- Harbour’s pre-tax revenue of $597m diminished to simply $32m after taxation
- Chancellor confirmed on Wednesday EPL will likely be prolonged to March 2029
FTSE 250 oil agency Harbour Energy has seen the overwhelming majority of its income worn out by Britain’s Energy Profits Levy for the second consecutive 12 months.
Britain’s largest North Sea oil producer posted a pre-tax revenue of $597million for the 12 months to 7 March, falling to simply $32million after tax, with $525million paid out to the EPL – an efficient tax price of 95 per cent.
The EPL was launched in 2022 in response to booming oil and gasoline profitability as Britons struggled to pay their payments.
It resulted in an eye-watering $1.5billion invoice for Harbour Energy, dragging its pre-tax revenue from $2.5billion to simply $8million.
Drained: Harbour Energy’s income are worn out once more
Harbour Energy informed buyers it was ‘presently assessing the potential influence’ after Chancellor Jeremy Hunt confirmed in his Spring Budget on Wednesday that the EPL can be prolonged for one more 12 months to the top of March 2029.
The group has beforehand reduce British jobs and scaled again North Sea spending in efforts to diversify its publicity overseas, partly in response to the EPL.
It posted revenues of $3.7billion for final 12 months, down from $5.4billion in 2022, reflecting decrease volumes and oil costs. Oil costs neared $120 a barrel in 2022, however at the moment are buying and selling at lower than $80/bl regardless of latest uncertainty attributable to assaults on ships within the Red Sea.
Harbour Energy in December agreed the takeover of Wintershall Dea’s non-Russian oil and gasoline belongings in a $11.2billion deal, which can make it one of many world’s largest unbiased producers.
Boss Linda Cook stated: ‘We stay centered on the profitable completion of the Wintershall Dea acquisition and the continued protected and environment friendly administration of our current portfolio.’
Mark Crouch, analyst at funding platform eToro, stated the takeover of Wintershall Dea ‘stands to rework the enterprise greater than doubling the oil and gasoline firm’s each day manufacturing and diversify its operations away from the UK’.
He added: ‘With world oil demand reaching a brand new all-time excessive in 2023, buyers may have excessive hopes for the Wintershall acquisition set to finish in This autumn this 12 months and the potential that it gives.
‘Looking again to Harbour’s inception and their acquisition of Premier Oil in 2021, Harbour Energy has since paid down 90 per cent of the ensuing $2.7 billion debt and launched one of the engaging dividend yields within the sector, which they’ve elevated once more by 9 per cent following this morning’s replace.’