present working
capital and capital expenditure requirements, as well as meet debt repayments and other financial commitments for the next 12 months. The Group also has the ability to raise additional debt and to issue further share capital. However, in light of
the current debt and equity capital market conditions, it may not be able to raise such funds on terms acceptable to the Group or at all.  Acergy also has the ability to source additional cash through its loan facilities further described in Description of indebtedness below.  The Group expects to use cash to fund further upgrading and rejuvenation of the fleet to provide
a platform to support growth initiatives. The summary of generated and used cash flows is as follows: |  | LOGO   
|For fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 2009 $  |  | 2008 $  |  | 2007 $  | 
|Cash and cash equivalents at the beginning of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 573.0   |  | 582.7   |  | 717.5   | 
|Net cash generated from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 546.1   |  | 493.1   |  | 251.3   | 
|Net cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | (100.4) |  | (286.7) |  | (220.8) | 
|Net cash used in financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | (52.0)  |  | (186.1) |  | (190.0) | 
|Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 44.5    |  | (30.0)  |  | 24.7    | 
|Cash balances classified as assets held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | (103.6) |  |        |  |        | 
|Cash and cash equivalents at the end of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 907.6   |  | 573.0   |  | 582.7   | 
|Cash flows generated from operating activities
Cash flows generated from operating activities are derived principally from the collection of receivables due from clients under project contracts. The timing of
invoice preparation for long-term contracts is typically based on progress towards the completion of work, either defined as agreed project milestones or an otherwise agreed staged payment schedule. Cash flows do not always coincide with
the recognition of revenue, as clients are generally required to make advance payments at project commencement. It is the policy, when negotiating a contract, to arrange for cash to be received from the client in advance of the requirement to pay
suppliers, thus ensuring a positive impact on liquidity. The major cash flow movements are disclosed further in the Consolidated Cash Flow Statement. Net cash generated by operating activities during fiscal year 2009 was $546.1 million (2008: $493.1
million) which included an adjustment for non-cash expenses of $243.3 million (2008: $232.5 million), changes in operating assets and liabilities (net of acquisitions) of $97.0 million (2008: $167.0 million) and income taxes paid of $59.9 million
(2008: $213.6 million). At the end of fiscal year 2009 the Group had $21.1 million in advance payments and the performance in cash collection from trade debtors had improved as indicated by the average credit period having decreased to 37 days
compared to 39 days in 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 

Net cash generated by operating activities during fiscal year 2008 was $493.1 million
(2007: $251.3 million ) which included an adjustment for non-cash accounting expenses of $232.5 million (2007: $293.3 million), changes in operating assets and liabilities (net of acquisitions) of $167.0 million (2007: ($100.8) million) and income
taxes paid of $213.6 million (2007: $75.7 million). At the end of fiscal year 2008 the Group had $29.4 million in advance payments and its performance in cash collection from trade debtors had improved as indicated by the average credit period
having decreased to 39 days compared to 57 days in 2007.





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Financial Review and Statements:

Financial Review continued



Net cash flows used in investing activities

Net cash used in investing activities in fiscal year 2009 was $100.4 million compared to $286.7 million in fiscal year 2008.

In fiscal year 2009, this comprised primarily of net cash outflows related to the purchase of property, plant and equipment of $171.8 million (2008: $294.3 million) to further develop the asset base, $20.6 million (2008: $nil) additional
investment in the Seaway Heavy Lifting joint venture and $5.0 million (2008: $15.1 million) of advances to joint ventures. These outflows were partially offset by cash dividends received from joint ventures amounting to $28.0 million (2008: $10.9
million) and inflows from the sale of property, plant and equipment of $73.6 million (2008: $12.2 million) largely relating to the sale of Acergy Piper which raised net $73.0 million.

Net cash used in investing activities in fiscal year 2008 was $286.7 million compared to $220.8 million in fiscal year 2007. In fiscal year 2008, this comprised
primarily of net cash outflows related to the purchase of property, plant and equipment of $294.3 million (2007: $261.0 million) to further develop our asset base and $15.1 million (2007: $0.4 million) of advances to joint ventures. These outflows
were partially offset by cash dividends received from joint ventures amounting to $10.9 million (2007: $24.2 million) and inflows from the sale of property, plant and equipment of $12.2 million (2007: $35.3 million).

Net cash used in financing activities

In fiscal year 2009, net
cash used in financing activities was $52.0 million, compared to net cash used in financing activities of $186.1 million in fiscal year 2008. This reduction was attributable to the absence of share buy backs in 2009 compared to $138.3 million spent
in fiscal year 2008. Net borrowings decreased by $3.5 million to $2.8 million in 2009, and proceeds from option exercises reduced by $2.6 million to $1.6 million. Dividends paid to shareholders increased by $1.9 million. Convertible loan notes
interest of $11.3 million remained the same for fiscal year 2009 and fiscal year 2008. Dividends paid to minority interests reduced by $3.8 million to $4.9 million.

In fiscal year 2008, net cash used in financing activities was $186.1 million, compared to net cash used in financing activities of $190.0 million in fiscal year 2007. This reduction was attributable to a decrease
in share buy backs to $138.3 million in fiscal year 2008 from $146.8 million in fiscal year 2007 and a $6.3 million increase in net borrowings which were partially offset by a $10.1 million decrease in the proceeds of option exercises. Dividends
paid to shareholders increased by $0.8 million. Convertible loan notes interest of $11.3 million and dividends paid to minority interests of $8.7 million both remained the same for fiscal year 2008 and fiscal year 2007.

Description of indebtedness

On October 11, 2006 Acergy
S.A issued $500.0 million in aggregate principal amount of 2.25% convertible notes due 2013. The convertible notes have an annual interest of 2.25% payable semi-annually in arrears on April 11 and October 11 of each year up to and
including fiscal year 2013.

Acergys $400 million credit and guarantee facility comprises $300 million available for the issuance of guarantees
(2008: $300 million) and, as of August 10, 2009, $75 million available for cash drawings. The amount available for cash borrowings will further reduce to $50 million on August 10, 2010 in accordance with the terms of the agreement. Final
maturity will be August 10, 2011. Any unused portion of the cash borrowing facility can be utilised for the issuance of guarantees. As of November 30, 2009, under the $400 million facility Acergy had fully utilised the $300 million
available for guarantee issuance (2008: $207.3 million) and had used $68.9 million of the $75 million loan facility for guarantee issuance (2008: $nil).

On February 26, 2008 the Group executed a $200 million multi-currency revolving guarantee facility with a number of banks from the existing consortium that provided the $400 million amended and restated revolving credit and guarantee
facility. The $200 million facility is secured by a guarantee from Acergy S.A. The $200 million facility can be used for the issuance of performance guarantees in the ordinary course of our business. As of November 30, 2009 $136.7 million (2008
$96.8 million) had been utilised. The facility has a maturity date of February 26, 2013. However performance guarantees can be issued with a maturity up to August 26, 2014.

On October 14, 2008 the company completed a NOK Loan and Guarantee Facility of Norwegian Krone 977.5 million ($173.5 million) for the post delivery financing of the Acergy Havila dive support ship.
Until delivery of the vessel takes place, which is scheduled to commence operations early 2011, the NOK 997.5 million Loan and Guarantee Facility remains undrawn.

Acergy also has undrawn bank overdraft facilities and short term lines of credit of $36.1 million (2008: $24.7 million) of which $nil (2008: $6.1 million) were drawn at year end.

Together these loan facilities and cash balances should provide sufficient liquid resources and working capital to meet forecasted future operating requirements.

Further details are included in Note 30 Borrowings and Note 31 Convertible loan notes to the Consolidated Financial Statements.

Off-balance sheet arrangements

Leases and
bank guarantees

The Group does not engage in off-balance sheet financing in the form of special purpose entities or similar arrangements, but
engages in operating leases in the normal course of business in respect of ship charter hire obligations, office facilities and equipment.

The Group
also arranges for bank guarantees, which collectively refer to performance bonds, bid bonds, advance payment bonds, guarantees or standby letters of credit in respect of performance obligations to clients in connection with work on specific
projects.







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                               |  |                             |  |               |  |            |  |                      |  |                      |  | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------- |  | --------------------------- |  | ------------- |  | ---------- |  | -------------------- |  | -------------------- |  | 
|The purpose of the bank guarantees generally is to enable clients to recover cash advances paid to the Group under the project
contracts or to obtain cash compensation should the Group be unable to fulfil performance obligations under contracts. Bank guarantees were issued in support of projects in fiscal year 2009 of $287.1 million (2008: $122.5 million).  Guarantee arrangements with joint ventures SapuraAcergy Assets Pte Ltd (SAPL), previously known as Nautical Vessels Pte Ltd., is a 50/50-owned joint venture between Nautical Essence Sdn. Bhd.
(wholly owned by SapuraCrest Petroleum Berhad) and Acergy Bermuda Ltd. (wholly owned by Acergy S.A.). In 2007 the respective parent companies issued a charter guarantee guaranteeing the charter payments from the charterer of Sapura 3000,
SapuraAcergySdn. Bhd, to the ship owner, SAPL. The limit of the guarantee is, at any time, the sum of the outstanding amounts under a $240 million Facility Agreement of SAPL less $100 million. Any call under the guarantee will not result in a lump
sum payment being made, but the guarantors, severally, will have to service the debt by way of charter payments due from the charterer to the ship owner until the termination date of the loan, which is February 2, 2015.  SapuraAcergy Sdn. Bhd. (SASB) is a 50/50-owned joint venture between Nautical Essence
Sdn. Bhd. (wholly owned by SapuraCrest Petroleum Berhad) and Acergy Bermuda Ltd. (wholly owned by Acergy S.A.). The company has entered into a $181.3 million multicurrency facility for the financing of the Shell Gumusut-Kakap Project. Both Acergy
S.A. and SapuraCrest Petroleum Berhad have issued several guarantees for 50% of the financing. The facility consists of $41.3 million available for the issuance of bank guarantees, $60.0 million available for letters of credit, and two revolving
credit facilities for $60.0 million and $20.0 million respectively. As at November 30, 2009 the amount available for bank guarantees was fully utilised.  Other guarantee arrangements In addition to the amounts
available under the $400 million and the $200 million facilities, the Group has a $30.0 million (2008: $30.0 million) bank guarantee facility with Credit Industriel et Commercial Bank of which $8.0 million (2008: $nil) was utilised as at
November 30, 2009.  There is an unsecured local line of credit in Nigeria for
the sole use of Globestar Engineering Company (Nigeria) Limited with First Bank of Nigeria plc for $10.0 million. The bonds under this facility were issued to guarantee the project performance of the subsidiary to third parties in the normal course
of business. The amount issued under this facility as at November 30, 2009 was $0.7 million (2008: $0.6 million).  The Group had past arrangements with a number of financial institutions to issue bank guarantees on its behalf. As at November 30, 2009, the aggregate amount of guarantees issued under these facilities was
$14.5 million (2008: $13.2 million). There was no availability for further issuances under these facilities.  Investments in associates and joint ventures |  | LOGO                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 
|As at November 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Country/place of registration |  | Acergy Groupbusiness region |  |               |  | Ownership% |  | 2009 (in $ millions) |  | 2008 (in $ millions) | 
|Dalia Floater Angola, TSS Dalia (Dalia)(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | France                        |  | Africa and Mediterranean    |  | Associate     |  | 17.5       |  | 3.6                  |  | 4.3                  | 
|Global Oceon Engineers
(Oceon)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Nigeria                       |  | Africa and Mediterranean    |  | Associate     |  | 40         |  |                     |  |                     | 
|Acergy/Subsea 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Norway                        |  | Northern Europe and Canada  |  | Joint Venture |  | 50         |  |                     |  | 2.6                  | 
|SapuraAcergy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Malaysia/Labuan               |  | Asia and Middle East        |  | Joint Venture |  | 50         |  |                     |  |                     | 
|Seaway Heavy Lifting
(SHL)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Cyprus/ Netherlands           |  | Corporate                   |  | Joint Venture |  | 50         |  | 77.6                 |  | 64.6                 | 
|NKT Flexibles I/S (NKT Flexibles)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Denmark                       |  | Corporate                   |  | Joint Venture |  | 49         |  | 109.1                |  | 68.7                 | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                               |  |                             |  |               |  |            |  | 190.3                |  | 140.2                | 



|(a) | Acergy owns 17.5% and has a significant influence in Dalia. Acergy has a veto on decisions which require unanimous agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------





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Financial Review and Statements:

Financial Review continued



Description of joint ventures

The Dalia facility is an associate with Technip S.A. and Saipem S.A. to perform work on the Dalia field development Block 17 offshore Angola for Total E&P Angola. The joint venture has responsibility for
project management, engineering, procurement, commissioning and hook-up of the FPSO.

During fiscal year 2007, a Nigerian joint venture, Oceon, with
Petrolog Engineering Services Limited, an established Nigerian contractor, was founded. The purpose of Oceon is to provide engineering support for future shallow and deepwater projects to be executed in Nigeria, and therefore strengthen
Acergys presence in the country.

The Acergy/Subsea 7 joint ventures reflect the results of the FTP and H7 By-Pass Projects and a consortium
agreement which is being executed in the North Sea.

In 2006 the Group established the SapuraAcergy joint ventures with SapuraCrest Petroleum Berhad, to
take over the build and operation of Sapura 3000, a new heavy lift and pipelay ship designed to be one of the most advanced deepwater construction ships in the growing Asia Pacific region. During fiscal year 2007, the $150 million loan taken
out by the joint venture to partially fund the construction of the Sapura 3000 was refinanced into a $200 million term loan with an additional $40 million revolving credit facility. Acergy has issued a 50% guarantee in respect of this loan,
less $50 million, the risk on which is borne by the bank. The ship was delivered in the first quarter of fiscal year 2008 and commenced the offshore phase of the Kikeh Project in first quarter of fiscal year 2008. Acergy made an additional $15.1
million cash advance to the joint venture during fiscal year 2008, and a further $5.0 million in fiscal year 2009.

The Group offers heavy lift floating
crane services through SHL. SHL charters the heavy lift barge Stanislav Yudin from a subsidiary of Lukoil Kaliningradmorneft plc, the Groups joint venture partner in SHL. The barge operates worldwide providing heavy lift services to a
range of offshore companies, including occasional projects for the Group. A new build, heavy lift ship Oleg Strashnov is under construction and the ship is expected to be in operation in the second half of 2010. The Group increased its
investment in SHL during fiscal year 2007 to contribute to the construction costs of this ship. In addition to this increase in shareholder contribution, SHL took out a term loan, revolving credit and guarantee facility on May 25, 2007. The
term loans are for up to 140 million and $180 million, and the revolving credit and guarantee facility for up to $33 million. During
fiscal year 2009 an additional investment of $20.6 million was made (2008: $nil) and the existing credit facilities remained in place. There was no recourse to Acergy in respect of this facility.

NKT Flexibles manufactures flexible flowlines and dynamic flexible risers. In fiscal year 2009, the Groups share of net income was $21.7 million (2008 and 2007:
$45.6 million and $17.9 million respectively).

More details relating to transactions with the associates and joint ventures are presented in Note 17
Interest in associates and joint ventures to the Consolidated Financial Statements.

Contractual obligations

|                                        |  |                           |  |                 |  |          |  |          |  |              
|--------------------------------------- |  | ------------------------- |  | --------------- |  | -------- |  | -------- |  | -------------
|                                        |  | Payments due by period(a)
|As at November 30, 2009 (in $ millions) |  | Total                     |  | Less than 1year |  | 13years |  | 35years |  | After 5 years
|Convertible notes(b)                    |  | 500.0                     |  |                |  |         |  | 500.0    |  |             
|Future interest payments(c)             |  | 45.0                      |  | 11.3            |  | 22.5     |  | 11.2     |  |             
|Operating lease payments(d)             |  | 530.0                     |  | 109.9           |  | 175.7    |  | 134.2    |  | 110.2        
|Purchase obligations(e)                 |  | 340.5                     |  | 335.9           |  | 4.6      |  |         |  |             
|Forward foreign exchange contracts(f)   |  | 22.0                      |  | 20.4            |  | 1.6      |  |         |  |             
|Total                                   |  | 1,437.5                   |  | 477.5           |  | 204.4    |  | 645.4    |  | 110.2        



|(a) | Excludes future retirement benefit obligations of $27.2 million at November 30, 2009, guarantee arrangements with joint ventures and associates of $67.1million at
November 30, 2009, and the main renewal options:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Polar Queen two renewal options consisting of
one option for three years at the end of 2012 followed by a possible further option for one year;

Far Saga one renewal
option for two years mid-2010;

Acergy Viking ten renewal options consisting of two for two years and eight options for one
year; purchase options after eight, eleven, fourteen and seventeen years;

Skandi Acergy four renewal options consisting of
two options for two years each and two options for one year each.

|(b) | On October 11, 2006 the Group completed the offering of $500 million in aggregate principal amount of convertible loan notes due in fiscal year 2013 with the receipt of net
proceeds after deduction of related costs of $490.8 million. The convertible loan notes have an annual interest rate of 2.25% payable semi-annually in arrears on April 11 and October 11 of each year up to and including fiscal year 2013.
They were issued at 100% of their principal amount and unless previously redeemed, converted or cancelled will mature on October 11, 2013. The convertible loan notes are listed on the Euro MTF Market of the Luxembourg Stock Exchange. For
further details see Note 31 Convertible loan notes to the Consolidated Financial Statements.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Groups debt structure currently contains fixed interest rate debt, and therefore it has calculated the amount of the future interest payments based on the 2.25%
interest rate on the aggregate principal amount of $500 million of convertible loan notes. For further details see Note 31 Convertible loan notes to the Consolidated Financial Statements.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | These consisted of charter hire obligations towards certain construction support, diving support, survey and inspection ships of $304.9 million. The remaining obligations related
to office facilities and equipment as at November 30, 2009 of $225.1 million. For further details see note 36 Operating lease arrangements to the Consolidated Financial Statements.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Purchase obligations are an agreement to purchase goods or services that are enforceable and legally binding including fixed or minimum quantities to be purchased. The value
disclosed above is inclusive of property, plant and equipment as disclosed in Note 35 Commitments and contingent liabilities to the Consolidated Financial Statements.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Acergy enters into both derivative financial instruments and non-derivative financial instruments in order to manage its foreign currency exposures. The principal derivatives
used are forward foreign currency contracts. The commitments have been drawn up based on the undiscounted net cash inflows or outflows on the derivative instruments that settle on a net basis and the undiscounted gross inflows or outflows on those
derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed has been determined by reference to the projected interest rates as illustrated by the yield curves existing as at the fiscal year
end November 30, 2009. For further details see Note 37 Financial instruments to the Consolidated Financial Statements.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







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|Acergy |  | Annual Report and Financial Statements 2009



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|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Legal matters During 2009 the Groups
Brazilian business was audited and formally assessed for ICMS tax (import duty) by the Brazilian tax authorities (Secretaria Fazenda Estado Rio de Janeiro). The amount assessed including penalties and interest amounted to $61.7 million. The Group
has challenged this assessment and will revert to the courts if necessary. No provision has been made for any payment as the Group does not believe that this liability is probable.  On February 17, 2006, Bateman, the company which acquired Paragon Litwin S.A., a former
engineering subsidiary, launched arbitration proceedings against the Group on the grounds of alleged misrepresentation when the business was sold. No provision was recorded for this claim. On September 5, 2008, the Arbitration Board rejected
Batemans claim of 13 million and Bateman was ordered to pay an amount of $0.9 million for legal fees and $0.2 million for
arbitration costs. The arbitration decision is full and final. As of June 2009 all amounts due by Bateman were paid to Acergy.  In the course of business, the Group becomes involved in contract disputes from time-to-time due to the nature of our activities as a contracting business involved in
several long-term projects at any given time. The Group takes provisions to cover the expected risk of loss to the extent that negative outcomes are likely and reliable estimates can be made. However, the final outcomes of these contract disputes
are subject to uncertainties as to whether or not they develop into a formal legal action and therefore the resulting liabilities may exceed the liability it anticipated.  Furthermore, the Group is involved in legal proceedings from time to time incidental to the
ordinary conduct of its business. Litigation is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. It is reasonably possible that the final resolution of any litigation could require the Group to
make additional expenditures in excess of reserves that the Group may establish. In the ordinary course of business, various claims, suits and complaints have been filed against us in addition to those specifically referred to above. Although the
final resolution of any such other matters could have a material effect on operating results for a particular reporting period, the Group believes that they should not materially affect its consolidated financial position.  For other contingent liabilities, please refer to Note 12 Taxation and Note 35
Commitments and Contingent Liabilities to the Consolidated Financial Statements.  Inflation Transactions in high-inflation countries are denominated substantially in relatively stable currencies, such as the US Dollar,
and inflation therefore does not materially affect the consolidated financial results. Where these transactions are denominated in US Dollars they are hedged in line with the Groups foreign exchange policies, which have mitigated the effects
of the decline in the US Dollar in recent years.  Changes in share capital In fiscal year 2009 a total of 390,949 share options were exercised (2008: 1,088,952), raising gross proceeds of $1.6 million (2008: $4.2 million). The
share option exercises during fiscal year 2009 were satisfied by re-issuing treasury shares. No other new common shares were issued. In 2008 a total of 6,374,100 own common shares were repurchased for a total consideration of $138.3
million.  Additional information on the authorised shares and issued common shares
is set out in Note 26 Issued Share Capital to the Consolidated Financial Statements.  Critical accounting policies For the Groups critical accounting policies please refer to Note 4
Critical accounting judgements and key sources of estimation uncertainty to the Consolidated Financial Statements. |  | LOGO





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Financial Review and Statements:

Report of Independent Registered Public Accounting Firm continued





|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|To the Board of Directors and Stockholders of Acergy S.A. We have audited the accompanying consolidated balance sheets of Acergy S.A. (a Luxembourg company) and subsidiaries (the Group) as at November 30, 2009 and 2008, and the related consolidated income
statements, statements of recognised income and expense, and cash flow statements for each of the three years in the period ended November 30, 2009. These financial statements are the responsibility of the Groups management. Our
responsibility is to express an opinion on these financial statements based on our audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. 
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Group as at November 30, 2009
and 2008, and the results of its operations and cash flows for each of the three years in the period ended November 30, 2009, in conformity with International Financial Reporting Standards (IFRS) as adopted for use in the European
Union and IFRS as issued by the International Accounting Standards Board.  We have
also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Groups internal control over financial reporting as at November 30, 2009, based on the criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 17, 2010 expressed an unqualified opinion on the Groups internal control over financial reporting.  /s/ Deloitte LLP Deloitte LLP London, United Kingdom February 17, 2010 |  | LOGO





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Financial Review and Statements:

Report of Independent Registered Public Accounting Firm



To the Board of Directors and Stockholders of Acergy S.A.

We have audited the internal control over financial reporting of Acergy S.A. (a Luxembourg company) and subsidiaries (the Group) as at November 30,
2009, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Groups management is responsible for maintaining effective internal control over
financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Managements Report on Internal Control over Financial Reporting. Our responsibility is to express an
opinion on the Groups internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A groups internal control over financial reporting is a process designed by, or under the supervision of, the groups principal executive and principal financial officers, or persons performing similar
functions, and effected by the groups board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A groups internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the group; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the group are being made only in accordance with authorizations of management and directors of the group; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use, or disposition of the groups assets that could have a material effect on the financial statements.

Because of
the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely
basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.

In our opinion, the Group maintained, in all material respects, effective internal
control over financial reporting as at November 30, 2009, based on the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as at
and for the year ended November 30, 2009 of the Group and our report dated February 17, 2010 expressed an unqualified opinion on those financial statements.

/s/ Deloitte LLP

Deloitte LLP

London, United Kingdom

February 17, 2010







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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94





Financial Review and Statements:

Consolidated Income Statement

For the fiscal year ended November 30





|                                                  |  |       |  |           |   |  |           |   |  |           |  
|------------------------------------------------- |  | ----- |  | --------- | - |  | --------- | - |  | --------- | -
|(in $ millions, except per share data)            |  | Notes |  | 2009      |   |  | 2008      |   |  | 2007      |  
|Continuing operations:                            |  |       |  |           |   |  |           |   |  |           |  
|Revenue                                           |  | 5     |  | 2,208.8   |   |  | 2,522.4   |   |  | 2,406.3   |  
|Operating expenses                                |  |       |  | (1,683.8  | ) |  | (1,874.2  | ) |  | (1,859.1  | )
|Gross profit                                      |  |       |  | 525.0     |   |  | 648.2     |   |  | 547.2     |  
|Administrative expenses                           |  |       |  | (231.3    | ) |  | (253.8    | ) |  | (227.6    | )
|Net other operating income                        |  |       |  |          |   |  | 3.4       |   |  | 0.4       |  
|Share of results of associates and joint ventures |  | 17    |  | 49.0      |   |  | 63.0      |   |  | 31.5      |  
|Net operating income from continuing operations   |  | 7     |  | 342.7     |   |  | 460.8     |   |  | 351.5     |  
|Investment income                                 |  | 9     |  | 6.4       |   |  | 17.9      |   |  | 30.8      |  
|Other gains and losses                            |  | 10    |  | 43.6      |   |  | 44.1      |   |  | 0.6       |  
|Finance costs                                     |  | 11    |  | (31.4     | ) |  | (30.5     | ) |  | (39.0     | )
|Income before taxes                               |  |       |  | 361.3     |   |  | 492.3     |   |  | 343.9     |  
|Taxation                                          |  | 12    |  | (102.8    | ) |  | (162.6    | ) |  | (215.1    | )
|Income from continuing operations                 |  |       |  | 258.5     |   |  | 329.7     |   |  | 128.8     |  
|Net income/(loss) from discontinued operations    |  | 13    |  | 7.2       |   |  | (22.5     | ) |  | 5.7       |  
|Net income                                        |  |       |  | 265.7     |   |  | 307.2     |   |  | 134.5     |  
|                                                  |  |       |  |           |   |  |           |   |  |           |  
|Net income attributable to:                       |  |       |  |           |   |  |           |   |  |           |  
|Equity holders of parent                          |  |       |  | 245.0     |   |  | 301.4     |   |  | 127.3     |  
|Minority interest                                 |  |       |  | 20.7      |   |  | 5.8       |   |  | 7.2       |  
|                                                  |  |       |  | 265.7     |   |  | 307.2     |   |  | 134.5     |  
|                                                  |  |       |  |           |   |  |           |   |  |           |  
|                                                  |  |       |  | $         |   |  | $         |   |  | $         |  
|Earnings per share                                |  |       |  | per share |   |  | per share |   |  | per share |  
|Basic:                                            |  |       |  |           |   |  |           |   |  |           |  
|Continuing operations                             |  |       |  | 1.30      |   |  | 1.76      |   |  | 0.65      |  
|Discontinued operations                           |  |       |  | 0.04      |   |  | (0.12     | ) |  | 0.03      |  
|Net income                                        |  | 14    |  | 1.34      |   |  | 1.64      |   |  | 0.68      |  
|Diluted:                                          |  |       |  |           |   |  |           |   |  |           |  
|Continuing operations                             |  |       |  | 1.29      |   |  | 1.70      |   |  | 0.63      |  
|Discontinued operations                           |  |       |  | 0.04      |   |  | (0.11     | ) |  | 0.03      |  
|Net income                                        |  | 14    |  | 1.33      |   |  | 1.59      |   |  | 0.66      |  

The
accompanying Notes are an integral part of these Consolidated Financial Statements.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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95





Financial Review and Statements:

Consolidated Statement Of Recognised Income and Expense

For the fiscal year ended November 30





|                                                                                       |  |       |  |       |   |  |        |   |  |       |   |  |     
|-------------------------------------------------------------------------------------- |  | ----- |  | ----- | - |  | ------ | - |  | ----- | - |  | ----
|(in $ millions)                                                                        |  | Notes |  | 2009  |   |  | 2008   |   |  | 2007  |   |  | LOGO
|Gains/(losses) on derivative instruments (cash flow hedges)                            |  | 37    |  | 16.4  |   |  | (26.5  | ) |  | 4.2   |   | 
|Share of (losses)/gains from derivatives related to associates and joint ventures      |  | 17    |  | (1.7  | ) |  | (23.7  | ) |  | 0.2   |   | 
|Exchange differences on translation of foreign operations                              |  | 28    |  | 38.8  |   |  | (82.8  | ) |  | 21.4  |   | 
|Actuarial (losses)/gains on defined benefit pension schemes                            |  | 40    |  | (2.8  | ) |  | (11.1  | ) |  | 7.3   |   | 
|Tax on items taken directly to equity                                                  |  | 12    |  | 8.1   |   |  | (6.8   | ) |  | 6.6   |   | 
|Net income/(expenses) recognised directly in equity                                    |  |       |  | 58.8  |   |  | (150.9 | ) |  | 39.7  |   | 
|                                                                                       |  |       |  |       |   |  |        |   |  |       |   | 
|Foreign currency translation adjustments upon liquidation of entities                  |  |       |  |      |   |  | (0.3   | ) |  | (1.4  | ) | 
|Transferred to income statement on cash flow hedges                                    |  | 37    |  | 9.7   |   |  | 3.7    |   |  | (0.2  | ) | 
|Transferred to the initial carrying amount of hedged items on cash flow hedges         |  | 37    |  | 0.2   |   |  | (0.5   | ) |  | (3.6  | ) | 
|Tax on items transferred from equity                                                   |  | 12    |  |      |   |  |       |   |  | 0.8   |   | 
|Transfers to the income statement                                                      |  |       |  | 9.9   |   |  | 2.9    |   |  | (4.4  | ) | 
|Net income/(loss) recognised directly in equity                                        |  |       |  | 68.7  |   |  | (148.0 | ) |  | 35.3  |   | 
|Net income                                                                             |  |       |  | 265.7 |   |  | 307.2  |   |  | 134.5 |   | 
|Total income recognised for the year                                                   |  |       |  | 334.4 |   |  | 159.2  |   |  | 169.8 |   | 
|                                                                                       |  |       |  |       |   |  |        |   |  |       |   | 
|Attributable to:                                                                       |  |       |  |       |   |  |        |   |  |       |   | 
|Equity holders of parent                                                               |  |       |  | 313.7 |   |  | 153.4  |   |  | 162.6 |   | 
|Minority interest                                                                      |  |       |  | 20.7  |   |  | 5.8    |   |  | 7.2   |   | 
|                                                                                       |  |       |  | 334.4 |   |  | 159.2  |   |  | 169.8 |   | 
|The accompanying Notes are an integral part of these Consolidated Financial
Statements |  |       |  |       |   |  |        |   |  |       |   |  |     





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96





Financial Review and Statements:

Consolidated Balance Sheet

As at November 30





|                                                                        |  |       |  |         |   |  |         |  
|----------------------------------------------------------------------- |  | ----- |  | ------- | - |  | ------- | -
|(in $ millions)                                                         |  | Notes |  | 2009    |   |  | 2008    |  
|Assets                                                                  |  |       |  |         |   |  |         |  
|Non-current assets                                                      |  |       |  |         |   |  |         |  
|Intangible assets                                                       |  | 15    |  | 9.4     |   |  | 3.8     |  
|Property, plant and equipment                                           |  | 16    |  | 821.8   |   |  | 907.6   |  
|Interest in associates and joint ventures                               |  | 17    |  | 190.3   |   |  | 140.2   |  
|Advances and receivables                                                |  | 18    |  | 43.3    |   |  | 29.4    |  
|Derivative financial instruments                                        |  | 37    |  | 6.0     |   |  | 18.4    |  
|Retirement benefit assets                                               |  | 40    |  |        |   |  | 0.1     |  
|Deferred tax assets                                                     |  | 12    |  | 19.3    |   |  | 39.8    |  
|                                                                        |  |       |  | 1,090.1 |   |  | 1,139.3 |  
|Current assets                                                          |  |       |  |         |   |  |         |  
|Inventories                                                             |  | 19    |  | 22.4    |   |  | 38.5    |  
|Trade and other receivables                                             |  | 20    |  | 297.9   |   |  | 354.5   |  
|Derivative financial instruments                                        |  | 37    |  | 19.1    |   |  | 45.8    |  
|Assets held for sale                                                    |  | 21    |  | 263.6   |   |  | 75.5    |  
|Other accrued income and prepaid expenses                               |  | 22    |  | 212.8   |   |  | 233.5   |  
|Restricted cash balances                                                |  | 24    |  | 19.6    |   |  | 11.0    |  
|Cash and cash equivalents                                               |  | 25    |  | 907.6   |   |  | 573.0   |  
|                                                                        |  |       |  | 1,743.0 |   |  | 1,331.8 |  
|Total assets                                                            |  |       |  | 2,833.1 |   |  | 2,471.1 |  
|Equity                                                                  |  |       |  |         |   |  |         |  
|Issued share capital                                                    |  | 26    |  | 389.9   |   |  | 389.9   |  
|Own shares                                                              |  | 27    |  | (222.6  | ) |  | (229.4  | )
|Paid in surplus                                                         |  | 28    |  | 503.9   |   |  | 498.7   |  
|Equity reserves                                                         |  | 28    |  | 110.7   |   |  | 110.7   |  
|Translation reserves                                                    |  | 28    |  | (12.0   | ) |  | (70.4   | )
|Other reserves                                                          |  | 28    |  | (60.1   | ) |  | (70.4   | )
|Retained earnings                                                       |  | 28    |  | 358.2   |   |  | 158.6   |  
|Equity attributable to equity holders of the parent                     |  |       |  | 1,068.0 |   |  | 787.7   |  
|Minority interest                                                       |  | 29    |  | 31.2    |   |  | 13.7    |  
|Total equity                                                            |  |       |  | 1,099.2 |   |  | 801.4   |  
|Liabilities                                                             |  |       |  |         |   |  |         |  
|Non-current liabilities                                                 |  |       |  |         |   |  |         |  
|Non-current portion of borrowings                                       |  | 30    |  | 415.8   |   |  | 409.2   |  
|Retirement benefit obligation                                           |  | 40    |  | 27.2    |   |  | 21.2    |  
|Deferred tax liabilities                                                |  | 12    |  | 49.9    |   |  | 56.1    |  
|Provisions                                                              |  | 34    |  | 10.6    |   |  | 8.0     |  
|Derivative financial instruments                                        |  | 37    |  | 2.2     |   |  | 57.1    |  
|Other non-current liabilities                                           |  | 32    |  | 7.0     |   |  | 3.9     |  
|                                                                        |  |       |  | 512.7   |   |  | 555.5   |  
|Current liabilities                                                     |  |       |  |         |   |  |         |  
|Trade and other payables                                                |  | 33    |  | 624.1   |   |  | 651.6   |  
|Derivative financial instruments                                        |  | 37    |  | 21.9    |   |  | 62.6    |  
|Current tax liabilities                                                 |  |       |  | 97.9    |   |  | 69.1    |  
|Current portion of borrowings                                           |  | 30    |  |        |   |  | 10.1    |  
|Liabilities directly associated with assets classified as held for sale |  | 21    |  | 174.9   |   |  |        |  
|Provisions                                                              |  | 34    |  | 22.6    |   |  | 15.2    |  
|Deferred revenue                                                        |  | 41    |  | 279.8   |   |  | 305.6   |  
|                                                                        |  |       |  | 1,221.2 |   |  | 1,114.2 |  
|Total liabilities                                                       |  |       |  | 1,733.9 |   |  | 1,669.7 |  
|Total equity and liabilities                                            |  |       |  | 2,833.1 |   |  | 2,471.1 |  

The
accompanying Notes are an integral part of these Consolidated Financial Statements.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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97





Financial Review and Statements:

Consolidated Cash Flow Statement

As at November 30





|                                                                                        |  |       |  |        |   |  |        |   |  |        |   |  |     
|--------------------------------------------------------------------------------------- |  | ----- |  | ------ | - |  | ------ | - |  | ------ | - |  | ----
|(in $ millions)                                                                         |  | Notes |  | 2009   |   |  | 2008   |   |  | 2007   |   |  | LOGO
|Net cash generated from operating activities                                            |  | 42    |  | 546.1  |   |  | 493.1  |   |  | 251.3  |   | 
|Cash flows from investing activities:                                                   |  |       |  |        |   |  |        |   |  |        |   | 
|Proceeds from sale of property, plant and equipment                                     |  |       |  | 73.6   |   |  | 12.2   |   |  | 35.3   |   | 
|Purchase of property, plant and equipment                                               |  | 16    |  | (171.8 | ) |  | (294.3 | ) |  | (261.0 | ) | 
|Dividends from joint ventures                                                           |  | 17    |  | 28.0   |   |  | 10.9   |   |  | 24.2   |   | 
|Payments for intangible assets                                                          |  | 15    |  | (4.6   | ) |  | (0.4   | ) |  |       |   | 
|Investment in associates and joint ventures                                             |  | 17    |  | (20.6  | ) |  |       |   |  | (18.9  | ) | 
|Advances to joint ventures                                                              |  | 17    |  | (5.0   | ) |  | (15.1  | ) |  | (0.4   | ) | 
|Net cash used in investing activities                                                   |  |       |  | (100.4 | ) |  | (286.7 | ) |  | (220.8 | ) | 
|Cash flows from financing activities:                                                   |  |       |  |        |   |  |        |   |  |        |   | 
|Convertible loan interest paid                                                          |  | 31    |  | (11.3  | ) |  | (11.3  | ) |  | (11.3  | ) | 
|Proceeds from borrowings, net of issuance costs                                         |  | 30    |  | 2.8    |   |  | 6.3    |   |  |       |   | 
|Own share buy-backs                                                                     |  | 27    |  |       |   |  | (138.3 | ) |  | (146.8 | ) | 
|Dividends paid to equity shareholders of the parent                                     |  | 28    |  | (40.2  | ) |  | (38.3  | ) |  | (37.5  | ) | 
|Exercise of share options                                                               |  | 39    |  | 1.6    |   |  | 4.2    |   |  | 14.3   |   | 
|Dividends paid to minority interests                                                    |  | 29    |  | (4.9   | ) |  | (8.7   | ) |  | (8.7   | ) | 
|Net cash used in financing activities                                                   |  |       |  | (52.0  | ) |  | (186.1 | ) |  | (190.0 | ) | 
|Net increase/(decrease) in cash and cash equivalents                                    |  |       |  | 393.7  |   |  | 20.3   |   |  | (159.5 | ) | 
|Cash and cash equivalents at beginning of year                                          |  |       |  | 573.0  |   |  | 582.7  |   |  | 717.5  |   | 
|Effect of exchange rate changes on cash and cash equivalents                            |  |       |  | 44.5   |   |  | (30.0  | ) |  | 24.7   |   | 
|Cash balances classified as assets held for sale                                        |  |       |  | (103.6 | ) |  |       |   |  |       |   | 
|Cash and cash equivalents at end of year                                                |  | 25    |  | 907.6  |   |  | 573.0  |   |  | 582.7  |   | 
|The accompanying Notes are an integral part of these Consolidated Financial
Statements. |  |       |  |        |   |  |        |   |  |        |   | 





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98





Financial Review and Statements:

Notes to the Financial Consolidated Statements



1. General information

Acergy S.A., a Luxembourg company, together with its subsidiaries (collectively referred to as Acergy, the Group, Company,
we, our, or us) is one of the largest offshore services contractors in the world based on revenues. The Group is a seabed-to-surface engineering and construction contractor for the offshore oil and gas industry
worldwide. It provides integrated services and plans, designs, and delivers complex projects in harsh and challenging environments. The address of the registered office is given on page 164. The nature of the Groups operations and its
principal activities are set out in Note 6 Segment information.

Authorisation of financial statements

Acergy S.A. is a company registered in Luxembourg whose stock trades on the NASDAQ Global Select market in the form of American Depository Shares and on the Oslo Stock
Exchange. In these financial statements, Group refers to the Company and all its subsidiaries. The Group financial statements were authorised for issue by the Board of Directors on February 17, 2010.

Presentation of financial statements

These financial
statements are presented in US Dollars ($) because that is the currency of the primary economic environment in which the Group operates. Foreign operations are included in accordance with the policies set out in Note 3 Significant
accounting policies.

2. Adoption of new accounting standards

Future accounting standards

At the date of authorisation of
these financial statements, the following applicable standards and interpretations that have not been applied in these financial statements were in issue but not yet effective:



|                           |  |                                                             |  |                             
|-------------------------- |  | ----------------------------------------------------------- |  | ----------------------------
|                           |  |                                                             |  | Date applicable to the Group
|IFRS 2 Amended             |  | Share-based Payment  Vesting Conditions and Cancellations  |  | December 1, 2009            
|IFRS 2 Amended             |  | Group Cash-Settled Share-based Payment
Transactions         |  | December 1, 2010            
|IFRS 3 Revised             |  | Business Combinations                                       |  | December 1, 2009            
|IFRS 7 Amended             |  | Improving Disclosures about Financial Instruments           |  | December 1, 2009            
|IFRS 9                     |  | Financial Instruments                                       |  | December 1, 2013            
|IAS 1 Amended              |  | Presentation of Financial Statements                        |  | December 1, 2009            
|IAS 23 Revised             |  | Borrowing Costs                                             |  | December 1, 2009            
|IAS 24 Revised             |  | Related Party Disclosures                                   |  | December 1, 2011            
|IAS 27 Revised             |  | Consolidated and Separate Financial Statements              |  | December 1, 2009            
|IAS 32 Amended             |  | Classification of Rights Issues                             |  | December 1, 2010            
|IAS 39 Amended             |  | Eligible Hedged Items                                       |  | December 1, 2009            
|IAS 39 and IFRIC 9 Amended |  | Embedded Derivatives                                        |  | December 1, 2009            
|IFRIC 14 Amended           |  | Prepayments of a Minimum Funding Requirement                |  | December 1, 2011            
|IFRIC 19                   |  | Extinguishing Financial Liabilities with Equity Instruments |  | December 1, 2010            

The directors anticipate that the adoption of these standards and interpretations in the future periods will not have a material impact on the financial statements of the Group except for:



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Accounting for the loss in control of subsidiaries when the revised IAS 27 comes into effect. When
a parent ceases to have control of a subsidiary, the parent derecognises all assets, liabilities and non-controlling interest at their carrying amount. Any interest retained in the former subsidiary is recognised at its fair value at the date
control is lost.  Treatment of
acquisition costs of subsidiaries when IFRS 3 comes into effect for business combinations for which the acquisition date is on or after December 1, 2009.

Early adoption of accounting standards

The Group has adopted IFRS 8, Operating Segments, in advance of its
effective date of January 1, 2009. IFRS 8 requires business segments to be identified on the basis of internal reports consisting of operational components of the Group that are regularly reviewed by the chief operating decision maker in order
to allocate resources to the segments and to assess their performance.







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|3. Significant accounting policies Basis of accounting The financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). They comply with Article 4 of the EU IAS Regulation.  The financial statements have been prepared on the historical cost basis. The principal
accounting policies adopted are set out below.  Basis of
consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its
subsidiaries) made up to November 30, each year. Control is assumed to exist where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.  Subsidiaries The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.  Where necessary, adjustments are made to the financial statements of subsidiaries
to align these with the accounting policies of the Group.  All intra-group
transactions, balances, income and expenses are eliminated on consolidation.  Minority interests in the net assets of subsidiaries are identified separately from the Groups equity therein. Minority interests consist of the amount of those interests at the date of the original business combination and the
minoritys share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minoritys interest in the subsidiarys equity are allocated against the interests of the Group except to the
extent that the minority has a binding obligation and is able to make an additional investment to cover the losses.  Investments in associates and joint ventures An associate is an entity over which the Group has
significant influence, but not control, and which is neither a subsidiary nor a joint venture. Significant influence is defined as the right to participate in the financial and operating policy decisions of the investee, but is not control or joint
control over those policies.  A joint venture is a commercial business governed by
an agreement between two or more participants, giving them joint control over the business.  Investments in associates and joint ventures are accounted for using the equity method. Under this method, the investment is carried in the balance sheet at cost plus post-acquisition changes in the Groups share of net assets of the
associate or joint venture, less any provisions for impairment. The consolidated income statement reflects the Groups share of the results of operations after tax of the associate or joint venture. Losses in excess of the Groups interest
are only recognised to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.  Where there has been a change recognised directly in the equity of the associate or joint venture, the Group recognises its share in the consolidated statement of
recognised income and expense. Net incomes and losses resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the Groups interest.  Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and sales
related taxes.  Revenue from construction contracts is recognised in accordance with
the Groups accounting policy on construction contracts (see below). Revenue from rendering of services is recognised when services are delivered and title has passed.  Long-term contracts Long-term contracts are accounted for using the percentage-of-completion method. Revenue and gross profit are recognised each period based upon the advancement of the work-in-progress.  The percentage-of-completion method is calculated based on the ratio of costs incurred to date to
total estimated costs, taking into account the level of completion. The percentage-of-completion method requires the Group to make reliable estimates of progress toward completion of contract revenues and contract costs. Provisions for anticipated
losses are made in full in the period in which they become known.  In rare
circumstances where percentage of completion based on cost is not appropriate, the physical proportion of the contract work performed is used to measure the percentage of completion.  If the stage of completion is insufficient to enable a reliable estimate of gross profit to be
established (typically when less than 5% completion has been achieved), revenues are recognised to the extent of contract costs incurred where it is probable that they will be recoverable. |  | LOGO





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





3. Significant accounting policies
(continued)



A major portion of the Groups revenue is billed under fixed-price contracts. However, due to the nature of
the services performed, variation orders and claims are commonly billed to clients in the normal course of business. Additional contract revenue arising from variation orders is recognised when it is probable that the client will approve the
variation and the amount of revenue arising from the variation can be reliably measured. Revenue resulting from claims is recognised in contract revenue only when negotiations have reached an advanced stage such that it is probable that the client
will accept the claim and that the amount can be measured reliably.

During the course of multi-year projects the accounting estimates may change. The
effects of such changes are accounted for in the period of change and the cumulative income recognised to date is adjusted to reflect the latest estimates. Such revisions to estimates will not result in restating amounts in previous periods.

Service revenues

Revenues received for
the provision of services under charter agreements, day-rate contracts, reimbursable/cost-plus contracts and similar contracts are recognised on an accrual basis as services are provided.

Dividend and interest revenue

Dividend income from
investments is recognised when the shareholders rights to receive payment have been established, provided that it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably.

Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to
that assets net carrying amount on initial recognition.

Dry-dock, mobilisation and decommissioning expenditure

Dry-dock expenditure incurred to maintain a vessels classification is capitalised as a distinct component of the asset and amortised over the
period until the next dry-docking is scheduled for the asset (usually 21/2to 5 years). All other repair and maintenance costs are recognised in the consolidated income statement as incurred.

Mobilisation expenditures which consist of expenditure incurred prior to the deployment of a leased vessel are classified as prepayments and expensed over the period of the lease charter.

Decommissioning expenditures incurred to restore a leased vessel to its original or agreed condition are classified as a provision when the Group recognises it has a
present obligation and a reliable estimate can be made of the amount of the obligation. The provision is recognised when the obligation arises and where discounting is used, the increase in the provision due to the passage of time is recognised as a
finance cost.

Leasing

The determination of
whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date, whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use
an asset. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Group as Lessee

Finance leases are capitalised at
the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the Lessor is included in the balance
sheet as a finance lease obligation.

