T
he greatest official gas producer within the North Sea will current its outcomes subsequent week, with traders possible eager to know extra about its plans for the long run and the impacts of the windfall tax.
Harbour Energy has been complaining about its UK tax invoice for the reason that Government launched a particular cost for vitality corporations as costs soared following Russia’s full-scale assault on Ukraine.
The firm mentioned in March that its revenue had been “all but wiped out” by the windfall tax. But that was primarily based on writing off final 12 months’s revenue towards what the corporate expects to pay over the five-year interval of the tax, a transfer that introduced criticism on the time.
Harbour put aside 1.5 billion {dollars} (£1.2 billion), which it mentioned was to repay the tax in future years.
It then mentioned that the tax had worn out final 12 months’s revenue, regardless of paying solely 205 million {dollars} (£161 million) in further tax final 12 months on a revenue of round 2.5 billion {dollars} (£2 billion).
Watchers of the corporate will most likely be eager to understand how a lot of the anticipated tax invoice has really materialised within the final six months for the reason that finish of the earlier monetary 12 months. That may give them an concept of whether or not the 1.5 billion {dollars} will all be spent on the windfall tax.
In June, Harbour was boosted by the Government’s announcement that whereas the windfall tax would proceed till 2028, it could possibly be phased out if common oil and gasoline costs drop under 71.40 {dollars} a barrel or 54p per therm for 2 consecutive quarters in that interval.
Investors can even be eager to know extra about Harbour’s plans for the way forward for its non-UK operations, and whether or not bosses will say something extra in regards to the rumoured tie-up with an American rival.
Earlier this month, Harbour introduced it was exiting its operations in Vietnam . This implies that Harbour has solely a small quantity of manufacturing left outdoors the UK, analysts mentioned on the time.
But Harbour can also be investing rather a lot in future alternatives overseas, together with a 3 billion greenback growth in Indonesia . This has been held up because of sanctions towards the Russian firm that Harbour was meant to be operating this mission with.
There have additionally been stories a few potential merger with US-based Talos Energy. That would see the corporate’s focus shift away from the UK after the windfall tax hit
Harbour and Talos have already partnered on a mission within the Gulf of Mexico earlier than.
Harbour stories on Thursday August 24.
