- The contingency tax is expected to be $400 million of the total tax bills of $900 million for 2022.
- But this year, the company rewarded investors with $500 million.
- And today launched a new $100 million share buyback program.
Harbor Energy has warned of an extension of the contingency tax for energy companies, despite using profits from higher gas and oil prices to pass millions on to shareholders.
The UK’s largest independent manufacturer said it expects a windfall tax known as the UK Energy Profits Levy to be $400m (£356m) out of its $900m (£802m) total tax bill for 2022 year.
He urged the government to “thoroughly” consider the implications of any increase or expansion of the scheme, saying it would prevent energy companies from investing “to ensure the UK’s energy security”.
Windfall for Shareholders: Harbor Energy Announces New $100M Share Buyback Scheme
But the warnings come as the group continues to profit from rising energy prices and lower costs, handing over millions to shareholders through buybacks.
The company, which rewarded investors with $500 million this year, today announced a new $100 million share buyback program that will be completed by February next year.
Revenue rose to $4.1 billion in the first nine months, Harbor said, driven by higher prices, higher production and lower costs.
After hedging, gas prices rose to 86 pence a therm from 69 pence in the first half of the year, while oil prices remained virtually unchanged at $80 a barrel from $82.
The company said it was producing about 207,000 barrels of oil equivalent per day, up 27% from the same period last year.
It also updated its production plan, with full-year volumes now expected to be in the “top half” of the previous range of 200,000 to 210,000 barrels.
And he said costs are expected to average $14 a barrel, down 18 percent from last year.
Shares Harbor Energy rose 3.8% to 399 pence in Thursday afternoon trading, leaving them 11% higher than a year ago.
Despite the upbeat news about the bidding, he urged the government to reconsider a possible increase and expansion of the 25 percent windfall tax on energy companies.
The surcharge was introduced by the government in May to help households struggling with rising energy prices.
New chancellor Jeremy Hunt is believed to be considering raising the contingency tax to 30% and extending it by three years until 2028.
“While we are fully aware of the significant challenge in the UK of putting public finances on a sustainable footing, we urge the government to carefully consider the implications of any increase or extension of the EPL,” Harbor Energy Chief Executive Linda Z. Cook said in a statement. .
“At a time when oil and gas producers are being asked to invest more to help ensure the UK’s energy security and are considering long-term, substantial investment in CCS, additional taxes could undermine our ability to do both.”
Credit: www.thisismoney.co.uk /