Operating lease payments are recognised as an expense in the consolidated income statement on a straight-line
basis over the lease term unless another systematic basis is more representative of the time pattern of the users benefit. Initial direct costs incurred in negotiating and arranging an operating lease are aggregated and recognised on a
straight-line basis over the lease term. Benefits received and receivable as an incentive to enter into an operating lease are recognised on the same basis as the related lease.

Refurbishment expenditure and improvements to leased assets are expensed in the consolidated income statement unless they significantly increase the value of a leased asset under which circumstance this expenditure
will be capitalised and subsequently recognised as an expense in the consolidated income statement on a straight-line basis over the lease term applicable to the leased asset.

The Group as Lessor

Leases where the Group does not transfer substantially all the risks and benefits
of ownership of the asset are classified as operating leases.

Rental income, excluding charges for services such as insurance and maintenance, is
recognised on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern in which the benefit derived from the leased asset is diminished. Costs incurred, including depreciation, in earning
the lease income are recognised as an expense. Initial direct costs incurred in negotiating and arranging an







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|operating lease are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the
lease income.  Foreign currency translation Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional
currency. Functional currency is defined as the currency of the primary economic environment in which the entity operates. While this is usually the local currency, the US Dollar is designated as the functional currency of certain entities where
transactions and cash flows are predominantly in US Dollars.  Transactions in
foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet
date. All differences are taken to net income or loss. Non monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.  Foreign exchange revaluations on short-term inter-company balances are recognised in the consolidated income statement. Revaluation on long-term inter-company loans
are recognised in the translation reserve.  The assets and liabilities of foreign
operations are translated into US Dollars at the rate of exchange ruling at the balance sheet date and their income and expenditure items are translated at the weighted average exchange rates for the year. The exchange differences arising on the
translation are taken directly to a separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in the consolidated income statement.  Borrowing costs Interest-bearing loans and overdrafts are recorded at the proceeds received, net of direct issue costs plus accrued interest less any repayments, and subsequently
stated at amortised cost.  Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially
ready for their intended use.  Investment income earned on the temporary investment
of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.  All other borrowing costs are recognised in net income or loss in the period in which they are incurred.  Finance costs Finance costs or charges, including premiums on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the effective interest rate method.  Retirement benefit costs The Group administers several defined contribution pension plans. Payments in respect of such schemes are charged to the income statement as they fall due.  In addition, the Group administers a small number of defined benefit pension plans which require
contributions to be made to separately administered funds. The cost of providing benefits under the defined benefit plans is determined separately for each plan using the projected unit credit actuarial valuation method, with actuarial valuations
carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the period in which they occur in the consolidated statement of recognised income and expense.  Past service cost is recognised immediately to the extent that the benefits are already vested,
and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.  The retirement benefit obligations recognised in the balance sheet represent the present value of the defined benefit obligations adjusted for unrecognised past service costs, reduced by the fair value of scheme
assets. Any asset resulting from this calculation is limited to past service costs, plus the present value of available refunds and reductions in future contributions to the scheme.  The Group is also committed to providing lump-sum bonuses to employees upon retirement in certain
countries. These retirement bonuses are unfunded, and are recorded in the financial statements at their actuarial valuation. |  | LOGO





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



3. Significant accounting policies (continued)



Taxation

Income tax

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on the taxable net income for the year. Taxable net income differs from net income as reported in the consolidated income statement
because it excludes items of income or expense that are taxable or deductible in other years and further excludes items that are never taxable or deductible. The tax rates and tax laws used to compute the amount of current tax payable are those that
are enacted or substantively enacted by the balance sheet date. Current tax relating to items recognised directly in equity is recognised in equity and not in net income or loss.

Income tax assets or liabilities are representative of respective taxes being owed or owing to the local tax authorities and additional tax provisions which have been recognised in the computation of the
Groups tax position. Full details of these positions are set out in Note 12 Taxation.

Deferred tax is the tax expected to be payable
or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable net income, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable net incomes will be available against which deductible temporary
differences can be utilised. Such assets or liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of other assets or liabilities in a transaction (other than in a
business combination) that affects neither the taxable net income nor the accounting net income.

The carrying amount of deferred tax assets is reviewed
at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable net income will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are substantially enacted and expected to apply in the period when the asset is realised or the liability is settled. Deferred tax is charged or credited to the
consolidated income statement, except when it relates to items charged or credited directly in equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current income tax liabilities and when they relate to income taxes levied by the same
taxation authority and the Group intends to settle its current income tax assets and liabilities on a net basis.

Deferred tax is recognised on
unremitted earnings to the extent that profits will be distributed in the foreseeable future.

Other taxes

Other taxes which include irrecoverable value added tax, sales tax and custom duties represent the amounts receivable or payable to local tax authorities in the
countries where the Group operates and are included within net other operating income.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes major spare parts acquired and
held for future use on a ship or in a plant.

Assets under construction are carried at cost, less any recognised impairment loss. Cost includes external
professional fees and borrowing costs capitalised in accordance with the Groups accounting policy. Depreciation of these assets commences when the assets are ready for their intended use.

Depreciation is calculated on a straight-line basis over the useful life of the asset as follows:



|                            |  |               
|--------------------------- |  | --------------
|Construction support ships |  | 10 to 25 years
|                            | 
|Operating equipment        |  | 3 to 10 years 
|                            | 
|Buildings                  |  | 20 to 33 years
|                            | 
|Other assets               |  | 3 to 7 years  
|                            | 
|Land is not depreciated.   |  |               

Construction support ships are depreciated to their estimated residual value. Costs for fitting out ships are capitalised
and amortised over a period equal to the remaining useful life of the related equipment.

Residual values, useful lives and methods of depreciation are
reviewed at least annually, and adjusted if appropriate.

The gains or losses arising on disposal or retirement of assets are determined as the
difference between any sales proceeds and the carrying amount of the asset. These are reflected in the income statement in Other gains and losses in the year that the asset is disposed of or retired.







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|Assets held for sale The Group classifies
assets and disposal groups as being held for sale when the following criteria are met:   management has committed to a plan to sell the asset or disposal group;   the asset or disposal group is available for
immediate sale in its present condition;   an active programme to locate a buyer and other actions required to complete the plan to sell the asset or disposal group has been initiated;   the sale of the asset or disposal group is highly probable;   transfer of the asset or disposal group is
expected to qualify for recognition as a completed sale, within one year;   the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value;   and actions required to complete the plan
indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.  Non-current assets or disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less costs of disposal. These assets are not depreciated once they meet the
criteria to be held for sale and are shown separately on the face of the Balance Sheet.  Discontinued operations The Group classifies an asset or disposal group as a discontinued operation when: it has been either disposed of
or classified as held for sale, represents a single major line of business or geographical area of operation or is part of a co-ordinated plan for disposal.  In the period an asset or disposal group has been disposed of, or is classified as held for sale, the results of the operation are reported as discontinued operations
in the current and prior periods.  Tendering and bid costs Costs incurred in the tendering process are expensed as incurred, except those costs which are incurred once the Group has achieved preferred bidder
status, when the project is considered highly probable of proceeding and a future benefit likely to occur. Subsequent costs are accumulated until the project is awarded, at which point they are included in project costs for net income recognition
purposes.  Intangible assets Overview Intangible assets acquired separately are
measured at cost at date of initial acquisition. Following initial recognition, intangible assets are reflected at cost less amortisation and impairment losses. Except for capitalised development costs, internally generated intangible assets are not
capitalised. Development expenditure which does not meet the criteria for capitalisation is reflected in the consolidated income statement in the year in which the expenditure is incurred.  Intangible assets with finite lives are amortised over their useful economic life over a period
of three to seven years and are assessed for impairment at least annually or whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for intangible assets with finite useful
lives are reviewed at each financial year end as a minimum. Changes in the expected useful lives or the expected pattern of consumption of future economic benefits embodied in the assets are accounted for by changing the amortisation period or
method, and are treated as changes in accounting estimates. The amortisation expense related to intangible assets with finite lives is recognised in the consolidated income statement in the expense category consistent with the function of the
intangible asset.  Research and development
costs Research costs are expensed as incurred. The Group recognises development expenditure on an individual project as an intangible
asset when we can demonstrate:   the technical feasibility of completing the asset such that it will be available for use or sale;   the intention to complete the asset and use or sell it;   the ability to use or sell the
asset;   how the asset will
generate probable future economic benefits;   the availability of resources to complete the asset; and   the ability to measure the expenditure reliably during development. |  | LOGO





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



3. Significant accounting policies (continued)



Following initial recognition of the development expenditure as an intangible asset, the asset is reported at cost
less any accumulated amortisation and impairment losses.

Amortisation of the asset begins when development is complete and the asset is available for
use. It is amortised over the period of expected future benefit. During the period of development, the asset is tested for impairment at least annually or when indicators of impairment exist.

Software

Software is measured initially at purchase
cost and amortised on a straight-line basis over its estimated useful life.

Impairment of non-financial assets

At each balance sheet date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment
testing for an asset is required, the Group estimates the assets recoverable amount. An assets recoverable amount is the higher of the assets or cash-generating units fair value less costs to sell and its value in use. Where
an asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where the carrying amount of an asset exceeds its recoverable value, the asset is considered impaired and is written down to its recoverable value. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is
used.

Impairment losses of continuing operations are recognised in the consolidated income statement in those expense categories consistent with the
function of the impaired asset.

An assessment is made at each balance sheet date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such an indication exists the Group makes an estimate of recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine the assets recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

Such reversal is recognised in the
consolidated income statement.

The following criteria are also applied in assessing impairment of specific assets:

Associates and joint ventures

At each balance sheet
date the Group determines whether there is any objective evidence that the investment in an associate or joint venture is impaired. If this is the case, the Group calculates the amount of impairment as being the difference between the estimated fair
value of the associate or joint venture and its carrying value. The resultant amount is recognised in the consolidated income statement.

Inventories

Inventories comprise materials, consumables and spares and are valued at the lower of cost and net realisable value. Costs incurred in bringing each
product to its present location and condition are accounted for using the weighted average cost basis. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs
necessary to conclude the sale.

Financial instruments

Overview

A financial instrument is any contract that gives rise to a financial asset in one entity and a financial liability or
equity instrument in another entity.

Financial assets are classified into the following categories:



|                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|financial assets at fair value through the profit or loss (FVTPL),  held to maturity
investments,  available for
sale (AFS) financial assets and  loans and receivables.

The classification depends on the nature and purpose of the financial assets and is
determined at the time of initial recognition.

Financial liabilities and equity instruments are classified as either FVTPL or other financial
liabilities according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities and is recorded as
the proceeds received, net of direct issue costs.







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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  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|  | ----
|Initial recognition All financial
assets are recognised in the Groups balance sheet and subsequently derecognised on the trade date where the purchase or sale of the financial asset is under a contract whose terms require delivery of the investment within the timeframe
established by the market concerned.  Financial liabilities are recognised in the
Groups balance sheet when the Group becomes a party to the contractual provisions of the instrument.  Initial measurement Financial instruments are initially measured at fair value including transaction
costs, with the exception of assets classified at FVTPL which are measured at fair value. Changes in the fair value of investments classified at FVTPL are included in the consolidated income statement. Changes in the fair value of investments
classified as AFS are recognised directly in equity, until the investment is disposed of or is determined to be impaired, at which time the cumulative gains or losses previously recognised in equity are included in the consolidated income statement
for the period. Investment income on investments classified at FVTPL and AFS is recognised in the consolidated income statement as it accrues.  Subsequent measurement After initial recognition, the
fair values of financial instruments are measured on bid prices for assets held and offer prices for issued liabilities based on values quoted in active markets.  Impairment At each balance sheet date the Group assesses
whether any indications exist that a financial asset or group of financial assets is impaired.  Impairment losses are recorded if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a loss event) and that loss event
(or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The impairment is recognised through the consolidated income statement.  In any subsequent period, if the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss will be reversed through the consolidated income statement if the asset is accounted for at amortised cost. Reversal of
impairment of a debt instrument classified as available for sale is recognised in net income or loss while a reversal related to an equity instrument classified as available for sale is recognised in equity.  Derivatives The Group enters into both derivative financial instruments (derivatives) and non-derivative financial instruments in order to manage its foreign currency exposures. The principal derivatives used are forward
foreign currency contracts.  All derivative transactions are undertaken and
maintained in order to manage the interest and foreign currency risks associated with the Groups underlying business activities and the financing of those activities.  Changes in the fair value of derivatives that do not qualify for hedge accounting are recognised
in the consolidated income statement within finance costs. Changes in the fair value of embedded derivatives are recognised in the consolidated income statement within net operating income.  Derivatives embedded in other financial instruments or other host contracts are treated as
separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value. Unrealised gains or losses are reported in the consolidated income statement and are
classified in the Consolidated Balance Sheet with the host contract.  Hedge
accounting At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item,
along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents its assessment as to whether the hedging instrument that
is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of the hedged item.  Changes in the carrying value of financial instruments that are designated as hedges of future cash flows (cash flow hedges) and are found to be effective are
recognised directly in equity. Any ineffective portion of the derivative that is excluded from the hedging relationship, together with any ineffectiveness, is recognised immediately in other gains and losses in the consolidated income
statement. The difference between the spot rate and the forward rate on a derivative is also recognised in other gains and losses in the consolidated income statement. Amounts deferred in equity in respect of cash flow hedges are
subsequently recognised in the consolidated income statement in the same period in which the hedged item affects net income. Where a non-financial asset or a non-financial liability results from a forecasted transaction or firm commitment being
hedged, the amount deferred in equity is included in the initial measurement of that non-monetary asset or liability. |  | LOGO





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



3. Significant accounting policies (continued)



Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, or no
longer qualifies for hedge accounting. Any cumulative gains or losses relating to cash flow hedges recognised in equity are retained in equity and subsequently recognised in the consolidated income statement in the same period in which the
previously hedged item affects net income. If a forecasted hedged transaction is no longer expected to occur, the net cumulative gains or losses recognised in equity are transferred to the consolidated income statement immediately.

Restricted cash balances

Restricted cash balances comprise
funds held in a separate bank account which will be used to settle accrued taxation liabilities, and deposits made by us as security for certain third-party obligations. Cash balances that are subject to restrictions that expire after more than one
year are classified under non-current assets.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank, cash on hand and short-term highly liquid assets with an original maturity of three months or less and readily convertible to known amounts of
cash. Bank overdrafts are included within current borrowings.

Trade receivables and other receivables

The Group assesses at each balance sheet date whether any indications exist that a financial asset or group of financial assets is impaired.

In relation to trade receivables, a provision for impairment is made when there is objective evidence that the Group will not be able to collect all of the amounts
due under the original terms of the invoice. The carrying amount of the receivable is reduced with the loss recognised in other operating income. Impaired debts are derecognised when they are assessed as uncollectible.

Loans receivable and other receivables are carried at amortised cost using the effective interest rate method. Interest income, together with gains and losses when
the loans and receivables are derecognised or impaired, are recognised in the consolidated income statement.

Convertible loan notes

The component of the convertible loan notes issued by the Group that exhibits characteristics of a liability is recognised as a liability in the balance sheet, net
of transaction costs. On issuance of the convertible loan notes, the fair value of the liability component is determined using a market rate for an equivalent non convertible note; and this amount is classified as a financial liability measured at
amortised cost until it is extinguished on conversion or redemption.

The fair value of the instrument, which is generally the net proceeds less the
fair value of the liability, is allocated to the conversion option which is recognised and included in shareholders equity, net of transaction costs. The carrying value of the conversion option is not remeasured.

Transaction costs are apportioned between the liability and equity components of the convertible notes based on the allocation of proceeds to the liability and equity
components when the instruments are first recognised.

Treasury shares

Own equity instruments which are reacquired (treasury shares) are deducted from equity at cost. No gains or losses are recognised in the consolidated income statement on the purchase, sale, issue or cancellation of
the Groups own equity instruments.

Financial guarantee liabilities

Financial guarantee liabilities issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor (generally an associate or joint
venture of the Group) fails to fulfil a commitment in accordance with the terms of a debt instrument.

Initially a financial guarantee contract is
recognised as a liability at fair value, adjusted for transaction costs that are directly attributable to the issue of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required to settle
the present obligation at the balance sheet date, and the amount initially recognised.

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group is virtually certain that some or all of a provision will be reimbursed, that reimbursement is
recognised as a separate asset. The expense relating to any provision is reflected in the consolidated income statement at a current pre tax rate that reflects the risks specific to the liability. Where the provision is discounted, any increase in
the provision due to the passage of time is recognised as a finance cost.

Restructuring charges

The Group accounts for restructuring charges, including statutory legal requirements to pay redundancy costs, when they can be reliably measured and there is a legal
or constructive obligation. The Group recognises a provision for redundancy costs when it has a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring.







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|  | ----
|Legal claims In the ordinary course
of business, the Group is subject to various claims, suits and complaints. In consultation with internal and external advisers, management will provide for a loss in the financial statements if it is probable that a liability has been incurred at
the date of the financial statements and the amount of the loss can be reliably estimated.  Warranty costs The Group provides for warranty costs arising from its long-term contracts. At the conclusion of each project, an
assessment is made of the potential claims that may arise under the contract warranty clauses. Where a specific risk is identified and the potential for a claim is assessed as probable and can be reliably estimated, an appropriate warranty provision
is recorded. Warranty provisions are reversed at the end of the warranty period except where claims are still outstanding.  Contingent liabilities The Group discloses contingent
liabilities where events are indicative of conditions that arose after the fiscal year end, whose disclosure is material to the extent that non-disclosure may have an influence on future economic or commercial decisions within the Group, and a
reliable estimate of their financial impact cannot be made.  Share based
payments Certain employees of the Group receive part of their remuneration in the form of share options.  Equity-settled transactions with employees are measured at fair value at the date on which they
are granted. The fair value is determined using a Black-Scholes model. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are
fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting date).  The cumulative expense recognised for equity-settled transactions at each balance sheet date, until the vesting date, reflects the extent to which the vesting period
has expired and the Groups best estimate of the number of equity instruments that will ultimately vest. The cumulative expense also includes the estimated future charge to be borne by the employer entity in respect of social security
contributions, based on the intrinsic unrealised value of the stock option using the stock price on the balance sheet date. The net income or expense for a period represents the difference in cumulative expense recognised at the beginning and end of
that period.  Earnings per share Earnings per share are computed using the weighted average number of common shares and common share equivalents outstanding during each period. The convertible notes
are included in the diluted earnings per share if the effect is dilutive, regardless of whether the conversion price has been met.  The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.  4. Critical accounting judgements and key sources of estimation
uncertainty In the application of the Groups accounting polices which are described in Note 3 Significant accounting policies, the
directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience
and other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.  The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods.  Critical judgements in applying the Groups accounting policies Revenue recognition on long-term contracts Substantially
all of the Groups projects are accounted for using the percentage-of-completion method, which is standard for the Groups industry. Contract revenues and total cost estimates are reviewed and revised periodically as work progresses.
Adjustments based on the percentage-of-completion method are reflected in contract revenues in the reporting period. To the extent that these adjustments result in a reduction or elimination of previously reported contract revenues or costs, a
charge or credit is recognised against current earnings; amounts in prior periods are not restated. Such a charge or credit may be significant depending on the size of the project or the adjustment. Additional information that enhances and refines
the estimating process is often obtained after the balance sheet date but before the issuance of the financial statements which may result in an adjustment of the financial statements based on events, favourable or unfavourable occurring after the
balance sheet date. However, if a condition arises after the balance sheet date which is of a non-adjusting nature the results recognised in the financial statements will not be adjusted. |  | LOGO





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



4. Critical accounting judgements and key sources of estimation uncertainty (continued)



The percentage-of-completion method requires us to make reliable estimates of progress toward completion of
contracts and contract revenues and contract costs. We believe we assess our business risks in a manner that allows us to evaluate the outcome of our projects for purposes of making reliable estimates. Often the outcome of a project is more
favourable than originally expected, due to increases in scope or efficiencies achieved during execution. The Groups business risks have involved, and will continue to involve, unforeseen difficulties including weather, economic instability,
labour strikes, localised civil unrest, and engineering and logistical changes, particularly in major projects. The Group does not believe its business is subject to the types of inherent hazards, conditions or external factors that raise questions
about contract estimates and about the ability of either the contractor or client to perform its obligations that would indicate that the use of the percentage-of-completion method is not preferable.

Revenue recognition on variation orders and claims

A
major portion of the Groups revenue is billed under fixed-price contracts. Due to the nature of the services performed, variation orders and claims are commonly billed to clients.

A variation order is an instruction by the client for a change in the scope of the work to be performed under the contract which may lead to an increase or a decrease in contract revenue based on changes in the
specifications or design of an asset and changes in the duration of the contract. Additional contract revenue is recognised when it is probable that the client will approve the variation and the amount of revenue arising from the variation can be
reliably measured.

A claim is an amount that may be collected as reimbursement for costs not included in the contract price. A claim may arise from
delays caused by clients, errors in specifications or design, and disputed variations in contract work. The measurement of revenue arising from claims is subject to a high level of uncertainty and can be dependent on the outcome of negotiations.
Therefore, claims are recognised in contract revenue only when negotiations have reached an advanced stage such that it is probable that the client will accept the claim and the amount can be measured reliably.

Property, plant and equipment

Property, plant and
equipment are recorded at cost, and depreciation is recorded on a straight-line basis over the useful lives of the assets. Management uses its experience to estimate the remaining useful life and residual value of an asset, particularly when it has
been upgraded.

When events or changes in circumstances indicate that the carrying value of property, plant and equipment may not be recoverable a
review for impairment is carried out by Management. Where the value in use method is used to determine the recoverable amount of an asset, Management use their judgement in determining asset utilisation, profitability, remaining life,
and the discount rate when performing the calculation.

Impairment of investments in and advances to associates and joint ventures

Investments in associates and joint ventures are reviewed periodically to assess whether there is objective evidence that the carrying value of
the investment is impaired. In making this assessment, the Group considers whether or not they are able to recover the carrying value of the investment.

A provision is made against non-collectability of loans and advances made to associates and joint ventures when there is objective evidence that we will be unable to collect all amounts due according to the contractual terms of the
agreement.

Recognition of provisions and disclosure of contingent liabilities

The Group is subject to various claims, suits and complaints involving, clients, subcontractors, employees, and tax authorities and others in the ordinary course of
business. In consultation with internal and external advisers, management will recognise a provision in the Consolidated Financial Statements if information available prior to issuance of the Consolidated Financial Statements indicates that it is
probable that a liability had been incurred at the balance sheet date, and the amount of the loss can be reasonably estimated. Contingent liabilities for which a possible obligation exists are disclosed but not recognised.

Where the provision relates to a large population of items, the use of an expected value is appropriate to arrive at a best estimate of the obligation.
The expected value takes account of all possible outcomes, using probabilities to weight the outcomes. Where there is a continuous range of possible outcomes, and each point in that range is as likely as any other, the mid-point of the range is
used.

Taxation

The Group is subject to
taxation in numerous jurisdictions and significant judgement is required in calculating the consolidated tax provision. There are many transactions for which the ultimate tax determination is uncertain and for which the Group makes provisions based
on an assessment of internal estimates and appropriate external advice, including decisions regarding whether to recognise deferred tax assets in respect of tax losses. Where the final tax outcome of these matters is different from the amounts that
were initially recorded, the difference will impact the tax charge in the period in which the outcome is determined. Full details of all judgements and other issues considered are set out in Note 12 Taxation.

Fair value of derivatives and other financial instruments

As described in Note 37 Financial Instruments, the Directors use their judgement in selecting an appropriate valuation technique for financial instruments not quoted on an active market. Valuation techniques commonly used by
market practitioners are applied. For derivative financial instruments, assumptions are made based on quoted market rates adjusted for specific features of the instrument. Other financial instruments are valued using a discounted cash flow analysis
based on assumptions supported, where possible, by observable market prices or rates. Details of the assumptions used and of the results of sensitivity analyses regarding these assumptions are provided in Note 37 Financial instruments.







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |         |  |         |  |         |  |     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- |  | ------- |  | ------- |  | ----
|5. Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |         |  |         |  |         |  | LOGO
|An analysis of the Groups revenue is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |         |  |         |  |         | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 2009    |  | 2008    |  | 2007    | 
|Continuing operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |         |  |         |  |         | 
|Lump-sum contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 1,815.5 |  | 2,228.8 |  | 1,999.7 | 
|Day rate contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 393.3   |  | 293.6   |  | 406.6   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 2,208.8 |  | 2,522.4 |  | 2,406.3 | 
|Discontinued operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |         |  |         |  |         | 
|Lump-sum contracts (see Note 13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 114.8   |  | 281.8   |  | 274.0   | 
|Total revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 2,323.6 |  | 2,804.2 |  | 2,680.3 | 
|A portion of the Groups revenue is denominated in foreign
currencies and is cash flow hedged. The amounts disclosed above for revenue include the recycling of the effective amount of the foreign currency derivatives that are used to hedge foreign currency revenue (refer to Note 37 Financial
instruments).  6. Segment
information For management and reporting purposes, the Group is organised into five geographical regions or divisions which are representative of its
principal activities. In addition there is the corporate segment which manages activities that serve more than one segment. The corporate segment is described in more detail below.  The chief operating decision-maker is the Chief Executive Officer of Acergy S.A. He is assisted
by the Chief Operating Officer, the Vice Presidents of each geographical segment and other members of the Corporate Management Team. The Vice Presidents are responsible for managing all aspects of the projects within the geographical region, from
initial tender to completion. Where projects are serviced by more than one segment the costs and associated revenues are allocated to segments on the basis of the work actually performed by each segment.  The accounting policies of the reportable segments are the same as the Groups accounting
policies described in Note 3 Significant accounting policies. Segment profit represents the profit earned by each segment and includes the Groups share of results of associates and joint ventures, central administration costs
including directors salaries, investment income, other gains and losses and finance costs.  Business segments are based on geographical segments or divisions and are defined below:  Territory 1 Acergy Northern Europe and Canada
(NEC) Includes all activities in Northern Europe and Eastern Canada, and has offices in Aberdeen, Scotland, United Kingdom; Stavanger, Norway; St
Johns, Canada; and Moscow, Russia. It also includes the joint venture Acergy/Subsea 7.  Acergy Asia and Middle East (AME) This segment includes all activities in Asia Pacific, India, and Middle East and has its offices in
Singapore, Jakarta and Balikpapan, Indonesia and Perth, Australia. It also includes the joint venture SapuraAcergy.  Territory 2 Acergy Africa and Mediterranean (AFMED) Includes all activities in Africa and Mediterranean, has its office in Suresnes, France and also operates fabrication yards in Nigeria, Angola and Gabon. It also
includes the associates Dalia and Oceon.  Acergy North America and Mexico
(NAMEX) Includes activities in the United States, Mexico, Central America and Western Canada, and has its office in Houston, Texas, United States of
America.  Acergy South America (SAM) This segment includes all activities in South America and the islands of the southern Atlantic Ocean and has its office in Rio de Janeiro, Brazil and operations in
Macae, Brazil.  Corporate Acergy Corporate (CORP) This segment includes all activities
that serve more than one segment. These include: marine assets which have global mobility including construction and flow line lay support ships, ROVs and other mobile assets that are not allocated to any one segment; management of offshore
personnel; captive insurance activities; management and corporate services provided for the benefit of all of the Groups businesses. It also includes the joint ventures SHL and NKT Flexibles.  The Groups discontinued operations have been shown separately from the reportable
geographical business segments.  Additional information is shown in Note 13
Discontinued operations and Note 21 Assets classified as held for sale. | 





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



6. Segment information (continued)



Summarised financial information concerning each reportable geographical business segment is as follows:

Year ended November 30, 2009

|                                                  |  |             |   |  |             |   |  |        |   |  |       |   |  |        |   |  |         |   |  |                           |   |  |                           |  
|------------------------------------------------- |  | ----------- | - |  | ----------- | - |  | ------ | - |  | ----- | - |  | ------ | - |  | ------- | - |  | ------------------------- | - |  | ------------------------- | -
|                                                  |  | TERRITORY 1 |   |  | TERRITORY 2 |   |  |        |   |  |       |   |  |        |  
|(in $ millions)                                   |  | NEC         |   |  | AME         |   |  | AFMED  |   |  | NAMEX |   |  | SAM    |   |  | CORP    |   |  | Totalcontinuingoperations |   |  | Discontinuedoperations(g) |  
|Revenue(a,b,c)                                    |  | 648.8       |   |  | 206.0       |   |  | 999.7  |   |  | 57.8  |   |  | 288.8  |   |  | 7.7     |   |  | 2,208.8                   |   |  | 114.8                     |  
|Operating expenses(d)                             |  | (519.7      | ) |  | (156.9      | ) |  | (746.5 | ) |  | (19.1 | ) |  | (224.7 | ) |  | (16.9   | ) |  | (1,683.8                  | ) |  | (99.3                     | )
|Share of results of associates and joint ventures |  | 0.7         |   |  | 9.7         |   |  | 1.9    |   |  |      |   |  |       |   |  | 36.7    |   |  | 49.0                      |   |  |                          |  
|Depreciation                                      |  | (12.6       | ) |  | (7.3        | ) |  | (38.5  | ) |  | (6.2  | ) |  | (21.4  | ) |  | (38.5   | ) |  | (124.5                    | ) |  | (0.1                      | )
|Mobilisation costs                                |  | (0.2        | ) |  | (3.2        | ) |  |       |   |  |      |   |  | (0.9   | ) |  | (0.2    | ) |  | (4.5                      | ) |  |                          |  
|Amortisation expense                              |  |            |   |  |            |   |  |       |   |  |      |   |  |       |   |  | (2.0    | ) |  | (2.0                      | ) |  |                          |  
|Impairment of property, plant and equipment       |  |            |   |  |            |   |  | (2.0   | ) |  |      |   |  |       |   |  | (9.8    | ) |  | (11.8                     | ) |  | (1.0                      | )
|Impairment of intangible assets                   |  |            |   |  |            |   |  | (2.8   | ) |  |      |   |  |       |   |  |        |   |  | (2.8                      | ) |  |                          |  
|Research and development expense                  |  |            |   |  |            |   |  |       |   |  |      |   |  |       |   |  | (6.2    | ) |  | (6.2                      | ) |  |                          |  
|Net operating income from operations              |  | 67.4        |   |  | 37.8        |   |  | 171.3  |   |  | 26.0  |   |  | 37.5   |   |  | 2.7     |   |  | 342.7                     |   |  | 15.5                      |  
|Investment income                                 |  | 2.5         |   |  | 0.8         |   |  | 0.8    |   |  | 0.1   |   |  |       |   |  | 2.2     |   |  | 6.4                       |   |  |                          |  
|Other gains and losses                            |  | 18.6        |   |  | (0.5        | ) |  | 5.9    |   |  | (1.9  | ) |  | (1.4   | ) |  | 22.9    |   |  | 43.6                      |   |  | (1.6                      | )
|Finance costs                                     |  | 0.1         |   |  |            |   |  | 0.8    |   |  |      |   |  | (0.8   | ) |  | (31.5   | ) |  | (31.4                     | ) |  |                          |  
|Net income/(loss) before tax                      |  | 88.6        |   |  | 38.1        |   |  | 178.8  |   |  | 24.2  |   |  | 35.3   |   |  | (3.7    | ) |  | 361.3                     |   |  | 13.9                      |  
|Total assets                                      |  | 570.5       |   |  | 125.8       |   |  | 448.6  |   |  | 44.1  |   |  | 161.5  |   |  | 1,482.6 |   |  | 2,833.1                   |   |  |                          |  
|Non-current assets(e)                             |  | 481.9       |   |  | 33.9        |   |  | 27.4   |   |  | 0.1   |   |  | 78.6   |   |  | 439.5   |   |  | 1,061.4                   |   |  |                          |  
|Interest in associates and joint ventures         |  |            |   |  |            |   |  | 3.6    |   |  |      |   |  |       |   |  | 186.7   |   |  | 190.3                     |   |  |                          |  
|Capital expenditure(f)                            |  | 110.2       |   |  |            |   |  | 51.3   |   |  |      |   |  | 3.6    |   |  | 6.7     |   |  | 171.8                     |   |  |                          |  



|(a) | Revenue represents only external revenues earned by each segment. An analysis of inter-segment revenues has not been included as this information is not regularly provided to the
chief operating decision maker.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Two clients in the year ended November 30, 2009 accounted for more than 10% of the Groups revenue from continuing operations. The revenue from these clients was $875.6
million and was attributable to Acergy AFMED and Acergy NEC.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) | Revenue consists of $1,615.8 million for core SURF activity, $388.2 million of Conventional activity, and $204.8 million of IMR/Survey activity.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------



|(d) | The amount for NAMEX includes inter-regional expenditure sharing arrangements.
|--- | ------------------------------------------------------------------------------



|(e) | Non-current assets consist of property, plant and equipment, interest in associates and joint ventures, advances and receivables and derivative financial instruments.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(f) | Capital expenditure is actual cash outflow expenditure incurred.
|--- | ----------------------------------------------------------------



|(g) | See Note 13 Discontinued operations for further information.
|--- | --------------------------------------------------------------







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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111









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |             |   |  |             |   |  |         |   |  |       |  |        |   |  |         |   |  |                           |   |  |                           |   |  |     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- | - |  | ----------- | - |  | ------- | - |  | ----- |  | ------ | - |  | ------- | - |  | ------------------------- | - |  | ------------------------- | - |  | ----
|Year ended November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |             |   |  |             |   |  |         |   |  |       |  |        |   |  |         |   |  |                           |   |  |                           |   |  | LOGO
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | TERRITORY 1 |   |  | TERRITORY 2 |   |  |         |   |  |       |  |        |   |  |        
|(in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | NEC         |   |  | AME         |   |  | AFMED   |   |  | NAMEX |  | SAM    |   |  | CORP    |   |  | Totalcontinuingoperations |   |  | Discontinuedoperations(g) |   | 
|Revenue(a,b,c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 843.1       |   |  | 180.8       |   |  | 1,175.9 |   |  | 4.4   |  | 320.1  |   |  | (1.9    | ) |  | 2,522.4                   |   |  | 281.8                     |   | 
|Operating expenses(d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | (574.5      | ) |  | (129.0      | ) |  | (897.1  | ) |  | 17.2  |  | (268.9 | ) |  | (21.9   | ) |  | (1,874.2                  | ) |  | (304.4                    | ) | 
|Share of results of associates and joint ventures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 3.5         |   |  | (15.4       | ) |  | (0.3    | ) |  |      |  |       |   |  | 75.2    |   |  | 63.0                      |   |  |                          |   | 
|Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | (10.0       | ) |  | (5.0        | ) |  | (31.4   | ) |  |      |  | (18.9  | ) |  | (42.5   | ) |  | (107.8                    | ) |  | (8.0                      | ) | 
|Mobilisation costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | (0.2        | ) |  | (1.9        | ) |  |        |   |  |      |  | (0.3   | ) |  |        |   |  | (2.4                      | ) |  |                          |   | 
|Amortisation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |            |   |  |            |   |  | (0.2    | ) |  |      |  |       |   |  |        |   |  | (0.2                      | ) |  |                          |   | 
|Impairment of property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | (1.8        | ) |  |            |   |  |        |   |  |      |  |       |   |  |        |   |  | (1.8                      | ) |  | (1.0                      | ) | 
|Reversal of impairment of property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |            |   |  |            |   |  |        |   |  |      |  |       |   |  |        |   |  |                          |   |  | 14.3                      |   | 
|Research and development expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |            |   |  |            |   |  |        |   |  |      |  |       |   |  | (6.8    | ) |  | (6.8                      | ) |  |                          |   | 
|Net operating income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 192.0       |   |  | 14.4        |   |  | 183.7   |   |  | 10.5  |  | 22.6   |   |  | 37.6    |   |  | 460.8                     |   |  | (22.5                     | ) | 
|Investment income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 4.5         |   |  | 2.4         |   |  | 1.4     |   |  |      |  |       |   |  | 9.6     |   |  | 17.9                      |   |  |                          |   | 
|Other gains and losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | (11.7       | ) |  | 0.4         |   |  | 34.8    |   |  | 7.3   |  | 5.1    |   |  | 8.2     |   |  | 44.1                      |   |  | (1.1                      | ) | 
|Finance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 0.3         |   |  |            |   |  | (0.6    | ) |  | 0.1   |  | (0.6   | ) |  | (29.7   | ) |  | (30.5                     | ) |  | (1.0                      | ) | 
|Net income/(loss) before tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 185.1       |   |  | 17.2        |   |  | 219.3   |   |  | 17.9  |  | 27.1   |   |  | 25.7    |   |  | 492.3                     |   |  | (24.6                     | ) | 
|Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 304.3       |   |  | 102.2       |   |  | 707.6   |   |  | 22.1  |  | 206.9  |   |  | 1,128.0 |   |  | 2,471.1                   |   |  |                          |   | 
|Non-current assets(e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 95.6        |   |  | 52.4        |   |  | 339.3   |   |  | 0.2   |  | 123.8  |   |  | 484.3   |   |  | 1,095.6                   |   |  |                          |   | 
|Interest in associates and joint ventures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 2.6         |   |  |            |   |  | 4.3     |   |  |      |  |       |   |  | 133.3   |   |  | 140.2                     |   |  |                          |   | 
|Capital expenditure(f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 229.3       |   |  | 0.3         |   |  | 17.5    |   |  | 0.2   |  | 20.4   |   |  | 25.2    |   |  | 292.9                     |   |  | 1.4                       |   | 
|(a)  Revenue
represents only external revenues earned by each segment. An analysis of inter-segment revenues has not been included as this information is not regularly provided to the chief operating decision maker.  (b)  Two clients in the year ended November 30,
2008 accounted for more than 10% of the Groups revenue from continuing operations. The revenue from these clients was $1,009.5 million and was attributable to Acergy AFMED and Acergy NEC.  (c)   Revenue consists of $1,832.4 million for
core SURF activity, $442.0 million of Conventional activity, and $248.0 million of IMR/Survey activity.  (d)  The amount for NAMEX includes inter-regional expenditure sharing arrangements.  (e)  Non-current assets consist of property,
plant and equipment, interest in associates and joint ventures, advances and receivables and derivative financial instruments.  (f)   Capital expenditure is actual cash outflow expenditure incurred.  (g)  See Note 13 Discontinued operations
for further information. |  |            





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112





Financial Review and Statements:

Notes to the Consolidated Financial Statements continued



6. Segment information (continued)

Year ended November 30, 2007

|                                                  |  |             |   |  |             |   |  |          |   |  |       |   |  |        |   |  |         |   |  |                           |   |  |                           |  
|------------------------------------------------- |  | ----------- | - |  | ----------- | - |  | -------- | - |  | ----- | - |  | ------ | - |  | ------- | - |  | ------------------------- | - |  | ------------------------- | -
|                                                  |  | TERRITORY 1 |   |  | TERRITORY 2 |   |  |          |   |  |       |   |  |        |  
|(in $ millions)                                   |  | NEC         |   |  | AME         |   |  | AFMED    |   |  | NAMEX |   |  | SAM    |   |  | CORP    |   |  | Totalcontinuingoperations |   |  | Discontinuedoperations(f) |  
|Revenue(a,b,c)                                    |  | 696.6       |   |  | 102.4       |   |  | 1,398.4  |   |  | 3.2   |   |  | 202.0  |   |  | 3.7     |   |  | 2,406.3                   |   |  | 274.0                     |  
|Operating expenses                                |  | (509.2      | ) |  | (101.1      | ) |  | (1,069.8 | ) |  | (3.2  | ) |  | (188.9 | ) |  | 13.1    |   |  | (1,859.1                  | ) |  | (268.1                    | )
|Share of results of associates and joint ventures |  | 12.3        |   |  | (10.3       | ) |  | 2.8      |   |  |      |   |  |       |   |  | 26.7    |   |  | 31.5                      |   |  |                          |  
|Depreciation                                      |  | (0.9        | ) |  | (27.6       | ) |  | (33.6    | ) |  |      |   |  | (9.6   | ) |  | (11.5   | ) |  | (83.2                     | ) |  | (7.8                      | )
|Mobilisation costs                                |  | (0.2        | ) |  | (0.4        | ) |  |         |   |  |      |   |  | (1.8   | ) |  | (0.2    | ) |  | (2.6                      | ) |  |                          |  
|Amortisation expense                              |  |            |   |  |            |   |  | (0.3     | ) |  |      |   |  |       |   |  |        |   |  | (0.3                      | ) |  |                          |  
|Impairment of property, plant and equipment       |  | (0.1        | ) |  |            |   |  |         |   |  |      |   |  |       |   |  | (0.2    | ) |  | (0.3                      | ) |  |                          |  
|Research and development expense                  |  |            |   |  |            |   |  |         |   |  |      |   |  |       |   |  | (4.2    | ) |  | (4.2                      | ) |  |                          |  
|Net operating income from operations              |  | 121.5       |   |  | (28.7       | ) |  | 229.2    |   |  | (5.2  | ) |  | (1.3   | ) |  | 36.0    |   |  | 351.5                     |   |  | 1.3                       |  
|Investment income                                 |  | 5.4         |   |  | 1.3         |   |  | 1.5      |   |  | 0.1   |   |  |       |   |  | 22.5    |   |  | 30.8                      |   |  |                          |  
|Other gains and losses                            |  | 18.7        |   |  | 11.9        |   |  | (20.2    | ) |  | (0.2  | ) |  | 1.0    |   |  | (10.6   | ) |  | 0.6                       |   |  | 1.5                       |  
|Finance costs                                     |  | (0.1        | ) |  |            |   |  | (10.4    | ) |  |      |   |  |       |   |  | (28.5   | ) |  | (39.0                     | ) |  |                          |  
|Net income/(loss) before tax                      |  | 145.5       |   |  | (15.5       | ) |  | 200.1    |   |  | (5.3  | ) |  | (0.3   | ) |  | 19.4    |   |  | 343.9                     |   |  | 2.8                       |  
|Total assets                                      |  | 291.0       |   |  | 99.5        |   |  | 744.3    |   |  | 27.1  |   |  | 216.3  |   |  | 1,048.6 |   |  | 2,426.8                   |   |  |                          |  
|Non-current assets(d)                             |  | 118.3       |   |  | 49.3        |   |  | 256.8    |   |  | 0.3   |   |  | 125.1  |   |  | 410.6   |   |  | 960.4                     |   |  |                          |  
|Interest in associates and joint ventures         |  | 2.5         |   |  |            |   |  | 6.4      |   |  |      |   |  |       |   |  | 97.5    |   |  | 106.4                     |   |  |                          |  
|Capital expenditure(e)                            |  | 7.3         |   |  | 19.2        |   |  | 47.8     |   |  |      |   |  | 44.5   |   |  | 142.0   |   |  | 260.8                     |   |  | 0.2                       |  



|(a) | Revenue represents only external revenues earned by each segment. An analysis of inter-segment revenues has not been included as this information is not regularly provided to the
chief operating decision maker.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Two clients in the year ended November 30, 2007 accounted for more than 10.0% of the Groups revenue from continuing operations. The revenue from these clients was
$958.4 million and was attributable to Acergy AFMED, Acergy NEC, and Acergy AME.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Revenue consists of $1,905.2 million for core SURF activity, $354.0 million of Conventional activity, $143.7 million of IMR/Survey activity, and $3.4 million of other activity.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Non-current assets consist of property, plant and equipment, interest in associates and joint ventures, advances and receivables and derivative financial instruments.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Capital expenditure is actual cash outflow expenditure incurred.
|--- | ----------------------------------------------------------------

|(f) | See Note 13 Discontinued operations for further information.
|--- | --------------------------------------------------------------

7. Net operating income

Net operating income from continuing and discontinued operations has been arrived at
after charging/(crediting):



|                                                        |  |       |  |                         |   |  |      
|------------------------------------------------------- |  | ----- |  | ----------------------- | - |  | -----
|                                                        |  |       |  | Continuing operations  
|For the fiscal year (in $ millions)                     |  | 2009  |  | 2008                    |   |  | 2007 
|Research and development costs as expense               |  | 6.2   |  | 6.8                     |   |  | 4.2  
|Depreciation of property, plant and equipment           |  | 124.5 |  | 107.8                   |   |  | 83.2 
|Mobilisation costs                                      |  | 4.5   |  | 2.4                     |   |  | 2.6  
|Amortisation expense                                    |  | 2.0   |  | 0.2                     |   |  | 0.3  
|Impairment of property, plant and equipment             |  | 11.8  |  | 1.8                     |   |  | 0.3  
|Impairment of intangible assets                         |  | 2.8   |  |                        |   |  |     
|Operating lease costs recognised as expense             |  | 129.4 |  | 130.9                   |   |  | 95.9 
|Cost of inventories recognised as expense               |  | 44.6  |  | 60.6                    |   |  | 45.0 
|Write down of inventory recognised as expense           |  | 0.2   |  | 3.3                     |   |  | 0.3  
|Employee benefits                                       |  | 669.5 |  | 799.6                   |   |  | 749.5
|Pension settlement                                      |  |      |  | (33.3                   | ) |  |     
|                                                        |  |       |  | Discontinued operations
|For the fiscal year (in $ millions)                     |  | 2009  |  | 2008                    |   |  | 2007 
|Depreciation of property, plant and equipment           |  | 0.1   |  | 8.0                     |   |  | 7.8  
|Impairment of property, plant and equipment             |  | 1.0   |  | 1.0                     |   |  |     
|Reversal of impairment of property, plant and equipment |  |      |  | (14.3                   | ) |  |     







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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113









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |      |      |      |   |  |       |   |  | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---- | ---- | - |  | ----- | - |  | 
|8. Auditors remuneration The following table sets forth aggregate fees billed to Acergy Group by our principal accounting firm, Deloitte LLP and its affiliates (Deloitte), in each of the fiscal years 2009, 2008 and 2007:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      | LOGO
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 2009 |      | 2008 |   |  | 2007  |   | 
|Audit fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 3.7  |      | 4.5  |   |  | 5.5   |   | 
|Audit-related fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 0.1  |      | 0.5  |   |  | 1.0   |   | 
|Tax fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 1.4  |      | 2.1  |   |  | 2.3   |   | 
|Other fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |     |      |     |   |  |      |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 5.2  |      | 7.1  |   |  | 8.8   |   | 
|Audit Fees Audit fees principally constitute fees billed for professional services rendered by Deloitte for the audit of our consolidated and individual statutory financial
statements for each of fiscal years 2009, 2008 and 2007, and the limited scope procedures performed in respect of our quarterly financial results announcements during fiscal years 2009, 2008 and 2007. For fiscal years 2008 and 2007 it also includes
fees associated with attestation in respect of the Sarbanes-Oxley Act of 2002.  Audit-Related Fees Audit-related fees constitute fees billed for assurance and related services by Deloitte that are reasonably related
to the performance of the audit or review of the Consolidated Financial Statements, other than the services reported above under Audit Fees, in each of fiscal years 2009, 2008 and 2007. In fiscal years 2009, 2008 and 2007, audit-related
fees principally consisted of fees relating to IFRS transition advice and audits, and internal control advice.  Tax Fees Tax fees constitute fees billed for professional services rendered by Deloitte for tax compliance and
tax advice in each of fiscal years 2009, 2008 and 2007. In fiscal years 2009, 2008 and 2007, tax advisory fees principally consisted of services provided to U.K., Dutch, Singaporean, US and Brazilian subsidiaries, in addition to services related to
consolidated Group matters.  Audit Committee Pre-Approval Policy and
Procedures Our Audit Committee adopted a policy on November 18, 2002 to pre-approve all audit and non-audit services provided by our
independent public accountants provided to us or our subsidiaries prior to the engagement of our independent public accountants with respect to such services. Prior to engagement, the Audit Committee pre-approves the independent public
accountants services within each category. The Audit Committee may delegate one or more members who are independent directors of the Board of Directors to pre-approve the engagement of the independent public accountants. If one or more members
of the Audit Committee delegated to do so have pre-approved the engagement of the independent public accountants, the approval of this engagement will be placed on the agenda of the next Audit Committee meeting for review and ratification. Our Audit
Committee pre-approved all audit and non-audit services provided to us and to our subsidiaries during the periods listed above. |  |     
|9. Investment income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |      |      |      |   |  |       |   | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 2009 |      | 2008 |   |  | 2007  |   | 
|Interest income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |      |      |      |   |  |       |   | 
|Bank deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 6.4  |      | 17.9 |   |  | 30.8  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 6.4  |      | 17.9 |   |  | 30.8  |   | 
|Investment income represents
interest received on positive cash balances invested at variable interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |      |      |   |  |       |   | 
|10. Other gains and losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |      |      |      |   |  |       |   | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 2009 |      | 2008 |   |  | 2007  |   | 
|Gains on disposal of property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 0.4  |      | 5.4  |   |  | 13.6  |   | 
|Net foreign currency exchange gains/(losses)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 43.2 |      | 39.0 |   |  | (11.6 | ) | 
|Reclassification of foreign currency adjustments upon liquidation of entities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |     |      | (0.3 | ) |  | (1.4  | ) | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 43.6 |      | 44.1 |   |  | 0.6   |   | 

Ineffective hedges are disclosed within the net foreign currency exchange gains/(losses).





