The Petroleum Revenue Tax (PRT) is being scrapped completely and the Supplementary Charge on oil and gas is being cut in half to 10%. While this is positive for the fundamental value of assets, this has a muted impact on the equity value of companies given the very large tax losses they carry. The winners are Premier Oil and Ithaca Energy that will benefit from U$2.5-8.0 mm cash tax reduction per year. Our ReNAV for Ithaca and Premier Oil are up respectively £0.05 (+10%) and £0.09
16 Mar 2016
SMALL POSITIVE FROM THE UK BUDGET
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SMALL POSITIVE FROM THE UK BUDGET
Faroe Petroleum (FPM:LON) | 0 0 (-0.4%) | Mkt Cap: 371.0m
- Published:
16 Mar 2016 -
Author:
Stephane Foucaud -
Pages:
2
The Petroleum Revenue Tax (PRT) is being scrapped completely and the Supplementary Charge on oil and gas is being cut in half to 10%. While this is positive for the fundamental value of assets, this has a muted impact on the equity value of companies given the very large tax losses they carry. The winners are Premier Oil and Ithaca Energy that will benefit from U$2.5-8.0 mm cash tax reduction per year. Our ReNAV for Ithaca and Premier Oil are up respectively £0.05 (+10%) and £0.09