London Daily

Focus on the big picture.
Thursday, Mar 30, 2023

Windfall tax has 'all but wiped out our profit for the year', biggest North Sea oil producer says

Windfall tax has 'all but wiped out our profit for the year', biggest North Sea oil producer says

The Aberdeen-based firm reveals a string of awards for shareholders despite its objections to the energy profits levy which, it said, had helped it focus on growth opportunities away from UK waters.
The biggest producer of oil and gas in the North Sea has reported that the government's energy profits levy (EPL) has "all but wiped out our profit for the year".

Harbour Energy said it had "reduced our UK investment and staffing levels" and bolstered its aim to expand elsewhere as a result of the hit from the windfall tax.

It has become something of a political football during the cost of living crisis to date, with opposition parties accusing the government of not going far enough in its efforts to recover costs of its energy bill support for households and businesses from extraction companies' UK operations.

The likes of Shell and BP have revealed record profits on the back of elevated oil and gas prices due to the war in Ukraine, though their respective upstream activities expand far beyond the boundaries of the North Sea.

UK-focused Harbour had warned in January that it was to make head office workers in Aberdeen redundant in direct reaction to the hike in the levy, announced by Chancellor Jeremy Hunt in November last year.

It took the EPL rate to 35% from 25% but the decision took the effective tax rate on North Sea profits to 75% because of the 40% corporation tax charge already applied.

However, some investment relief is granted under the levy.

Harbour's chief executive said the job losses, yet to be completed, would be "significant" and it was looking to cut costs by $40m this year.

Its profits after tax for 2022 came in at $8m (£6.7m) due to a "$1.5bn one off non-cash deferred tax charge associated with the EPL", the company said.

But shareholder distributions of $553m were made during the year and it proposed a $100m final dividend which marked a 9% increase in awards during the year.

A new share buyback plan worth $200m was also revealed.

Shares fell 2% at the open.

Chief executive Linda Cook said: "The UK Energy Profits Levy, which applies irrespective of actual or realised commodity prices, has disproportionately impacted the UK-focused independent oil and gas companies that are critical for domestic energy security.

"For Harbour, the UK's largest oil and gas producer, it has all but wiped out our profit for the year.

"This has driven us to reduce our UK investment and staffing levels.

"Given the fiscal instability and outlook for investment in the country, it has also reinforced our strategic goal to grow and diversify internationally."

Labour is among government critics urging that the EPL is more punitive given that households and businesses are suffering from record energy bills.

The Liberal Democrats, meanwhile, seized on revelations on Thursday, that now-departed Shell boss Ben van Beurden had received a 53% rise in awards last year to £9.7m, as evidence that a higher tax rate should be applied.

Mr Hunt is widely expected to maintain the energy price guarantee at its current level of £2,500 in his budget next week rather than cut the level of support from April as had been planned.

This is due to a fall in wholesale gas costs which has reduced the expected cost of the financial aid package.
Newsletter

Related Articles

London Daily
Close
0:00
0:00
Tsai Ing-wen received a "warm welcome" from the Chinese people in the US.
You Are So Beautiful
EU's von der Leyen: "We know this is an era where we rely on one single supplier. China. 98% of our rare earth supply."
Postmodern Jukebox European Tour Version
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Sattahip Motor Show 20
Nashville style execution
SONATE AU CLAIR DE LUNE - Moonlight sonata
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
A kiss to build a dream on
Former Starbucks CEO Howard Schultz:
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Mean Blues
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
La Chansonnette
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
Pattaya Addicts
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
Franz Liszt - Liebestraum - Love Dream
Social Media censoring users for saying the true
Dream a little dream of me
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
Unchained Melody sung like you've NEVER heard!
AMERICA, 2023
Dave Brubeck - Take Five
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Rondo Alla Turca
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
Kiss of fire
AOC explains why she opposes banning TikTok
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Israel Cachao López - Guajira Clásica
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Gordon Moore, a co-founder of Intel Corporation, died at 94
Strauss - Radetzky March - Karajan
Powell: Silicon Valley Bank was an 'outlier'
La vie en rose
Bordeaux town hall set on fire in France pro democracy protest
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Police violence in Paris
Orlando Cachaito Lopez Redencion
Paris: Some of the police are stepping down and showing solidarity with the protesters.
Edith Piaf - NON, JE NE REGRETTE RIEN
Donald Trump arrested – Twitter goes wild with doctored pictures
RADETZKY MARCH-2008-Wien, New Year Concert
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Only you (And you alone)
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Strangers In The Night
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Charles Aznavour - La Boheme
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
Summer time
Paris Rioting vs Macron anti democratic law
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
'Sexual Fantasy' Assignment At US School Outrages Parents
Aux Champs Elysees
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Credit Suisse to borrow $54 billion from Swiss central bank
La Mer (Beyond the Sea) – Avalon Jazz Band
The BBC problem about China
She
Strikes-Hit UK Pledges 94 Billion Euros In Cost-Of-Living Budget
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Russian Hackers Preparing New Cyber Assault Against Ukraine
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
Radiohead - Creep
UK face biggest fall in spending power for 70 years
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Perhaps, Perhaps, Perhaps - Multi-Couples
If this was in Tehran, Moscow or Hong Kong
Pentatonix Havana
Announcing GPT-4
Paula Cole - Autumn Leaves
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Oscar Benton Bensonhurst Blues
Drew Barrymore
OH NANANA vs ABUSADAMENTE
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
A brief banking situation report
NIGHTWISH - The Phantom Of The Opera
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Motorshow 2016 Tanjay Negros Oriental
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Monica Bellucci - Ti Amo
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Michael Jackson - Billie Jean Milena The Voice France 2018
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×