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114





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



11. Finance costs

|                                                        |  |      |   |  |      |   |  |      |  
|------------------------------------------------------- |  | ---- | - |  | ---- | - |  | ---- | -
|For the fiscal year (in $ millions)                     |  | 2009 |   |  | 2008 |   |  | 2007 |  
|Interest on borrowings                                  |  | 4.7  |   |  | 4.2  |   |  | 2.0  |  
|Interest on convertible loan notes                      |  | 29.5 |   |  | 28.4 |   |  | 27.1 |  
|Unwinding of discount on provisions (see Note 34)       |  | 0.3  |   |  | 0.2  |   |  |     |  
|Total borrowing costs                                   |  | 34.5 |   |  | 32.8 |   |  | 29.1 |  
|Less: amounts included in the cost of qualifying assets |  | (0.5 | ) |  | (3.0 | ) |  | (0.8 | )
|                                                        |  | 34.0 |   |  | 29.8 |   |  | 28.3 |  
|Interest on tax liabilities                             |  | (2.6 | ) |  | 0.7  |   |  | 10.7 |  
|Total                                                   |  | 31.4 |   |  | 30.5 |   |  | 39.0 |  

Borrowing costs included in the cost of qualifying assets during the year arose on the general borrowing pool and are calculated by applying a capitalisation rate of 7.35% (2008 and 2007: 7.35%) to expenditure on such assets.

Interest on tax liabilities for 2009 was a credit of $2.6 million as result of the release of the 2007 accruals made in relation to the French Tax audit.

12. Taxation

Tax on net income
for the year

|                                                                      |  |       |   |  |       |   |  |       |  
|--------------------------------------------------------------------- |  | ----- | - |  | ----- | - |  | ----- | -
|For the fiscal year (in $ millions)                                   |  | 2009  |   |  | 2008  |   |  | 2007  |  
|Tax charged in the income statement:                                  |  |       |   |  |       |   |  |       |  
|Current tax:                                                          |  |       |   |  |       |   |  |       |  
|Corporation tax                                                       |  | 124.6 |   |  | 109.7 |   |  | 164.5 |  
|Adjustments for prior years                                           |  | (8.6  | ) |  | 3.0   |   |  | 59.0  |  
|Total current tax                                                     |  | 116.0 |   |  | 112.7 |   |  | 223.5 |  
|Deferred tax due to origination and reversal of temporary differences |  | (6.5  | ) |  | 47.8  |   |  | (11.3 | )
|Total                                                                 |  | 109.5 |   |  | 160.5 |   |  | 212.2 |  
|                                                                      |  |       |   |  |       |   |  |       |  
|Attributable to:                                                      |  |       |   |  |       |   |  |       |  
|Continuing operations                                                 |  | 102.8 |   |  | 162.6 |   |  | 215.1 |  
|Discontinued operations                                               |  | 6.7   |   |  | (2.1  | ) |  | (2.9  | )
|Total                                                                 |  | 109.5 |   |  | 160.5 |   |  | 212.2 |  
|                                                                      |  |       |   |  |       |   |  |       |  
|Tax recognised in equity                                              |  |       |   |  |       |   |  |       |  
|For the fiscal year (in $ millions)                                   |  | 2009  |   |  | 2008  |   |  | 2007  |  
|Tax relating to items charged/(credited) to equity:                   |  |       |   |  |       |   |  |       |  
|Current tax:                                                          |  |       |   |  |       |   |  |       |  
|Exchange differences                                                  |  | (19.6 | ) |  | 16.4  |   |  | (9.1  | )
|Share based payments                                                  |  |      |   |  | (2.4  | ) |  | (5.9  | )
|Income tax recognised directly in equity                              |  | (19.6 | ) |  | 14.0  |   |  | (15.0 | )
|Deferred tax:                                                         |  |       |   |  |       |   |  |       |  
|Net loss on revaluation of cash flow hedges                           |  | 12.3  |   |  | (8.5  | ) |  | (0.8  | )
|Share based payments                                                  |  | (1.3  | ) |  | 4.1   |   |  | 1.8   |  
|Actuarial (losses)/gains on defined benefit pension schemes           |  | (0.8  | ) |  | (1.1  | ) |  | 2.5   |  
|Deferred tax recognised directly in equity                            |  | 10.2  |   |  | (5.5  | ) |  | 3.5   |  

Reconciliation of the total tax charge

Acergy S.A. is a 1929 Luxembourg Holding Company. Luxembourg tax law provides for a special tax
regime for 1929 Holding Companies and consequently Acergy S.A. is not subject to tax in Luxembourg. Income taxes have been provided based on the tax laws and rates in the countries where business operations have been established and earn income. The
Groups tax charge is determined by applying the statutory tax rate to the net income earned in each of the jurisdictions in which it operates, taking account of permanent differences between book and tax net incomes.

The Groups tax charge has been reconciled to a tax rate for the fiscal year 2009 of 28% (2008: 28%; 2007: 30%), being the expected blended statutory rate taking
into consideration the jurisdictions in which the Group operates.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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115









|                                                                                                                                     |  |                   |  |                       |      |  |                                             |     |  |                                             |   |  |     
|------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------- |  | --------------------- | ---- |  | ------------------------------------------- | --- |  | ------------------------------------------- | - |  | ----
|For the fiscal year (in $ millions)                                                                                                  |  |                   |  | 2009                  |      |  | 2008                                        |     |  | 2007                                        |   |  | LOGO
|Accounting income before tax on continuing operations                                                                                |  |                   |  | 361.3                 |      |  | 492.3                                       |     |  | 343.9                                       |   | 
|Tax at the effective tax rate of 28% (2008: 28%, 2007: 30%)                                                                          |  |                   |  | 101.2                 |      |  | 137.8                                       |     |  | 103.2                                       |   | 
|Effects of:                                                                                                                          |  |                   |  |                       |      |  |                                             |     |  |                                             |   | 
|Benefit of Tonnage tax regime (see below)                                                                                            |  |                   |  | (6.0                  | )    |  | (7.5                                        | )   |  | (0.5                                        | ) | 
|Different tax rates of subsidiaries operating in other jurisdictions (tax rate differences)                                          |  | 10.6              |  |                       | 11.6 |  |                                             | 4.1 |  |                                            
|Share-based payments                                                                                                                 |  |                   |  | 0.6                   |      |  | 5.3                                         |     |  | (0.8                                        | ) | 
|Adjustments related to prior years                                                                                                   |  |                   |  | (8.0                  | )    |  | 3.0                                         |     |  | 59.0                                        |   | 
|Movement in unrecognised deferred tax assets                                                                                         |  |                   |  | (16.0                 | )    |  | (4.1                                        | )   |  | 35.4                                        |   | 
|Net incomes not subject to tax                                                                                                       |  |                   |  | (9.0                  | )    |  | 4.3                                         |     |  | (21.3                                       | ) | 
|Tax effect of share of results of associates and joint ventures                                                                      |  |                   |  | (0.1                  | )    |  | (4.1                                        | )   |  | 0.5                                         |   | 
|Withholding taxes                                                                                                                    |  |                   |  | 26.5                  |      |  | 16.2                                        |     |  | 29.1                                        |   | 
|Expenses not deductible for tax purposes                                                                                             |  |                   |  |                      |      |  | 0.3                                         |     |  | 10.7                                        |   | 
|Other permanent differences                                                                                                          |  |                   |  | 3.0                   |      |  | (0.2                                        | )   |  | (4.3                                        | ) | 
|Tax charge in the income statement                                                                                                   |  |                   |  | 102.8                 |      |  | 162.6                                       |     |  | 215.1                                       |   | 
|                                                                                                                                     |  |                   |  |                       |      |  |                                             |     |  |                                             |   | 
|Deferred tax                                                                                                                         |  |                   |  |                       |      |  |                                             |     |  |                                             |   | 
|Analysis of the movements in the net deferred tax balance during the year:                                                           |  |                   |  |                       |      |  |                                             |     |  |                                            
|For the fiscal year (in $ millions)                                                                                                  |  |                   |  | 2009                  |      |  | 2008                                        |     |  | 2007                                        |   | 
|At December 1                                                                                                                        |  |                   |  | (16.3                 | )    |  | 24.3                                        |     |  | 16.3                                        |   | 
|Credited/(charged) to income statement                                                                                               |  |                   |  | 6.5                   |      |  | (47.8                                       | )   |  | 11.3                                        |   | 
|Transfer to current tax                                                                                                              |  |                   |  | (9.1                  | )    |  |                                            |     |  |                                            |   | 
|(Charged)/credited directly to equity                                                                                                |  |                   |  | (10.2                 | )    |  | 5.5                                         |     |  | (3.5                                        | ) | 
|Foreign exchange movements                                                                                                           |  |                   |  | (1.5                  | )    |  | 1.7                                         |     |  | 0.2                                         |   | 
|At November 30                                                                                                                       |  |                   |  | (30.6                 | )    |  | (16.3                                       | )   |  | 24.3                                        |   | 
|Deferred tax assets and liabilities in respect of continuing
operations, before offset of balances within countries, are as follows: |  |                  
|As at November 30, 2009                                                                                                              |  |                   |  |                       |      |  |                                             |     |  |                                             |   | 
|(in $ millions)                                                                                                                      |  | Deferred taxasset |  | Deferred taxliability |      |  | Netrecogniseddeferred tax asset/(liability) |     |  | Amountcredited/(charged) in incomestatement |   | 
|Property, plant and equipment                                                                                                        |  | 2.5               |  | (9.0                  | )    |  | (6.5                                        | )   |  | 5.4                                         |   | 
|Accrued expenses                                                                                                                     |  | 14.2              |  | (34.2                 | )    |  | (20.0                                       | )   |  | (5.9                                        | ) | 
|Share-based payments                                                                                                                 |  | 2.2               |  |                      |      |  | 2.2                                         |     |  | 0.4                                         |   | 
|Convertible loan notes                                                                                                               |  |                  |  | (17.7                 | )    |  | (17.7                                       | )   |  |                                            |   | 
|Tax losses                                                                                                                           |  | 11.4              |  |                      |      |  | 11.4                                        |     |  | 6.6                                         |   | 
|Total                                                                                                                                |  | 30.3              |  | (60.9                 | )    |  | (30.6                                       | )   |  | 6.5                                         |   | 
|                                                                                                                                     |  |                   |  |                       |      |  |                                             |     |  |                                             |   | 
|As at November 30, 2008                                                                                                              |  |                   |  |                       |      |  |                                             |     |  |                                             |   | 
|(in $ millions)                                                                                                                      |  | Deferred taxasset |  | Deferred taxliability |      |  | Netrecogniseddeferred taxasset/(liability)  |     |  | Amountcredited/(charged) inincomestatement  |   | 
|Property, plant and equipment                                                                                                        |  | 1.1               |  | (13.0                 | )    |  | (11.9                                       | )   |  | 5.4                                         |   | 
|Accrued expenses                                                                                                                     |  | 44.3              |  | (36.3                 | )    |  | 8.0                                         |     |  | (49.9                                       | ) | 
|Share-based payments                                                                                                                 |  | 0.5               |  |                      |      |  | 0.5                                         |     |  | (3.4                                        | ) | 
|Convertible loan notes                                                                                                               |  |                  |  | (17.7                 | )    |  | (17.7                                       | )   |  |                                            |   | 
|Tax losses                                                                                                                           |  | 4.8               |  |                      |      |  | 4.8                                         |     |  | 0.1                                         |   | 
|Total                                                                                                                                |  | 50.7              |  | (67.0                 | )    |  | (16.3                                       | )   |  | (47.8                                       | ) | 





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116





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



12. Taxation (continued)



As at November 30, 2007

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                   |  |                       |   |  |                                            |   |  |                                            |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- |  | --------------------- | - |  | ------------------------------------------ | - |  | ------------------------------------------ | -
|(in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Deferred taxasset |  | Deferred taxliability |   |  | Netrecogniseddeferred taxasset/(liability) |   |  | Amountcredited/(charged) inincomestatement |  
|Property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                  |  | (17.3                 | ) |  | (17.3                                      | ) |  | (7.2                                       | )
|Accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 46.7              |  |                      |   |  | 46.7                                       |   |  | 16.6                                       |  
|Share-based payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 7.9               |  |                      |   |  | 7.9                                        |   |  | 0.8                                        |  
|Convertible loan notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                  |  | (17.7                 | ) |  | (17.7                                      | ) |  |                                           |  
|Tax losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 4.7               |  |                      |   |  | 4.7                                        |   |  | 1.1                                        |  
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 59.3              |  | (35.0                 | ) |  | 24.3                                       |   |  | 11.3                                       |  
|Deferred tax is analysed in balance sheet, after offset of
balances within countries, as:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                   |  |                       |   |  |                                            |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                   |  |                       |   |  |                                            |   |  |                                            |  
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                   |  | 2009                  |   |  | 2008                                       |   |  | 2007                                       |  
|Deferred tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                   |  | 19.3                  |   |  | 39.8                                       |   |  | 59.9                                       |  
|Deferred tax liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                   |  | (49.9                 | ) |  | (56.1                                      | ) |  | (35.6                                      | )
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                   |  | (30.6                 | ) |  | (16.3                                      | ) |  | 24.3                                       |  
|At the balance sheet date, the Group has unused tax losses of
$148 million (2008: $194.6 million) available for offset against future net incomes. A deferred tax asset has been recognised in respect of $40.7 million (2008: $13.9 million) of such losses. No deferred tax asset has been recognised in respect of
the remaining $107.3 million (2008: $180.7 million) due to the unpredictability of future net income streams. In addition the Group has unrecognised deferred tax assets of approximately $40 million in respect of other temporary
differences.  Net operating losses (NOLs) including Internal Revenue Code (IRC)
s.163js in the US NOLs to carry forward in various countries will expire as follows: | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                   |  | 2009                  |   |  | 2008                                       |   |  | 2007                                       |  
|Within five years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                   |  | 2.4                   |   |  | 0.1                                        |   |  | 56.1                                       |  
|6 to 10 years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                   |  |                      |   |  |                                           |   |  |                                           |  
|11 to 15 years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                   |  |                      |   |  |                                           |   |  |                                           |  
|16 to 20 years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                   |  | 55.5                  |   |  | 82.7                                       |   |  | 160.1                                      |  
|Without time limit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                   |  | 90.1                  |   |  | 111.8                                      |   |  | 41.2                                       |  
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                   |  | 148.0                 |   |  | 194.6                                      |   |  | 257.4                                      |  

The
majority of NOLs are concentrated in the US where the ability to carry forward NOLs is subject to a limitation as a consequence of Stolt-Nielsen S.A. (SNSA) having sold its remaining stock in the Company in 2005. As at November 30, 2009, it is
considered likely that subject to future profitability the Group will be able to access NOLs arising both before and after the date of the change of control of $55.5 million (2008: $80.8 million). In addition to NOLs the Group has IRC s.163j
suspended interest deductions of $45.5 million (2008: $56.3 million). However, with a history of incurring losses for tax purposes in the US, none of the NOLs and IRC s.163j suspended interest deductions in the US has been recognised as a deferred
tax asset.

Tonnage tax regime

The tax charge
reflects a net benefit in fiscal year 2009 of $6.0 million (2008: $7.5 million, 2007: $0.5 million) as a result of being taxable under the current United Kingdom (UK) Tonnage Tax Regime, as compared to the UK tax that would be payable had an
election to join the tonnage tax regime not been made.

Tax contingencies and provisions

Operations are carried out in several countries, through subsidiaries and branches of subsidiaries, and are subject to the jurisdiction of a significant number of
taxing authorities. Furthermore, the offshore mobile nature of operations means that the Group routinely has to deal with complex transfer pricing, permanent establishment and other similar international tax issues as well as competing tax systems
where tax treaties may not exist.

In the ordinary course of events operations will be subject to audit, enquiry and possible re-assessment by different
tax authorities. Management provides taxes for the amounts that it considers probable of being payable as a result of these audits and for which a reasonable estimate may be made. Management also separately considers if taxes payable in relation to
filings not yet subject to audit may be higher than the amounts stated in the filed tax return, and makes additional provisions for probable risks if appropriate. As forecasting the ultimate outcome includes some uncertainty, the risk exists that
adjustments will be recognised to the tax provisions in later years as and when these and other matters are finalised with the appropriate tax authorities.







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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117









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|During the year the Group has resolved the UK authorities Tonnage Tax enquiry and made substantial progress toward closing the French tax
audit (up to 2005). As a result, in the fiscal year 2009, the Group recorded a net tax release of $10.2 million (2008: charge of $4.1 million, 2007: $59.8 million) in respect of ongoing tax audits. The release arises both from adjustments that have
been agreed with the relevant tax authorities and changes that have been made to amounts probable of being paid. This release is net of additional provisions accrued following the Groups review of its uncertain tax positions.  Whilst the Group has made the incremental provisions noted in the preceding paragraph, reflecting
its view of the most likely outcomes, it is possible that the ultimate resolution of these matters could result in tax charges that are materially higher or lower than the amount the company has provided.  In 2009, operations in various countries were subject to enquiries, audits and disputes,
including but not limited to those in France, UK, US, Canada, Brazil, Australia, Denmark, Gabon, Nigeria and Congo. These audits are all at various stages of completion. Operating entities in these countries have co-operated fully with the relevant
tax authorities whilst seeking to defend their tax positions.  The tax audit in
France, which commenced in February 2007, has continued into fiscal year 2009. The audit involves several legal entities and covered the fiscal years from 2000 to 2007 and included challenges to the utilisation of losses brought forward. In
addition, the French tax authorities have adopted a very wide ranging approach and have raised a number of challenges including both international tax issues such as transfer pricing and territoriality as well as more routine domestic French
matters. During the year, the Group made significant progress in reaching an agreement with the French Tax audits through 2005.  In the UK, during 2007, an enquiry was started with respect to the UK ship owning companies and the amounts of net incomes allocated to transport activities and
therefore eligible for tonnage tax treatment. Under the Tonnage Tax Regime the commercial net income of our UK ship owning companies arising from transport operations (allocated on a just and reasonable basis) is subject to tax calculated by
reference to a formula linked to the tonnage of the vessels concerned. The enquiry was closed in 2009 with no material additional adjustment being required.  Each year management completes a detailed review of uncertain tax positions across the Group. The principal risks that arise for the Group are in respect of permanent
establishment, transfer pricing and other similar international tax issues. In common with other international groups, the conflict between the Groups global operating model and the jurisdictional approach of taxing authorities often leads to
uncertainty on tax positions. A provision was recognised in 2009 in respect of potential exposures arising from the contracting structure of the Group and restructuring previously undertaken. In addition to those liabilities for which a provision
was recognised, we also identified other uncertain tax positions which are considered less than probable but more than remote. Currently no provision is carried for these additional risk items.  13. Discontinued operations On November 27, 2008, the Group entered into an agreement with Saipem (Portugal) Comercio Maritimo S.U. Lda to dispose of Acergy Piper, a semi-submersible pipelay
barge, for $78.0 million. The disposal was driven by a desire to continue to focus the Group on the core operations of deepwater Subsea construction, Umbilicals, Risers and Flowlines (SURF). The disposal was completed on January 9,
2009.  Acergy Piper was the Groups sole operating unit in the
Trunklines market which involved the offshore market installation of large-diameter pipelines used to carry oil and gas over large distances. The disposal of the barge therefore represents the Groups discontinuance of this
operation.  In 2009 the Group continues to generate revenues through the Trunklines
operation due to additional related work on the Mexilhao project that does not require Acergy Piper vessel.  As at November 30, 2008 Acergy Piper was classified as an Asset classified as held for sale (refer to Note 21). However, because the offer price indicated that the market value less cost to
sell of the asset was higher than the net book value the impairment recorded in fiscal year 2003 was partially reversed to adjust the carrying value to market value less costs to sell as confirmed by the agreed sale price.  Discontinued operations in fiscal year 2007 also included the final completion of the remaining
Inspection, Maintenance and Repair (IMR) and conventional project work in Trinidad and Tobago (part of the North America and Mexico region) which had commenced prior to the disposal of nine IMR and conventional ships to Cal Dive
International Inc., during 2005 and 2006. |  | LOGO





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



13. Discontinued operations (continued)



The results of the discontinued operations, which have been included in the consolidated income statement, were as
follows:



|                                                                                                                                                                                                                                              |  |                 |   |  |                 |   |  |            |   |  |                           |   |  |                             |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------- | - |  | --------------- | - |  | ---------- | - |  | ------------------------- | - |  | --------------------------- | -
|For the fiscal year (in $ millions)                                                                                                                                                                                                           |  | 2009            |   |  | 2008            |   |  | 2007       |   |  | 2007                      |   |  | 2007                        |  
|                                                                                                                                                                                                                                              |  | TotalTrunklines |   |  | TotalTrunklines |   |  | Trunklines |   |  | NAMEX,IMR andConventional |   |  | Total                       |  
|Revenue                                                                                                                                                                                                                                       |  | 114.8           |   |  | 281.8           |   |  | 257.1      |   |  | 16.9                      |   |  | 274.0                       |  
|Expenses(a)                                                                                                                                                                                                                                   |  | (99.9           | ) |  | (320.7          | ) |  | (260.2     | ) |  | (11.0                     | ) |  | (271.2                      | )
|Impairment (charge)/reversal                                                                                                                                                                                                                  |  | (1.0            | ) |  | 14.3            |   |  |           |   |  |                          |   |  |                            |  
|Income/(loss) before tax                                                                                                                                                                                                                      |  | 13.9            |   |  | (24.6           | ) |  | (3.1       | ) |  | 5.9                       |   |  | 2.8                         |  
|Taxation on discontinued operations                                                                                                                                                                                                           |  | (6.7            | ) |  | 2.1             |   |  | 2.9        |   |  |                          |   |  | 2.9                         |  
|Income/(loss) from discontinued operations                                                                                                                                                                                                    |  | 7.2             |   |  | (22.5           | ) |  | (0.2       | ) |  | 5.9                       |   |  | 5.7                         |  
|(a) Includes operating expenses, administrative expenses,
finance costs and other gains and losses.  The impact on the segments of the
discontinued operations which have been included in the consolidated income statement were as follows: | 
|                                                                                                                                                                                                                                              |  |                 |   |  |                 |   |  |            |   |  |                           |   |  | 2009                        |  
|For the fiscal year (in $ millions)                                                                                                                                                                                                           |  |                 |   |  | NEC             |   |  | SAM        |   |  | CORP                      |   |  | Totaldiscontinuedoperations |  
|Revenue                                                                                                                                                                                                                                       |  |                 |   |  |                |   |  | 114.8      |   |  |                          |   |  | 114.8                       |  
|Expenses(a)                                                                                                                                                                                                                                   |  |                 |   |  |                |   |  | (97.4      | ) |  | (2.5                      | ) |  | (99.9                       | )
|Impairment charge                                                                                                                                                                                                                             |  |                 |   |  |                |   |  |           |   |  | (1.0                      | ) |  | (1.0                        | )
|Income/(loss) before tax                                                                                                                                                                                                                      |  |                 |   |  |                |   |  | 17.4       |   |  | (3.5                      | ) |  | 13.9                        |  
|Taxation on discontinued operations                                                                                                                                                                                                           |  |                 |   |  |                |   |  | (6.7       | ) |  |                          |   |  | (6.7                        | )
|Income/(loss) from discontinued operations                                                                                                                                                                                                    |  |                 |   |  |                |   |  | 10.7       |   |  | (3.5                      | ) |  | 7.2                         |  
|(a) Includes operating expenses, administrative expenses,
finance costs and other gains and losses.                                                                                                                                           | 
|                                                                                                                                                                                                                                              |  |                 |   |  |                 |   |  |            |   |  |                           |   |  | 2008                        |  
|For the fiscal year (in $ millions)                                                                                                                                                                                                           |  |                 |   |  | NEC             |   |  | SAM        |   |  | CORP                      |   |  | Totaldiscontinuedoperations |  
|Revenue                                                                                                                                                                                                                                       |  |                 |   |  | 5.6             |   |  | 275.9      |   |  | 0.3                       |   |  | 281.8                       |  
|Expenses(a)                                                                                                                                                                                                                                   |  |                 |   |  | (36.0           | ) |  | (284.4     | ) |  | (0.3                      | ) |  | (320.7                      | )
|Impairment reversal                                                                                                                                                                                                                           |  |                 |   |  | 14.3            |   |  |           |   |  |                          |   |  | 14.3                        |  
|Loss before tax                                                                                                                                                                                                                               |  |                 |   |  | (16.1           | ) |  | (8.5       | ) |  |                          |   |  | (24.6                       | )
|Taxation on discontinued operations                                                                                                                                                                                                           |  |                 |   |  | 2.1             |   |  |           |   |  |                          |   |  | 2.1                         |  
|Loss from discontinued operations                                                                                                                                                                                                             |  |                 |   |  | (14.0           | ) |  | (8.5       | ) |  |                          |   |  | (22.5                       | )
|                                                                                                                                                                                                                                             
|(a) Includes operating expenses, administrative expenses, finance costs and other gains and losses.                                                                                                                                           | 
|                                                                                                                                                                                                                                              |  |                 |   |  |                 |   |  |            |   |  |                           |   |  | 2007                        |  
|For the fiscal year (in $ millions)                                                                                                                                                                                                           |  |                 |   |  | NEC             |   |  | SAM        |   |  | NAMEX                     |   |  | Totaldiscontinuedoperations |  
|Revenue                                                                                                                                                                                                                                       |  |                 |   |  | 211.2           |   |  | 45.9       |   |  | 16.9                      |   |  | 274.0                       |  
|Expenses(a)                                                                                                                                                                                                                                   |  |                 |   |  | (192.1          | ) |  | (68.1      | ) |  | (11.0                     | ) |  | (271.2                      | )
|Income/(loss) before tax                                                                                                                                                                                                                      |  |                 |   |  | 19.1            |   |  | (22.2      | ) |  | 5.9                       |   |  | 2.8                         |  
|Taxation on discontinued operations                                                                                                                                                                                                           |  |                 |   |  | 2.9             |   |  |           |   |  |                          |   |  | 2.9                         |  
|Income/(loss) from discontinued operations                                                                                                                                                                                                    |  |                 |   |  | 22.0            |   |  | (22.2      | ) |  | 5.9                       |   |  | 5.7                         |  

(a)
Includes operating expenses, administrative expenses, finance costs and other gains and losses.

Discontinued operations generated $18.7 million (2008:
used $5.6 million) of the Groups net operating cash flows, received $73.0 million (2008: $nil) net proceeds from the sale of Acergy Piper, and paid $nil (2008: $1.4 million) in respect of investing activities.







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|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                  |      |                  |   |  |                  |   |  |                  |   |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------- | ---- | ---------------- | - |  | ---------------- | - |  | ---------------- | - |  | 
|14. Earnings per share Basic earnings per share Basic earnings per share amounts are calculated by dividing the net income by the
weighted average number of shares outstanding during the fiscal year as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                  | LOGO
|For the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                  |      | 2009 $ per share |   |  | 2008 $ per share |   |  | 2007 $ per share |   | 
|Basic earnings per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                  |      |                  |   |  |                  |   |  |                  |   | 
|From continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                  |      | 1.30             |   |  | 1.76             |   |  | 0.65             |   | 
|From discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                  |      | 0.04             |   |  | (0.12            | ) |  | 0.03             |   | 
|Total basic earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                  |      | 1.34             |   |  | 1.64             |   |  | 0.68             |   | 
|The earnings and weighted average number of common shares used
in the calculation of basic earnings per share are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                 
|For the fiscal year (in $
millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                  |      | 2009             |   |  | 2008             |   |  | 2007             |   | 
|Net income attributable to equity holders of the parent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                  |      | 245.0            |   |  | 301.4            |   |  | 127.3            |   | 
|Net (income)/loss for the year from discontinued operations (see Note 13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                  |      | (7.2             | ) |  | 22.5             |   |  | (5.7             | ) | 
|Earnings used in the calculation of basic earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                  |      | 237.8            |   |  | 323.9            |   |  | 121.6            |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Number of shares |      | Number of shares |   |  | Number of shares |   | 
|Weighted average number of common shares for the purpose of basic earnings per
share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 182,956,010      |      | 184,142,708      |   |  | 188,435,592      |   | 
|Diluted earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                  |      |                  |   |  |                  |   |  |                  |   | 
|For the diluted earnings per share calculation the net income is adjusted for the effect of the convertible notes if dilutive, and the weighted average number of shares
outstanding is adjusted for the potential dilutive effect of share options and the convertible loan notes as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                 
|For the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                  |      | 2009 $ per share |   |  | 2008 $ per share |   |  | 2007 $ per share |   | 
|Diluted earnings per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                  |      |                  |   |  |                  |   |  |                  |   | 
|From continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                  |      | 1.29             |   |  | 1.70             |   |  | 0.63             |   | 
|From discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                  |      | 0.04             |   |  | (0.11            | ) |  | 0.03             |   | 
|Total diluted earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                  |      | 1.33             |   |  | 1.59             |   |  | 0.66             |   | 
|The earnings and weighted average number of common shares used
in the calculation of diluted earnings per share are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                  |      | 2009             |   |  | 2008             |   |  | 2007             |   | 
|Net income for the year attributable to equity holders of the parent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                  |      | 245.0            |   |  | 301.4            |   |  | 127.3            |   | 
|Interest on convertible loan notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                  |      |                 |   |  | 28.4             |   |  |                 |   | 
|Net (income)/loss for the year from discontinued operations (see Note 13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                  |      | (7.2             | ) |  | 22.5             |   |  | (5.7             | ) | 
|Earnings used in the calculation of diluted earnings per share from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                  |      | 237.8            |   |  | 352.3            |   |  | 121.6            |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Number of shares |      | Number of shares |   |  | Number of shares |   | 
|Weighted average number of common shares used in the calculation of basic earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 182,956,010      |      | 184,142,708      |   |  | 188,435,592      |   | 
|Convertible loan notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                 |      | 21,258,503       |   |  |                 |   | 
|Share options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 835,150          |      | 2,134,846        |   |  | 4,115,090        |   | 
|Weighted average number of common shares used in the calculation of diluted earnings per
share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 183,791,160      |      | 207,536,057      |   |  | 192,550,682      |   | 
|In the fiscal year 2009 the potential common shares of
22,016,733 for the convertible loan notes were excluded from the weighted average number of common shares as their effect was anti-dilutive. In the fiscal year 2008 the potential common shares of 21,258,503 for the convertible loan notes were
included in the weighted average number of common shares as their effect was dilutive. In the fiscal year 2007 the potential common shares of 21,008,403 for the convertible loan notes were excluded from the weighted average number of common shares
as their effect was anti-dilutive.  In the fiscal year 2009 2,810,948 shares
relating to share option plans (2008 and 2007: 1,923,234 and 7,000 shares) that could potentially dilute the weighted average earnings per share, were excluded from the calculation of diluted earnings per share due to being anti-dilutive for the
period. |  |                 





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Financial Review and Statements:

Notes to the Consolidated Financial Statements continued



15. Intangible assets



|                                                              |  |          |  |                      |   |  |                  |   |  |       |  
|------------------------------------------------------------- |  | -------- |  | -------------------- | - |  | ---------------- | - |  | ----- | -
|For the fiscal year (in $ millions)                           |  | Software |  | Lease accesspremiums |   |  | Otherintangibles |   |  | Total |  
|Cost:                                                         |  |          |  |                      |   |  |                  |   |  |       |  
|At December 1, 2007                                           |  |         |  | 4.7                  |   |  | 0.9              |   |  | 5.6   |  
|Additions                                                     |  |         |  |                     |   |  | 0.4              |   |  | 0.4   |  
|Foreign currency exchange rate changes                        |  |         |  |                     |   |  | (0.1             | ) |  | (0.1  | )
|Retirement                                                    |  |         |  |                     |   |  | (0.3             | ) |  | (0.3  | )
|At November 30, 2008                                          |  |         |  | 4.7                  |   |  | 0.9              |   |  | 5.6   |  
|Reclassified from property, plant and equipment (see note 16) |  | 19.3     |  |                     |   |  |                 |   |  | 19.3  |  
|Additions                                                     |  | 6.3      |  |                     |   |  | 0.1              |   |  | 6.4   |  
|Foreign currency exchange rate changes                        |  | 1.9      |  |                     |   |  |                 |   |  | 1.9   |  
|Reclassified as held for sale (see note 21)                   |  |         |  | (4.7                 | ) |  | (0.1             | ) |  | (4.8  | )
|At November 30, 2009                                          |  | 27.5     |  |                     |   |  | 0.9              |   |  | 28.4  |  
|                                                              |  |          |  |                      |   |  |                  |   |  |       |  
|Amortisation:                                                 |  |          |  |                      |   |  |                  |   |  |       |  
|At December 1, 2007                                           |  |         |  | 1.6                  |   |  | 0.3              |   |  | 1.9   |  
|Charge for the year                                           |  |         |  | 0.2                  |   |  |                 |   |  | 0.2   |  
|Retirement                                                    |  |         |  |                     |   |  | (0.3             | ) |  | (0.3  | )
|At November 30, 2008                                          |  |         |  | 1.8                  |   |  |                 |   |  | 1.8   |  
|Reclassified from property, plant and equipment (see note 16) |  | 15.6     |  |                     |   |  |                 |   |  | 15.6  |  
|Charge for the year                                           |  | 1.9      |  | 0.1                  |   |  |                 |   |  | 2.0   |  
|Foreign currency exchange rate changes                        |  | 1.5      |  |                     |   |  |                 |   |  | 1.5   |  
|Impairment                                                    |  |         |  | 2.8                  |   |  |                 |   |  | 2.8   |  
|Reclassified as held for sale (see note 21)                   |  |         |  | (4.7                 | ) |  |                 |   |  | (4.7  | )
|At November 30, 2009                                          |  | 19.0     |  |                     |   |  |                 |   |  | 19.0  |  
|                                                              |  |          |  |                      |   |  |                  |   |  |       |  
|Carrying amount:                                              |  |          |  |                      |   |  |                  |   |  |       |  
|At November 30, 2008                                          |  |         |  | 2.9                  |   |  | 0.9              |   |  | 3.8   |  
|At November 30, 2009                                          |  | 8.5      |  |                     |   |  | 0.9              |   |  | 9.4   |  

There were net intangible assets as at November 30, 2009 of $9.4 million (2008: $3.8 million), of which $8.5 million related to software.

Software with a net carrying value of $3.7 million was re-classified from other assets in property, plant and equipment as at December 1, 2008 in order to better reflect the assets nature.

The amortisation expense for software was $1.9 million for 2009 (2008: $nil million) which related to the assets reclassified from property, plant and equipment and
new additions in 2009. Software has a useful life of three years, amortised on a straight-line basis and is included in administrative expenses in the consolidated income statement. The related assets depreciation expense for 2008 was $1.3
million included in administrative expenses in the consolidated income statement.

The remaining $0.1 million (2008: $0.2 million) expense relates to the
Sonamet lease access premium for the Lobito Yard in Angola. The intangible asset has a useful life of 18 years as of the first date of consolidation in fiscal year 2004, amortised on a straight-line basis and is included in operating expenses in the
consolidated income statement. This asset was impaired at November 30, 2009 following the classification of the Groups investments in Sonamet and Sonacergy as assets held for sale. See Note 21 for further details.

At November 30, 2009, the Group had entered into contractual commitments for the acquisition of intangible software amounting to $12.6 million (2008: nil) (Refer
to Note 35 Commitments and contingent liabilities).







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16. Property, plant and equipment



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                           |   |  |                    |   |  |                   |   |  |             |   |  |         |   |  |     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------- | - |  | ------------------ | - |  | ----------------- | - |  | ----------- | - |  | ------- | - |  | ----
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Constructionsupport ships |   |  | Operatingequipment |   |  | Land andbuildings |   |  | Otherassets |   |  | Total   |   |  | LOGO
|Cost:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                           |   |  |                    |   |  |                   |   |  |             |   |  |         |   | 
|At December 1, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 642.7                     |   |  | 636.8              |   |  | 36.4              |   |  | 44.0        |   |  | 1,359.9 |   | 
|Additions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 180.1                     |   |  | 123.4              |   |  | 6.6               |   |  | 16.5        |   |  | 326.6   |   | 
|Exchange differences                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | (12.7                     | ) |  | (53.1              | ) |  | (4.6              | ) |  | (9.3        | ) |  | (79.7   | ) | 
|Disposals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | (4.4                      | ) |  | (15.3              | ) |  | (11.7             | ) |  | (1.6        | ) |  | (33.0   | ) | 
|Reclassified as held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | (131.0                    | ) |  |                   |   |  |                  |   |  |            |   |  | (131.0  | ) | 
|Transfers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | (9.5                      | ) |  | 3.9                |   |  | (0.5              | ) |  |            |   |  | (6.1    | ) | 
|At November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 665.2                     |   |  | 695.7              |   |  | 26.2              |   |  | 49.6        |   |  | 1,436.7 |   | 
|Reclassified as intangibles (see note 15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                          |   |  | (11.8              | ) |  |                  |   |  | (7.5        | ) |  | (19.3   | ) | 
|Additions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 53.2                      |   |  | 60.6               |   |  | 13.1              |   |  | 4.7         |   |  | 131.6   |   | 
|Exchange differences                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 9.8                       |   |  | 13.5               |   |  | 1.4               |   |  | 2.8         |   |  | 27.5    |   | 
|Disposals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | (1.2                      | ) |  | (9.9               | ) |  | (0.1              | ) |  | (0.8        | ) |  | (12.0   | ) | 
|Reclassified as held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                          |   |  | (94.3              | ) |  | (34.7             | ) |  | (3.3        | ) |  | (132.3  | ) | 
|Transfers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 9.1                       |   |  | 4.8                |   |  | (3.8              | ) |  | (10.1       | ) |  |        |   | 
|At November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 736.1                     |   |  | 658.6              |   |  | 2.1               |   |  | 35.4        |   |  | 1,432.2 |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                           |   |  |                    |   |  |                   |   |  |             |   |  |         |   | 
|Accumulated depreciation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                           |   |  |                    |   |  |                   |   |  |             |   |  |         |   | 
|At December 1, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 303.9                     |   |  | 205.0              |   |  | 13.5              |   |  | 23.3        |   |  | 545.7   |   | 
|Charge for the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 34.1                      |   |  | 69.9               |   |  | 2.1               |   |  | 9.7         |   |  | 115.8   |   | 
|Exchange differences                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | (2.3                      | ) |  | (28.6              | ) |  | (1.7              | ) |  | (5.6        | ) |  | (38.2   | ) | 
|Impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                          |   |  | 2.8                |   |  |                  |   |  |            |   |  | 2.8     |   | 
|Reversal of impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | (14.3                     | ) |  |                   |   |  |                  |   |  |            |   |  | (14.3   | ) | 
|Eliminated on disposals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | (4.2                      | ) |  | (14.5              | ) |  | (5.9              | ) |  | (1.5        | ) |  | (26.1   | ) | 
|Reclassified as held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | (56.6                     | ) |  |                   |   |  |                  |   |  |            |   |  | (56.6   | ) | 
|Transfers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 5.8                       |   |  | (6.1               | ) |  |                  |   |  | 0.3         |   |  |        |   | 
|At November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 266.4                     |   |  | 228.5              |   |  | 8.0               |   |  | 26.2        |   |  | 529.1   |   | 
|Reclassified as intangibles (see note 15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                          |   |  | (11.8              | ) |  |                  |   |  | (3.8        | ) |  | (15.6   | ) | 
|Charge for the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 47.5                      |   |  | 69.7               |   |  | 0.4               |   |  | 7.0         |   |  | 124.6   |   | 
|Exchange differences                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 2.9                       |   |  | 6.6                |   |  | 1.0               |   |  | 2.2         |   |  | 12.7    |   | 
|Impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                          |   |  | 12.2               |   |  | 0.6               |   |  |            |   |  | 12.8    |   | 
|Eliminated on disposals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | (2.4                      | ) |  | (8.4               | ) |  | (0.1              | ) |  | (0.6        | ) |  | (11.5   | ) | 
|Reclassified as held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                          |   |  | (29.7              | ) |  | (9.0              | ) |  | (3.0        | ) |  | (41.7   | ) | 
|Transfers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 1.9                       |   |  | (1.2               | ) |  | 1.7               |   |  | (2.4        | ) |  |        |   | 
|At November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 316.3                     |   |  | 265.9              |   |  | 2.6               |   |  | 25.6        |   |  | 610.4   |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                           |   |  |                    |   |  |                   |   |  |             |   |  |         |   | 
|Carrying amount:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                           |   |  |                    |   |  |                   |   |  |             |   |  |         |   | 
|At November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 398.8                     |   |  | 467.2              |   |  | 18.2              |   |  | 23.4        |   |  | 907.6   |   | 
|At November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 419.8                     |   |  | 392.7              |   |  | (0.5              | ) |  | 9.8         |   |  | 821.8   |   | 
|In fiscal year 2009 impairment charges were charged to
operations in respect of property, plant and equipment assets of $12.8 million.   Under-utilised operating equipment  $9.8 million: A pipe line end terminal handling system ($4.0m) and a
reel drive system ($5.8m) were identified to be under-utilised with no anticipated utilisation for 2010 onwards. In the fourth quarter of 2009 an impairment charge of $9.8 million was recorded to reduce the net book value of the assets to
$nil.   Operating equipment
 $1.0 million: the equipment represents four generators and generating sets which were purchased for Acergy Piper. Following the classification of Acergy Piper as an asset held for sale in the fourth quarter of 2008, an
impairment charge of $1.0 million was recorded to reduce the net book value to $2.0 million as it was anticipated the generators would be under-utilised in the future. Due to continued under utilisation a further impairment charge of $1.0 million
was recorded to reduce the net book value to $1.0 million at November 30, 2009. |  |                           |  





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122





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



16. Property, plant and equipment (continued)



| |  | Prior to the classification of the Sonamet and Sonacergy subsidiaries as an asset held for sale (refer to Note 21 Assets classified as held for
sale), an impairment of $2.0 million was recorded.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In fiscal year 2008 impairment charges were charged to operations in respect
of property, plant and equipment assets of $2.8 million and an impairment reversal of $14.3 million as follows:



| |  | Under-utilised operating equipment  $1.8 million: A Deep Modular Advanced Tie-In System was identified to be under-utilised with no anticipated utilisation
for 2009 onwards. In the fourth quarter of 2008 an impairment charge of $1.8 million was recorded to reduce the net book value of the asset to $nil.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Operating equipment  $1.0 million: the equipment represents four generators and generating sets as described above.
|- |  | --------------------------------------------------------------------------------------------------------------------



| |  | Prior to the classification of Acergy Piper as an asset held for sale (refer to Note 21 Assets classified as held for sale), an impairment of
$14.3 million, as recorded in 2003, was reversed. This has been included within Note 13 Discontinued operations.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

At
November 30, 2009, the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to $181.6 million (2008: $130.0 million) (Refer to Note 35 Commitments and contingent liabilities).

