On the 16/03/2016 the UK budget included some fiscal changes for the UK North Sea. 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 (small) are Premier Oil and Ithaca Energy that will benefit from US$2.0- 8.0 mm cash tax reduction per year
17 Mar 2016
Muted Impact from the UK Budget
Capricorn Energy PLC (CNE:LON), 176 | EnQuest PLC (ENQ:LON), 14.2 | Faroe Petroleum (FPM:LON), 0 | Ithaca Energy (IAE:TSE), 0 | Harbour Energy Plc (HBR:LON), 277
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Muted Impact from the UK Budget
Capricorn Energy PLC (CNE:LON), 176 | EnQuest PLC (ENQ:LON), 14.2 | Faroe Petroleum (FPM:LON), 0 | Ithaca Energy (IAE:TSE), 0 | Harbour Energy Plc (HBR:LON), 277
- Published:
17 Mar 2016 -
Author:
Stephane Foucaud -
Pages:
2
On the 16/03/2016 the UK budget included some fiscal changes for the UK North Sea. 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 (small) are Premier Oil and Ithaca Energy that will benefit from US$2.0- 8.0 mm cash tax reduction per year