17. Interest in associates and joint ventures

Investment in associates and joint ventures



|                                             |  |             |  |                              |  |                       |  |              |  |             |  |       |  |      
|-------------------------------------------- |  | ----------- |  | ---------------------------- |  | --------------------- |  | ------------ |  | ----------- |  | ----- |  | -----
|As at November 30 (in $ millions)            |  | Year End    |  | Country/Placeof Registration |  | AcergyBusinessSegment |  |              |  | Ownership % |  | 2009  |  | 2008 
|Mar Profundo Girassol (MPG)(a)             |  |             |  | Angola                       |  | AFMED                 |  | JointVenture |  | 50          |  |      |  |     
|Dalia Floater Angola, TSS Dalia (Dalia)(b) |  | December 31 |  | France                       |  | AFMED                 |  | Associate    |  | 17.5        |  | 3.6   |  | 4.3  
|Global Oceon Engineers (Oceon)             |  | December 31 |  | Nigeria                      |  | AFMED                 |  | Associate    |  | 40          |  |      |  |     
|Acergy/Subsea 7                              |  | November 30 |  | Norway                       |  | NEC                   |  | JointVenture |  | 50          |  |      |  | 2.6  
|SapuraAcergy                                 |  | January 31  |  | Malaysia                     |  | AME                   |  | JointVenture |  | 50          |  |      |  |     
|Seaway Heavy Lifting (SHL)                 |  | December 31 |  | Cyprus/Netherlands           |  | CORP                  |  | JointVenture |  | 50          |  | 77.6  |  | 64.6 
|NKT Flexibles I/S (NKT Flexibles)          |  | December 31 |  | Denmark                      |  | CORP                  |  | JointVenture |  | 49          |  | 109.1 |  | 68.7 
|Total                                        |  |             |  |                              |  |                       |  |              |  |             |  | 190.3 |  | 140.2



|(a) | MPG was liquidated on February 12, 2008.
|--- | ----------------------------------------



|(b) | Acergy owns 17.5% and has a significant influence in Dalia Floater Angola and TSS Dalia. Acergy has a veto on decision-making as decisions require unanimous agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

The movement in the balance of equity investments, including long-term advances during the fiscal years 2009 and 2008 were as follows:



|                                                           |  |       |   |  |       |  
|---------------------------------------------------------- |  | ----- | - |  | ----- | -
|For the fiscal year (in $ millions)                        |  | 2009  |   |  | 2008  |  
|At December 1                                              |  | 140.2 |   |  | 106.4 |  
|Share in net income from associates and joint ventures     |  | 49.0  |   |  | 63.0  |  
|Dividends distributed to the Group                         |  | (28.0 | ) |  | (10.9 | )
|Increase in investment                                     |  | 20.6  |   |  |      |  
|Reclassification of negative equity balance as liabilities |  | (7.7  | ) |  | 19.8  |  
|Change in fair value of derivative instruments             |  | (1.7  | ) |  | (23.7 | )
|Impact of currency translation                             |  | 17.9  |   |  | (14.4 | )
|At November 30                                             |  | 190.3 |   |  | 140.2 |  







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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123









Share in net income of associates and joint
ventures:



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |      |   |  |       |   |  |       |   |  |     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | - |  | ----- | - |  | ----- | - |  | ----
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 2009 |   |  | 2008  |   |  | 2007  |   |  | LOGO
|MPG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |     |   |  |      |   |  | (0.1  | ) | 
|Dalia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 2.9  |   |  | 0.6   |   |  | 3.4   |   | 
|Oceon                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | (0.9 | ) |  | (0.9  | ) |  | (0.5  | ) | 
|Acergy/Subsea 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 0.6  |   |  | 3.5   |   |  | 12.3  |   | 
|SapuraAcergy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 9.7  |   |  | (15.4 | ) |  | (10.3 | ) | 
|SHL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 15.0 |   |  | 29.6  |   |  | 8.8   |   | 
|NKT Flexibles(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 21.7 |   |  | 45.6  |   |  | 17.9  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 49.0 |   |  | 63.0  |   |  | 31.5  |   | 
|(a) Taxation in
respect of the NKT Flexibles joint venture, which has a legal status of a partnership, has been included in the results of the relevant subsidiary, which holds the investment in the joint venture.  No long-lived asset impairment charges were recorded by our associates and joint ventures during
fiscal years 2009, 2008 and 2007.  Taxation in respect of joint ventures, which have
a legal status of partnership, has been included in the results of the relevant subsidiaries, which hold the investments in the joint ventures. Undistributed reserves of all other joint ventures will not be taxed on distribution.  Dividend distributed to the Group In fiscal year 2009 we received a total of $28.0 million dividends from three joint ventures (SHL, Acergy/Subsea 7 and Dalia). $20.6 million of the SHL dividend was
used to increase the Groups investment in this venture.  In fiscal year 2008
we received a total of $10.9 million dividends from three joint ventures (Acergy/Subsea 7, NKT Flexibles and Dalia).  Increase in investment In the fiscal year 2009 the Group invested an additional $20.6 million to increase our
investment in SHL. The Group has additional commitments to the SHL joint venture as described in Note 35 Commitments and contingent liabilities.  A cash advance of $5.0 million (2008: $15.1 million) was provided to SapuraAcergy during the year.  Significant restrictions Any dividend payable by SHL is currently being reinvested in the joint venture until the delivery of the new ship Oleg Strashnov expected in the second half of 2010.  SapuraAcergy is regulated by the central bank of Malaysia on repatriation of funds. Dividends are
not subject to withholding taxes.  Capital commitments SHL has entered into a ship building contract for the heavy lift vessel, Oleg Strashnov, amounting to ¤286 million ($431 million). As at
November 30, 2009 instalments representing 65% of the contract value were paid. The investment is financed by means of a Revolving Credit and Guarantee Facility comprising 140 million ($211 million) and $180 million available for cash drawings, and $33 million available for the issuance of guarantees.  Reclassification of negative equity balance The Group accrues losses in excess of the investment value when we are committed to provide ongoing financial support to the joint venture.  The Groups share of any net liabilities of joint ventures is offset against long-term
funding provided to that joint venture. Any net liabilities after accounting for each offset are classified as other liabilities. In fiscal year 2009 a reversal of $8.4 million (2008: increase of $19.0 million) was recorded against long term
funding, relating to SapuraAcergy losses previously offset against funding. A $0.7 million (2008: $0.8 million) reclassification to other liabilities was recorded in fiscal year 2009 in respect of Oceon.  Impact of currency translation This relates to the translation of investments in the equity of joint ventures which have a functional currency other than the US Dollar, and relates mainly to NKT
Flexibles. |  |     





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124





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





17. Interest in associates and joint
ventures (continued)

Summarised financial information

Summarised financial information for associates and joint ventures, representing 100% of the respective amounts included in their financial statements, is as follows:

Aggregated financial data for associates and joint ventures

|                                                                |  |         |   |  |         |   |  |        |  
|--------------------------------------------------------------- |  | ------- | - |  | ------- | - |  | ------ | -
|For the fiscal year (in $ millions)                             |  | 2009    |   |  | 2008    |   |  | 2007   |  
|Revenue                                                         |  | 616.8   |   |  | 757.7   |   |  | 537.9  |  
|Operating expenses                                              |  | (330.0  | ) |  | (524.5  | ) |  | (350.6 | )
|Gross profit                                                    |  | 286.8   |   |  | 233.2   |   |  | 187.3  |  
|Other income                                                    |  | 6.2     |   |  | 64.8    |   |  | 9.1    |  
|Other expenses                                                  |  | (161.2  | ) |  | (139.3  | ) |  | (109.5 | )
|Net income                                                      |  | 131.8   |   |  | 158.7   |   |  | 86.9   |  
|                                                                |  |         |  
|Aggregated balance sheet data for associates and joint ventures |  |         |   |  |         |   |  |        |  
|At November 30 (in $ millions)                                  |  | 2009    |   |  | 2008    |   |  | 2007   |  
|Current assets                                                  |  | 656.2   |   |  | 516.3   |   |  | 430.1  |  
|Non-current assets                                              |  | 786.9   |   |  | 593.1   |   |  | 399.7  |  
|Total assets                                                    |  | 1,443.1 |   |  | 1,109.4 |   |  | 829.8  |  
|Current liabilities                                             |  | 508.5   |   |  | 341.4   |   |  | 296.0  |  
|Non-current liabilities                                         |  | 504.5   |   |  | 442.3   |   |  | 288.8  |  
|Total liabilities                                               |  | 1,013.0 |   |  | 783.7   |   |  | 584.8  |  

Transactions with associates and joint ventures

Certain contractual services are conducted with joint ventures for commercial reasons.

In fiscal year 2009 the income statement data for the joint ventures presented above includes other expenses including general and administrative
charges of $38.0 million (2008: $47.4 million).

Joint ventures received in fiscal year 2009 $15.5 million (2008: $28.2 million) in respect of goods and
services provided.

As at November 30, 2009 the balance sheet data includes amounts payable to joint ventures of $0.2 million (2008: $8.8 million)
and current amounts receivable of $44.0 million (2008: $22.8 million) (refer to Note 20 Trade and other receivables) and non-current amounts receivable of $32.7 million (2008: $16.6 million) (refer to Note 18 Advances and
receivables). An allowance for doubtful debts of $2.1m (2008: $nil) has been offset against the trade receivable balance.

Guarantee
arrangements with joint ventures

SapuraAcergy Assets Pte Ltd (SAPL), previously known as Nautical Vessels Pte Ltd., is a 50/50-owned
joint venture between Nautical Essence Sdn. Bhd. (wholly owned by SapuraCrest Petroleum Berhad) and Acergy Bermuda Ltd. (wholly owned by Acergy S.A.). In 2007 the respective parent companies issued a Charter Guarantee guaranteeing the charter
payments from the charterer of Sapura 3000, SapuraAcergySdn. Bhd, to the ship owner, SAPL. The limit of the guarantee is, at any time, the sum of the outstanding amounts under a $240 million Facility Agreement of SAPL less $100 million. Any
call under the guarantee will not result in a lump sum payment being made, but the guarantors, severally, will have to service the debt by way of charter payments due from the charterer to the ship owner until the termination date of the loan, which
is February 2, 2015.

SapuraAcergy Sdn. Bhd. (SASB) is a 50/50-owned joint venture between Nautical Essence Sdn. Bhd. (wholly owned by
SapuraCrest Petroleum Berhad) and Acergy Bermuda Ltd. (wholly owned by Acergy S.A.). The company has entered into a $181.3 million multicurrency facility for the financing of the Shell Gumusut-Kakap Project. Both Acergy S.A. and SapuraCrest
Petroleum Berhad have issued several guarantees for 50% of the financing. The facility consists of $41.3 million available for the issuance of bank guarantees, $60.0 million available for letters of credit, and two revolving credit facilities for
$60.0 million and $20.0 million respectively. As at November 30, 2009 the amount available for bank guarantees was fully utilised.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |      |  |       |   |  |       |   |  |     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- |  | ----- | - |  | ----- | - |  | ----
|18. Advances and receivables As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |      |  | 2009  |   |  | 2008  |   |  | LOGO
|Non-current amounts due from associates and joint ventures (see Note 17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |      |  | 32.7  |   |  | 16.6  |   | 
|Capitalised fees for long-term loan facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |      |  | 2.8   |   |  | 4.0   |   | 
|Deposits held by third parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |      |  | 0.4   |   |  | 0.5   |   | 
|Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |      |  | 7.4   |   |  | 8.3   |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |      |  | 43.3  |   |  | 29.4  |   | 
|The fee for the loan facilities (refer to Note 30
Borrowings) is deferred and is expensed over the periods for which each loan facility is held.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |     
|Prepaid expenses are incurred in the normal course of business
and represent expenditure which will be recognised in a period exceeding twelve months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |     
|19. Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |     
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 2009 |  | 2008  |   |  | 2007  |   | 
|Materials and spares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 13.2 |  | 25.4  |   |  | 20.0  |   | 
|Consumables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 9.2  |  | 13.1  |   |  | 9.2   |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 22.4 |  | 38.5  |   |  | 29.2  |   | 
|Total amount of inventory charged
to income statement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 44.6 |  | 60.6  |   |  | 45.0  |   | 
|Write-down on inventory charged to income statement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 0.2  |  | 3.3   |   |  | 0.3   |   | 
|The inventories include a reserve as at November 30, 2009 of
$3.1 million (2008: $3.5 million, 2007: $2.2 million). During the fiscal year 2009, $0.2 million (2008: $2.0 million, 2007: $0.9 million) of the inventory reserve was reversed due to slow moving items which were subsequently consumed during the
fiscal year.                                                                                                                                                                                                                                                                                                                                                                              |  |     
|There are no
inventories pledged as security for liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |     
|20. Trade and other receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |     
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |  | 2009  |   |  | 2008  |   | 
|Trade receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |  | 202.0 |   |  | 298.7 |   | 
|Allowance for doubtful debts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |      |  | (0.4  | ) |  | (1.1  | ) | 
|Net trade receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |      |  | 201.6 |   |  | 297.6 |   | 
|Current amounts due from associates and joint ventures (see Note 17)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |      |  | 44.0  |   |  | 22.8  |   | 
|Advances to suppliers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |      |  | 8.0   |   |  | 8.6   |   | 
|Other taxes receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |      |  | 18.0  |   |  | 14.2  |   | 
|Other receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |      |  | 26.3  |   |  | 11.3  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |      |  | 297.9 |   |  | 354.5 |   | 
|The average credit period taken during 2009 was 37 days (2008: 39
days).  Details of how the Group manages its credit risk and further analysis of the
trade receivables balance can be found in Note 37 Financial instruments.  Trade receivables includes, in respect of the largest client as at November 30, 2009 $69.9 million (2008: $64.2 million), and in respect of the second largest client $49.8 million (2008: $52.5 million).  Other taxes receivable are for amounts refundable from
the tax authorities in the various countries of operations during the next fiscal period.  Other receivables include amounts receivable from employees and amounts receivable under insurance claims. |  |     





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126





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





21. Assets
classified as held for sale

Assets held for sale as at November 30, 2009 were as follows:

Investments in Sonamet and Sonacergy: On July 23, 2009, the Group entered into a sale agreement to dispose of 19% of its ownership interest in each of Sonamet
Industrial, S.A (Sonamet) and Sonacergy  Servicos E Construcoes Petroliferas Lda (Zona Franca Da Madeira) (Sonacergy), in AFMED. Sonamet operates a fabrication yard for clients, including Acergy, operating in the
offshore oil and gas industry in Angola. Sonacergy provides overseas logistics services and support to Sonamet. The disposal of a 19% interest in each of Sonamet and Sonacergy will result in a reduction of the 55% ownership interest the Group held
in each at November 30, 2009, to 36%. The finalisation of this sale is conditional upon the completion of certain conditions precedent, which were outstanding at November 30, 2009. Completion of this sale is expected to occur in 2010.

At November 30, 2009, the carrying value of the net assets of Sonamet and Sonacergy was greater than the fair value less costs to sell, and
therefore an impairment charge of $4.8 million has been recognised in the income statement in net operating income.



| |  | Balikpapan: land, buildings and office equipment in AME. The assets are expected to be sold during the fiscal year 2010 as part of the decision to dispose of
some Indonesian assets involved with shallow water and diving activities.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Acergy Piper: equipment in NEC relating to, but not included in, the sale of Acergy Piper in January 2009. An impairment charge of $1 million has
been recognised in net income from discontinued operations.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Concrete products: sale of business assets in NAMEX. The assets are expected to be sold during fiscal year 2010 as part of the decision to dispose of activity
which is not part of Acergy core business.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

At November 30, 2009, the major classes of assets and liabilities comprising the 100%
interest of the operations classified as held for sale were as follows:



|                                                                     |  |       |  |      | 
|-------------------------------------------------------------------- |  | ----- |  | ---- | 
|As at November 30 (in $ millions)                                    |  | 2009  |  | 2008 | 
|Property, plant and equipment                                        |  | 91.7  |  | 75.5 | 
|Advances and receivables                                             |  | 1.1   |  |     | 
|Inventories                                                          |  | 14.0  |  |     | 
|Trade and other receivables                                          |  | 34.3  |  |     | 
|Other accrued income and prepaid expenses                            |  | 18.9  |  |     | 
|Cash and cash equivalents                                            |  | 103.6 |  |     | 
|Total assets classified as held for sale                             |  | 263.6 |  | 75.5 | 
|                                                                     |  |      
|Non-current portion of borrowings                                    |  | 12.1  |  |     | 
|Trade and other payables                                             |  | 80.3  |  |     | 
|Current portion of borrowings                                        |  | 6.3   |  |     | 
|Deferred revenue                                                     |  | 76.2  |  |     | 
|Total liabilities associated with assets classified as held for sale |  | 174.9 |  |     | 
|Net assets of disposal groups                                        |  | 88.7  |  | 75.5 | 

$15 million loan facility

On May 26, 2008 Sonamet, a 55% owned subsidiary entered into a $15.0 million loan
facility with BAI-Banco African de Investimentos S.A. for the construction of facilities at the companys Lobito yard. After an initial 18 months repayment grace period the loan is repayable in equal instalments over 66 months, with a final
maturity of May 26, 2015. The loan carries interest at six month LIBOR plus 2% per year, but subject to a minimum rate of 7% and a maximum rate of 8%. The facility is not guaranteed by Acergy S.A. or any of its other subsidiaries. As at
November 30, 2009 $8.9 million (2008: $6.1 million) was drawn on this facility and there are no covenants over this facility.

Other
facilities

A $9.5 million (2008: $9.5 million) unsecured loan provided by Sonangol to Sonamet bearing interest at a fixed rate of
2.75% per year and is repayable in annual instalments for a remaining period of one year as at November 30, 2009.

Other
guarantee arrangements

There is also an unsecured local line in Maderia for the sole use of Sonacergy. The line is with Banco Espirito
Santo S.A. for $8.5 million. The bonds under this facility were issued to guarantee the project performance of the subsidiary to third parties in the normal course of business. The amount issued under this facility as at November 30, 2009 was
$8.5 million (2008: $8.5 million).







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                            |  |            |  |                 |  |            |       |  |                 |   |  |     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------- |  | --------------- |  | ---------- | ----- |  | --------------- | - |  | ----
|The allocation of assets and liabilities held for sale by segment is as follows:                                                                                                                                                                                                                                                            |  |            |  |                 |  |            |       |  |                 |   |  | LOGO
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                           |  | 2009Assets |  | 2009Liabilities |  | 2008Assets |       |  | 2008Liabilities |   | 
|AFMED                                                                                                                                                                                                                                                                                                                                       |  | 261.4      |  | 174.9           |  |           |       |  |                |   | 
|AME                                                                                                                                                                                                                                                                                                                                         |  | 1.1        |  |                |  | 1.1        |       |  |                |   | 
|NEC                                                                                                                                                                                                                                                                                                                                         |  | 1.0        |  |                |  | 74.4       |       |  |                |   | 
|NAMEX                                                                                                                                                                                                                                                                                                                                       |  | 0.1        |  |                |  |           |       |  |                |   | 
|Total assets and liabilities held for sale                                                                                                                                                                                                                                                                                                  |  | 263.6      |  | 174.9           |  | 75.5       |       |  |                |   | 
|22. Other accrued income and prepaid
expenses                                                                                                                                                                                                                                                                                               |  |            |  |                 |  |            |       |  |                 |   | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                           |  |            |  |                 |  | 2009       |       |  | 2008            |   | 
|Construction contracts (see Note 23)                                                                                                                                                                                                                                                                                                        |  |            |  |                 |  | 144.4      |       |  | 156.6           |   | 
|Unbilled revenue                                                                                                                                                                                                                                                                                                                            |  |            |  |                 |  | 54.7       |       |  | 60.6            |   | 
|Prepaid expenses                                                                                                                                                                                                                                                                                                                            |  |            |  |                 |  | 13.7       |       |  | 16.3            |   | 
|Total                                                                                                                                                                                                                                                                                                                                       |  |            |  |                 |  | 212.8      |       |  | 233.5           |   | 
|Unbilled revenue relates to completed work which has not yet
been billed to customers.                                                                                                                                                                                                                                                      |  |           
|Prepaid expenses are incurred in the normal course of business
and represents expenditure which has been deferred and will be recognised within the next fiscal year.                                                                                                                                                                       |  |           
|23. Construction contracts                                                                                                                                                                                                                                                                                                                  |  |            |  |                 |  |            |       |  |                 |   | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                           |  |            |  |                 |  | 2009       |       |  | 2008            |   | 
|Contracts in progress at balance sheet date:                                                                                                                                                                                                                                                                                                |  |            |  |                 |  |            |       |  |                 |   | 
|Amounts due from contract clients included in other accrued income and prepaid expenses (see Note 22)                                                                                                                                                                                                                                       |  |            |  | 144.4           |  |            | 156.6 |  |                
|Deferred revenue recognised under construction contracts (see Note 41)                                                                                                                                                                                                                                                                      |  |            |  |                 |  | (241.2     | )     |  | (245.8          | ) | 
|Total                                                                                                                                                                                                                                                                                                                                       |  |            |  |                 |  | (96.8      | )     |  | (89.2           | ) | 
|                                                                                                                                                                                                                                                                                                                                            |  |            |  |                 |  |            |       |  |                 |   | 
|Contract costs incurred plus recognised net incomes less recognised losses to date                                                                                                                                                                                                                                                          |  |            |  |                 |  | 3,535.0    |       |  | 3,516.8         |   | 
|Less: progress billings                                                                                                                                                                                                                                                                                                                     |  |            |  |                 |  | (3,631.8   | )     |  | (3,606.0        | ) | 
|Total                                                                                                                                                                                                                                                                                                                                       |  |            |  |                 |  | (96.8      | )     |  | (89.2           | ) | 
|                                                                                                                                                                                                                                                                                                                                            |  |            |  |                 |  |            |       |  |                 |   | 
|As at November 30, 2009 retentions held by customers for contract work amounted to $13.0 million (2008: $54.2 million). Advances received from customers for contract work
amounted to $38.6 million (2008: $59.8 million) (refer to Note 41 Deferred revenue).                                                                           |  |           
|As at
November 30, 2009 a total of $7.9 million (2008: $22.6 million) was recorded for losses expected at completion.                                                                                                                                                                                                                       |  |           
|24. Restricted cash
balances                                                                                                                                                                                                                                                                                                                |  |            |  |                 |  |            |       |  |                 |   | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                           |  |            |  |                 |  | 2009       |       |  | 2008            |   | 
|Restricted cash balances                                                                                                                                                                                                                                                                                                                    |  |            |  |                 |  | 19.6       |       |  | 11.0            |   | 
|Restricted cash balances comprise funds held in a separate bank
account which will be used to settle accrued taxation liabilities, and deposits made by us as security for certain third-party obligations. Cash balances that are subject to restrictions that expire after more than one year are classified under
non-current assets.    |  |           
|25.
Cash and cash equivalents                                                                                                                                                                                                                                                                                                               |  |            |  |                 |  |            |       |  |                 |   | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                           |  |            |  |                 |  | 2009       |       |  | 2008            |   | 
|Cash at bank and in hand                                                                                                                                                                                                                                                                                                                    |  |            |  |                 |  | 907.6      |       |  | 573.0           |   | 
|Cash and cash equivalents comprise cash at banks, cash in hand
and short-term highly liquid deposits with an original maturity of three months or less and readily convertible to known amounts of cash. Additional information on credit risk management and interest rate risk management is included in Note 37
Financial instruments. |  |           





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128





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





|                                                                                   |  |                      |  |                    |  |                       |  |                      
|---------------------------------------------------------------------------------- |  | -------------------- |  | ------------------ |  | --------------------- |  | ---------------------
|26. Issued share capital                                                           |  |                      |  |                    |  |                       |  |                      
|Authorised shares                                                                  |  |                      |  |                    |  |                       |  |                      
|As at November 30                                                                  |  | 2009Number of shares |  | 2009in $ millions  |  | 2008Number of shares  |  | 2008in $millions     
|Authorised common shares, $2.00 par value                                          |  | 230,000,000          |  | 460.0              |  | 230,000,000           |  | 460.0                
|Issued shares                                                                      |  |                      |  |                    |  |                       |  |                      
|As at November 30                                                                  |  | 2009Number of shares |  | 2009 in $ millions |  | 2008Number of shares  |  | 2008 in $ millions   
|Fully paid and issued common shares                                                |  | 194,953,972          |  | 389.9              |  | 194,953,972           |  | 389.9                
|The issued common shares consist of:                                               |  |                      |  |                    |  |                       |  |                      
|Common shares excluding own shares (see below)                                     |  | 183,207,042          |  | 366.4              |  | 182,816,093           |  | 365.6                
|Own shares (see Note 27)                                                           |  | 11,746,930           |  | 23.5               |  | 12,137,879            |  | 24.3                 
|Total                                                                              |  | 194,953,972          |  | 389.9              |  | 194,953,972           |  | 389.9                
|The Company has one class of ordinary shares which carry no right
to fixed income.
|The common shares (excluding own shares) outstanding are as
follows:              
|As at November 30                                                                  |  |                      |  |                    |  | 2009 Number of shares |  | 2008 Number of shares
|Balance at December 1                                                              |  |                      |  |                    |  | 182,816,093           |  | 188,018,444          
|Own shares bought (see Note 27)                                                    |  |                      |  |                    |  |                      |  | (6,374,100)          
|Own shares reissued (see Note 27)                                                  |  |                      |  |                    |  | 390,949               |  | 1,171,749            
|Balance at November 30                                                             |  |                      |  |                    |  | 183,207,042           |  | 182,816,093          







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                 |      |                              |                    |   |                                |                       |   |                                                                   |                    |   |                                                                           |  |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------- | ---- | ---------------------------- | ------------------ | - | ------------------------------ | --------------------- | - | ----------------------------------------------------------------- | ------------------ | - | ------------------------------------------------------------------------- |  |  | 
|27. Own shares On September 11, 2006 the commencement of a share buyback programme was announced, which allowed for the purchase of up to a maximum of 10% of our issued share capital, pursuant to the standing authorisation
granted to the Board of Directors at the Annual General Meeting held on May 15, 2006, for a maximum aggregate consideration of $300 million. Any such repurchases of own shares were made through open market repurchases on the Oslo
Stock Exchange. The share buyback programme was completed during fiscal year 2008. A total of 15,387,525 shares for a total consideration of $301.6 million were repurchased.  Any shares which were repurchased were held as treasury shares to meet obligations arising under
the convertible notes or any employee share option schemes.  The following table
provides certain information with respect to our purchases of Acergys common stock for each month from January, 2007 to April, 2008, when the buyback programme was completed: |  |                                 | LOGO
|Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Total number of sharespurchased |      | Average price paid per share |                    |   | Average price paidper share(a) |                       |   | Total number ofshares purchased as partof publicly announced plan |                    |   | Approximate dollar valueof shares that may yet bepurchased under the plan |  | 
|October 1, 2006 through October 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 865,500                         |      | NOK 118.15                   |                    |   | $18.07                         |                       |   | 865,500                                                           |                    |   | $284,360,415                                                              |  | 
|November 1, 2006 through November 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 49,300                          |      | NOK 119.75                   |                    |   | $19.45                         |                       |   | 914,800                                                           |                    |   | $283,401,530                                                              |  | 
|December 1, 2006 through December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 178,800                         |      | NOK 116.37                   |                    |   | $18.65                         |                       |   | 1,093,600                                                         |                    |   | $280,066,910                                                              |  | 
|January 1, 2007 through January 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 3,756,100                       |      | NOK 112.37                   |                    |   | $17.83                         |                       |   | 4,849,700                                                         |                    |   | $213,157,980                                                              |  | 
|February 1, 2007 through February 28, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 710,325                         |      | NOK 114.88                   |                    |   | $18.70                         |                       |   | 5,560,025                                                         |                    |   | $199,878,376                                                              |  | 
|March 1, 2007 through March 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 3,453,400                       |      | NOK 114.26                   |                    |   | $18.75                         |                       |   | 9,013,425                                                         |                    |   | $135,136,732                                                              |  | 
|February 1, 2008 through February 29, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 336,550                         |      | NOK 112.34                   |                    |   | $21.66                         |                       |   | 8,256,375                                                         |                    |   | $127,846,536                                                              |  | 
|March 1, 2008 through March 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 5,060,950                       |      | NOK 109.87                   |                    |   | $21.72                         |                       |   | 13,317,325                                                        |                    |   | $17,930,304                                                               |  | 
|April 1, 2008 through April 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 976,600                         |      | NOK 114.23                   |                    |   | $22.25                         |                       |   | 14,293,925                                                        |                    |   |                                                                          |  | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 15,387,525                      |      |                              |                    |   |                                |                       |   |                                                                   |                    |   |                                                                           |  | 
|(a) Convenience translation using the NOK/US Dollar exchange
rate at the last day of the relevant month as published by Reuters.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                
|The summary of own shares reserve represents the
purchase of the Companys own common shares at the market price on the date of purchase and the movements are shown in the table below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                
|For the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 2009 Number of shares           |      |                              | 2009 in $ millions |   |                                | 2008 Number of shares |   |                                                                   | 2008 in $ millions |   |                                                                          
|Balance at December 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 12,137,879                      |      |                              | 229.4              |   |                                | 6,935,528             |   |                                                                   | 111.2              |   |                                                                          
|Number of shares acquired in the period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                |      |                              |                   |   |                                | 6,374,100             |   |                                                                   | 138.3              |   |                                                                          
|Number of shares reissued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | (390,949                        | )    |                              | (6.8               | ) |                                | (1,171,749            | ) |                                                                   | (20.1              | ) |                                                                          
|Balance at November 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 11,746,930                      |      |                              | 222.6              |   |                                | 12,137,879            |   |                                                                   | 229.4              |   |                                                                          
|Consisting of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                 |      |                              |                    |   |                                |                       |   |                                                                   |                    |   |                                                                          
|Common shares held as treasury shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 10,867,809                      |      |                              |                   |   |                                | 11,258,758            |   |                                                                   |                   |   |                                                                          
|Common shares held by an indirect wholly-owned subsidiary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 879,121                         |      |                              |                   |   |                                | 879,121               |   |                                                                   |                   |   |                                                                          
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 11,746,930                      |      |                              |                   |   |                                | 12,137,879            |   |                                                                   |                   |   |                                                                          
|As at November 30, 2009, Acergy owned 11,746,930 common
shares (as treasury shares), representing 6.03% of the total number of issued shares and included 879,121 of own common shares which were owned as treasury shares through Acergys indirect subsidiary Acergy Investing Limited.  Luxembourg law requires that 5% of our unconsolidated net income each year is allocated to a
legal reserve before declaration of dividends. This requirement continues until the reserve is 10% of our stated capital, as represented by common shares, after which no further allocations are required until further issuance of shares. The legal
reserve may also be satisfied by allocation of the required amount at the issuance of shares or by a transfer from paid-in surplus. The legal reserve is not distributable. The legal reserve for all outstanding common shares has been satisfied and
appropriate allocations are made to the legal reserve account at the time of each issuance of new shares.         |  |                                





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



28. Movements in reserves

|                                                                                          |  |                |   |  |                |  |                     |   |  |               |   |  |                                       |  
|----------------------------------------------------------------------------------------- |  | -------------- | - |  | -------------- |  | ------------------- | - |  | ------------- | - |  | ------------------------------------- | -
|For the fiscal year (in $ millions)                                                       |  | Paid insurplus |   |  | Equityreserves |  | Translationreserves |   |  | Otherreserves |   |  | Retainedearnings/(accumulateddeficit) |  
|December 1, 2006                                                                          |  | 480.0          |   |  | 110.7          |  |                    |   |  | (28.1         | ) |  | (137.1                                | )
|Share based compensation                                                                  |  | 7.3            |   |  |               |  |                    |   |  |              |   |  |                                      |  
|Exercise of share options                                                                 |  | 1.5            |   |  |               |  |                    |   |  |              |   |  |                                      |  
|Exchange differences on translation of foreign operations                                 |  |               |   |  |               |  | 21.4                |   |  |              |   |  |                                      |  
|Reclassification of foreign currency translation adjustments upon liquidation of entities |  |               |   |  |               |  | (1.4                | ) |  |              |   |  |                                      |  
|Share of derivative hedge losses from associates or joint ventures                        |  |               |   |  |               |  |                    |   |  | 0.2           |   |  |                                      |  
|Gains on derivative financial instruments (cash flow hedges)                              |  |               |   |  |               |  |                    |   |  | 0.4           |   |  |                                      |  
|Actuarial gains on defined benefit pension schemes                                        |  |               |   |  |               |  |                    |   |  | 7.3           |   |  |                                      |  
|Tax effects                                                                               |  | 4.1            |   |  |               |  | 9.1                 |   |  | (1.7          | ) |  |                                      |  
|Income attributable to equity holders                                                     |  |               |   |  |               |  |                    |   |  |              |   |  | 127.3                                 |  
|Dividends declared and paid                                                               |  |               |   |  |               |  |                    |   |  |              |   |  | (37.5                                 | )
|Loss on reissuance of own shares                                                          |  |               |   |  |               |  |                    |   |  |              |   |  | (41.3                                 | )
|November 30, 2007                                                                         |  | 492.9          |   |  | 110.7          |  | 29.1                |   |  | (21.9         | ) |  | (88.6                                 | )
|Share based compensation                                                                  |  | 7.5            |   |  |               |  |                    |   |  |              |   |  |                                      |  
|Exchange differences on translation of foreign operations                                 |  |               |   |  |               |  | (82.8               | ) |  |              |   |  |                                      |  
|Reclassification of foreign currency translation adjustments upon liquidation of entities |  |               |   |  |               |  | (0.3                | ) |  |              |   |  |                                      |  
|Share of derivative hedge losses from associates or joint ventures                        |  |               |   |  |               |  |                    |   |  | (23.7         | ) |  |                                      |  
|Losses on derivative financial instruments (cash flow hedges)                             |  |               |   |  |               |  |                    |   |  | (23.3         | ) |  |                                      |  
|Actuarial losses on defined benefit pension schemes                                       |  |               |   |  |               |  |                    |   |  | (11.1         | ) |  |                                      |  
|Tax effects                                                                               |  | (1.7           | ) |  |               |  | (16.4               | ) |  | 9.6           |   |  |                                      |  
|Income attributable to equity holders                                                     |  |               |   |  |               |  |                    |   |  |              |   |  | 301.4                                 |  
|Dividends declared and paid                                                               |  |               |   |  |               |  |                    |   |  |              |   |  | (38.3                                 | )
|Loss on reissuance of own shares                                                          |  |               |   |  |               |  |                    |   |  |              |   |  | (15.9                                 | )
|November 30, 2008                                                                         |  | 498.7          |   |  | 110.7          |  | (70.4               | ) |  | (70.4         | ) |  | 158.6                                 |  
|Share based compensation                                                                  |  | 3.9            |   |  |               |  |                    |   |  |              |   |  |                                      |  
|Exchange differences on translation of foreign operations                                 |  |               |   |  |               |  | 38.8                |   |  |              |   |  |                                      |  
|Share of derivative hedge losses from associates or joint ventures                        |  |               |   |  |               |  |                    |   |  | (1.7          | ) |  |                                      |  
|Gains on derivative financial instruments (cash flow hedges)                              |  |               |   |  |               |  |                    |   |  | 26.3          |   |  |                                      |  
|Actuarial losses on defined benefit pension schemes                                       |  |               |   |  |               |  |                    |   |  | (2.8          | ) |  |                                      |  
|Tax effects                                                                               |  | 1.3            |   |  |               |  | 19.6                |   |  | (11.5         | ) |  |                                      |  
|Income attributable to equity holders                                                     |  |               |   |  |               |  |                    |   |  |              |   |  | 245.0                                 |  
|Dividends declared and paid                                                               |  |               |   |  |               |  |                    |   |  |              |   |  | (40.2                                 | )
|Loss on reissuance of own shares                                                          |  |               |   |  |               |  |                    |   |  |              |   |  | (5.2                                  | )
|November 30, 2009                                                                         |  | 503.9          |   |  | 110.7          |  | (12.0               | ) |  | (60.1         | ) |  | 358.2                                 |  

Paid in surplus

This is inclusive of the Groups activities based on its share based payments arising from the share option plans
which are available to various staff members within the Group.

Equity reserves

This reserve represents the equity component of the convertible loan notes (refer to Note 31 Convertible loan notes).

Translation reserves

Exchange differences arise upon the translation of foreign entities functional
currency into the Groups reporting currency.







|       |  |                                            
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |       |      |  |       |   |  | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----- | ---- |  | ----- | - |  | 
|Other reserves Other reserves
relate to:   the net cumulative
gains or losses effect by the hedging activity entered into by the Group   actuarial gains or losses incurred on the Groups defined benefit pension schemes   the Groups share of other comprehensive losses from its associates and joint ventures.  Retained earnings/(accumulated deficit) The Directors propose that a dividend of $0.23 per share will be paid to shareholders in June 2010. This dividend is subject to approval by shareholders and has not
been included as a liability in these consolidated financial statements. The total estimated dividend to be paid is $42.1 million (refer to Note 43 Post balance sheet events).  During fiscal year 2009 390,949 own shares (2008: 1,171,749 own shares) purchased for $6.8
million (2008: $20.1 million) were reissued for a consideration of $1.6 million (2008: $4.2 million).  The consolidated retained earnings exclude undistributed earnings from joint ventures as at November 30, 2009 of $156.3 million (2008: $130.2 million).  29. Minority interest |  |       | LOGO
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 2009  |      |  | 2008  |   | 
|At December 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 13.7  |      |  | 18.1  |   | 
|Share of net income for the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 20.7  |      |  | 5.8   |   | 
|Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | (4.9  | )    |  | (8.7  | ) | 
|Foreign currency exchange rate changes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 1.7   |      |  | (1.5  | ) | 
|At November 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 31.2  |      |  | 13.7  |   | 
|Acergys respective interest in
subsidiaries which are not wholly owned is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |       |      |  |       |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 2009  |      |  | 2008  |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | %     |      |  | %     |   | 
|Sonamet  Industrial SA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 55.0  |      |  | 55.0  |   | 
|Sonacergy  Servicos E Construcoes Petroliferas Lda                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 55.0  |      |  | 55.0  |   | 
|Pelagic Nigeria Ltd                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 80.0  |      |  | 80.0  |   | 
|Offshore Installer Nigeria Limited                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 60.0  |      |  | 60.0  |   | 
|Acergy Havila Limited                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 50.0  |      |  | 50.0  |   | 
|Globestar Engineering Company (Nigeria) Ltd                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 96.2  |      |  | 96.2  |   | 
|30. Borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |       |      |  |       |   | 
|Borrowings consist of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |       |      |  |       |   | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 2009  |      |  | 2008  |   | 
|$500 million 2.25% convertible loan notes due 2013 (see Note 31)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 415.6 |      |  | 397.4 |   | 
|Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 0.2   |      |  | 21.9  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 415.8 |      |  | 419.3 |   | 
|Consisting of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |       |      |  |       |   | 
|Non-current portion of borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 415.8 |      |  | 409.2 |   | 
|Current portion of borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |      |  | 10.1  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 415.8 |      |  | 419.3 |   | 
|Commitment fees for any unused lines of credit expensed during
fiscal year 2009 were $0.7 million (2008: $0.5 million). The weighted average interest rate paid on the $400 million amended and restated revolving credit and guarantee facility was %nil (2008: %nil).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





30. Borrowings (continued)

Facilities

The following facilities were
available as at November 30, 2009:

The $400 million amended and restated revolving credit and guarantee facility

The $400 million credit and guarantee facility, dated August 10, 2006 comprises $300 million available for the issuance of guarantees (2008:
$300 million) and $75 million available for cash drawings, a reduction from fiscal year 2008 ($100 million) and will further reduce to $50 million until the final date of maturity of August 10, 2011. To the extent that no loans are drawn under
the amount available for cash, this part of the facility can be utilised for guarantee issuance. Additionally the maturity date of the guarantees must be prior to February 10, 2013. As at November 30, 2009 under the $400 million facility,
Acergy had fully utilised the $300 million available for guarantee issuance (2008: $207.3 million) and had used $68.9 million of the $75 million facility for guarantee issuance (2008: $nil). No drawdowns of cash under this facility were made in the
fiscal year 2009. This facility is guaranteed by an Acergy S.A. guarantee only.

The $400 million facility also contains events of default which include
payment defaults (subject to a three day grace period), breach of financial covenants, breach of other obligations, breach of representations and warranties, insolvency, illegality, unenforceability, conditions subsequent, curtailment of business,
claims against an obligors assets, appropriation of an obligors assets, final judgements, cross-defaults to other indebtedness in excess of $5.0 million, failure to maintain exchange listing, material adverse effect, auditors
qualification, repudiation and material litigation.

Interest on the $400 million facility is payable at LIBOR plus a margin which is linked to the
ratio of net debt to earnings before interest, taxes, depreciation and amortisation (EBITDA) and which may range from 0.8% to 1.9% per year. The margin is currently fixed at 0.8% for a period of three months from November 30, 2009. The fee
applicable for performance guarantees is linked to the same ratio of net debt to EBITDA and may range from 0.4% to 0.95% per year and is currently fixed at 0.4%. Both of these rates are subject to a quarterly review.

The $400 million facility shares certain terms and conditions with the $200 million facility, as described below.

The $200 million multi-currency revolving guarantee facility (the $200 million facility)

On February 26, 2008, the Group executed a $200 million multi-currency revolving guarantee facility with a number of banks from the existing consortium that
provided the $400 million facility. The $200 million facility is secured by a guarantee from Acergy S.A.

The $200 million facility is to be used for
the issuance of performance guarantees in the ordinary course of the Groups business. The facility has a maturity date of February 26, 2013, however, performance guarantees can be issued with a maturity no later than August 26, 2014.

The fee applicable for performance guarantees is linked to the ratio of net debt to EBITDA and may range from 0.45% to 1.00% per year and is
currently fixed at 0.45%. This is subject to a quarterly review.

Both the $400 million and $200 million facilities contain financial covenants in
respect of a minimum level of tangible net worth, a maximum level of net debt to EBITDA, a maximum level of total financial debt to tangible net worth, a minimum level of cash and an interest cover covenant. The requirements of the financial
covenants must be met on a consolidated basis at quarterly intervals ending February 28, May 31, August 31 and November 30 of each year. In addition to the financial covenants listed above, both facilities contain
negative pledges with respect to accounts receivable and cash and include representations, affirmative covenants and negative covenants and events of defaults which are customary for facilities of this nature and consistent with past practice. Such
covenants specifically limit mergers or transfers, incurrence of other indebtedness, investments and loans and distributions to shareholders.

The NOK 977.5 million Loan and Guarantee Facility (the NOK 977.5 million facility)

Acergy
Havila Limited is a 50/50 joint venture between Acergy Bermuda Ltd. (wholly owned by Acergy S.A.) and Havila Shipping Pte Ltd. (wholly owned by Havila Shipping ASA). On October 14, 2008 the company completed a loan facility for post-delivery
financing of up to Norwegian Krone 977.5 million ($173.5 million) for the purchase of a dive support vessel to be owned by the joint venture, when it is delivered in 2010. The final termination date of the facility is no later than
April 30, 2020.

The NOK 977.5 million facility contains the financial covenant that current assets exceeds current liabilities. This
requirement must be met at quarterly intervals ending February 28, May 31, August 31 and November 30 of each year. The facility also contains vessel covenants customary to a facility of this nature.

In addition to the above covenants, the facility also contains events of default which include payment defaults (subject to a three day grace period), breach of the
financial covenant, breach of other obligations, breach of representations, insolvency, illegality, repudiation, material adverse effect, cross-defaults to other indebtedness in excess of $2.5 million for Acergy Havila Limited and in excess of $5.0
million for Acergy and failure by Acergy to maintain exchange listing. The facility also contains negative pledges with respect to accounts receivable and cash.

Security on the facility is provided by a first priority mortgage on the vessel. A charter guarantee has been provided by Acergy S.A. In the event of an event of default occurring this turns into a several guarantee to be shared 50/50 by
Acergy S.A. and Havila Shipping ASA.







|       |  |                                            
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |          |  |            |  |       |  |          |  |            |  |       |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------- |  | ---------- |  | ----- |  | -------- |  | ---------- |  | ----- |  | 
|The facilitys commitment fee is set at a rate of 0.40%. Upon delivery of the vessel loan interest will be payable at NIBOR plus
a margin of 1.00% per year for the first five years and 1.10% for the subsequent five years.  The following table summarises the utilisation of the $400 million facility, the $200 million facility and the NOK 977.5 million facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | LOGO    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 2009     |  | 2009       |  | 2009  |  | 2008     |  | 2008       |  | 2008  | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Utilised |  | Unutilised |  | Total |  | Utilised |  | Unutilised |  | Total | 
|Cash loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |         |  | 179.6      |  | 179.6 |  |         |  | 100.0      |  | 100.0 | 
|Guarantee facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 505.6    |  | 63.3       |  | 568.9 |  | 304.1    |  | 195.9      |  | 500.0 | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 505.6    |  | 242.9      |  | 748.5 |  | 304.1    |  | 295.9      |  | 600.0 | 
|Other facilities During fiscal year 2009, a facility of $0.2 million (2008: $0.2 million) was provided to Pelagic Nigeria Limited by Pegasus International Services Inc., the minority
interest holder of Pelagic Nigeria Limited, an entity in which Acergy holds a majority interest.  Bank overdraft and short-term lines of credit The overdraft facilities consist of $36.1
million (2008: $24.7 million) of which $nil (2008: $6.1 million) were drawn as at November 30, 2009.  Guarantee arrangements with joint ventures SapuraAcergy Assets Pte Ltd (SAPL),
previously known as Nautical Vessels Pte Ltd., is a 50/50-owned joint venture between Nautical Essence Sdn. Bhd. (wholly owned by SapuraCrest Petroleum Berhad) and Acergy Bermuda Ltd. (wholly owned by Acergy S.A.). In 2007 the respective parent
companies of the joint venture partners issued a Charter Guarantee guaranteeing the charter payments from the charterer of the Sapura 3000 vessel to the ship owner, SAPL. The limit of the guarantee is, at any time the sum of the outstanding
amounts under the $240 million Facility Agreement of SAPL less $100 million. Any call under the guarantee will not result in a lump sum payment being made, but the guarantors, severally, will have to service the debt by way of charter payments due
from the charterer to the ship owner until the termination date of the loan, which is February 2, 2015.  SapuraAcergy Sdn. Bhd. (SASB) is a 50/50-owned joint venture between Nautical Essence Sdn. Bhd. (wholly owned by SapuraCrest Petroleum Berhad) and Acergy Bermuda Ltd. (wholly owned by Acergy S.A.). SASB
has entered into a $181.3 million multi-currency facility for the financing of the Shell Gumusut-Kakap Project. Both Acergy S.A. and SapuraCrest Petroleum Berhad have issued several guarantees, for 50% of the financing respectively. The facility
consists of $41.3 million available for the issuance of bank guarantees, $60.0 million available for letters of credit, and two revolving credit facilities for $60.0 million and $20.0 million respectively. At November 30, 2009 the amount
available for bank guarantees was fully utilised.  Other guarantee
arrangements In addition to the amounts available under the $400 million facility and the $200 million facility, the Group has a $30.0
million (2008: $30.0 million) bank guarantee facility with Credit Industriel et Commercial Bank of which $8.0 million (2008: $nil) was utilised as at November 30, 2009.  There is an unsecured local line in Nigeria for the sole use of Globestar Engineering Company
(Nigeria) Limited. The line is with First Bank of Nigeria plc for $10.0 million. The bonds under this facility were issued to guarantee the project performance of the subsidiary to third parties in the normal course of business. The amount issued
under this facility as at November 30, 2009 was $0.7 million (2008: $0.6 million).  The Group had past arrangements with a number of financial institutions to issue bank guarantees on its behalf. As at November 30, 2009, the aggregate amount of guarantees issued under these old facilities was $14.5 million (2008:
$13.2 million). There was no availability for further issuances under these facilities.  31. Convertible loan notes On October 11, 2006 Acergy S.A. issued a $500.0 million in aggregate principal
amount of 2.25% convertible loan notes due 2013. The issuance was completed on October 11, 2006 with the receipt of net proceeds after deduction of issuance related costs of $490.8 million. The issuance costs of $9.2 million have been split
between the liability and equity components.  The convertible loan notes have an
annual interest rate of 2.25% payable semi-annually in arrears on April 11 and October 11 of each year up to and including fiscal year 2013. They were issued at 100% of their principal amount and unless previously redeemed, converted or
cancelled will mature on October 11, 2013. The convertible loan notes are listed on the Euro MTF Market of the Luxembourg Stock Exchange.  The noteholders were granted an option which allows them to convert the convertible loan notes into common shares with an initial conversion price of $24.05 per share
equivalent to 20,790,021 common shares, or approximately 10.7% of our issued share capital at the date of issue. The conversion price was revised to $22.71 in 2009 (2008: $23.52) per share following the payment of the dividends since issuance,
equivalent to 22,016,733 (2008: 21,258,503) common shares, or approximately 11.3% (2008:10.9%) of our issued share capital as of November 30, 2009. The conversion price will continue to be adjusted in line with market practices for this
type of instrument to provide anti-dilutive adjustments for items such as payment of dividends and events such as a change of control which can affect materially the marketability, liquidity or volatility of common
shares. | 





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134





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





31. Convertible loan notes (continued)

There is also an option for Acergy to call the convertible loan notes after October 25, 2010, if the price of the common shares exceeds 130% of
the then prevailing conversion price over the above specified period.

The following is a summary of certain other terms and conditions that apply to
our convertible loan notes:



| |  | the convertible loan notes are unsecured but contain a negative pledge provision which restricts encumbrances or security interests on current and future
property or assets to ensure that the convertible loan notes will rank equally with other debt issuance;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a cross default provision subject to a minimum threshold of $10.0 million and other events of default in connection with non-payment of the convertible loan
notes;
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | various undertakings in connection with the term of any further issuance of common shares, continuance of the listing of the shares and the convertible loan
notes on recognised stock exchanges; and
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | provisions for the adjustment of the conversion price in certain circumstances. There were no conversions of these convertible loan notes as of November 30,
2009.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

The net proceeds received from the issue of the convertible loan notes have been split between the liability element and an
equity component, representing the fair value of the embedded option to convert the liability into equity of the Group, as follows:



|                                                         |  |        |  
|-------------------------------------------------------- |  | ------ | -
|(in $ millions)                                          |  |        |  
|Principal value of convertible loan notes issued         |  | 500.0  |  
|Proceeds of issue (net of apportioned transaction costs) |  | 490.8  |  
|Liability component at date of issue                     |  | (362.4 | )
|Equity component                                         |  | 128.4  |  
|Deferred tax                                             |  | (17.7  | )
|Transfer to equity reserve (see Note 28)                 |  | 110.7  |  

The liability component is as follows:



|                                    |  |       |   |  |       |  
|----------------------------------- |  | ----- | - |  | ----- | -
|For the fiscal year (in $ millions) |  | 2009  |   |  | 2008  |  
|Liability component at December 1   |  | 397.4 |   |  | 380.3 |  
|Interest charged                    |  | 29.5  |   |  | 28.4  |  
|Interest paid                       |  | (11.3 | ) |  | (11.3 | )
|Liability component at November 30  |  | 415.6 |   |  | 397.4 |  

The
interest charged in the year is calculated by applying an effective rate of 7.35%. The liability component is measured at amortised cost.

The difference
between the carrying amount of the liability component at the date of issue and the amount reported in the balance sheet at

November 30, 2009
represents the effective interest rate less interest paid to that date.

The Directors estimate the fair value of the liability component of the
convertible loan notes at November 30, 2009 to be approximately $438.7 million (2008: $397.4 million). These have been recognised as borrowings within the Group (refer to Note 30 Borrowings).

32. Other non-current liabilities

|                                                                    |  |      |  |     
|------------------------------------------------------------------- |  | ---- |  | ----
|As at November 30 (in $ millions)                                   |  | 2009 |  | 2008
|Non-current amounts due to joint venture partners                   |  | 1.4  |  |    
|Accrued bonus                                                       |  | 3.4  |  | 3.9 
|Net liabilities of joint ventures reclassified as other liabilities |  | 0.9  |  |    
|Other                                                               |  | 1.3  |  |    
|Total                                                               |  | 7.0  |  | 3.9 

The accrued bonus is
in relation to long-term incentive plans.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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135











33. Trade and other liabilities

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |       |   |  |                 |   |  |       |   |  |       |   |  |     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----- | - |  | --------------- | - |  | ----- | - |  | ----- | - |  | ----
|As at November 30 (in $ million)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |       |   |  |                 |   |  | 2009  |   |  | 2008  |   |  | LOGO
|Invoice accruals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |       |   |  |                 |   |  | 244.6 |   |  | 279.8 |   | 
|Trade payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |       |   |  |                 |   |  | 169.7 |   |  | 183.1 |   | 
|Accrued salaries and benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |       |   |  |                 |   |  | 143.0 |   |  | 116.3 |   | 
|Withholding taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |       |   |  |                 |   |  | 22.3  |   |  | 28.5  |   | 
|Interest on taxes owed                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |       |   |  |                 |   |  | 9.1   |   |  | 9.1   |   | 
|Interest and dividends payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |       |   |  |                 |   |  | 1.7   |   |  | 13.9  |   | 
|Other taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |       |   |  |                 |   |  | 2.7   |   |  | 2.2   |   | 
|Other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |       |   |  |                 |   |  | 31.0  |   |  | 18.7  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |       |   |  |                 |   |  | 624.1 |   |  | 651.6 |   | 
|The average credit
period taken for trade purchases is 93 days (2008: 78 days).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |      
|Accrued salaries and
benefits represents employee benefits which are still due to be paid.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      
|34. Provisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |       |   |  |                 |   |  |       |   |  |       |   | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | Legal |   |  | Decommissioning |   |  | Other |   |  | Total |   | 
|At December 1, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 9.3   |   |  |                |   |  | 1.5   |   |  | 10.8  |   | 
|Additional provision in the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 1.6   |   |  | 5.2             |   |  | 7.7   |   |  | 14.5  |   | 
|Utilisation of provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | (1.5  | ) |  |                |   |  | (0.7  | ) |  | (2.2  | ) | 
|Unwinding of discount rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      |   |  | 0.2             |   |  |      |   |  | 0.2   |   | 
|Exchange differences                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | (0.1  | ) |  |                |   |  |      |   |  | (0.1  | ) | 
|At November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 9.3   |   |  | 5.4             |   |  | 8.5   |   |  | 23.2  |   | 
|Additional provision in the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 1.4   |   |  | 8.4             |   |  | 7.2   |   |  | 17.0  |   | 
|Utilisation of provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | (0.5  | ) |  | (1.0            | ) |  | (3.4  | ) |  | (4.9  | ) | 
|Unused amounts reversed during the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | (1.8  | ) |  |                |   |  | (1.5  | ) |  | (3.4  | ) | 
|Unwinding of discount rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      |   |  | 0.3             |   |  |      |   |  | 0.3   |   | 
|Exchange differences                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 0.5   |   |  |                |   |  | 0.5   |   |  | 1.0   |   | 
|At November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 8.9   |   |  | 13.1            |   |  | 11.3  |   |  | 33.2  |   | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |       |   |  |                 |   |  | 2009  |   |  | 2008  |   | 
|Consists of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |       |   |  |                 |   |  |       |   |  |       |   | 
|Non-current provisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |       |   |  |                 |   |  | 10.6  |   |  | 8.0   |   | 
|Current provisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |       |   |  |                 |   |  | 22.6  |   |  | 15.2  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |       |   |  |                 |   |  | 33.2  |   |  | 23.2  |   | 
|The legal provision comprises a number of claims made against
the Group, these include employee disputes, personal injury cases and lease disputes, where the timing of resolution is uncertain or the liability has been estimated by the Groups legal advisors.  The decommissioning provision is in relation to the obligation to remove items of property, plant
and equipment from leased vessels at the end of their lease. For the equipment on Toisa Proteus the Group expects to incur the costs within the next twelve months. The remaining provisions to be incurred post fiscal year 2010 are dependent on
renewal options being exercised.  Other provisions include certain warranties given
on the sale of the subsidiary SCS Nigeria, payroll claims, damages claim, redundancy costs and the liquidation of a subsidiary. |  |      





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136





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





35.
Commitments and contingent liabilities

Commitments

These consist of:



| |  | purchase of property, plant and equipment from external suppliers as at November 30, 2009 for $181.6 million (2008: $130.0 million).
|- |  | ------------------------------------------------------------------------------------------------------------------------------------



| |  | purchase of intangible software from external suppliers as at November 30, 2009 for $12.6 million (2008: nil).
|- |  | --------------------------------------------------------------------------------------------------------------



| |  | operating lease commitments as indicated in Note 36 Operating lease arrangements.
|- |  | -----------------------------------------------------------------------------------



| |  | a loan facility to the joint venture Seaway Heavy Lifting (SHL) of an amount up to $10 million.
|- |  | -----------------------------------------------------------------------------------------------

Contingent liabilities

During fiscal year 2009 the
Groups Brazilian business was audited and formally assessed for ICMS tax (import duty) by the Brazilian tax authorities (Secretaria Fazenda Estado Rio de Janeiro). The amount assessed including penalties and interest amounted to BRL
107.6 million ($61.7 million). The Group intends to challenge this assessment and will revert to the courts if necessary. No provision has been made for any payment as the Group does not believe that this liability is probable.

In the course of business, the Group becomes involved in contract disputes from time-to-time due to the nature of our activities as a contracting business involved in
several long-term projects at any given time. The Group takes provisions to cover the expected risk of loss to the extent that negative outcomes are likely and reliable estimates can be made. However, the final outcomes of these contract disputes
are subject to uncertainties as to whether or not they develop into a formal legal action and therefore the resulting liabilities may exceed the liability it anticipates.

Furthermore, the Group is involved in legal proceedings from time to time incidental to the ordinary conduct of our business. Litigation is subject to many uncertainties, and the outcome of individual matters is
not predictable with assurance. It is reasonably possible that the final resolution of any litigation could require the Group to make additional expenditures in excess of reserves that the Group may establish. In the ordinary course of business,
various claims, suits and complaints have been filed against the Group in addition to the ones specifically referred to above. Although the final resolution of any such other matters could have a material effect on operating results for a particular
reporting period, the Group believes that they should not materially affect its consolidated financial position.

36.
Operating lease arrangements

The Group as Lessee

|                                                                                            |  |       |  |       |  |     
|------------------------------------------------------------------------------------------- |  | ----- |  | ----- |  | ----
|For the fiscal year (in $ millions)                                                         |  | 2009  |  | 2008  |  | 2007
|Minimum lease payments under operating leases recognised in operating expenses for the
year |  | 129.4 |  | 130.9 |  | 95.9

The total
operating lease commitments as at November 30, 2009 were $530.0 million (2008: $526.5 million). These consisted of charter hire obligations towards certain construction support, diving support, survey and inspection ships of $304.9 million
(2008: $342.0 million). The remaining obligations related to office facilities and equipment as at November 30, 2009 of $225.1 million (2008: $184.5 million).

The Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:



|                                    |  |       |  |      
|----------------------------------- |  | ----- |  | -----
|For the fiscal year (in $ millions) |  | 2009  |  | 2008 
|Within one year                     |  | 109.9 |  | 125.3
|Years two to five inclusive         |  | 309.9 |  | 285.7
|After five years                    |  | 110.2 |  | 115.5
|Total                               |  | 530.0 |  | 526.5

The following have been
excluded from the outstanding commitments:



| |  | Main renewal options: Polar Queen  two renewal options consisting of one option for three years at the end of 2012 followed by a possible further
option for one year; Far Saga  one renewal option for two years mid 2010; Acergy Viking  ten renewal options consisting of two for two years and eight options for one year; purchase options after eight, eleven, fourteen and
seventeen years; Skandi Acergy  four renewal options consisting of two options for two years each and two options for one year each.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |       |  |       |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----- |  | ----- |  | 
|The Group as Sub-Lessor Income
from sub-leases earned during the year was $47.2 million (2008: $46.1 million, 2007: $33.5 million) and relate to shipping charters and property.  At the balance sheet date, the Group had contracted for the following future minimum lease payments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | LOGO 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 2009  |  | 2008  | 
|Within one year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 107.5 |  | 39.0  | 
|Years two to five inclusive                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 319.1 |  | 136.9 | 
|After five years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |      |  |      | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 426.6 |  | 175.9 | 
|The Group as Lessor For contracts that meet the definition of leases, the rental income earned during the fiscal year 2009 was $79.7 million (2008: $75.3 million, 2007: $56.6 million) and
relate to shipping charters.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|The Group had contracted with its Lessees for the following
future minimum lease receipts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 2009  |  | 2008  | 
|Within one year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 59.5  |  | 71.8  | 
|Years two to five inclusive                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |      |  | 60.3  | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 59.5  |  | 132.1 | 
|37. Financial instruments Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in Note 3 Significant accounting policies.  Financial risk management objectives The Groups Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the
operations of the Group through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (consisting of currency risk and fair value interest rate risk), credit risk and liquidity
risk.  The Group seeks to minimise the effects of these risks by using financial
instruments to hedge these risk exposures. The use of financial instruments is governed by the Groups policies approved by the Board of Directors, which provide written policies on foreign exchange risk, interest rate risk, credit risk, the
use of non-derivative financial instruments, and the investment of excess liquidity.  Compliance with policies and exposure limits is reviewed on a continuous basis and the Corporate Treasury function reports monthly to senior management. The Group does not enter into or trade financial instruments for speculative purposes.  Market risk The Groups activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see below) and interest rates (see below). The Group enters into a variety of derivative
financial instruments to manage its exposure to interest rate and foreign currency risks, including:   forward foreign exchange contracts to hedge the exchange rate risk arising on future revenues, operating costs and
capital expenditure;   interest
rate risk due to interest rate fluctuations from floating rate credit facilities and variable interest rate returns on deposits.  There has been no change to the Groups exposure to market risks or the manner in which it manages and measures the risk. | 





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138





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





37. Financial instruments (continued)

Foreign currency risk management

The Group
undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

The Groups reporting currency is the US dollar. The majority of net operating expenses and income are denominated in the functional currency of the
individual subsidiaries operating in different regions, namely:



| |  | Acergy AFMED  US Dollar, Euro and Nigerian Naira;
|- |  | --------------------------------------------------



| |  | Acergy NEC  US Dollar, British Pound Sterling, Norwegian Krone and Canadian Dollar;
|- |  | ------------------------------------------------------------------------------------



| |  | Acergy NAMEX  US Dollar;
|- |  | -------------------------



| |  | Acergy SAM  Brazilian Real and US Dollar
|- |  | -----------------------------------------



| |  | Acergy AME  US Dollar and Australian Dollar.
|- |  | ---------------------------------------------

The Groups exposure to exchange rate fluctuations results from our net investments in foreign subsidiaries, primarily in the United Kingdom, Norway, France and Brazil, and from the Groups share of the local currency earnings in
operations in Acergy AFMED; Acergy NEC and Acergy SAM. However, the Group does not use derivative instruments to hedge the value of investments in foreign subsidiaries.

Furthermore, the Group conducts operations in many countries and, as a result, is exposed to currency fluctuations through generation of revenue and expenditure in the normal course of business. Hence, exposures to
exchange rate fluctuations arise. The Groups currency rate exposure policy prescribes the range of allowable hedging activity. The Group primarily uses forward foreign exchange contracts to hedge capital expenditures and operational
non-functional currency exposures on a continuing basis for periods consistent with our committed exposures.

The carrying amounts of the Groups
primary foreign currency denominated monetary assets and monetary liabilities, including foreign exchange derivatives, receivables and borrowings issued in a currency different from the functional currency of the issuer, and inter-company foreign
currency denominated receivables, payables, and loans at the balance sheet date are as follows:



|                                  |  |        |  |             |  |       |  |      
|--------------------------------- |  | ------ |  | ----------- |  | ----- |  | -----
|                                  |  | Assets |  | Liabilities
|As at November 30 (in $ millions) |  | 2009   |  | 2008        |  | 2009  |  | 2008 
|British Pound Sterling            |  | 255.9  |  | 259.1       |  | 316.8 |  | 392.2
|Euro                              |  | 866.9  |  | 369.5       |  | 829.2 |  | 755.8
|Norwegian Krone                   |  | 143.9  |  | 176.4       |  | 39.7  |  | 143.9
|US Dollar                         |  | 748.4  |  | 627.9       |  | 650.8 |  | 809.6

Foreign currency sensitivity analysis

The Group operates in various geographical locations and is exposed to a number of
currencies dependent upon the functional currency of individual subsidiaries as indicated in the foreign currency risk management section above.

The
Group considers that the principal currency exposure is to movements in the US Dollar against other currencies on the basis that the US Dollar is the Groups reporting currency, the functional currency of many of its subsidiaries and the
transaction currency of a significant volume of the Groups cash flows. The Group has performed sensitivity analyses to indicate how profit or loss and equity would have been affected by changes in the exchange rate between the US Dollar and
other currencies in which the Group transacts. The analysis is based on a strengthening of the US Dollar by 10% against each of the other currencies in which the Group has significant assets and liabilities at the end of each respective period. A
movement of 10% reflects a reasonably possible sensitivity when compared to historical movements over a three to five year timeframe.

The Group
analysis of the impact on profit and loss in each year is based on monetary assets and liabilities in the balance sheet at the end of each respective year.

The Group analysis of the impact on equity includes the profit and loss movements from above in addition to the impacts on the translation reserve in respect of inter-company balances that form part of the net investment in a foreign
operation and the hedging reserve in respect of designated hedges.

The sensitivity analyses includes the impact of exchange rate movements on foreign
currency derivatives. The amounts disclosed have not been adjusted for the impact of taxation.

Based on the above, a 10% increase in the US Dollar
exchange rate against other currencies in which the Group transacts would increase net foreign currency exchange losses reported in other gains and losses by $12.3 million (2008: loss $22.8 million). The impact on equity would be a reduction in
reported net assets of $8.6 million (2008: $20.9 million).







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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139









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                             |      |           |  |                                           |  |           |  |  |  |          |   |  |           |   |  | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------- | ---- | --------- |  | ----------------------------------------- |  | --------- |  |  |  | -------- | - |  | --------- | - |  | 
|Forward foreign exchange contracts The Group enters into primarily standard forward foreign exchange contracts with maturities of up to five years, to manage the risk associated with transactions when there is a minimum level of exposure risk. These
transactions consist of highly probable cash flow exposure relating to operating income and expenditure and capital expenditure.  The following table details the forward foreign currency contracts outstanding as at the balance sheet date: |  |                                             | LOGO
|As at November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                             |      |           |  |                                           |  |           |  |  |  |          |   |  |           |   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Foreign Currency Value By Contract Maturity |      |           |  | US Dollar Fair ValueBy Contract Maturity  |  |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Buy                                         |      | Sell      |  |                                           |  | Maturity  |  | 
|(in millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | < 1 Year                                    |      | 1-5 Years |  | < 1 Year                                  |  | 1-5 Years |  |  |  | < 1 Year |   |  | 1-5 Years |   | 
|Brazilian Real                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 11.1                                        |      |          |  |                                          |  |          |  |  |  | 1.8      |   |  |          |   | 
|British Pound Sterling                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 37.8                                        |      | 6.8       |  | 91.8                                      |  |          |  |  |  | (3.6     | ) |  | (1.3      | ) | 
|Danish Krone                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 31.5                                        |      |          |  | 47.2                                      |  |          |  |  |  | (0.3     | ) |  |          |   | 
|Euro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 254.4                                       |      | 19.6      |  | 12.7                                      |  |          |  |  |  | 4.2      |   |  | 0.3       |   | 
|Japanese Yen                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                            |      |          |  |                                          |  |          |  |  |  |         |   |  |          |   | 
|New Zealand Dollar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                                            |      |          |  | 4.7                                       |  |          |  |  |  |         |   |  |          |   | 
|Norwegian Krone                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 138.2                                       |      | 403.5     |  |                                          |  |          |  |  |  | 1.2      |   |  | 2.6       |   | 
|Singapore Dollar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 13.3                                        |      |          |  |                                          |  |          |  |  |  |         |   |  |          |   | 
|US Dollar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 177.0                                       |      | 32.2      |  | 211.2                                     |  | 98.1      |  |  |  | (5.5     | ) |  | 1.6       |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                             |      |           |  |                                           |  |           |  |  |  | (2.2     | ) |  | 3.2       |   | 
|As at November 30,
2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Foreign Currency Value By Contract Maturity |      |           |  | US
Dollar Fair Value By Contract Maturity |  |          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Buy                                         |      | Sell      |  |                                           |  | Maturity  |  | 
|(in millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | < 1 Year                                    |      | 1-5 Years |  | < 1 Year                                  |  | 1-5 Years |  |  |  | < 1 Year |   |  | 1-5 Years |   | 
|British Pound Sterling                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 66.4                                        |      | 13.6      |  | 19.5                                      |  | 1.7       |  |  |  | (11.3    | ) |  | (3.1      | ) | 
|Danish Krone                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 22.7                                        |      |          |  |                                          |  |          |  |  |  | 0.1      |   |  |          |   | 
|Euro                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 121.3                                       |      | 50.5      |  | 54.5                                      |  |          |  |  |  | (11.5    | ) |  | (5.8      | ) | 
|Japanese Yen                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 3,350.8                                     |      |          |  |                                          |  |          |  |  |  | 6.9      |   |  |          |   | 
|Norwegian Krone                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 214.7                                       |      | 747.7     |  | 321.7                                     |  |          |  |  |  | (5.3     | ) |  | (22.5     | ) | 
|Singapore Dollar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 17.3                                        |      |          |  |                                          |  |          |  |  |  | (0.1     | ) |  |          |   | 
|US Dollar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 174.3                                       |      | 47.4      |  | 148.0                                     |  | 126.5     |  |  |  | 4.4      |   |  | (7.3      | ) | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                             |      |           |  |                                           |  |           |  |  |  | (16.8    | ) |  | (38.7     | ) | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                             |      |           |  |                                           |  |           |  |  |  |          |   |  |           |   | 
|Hedge accounting The
following table details the outstanding forward foreign exchange currency contracts which are designated as hedging instruments as at reporting date:                                                                                                                                                                                                                                                                                                                               |  |                                            





LOGO



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140





Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





37. Financial instruments (continued)

As at November 30, 2009



|                        |  |                                             |  |           |  |                                          |  |           |  |  |  |          |   |  |           |  
|----------------------- |  | ------------------------------------------- |  | --------- |  | ---------------------------------------- |  | --------- |  |  |  | -------- | - |  | --------- | -
|                        |  | Foreign Currency Value By Contract Maturity |  |           |  | US Dollar Fair ValueBy Contract Maturity | 
|                        |  | Buy                                         |  | Sell      |  |                                          |  | Maturity  | 
|(in millions)           |  | < 1 Year                                    |  | 1-5 Years |  | < 1 Year                                 |  | 1-5 Years |  |  |  | < 1 Year |   |  | 1-5 Years |  
|Cash flow hedges:       |  |                                             |  |           |  |                                          |  |           |  |  |  |          |   |  |           |  
|British Pound Sterling  |  | 3.7                                         |  |          |  |                                         |  |          |  |  |  | (0.2     | ) |  |          |  
|Danish Krone            |  | 31.5                                        |  |          |  | 42.7                                     |  |          |  |  |  | (0.3     | ) |  |          |  
|Euro                    |  | 11.6                                        |  |          |  |                                         |  |          |  |  |  | 0.5      |   |  |          |  
|Japanese Yen            |  |                                            |  |          |  |                                         |  |          |  |  |  |         |   |  |          |  
|Norwegian Krone         |  | 138.2                                       |  | 403.5     |  |                                         |  |          |  |  |  | 1.2      |   |  | 2.6       |  
|US Dollar               |  | 110.6                                       |  | 19.2      |  | 178.5                                    |  | 94.4      |  |  |  | (2.7     | ) |  | 2.2       |  
|Total                   |  |                                             |  |           |  |                                          |  |           |  |  |  | (1.5     | ) |  | 4.8       |  
|As at November 30, 2008 | 
|                        |  | Foreign Currency Value By Contract Maturity |  |           |  | US Dollar Fair ValueBy Contract Maturity | 
|                        |  | Buy                                         |  | Sell      |  |                                          |  | Maturity  | 
|(in millions)           |  | < 1 Year                                    |  | 1-5 Years |  | < 1 Year                                 |  | 1-5 Years |  |  |  | < 1 Year |   |  | 1-5 Years |  
|Cash flow hedges:       |  |                                             |  |           |  |                                          |  |           |  |  |  |          |   |  |           |  
|British Pound Sterling  |  | 11.6                                        |  |          |  |                                         |  |          |  |  |  | (3.6     | ) |  |          |  
|Euro                    |  | 5.8                                         |  |          |  |                                         |  |          |  |  |  | (1.5     | ) |  |          |  
|Japanese Yen            |  | 3,350.8                                     |  |          |  |                                         |  |          |  |  |  | 6.9      |   |  |          |  
|Norwegian Krone         |  | 117.1                                       |  | 541.7     |  |                                         |  |          |  |  |  | (3.4     | ) |  | (13.3     | )
|US Dollar               |  | 112.0                                       |  | 47.4      |  | 148.0                                    |  | 126.5     |  |  |  | (4.2     | ) |  | (7.3      | )
|Total                   |  |                                             |  |           |  |                                          |  |           |  |  |  | (5.8     | ) |  | (20.6     | )

The
Group earns revenue in currencies other than the functional currency of the contracting entity; at the reporting date the main such transactions are US Dollar revenues for customer contracts in the Acergy AFMED region. The consolidated income
statement is impacted when the services are performed by the Group and the related receivable is consequently recognised. The hedging reserve balance at November 30, 2009 is a loss of $3.6 million (2008: loss of $32.2 million) arising on hedges
maturing on or before March 20, 2013. There is no material difference between the period of cash flow and that of consolidated income statement impact.

The Group incurs operating expenses in currencies other than the functional currency of the operating entity; at the reporting date the main such transactions are a Norwegian Krone vessel charter and one-off project expenses in
US Dollars (primarily for projects in Acergy AFMED). The consolidated income statement is impacted when the supplier performs the underlying service and the related liability is consequently recognised. The hedging reserve balance at
November 30, 2009 is a gain of $5.9 million (2008: gain of $21.2 million) arising on hedges maturing on or before October 15, 2013. There is no material difference between the period of the consolidated cash flow statement and that of the
consolidated income statement impact.

The Group invests capital expenditure amounts in respect of fixed assets which are in currencies other than the
functional currency of the asset owning entity. The Groups policy is to adjust, at initial recognition, the carrying amount of the fixed asset. The impact on the income statement is in accordance with the depreciation schedule of the related
fixed assets. The hedging reserve balance at November 30, 2009 is a gain of $0.1 million (2008: loss of $0.6 million) arising on hedges maturing on or before July 19, 2010. The impact on the consolidated income statement is expected to
occur linearly within the six years to November 30, 2015.

The effectiveness of foreign exchange hedges

The Group documents its assessment of whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or
cash flows of the hedged item. The Group assesses the effectiveness of foreign exchange hedges based on changes in fair value attributable to changes in spot prices; changes in fair value due to changes in the difference between the spot price and
the forward price are excluded from the assessment of ineffectiveness and are recognised directly in the consolidated income statement.

The cumulative
effective portion of changes in the fair value of derivatives is deferred in equity within other reserves as hedging reserves (refer to Note 28 Movements in reserves). The resulting cumulative gains or losses will be recycled
to the consolidated income statement upon the recognition of the underlying transaction or the discontinuance of a hedging relationship. Movements in respect of effective hedges are detailed in the consolidated statement of recognised income and
expense.

The gains or losses relating to the ineffective portion of cash flow hedges is recognised in the consolidated income statement and amounted to
a loss of $0.1 million (2008: loss of $0.3 million).







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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141













|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |       |      |  |       |   |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----- | ---- |  | ----- | - |  | 
|The hedging reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |       | LOGO
|For the fiscal year (in $ million)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 2009  |      |  | 2008  |   | 
|As at December 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | (11.6 | )    |  | 3.2   |   | 
|Gains/(losses) on the effective portion of derivatives deferred to equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |       |      |  |       |   | 
|hedges on capital expenditure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 0.5   |      |  | (0.8  | ) | 
|hedges on revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 30.8  |      |  | (36.3 | ) | 
|hedges of operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | (14.9 | )    |  | 10.6  |   | 
|income tax (losses)/gains recognised in equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | (12.3 | )    |  | 8.5   |   | 
|Cumulative deferred (gains)/losses transferred to Consolidated income statement:(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |       |      |  |       |   | 
|hedges on revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 10.2  |      |  | (8.4  | ) | 
|hedges of operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | (0.5  | )    |  | 12.1  |   | 
|Cumulative deferred gains/(losses) transferred to initial carrying amount:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |       |      |  |       |   | 
|hedges on capital expenditure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 0.2   |      |  | (0.5  | ) | 
|income tax related to amounts transferred to initial carrying amount of
hedged item                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |      |      |  |      |   | 
|Balance at November 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 2.4   |      |  | (11.6 | ) | 
|(a)Transfers are included in the
following line items in the consolidated income statement:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |       |      |  |       |   | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 2009  |      |  | 2008  |   | 
|Cumulative deferred (losses)/gains recognised in revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | (12.4 | )    |  | 9.8   |   | 
|Cumulative deferred gains recognised in operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 2.0   |      |  | 0.6   |   | 
|Cumulative deferred losses recognised in other gains and losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 0.7   |      |  | (14.1 | ) | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | (9.7  | )    |  | (3.7  | ) | 
|Transfers to the consolidated income statement in respect of forecast
transactions no longer expected to occur was $nil (2008: loss of $12.0 million).  Interest rate risk management The Group places surplus funds on the money markets to generate an investment return for short durations
only, ensuring a high level of liquidity and reducing the credit risk associated with the deposits. Changes in the interest rates associated with these deposits will impact the return generated.  The Group borrows funds at fixed and variable interest rates and has certain revolving credit and
guarantee facilities (refer to Note 30 Borrowings).  The Groups
exposure to interest rates on financial assets and financial liabilities is detailed in the liquidity risk management section of this Note.  Interest rate sensitivity analysis Interest on the
facilities is discussed in Note 30 Borrowings is payable at LIBOR plus a margin which is linked to the ratio of net debt to EBITDA and range from 0.8% to 1.9% per year. As at November 30, 2009 the Group had significant cash
deposits leaving it in net cash position at a margin of 0.8% and it would have required a significant reduction in EBITDA during fiscal year 2009 to move the Group to the highest threshold.  The Groups income and equity balances are not significantly impacted by changes to interest
rates.  Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy
of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.  The Group only invests with entities that are rated the equivalent of investment grade and above.
This information is supplied by independent rating agencies. The Groups exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved
counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually. In respect of its clients and suppliers the Group uses credit ratings as well as other publicly available
financial information and its own trading records to rate its major counterparties.  Net trade receivables (refer to Note 20 Trade and other receivables) consist of a number of clients, spread across geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. |  |       |      |  |       |   | 





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



37. Financial instruments (continued)



As at November 30 (in $ millions)

|                                    |  |                |  |                 
|----------------------------------- |  | -------------- |  | ----------------
|                                    |  | 2009           |  | 2008            
|Trade debtor category               |  | Carryingamount |  | Carrying  amount
|National oil and gas companies      |  | 42.4           |  | 68.0            
|International oil and gas companies |  | 123.3          |  | 161.1           
|Independent oil and gas companies   |  | 35.9           |  | 68.5            
|Total                               |  | 201.6          |  | 297.6           

National oil and gas companies are either partially or fully owned by or directly controlled by the government of any one country whereas both international and independent oil and gas companies have a majority of public or private
ownership. International oil and gas companies are generally greater in size and scope than independent oil and gas companies although distinction between them ultimately relates to the way the company describes itself.

The following table details the maturity analysis for trade receivables.

As at November 30, 2009



|                        |  |                  |  |            |  |                   |  |           |  |          |  |      
|----------------------- |  | ---------------- |  | ---------- |  | ----------------- |  | --------- |  | -------- |  | -----
|(in $ millions)         |  | Less than1 month |  | 1-3 months |  | 3 monthsto 1 year |  | 1-5 years |  | 5+ years |  | Total
|Trade receivables       |  | 165.5            |  | 14.4       |  | 21.7              |  |          |  |         |  | 201.6
|As at November 30, 2008 |  |                  |  |            |  |                   |  |           |  |          |  |      
|(in $ millions)         |  | Less than1 month |  | 1-3 months |  | 3 monthsto 1 year |  | 1-5 years |  | 5+ years |  | Total
|Trade receivables       |  | 102.3            |  | 93.3       |  | 92.5              |  | 9.5       |  |         |  | 297.6

The maximum exposure of the Group to credit-related loss of financial instruments is the aggregate of the carrying values of the cash and cash equivalent, debtors, and derivative assets accounts.

The Group depends on certain significant clients. During fiscal year 2009 two clients (2008: two clients) contributed to more than 10% of the Groups revenue
from continuing operations. The contribution from these clients was $875.6 million (2008: $1,009.5 million). The amounts of the receivables balance of the Groups five major clients as at November 30 are shown in the table below:



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                |  |               
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- |  | --------------
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                |  |               
|Counterparty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 2009           |  | 2008          
|Client A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 50.6           |  | 64.2          
|Client B                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 35.8           |  | 47.4          
|Client C                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 25.7           |  | 27.1          
|Client D                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 24.0           |  | 14.0          
|Client E                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 23.7           |  | 13.6          
|The Group does not have any significant credit risk exposure to
any single counterparty or any group of counterparties having similar characteristics as at November 30, 2009. The Group defines counterparties as having similar characteristics if they are related entities.  The credit risk on liquid funds and derivative financial instruments is limited because the
counterparties are banks with high credit-ratings assigned by international credit-rating agencies.  The table below shows the carrying amount of our major counterparties (depositors) at the balance sheet date using the Standard and Poors credit rating symbols.
|As at November 30 (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 2009           |  | 2008          
|Counterparty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Carryingamount |  | Carryingamount
|Counterparties rated AAA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 206.8          |  | 100.0         
|Counterparties rated AA- to AA+                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 232.1          |  | 157.9         
|Counterparties rated A- to A+                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 157.8          |  | 72.5          
|Counterparties rated BBB+ or below                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |               |  |              

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an
appropriate liquidity risk management framework for the management of the Groups short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining what it believes are adequate reserves,
banking facilities and reserve borrowing facilities, by continuously monitoring







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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143









|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | ---- |  | ---------- | - |  | ----------------- | - |  | --------- | - |  | -------- |  | ------ | - |  | 
|forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Included in Note 30
Borrowings is a listing of undrawn facilities that the Group has at its disposal.  Liquidity and interest risk tables The following tables detail the Groups remaining contractual
maturity for its non-derivative financial liabilities.  The tables have been drawn
up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table consists of the principal cash flows:                                                                                                                                                                                                                                          |  |                  | LOGO
|As at November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|(in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Less than1 month |      |  | 1-3 months |   |  | 3 monthsto 1 year |   |  | 1-5 years |   |  | 5+ years |  | Total  |   | 
|Trade payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 54.7             |      |  | 109.5      |   |  | 5.5               |   |  |          |   |  |         |  | 169.7  |   | 
|Convertible loan notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                 |      |  |           |   |  | 22.5              |   |  | 567.5     |   |  |         |  | 590.0  |   | 
|As at November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|(in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Less than1 month |      |  | 1-3 months |   |  | 3 monthsto 1 year |   |  | 1-5 years |   |  | 5+ years |  | Total  |   | 
|Trade payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 70.4             |      |  | 112.7      |   |  |                  |   |  |          |   |  |         |  | 183.1  |   | 
|Convertible loan notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                 |      |  |           |   |  | 22.5              |   |  | 590.0     |   |  |         |  | 612.5  |   | 
|The following table details the Groups liquidity analysis
for its derivative financial instruments. The table has been drawn up based on the undiscounted net cash outflows/(inflows) on the derivative instruments that settle on a net basis and the undiscounted gross outflows and (inflows) on those
derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed has been determined by reference to the projected interest rates as illustrated by the yield curves existing at the balance sheet
date.                                                                                                                                                                                                                                                              |  |                 
|As at November 30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|(in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Less than1 month |      |  | 1-3 months |   |  | 3 monthsto 1 year |   |  | 1-5 years |   |  | 5+ years |  | Total  |   | 
|Net settled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|Foreign exchange forward contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 1.4              |      |  | 4.6        |   |  | 0.2               |   |  | 0.5       |   |  |         |  | 6.7    |   | 
|Gross settled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|Foreign exchange forward contract payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 93.1             |      |  | 199.3      |   |  | 126.8             |   |  | 93.7      |   |  |         |  | 512.9  |   | 
|Foreign exchange forward contract receipts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | (91.8            | )    |  | (190.2     | ) |  | (121.4            | ) |  | (91.3     | ) |  |         |  | (494.7 | ) | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 2.7              |      |  | 13.7       |   |  | 5.6               |   |  | 2.9       |   |  |         |  | 24.9   |   | 
|As at November 30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|(in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Less than1 month |      |  | 1-3 months |   |  | 3 monthsto 1 year |   |  | 1-5 years |   |  | 5+ years |  | Total  |   | 
|Net settled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|Foreign exchange forward contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 0.3              |      |  | 8.2        |   |  | 14.0              |   |  | 0.9       |   |  |         |  | 23.4   |   | 
|Gross settled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |                  |      |  |            |   |  |                   |   |  |           |   |  |          |  |        |   | 
|Foreign exchange forward contract payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 22.4             |      |  | 112.3      |   |  | 205.5             |   |  | 369.5     |   |  |         |  | 709.7  |   | 
|Foreign exchange forward contract receipts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | (19.4            | )    |  | (99.2      | ) |  | (180.9            | ) |  | (311.8    | ) |  |         |  | 611.3  | ) | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 3.3              |      |  | 21.3       |   |  | 38.6              |   |  | 58.6      |   |  |         |  | 121.8  |   | 
|Fair value of financial instruments The fair values of financial assets and financial liabilities are determined as follows:    foreign currency forward contracts are
measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contract;    the fair value of financial assets and financial liabilities with standard terms and conditions and traded
on active liquid markets is determined with reference to quoted market prices;    the fair value of other financial assets and financial liabilities (excluding derivative instruments) is
determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments; |  |                 





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



37. Financial instruments (continued)



| |  | the fair value of derivative instruments is calculated using quoted prices. Where such prices are not available, use is made of discounted cash flow analysis
using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives; and
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the fair value of financial guarantee contracts is determined using option pricing models where the main assumptions are the probability of default by the
specified counterparty extrapolated from market-based credit information and the amount of loss, given the default.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Except as
detailed in the following table, the carrying amounts of financial assets and financial liabilities as indicated recorded at amortised cost in the financial statements approximate their fair values:



|                                                                    |  |                |  |            |  |                |  |           
|------------------------------------------------------------------- |  | -------------- |  | ---------- |  | -------------- |  | ----------
|                                                                    |  | 2009           |  | 2009       |  | 2008           |  | 2008      
|As at November 30 (in $ millions)                                   |  | Carryingamount |  | Fair value |  | Carryingamount |  | Fair value
|Financial assets:                                                   |  |                |  |            |  |                |  |           
|Cash and cash equivalents                                           |  | 907.6          |  | 907.6      |  | 573.0          |  | 573.0     
|Restricted cash deposits                                            |  | 19.6           |  | 19.6       |  | 11.0           |  | 11.0      
|Net trade receivables (see Note 20)                                 |  | 201.6          |  | 201.6      |  | 297.6          |  | 297.6     
|Employee loans                                                      |  | 1.7            |  | 1.7        |  | 3.0            |  | 3.0       
|Fair value through profit or loss (FVTPL)                           |  | 11.0           |  | 11.0       |  | 33.3           |  | 33.3      
|Derivative instruments in designated hedge accounting relationships |  | 14.1           |  | 14.1       |  | 30.9           |  | 30.9      
|Financial liabilities:                                              |  |                |  |            |  |                |  |           
|Borrowings  Other debt (including current portion)                 |  | 0.2            |  | 0.2        |  | 21.9           |  | 21.9      
|Borrowings  Convertible notes                                      |  | 415.6          |  | 438.7      |  | 397.4          |  | 397.4     
|Fair value through profit or loss (FVTPL)                           |  | 13.3           |  | 13.3       |  | 62.4           |  | 62.4      
|Derivative instruments in designated hedge accounting relationships |  | 10.8           |  | 10.8       |  | 57.3           |  | 57.3      

Assumptions
used in determining fair value of financial assets and liabilities

Cash and cash equivalents

The carrying amounts of cash and cash equivalents approximate their fair value. The estimated value of our long-term debt is based on interest rates as at
November 30, 2009 and 2008 using debt instruments of similar risk.

Restricted cash deposits

The carrying amounts of restricted cash deposits approximate their fair value which is based on actual deposits held with financial institutions.

Net trade receivables

The fair value of trade
receivables is based on their carrying value which is representative of outstanding debtor amounts owing and includes taking into consideration any amounts of possible doubtful debt.

Employee loans

The carrying amounts of employee loans approximate their fair value. The value of these
debts is based on actual amounts to be repaid in the future.

Borrowings  Convertible notes

The fair value of the liability component of convertible notes is determined assuming redemption on October 11, 2013 and using the market interest rate available
to the Group as at the Balance Sheet date.

Forward foreign exchange contracts

The fair value of outstanding financial instruments (as indicated above in the table as FVTPL and derivative instruments) is calculated, using appropriate market
information and valuation methodologies. In some cases, judgement is required to develop the estimates of fair values, thus the estimates provided herein are not necessarily indicative of the amounts that could be realised in a current market
exchange.







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |      |      |      |  |      |   |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---- | ---- |  | ---- | - |  | 
|38. Related party transactions Key management personnel Key management personnel includes the Board of Directors, the Vice Presidents of each
of the six business segments or divisions and other members of the Groups Corporate Management Team. The remuneration of these personnel is determined by the compensation committee having regard to the performance of individuals and market
trends.  The remuneration of key management personnel during the year was as
follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |      | LOGO
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 2009 |      | 2008 |  | 2007 |   | 
|Short-term employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 12.1 |      | 12.4 |  | 17.6 |   | 
|Share based payment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 1.8  |      | 0.8  |  | (0.6 | ) | 
|Post-employment benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 1.6  |      | 0.8  |  | 0.7  |   | 
|Other long-term benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 0.3  |      | 0.4  |  | 0.7  |   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 15.8 |      | 14.4 |  | 18.4 |   | 
|Transactions with key management
personnel The principal executive offices were relocated during fiscal year 2008 from Sunbury-on-Thames to Hammersmith in the United Kingdom. One
of the key management personnel received relocation assistance which takes the form of a $0.1 million reimbursement of professional fees and associated relocation costs, $0.1 million mortgage assistance and a guaranteed receipt of the market value
of a property in Sunbury-on-Thames from the date of announcement of the relocation. The property was sold to a third party in the third quarter of fiscal year 2008 resulting in a loss of less than $0.1 million.  During the fourth quarter of fiscal year 2008 share options were exercised by one member of the
key management personnel. The Group paid $0.3 million of payroll taxes associated with this exercise which was subsequently reimbursed on December 1, 2008. The amount is therefore considered to be a loan to a related party as at
November 30, 2008.  During fiscal year 2008 352,500 share options were granted
to the key management personnel. On December 1, 2008 options granted in the fiscal year 2008 to the Non-executive Directors were cancelled as part of the Groups continuous effort of improving corporate governance procedures.  In 2009 there were no further transactions with key management and no share options were granted
during the year.  Loans and Trade Receivables with related parties As disclosed in Note 17 Interest in associates and joint ventures, the Group has provided loans to associates and joint venture entities at
rates comparable to the average commercial rate of interest amounting to $32.7million (2008: $16.6 million) and Trade receivables of $ 44.0 million (2008: $22.8 million).  There were no loans to key management personnel in 2009 (2008: $0.3 million as noted
above).  Employee loans consisting primarily of salary and travel advances to
employees in furtherance of our business amounted to $1.7 million (2008: $3.0 million).  Trading transactions During the year, the Group entered into transactions with joint ventures and associates which are reported in
Note 17 Interest in associates and joint ventures and are made on terms equivalent to those that prevail in arms length transactions and are made only if such terms can be substantiated.  39. Share based payments Equity-settled share option plan (the 2003 Plan) The
Group operates a share option plan which was approved in April 2003 (the 2003 Plan). The 2003 Plan includes an additional option plan for key directors and employees resident in France as a sub-plan (the French Plan),
and additional options which are granted under the Senior Management Incentive Plan (SMIP). A Compensation Committee appointed by the Board of Directors administers these plans. Options are awarded at the discretion of the Compensation Committee to
directors and key employees.  Under the 2003 Plan options up to but not exceeding
6.3 million common shares can be granted. Following shareholder approval at the Extraordinary General Meeting held on December 18, 2008, the 2003 Plan was expanded to cover up to 8,710,000 shares. The 2003 Plan replaced the previous plan
(the 1993 Plan). Any options granted under the French Plan are included as part of this limit. Other than options granted under the SMIP, options under the 2003 Plan (and therefore also under the French Plan) may be granted, exercisable
for periods of up to ten years, at an exercise price not less than the fair market value per share at the time the option is granted. Such options vest 25% on the first anniversary of the grant date, with an additional 25% vesting on each subsequent
anniversary. The cost of these non-performance share options are therefore recognised using the graded vesting attribution method. Share option exercises are satisfied by either issuing new shares or reissuing treasury shares. Furthermore, options
are generally forfeited if the option holder leaves the Group under any circumstances other than due to the option holders death, disability or retirement before his or her options are exercised. |  |     





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



39. Share based payments (continued)



In fiscal year 2009 no common share options were granted (2008: 1,052,500 common share options), and therefore no
options were granted under the French Plan (2008: 234,000 options).

Senior Management Incentive Plan (SMIP)

As a condition to a bonding facility agreement which was finalised in 2004, there was a requirement to put in place a Key Staff Retention Plan (KSRP), now
called the SMIP, in order to secure the services of certain senior executives. The SMIP provided for deferred compensation as a combination of cash and performance-based share options, linked to the attainment of a number of strategic objectives for
each of the fiscal years 2004, 2005, and 2006. The objectives fixed in the plan, and agreed by the Board Compensation Committee, included targets for net profit, management team retention, bonding lines, internal controls over accounting and audit
activities, business growth and restructuring. During the fiscal year 2007 the Compensation Committee determined that 98.3% of the objectives had been met and therefore the performance-based share options vested on February 28, 2007 and the
cash compensation was paid. No compensation was awarded for fiscal year 2008 and no further awards will be made under this plan. The options under the SMIP are exercisable until ten years after their date of grant.

Restricted Share Plan

In March 2008 the Board of Directors
approved and adopted a restricted share plan to provide a retention incentive to selected senior executives. The plan stipulates that the number of free (without any cash compensation) shares that may be awarded under the plan may not exceed an
average of 350,000 common shares over a three year period. During the three year restricted plan period, participants are not permitted to sell or transfer shares but will be entitled to dividends which will be held by the Group until the restricted
period lapses during fiscal year 2011. In April 2008, 65,000 restricted shares were issued to selected senior executives as part of the retention incentive of the plan. These shares had a fair value representing their weighted average market price
of $22.23, being the market price on the date of issue. No further restricted shares have been issued under the Restricted Share Plan.

2009
Executive Deferred Incentive Scheme

During the fiscal 2009 year the Board of Directors approved and adopted a deferred incentive scheme for selected
senior executives. The scheme enables the executives to defer, on a voluntary basis, up to 50% of their annual bonus into shares of Acergy S.A. which will be matched in cash at the end of three years subject to performance conditions. The value of
the bonus deferred was used to purchase 58,374 shares based upon the prevailing share price on April 17, 2009 which was $7.64. The matched element is conditional upon achieving target total shareholder return over the three years to March, 2012
and is conditional on the shares being held for three years.

2008 Executive Deferred Incentive Scheme

During the fiscal 2008 year the Board of Directors approved and adopted a deferred incentive scheme for selected senior executives including stipulating the number of
shares that may be awarded. The scheme enables the executives to defer, on a voluntary basis, up to 50% of their annual bonus into shares of Acergy S.A. which will be matched in shares at the end of three years subject to performance conditions. The
value of the bonus deferred was used to purchase 17,797 shares based upon the prevailing share price on March 31, 2008 which was $21.35. The matched element is conditional upon the growth of earnings per share over the three years to
November 30, 2010.

Option activity including the SMIP, are as follows:



|                                     |  |                      |   |  |                                        |  |                      |   |  |                                        |  |                      |   |  |                                          
|------------------------------------ |  | -------------------- | - |  | -------------------------------------- |  | -------------------- | - |  | -------------------------------------- |  | -------------------- | - |  | -----------------------------------------
|For the fiscal year                  |  | Number ofoptions2009 |   |  | Weightedaverageexercise pricein $
2009 |  | Number ofoptions2008 |   |  | Weightedaverageexercise pricein $ 2008 |  | Number ofoptions2007 |   |  | Weighted average exercise price in $ 2007
|Outstanding at December 1            |  | 4,517,312            |   |  | 12.51                                  |  | 5,115,696            |   |  | 8.64                                   |  | 8,500,241            |   |  | 6.77                                     
|Granted                              |  |                     |   |  |                                       |  | 1,052,500            |   |  | 22.67                                  |  | 52,000               |   |  | 20.94                                    
|Exercised                            |  | (389,824             | ) |  | 4.18                                   |  | (1,088,952           | ) |  | 3.83                                   |  | (3,403,865           | ) |  | 4.20                                     
|Forfeited                            |  | (269,494             | ) |  | 14.49                                  |  | (228,339             | ) |  | 16.28                                  |  | (32,680              | ) |  | 6.22                                     
|Expired                              |  | (80,500              | ) |  | 10.05                                  |  | (333,593             | ) |  | 11.23                                  |  |                     |   |  |                                         
|Outstanding at November 30           |  | 3,777,494            |   |  | 13.28                                  |  | 4,517,312            |   |  | 12.51                                  |  | 5,115,696            |   |  | 8.64                                     
|Exercisable at the end of the period |  | 2,864,725            |   |  | 10.65                                  |  | 2,686,308            |   |  | 8.29                                   |  | 2,696,840            |   |  | 6.68                                     

The weighted
average fair value of options granted during the 2008 fiscal year was $10.79 (2007: $9.62).







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                     |  |                                                    |  |                                        |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------- |  | -------------------------------------------------- |  | -------------------------------------- |  | 
|The fair value of each option grant is estimated as of the date of grant using the Black-Scholes option pricing model with weighted
average assumptions as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | LOGO               
|For the fiscal year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 2009                |  | 2008                                               |  | 2007                                   | 
|Weighted average share price (in $)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                    |  | 22.67                                              |  | 20.94                                  | 
|Weighted average exercise price (in $)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                    |  | 22.67                                              |  | 20.94                                  | 
|Expected volatility                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                    |  | 55.9%                                              |  | 45.8%                                  | 
|Expected life                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                    |  | 5 years                                            |  | 5 years                                | 
|Risk free rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                    |  | 2.5%                                               |  | 4.6%                                   | 
|Expected dividends (in $)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                    |  | 0.21                                               |  |                                       | 
|The expected life of an option is determined by taking into
consideration the vesting period of options, the observed historical pattern of share option exercises, the effect of non-transferability and exercise restrictions. The expected volatility over the expected term of the options is estimated from our
historical volatility. For fiscal year 2008 the expected dividend takes into account the expected dividends over the four year vesting period assuming a growth rate of 5% over the $0.21 dividend declared during the year. For fiscal year 2007 the
expected dividends were $nil as a historical pattern of dividends payments had not been established at the grant dates and it was the first time the Group had paid a dividend of $0.20.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|The following table summarises information about share
options outstanding as at November 30, 2009:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Options outstanding | 
|Common shares (range of exercise prices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Optionsoutstanding  |  | Weightedaverageremainingcontractuallife (in years) |  | Weighted average exercise price (in $) | 
|$17.01  26.16                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 1,699,076           |  | 7.67                                               |  | 21.09                                  | 
|$10.01  17.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 874,492             |  | 4.56                                               |  | 11.19                                  | 
|$3.01  10.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | 570,199             |  | 4.57                                               |  | 5.66                                   | 
|$1.19  3.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 633,727             |  | 4.01                                               |  | 2.07                                   | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 3,777,494           |  | 20.81                                              |  | 13.28                                  | 
|The following table summarises the
compensation expense recognised during the year:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                     |  |                                                    |  |                                        | 
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 2009                |  | 2008                                               |  | 2007                                   | 
|Non-performance based share options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 4.5                 |  | 3.5                                                |  | 4.0                                    | 
|Senior Management Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                    |  |                                                   |  | 0.2                                    | 
|Restricted Share Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 0.5                 |  | 0.3                                                |  |                                       | 
|Executive Deferred Incentive Scheme                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 0.2                 |  | 0.1                                                |  |                                       | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 5.2                 |  | 3.9                                                |  | 4.2                                    | 
|The non-performance based share options are stated taking into
consideration the taxation benefit of $0.3 million (2008: tax benefit $5.8 million, 2007: tax benefit of $3.6 million).  40. Retirement benefit schemes The
Group operates both defined contribution and defined benefit pension plans, depending on location, covering certain qualifying employees.  Contributions under the defined contribution pension plans are determined as a percentage of gross salary. The expense relating to these plans for fiscal year 2009 was
$21.7 million (2008: $24.2 million, 2007: $6.7 million).  The Group operates both
funded and unfunded benefit pension plans. The benefits under the defined benefit pension plans are based on years of service and salary levels at retirement age. Plan assets of the funded schemes are primarily comprised of marketable securities  During fiscal year 2008 one of the Norwegian funded schemes for existing onshore
employees still in service was settled and gains of $33.3 million were recognised in the consolidated income statement in accordance with IAS19, Employee Benefits. Of this gain $30.0 million was recognised in operating expenses and $3.3 million in
administrative expenses. The gain is a result of a break in the link between the benefit and future salary, and a difference between the cost of settling the benefit and the accounting liability under IAS19. A liability remains for existing
pensioners under this plan. The settlement eliminated the Groups entire legal or constructive obligation for the defined benefits in respect of non-pensioners under this plan. The Group set up a defined contribution scheme for these employees. | 





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



40. Retirement benefit schemes (continued)



The amount included in the balance sheet arising from the Groups obligations in respect of its defined
benefit retirement benefit schemes is as follows:



|                                                          |  |       |   |  |       |  
|--------------------------------------------------------- |  | ----- | - |  | ----- | -
|As at November 30 (in $ millions)                         |  | 2009  |   |  | 2008  |  
|Present value of defined benefit obligations              |  | 49.9  |   |  | 33.9  |  
|Fair value of plan assets in defined scheme               |  | (36.9 | ) |  | (24.8 | )
|Deficit in defined scheme                                 |  | 13.0  |   |  | 9.1   |  
|Present value of unfunded defined benefit obligation      |  | 11.7  |   |  | 9.1   |  
|Past service cost not yet recognised in balance sheet     |  | 2.5   |   |  | 2.9   |  
|Net liability recognised in the balance sheet             |  | 27.2  |   |  | 21.1  |  
|This amount is presented in the
balance sheet as follows: |  |       |   |  |       |  
|Retirement benefit asset                                  |  |      |   |  | (0.1  | )
|Retirement benefit obligations                            |  | 27.2  |   |  | 21.2  |  
|Total                                                     |  | 27.2  |   |  | 21.1  |  

The
following table provides a reconciliation of the retirement benefit obligations:



|                                                       |  |        |   |  |                |   |  |        |   |  |       |   |  |       |   |  |      |   |  |       |   |  |       |  
|------------------------------------------------------ |  | ------ | - |  | -------------- | - |  | ------ | - |  | ----- | - |  | ----- | - |  | ---- | - |  | ----- | - |  | ----- | -
|                                                       |  | Norway |   |  | United Kingdom |   |  | France |   |  | Total |  
|For the fiscal year (in $ millions)                    |  | 2009   |   |  | 2008           |   |  | 2009   |   |  | 2008  |   |  | 2009  |   |  | 2008 |   |  | 2009  |   |  | 2008  |  
|Change in present value of defined benefit obligation: |  |        |   |  |                |   |  |        |   |  |       |   |  |       |   |  |      |   |  |       |   |  |       |  
|At December 1                                          |  | 16.1   |   |  | 72.3           |   |  | 19.1   |   |  | 28.5  |   |  | 7.6   |   |  | 9.4  |   |  | 42.8  |   |  | 110.2 |  
|Service costs                                          |  | 1.0    |   |  | 8.3            |   |  | 0.3    |   |  | 0.2   |   |  | 0.7   |   |  | 0.7  |   |  | 2.0   |   |  | 9.2   |  
|Members contribution                                  |  |       |   |  |               |   |  |       |   |  | 0.1   |   |  |      |   |  |     |   |  |      |   |  | 0.1   |  
|Interest cost                                          |  | 0.8    |   |  | 2.6            |   |  | 1.4    |   |  | 1.3   |   |  | 0.5   |   |  | 0.4  |   |  | 2.7   |   |  | 4.3   |  
|Actuarial losses/(gains)                               |  | 5.0    |   |  | 2.6            |   |  | 4.6    |   |  | (3.0  | ) |  | 0.4   |   |  | 1.7  |   |  | 10.0  |   |  | 1.3   |  
|Benefits paid                                          |  | (0.9   | ) |  | (0.5           | ) |  | (1.6   | ) |  | (0.7  | ) |  | (0.6  | ) |  | (0.5 | ) |  | (3.1  | ) |  | (1.7  | )
|Norwegian national insurance                           |  | 0.1    |   |  | (2.8           | ) |  |       |   |  |      |   |  |      |   |  |     |   |  | 0.1   |   |  | (2.8  | )
|Settlement                                             |  |       |   |  | (52.6          | ) |  |       |   |  |      |   |  |      |   |  |     |   |  |      |   |  | (52.6 | )
|Other                                                  |  |       |   |  |               |   |  |       |   |  |      |   |  |      |   |  | (2.8 | ) |  |      |   |  | (2.8  | )
|Foreign currency exchange rate changes                 |  | 4.3    |   |  | (13.8          | ) |  | 1.4    |   |  | (7.3  | ) |  | 1.4   |   |  | (1.3 | ) |  | 7.1   |   |  | (22.4 | )
|At November 30                                         |  | 26.4   |   |  | 16.1           |   |  | 25.2   |   |  | 19.1  |   |  | 10.0  |   |  | 7.6  |   |  | 61.6  |   |  | 42.8  |  
|Change in fair value of plan assets:                   |  |        |   |  |                |   |  |        |   |  |       |   |  |       |   |  |      |   |  |       |   |  |       |  
|At December 1                                          |  | 12.6   |   |  | 41.5           |   |  | 12.2   |   |  | 20.7  |   |  |      |   |  |     |   |  | 24.8  |   |  | 62.2  |  
|Estimated return on plan assets                        |  | 0.8    |   |  | 1.8            |   |  | 1.0    |   |  | 1.2   |   |  |      |   |  |     |   |  | 1.8   |   |  | 3.0   |  
|Actuarial gains/(losses)                               |  | 4.7    |   |  | (3.9           | ) |  | 2.5    |   |  | (4.8  | ) |  |      |   |  |     |   |  | 7.2   |   |  | (8.7  | )
|Members contribution                                  |  |       |   |  |               |   |  | 1.2    |   |  | 0.1   |   |  |      |   |  |     |   |  | 1.2   |   |  | 0.1   |  
|Company contributions                                  |  | 0.5    |   |  | 5.2            |   |  |       |   |  | 0.9   |   |  |      |   |  |     |   |  | 0.5   |   |  | 6.1   |  
|Benefits paid                                          |  | (0.8   | ) |  | (0.5           | ) |  | (1.6   | ) |  | (0.7  | ) |  |      |   |  |     |   |  | (2.4  | ) |  | (1.2  | )
|Settlement                                             |  |       |   |  | (23.4          | ) |  |       |   |  |      |   |  |      |   |  |     |   |  |      |   |  | (23.4 | )
|Other                                                  |  | (0.2   | ) |  | (0.2           | ) |  |       |   |  |      |   |  |      |   |  |     |   |  | (0.2  | ) |  | (0.2  | )
|Foreign currency exchange rate changes                 |  | 3.1    |   |  | (7.9           | ) |  | 0.9    |   |  | (5.2  | ) |  |      |   |  |     |   |  | 4.0   |   |  | (13.1 | )
|At November 30                                         |  | 20.7   |   |  | 12.6           |   |  | 16.2   |   |  | 12.2  |   |  |      |   |  |     |   |  | 36.9  |   |  | 24.8  |  
|Funded Status                                          |  | (5.7   | ) |  | (3.5           | ) |  | (9.0   | ) |  | (6.9  | ) |  | (10.0 | ) |  | (7.6 | ) |  | (24.7 | ) |  | (18.0 | )
|Past service costs not yet recognised in Balance Sheet |  |        |   |  |                |   |  |        |   |  |       |   |  |       |   |  |      |   |  | (2.5  | ) |  | (2.9  | )
|Indonesian retirement indemnity plan                   |  |        |   |  |                |   |  |        |   |  |       |   |  |       |   |  |      |   |  |      |   |  | (0.2  | )
|Overall Status                                         |  |        |   |  |                |   |  |        |   |  |       |   |  |       |   |  |      |   |  | (27.2 | ) |  | (21.1 | )

Included
within the defined benefit obligation are amounts arising from plans which are unfunded. The unfunded plans are one Norwegian plan with an obligation of $1.6 million (2008: $1.3 million) and the French plan.

The expected return on scheme assets has been determined after considering the expected return on each of the main asset classes separately, and then taking a
weighted average by asset value.







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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149







|                                                                                                                                                                                   |  |          |      |  |               |   |  |        |   |  |                        |   |  | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------- | ---- |  | ------------- | - |  | ------ | - |  | ---------------------- | - |  | 
|The principal assumptions used for the purposes of the actuarial valuations were as follows:                                                                                       |  |          | LOGO
|Year ended November 30, 2009                                                                                                                                                       |  |          |      |  |               |   |  |        |   |  |                        |   | 
|(in %)                                                                                                                                                                             |  | Norway   |      |  | UnitedKingdom |   |  | France |   |  | Total weightedaverage |   | 
|Key assumptions used:                                                                                                                                                              |  |          |      |  |               |   |  |        |   |  |                        |   | 
|Pension increase                                                                                                                                                                   |  | 1.3-4.0  |      |  | 3.0           |   |  |       |   |  | 3.0                    |   | 
|Discount rate                                                                                                                                                                      |  | 4.4      |      |  | 5.4           |   |  | 5.3    |   |  | 4.9                    |   | 
|Expected return on scheme assets                                                                                                                                                   |  | 5.6      |      |  | 7.5           |   |  |       |   |  | 6.4                    |   | 
|Rate of compensation increase                                                                                                                                                      |  | 4.3      |      |  | 4.8           |   |  | 4.9    |   |  | 4.6                    |   | 
|Year ended November 30, 2008                                                                                                                                                       |  |          |      |  |               |   |  |        |   |  |                        |   | 
|(in %)                                                                                                                                                                             |  | Norway   |      |  | UnitedKingdom |   |  | France |   |  | Total weightedaverage |   | 
|Key assumptions used:                                                                                                                                                              |  |          |      |  |               |   |  |        |   |  |                        |   | 
|Pension increase                                                                                                                                                                   |  | 2.0-4.25 |      |  | 3.0           |   |  |       |   |  | 3.2                    |   | 
|Discount rate                                                                                                                                                                      |  | 4.3      |      |  | 7.0           |   |  | 6.0    |   |  | 5.8                    |   | 
|Expected return on scheme assets                                                                                                                                                   |  | 6.3      |      |  | 7.6           |   |  |       |   |  | 6.9                    |   | 
|Rate of compensation increase                                                                                                                                                      |  | 4.5      |      |  | 4.3           |   |  | 4.9    |   |  | 4.5                    |   | 
|Year ended November 30, 2007                                                                                                                                                       |  |          |      |  |               |   |  |        |   |  |                        |   | 
|(in %)                                                                                                                                                                             |  | Norway   |      |  | UnitedKingdom |   |  | France |   |  | Total weightedaverage |   | 
|Key assumptions used:                                                                                                                                                              |  |          |      |  |               |   |  |        |   |  |                        |   | 
|Pension increase                                                                                                                                                                   |  | 2.0-4.25 |      |  | 2.9           |   |  |       |   |  | 3.7                    |   | 
|Discount rate                                                                                                                                                                      |  | 4.7      |      |  | 6.0           |   |  | 4.5    |   |  | 5.0                    |   | 
|Expected return on scheme assets                                                                                                                                                   |  | 5.8      |      |  | 7.3           |   |  |       |   |  | 6.3                    |   | 
|Rate of compensation increase                                                                                                                                                      |  | 4.5      |      |  | 4.3           |   |  | 4.5    |   |  | 4.5                    |   | 
|Amounts recognised in the consolidated income statement within
revenue, operating expenses and administrative expenses in respect of these defined benefit schemes are as follows: |  |         
|Year ended November 30, 2009                                                                                                                                                       |  |          |      |  |               |   |  |        |   |  |                        |   | 
|(in $ millions)                                                                                                                                                                    |  | Norway   |      |  | UnitedKingdom |   |  | France |   |  | Total                  |   | 
|Service cost                                                                                                                                                                       |  | 1.0      |      |  | 0.3           |   |  | 0.7    |   |  | 2.0                    |   | 
|Interest cost                                                                                                                                                                      |  | 0.8      |      |  | 1.4           |   |  | 0.5    |   |  | 2.7                    |   | 
|Expected return on plan assets                                                                                                                                                     |  | (0.8     | )    |  | (1.0          | ) |  |       |   |  | (1.8                   | ) | 
|Past service cost                                                                                                                                                                  |  |         |      |  |              |   |  | (0.8   | ) |  | (0.8                   | ) | 
|Norwegian national insurance and other expenses                                                                                                                                    |  | 0.1      |      |  |              |   |  |       |   |  | 0.1                    |   | 
|Total                                                                                                                                                                              |  | 1.1      |      |  | 0.7           |   |  | 0.4    |   |  | 2.2                    |   | 





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued



40. Retirement benefit schemes (continued)



Year ended November 30, 2008



|                                                |  |        |   |  |               |   |  |        |   |  |       |  
|----------------------------------------------- |  | ------ | - |  | ------------- | - |  | ------ | - |  | ----- | -
|(in $ millions)                                 |  | Norway |   |  | UnitedKingdom |   |  | France |   |  | Total |  
|Service cost                                    |  | 8.3    |   |  | 0.2           |   |  | 0.7    |   |  | 9.2   |  
|Interest cost                                   |  | 2.6    |   |  | 1.3           |   |  | 0.4    |   |  | 4.3   |  
|Expected return on plan assets                  |  | (1.8   | ) |  | (1.2          | ) |  |       |   |  | (3.0  | )
|Past service cost                               |  |       |   |  |              |   |  | (0.7   | ) |  | (0.7  | )
|Settlement                                      |  | (33.3  | ) |  |              |   |  |       |   |  | (33.3 | )
|Norwegian national insurance and other expenses |  | 1.3    |   |  |              |   |  |       |   |  | 1.3   |  
|Total                                           |  | (22.9  | ) |  | 0.3           |   |  | 0.4    |   |  | (22.2 | )

Year ended November 30, 2007



|                                                |  |        |   |  |               |   |  |        |  |       |  
|----------------------------------------------- |  | ------ | - |  | ------------- | - |  | ------ |  | ----- | -
|(in $ millions)                                 |  | Norway |   |  | UnitedKingdom |   |  | France |  | Total |  
|Service cost                                    |  | 9.5    |   |  | 0.6           |   |  | 0.6    |  | 10.7  |  
|Interest cost                                   |  | 2.8    |   |  | 1.4           |   |  | 0.3    |  | 4.5   |  
|Expected return on plan assets                  |  | (2.3   | ) |  | (1.2          | ) |  |       |  | (3.5  | )
|Past service cost                               |  |       |   |  |              |   |  | 0.9    |  | 0.9   |  
|Settlement                                      |  |       |   |  |              |   |  |       |  |      |  
|Norwegian national insurance and other expenses |  | 1.4    |   |  |              |   |  |       |  | 1.4   |  
|Total                                           |  | 11.4   |   |  | 0.8           |   |  | 1.8    |  | 14.0  |  

The
amount recognised in the consolidated income statement for the Indonesian plan was $nil million (2008: $0.2 million, 2007: $0.2 million).

The estimated
amounts of contributions expected to be paid to schemes during fiscal year 2010 is $1.9 million.

Actuarial gains and losses have been reported in the
statement of recognised income and expense. The net cumulative amount after tax of actuarial losses recognised in the statement of recognised income and expenses is $37.2 million (2008: $35.2 million, 2007: $25.1 million), after tax effects of $11.8
million (2008: $11.0 million, 2007: $9.9 million).

The actual return on scheme assets was $9 million (2008: loss of $5.7 million, 2007: actual return
of $3.4 million).

The major categories of plan assets at November 30, 2009 for each category are as follows:

As at November 30, 2009



|                        |  |        |  |               |   |  |      
|----------------------- |  | ------ |  | ------------- | - |  | -----
|(in $ millions)         |  | Norway |  | UnitedKingdom |   |  | Total
|Equity instruments      |  | 2.0    |  | 12.5          |   |  | 14.5 
|Bonds                   |  | 11.4   |  | 3.8           |   |  | 15.2 
|Real estate             |  | 3.6    |  |              |   |  | 3.6  
|Other assets            |  | 3.8    |  | (0.2          | ) |  | 3.6  
|Total                   |  | 20.8   |  | 16.1          |   |  | 36.9 
|                        |  |        | 
|As at November 30, 2008 |  |        |  |               |   |  |      
|(in $ millions)         |  | Norway |  | UnitedKingdom |   |  | Total
|Equity instruments      |  | 0.8    |  | 8.7           |   |  | 9.5  
|Bonds                   |  | 7.7    |  | 3.4           |   |  | 11.1 
|Real estate             |  | 2.1    |  |              |   |  | 2.1  
|Other assets            |  | 2.0    |  | 0.1           |   |  | 2.1  
|Total                   |  | 12.6   |  | 12.2          |   |  | 24.8 







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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As at November 30, 2007



|                                                                                                                                                                                                                                                                                                               |  |        |   |  |               |   |  |       |   |  |     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------ | - |  | ------------- | - |  | ----- | - |  | ----
|(in $ millions)                                                                                                                                                                                                                                                                                                |  | Norway |   |  | UnitedKingdom |   |  | Total |   |  | LOGO
|Equity instruments                                                                                                                                                                                                                                                                                             |  | 12.2   |   |  | 15.2          |   |  | 27.4  |   | 
|Bonds                                                                                                                                                                                                                                                                                                          |  | 18.4   |   |  | 5.1           |   |  | 23.5  |   | 
|Real estate                                                                                                                                                                                                                                                                                                    |  | 6.3    |   |  |              |   |  | 6.3   |   | 
|Other assets                                                                                                                                                                                                                                                                                                   |  | 4.6    |   |  | 0.4           |   |  | 5.0   |   | 
|Total                                                                                                                                                                                                                                                                                                          |  | 41.5   |   |  | 20.7          |   |  | 62.2  |   | 
|The overall expected rate of return is a weighted average of the
expected returns of the various categories of plan assets held. This takes into account the evaluation of the plans assets, the plans proposed asset allocation, historical trends and experience and current and expected market
conditions. |  |       
|The history of experience adjustments is as
follows:                                                                                                                                                                                                                                                           |  |       
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                            |  | 2009   |   |  | 2008          |   |  | 2007  |   | 
|Present value of defined benefit obligations                                                                                                                                                                                                                                                                   |  | 61.6   |   |  | 42.8          |   |  | 110.2 |   | 
|Fair value of scheme assets                                                                                                                                                                                                                                                                                    |  | (36.9  | ) |  | (24.8         | ) |  | (62.2 | ) | 
|Deficit in the scheme                                                                                                                                                                                                                                                                                          |  | 24.7   |   |  | 18.0          |   |  | 48.0  |   | 
|Experience adjustments on scheme
liabilities                                                                                                                                                                                                                                                                   |  | (10.0  | ) |  | (1.3          | ) |  | 4.8   |   | 
|Experience adjustments on scheme assets                                                                                                                                                                                                                                                                        |  | 7.2    |   |  | (8.7          | ) |  | (0.1  | ) | 
|In accordance with the transitional provisions for the amendments to IAS19, Employee Benefits in December 2004, the disclosures above are determined prospectively from the date
of transition to IFRS.                                                                                                        |  |       
|41. Deferred
revenue                                                                                                                                                                                                                                                                                           |  |       
|Revenue deferred relating to the Groups obligations are as
indicated:                                                                                                                                                                                                                                         |  |       
|As at November 30 (in $
millions)                                                                                                                                                                                                                                                                              |  |        |   |  | 2009          |   |  | 2008  |   | 
|Construction contracts (see Note 23)                                                                                                                                                                                                                                                                           |  |        |   |  | 241.2         |   |  | 245.8 |   | 
|Advances received from clients (see below)                                                                                                                                                                                                                                                                     |  |        |   |  | 38.6          |   |  | 59.8  |   | 
|Total                                                                                                                                                                                                                                                                                                          |  |        |   |  | 279.8         |   |  | 305.6 |   | 
|Construction contracts are the gross amount due to clients for
contract work billed prior to progress of work performed. This is adjusted for estimated losses at completion.                                                                                                                                  |  |       
|Advances are amounts received before the related work is
performed.                                                                                                                                                                                                                                            |  |       
|The total deferred revenue relates to periods not exceeding
twelve months.                                                                                                                                                                                                                                     |  |       
|Advances received from clients are recognised as
follows:                                                                                                                                                                                                                                                      |  |       
|For the fiscal year (in $ millions)                                                                                                                                                                                                                                                                            |  |        |   |  | 2009          |   |  | 2008  |   | 
|Balance at December 1                                                                                                                                                                                                                                                                                          |  |        |   |  | 59.8          |   |  | 31.6  |   | 
|Revenue deferred in respect of revenue booked in advance                                                                                                                                                                                                                                                       |  |        |   |  | 19.2          |   |  | 59.8  |   | 
|Revenue recognised on discharge of obligation                                                                                                                                                                                                                                                                  |  |        |   |  | (32.1         | ) |  | (31.6 | ) | 
|Reclassified as held for sale                                                                                                                                                                                                                                                                                  |  |        |   |  | (8.3          | ) |  |      |   | 
|Balance at November 30                                                                                                                                                                                                                                                                                         |  |        |   |  | 38.6          |   |  | 59.8  |   | 





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Financial Review and Statements:

Notes
to the Consolidated Financial Statements continued





42. Cash flow from operating activities

|                                                                  |  |       |  |       |   |  |        |   |  |        |  
|----------------------------------------------------------------- |  | ----- |  | ----- | - |  | ------ | - |  | ------ | -
|For the fiscal year November 30 (in $ millions)                   |  | Notes |  | 2009  |   |  | 2008   |   |  | 2007   |  
|Cash flows from operating activities:                             |  |       |  |       |   |  |        |   |  |        |  
|Net income                                                        |  |       |  | 265.7 |   |  | 307.2  |   |  | 134.5  |  
|Adjustments for:                                                  |  |       |  |       |   |  |        |   |  |        |  
|Depreciation of property, plant and equipment                     |  | 16    |  | 124.6 |   |  | 115.8  |   |  | 91.0   |  
|Net impairment of property, plant and equipment                   |  | 16    |  | 12.8  |   |  | (11.5  | ) |  | 0.3    |  
|Amortisation of intangible assets                                 |  | 15    |  | 2.0   |   |  | 0.2    |   |  | 0.3    |  
|Net impairment of intangible assets                               |  | 15    |  | 2.8   |   |  |       |   |  |       |  
|Share in net income of associates and joint ventures              |  | 17    |  | (49.0 | ) |  | (63.0  | ) |  | (31.5  | )
|Mobilisation costs                                                |  |       |  | 4.5   |   |  | 2.4    |   |  | 2.6    |  
|Share based payments                                              |  | 39    |  | 5.2   |   |  | 3.9    |   |  | 4.2    |  
|Interest on convertible loan notes                                |  | 31    |  | 29.5  |   |  | 28.4   |   |  | 27.1   |  
|Inventories written back/(written off)                            |  |       |  | 0.3   |   |  | 0.9    |   |  | (0.7   | )
|Taxation                                                          |  |       |  | 109.5 |   |  | 160.5  |   |  | 212.2  |  
|Losses/(gains) on disposal of property, plant and equipment       |  |       |  | 1.1   |   |  | (5.4   | ) |  | (13.6  | )
|Foreign currency on liquidation of entities                       |  |       |  |      |   |  | 0.3    |   |  | 1.4    |  
|                                                                  |  |       |  | 509.0 |   |  | 539.7  |   |  | 427.8  |  
|                                                                  |  |       |  |      
|Changes in operating assets and liabilities, net of acquisitions: |  |       |  |       |   |  |        |   |  |        |  
|Decrease/(increase) in inventories                                |  |       |  | 2.4   |   |  | (10.8  | ) |  | (5.9   | )
|Decrease/(increase) in trade and other receivables                |  |       |  | 160.1 |   |  | (47.6  | ) |  | (90.0  | )
|Increase/(decrease) in accrued salaries and benefits              |  |       |  | 10.5  |   |  | 2.3    |   |  | (5.2   | )
|(Decrease)/increase in trade and other liabilities                |  |       |  | (90.0 | ) |  | 238.0  |   |  | (0.9   | )
|Net realised mark-to-market hedging transactions                  |  |       |  | 14.0  |   |  | (14.9  | ) |  | 1.2    |  
|                                                                  |  |       |  | 97.0  |   |  | 167.0  |   |  | (100.8 | )
|                                                                  |  |       |  |      
|Income taxes paid                                                 |  |       |  | (59.9 | ) |  | (213.6 | ) |  | (75.7  | )
|                                                                  |  |       |  |       |   |  |        |   |  |        |  
|Net cash generated from operating activities                      |  |       |  | 546.1 |   |  | 493.1  |   |  | 251.3  |  

43. Post balance sheet events

On December 16, 2009 the Group acquired Acergy Borealis, a state-of-the-art pipelay ship. This asset will be under construction until early 2012. Total costs are expected to be less than $500 million
and will be funded entirely from the Companys existing cash resources.

Subsequent to November 30, 2009, but prior to the adoption of the
2009 Long-Term Incentive Plan, and as an interim measure, the Company put in place the Special Incentive Plan 2009 (SIP 2009), a cash-settled incentive plan designed to provide awards to selected executives and key employees, thus
further aligning their interests with those of shareholders. Awards under the SIP 2009 are in the form of a cash bonus, payable in April 2012, of between zero and up to twelve months base salary, dependent on the average Acergy S.A. share
price as quoted on the NASDAQ Global Select Market between January 1, 2012 and March 31, 2012. If the average share price over that period is $8.75 or less, no cash bonus will be payable. If the average share price over that period is
$35.00 or more, a cash bonus equal to up to twelve months base salary will be payable. If the average share price over that period is between $8.75 and $35.00, a cash bonus equal to between zero and up to twelve months base salary will
be payable, calculated on a straight-line basis pro rata to the share price. Awards under the SIP are capped at the equivalent of up to twelve months base salary. No other performance criteria apply.

At an Extraordinary General Meeting of Shareholders (EGM) held on December 17, 2009, shareholders approved the Acergy S.A. 2009 Long-Term Incentive
Plan (the 2009 LTIP). The 2009 LTIP provides for whole share awards, which vest after three years, dependent upon certain performance conditions. Performance conditions are based on relative Total Shareholder Return (TSR)
against a relevant comparator group of 14 companies. Acergy would have to deliver TSR above the median for any awards to vest.

At the same EGM held on
December 17, 2009, Dod Fraser was appointed an independent Non-executive Director of Acergy S.A. On February 11, 2009 the Board of Directors resolved to recommend to shareholders at the Annual General Meeting in May 2010, a dividend per
common share of $0.23 (2008: $0.22). At an EGM held on February 16, 2010, shareholders approved changes to the Articles of Incorporation of Acergy S.A.

In January 2010 the vessel Acergy Falcon was damaged by fire while in dry dock. The damage to the vessel has been estimated to be $25 million, however further survey of damage is still being undertaken. All costs relating to the fire
damage are expected to be recovered through insurance. There is not expected to be any impact on Acergys ability to meet its current and future project commitments.







|       |  |                                            
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|Acergy |  | Annual Report and Financial Statements 2009



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154





Financial Review and Statements:

Additional Information





Special Note Regarding Forward Looking Statements

Certain statements made in this Report and some of the documents incorporated by reference in this Report may include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the US Securities Exchange Act of 1934, as amended (the Exchange Act). These statements relate to our
expectations, beliefs, intentions or strategies regarding the future. These statements may be identified by the use of words such as anticipate, believe, estimate, expect, intend,
may, plan, project, should, seek, and similar expressions.

These statements include, but
are not limited to, statements as to:



| |  | the impact of the current economic climate on our clients behaviour, government regulations and our business and competitive position;
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------



| |  | the expected execution and amount of projects in our backlog;
|- |  | -------------------------------------------------------------



| |  | our outlook for 2010, including expected revenue and margins;
|- |  | -------------------------------------------------------------



| |  | the expected completion date, estimated progress to completion, and estimated revenue on our projects;
|- |  | ------------------------------------------------------------------------------------------------------



| |  | the utilisation of our assets, including the expected date of delivery and intended uses of certain ships;
|- |  | ----------------------------------------------------------------------------------------------------------



| |  | the expected growth in the industry in which we operate and our ability for growth over the medium term, including trends in the SURF market;
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------



| |  | the expected demand for our products and services and factors affecting such demand;
|- |  | ------------------------------------------------------------------------------------



| |  | the review of our corporate and entity structure;
|- |  | -------------------------------------------------



| |  | our intention to maintain the focus on improving our control environment;
|- |  | -------------------------------------------------------------------------



| |  | the expected amount and timing of any future dividend payments;
|- |  | ---------------------------------------------------------------



| |  | our planned capital expenditure, equity investments and resources for such future expenditure;
|- |  | ----------------------------------------------------------------------------------------------



| |  | our reliance on and the expected relationship with certain clients, including negotiations regarding claims and variation costs;
|- |  | --------------------------------------------------------------------------------------------------------------------------------



| |  | the extent of our obligations under certain contingent liabilities;
|- |  | -------------------------------------------------------------------



| |  | the expected date and value of hedging transactions and future contractual obligations;
|- |  | ---------------------------------------------------------------------------------------



| |  | our business and financial strategies, including certain cost-reduction initiatives, and the expected impact thereof;
|- |  | ---------------------------------------------------------------------------------------------------------------------



| |  | the adequacy of our insurance policies and indemnity arrangements;
|- |  | ------------------------------------------------------------------



| |  | the future level of activity expected in our joint ventures, the access to cash held by our joint ventures, and the potential liability for failure of our joint
venture partners to fulfil their obligations;
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | foreign currency fluctuations;
|- |  | ------------------------------



| |  | changes or developments of different government regulations and the potential or expected effect on us or our clients, including our ability to operate under
different tax regimes, adapt to changes in such tax regimes and ability to defend our tax positions in potential or ongoing investigations or audits;
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | our critical accounting policies and their effectiveness;
|- |  | ---------------------------------------------------------



| |  | the potential judicial interpretation of our corporate governance documents;
|- |  | ----------------------------------------------------------------------------



| |  | anticipated future compliance with debt covenants; and
|- |  | ------------------------------------------------------



| |  | our ability to obtain funding from various sources and our expected use of cash and credit facilities.
|- |  | ------------------------------------------------------------------------------------------------------







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|The forward-looking statements that we make reflect our current views and assumptions with respect to future events and are subject to risks and
uncertainties. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, including those discussed in this Report under Risks and Uncertainties, Financial
review and the quantitative and qualitative information disclosures about Market Risk contained in Note 37 Financial Instruments to the Consolidated Financial Statements. The following factors, and others which are discussed in our
public filings with the US Securities and Exchange Commission (the SEC) including this Report, are among those that may cause actual and future results and trends to differ materially from our forward-looking statements: (i) our ability
to deliver fixed price projects in accordance with client expectations and the parameters of our bids and avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to
recover costs on significant projects; (iv) capital expenditures by oil and gas companies; (v) the duration of the current global economic downturn and oil and gas prices; (vi) delays or cancellation of projects included in our backlog; (vii)
competition in the markets and businesses in which we operate; (viii) prevailing prices for our products and services; (ix) the loss of, or deterioration in our relationship with, any significant clients; (x) the outcome of legal proceedings or
governmental inquiries; (xi) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency
fluctuations; (xii) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xiii) changes in, or our failure to comply with, applicable laws and regulations; (xiv) cost and availability of raw
materials; (xv) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xvi) equipment or mechanical failures which could increase costs, impair revenue and result
in penalties for failure to meet project completion requirements; (xvii) the timely delivery of ships on order and the timely completion of ship conversion programmes; (xviii) the impact of accounting for projects on a
percentage-of-completion basis, which could reduce or eliminate reported profits; (xix) our ability to keep pace with technological changes; (xx) the effectiveness of our disclosure controls and procedures and internal controls over
financial reporting; and (xxi) other factors which are described from time to time in our public filings with the SEC.  Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. We undertake no obligation to update publicly or
revise any forward-looking statements, whether as a result of new information, future events or otherwise.  Selected Financial Data Basis of presentation In this Report, the terms we, us, our, Group, Company and Acergy refer to Acergy S.A. and,
unless the context otherwise requires, its consolidated subsidiaries. References to Acergy activities by years refer to fiscal years ended November 30. Our common shares are traded on the NASDAQ Global Select Market in the form of American
Depositary Shares (ADSs) (each ADS representing one common share) under the ticker symbol ACGY and are listed on Oslo Børs under the ticker symbol ACY.  The selected consolidated financial data set forth below is for the four years ended, and as at,
November 30, 2009, 2008, 2007 and 2006. The information for the three years ended, and as at, November 30, 2009, 2008 and 2007 is derived from our audited Consolidated Financial Statements included in this Report and prepared in accordance
with International Financial Reporting Standards as issued by the International Accounting Standards Board. The information for the year ended and as at November 30, 2006 is unaudited and is prepared in accordance with US GAAP and is
re-presented to reflect the discontinued operations of Acergy Piper. Since the disposal of Acergy Piper, a semi-submersible pipe lay barge and our sole Trunkline business asset, which was completed on January 9, 2009,
the results of the Trunkline business are required to be reported as discontinued operations in all periods presented. For fiscal years 2009, 2008 and 2007 this has been done under IFRS. However, to report the discontinued operations for
fiscal year 2006 and 2005 requires a re-presentation of the prior financial results as reported under US GAAP. In accordance with Instruction 2 to Item 3A of Form 20-F (as adopted by SEC Release No. 33-8879) the Group is omitting fiscal year
2005 from the selected financial data on the basis that the method of reporting and organisational structure in place during that year does not permit the preparation of data on a continuing operations basis without unreasonable effort or expense. |  | LOGO





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Financial Review and Statements:

Additional Information continued



The financial information presented below is only a summary and should be read together with our Consolidated
Financial Statements.



|                                                       |  |             |   |  |             |   |  |             |   |  |                    |  
|------------------------------------------------------ |  | ----------- | - |  | ----------- | - |  | ----------- | - |  | ------------------ | -
|For the fiscal year (in $ millions, except share data) |  | 2009        |   |  | 2008        |   |  | 2007        |   |  | 2006               |  
|                                                       |  | IFRS        |   |  | IFRS        |   |  | IFRS        |   |  | US GAAP(unaudited) |  
|Consolidated Income Statement data:                    |  |             |   |  |             |   |  |             |   |  |                    |  
|Continuing operations:                                 |  |             |   |  |             |   |  |             |   |  |                    |  
|Revenue                                                |  | 2,208.8     |   |  | 2,522.4     |   |  | 2,406.3     |   |  | 1,933.3            |  
|Operating expenses                                     |  | (1,683.8    | ) |  | (1,874.2    | ) |  | (1,859.1    | ) |  | (1,539.3           | )
|Gross profit                                           |  | 525.0       |   |  | 648.2       |   |  | 547.2       |   |  | 394.0              |  
|Administrative expenses                                |  | (231.3      | ) |  | (253.8      | ) |  | (227.6      | ) |  | (140.8             | )
|Net other operating income/(expense)                   |  |            |   |  | 3.4         |   |  | 0.4         |   |  | (1.5               | )
|Share of results of associates and joint ventures      |  | 49.0        |   |  | 63.0        |   |  | 31.5        |   |  |                   |  
|Net operating income from continuing operations        |  | 342.7       |   |  | 460.8       |   |  | 351.5       |   |  | 251.7              |  
|Investment income                                      |  | 6.4         |   |  | 17.9        |   |  | 30.8        |   |  | 18.8               |  
|Other gains and losses                                 |  | 43.6        |   |  | 44.1        |   |  | 0.6         |   |  | 0.5                |  
|Finance costs                                          |  | (31.4       | ) |  | (30.5       | ) |  | (39.0       | ) |  | (4.2               | )
|Income before taxes                                    |  | 361.3       |   |  | 492.3       |   |  | 343.9       |   |  | 266.8              |  
|Taxation                                               |  | (102.8      | ) |  | (162.6      | ) |  | (215.1      | ) |  | (65.6              | )
|Income from continuing operations                      |  | 258.5       |   |  | 329.7       |   |  | 128.8       |   |  | 201.2              |  
|Net income/(loss) from discontinued operations         |  | 7.2         |   |  | (22.5       | ) |  | 5.7         |   |  | 42.8               |  
|Net income                                             |  | 265.7       |   |  | 307.2       |   |  | 134.5       |   |  | 244.0              |  
|Net income attributable to:                            |  |             |   |  |             |   |  |             |   |  |                    |  
|Equity holders of parent                               |  | 245.0       |   |  | 301.4       |   |  | 127.3       |   |  | 236.7              |  
|Minority interest                                      |  | 20.7        |   |  | 5.8         |   |  | 7.2         |   |  | 7.3                |  
|                                                       |  | 265.7       |   |  | 307.2       |   |  | 134.5       |   |  | 244.0              |  
|                                                       |  |             |   | 
|Earnings per share                                     |  | $ per share |   |  | $ per share |   |  | $ per share |   |  | $ per share        |  
|Basic                                                  |  |             |   |  |             |   |  |             |   |  |                    |  
|Continuing operations                                  |  | 1.30        |   |  | 1.76        |   |  | 0.65        |   |  | 1.01               |  
|Discontinued operations                                |  | 0.04        |   |  | (0.12       | ) |  | 0.03        |   |  | 0.22               |  
|Net income                                             |  | 1.34        |   |  | 1.64        |   |  | 0.68        |   |  | 1.23               |  
|Diluted                                                |  |             |   |  |             |   |  |             |   |  |                    |  
|Continuing operations                                  |  | 1.29        |   |  | 1.70        |   |  | 0.63        |   |  | 0.97               |  
|Discontinued operations                                |  | 0.04        |   |  | (0.11       | ) |  | 0.03        |   |  | 0.21               |  
|Net income                                             |  | 1.33        |   |  | 1.59        |   |  | 0.66        |   |  | 1.18               |  







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|                                                                                     |  |         |   |  |         |   |  |         |   |  |                    |   |  |     
|------------------------------------------------------------------------------------ |  | ------- | - |  | ------- | - |  | ------- | - |  | ------------------ | - |  | ----
|For the fiscal year (in $ millions)                                                  |  | 2009    |   |  | 2008    |   |  | 2007    |   |  | 2006               |   |  | LOGO
|                                                                                     |  | IFRS    |   |  | IFRS    |   |  | IFRS    |   |  | US GAAP(unaudited) |   | 
|Consolidated Cash Flow Statement data:                                               |  |         |   |  |         |   |  |         |   |  |                    |   | 
|Net cash generated from operating activities                                         |  | 546.1   |   |  | 493.1   |   |  | 251.3   |   |  | 38.2               |   | 
|Net cash used in investing activities                                                |  | (100.4  | ) |  | (286.7  | ) |  | (220.8  | ) |  | (117.3             | ) | 
|Net cash (used in)/provided by financing activities                                  |  | (52.0   | ) |  | (186.1  | ) |  | (190.0  | ) |  | 468.8              |   | 
|Net increase/(decrease) in cash and cash equivalents                                 |  | 393.7   |   |  | 20.3    |   |  | (159.5  | ) |  | 389.7              |   | 
|                                                                                     |  |         |   |  |         |   |  |         |   |  |                    |   | 
|Other financial data:                                                                |  |         |   |  |         |   |  |         |   |  |                    |   | 
|Depreciation and amortisation expense from continuing operations                     |  | (126.5  | ) |  | (108.0  | ) |  | (83.5   | ) |  | (53.4              | ) | 
|Depreciation and amortisation expense from discontinued operations                   |  | (0.1    | ) |  | (8.0    | ) |  | (7.8    | ) |  | (5.2               | ) | 
|Impairment of intangible assets from continuing operations                           |  | (2.8    | ) |  |        |   |  |        |   |  |                   |   | 
|Impairment of property, plant and equipment from continuing operations               |  | (11.8   | ) |  | (1.8    | ) |  | (0.3    | ) |  | (2.1               | ) | 
|Impairment of property, plant and equipment from discontinued operations             |  | (1.0    | ) |  | (1.0    | ) |  |        |   |  |                   |   | 
|Reversal of impairment of property, plant and equipment from discontinued
operations |  |        |   |  | 14.3    |   |  |        |   |  |                   |   | 
|                                                                                     |  |         |   |  |         |   |  |         |   |  |                    |   | 
|                                                                                     |  |         |   |  |         |   |  |         |   |  |                    |   | 
|As
at November 30 (in $ millions, except for per share data)                         |  | 2009    |   |  | 2008    |   |  | 2007    |   |  | 2006               |   | 
|                                                                                     |  | IFRS    |   |  | IFRS    |   |  | IFRS    |   |  | US GAAP(unaudited) |   | 
|Consolidated Balance Sheet data:                                                     |  |         |   |  |         |   |  |         |   |  |                    |   | 
|Non-current assets                                                                   |  | 1,090.1 |   |  | 1,139.3 |   |  | 1,025.1 |   |  | 828.5              |   | 
|Current assets                                                                       |  | 1,743.0 |   |  | 1,331.8 |   |  | 1,401.7 |   |  | 1,380,7            |   | 
|Total assets                                                                         |  | 2,833.1 |   |  | 2,471.1 |   |  | 2,426.8 |   |  | 2,209.2            |   | 
|                                                                                     |  |         |   |  |         |   |  |         |   |  |                    |   | 
|Non-current liabilities                                                              |  | 512.7   |   |  | 555.5   |   |  | 507.6   |   |  | 596.6              |   | 
|Current liabilities                                                                  |  | 1,221.2 |   |  | 1,114.2 |   |  | 1,100.2 |   |  | 912.9              |   | 
|Total liabilities                                                                    |  | 1,733.9 |   |  | 1,669.7 |   |  | 1,607.8 |   |  | 1,509.5            |   | 
|Total equity and liabilities                                                         |  | 2,833.1 |   |  | 2,471.1 |   |  | 2,426.8 |   |  | 2,209.2            |   | 
|Total borrowings                                                                     |  | 415.8   |   |  | 419.3   |   |  | 389.8   |   |  | 507.1              |   | 
|Deferred tax assets                                                                  |  | 19.3    |   |  | 39.8    |   |  | 59.9    |   |  | 31.0               |   | 
|Deferred tax liabilities                                                             |  | 49.9    |   |  | 56.1    |   |  | 35.6    |   |  | 13.5               |   | 
|Total equity                                                                         |  | 1,099.2 |   |  | 801.4   |   |  | 819.0   |   |  | 699.7              |   | 
|Issued share capital, excluding own shares but including paid in surplus             |  | 893.8   |   |  | 888.6   |   |  | 882.8   |   |  | 878.8              |   | 
|Issued share capital, including own shares and paid in surplus                       |  | 671.2   |   |  | 659.2   |   |  | 771.6   |   |  | 846.5              |   | 
|                                                                                     |  |         |   |  |         |   |  |         |   |  |                    |   | 
|Dividend per share (declared and paid)                                               |  | 0.22    |   |  | 0.21    |   |  | 0.20    |   |  |                   |   | 

Further details of this selected financial data can be found in the accounts and notes to the
accounts on pages 92 to 152.





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Financial Review and Statements:

Additional Information continued





Other Information

Significant subsidiaries

Significant
subsidiaries (excluding joint ventures) are set out in the table below.



|                         |  |                          |  |                        
|------------------------ |  | ------------------------ |  | -----------------------
|Company name             |  | Country of incorporation |  | Percentage of ownership
|Acergy Shipping Ltd      |  | Isle of Man              |  | 100%                   
|Acergy Norway AS         |  | Norway                   |  | 100%                   
|Acergy France SA         |  | France                   |  | 100%                   
|Acergy West Africa SASU  |  | France                   |  | 100%                   
|Acergy Angola SA         |  | France                   |  | 100%                   
|Acergy Treasury Limited  |  | UK                       |  | 100%                   
|Class 3 Shipping Limited |  | Bermuda                  |  | 100%                   

In
addition, the Group has interests in a number of joint ventures, which are described in the Financial Review  Investments in Associates and Joint Ventures on page 122.

Risks and insurance

The Groups operations are subject to all the risks normally associated with offshore
development and operations and could result in damage to or loss of property, suspension of operations or injury or death to employees or third parties. The Group believes it insures assets at appropriate levels, subject to appropriate self-insured
deductibles. Such assets include all capital items such as ships, major equipment and land-based property. The determination of the appropriate level of insurance coverage is made on an individual asset basis taking into account several factors,
including the age, market value, cash flow value and replacement value of the asset in hand.

The Groups operations are conducted in hazardous
environments where accidents involving catastrophic damage or loss of life could result, and litigation arising from such an event may result in the Group being named a defendant in lawsuits asserting large claims. The Group insures itself against
liability arising from its operations, including loss of or damage to third-party property, death or injury to employees and/or third parties, statutory workers compensation protection and pollution. However, there can be no assurance that the
amount of insurance the Group carries is sufficient to protect fully in all events and a successful liability claim for which it is under-insured or uninsured could have a material adverse effect. See Risk Factors on page 43. The Group is exposed to
substantial hazards, risks and delays that are inherent in the offshore services business for which liabilities may potentially exceed its insurance coverage and contractual indemnity provisions.

Government regulations

The Group is subject to international
conventions and governmental regulations that strictly regulate various aspects of its operations. The maritime laws and the health and safety regulations of the jurisdictions in which the Group operates govern operations in these areas. A system of
management policies and procedures, which describes all business processes, is designed to meet best practice and covers all legislative requirements in the jurisdictions in which the Group operates. In addition, the guidelines set by the
International Marine Contractor Association are closely followed.

The International Maritime Organisation has made the regulations of the International
Safety Management (ISM) Code mandatory. The ISM Code provides an international standard for the safe management and operation of ships, pollution prevention and certain crew and ship or barge certifications. The Group believes that it is
in compliance with these standards to the extent they are applicable to its operations.

Compliance with current health, environmental, safety and other
laws and regulations is a normal part of the business. These laws change frequently and the Group incurs costs to maintain compliance with such laws. Although these costs have not had a material impact on its financial condition or results of
operations in recent years, there can be no assurance that they will not have such an impact in the future. Moreover, although it is the Groups objective to maintain compliance with all such laws and regulations applicable to the Group, there
can be no assurance that all material costs are avoided, liabilities and penalties imposed as a result of governmental regulation in the future.

In
addition, the Group is required by various governmental and other regulatory agencies, including the agencies referred to above, to obtain certain permits, licenses and certificates with respect to its equipment and operations. The permits, licenses
and certificates required in its operations depend upon a number of factors but are normally of a type required of all operators in a given jurisdiction. The Group believes that it has or can readily obtain almost all permits, licenses and
certificates necessary to conduct its operations.

Some countries require that the Group enters into joint venture or similar business arrangements with
local individuals or businesses in order to conduct business in such countries.

The Groups operations are affected from time to time and to
varying degrees by political developments and federal and local laws and regulations. In particular, oil and gas production operations and economics are affected by price control, tax and other laws relating to the petroleum industry, by changes in
such laws and by constantly changing administrative regulations. Such developments directly or indirectly may affect the operations of the Group and those of its clients.







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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |               |  |               |     |  |               |  |               |  |               |  |                 |  | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- |  | ------------- | --- |  | ------------- |  | ------------- |  | ------------- |  | --------------- |  | 
|The Group conducts business in certain countries known to experience governmental corruption. Although it is committed to conducting
business in a legal and ethical manner in compliance with local and international statutory requirements and standards applicable to its business, there is a risk that employees or representatives may take actions that violate either the US Foreign
Corrupt Practices Act or legislation promulgated pursuant to the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions or other applicable laws and regulations. Such violations could result in
monetary or other penalties against us or our subsidiaries and could damage our reputation and, therefore, our ability to do business, see Risks and Uncertainty  Financial and Compliance Risks.  Inspection by a classification society and dry-docking The hull and machinery of most of the Groups ships must be classed by a classification society authorised by its country of registry. The
classification society certifies that the ship is safe and seaworthy in accordance with the classification rules as well as with applicable rules and regulations of the country of registry of the ship and the international conventions of which that
country is a member. Those of our ships that are not required to be classed comply with applicable regulations.  Each classed ship is inspected by a surveyor of the classification society. A visual inspection is carried out annually to ascertain the general condition of the ship or relevant items. Intermediate surveys are
carried out at the second or third annual survey. This intermediate survey includes a visual inspection of the hull structure, machinery and electrical installations and equipment. Renewal surveys, which involve a major inspection of the hull
structure, machinery installations and equipment, are carried out at five-year intervals. A classed ship is also required to be dry-docked at least once every five years for inspection of the underwater parts of the ship. For example, in fiscal year
2008 Acergy Polaris was dry docked for seven months because it was 30 years old. As a general policy, the Group dry-docks the classed ships for intermediate inspection every 30 months. Should any non-compliance be found, the classification
society surveyor will issue its report as to appropriate repairs, which must be made by the ship owner within the time limit prescribed. Insurance underwriters make it a condition of insurance coverage that a classed ship is in class,
and all of our ships meet that condition as at November 30, 2009.  Employees The Groups workforce varies based on the workload at any particular time. The following table presents the breakdown of
permanent and temporary employees by region as at November 30, 2009, 2008 and 2007 respectively: |  | LOGO         
|As at November 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 2009Permanent |  | 2009Temporary |     |  | 2008Permanent |  | 2008Temporary |  | 2007Permanent |  | 2007  Temporary | 
|Acergy AFMED                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 1,384         |  | 1,408         |     |  | 1,578         |  | 1,133         |  | 3,001         |  | 284             | 
|Acergy NEC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 703           |  | 43            |     |  | 815           |  | 122           |  | 849           |  | 335             | 
|Acergy NAMEX                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 111           |  |              |     |  | 166           |  | 10            |  | 160           |  | 10              | 
|Acergy SAM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 765           |  | 19            |     |  | 680           |  | 51            |  | 752           |  | 69              | 
|Acergy AME                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 165           |  | 94            |     |  | 228           |  | 109           |  | 272           |  | 155             | 
|Acergy CORP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | 1,279         |  | 414           |     |  | 1,185         |  | 367           |  | 603           |  | 393             | 
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 4,407         |  | 1,978         | (a) |  | 4,652         |  | 1,792         |  | 5,637         |  | 1,246           | 
|(a) The average number of temporary employees for fiscal year 2009 was 1,808  A significant number of employees are represented by labour unions. As part of the normal course
of business, a number of union agreements came up for annual renegotiation in 2009. The Group believes that it maintains a good relationship with all employees and their unions. In addition, many workers, including most divers, are hired on a
contract basis and are available on short notice.  The decrease in permanent and
temporary employees in our Acergy NEC, Acergy NAMEX and Acergy AME reflects a lower activity level in those regions. In fiscal year 2009, where possible, the Group has significantly reduced the use of temporary personnel to enable as many permanent
staff as possible to be retained. The employment levels in our Acergy AFMED and Acergy SAM are broadly unchanged from previous year.  Supplies and raw materials The Group generally does not
manufacture the components used in the offshore services that it provides, but rather procures and installs equipment manufactured or fabricated by others. The Group fabricates structures using components and equipment it procures, and this work is
performed at its fabrication yard located in Warri (Nigeria) and subsidiary Sonamets yard in Lobito (Angola).  The procurement of goods and services represents a significant proportion of annual operating costs and has a direct impact on overall financial performance. When procuring supplies and raw materials the
Groups goal is therefore to take the following principles into consideration:  In placing a commitment with a supplier or subcontractor, the Group tries to secure the best commercial and operational
arrangement, taking into account the costs, payment terms and risks, such as technical, quality, health, safety and environmental management, reliability, lead times and confidence of supply.  The Group operates as one organisation and
leverages, whenever it can, combining knowledge, relationships, networks and buying power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 





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| |  | The procurement process is executed in accordance with our policies and procedures and adheres to the Code of Business Conduct.
|- |  | -------------------------------------------------------------------------------------------------------------------------------



| |  | The Group actively develops and manages relationships with suppliers and subcontractors. The Group believes that strong relationships with vendors are key to
gaining a competitive advantage as well as ensuring that their delivery goals are aligned with the needs of the business.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Marketing

Marketing of the Groups services is performed through the regional offices. The Groups marketing strategy is
focused on ensuring that the Group is invited to bid on all projects that are consistent with the Groups strategy, and where competitive advantage on the basis of the ship ownership, fabrication capacity, engineering excellence or
technological specialisation exists. The Group uses its industry know-how and relationships with clients to ensure the Group is aware of all projects in the markets that fit these criteria.

Most of the Groups work is obtained through a competitive tendering process. When a target project is identified by the marketing teams, the decision to prepare
and submit a competitive bid is taken by regional and corporate management.

Clients

In fiscal year 2009, the Group had 40 clients worldwide, of which 25 were major national and international oil and gas companies. The level of construction services
required by any particular client depends on the size of that clients capital expenditure budget devoted to construction plans in a particular year. Consequently, clients that account for a significant portion of contract revenue in one fiscal
year may represent an immaterial portion of contract revenue in subsequent fiscal years. In fiscal year 2009, ExxonMobil, Statoil and Chevron Texaco accounted for 25%, 15% and 8% of the revenue from continuing operations respectively. In 2008,
ExxonMobil, Statoil and Chevron Texaco accounted for 28%, 12% and 9% of the revenue from continuing operations, respectively. During fiscal years 2009 and 2008, the ten largest clients accounted for 75% and 77%, respectively of our revenue from
continuing operations, and over that period six clients, Total, Statoil, Petrobras, ExxonMobil, Chevron Texaco and Shell consistently numbered among the ten largest clients. The business typically involves a relatively concentrated number of
significant projects in any year. Consequently, the Group expects that a limited number of clients will account for significant portions of the revenue in any year. For further details, see Note 20 Trade and other receivables and Note 37
Financial Instruments to the Consolidated Financial Statements.

Competition

The offshore contracting business remains highly competitive, in particular due to reduced demand in light of the current market conditions and because the process of
awarding a number of major projects has been delayed, particularly in West Africa, primarily due to uncertain political and economic conditions in the region over the last few years. The contract price is still the primary factor in determining
which qualified contractor with available equipment will be awarded a contract. Clients also consider other criteria in their evaluations, such as the availability and technical capabilities of equipment and personnel, efficiency, condition of
equipment, safety record and reputation. Furthermore, a local presence and a guaranteed minimum percentage of local content is a very important factor with a significant political value.

The Groups ships are specialised and have few alternative uses and, because of their nature and the environment in which they work, have relatively high support costs whether operating or not. Because these
costs are fixed, and in order to avoid additional expenses associated with temporarily idle ships, the Group may choose to bid for projects at lower margins depending on the prevailing contractual rates in a given region.

The Group considers itself one of only four global companies including Saipem, Technip and Subsea 7 capable of providing a wide range of offshore services on a
worldwide basis in the major offshore oil and gas producing regions. Competition in the SURF market comprises six other main competitors besides the above global players (in no particular order): Helix, Allseas, Global Industries, JR McDermott,
Seastream and Heerema. The Group faces strong competition from these offshore contractors. The Group also faces competition from smaller regional competitors and less integrated providers of offshore services. A number of contractors as well as pure
ship owners have placed orders for additional ships capable of working in the SURF market which might cause an excess of supply and the demand for services may be adversely affected. The Group expects that any increase in demand may be met quickly
by new ships being deployed in the future. In addition, all companies today are facing a scarcity of human resources to support tender activities and project execution.







|       |  |                                            
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |     
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Health, safety, environmental and security management The Group conducts business in accordance with a well-defined set of processes, which comply with the International Management Code for the Safe Operation of Ships and for Pollution Prevention. Health, Safety,
Environmental and Security philosophy is based on the international standards of OHSAS 18001 for occupational health and safety, ISO 14001 for environmental management and international best practice, government and industry standards for security.
This Management System is supported by managements commitment, personal accountability, training, fairness and the measurement and analysis of performance measures. The Management System is designed to ensure that the employees and
everyone the Group works with remains safe and healthy, that it effectively manages its environmental aspects and limits the damage to or loss of property and equipment. Each manager is responsible for taking the necessary steps to create and
maintain a culture of continuous improvement.  The Management System also provides
the necessary instructions, procedures and guidelines encompassing all areas of the Groups operations to assure the quality of services to clients. The Group maintains a stringent quality assurance programme throughout the organisation in
accordance with ISO 9001 2000, an international standard established by the International Organisation for Standardisation to certify quality assurance systems. The Group has introduced the Total Acergy Quality Leadership initiative to further drive
the total quality management process across the organisation. Each segment has dedicated professional health, safety, environmental and quality assurance staff, who are responsible for overseeing and supporting the projects in that particular
segment.  Intellectual property The Group holds a number of patents, trademarks, software and other intellectual property to support its engineering and operational activities. As at
November 30, 2009, 86 patents were in force in 24 countries, and the Group currently has a portfolio of 164 additional developments under patent application. A limited number of our patents are held in common with other industrial partners. The
Group also conducts some of its operations under licensing agreements allowing it to make use of specific techniques or equipment patented by third parties. The Group does not consider that any one patent or technology represents a significant
percentage of revenue.  The Groups research and development programmes are
focused on the requirements of clients, who are constantly seeking to develop oil and gas reserves in deeper waters, and on increasing the efficiency of offshore equipment and operations. The Group runs research and development programmes aimed at
developing new technologies and extending existing technologies for the installation, repair and maintenance of offshore structures, particularly underwater pipelines and risers. The Groups research and development activities are typically
carried out internally using both dedicated research personnel and as part of specific offshore construction projects. External research and development is performed either through strategic technological alliances or via joint industry
collaborative projects, where appropriate. The expenditures on Group-sponsored research and development, excluding programmes undertaken as part of specific offshore construction projects were approximately $6.2 million in fiscal year 2009 (2008:
$6.8 million, 2007: $4.2 million).  Description of property The Group operates a fleet of highly specialised ships, barges and unmanned underwater Remotely Operated Vehicles (ROVs), deployed in the worlds
major offshore oil and gas exploration regions. Key assets, as at November 30, 2009, include:  3 subsea construction ships;  7 flexible pipelay ships;  4 inspection, repair maintenance and survey ships;  1 heavy lift and pipelay ship (operated by
SapuraAcergy);  1 heavy lift barge
(operated by SHL);  3 rigid pipelay
ships/barges;  9 cargo barges; and  31 work class and observation ROVs. |  | LOGO





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Major assets

The following table describes the major assets as at November 30, 2009:



|                 |  |                                               |  |                          |  |      |  |                       |  |                   
|---------------- |  | --------------------------------------------- |  | ------------------------ |  | ---- |  | --------------------- |  | ------------------
|Name             |  | Capabilities                                  |  | Year built/ majorupgrade |  | ROVs |  | Lengthoverall(metres) |  | Owned/   Chartered
|Acergy Harrier   |  | Subsea construction                           |  | 1985                     |  | 1    |  | 84                    |  | Owned             
|Acergy Hawk      |  | Subsea construction                           |  | 1978                     |  |     |  | 93                    |  | Owned             
|                 |  |                                               |  | 1984/1992/               |  |      |  |                       |  |                   
|Acergy Osprey    |  | Subsea construction                           |  | 1996/2003                |  | 1    |  | 102                   |  | Owned             
|                 |  | Flexible flowline lay, multi-purpose          |  |                          |  |      |  |                       |  |                   
|Acergy Eagle     |  | subsea construction                           |  | 1997                     |  | 2    |  | 140                   |  | Owned             
|Acergy Legend    |  | ROV support, subsea construction              |  | 1985/1998                |  | 2    |  | 73                    |  | Owned             
|Acergy Discovery |  | Flexible flowline lay, subsea construction    |  | 1990                     |  | 1    |  | 120                   |  | Owned             
|                 |  |                                               |  | 1982/1994/               |  |      |  |                       |  |                   
|Acergy Condor    |  | Flexible flowline and umbilical lay           |  | 1999/2002                |  | 2    |  | 141                   |  | Owned             
|                 |  |                                               |  | 1976/1995/               |  |      |  |                       |  |                   
|Acergy Falcon    |  | Rigid and flexible flowline and umbilical lay |  | 1997/2001                |  | 2    |  | 162                   |  | Owned             
|Toisa Proteus    |  | Flexible flowline and umbilical lay           |  | 2002                     |  | 2    |  | 132                   |  | Chartered(a)      
|Polar Queen      |  | Flexible flowline and umbilical lay           |  | 2001/2007                |  | 2    |  | 146                   |  | Chartered(b)      
|Pertinacia       |  | Flexible flowline and umbilical lay           |  | 2003/2007                |  | 2    |  | 130                   |  | Chartered(c)      
|                 |  |                                               |  | 1979/1991/1996/          |  |      |  |                       |  |                   
|                 |  |                                               |  | 1999/2002/2003/2006/     |  |      |  |                       |  |                   
|Acergy Polaris   |  | Deepwater derrick/pipelay barge               |  | 2008                     |  | 2    |  | 137                   |  | Owned             
|Far Saga         |  | ROV support, subsea construction              |  | 2001                     |  | 2    |  | 89                    |  | Chartered(d)      
|                 |  | Pipeline inspection, ROV survey and ROV light |  |                          |  |      |  |                       |  |                   
|Acergy Petrel    |  | intervention activities                       |  | 2003                     |  | 1    |  | 76                    |  | Owned             
|                 |  | Pipeline inspection, ROV survey and ROV light |  |                          |  |      |  |                       |  |                   
|Acergy Viking    |  | intervention activities                       |  | 2007                     |  | 1    |  | 98                    |  | Chartered(e)      
|Stanislav Yudin  |  | Heavy lift, 2,500-tonne crane                 |  | 1985                     |  |     |  | 183                   |  | Chartered(f)      
|Acergy Orion     |  | Pipelay barge                                 |  | 1977/1984/1997           |  |     |  | 85                    |  | Owned             
|Skandi Acergy    |  | Construction ship with an ice-class hull      |  | 2008                     |  | 2    |  | 157                   |  | Chartered(g)      
|Sapura 3000      |  | Deep water construction ship                  |  | 2008                     |  | 2    |  | 151                   |  | Owned(h)          



|(a) | Chartered from TOISA Limited for three years beginning May 2007.
|--- | ----------------------------------------------------------------

|(b) | Chartered from GC Rieber Shipping Ltd for six years beginning in 2006 with two renewal options at the end of 2012, one for three years and the other for one year.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Chartered from Elettra TLC SpA for six years with a possible extension upon mutual agreement in 2013.
|--- | -----------------------------------------------------------------------------------------------------

|(d) | Chartered from Farstad Supply A.S. beginning 2002 until 2010 with one two-year option to extend.
|--- | ------------------------------------------------------------------------------------------------

|(e) | Chartered from Eidesvik Shipping A.S. for eight years beginning December 2007 with ten annual options to extend until the end of 2027.
|--- | --------------------------------------------------------------------------------------------------------------------------------------

|(f) | Chartered to SHL, a joint venture, by a subsidiary of Lukoil Kaliningradmorneft plc through her economic life.
|--- | --------------------------------------------------------------------------------------------------------------

|(g) | Chartered from DOFCON ASA August 8, 2008 until August 2016 with four renewal options at the end of 2016, two for two years and the other two for one year.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | Owned and jointly operated by the joint venture, SapuraAcergy.
|--- | --------------------------------------------------------------

In
December 2009 the Group acquired Acergy Borealis, a state-of-the-art pipelay ship, which is a DP3 dynamic positioning vessel equipped with a 5,000 tonne crane. Acergy plans to install a 1,000 tonne J-Lay Tower and state of the art 600 tonne
S-Lay equipment. It will also be fitted with a range of support systems and construction equipment for worldwide deepwater and harsh environment operations. Final completion and operational delivery of the ship is scheduled for 2012. Total costs,
upon delivery, are expected to be less than $500 million, including $260 million relating to the acquisition of the ship and delivery as per the original design. The investment will be funded entirely from the Groups existing cash resources.

The environmental regulations which affect the utilisation of the assets listed above are described in Additional Information  Government
Regulations.

For a discussion of ship utilisation, see Financial Review  Factors Affecting the Business Results  Ship
Utilisation.







|       |  |                                            
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                               |  |                             |  |                                             |  |          |  | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------- |  | --------------------------- |  | ------------------------------------------- |  | -------- |  | 
|Other properties As at
November 30, 2009 the Group owned or leased real estate properties to conduct its business as described below:                                                                                                                                                                                                                                                                                                                                      |  | LOGO                                         
|Location                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Function                                      |  | Office space(square metres) |  | Work or storagespace or land(square metres) |  | Status   | 
|Hammersmith, England, UK                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Principal executive offices                   |  | 1,393                       |  |                                            |  | Leased   | 
|Hammersmith, England, UK                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Offices                                       |  | 566                         |  |                                            |  | Leased   | 
|Aberdeen, Scotland, UK                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Office, workshop, storage and sport & leisure |  | 19,150                      |  | 12,695                                      |  | Leased   | 
|East Kalimantan, Indonesia                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Office, workshop and storage                  |  | 7,185                       |  |                                            |  | Owned(a) | 
|Houston, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Offices                                       |  | 5,203                       |  | 4,000                                       |  | Leased   | 
|Lagos, Nigeria                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Offices                                       |  | 1,820                       |  |                                            |  | Leased   | 
|Warri, Nigeria                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Offices, fabrication and storage              |  | 1,765                       |  | 222,582                                     |  | Leased   | 
|Pointe Noire, Congo                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Offices and storage                           |  | 1,300                       |  |                                            |  | Leased   | 
|Lobito, Angola                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Offices, fabrication and storage              |  | 5,945                       |  | 554,431                                     |  | Leased   | 
|Luanda, Angola                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Offices and storage                           |  | 844                         |  | 10,200                                      |  | Leased   | 
|Madeira Island, Portugal                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Office                                        |  | 152                         |  |                                            |  | Leased   | 
|Newfoundland, Canada                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | Office                                        |  | 978                         |  |                                            |  | Leased   | 
|New Orleans, Louisiana                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Offices, workshop and fabrication             |  | 134                         |  | 52,609                                      |  | Owned(b) | 
|Perth, Australia                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | Offices                                       |  | 1,138                       |  |                                            |  | Leased   | 
|Port Gentil, Gabon                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Offices, work space and land                  |  | 1,793                       |  |                                            |  | Owned    | 
|Ntchengue yard, Gabon                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Offices and storage                           |  | 790                         |  | 16,954                                      |  | Owned    | 
|Ntchengue yard, Gabon                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | Yard                                          |  |                             |  | 413,517                                     |  | Leased   | 
|Rio de Janeiro, Brazil                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Offices                                       |  | 297                         |  |                                            |  | Owned    | 
|Rio de Janeiro, Brazil                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Offices                                       |  | 1,349                       |  |                                            |  | Leased   | 
|Macae City, Brazil                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Offices, workshop, fabrication and storage    |  | 2,508                       |  | 14,112                                      |  | Owned    | 
|Singapore                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Offices, workshop and storage                 |  | 1,630                       |  | 1,879                                       |  | Leased   | 
|Stavanger, Norway                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | Offices                                       |  | 12,869                      |  |                                            |  | Leased   | 
|Suresnes, France                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | Offices                                       |  | 21,548                      |  |                                            |  | Leased   | 
|(a)The office, workshop and storage in East Kalimantan, Indonesia, as at November 30,
2009 were classed as an asset held for sale and are expected to be sold in fiscal year 2010. (b)The offices,
workshop and fabrication in Louisiana as at November 30, 2009 were classed as an asset held for sale and sold in December 2009.  The Group believes that its current facilities are adequate to meet the requirements of its present and foreseeable future operations. | 





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Investor Information

Overview

We are a seabed-to-surface engineering and construction contractor to the offshore oil and gas
industry worldwide. We provide integrated services, and we plan, design and deliver complex, projects in harsh and challenging environments.

Our vision
is to be acknowledged by our clients, our people, and our shareholders, as the leader in seabed-to-surface engineering and construction. We operate internationally as one Group  globally aware and locally sensitive, sharing our expertise and
experience to create innovative solutions.

We are more than solution providers; we are solution partners  ready to make long-term investments in
our people, assets, know-how and relationships in support of our clients. We specialise in creating and applying innovative and efficient solutions in response to the technical complexities faced by our oil and gas Clients as they explore and
develop offshore production fields in increasingly deepwater and more challenging environments. In doing so, we provide services and products that add value for our clients throughout the entire life cycle of offshore oil and gas field exploration,
development and production.

Service capabilities

We divide our business into the following principal service capabilities:



| |  | Subsea, Umbilicals, Risers and Flowlines (SURF): This comprises the engineering, procurement, installation and construction work relating to
oil and gas fields that are developed subsea, in which the production wellhead is on the seabed, usually in deepwater or harsh and challenging environments. This includes large multi-year, often Engineering, Procurement, Installation and
Commissioning (EPIC) projects encompassing pipelay, riser and umbilical activities of a complete field development, tieback projects, involving pipelaying, umbilical installation and, in some cases, trenching or ploughing, to connect a new or
additional subsea development to an existing production facility. The installations of jumpers and spool pieces, as well as hot-tapping including hyperbaric welding, are also typical SURF activities. This capability also includes
construction and diving support ship charters and rental of equipment including construction support Remote Operating Vehicles (ROVs).
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Survey / Inspection, Maintenance and Repair
|- |  | -------------------------------------------



| |  | Inspection, Maintenance and Repair (IMR): We provide a comprehensive range of subsea inspection, maintenance and repair services to keep oil and gas fields worldwide
producing at optimum capacity. Our services include platform surveys, debris removal and pipeline inspections using both divers and/or ROV inspection on producing oil and gas field infrastructure, as a regular activity throughout the life of the
offshore field. We have a number of ongoing long-term maintenance contracts with leading operators, and also provide on demand call-out services where required.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Survey: We provide comprehensive support for both external clients and internal projects in the fields of construction support, platform and pipeline inspection and seabed
mapping using specialised Survey ships and Survey ROVs. The construction support activities include pre-lay, as-laid and as-trenched surveys, spool metrology, deepwater positioning and light installation works. Platform inspection is performed both
underwater and on topsides.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Conventional: Our deepwater expertise is complemented by conventional construction skills and capabilities that help our clients solve complex hydrocarbon
extraction and field development problems, together with our hook-up and pipeline installation tie-ins expertise. This comprises engineering, construction, installation and refurbishment activities relating to shallow water platforms attached to the
seabed and their associated pipelines. Conventional projects involve shallow water activities and proven technology, typically under long-term contracts or EPIC projects. Conventional activities include the design, construction and installation of
fixed platforms. We also provide, in certain locations, fabrication of platform jackets and topsides providing strong links with local communities and increased local employment in these countries.
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Organisation and register

Acergy S.A. is a
Société Anonyme Holding, organised in the Grand Duchy of Luxembourg under the Company Law of 1915, as amended. We were incorporated in Luxembourg in 1993 as the holding company for all of our activities.

Our registered office is located at 412F, route dEsch, L-2086 Luxembourg and we are registered in the Companies Register of the Luxembourg District Court
under the designation R.C. Luxembourg B 43172.

Our agent for US federal securities law purposes is Acergy U.S. Inc., 10787 Clay Road, Houston, Texas
77041. Our principal executive offices are c/o Acergy M.S. Limited., 200 Hammersmith Road, Hammersmith, London, W6 7DL England, telephone number +44 (0)20 8210 5500. Our website address is www.acergy-group.com. The information on our website is not
part of, or incorporated by reference into, this Report.







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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           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|History and development of Acergy A
publicly traded company since May 1993, we were established through the merger of the businesses of two leading diving support services companies, Comex Services S.A. and Stolt-Nielsen Seaway A/S, which were acquired by Stolt-Nielsen S.A.
(SNSA) in separate transactions in 1992. At the time of acquisition, Comex Services S.A. was a leading worldwide subsea services contractor, which pioneered deepwater saturation diving and subsea construction using both manned and
unmanned techniques. Stolt-Nielsen Seaway A/S operated principally in the North Sea and pioneered the development and use of specially designed, technologically sophisticated diving support ships and ROVs to support operations in hostile deepwater
environments.  On January 13, 2005, SNSA sold the equity interest it previously
held in us and in 2006 we changed our name to Acergy S.A.  Acergy principally
operates as a seabed-to-surface engineering and construction contractor to the oil and gas industry worldwide. We provide integrated services, and we plan, design and deliver complex projects in harsh and challenging offshore environments. Since
1993, we have grown and evolved our business through numerous acquisitions and divestitures, as well as the establishment of joint ventures.  On November 27, 2008 the decision was taken to dispose of our Trunkline business, which was a non-core business segment consisting solely of Acergy Piper
and was hence classified as discontinued operations for fiscal year 2008 and restated for fiscal year 2007. The sale of Acergy Piper to Saipem (Portugal) Comercio Maritimo S.U. Lda was completed on January 9, 2009 for a sales
consideration of $78.0 million.  On July 23, 2009 the Group entered into a sale
agreement to dispose of 19% of its ownership interest in Sonamet and Sonacergy. Sonamet operates a fabrication yard for clients, including Acergy, operating in the offshore oil and gas industry in Angola. Sonacergy provides overseas logistics
services and support to Sonamet. This will result in a reduction of the 55% ownership interest the Group held in each at November 30, 2009 to 36%. The finalisation of this sale is conditional upon the completion of certain conditions precedent,
which were outstanding at November 30, 2009. Completion of this sale is expected to occur in 2010.  On December 16, 2009 we announced the acquisition of Acergy Borealis, a pipelay ship for operations in deepwater, currently being built at the Sembawang Shipyard in Singapore. Final completion and operational
delivery of this ship is scheduled for the first half of 2012.  Corporate
Governance requirements As a company incorporated in Luxembourg, and quoted on both the NASDAQ Global Select Market and Oslo Stock Exchanges, Acergy
is subject to a number of different laws and regulations with respect to corporate governance. A key corporate governance activity undertaken by the Group concerns compliance with the provisions of Section 404 of the Sarbanes-Oxley Act of 2002,
which is applicable to all companies listed on a U.S. national securities exchange and enforced by the U.S. Securities and Exchange Commission (SEC). The Group is committed to achieving high corporate governance standards at all times. We believe
the observance of those standards is in the best interest of all stakeholders.  The
Group acknowledges the division of roles between shareholders, the Board and the Corporate Management Team. The Company further ensures good governance is adopted by holding regular Board meetings which the Corporate Management Team attend to
present strategic, operational and financial matters.  We are subject to the NASDAQ
Listing Rule 5600 series establishing certain corporate governance requirements for companies listed on the NASDAQ Global Select Market. Pursuant to NASDAQ Listing Rule 5615(a)(3), as a foreign private issuer we may follow our home country corporate
governance practices in lieu of the requirements of the Rule 5600 series, provided that we (i) comply with certain mandatory sections of the Rule 5600 series, (ii) disclose each other requirement of Rule 5600 that we do not follow and describe the
home country practice followed in lieu of such other requirement and (iii) deliver a letter to NASDAQ Global Select Market from our Luxembourg counsel certifying that the corporate governance practices that we do follow are not prohibited by
Luxembourg law. Our independent Luxembourg counsel has certified to NASDAQ Global Select Market that our corporate governance practices are not prohibited by Luxembourg law.  The requirements of the Rule 5600 series and the Luxembourg corporate governance practices that
we follow in lieu thereof are described below:  Rule 5605(e)(1) requires that if there is a Nomination Committee, it be comprised solely of Independent Directors, as such term is defined in NASDAQ Listing Rule 5605(a)(2). In lieu of the requirements of Rule 5605(e)(1), we follow
generally accepted business practices in Luxembourg, which do not have rules governing the composition of the Nomination Committee. As of the date of this report, each of our governance and Nomination Committee members, except Tom Ehret, satisfied
the independence requirements established by the NASDAQ Listing Rules.  Rule 5605(c)(2)(A) requires that the Audit Committee has at least three members, each of whom, among other things, must be independent as defined under NASDAQ Listing Rule 5605(a)(2) and meet the criteria for
independence set forth in Rule 10A-3(b)(1) under the Exchange Act. In lieu of the requirements of Rule 5605(c)(2)(A), we follow generally accepted business practices in Luxembourg, which do not have rules governing the composition of the Audit
Committee. Notwithstanding the foregoing, as of the date of this report each of our Audit Committee members satisfied the independence criteria under Rule 10A-3(b)(1) of the Exchange Act. |  | LOGO





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| |  | Rule 5605(b)(2) requires regularly scheduled meetings at which only independent Directors, as defined in NASDAQ Listing Rule 5605(a)(2), are present
(executive sessions). In lieu of the requirements under Rule 5605(b)(2), we follow generally accepted business practices in Luxembourg, which do not have rules requiring regularly scheduled executive sessions and therefore permit the
attendance at such executive sessions of Directors that are not independent. Notwithstanding the foregoing, as of the date of this report, each of our Directors attending executive sessions satisfied the independence
requirements established by the NASDAQ Listing Rules.
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| |  | Rule 5620(c) requires that the quorum for any meeting of the holders of common stock must not be less than 33 1/3% of the outstanding shares of our common voting
stock. In lieu of the requirements of Rule 5620(c), we follow generally accepted business practices in Luxembourg, which do not require a specific quorum for meetings of its shareholders (other than in specific cases required by Luxembourg law).
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| |  | Rule 5620(b) requires that we solicit proxies and provide proxy statements for all meetings of shareholders and provide copies of such proxy solicitation to
NASDAQ Global Select Market. In lieu of the requirements of Rule 5620(b), we follow generally accepted business practices in Luxembourg, which do not require the provision of proxy statements for meetings of shareholders.
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| |  | Rule 5635(c) requires us to obtain shareholder approval when certain plans or other equity compensation arrangements are established or materially amended. In
lieu of the requirements of Rule 5635(c), we follow generally accepted business practices in Luxembourg, which do not require shareholder approval before the establishment or amendment of such plans or arrangements to the extent they relate to
equity compensation of employees of the Company or Directors or employees of subsidiaries of the Company (as opposed to equity compensation of Directors of the Company in their capacity as such Directors).
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Other than as noted above, we comply with the corporate governance requirements of NASDAQ Listing Rule 5600.

Articles of Incorporation

Set forth below is a description of
the material provisions of our Articles of Incorporation and the Luxembourg Company Law. At the Extraordinary General Meeting on February 16, 2010 the shareholders approved the recommendation made by the Board of Directors with respect to the
adoption of amended Articles of Incorporation. The amendment of the Articles reflected changes in legislation and removed restrictions which previously applied to shareholdings, and which were not in conformity with current law or practice.

The following summary is qualified by reference to the Articles of Incorporation as amended on February 16, 2010 and applicable Luxembourg law.

Objective and purposes

Article 3 of the
Articles of Incorporation sets forth our objective as a holding company, namely to invest in subsidiaries which will provide subsea construction, maintenance, inspection, survey and engineering services, predominantly for the offshore oil and gas
industry. More generally, it may participate in any manner in all commercial, industrial, financial and other enterprises of Luxembourg or foreign nationality through the acquisition by participation, subscription, purchase, option or by other means
of all shares, stocks, debentures, bonds or securities; the acquisition of patents and licenses which we will administer and exploit; we may lend or borrow with or without security, provided that any money so borrowed may only be used for the
purposes of Acergy or companies that are subsidiaries of or associated with or affiliated with Acergy; and in general to undertake any operations directly or indirectly connected with such objects as permitted by the Luxembourg Holding Company Law
of 1929.

Following shareholder approval on February 16, 2010, Article 3 contains an additional provision requiring the Company to pursue the above
objective within the limits set out by the Holding Company Law of 1929. This additional provision will remain in force until the earlier of (i) midnight on December 31, 2010 or (2) the relinquishing of the special regime provided by
the Holding Company Law of 1929 pursuant to a decision by the Board of Directors, duly authorised by shareholders. The Board of Directors is authorised to delete this additional provision following the occurrence of either of these two events.

Directors

Under the Articles of Incorporation,
the Board of Directors is to be comprised of not less than three members, elected by a simple majority of our outstanding shares represented at a general meeting of shareholders for a period not exceeding six years and until their successors are
elected and at least three Directors have accepted. It is our customary practice that Directors are elected for terms of one year at the Annual General Meeting of shareholders held each year in Luxembourg.







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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           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|The Articles of Incorporation do not mandate the retirement of Directors under an age limit requirement. The Articles of Incorporation do not
require a Director of the Board to be shareholders.  Under Luxembourg law the
Directors of the Board owe a duty of loyalty and care. They must exercise the standard of care of a prudent and diligent business person.  Our Articles of Incorporation provide that any Director who has a personal interest in a transaction must disclose such interest, must abstain from voting on such
transaction and may not be counted for purposes of determining whether a quorum is present at the meeting. Such Directors interest in any such transaction shall be reported at the next general meeting of shareholders. A Director who owns less
than 5.0% of our capital stock or of the other party whose transaction with us is being submitted to our Board of Directors for its approval is not subject to the provisions of this paragraph.  Authorised shares Our authorised share capital consists of 230,000,000 common shares, par value $2.00 per share. According to our Articles of Incorporation, our Board of Directors, or delegate(s) duly appointed by our Board of
Directors, are authorised to issue additional common shares, at such times and on such terms and conditions, including issue price, as our Board of Directors or its delegates may in its or their discretion resolve, up to a maximum of 230,000,000
common shares (less the amount of common shares already issued at such time), par value $2.00 per share. When doing so, our Board of Directors may suppress the preferential subscription rights of our existing shareholders to the extent it deems
advisable. This authorisation granted to the Board of Directors shall lapse five years after publication of the amendment of our Articles of Incorporation in the Luxembourg Official Gazette-Memorial C. The amendments of the Articles of Incorporation
regarding the above quoted authorised capital were approved at the Extraordinary General Meeting of shareholders held on August 4, 2009 and publication of such amendment in the Official Gazette occurred on September 3, 2009. From time to
time we take such steps that are required to continue the authorised capital in effect.  The Articles of Incorporation require all shares to be issued in registered form. All shares, when issued, were fully paid and non-assessable.  According to our Articles of Incorporation, there are also authorised 1,500,000 class A shares, par value $2.00 per share. Such Class A shares have been authorised for
the sole purpose of options granted under an earlier stock option plan under which options are still outstanding, and may not be used for any other purpose. The rights, preferences and priorities of such class A shares are set forth in our Articles
of Incorporation. All such class A shares shall convert to common shares immediately upon issuance. The maximum amounts of shares to be issued under this authorisation are included in the above noted maximum amount of common shares to be issued.
Such authorised class A shares shall exist only until December 31, 2010 and shall expire, without further action, on such date.  Authority to acquire own shares (Treasury Shares) At the Annual
General Meeting held on May 15, 2006, the Board of Directors was granted a standing authorisation to acquire our own shares for a maximum aggregate consideration of $300 million. The Board of Directors authorisation is not limited to a certain
amount of common shares. However, Luxembourg Company Law generally requires that we do not hold more than 10% of our own shares. Furthermore, we may not purchase our own shares if and to the extent that this will reduce our net assets below the
aggregate of our share capital and legal reserve. On September 11, 2006, the Group announced the commencement of its share buyback programme up to a maximum of 10% of the Companys issued share capital, pursuant to the aforementioned
authorisation. This authorisation was reaffirmed at the Annual General Meeting of shareholders held on May 25, 2007 and we, or any wholly owned subsidiary, were authorised to acquire common shares from time to time in the open market and in
privately negotiated transactions, at a price reflecting such open market price and on such other terms as shall be determined by the Board of Directors, provided such purchases are in conformity with Luxembourg Company Law. The authorisation was
granted for purchases completed on or before August 31, 2009.  At the Annual
General Meeting on May 22, 2009, the Board of Directors acquired another shareholder approval to renew the authority to buy back shares within the limit of the 230,000,000 authorised share capital. The authorisation was granted for purchases
completed on or before August 31, 2010. Pursuant to the share buyback programme, the Group repurchased 914,800 common shares for a total consideration of $16.5 million during fiscal year 2006. During fiscal year 2007 the Group repurchased
8,098,625 common shares for a total consideration of $146.8 million. The share buyback programme was completed during fiscal year 2008 during which the Group repurchased 6,374,100 common shares for a total consideration of $138.3 million. 11,746,930
own shares were held by Acergy S.A. and indirectly by a wholly-owned subsidiary and these shares are currently retained as treasury shares. These treasury shares represent 6.03% of the number of issued shares.  Under applicable provisions of the Luxembourg Company Law, the common shares repurchased pursuant
to the share buyback programme are held as treasury shares, meaning that these shares remain issued but are not entitled to vote. Further, in computing earnings per common share, these shares are not considered part of outstanding common shares. The
cost of these shares is being accounted for as a deduction from shareholders equity.  For more information relating to our share buyback programme and repurchases made there under, please see Note 27 Own Shares to the Consolidated Financial Statements. |  | LOGO





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Authority to cancel treasury shares

At the Extraordinary General Meeting on August 4, 2009, the Board of Directors was granted authorisation to cancel shares which have been bought back or which may be bought back from time to time by the
Company or any indirect subsidiary thereof as the Board of Directors sees fit an to make all consequential changes to the Articles of Incorporation to reflect the cancellation in the number of issued common shares.

Preferential subscription rights (pre-emptive rights)

As a
general rule, shareholders are entitled to preferential subscription rights under Luxembourg law in respect of the issuance of shares for cash. When issuing new shares out of the total authorised shares, the Board of Directors may, however, suppress
the preferential subscription rights of shareholders to the extent it deems advisable. As a general rule, shareholders are entitled to pre-emptive rights under Luxembourg law in respect of the issuance of shares for cash, unless the Articles of
Incorporation provide otherwise. Our Articles of Incorporation, as amended following the shareholder approval at the Extraordinary General Meeting on August 4, 2009 and published on September 3, 2009, authorise the Board of Directors to
deny shareholders pre-emptive rights for a period of five years and the Board of Directors has done so with respect to all authorised but unissued common shares. Upon the expiration of authorised but unissued shares as described above, the
suppression of pre-emptive rights will also terminate and shareholders will be entitled to pre-emptive rights once again unless the Board of Directors recommends denying further such rights and such recommendation is approved by the shareholders. As
a result, common shares will be entitled to pre-emptive rights after September 3, 2014. The authorisation by our Articles of Incorporation to issue new shares out of the total authorised shares granted to the Board of Directors will remain in
effect until September 3, 2014. Upon the expiration of this authorisation, the suppression of preferential subscription rights will also terminate and shareholders will be entitled to preferential subscription rights once again.

Voting rights

Each of our shares is entitled to one vote.
Shareholders holding shares registered in the VPS, the central depository of Oslo Børs, or other such depository may attend and vote at our general meetings. Under Luxembourg law, shareholder action can generally be taken by a simple majority
of common shares present or represented at a meeting, without regard to any minimum quorum requirements. Three exceptions to the law are (i) to amend the Articles of Incorporation which requires (x) a two-thirds vote of those common shares
present or represented, and (y) when the meeting is first convened, a quorum of 50% of the outstanding shares entitled to vote; (ii) to change our country of incorporation to a country other than Luxembourg or to increase the contribution
of the shareholders, which require the affirmative vote of 100% of the common shares; and (iii) any action for which the Articles of Incorporation require more than a majority vote or a quorum.

Shareholder meetings and notice

Under the Articles of
Incorporation, we are required to hold a general meeting of shareholders in Luxembourg each year, on the fourth Friday in May. In addition, the Board of Directors may call any number of extraordinary general meetings, which may be held in Luxembourg
or elsewhere, although any extraordinary general meeting convened to amend the Articles of Incorporation will be held in Luxembourg. The Board of Directors is further obliged to call a general meeting of shareholders to be held within thirty days
after receipt of a written demand therefore by shareholders representing at least one-tenth of the issued and outstanding shares entitled to vote thereat. Such shareholders may also require additions to the proposed agenda of any meeting of
shareholders.

The Articles of Incorporation require notice of any general meeting to be sent by first class mail, postage prepaid, or via e-mail if
such address has been indicated, to all shareholders at least twenty days prior to such meeting. Shareholders may be represented by written proxy, provided the written proxy is deposited with us at our registered office in Luxembourg, or with any
director, at least five days before the meeting.

Dividends

Interim dividends can be declared in any fiscal year by the Board of Directors. Interim dividends can be paid, but only six months after the close of the preceding fiscal year and after the prior years
financial statements have been approved by the shareholders at a general meeting.

Other Luxembourg legal requirements apply to the payment of interim
dividends. The satisfaction of all legal requirements must be certified by an independent auditor. Final dividends are declared once a year at the Annual General Meeting of the shareholders. Interim and final dividends on common shares can be paid
out of earnings, retained and current, as well as paid in surplus after satisfaction of the legal reserve as referred to hereinafter.

Luxembourg law
authorises the payment of stock dividends if sufficient surplus exists to pay for the par value of the shares issued in connection with any stock dividend.

Luxembourg law requires that 5.0% of unconsolidated net profit each year be allocated to a legal reserve before declaration of dividends. This requirement continues until the reserve is 10.0% of our issued capital, after which no further
allocations are required until further issuance of shares.

The legal reserve may also be satisfied by allocation of the required amount at the time of
issuance of shares or by a transfer from paid-in surplus. The legal reserve is not available for dividends. The legal reserve for all existing common shares has been satisfied to date and appropriate allocations will be made to the legal reserve
account at the time of each new issuance of common shares.







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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           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|Liquidation preference Under the Articles
of Incorporation, in the event of liquidation, all debts and obligations must first be paid, and thereafter all remaining assets are to be paid to the holders of common shares.  Restrictions on shareholders Our Articles of Incorporation provide that in recognition of the fact that certain shareholdings may threaten us with imminent and grave damage, which term we understand is likely to include adverse tax
consequences, a hostile takeover attempt or adverse governmental sanctions, (i) no US Person (as defined in our Articles of Incorporation) shall own, directly or indirectly, more than 9.9% of our outstanding shares, (ii) all shareholders of any
single country may not own, directly or indirectly, more than 49.9% of our outstanding shares.  In order to enforce the foregoing restrictions, the Articles of Incorporation empower the Board of Directors to take certain remedial action including causing us: (i) to decline to register any prohibited transfer;
(ii) to decline to recognise any vote of a shareholder precluded from holding shares; (iii) to require any shareholder on our register of shareholders or any prospective shareholder to provide information to determine whether such person is
precluded from holding shares; and (iv) upon the issuance of a notice, to require the sale of shares to us at the lesser of (a) the amount paid for the shares if acquired within the twelve months immediately preceding the date of the notice, and (b)
the last quoted sale price for the shares on the day immediately preceding the day on which the notice is served (provided that the Board of Directors may in its discretion pay the amount calculated under (b) in situations where (a) would otherwise
apply and result in a lower purchase price, if the Board of Directors determines it equitable after taking into account specified factors); and to remove the name of any shareholder from the register of shareholders immediately after the close of
business on the day the notice is issued and payment is made available. The foregoing defensive measures may have the effect of making more difficult a merger involving us, or a tender offer, open-market purchase programme or other purchase of our
shares, in circumstances that could give shareholders the opportunity to realise a premium over the then prevailing market price for their shares.  There are no limitations currently imposed by Luxembourg law on the rights of non-resident shareholders to hold or vote their shares.  Change in control Except as described above, there are no provisions in our Articles of Incorporation that would have the effect of delaying, deferring or preventing a change in control of Acergy and that would only operate with
respect to a merger, acquisition or corporate restructure involving us or any of our subsidiaries. However, it should be noted that the 2003 Plan and the French Plan provide that all options issued there under will vest upon the occurrence of
certain change of control events. See Governance  Incentive plans.  Mandatory bid requirements The Articles of Incorporation do not contain any provision requiring a shareholder who reaches a certain
threshold of shares to make a mandatory bid for our other outstanding shares. However, applicable stock exchange regulations may do so. In addition, Luxembourg and Norwegian laws applicable to us require a mandatory bid by a shareholder, or
shareholders acting in concert, if such person or persons aggregate 33 1/3 of the voting power in a company. Should a mandatory bid arise, the Oslo Stock Exchange regulations would also apply.  Taxation Luxembourg taxation The following is intended only as a general summary of material tax considerations
affecting dividend payments by us relevant to prospective investors. It does not constitute and should not be construed to constitute legal or tax advice to any such investor. Prospective investors are therefore urged to consult their own tax
advisers with respect to their particular circumstances. Double taxation treaties may contain rules affecting the description in this summary.  Luxembourg taxation of Acergy We are a company incorporated
under Luxembourg law, and we continue to enjoy until December 31, 2010 the special tax status granted to billionaire holding companies under the Law of July 31, 1929 and the Grand Ducal Decree of December 17, 1938. These companies can
carry out a limited number of activities, including the holding of shares and securities and the financing of affiliated companies.  The Company has elected to be taxed as a billionaire holding company and is subject to a variable tax rate, calculated annually with half-yearly advance payments,
which is based on certain interest expense, dividends and certain compensation paid to non-resident Directors during the period. The tax is calculated as follows:  a) Where the total interest paid each year to holders of bonds and other comparable debt securities amounts to or exceeds
2.4 million:  3% on interests paid to holders of bonds and other comparable debt securities;  1.8% on dividends and remuneration to non-resident
Directors on the first 1.2 million;  0.1% on any surplus dividends and remuneration to non-resident Directors.  b) Where the total interest paid each year to holders of bonds and other comparable debt
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| |  |  | 3% on interests paid to holders of bonds and other comparable debt securities;
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| |  |  | 3% on dividends and remuneration to non-resident Directors, but to a maximum amount corresponding to the difference between 2.4 million and the total interest paid to holders of bonds and other comparable debt securities;
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| |  |  | 1.8% on any surplus dividends and remuneration to non-resident Directors up to 1.2 million distributed;
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| |  |  | 0.1% on surplus dividends and remuneration to non-resident Directors.
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|c) | Billionaire holding companies are subject to a minimum annual charge of 48,000. The tax election made cannot be reversed; in other words, billionaire holding companies cannot elect different tax treatment from one year to the next.
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For the fiscal years ended November 30, 2009 and 2008 this tax amounted to $350,000 and $351,000 respectively.

As a billionaire holding company, we are not subject to any income tax, municipal tax, wealth tax or withholding tax in Luxembourg. The contribution tax of 1% previously levied on issues of share capital was abolished on January 1,
2009.

Most treaties concluded by Luxembourg with other countries are not applicable to us as a holding company subject to the Law of July 31,
1929, because such companies are specifically excluded from the scope of the application of these treaties.

Luxembourg taxation of shareholders

Withholding tax

Due to our special tax status,
dividends that we distribute are not subject to withholding tax in Luxembourg, whoever the beneficiaries of those dividends may be.

Tax residence

Holders of the common shares will not become resident or be deemed to be resident in Luxembourg by reason only of the holding of the common shares.

Shareholders not residents of Luxembourg

Tax
on dividends

Holders of the common shares who are not residents of Luxembourg and who do not hold the common shares through a permanent
establishment in Luxembourg are not liable to Luxembourg income tax on dividends that we distribute.

Tax on capital gains

Holders of common shares who are not residents of Luxembourg and who do not hold the common shares through a permanent establishment in Luxembourg will be taxed in
Luxembourg upon any gain deriving from the sale of the common shares, if the common shares are held (i) less than 6 months from the acquisition of the common shares, provided the relevant holder has held more than 10.0% of our share capital or
(ii) more than 6 months from the acquisition of the common shares provided the relevant holder (x) has held more than 10.0% of our share capital at any one time during the 5 years preceding the disposal of the common shares and
(y) was a Luxembourg resident taxpayer during more than 15 years and has become a non-resident taxpayer less than 5 years before the moment of the disposal of the common shares.

Resident shareholders of Luxembourg fully taxable

Tax on dividends

Holders of common shares resident in Luxembourg or non-resident holders of common shares, who have a permanent establishment in Luxembourg with whom the holding of the
common shares is connected, must for income tax purposes include any dividend received in their taxable income.

Tax on capital gains

Capital gains realised upon a disposal of common shares by a Luxembourg resident individual shareholder are not subject to taxation in Luxembourg, unless the
transfer occurs less than 6 months after the acquisition of common shares or, the transfer occurs more than 6 months after the acquisition of common shares or the shareholder has held more than 10.0% of our share capital at any time during the five
preceding years. Capital gains realized upon the sale of common shares by a fully taxable Luxembourg resident company, or a foreign entity which has a Luxembourg permanent establishment, are fully taxable in Luxembourg.

Net wealth tax

Luxembourg net wealth tax will be levied on a
holder of the common shares if the common shares are attributable to an enterprise or part thereof which is carried on by a Luxembourg resident company or through a permanent establishment in Luxembourg of a non-resident company.

Residents of Luxembourg who enjoy a special tax regime in Luxembourg

Dividends distributed by us to, or capital gains realised upon the sale of common shares by, the following entities are tax exempt in Luxembourg: holding companies subject to the now abrogated law of July 31, 1929 for a transitory
period until December 31, 2010, undertakings for collective







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|investment subject to the law of December 20, 2002 or to the law of February 13, 2007, investment companies in risk capital subject to
the law of June 15, 2004, private portfolio management companies subject to the law of May 11, 2007. The same entities as well as securitisation vehicles subject to the law of March 22, 2004 are not subject to net wealth tax for the
holding of common shares.  Other taxes There is no Luxembourg registration tax, stamp duty or any other similar tax or duty payable in Luxembourg by a holder of the common shares as a consequence of the
issuance of the common shares, nor will any of these taxes be payable as a consequence of a subsequent transfer or repurchase of the common shares.  No gift, estate or inheritance taxes are levied on the transfer of the common shares upon the death of a holder of the common shares in cases where the deceased was
not a resident of Luxembourg for inheritance tax purposes.  By issuing shares, we do
not carry on an activity falling into the scope of application of the Luxembourg VAT Law and do not become a Valued Added Tax (VAT) payer. Luxembourg VAT may however be payable in respect of fees charged for certain services rendered to
us if, for Luxembourg VAT purposes, such services are rendered or are deemed to be rendered in Luxembourg and an exemption from Luxembourg VAT does not apply with respect to such services.  US federal income taxation The following summary describes the principal US federal income tax consequences relating to the acquisition, holding and disposition of the common shares or ADSs. This summary addresses only the US federal income
tax considerations of holders that will hold common shares or ADSs as capital assets. This summary does not address tax considerations applicable to holders that may be subject to special tax rules, including:  certain financial institutions, insurance
companies, real estate investment trusts, regulated investment companies, grantor trusts, dealers or traders in securities or currencies, tax-exempt entities;  individual retirement accounts and other tax-deferred accounts;  taxpayers that have elected to use mark-to-market
accounting;  persons that received
common shares or ADSs as compensation for the performance of services;  persons that will hold common shares or ADSs as part of a hedging or conversion transaction or as a position in a straddle for US federal income tax purposes;  certain former citizens or long-term residents of
the United States;  persons that have
a functional currency other than the US dollar; or  holders that own, or are deemed to own, 10% or more, by voting power or value, of the equity of Acergy for US federal income tax purposes.  Moreover, this description does not address the US federal estate and gift tax or alternative
minimum tax consequences, nor any state, local or non-US tax consequences of the acquisition, holding or disposition of the common shares or ADSs. Each prospective purchaser should consult its tax advisor with respect to the US federal, state, local
and foreign tax consequences of acquiring, holding and disposing of common shares or ADSs.  This summary is based on the Internal Revenue Code of 1986, as amended (the Code), existing, proposed and temporary US Treasury Regulations and judicial and administrative interpretations thereof, in each case as in effect and
available on the date hereof. This description is also based in part on the representations of the depositary and the assumption that each obligation in the deposit agreement and any related agreement will be performed in accordance with its terms.
All of the foregoing are subject to change (possibly with retroactive effect) and differing interpretations which could affect the tax consequences described herein.  For purposes of this summary, a US Holder is a beneficial owner of common shares or ADSs that, for US federal income tax purposes is:  an individual citizen or resident of the United
States;  a corporation, or an entity
treated as a corporation, created or organized in or under the laws of the United States, any state thereof or the District of Columbia;  an estate the income of which is subject to US federal income taxation regardless of its source; or |  | LOGO





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| |  | a trust if such trust validly elects to be treated as a US person for US federal income tax purposes or if (1) a court within the United States is able to
exercise primary supervision over its administration and (2) one or more US persons have the authority to control all of the substantial decisions of such trust.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A Non-US Holder is a beneficial owner of common shares or ADSs that is neither a US Holder nor a partnership (or other entity treated as a partnership for US federal income tax purposes).

If a partnership (or any other entity treated as a partnership for US federal income tax purposes) is a beneficial owner of common shares or ADSs, the tax treatment
of such partnership, or a partner in such partnership, will generally depend on the status of the partner and on the activities of the partnership. If you are a partnership or a partner in a partnership that holds common shares or ADSs, you should
consult your tax advisor.

We urge you to consult your tax advisor with respect to the US federal, state, local and foreign tax consequences of
acquiring, holding and disposing of common shares or ADSs.

Ownership of ADSs in general

For US federal income tax purposes, a holder of ADSs generally will be treated as the owner of the common shares represented by such ADSs.

The US Treasury Department has expressed concern that depositaries for ADRs, or other intermediaries between the holders of shares of an issuer and the issuer, may be
taking actions that are inconsistent with the claiming of US foreign tax credits by US holders of such receipts or shares. Accordingly, the analysis regarding the availability of a US foreign tax credit for Luxembourg taxes and sourcing rules
described below could be affected by future actions that may be taken by the US Treasury Department.

Distributions

Subject to the discussion below under Passive Foreign Investment Company Considerations, , if you are a US Holder, for US federal income tax purposes, the
gross amount of any distribution made to you with respect to common shares or ADSs, (other than certain distributions, if any, of additional common shares distributed pro rata to all our shareholders, including holders of ADSs, with respect to
common shares or ADSs) will be includible in your income on the day on which the distributions are actually or constructively received by you (which in the case of ADSs will be the date such distribution is received by the depositary) as dividend
income to the extent such distributions are paid out of our current or accumulated earnings and profits as determined under US federal income tax principles. If a US Holder receives a dividend in a foreign currency (i.e., a currency other than the
US dollar), any such dividend will be included in such holders gross income in an amount equal to the US dollar value of such foreign currency on the date of receipt, which, in the case of ADSs, is the date they are received by the depositary.
If the dividend is converted into US dollars on the date of receipt, a US Holder generally should not be required to recognise foreign currency gain or loss in respect of the dividend income. A US Holder may have foreign currency gain or loss if the
amount of such dividend is not converted into US dollars on the date of receipt. Such dividends will not be eligible for the dividends received deduction generally allowed to corporate US Holders. Non-corporate US Holders generally will be taxed on
such distributions at the lower rates applicable to long-term capital gains (i.e., gains from the sale of capital assets held for more than one year) with respect to taxable years beginning on or before December 31, 2010. However, a US
Holders eligibility for such preferential rate would be subject to certain holding period requirements and the non-existence of certain risk reduction transactions with respect to the common shares or ADSs. Additionally, even if we otherwise
were to meet the conditions for reduced rates of taxation on dividends, non-corporate US Holders still will not be entitled to such reduced rates of taxation if we are a passive foreign investment company in the taxable year such dividends are paid
or in the preceding taxable year (see discussion under Passive Foreign Investment Company Considerations below).

Subject to the discussion
below under Passive Foreign Investment Company Considerations to the extent, if any, that the amount of any distribution exceeds our current and accumulated earnings and profits as determined under US federal income tax principles, it
will be treated first as a tax-free return of capital, causing a reduction in the adjusted basis of common shares or ADSs (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognised by you on a subsequent disposition
of common shares or ADSs), and the balance in excess of adjusted basis will be taxed as capital gain recognised on a sale or exchange (as discussed below under Sale or exchange of common shares or ADSs). We do not maintain calculations
of our earnings and profits under US federal income tax principles, and therefore a US Holder should expect that the entire amount of a distribution will generally be reported as dividend income to such US Holder.

If you are a US Holder, dividend income received by you with respect to common shares or ADSs will be treated as foreign source income, which may be relevant in
calculating your foreign tax credit limitation. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific baskets of income. For this purpose, dividend income should generally constitute passive
category income, or in the case of certain US Holders, general category income. Further, in certain circumstances, if you have held common shares or ADSs for less than a specified minimum period during which you are not protected
from risk of loss; or are obligated to make payments related to the dividends, you will not be allowed a foreign tax credit for foreign taxes imposed on dividend income with respect to common shares and ADSs. The rules governing the foreign tax
credit are complex. You are urged to consult your tax advisor regarding the availability of the foreign tax credit under your particular circumstances.

Subject to the discussion below under Backup Withholding Tax and Information Reporting Requirements, if you are a Non-US Holder of common shares or ADSs, you generally will not be subject to US federal income or withholding tax
on dividends received on common shares or ADSs, unless such income is effectively connected with your conduct of a trade or business in the United States.







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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             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|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|  | ----
|Sale or exchange of common shares or ADSs Deposits and withdrawals of common shares by holders in exchange for ADSs will not result in the realisation of gain or loss for US federal income tax purposes.  Subject to the discussion below under Passive Foreign Investment Company
Considerations, if you are a US Holder, you generally will recognise gain or loss on the sale or exchange of common shares or ADSs equal to the difference between the amount realised on such sale or exchange and your adjusted tax basis in the
common shares or ADSs. Subject to the discussion below under Passive Foreign Investment Company Considerations, such gain or loss will be capital gain or loss. If you are a non-corporate US Holder, the maximum marginal US federal income
tax rate applicable to such gain will be lower than the maximum marginal US federal income tax rate applicable to ordinary income (other than certain dividends) if your holding period for such common shares or ADSs exceeds one year (i.e., it is a
long-term capital gain). If you are a US Holder, gain or loss, if any, recognised by you generally will be treated as US source gain or loss, as the case may be, for US foreign tax credit purposes. The deductibility of capital losses is subject to
limitations.  If you are a US Holder, the initial tax basis of your common shares
will be the US dollar value of the Norwegian krone denominated purchase price determined on the date of purchase. If the common shares are treated as traded on an established securities market, and you are a cash basis US Holder (or, if
you elect, an accrual basis US Holder), you will determine the US dollar value of the cost of such common shares by translating the amount paid at the spot rate of exchange on the settlement date of the purchase. The conversion of US dollars to
Norwegian krone and the immediate use of that currency to purchase common shares generally will not result in taxable gain or loss for a US Holder. If you are a US Holder, the initial tax basis of your ADSs will be the US dollar denominated purchase
price determined on the date of purchase.  With respect to the sale or exchange of
common shares or ADSs, the amount realised generally will be the US dollar value of the payment received determined on (1) the date of receipt of payment in the case of a cash basis US Holder and (2) the date of disposition in the case of an accrual
basis US Holder. If the common shares or ADSs are treated as traded on an established securities market, a cash basis taxpayer, (or, if it elects, an accrual basis taxpayer) will determine the US dollar value of the amount realised by
translating the amount received at the spot rate of exchange on the settlement date of the sale.  Subject to the discussion below under Backup Withholding Tax and Information Reporting Requirements, if you are a Non-US Holder, you generally will not be subject to US federal income or withholding tax
on any gain realised on the sale or exchange of such common shares or ADSs unless (1) such gain is effectively connected with your conduct of a trade or business in the United States or (2) if you are an individual Non-US Holder, you are present in
the United States for 183 days or more in the taxable year of the sale or exchange and certain other conditions are met.  Passive Foreign Investment Company considerations A non-US
corporation will be classified as a passive foreign investment company, or a PFIC, for US federal income tax purposes in any taxable year in which, after applying certain look-through rules, either:  at least 75 percent of its gross income is
passive income; or  at
least 50 percent of the average value of its gross assets is attributable to assets that produce passive income or are held for the production of passive income.  Passive income for this purpose generally includes dividends, interest, royalties, rents and
gains from commodities and securities transactions. In determining whether we are a PFIC, a pro rata portion of the income and assets of each subsidiary in which we own, directly or indirectly, at least a 25% interest (by value) is taken into
account.  Based in part on estimates of our gross income and the value of our gross
assets and the nature of our business, we believe that we will not be classified as a PFIC for our current taxable year. Our status in future years will depend on our assets and activities in those years. We have no reason to believe that our assets
or activities will change in a manner that would cause us to be classified as a PFIC, but there can be no assurance that we will not be considered a PFIC for any taxable year. If we are or become a PFIC, and you are a US Holder, you generally would
be subject to imputed interest charges and other disadvantageous tax treatment (including the denial of the taxation of such dividends at the lower rates applicable to long-term capital gains, as discussed above under Distributions) with
respect to any gain from the sale or exchange of, and certain distributions with respect to, your common shares or ADSs.  If we are or become a PFIC, you could make a variety of elections that may alleviate certain tax consequences referred to above, and one of these elections may be made
retroactively. However, we do not expect that the conditions necessary for making certain of such elections with respect to the common shares or ADSs will be met. You should consult your tax advisor regarding the tax consequences that would arise if
we are or become a PFIC.  Backup withholding tax and information reporting
requirements US backup withholding tax and information reporting requirements generally apply to certain payments to certain non-corporate holders.
Information reporting generally will apply to the distributions on, and to proceeds from the sale or redemption of, common shares or ADSs made within the United States, or by a US payor or US middleman to a holder of common shares or ADSs, other
than an exempt recipient, including a corporation, a payee that |  | LOGO





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is not a US person that provides an appropriate certification and certain other persons. A payor will be required
to withhold backup withholding tax from any distributions on, or the proceeds from the sale or redemption of, common shares or ADSs within the United States, or by a US payor or US middleman to a holder, other than an exempt recipient, if such
holder fails to furnish its correct taxpayer identification number or otherwise fails to comply with, or establish an exemption from, such backup withholding tax requirements. The backup withholding tax rate is 28% for years through 2010.

Backup withholding is not an additional tax. If you are a US Holder, you generally may obtain a refund of any amounts withheld under the backup
withholding rules that exceed your US federal income tax liability by filing a refund claim with the Internal Revenue Service. You will be entitled to credit any amounts withheld under the backup withholding rules against your US federal income tax
liability provided that you furnish the required information to the Internal Revenue Service in a timely manner.

The above summary is not intended to
constitute a complete analysis of all US federal income tax consequences relating to the acquisition, holding and disposition of common shares or ADSs. We urge you to consult your tax advisor concerning the tax consequences of your particular
situation.

Trading markets

Our common shares
trade in the form of an American Depository Shares (ADS) in the United States on NASDAQ Global Select Market under the symbol ACGY and are listed in Norway on Oslo Børs under the symbol ACY.

The following table sets forth the high and low last reported prices on NASDAQ Global Select Market and the prices for our common shares reported on Oslo Børs
during the indicated periods.



|                                        |  |                                 |  |       |  |                        |  |        |  |       
|--------------------------------------- |  | ------------------------------- |  | ----- |  | ---------------------- |  | ------ |  | ------
|                                        |  | ADSs NASDAQ GlobalSelect Market |  |       |  | Common sharesOslo Børs
|                                        |  | High                            |  | Low   |  |                        |  | High   |  | Low   
|                                        |  | ($)                             |  |       |  | (NOK)                 
|Annual highs and lows (fiscal years)    |  |                                 |  |       |  |                        |  |        |  |       
|2005                                    |  | 13.20                           |  | 5.30  |  |                        |  | 82.25  |  | 33.10 
|2006                                    |  | 20.50                           |  | 10.76 |  |                        |  | 131.00 |  | 70.25 
|2007                                    |  | 30.66                           |  | 17.01 |  |                        |  | 170.25 |  | 110.50
|2008                                    |  | 28.07                           |  | 3.78  |  |                        |  | 140.00 |  | 25.60 
|2009                                    |  | 15.18                           |  | 4.33  |  |                        |  | 85.45  |  | 31.75 
|                                        |  |                                 |  |       | 
|Quarterly highs and lows                |  |                                 |  |       |  |                        |  |        |  |       
|Fiscal year 2008                        |  |                                 |  |       |  |                        |  |        |  |       
|First quarter                           |  | 23.61                           |  | 17.40 |  |                        |  | 125.25 |  | 94.00 
|Second quarter                          |  | 28.07                           |  | 19.37 |  |                        |  | 140.00 |  | 104.00
|Third quarter                           |  | 26.02                           |  | 15.73 |  |                        |  | 133.00 |  | 81.90 
|Fourth quarter                          |  | 15.47                           |  | 3.78  |  |                        |  | 88.70  |  | 25.60 
|Fiscal year 2009                        |  |                                 |  |       |  |                        |  |        |  |       
|First quarter                           |  | 6.77                            |  | 4.72  |  |                        |  | 46.90  |  | 33.45 
|Second quarter                          |  | 10.34                           |  | 4.33  |  |                        |  | 63.50  |  | 31.75 
|Third quarter                           |  | 11.39                           |  | 8.64  |  |                        |  | 71.70  |  | 57.00 
|Fourth quarter                          |  | 15.18                           |  | 9.61  |  |                        |  | 85.45  |  | 59.00 
|                                        |  |                                 |  |       | 
|Monthly highs and lows fiscal year 2009 |  |                                 |  |       |  |                        |  |        |  |       
|August 2009                             |  | 11.18                           |  | 9.86  |  |                        |  | 67.00  |  | 60.50 
|September 2009                          |  | 12.63                           |  | 9.61  |  |                        |  | 72.75  |  | 59.00 
|October 2009                            |  | 14.22                           |  | 11.83 |  |                        |  | 79.55  |  | 68.55 
|November 2009                           |  | 15.18                           |  | 12.55 |  |                        |  | 85.45  |  | 72.00 
|Monthly highs and lows fiscal year 2010 |  |                                 |  |       |  |                        |  |        |  |       
|December 2009                           |  | 15.69                           |  | 14.88 |  |                        |  | 91.65  |  | 85.60 
|January 2010                            |  | 16.95                           |  | 14.99 |  |                        |  | 95.40  |  | 88.25 

The bid
prices reported for these periods reflect inter-dealer prices, rounded to the nearest cent, and do not include retail mark-ups, markdowns or commissions, and may not represent actual transactions.







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|On January 29, 2010 the last reported sale price of our ADSs on NASDAQ Global Select Market was $15.16 per ADS and the closing
price of our common shares on Oslo Børs was NOK91.40 per share.  Major
shareholders Except as set forth below, we are not, directly or indirectly, owned or controlled by another corporation or by any government. There
are no arrangements known to us, the operation of which may at a subsequent date result in a change in control of Acergy.  The information on major shareholdings is compiled from publicly available information and data provided by third parties and accordingly we are not able to confirm
the accuracy of this information (other than with respect to Acergys ownership). We are not able to determine the number of record holders in Luxembourg or the number of common shares held in Luxembourg. The numbers provided were compiled from
publicly available information filed with the SEC and returns filed with Verdipapirsentralen (VPS), the Norwegian Central Securities Depository, as of January 29, 2010.  Set forth below is information concerning the share ownership of all persons who beneficially
owned 5.0% or more of the common share equivalents, as of January 29, 2010. The shareholders listed below do not possess voting rights that differ from any other shareholder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | LOGO                        
|Name of beneficial owner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | Number of common sharesowned |  | Percentage ofcommonshares owned | 
|Holdings as of January 29, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                              |  |                                 | 
|State Street Bank(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 20,513,276                   |  | 10.52%                          | 
|Folketrygdfondet                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 19,570,200                   |  | 10.04%                          | 
|JP Morgan Chase Bank                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 17,360,683                   |  | 8.91%                           | 
|Acergy S.A and Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 10,817,381                   |  | 5.55%                           | 
|Holdings as of February 28, 2009(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                              |  |                                 | 
|State Street Bank(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 31,695,873                   |  | 16.26%                          | 
|Folketrygdfondet                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 12,338,200                   |  | 6.33%                           | 
|Acergy S.A and Subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 12,103,629                   |  | 6.21%                           | 
|Holdings as of February 29, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                              |  |                                 | 
|State Street Bank(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 15,118,768                   |  | 7.76%                           | 
|FMR Corporation(c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 11,319,355                   |  | 6.02%                           | 
|Folketrygdfondet                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | 10,339,000                   |  | 5.30%                           | 
|(a)  State
Street Bank acts as custodian to multiple beneficial owners. In accordance with Article 33(a) of our Articles of Incorporation, it is our understanding that no single US owner represents more than 9.9% of outstanding shares.  (b)  As of February 28, 2009 Acergy S.A.
has been notified that the following shareholders own 5.0% or more: Wellington Management Co. LLP (9.83%) and Capital World Investors (8.22%). Wellington Management has indicated to Acergy that it is authorised to vote for 9,928,550 shares (the
aggregate number held by Wellingtons clients), but that no single client of Wellington owns more than 5%. Both these holdings are not directly observable on Verdipapirsentralen (VPS), the Norwegian Central Securities Depository,
and have thus not been included in the table above.  (c)  Based upon information filed with the SEC on Schedule 13G/A on February 14, 2008. According to this filing, shares held by FMR Corp. were beneficially owned by Fidelity Management & Research Company (a wholly
owned subsidiary of FMR Corp.), Pyramis Global Advisors, LLC (an indirect wholly owned subsidiary of FMR Corp.), Pyramis Global Advisors Trust Company (an indirect wholly owned subsidiary of FMR Corp.), and Fidelity International Limited. Edward C.
Johnson 3d (Chairman of FMR Corp.) and members of his family own shares representing 49% of the voting power of FMR Corp. FMR Corp. subsequently filed a Schedule 13G/A on August 11, 2008, indicating it was no longer a beneficial owner of more
than 5% of our common shares.  As of January 29, 2010, all of our 194,953,972
common shares were registered in the VPS, in the names of 3,931 shareholders. Excluding outstanding common shares registered in the name of Deutsche Bank Trust Company Americas as depositary for the ADS, it is estimated that the free float of common
shares on Oslo Børs was 164,617,411 as of January 29, 2010.  At the
close of business on January 29, 2010, 183,291,776 common shares, including those held through ADS, were held by approximately 65 holders (including American Depositary Receipt (ADR) holders) with registered addresses in the United
States, representing approximately 32% of the outstanding common shares or common share equivalents (excluding treasury shares). At such date, 30,336,561 ADS were held by 40 registered ADR holders. Since certain of such common shares and ADS are
held by nominees, the number of holders may not be representative of the number of beneficial owners in the United States or the common shares held by them. | 





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176





Financial Review and Statements:

Additional Information continued



Documents on display

We are subject to the informational requirements of the Exchange Act applicable to foreign private issuers and, in accordance with these requirements, we file reports with the SEC. As a foreign private issuer, we
are exempt from the rules under the Exchange Act relating to the furnishing and content of proxy statements, and our officers, Directors and principal shareholders are exempt from the reporting and short swing profit recovery provisions contained in
Section 16 of the Exchange Act. In addition, we are not required under the Exchange Act to file periodic reports and financial statements with the Securities and Exchange Commission as frequently or as promptly as US companies whose securities
are registered under the Exchange Act.

You may read and copy any documents that we file with the SEC, including this Report and the related exhibits,
without charge at the U.S. Securities and Exchange Commissions public reference room at 100 F Street, N.E., Washington, D.C. 20549-2736. You may also obtain copies of the documents at prescribed rates by writing to the public reference room of
the Commission at 100 F Street, N.E., Washington, D.C. 20549-2736. Please call the Commission at (202) 551-8090 for further information on the public reference room. In addition, the documents incorporated by reference into this Report are
publicly available through the web site maintained by the Securities and Exchange Commission at www.sec.gov.

Documents concerning Acergy that are
referred to in this Report may be inspected at our principal executive offices, c/o Acergy M.S. Limited, 200 Hammersmith Road, Hammersmith, London, W6 7DL England, UK.

Key Investor Information and Contacts

Investor relations

This section provides an outline of the Groups communication strategy towards shareholders, contact details for the Investor Relations team, Transfer Agents,
Registrars and Depositary Bank.

Acergy S.A. is a Company registered in Luxembourg whose stock trades on the NASDAQ and Oslo Stock Exchanges, with its
Principal Executive Office c/o Acergy M.S. Limited, based in London. The Group reports quarterly in accordance with International Financial Reporting Standards.

Acergys Senior Management devotes a considerable amount of their time to communication with shareholders and analysts by means of quarterly earnings reports and associated presentations and conference calls. A playback facility for
conference calls is available for seven days after each call and a conference call transcript is published on the Groups website.

Roadshows, by
the Chief Executive Officer and Chief Financial Officer in Europe and the United States, take place twice a year, immediately after the full year results are published in February and again in September or October. The Investor Relations team is
available to meet investors and those who may become investors at any time either in London or elsewhere as necessary.

The Group has four nominated
people who manage the dissemination of price sensitive information. These are Jean Cahuzac (Chief Executive Officer), Simon Crowe (Chief Financial Officer), Bruno Chabas (Chief Operating Officer), Karen Menzel (Group Manager, Investor Relations).
Requests for meetings with Senior Management, questions concerning Group performance or other issues should be made directly through Investor Relations.

The Groups website can be accessed at www.acergy-group.com. The Investor Centre provides comprehensive information for investors including financial reports, news and disclosures, analyst coverage and stock price information. An
e-mail alert service is provided which notifies those who elect to use this service to new information posted on this site.

Visit our online Annual
Report at:

www.acergy-group.com/public/financialreports

Geographical distribution of shareholders as at December 31, 2009

|                  |  |    |  
|----------------- |  | -- | -
|Norway            |  | 36 | %
|United States     |  | 26 | %
|United Kingdom    |  | 10 | %
|Sweden            |  | 7  | %
|Germany           |  | 3  | %
|Rest of the World |  | 18 | %

Source: Capital Precision







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------- |  |  | ----
|Investor Relations and press enquiries Shareholders, securities analysts, portfolio managers, representatives of financial institutions and the press may contact:  Karen Menzel Group Manager, Investor Relations e-mail: karen.menzel@acergy-group.com  Acergy S.A. c/o Acergy M.S. Limited 200 Hammersmith Road London W6 7DL, United Kingdom T: +44 (0) 20 8210 5568  Financial information Copies of press releases, quarterly earnings releases, Annual Reports and SEC Form 20-F
are available on the Groups internet site or by contacting:  Karen
Menzel Group Manager, Investor Relations e-mail:
karen.menzel@acergy-group.com  Acergy S.A. c/o Acergy M.S. Limited 200 Hammersmith Road London W6 7DL, United Kingdom T: +44 (0) 20 8210 5500
 Stock listings Common shares  Traded on Oslo Stock Exchange under symbol ACY and on NASDAQ Stock Exchange as an American Depositary Receipt (ADR) under symbol ACGY.  DnB NOR Bank ASA Standen 21 NO-0021 Oslo Norway T: +47 22 48 12 17 F: +47 22 94 90 20  Acergy has a sponsored Level II ADR facility for which Deutsche Bank Trust Company
Americas acts as Depositary. Each ADR represents one (1) ordinary share of the Company. The ADRs are quoted and traded on NASDAQ under the ticker symbol ACGY. For enquiries, beneficial ADR holders may contact the Deutsche Bank Trust Company Americas
Broker Service  Registered ADR holders may contact the shareholder
services:  Deutsche Bank Trust Company Americas 27thFloor 60 Wall Street New York, NY 10005 Shareholder Service: + 1 866 249 2593 (toll free for U.S. residents only) Broker Service Desk: +44 207 547 6500 or +1
212 250 9100  Further information is also available at
http://www.adr.db.com |  |                                                                                                                           |                                                                      | Country of incorporation Luxembourg  Financial Calendar Acergy S.A. intentions to publish its quarterly financial results for 2010 on the following dates: |                                                            |  |  | LOGO
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Results Q3 2010 Results Q4 & FY 2010
Results |                                                                                                                                                            | April 14, 2010July 14, 2010 October 13, 2010 February 2011 | 
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2010 SGG S.A. 412F, route dEsch, L-2086 Luxembourg  Internet address www.acergy-group.com |                                                                      |                                                                                                                                                            |                                                           
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Additional Information:

Cross-reference to Form 20-F



This Annual Report contains information for the Companys Annual Report on Form 20-F for
2009 filed with the SEC. The cross-reference table below indicates where each item of Form 20-F is included in this Annual Report. No other information in this document is to be included in the 2009 Form 20-F or incorporated by reference into any
filing by the Company under the Securities Act.



|     |  |                                                       |  |                                                                                                                                                                                       |  |          
|---- |  | ----------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------
|Item |  | Description                                           |  | Location                                                                                                                                                                              |  | Page     
|1    |  | Identity Of Directors, Senior Management and Advisers |  | Not Applicable                                                                                                                                                                        |  | N/A      
|2    |  | Offer Statistics and Expected Timetable               |  | Not Applicable                                                                                                                                                                        |  | N/A      
|3    |  | Key Information                                       |  |                                                                                                                                                                                       |  |          
|     |  | 3A Selected Financial Data                            |  | Selected Financial Data                                                                                                                                                               |  | 155-157  
|     |  | 3B Capitalisation and indebtedness                    |  | Not Applicable                                                                                                                                                                        |  | N/A      
|     |  | 3C Reasons for the offer and use of proceeds          |  | Not Applicable                                                                                                                                                                        |  | N/A      
|     |  | 3D Risk Factors                                       |  | Risk Factors                                                                                                                                                                          |  | 43-45    
|4    |  | Information on the Company                            |  |                                                                                                                                                                                       |  |          
|     |  | 4A History and development of the Company             |  | Organisation and register/ History and development of Acergy/                                                                                                                         |  | 164, 165 
|     |  |                                                       |  | Investment and capital expenditure/ Divestitures                                                                                                                                      |  | 77-78    
|     |  | 4B Business Overview                                  |  | Risk and insurance/ Government regulations/ Supplies and raw materials/ Marketing/ Clients/ Competition/ Health, safety, environmental and security management/ Intellectual
property |  | 158-163  
|     |  |                                                       |  | Overview/ Service Capabilities                                                                                                                                                        |  | 164      
|     |  |                                                       |  | Seasonality/ Business segments results                                                                                                                                               |  | 71, 78-86
|     |  | 4C Organisational Structure                           |  | Significant subsidiaries                                                                                                                                                              |  | 158      
|     |  | 4D Property, plants and equipment                     |  | Description of property                                                                                                                                                               |  | 161-163  
|4A   |  | Unresolved Staff Comments                             |  | Not Applicable                                                                                                                                                                        |  | N/A      
|5    |  | Operating and Financial Review and Prospects          |  |                                                                                                                                                                                       |  |          
|     |  | 5A Operating Results                                  |  | Financial Review                                                                                                                                                                      |  | 68-91    
|     |  | 5B Liquidity and capital resources                    |  | Liquidity and capital resources                                                                                                                                                       |  | 86-89    
|     |  | 5C Research and development, patents and licenses etc |  | Intellectual property                                                                                                                                                                 |  | 161      
|     |  | 5D Trend information                                  |  | Outlook                                                                                                                                                                               |  | 70       
|     |  |                                                       |  | Factors Affecting the Business Results                                                                                                                                                |  | 71-73    
|     |  | 5E Off-balance sheet arrangements                     |  | Off balance sheet arrangements                                                                                                                                                        |  | 88-90    
|     |  | 5F Tabular disclosure of contractual obligations      |  | Contractual obligations                                                                                                                                                               |  | 90       
|     |  | 5G Safe harbour                                       |  | Special Note Regarding Forward Looking Statements                                                                                                                                     |  | 154-155  
|6    |  | Directors, Senior Management and Employees            |  |                                                                                                                                                                                       |  |          
|     |  | 6A Directors and senior management                    |  | Board of Directors/ Corporate Management Team                                                                                                                                         |  | 48-51    
|     |  | 6B Compensation                                       |  | Remuneration Report                                                                                                                                                                   |  | 61-65    
|     |  | 6C Board practice                                     |  | The Board/ Audit Committee Report/                                                                                                                                                    |  | 53-57    
|     |  |                                                       |  | Governance and Nomination Committee Report/                                                                                                                                           |  | 58       
|     |  |                                                       |  | Compensation Committee Report                                                                                                                                                         |  | 59       
|     |  |                                                       |  | Board of Directors/ Corporate Management Team                                                                                                                                         |  | 48-51    
|     |  | 6D Employees                                          |  | Employees                                                                                                                                                                             |  | 159      
|     |  | 6E Share Ownership                                    |  | Directors Interests                                                                                                                                                                  |  | 54       
|     |  |                                                       |  | Share ownership of Corporate Management Team                                                                                                                                          |  | 64       
|7    |  | Major Shareholders and Related Party Transactions     |  |                                                                                                                                                                                       |  |          
|     |  | 7A Major Shareholders                                 |  | Major shareholders                                                                                                                                                                    |  | 175      
|     |  | 7B Related Party transactions                         |  | Note 17  Interest in associates and joint ventures/                                                                                                                                  |  | 122-124  
|     |  |                                                       |  | Note 38  Related party transactions                                                                                                                                                  |  | 145      
|     |  | 7C Interests of experts and counsel                   |  | Not Applicable                                                                                                                                                                        |  | N/A      







|       |  |                                            
|------ |  | -------------------------------------------
|Acergy |  | Annual Report and Financial Statements 2009



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|     |  |                                                                              |  |                                                             |  |              |  |     
|---- |  | ---------------------------------------------------------------------------- |  | ----------------------------------------------------------- |  | ------------ |  | ----
|Item |  | Description                                                                  |  | Location                                                    |  | Page         |  | LOGO
|8    |  | Financial Information                                                        |  |                                                             |  |              | 
|     |  | 8A Consolidated Statements and other Financial Information                   |  | See Item 18  Financial Statements/                         |  |              | 
|     |  |                                                                              |  | Legal matters/                                              |  | 91           | 
|     |  |                                                                              |  | Note 12  Taxation/                                         |  | 114-117      | 
|     |  |                                                                              |  | Dividend policy                                             |  | 55-56        | 
|     |  | 8B Significant changes                                                       |  | Note 43  Post balance sheet events                         |  | 152          | 
|9    |  | The Offer and listing                                                        |  |                                                             |  |              | 
|     |  | 9A Offer and listing details                                                 |  | Trading markets                                             |  | 174-175      | 
|     |  | 9B Plan of distribution                                                      |  | Not Applicable                                              |  | N/A          | 
|     |  | 9C Markets                                                                   |  | Trading markets                                             |  | 174-175      | 
|     |  | 9D Selling shareholders                                                      |  | Not Applicable                                              |  | N/A          | 
|     |  | 9E Dilution                                                                  |  | Not Applicable                                              |  | N/A          | 
|     |  | 9F Expenses of the issue                                                     |  | Not Applicable                                              |  | N/A          | 
|10   |  | Additional Information                                                       |  |                                                             |  |              | 
|     |  | 10A Share capital                                                            |  | Not Applicable                                              |  | N/A          | 
|     |  | 10B Memorandum and articles of association                                   |  | Organisation and register/ Articles of Incorporation        |  | 164, 166-169 | 
|     |  | 10C Material Contracts                                                       |  | Risk Factors/                                               |  | 44-45        | 
|     |  |                                                                              |  | Description of Indebtedness                                 |  | 88           | 
|     |  | 10D Exchange Controls                                                        |  | Articles of Incorporation                                   |  | 166-169      | 
|     |  | 10E Taxation                                                                 |  | Taxation                                                    |  | 169-174      | 
|     |  | 10F Dividends and paying agents                                              |  | Not Applicable                                              |  | N/A          | 
|     |  | 10G Statement by experts                                                     |  | Not Applicable                                              |  | N/A          | 
|     |  | 10H Documents on display                                                     |  | Documents on display                                        |  | 176          | 
|     |  | 10I Subsidiary Information                                                   |  | Not Applicable                                              |  | N/A          | 
|11   |  | Quantitative and qualitative disclosure about market risk                    |  | Note 37  Financial instruments                             |  | 137-144      | 
|12   |  | Description of securities other than equity securities                       |  | Not Applicable                                              |  | N/A          | 
|13   |  | Defaults, dividend arrearages and delinquencies                              |  | None                                                        |  |             | 
|14   |  | Material modifications to the rights of security holders and use of proceeds |  | None                                                        |  |             | 
|15   |  | Controls and Procedures                                                      |  | Internal Controls/                                          |  | 43           | 
|     |  |                                                                              |  | Management Report on Internal Controls/                     |  | 181          | 
|     |  |                                                                              |  | Attestation Report of the Registered Public Accounting Firm |  | 93           | 
|16   |  | Reserved                                                                     |  |                                                             |  |              | 
|     |  | 16A Audit committee financial experts                                        |  | Audit Committee Report                                      |  | 57           | 
|     |  | 16B Code of ethics                                                           |  | Ethics and Integrity                                        |  | 56           | 
|     |  | 16C Principal Accountant Fees and Services                                   |  | Note 8  Auditors remuneration                             |  | 113          | 
|     |  | 16D Exemptions from listing standards for audit Committees                   |  | Not Applicable                                              |  | N/A          | 
|     |  | 16E Purchases of equity securities by the issuer and                         |  | Note 27  Own shares                                        |  | 129          | 
|     |  | affiliated purchasers                                                        |  |                                                             |  |              | 
|     |  | 16F Change in registrants certifying accountant                             |  | Not Applicable                                              |  | N/A          | 
|     |  | 16G Corporate governance                                                     |  | Not Applicable                                              |  | N/A          | 
|17   |  | Financial Statements                                                         |  | See Item 18                                                 |  | N/A          | 
|18   |  | Financial Statements                                                         |  | Consolidated Financial Statements/                          |  | 94-152       | 
|     |  |                                                                              |  | Report of Independent Registered Accounting Firm            |  | 92-93        | 
|19   |  | Exhibits                                                                     |  |                                                             |  | 181          | 





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SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.



ACERGY S.A.By:

/s/ Sir Peter MasonName: Sir Peter Mason Title: Chairman of the BoardBy:

/s/ Simon CroweName: Simon Crowe Title: Chief Financial Officer


Date: February 24, 2010



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Exhibits



|     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.1  |  | Amended Articles of Incorporation of Acergy S.A., dated as of February 16, 2010. Incorporated by reference to Exhibit 1.1 to the Registrants Form 6-K, filed with the Securities and
Exchange Commission on February 17, 2010.                                                                                                                                                                                                                                                               
|     | 
|2.2  |  | Form of Supplemental Agreement to Deposit Agreement by and among the Registrant, Deutsche Bank Trust Company Americas, as successor depositary, and all holders and beneficial owners from time
to time of American Depositary Shares evidenced by American Depositary Receipts issued thereunder. Incorporated by reference to Exhibit 99.A2 to the Registrants Registration Statement on Form F-6 (File No. 333-123139) filed with the
Securities and Exchange Commission on March 4, 2005.
|     | 
|2.3  |  | Form of American Depositary Receipt (included in Exhibit 2.2).                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | 
|2.4  |  | Form of Indenture for the issuance of senior debt securities (including the form of senior debt securities). Incorporated by reference to Exhibit 4.2 of the Registrants
registration statement on Form F-3/A (Registration No. 333-86288), filed with the Securities and Exchange Commission on July 31, 2002.                                                                                                                                                                              
|     | 
|2.5  |  | Form of Indenture for the issuance of subordinated debt securities (including the form of subordinated debt securities). Incorporated by reference to Exhibit 4.3 of the Registrants
registration statement on Form F-3/A (Registration No. 333-86288), filed with the Securities and Exchange Commission on August 29, 2002.                                                                                                                                                                
|     | 
|2.6  |  | Trust Deed, dated as at October 11, 2006, by and among the Registrant and The Bank of New York. Incorporated by reference to Exhibit 2.6 to the Registrants Annual Report on Form
20-F (File No. 000-21742) filed with the Securities Exchange Commission on April 18, 2007.                                                                                                                                                                                                                 
|     | 
|4.1  |  | Amendment and Restatement Deed dated August 10, 2006. Incorporated by reference to Exhibit 99.1 of the Registrants Form 6-K, filed with the Securities and Exchange Commission
on August 22, 2006.                                                                                                                                                                                                                                                                                           
|     | 
|4.2  |  | US$200,000,000 Multicurrency Guarantee Facility Agreement among Acergy Treasury Limited (Borrower), Acergy S.A. (Guarantor), ING Bank N.V. (Agent) and DNB NOR BANK ASA (Issuing Bank), dated
February 26, 2008. Incorporated by reference to Exhibit 4.2 to the Registrants Annual Report on Form 20-F (File No. 000-21742) filed with the Securities Exchange Commission on May 30, 2008.                                                                                                  
|     | 
|8.1  |  | Significant subsidiaries as at the end of the year covered by this Report: see page 158 Significant Subsidiaries.                                                                                                                                                                                                                                                                                                                                                                           
|     | 
|9.1  |  | Consent of Deloitte LLP, Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                       
|     | 
|12.1 |  | Certification of the principal executive officer required by Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                     
|     | 
|12.2 |  | Certification of the principal financial officer required by Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                     
|     | 
|13.1 |  | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                       
|     | 
|13.2 |  | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                       
|     | 
|14.1 |  | Consent of Elvinger, Hoss & Prussen.                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | 
|15.1 |  | Managements Report on Internal Control over Financial Reporting.                                                                                                                                                                                                                                                                                                                                                                                                                             



|* | This document is being furnished in accordance with SEC Release Nos. 33-8212 and 34-47551.
|- | ------------------------------------------------------------------------------------------



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