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I didn’t read it correctly, to busy moaning lol
Lol KO - why would it affect TLW?
Why hasn’t this affected Tullow, HBR or BP, why only us ?
You’re right they are KO, but we put them there and are keeping them there. A bigger collection of disgusting reptiles I have never met,
Krak what are you smoking profit is going to be around 200-300 million tops imo and it’s 1 off tax initiative.
You and mrc and ammu just need to chillax :-)
We need a statement from EnQuest to clarify how we are going to be affected.
After the past 7 years of just avoiding bankruptcy we have been thrown head first back in the shat.
FFS when will our luck ever change
It seems that it’s just EnQuest that’s getting hammered at the moment ffs
Why is it always us ?
Well the government has ended any hope of Dividend payments to us poor shareholder.
This is probably why our AGM was postponed.
EnQuest may well have had the heads up on this and is now moving towards plan E
Obviously our debt repayments are pre TAXable and after investment we probably won’t have much profit to TAX anyway.
I quote from the government web site !
I was quoteing the 91p in the £1 invested.
"The new 80% Investment Allowance will mean businesses will overall get a 91p tax saving for every £1 they invest – providing them with an additional, immediate incentive to invest. "
Seems we were both correct.
However you fail to show numbers to validate your comment "Getting Hammered". I guess it is because that you have done some maths and see that it is NOT really getting hammered !
This is all NOISE and will be finished with in a matter of days !
Many TLW and HBR posters paying us a visit today to gloat. L3 is one of them !
Correct AA,
I got promoted for calling out the rubbish posted here without any numbers.
ENQ will fine tune their investment plans to claw back as much as they can on the 90% tax relief.
Hi January,
No, please read the table:
https://www.gov.uk/government/publications/cost-of-living-support/energy-profits-levy-factsheet-26-may-2022#_ftn2
Sunak is just talking non-sense... "they will recoup 90 per cent in tax relief," Yes, but "the Total tax relief under current scheme at the monent is 46.25% already.....
The key figure here is
Tax rate Relief Relief rate Amount of relief (assuming £100 investment)
Energy Profits Levy 25% Investment allowance[2] 80% 20
First year capital allowance is 25%.
Anyway, enough said by me.
ATB
Is January24 been upgraded from January 2?
Hi L3,
Your first paragraph is what I said in my posts. 40% tax now plus new 25% levy.
Secondly please get your facts correct ! Your 80% investment figure is wrong. Let me quote the chancellor -
"For every £1 energy companies invest, they will recoup 90 per cent in tax relief, Sunak said, adding the more they invest “the less tax they will pay”.
Now I return the quote you gave me - Please read things correctly !
You are wrong ! What is your deffinition of " getting hammered". ???
Absolute rubbish . Enquest's extra tax due to this Levy will range from a few million to tens of million pounds !
Max 25% declared profits minus the Investment allowance !
Give me some figures L3 , like I did ! What's your mathe here ?
Hi January,
Please look at the details before expressing judgment on what the impact is.
"The Energy Profits Levy is an additional 25% tax on UK oil and gas profits on top of the existing 40% headline rate of tax, taking the combined rate of tax on profits to 65%.
To appropriately tax the extraordinary profits, companies will not be able to offset previous losses or decommissioning expenditure against profits subject to the levy.
Tax rate Relief Relief rate Amount of relief (assuming £100 investment)
Energy Profits Levy 25% Investment allowance[2] 80% 20
The tax will take effect from today, 26 May 2022, and will be legislated for via a standalone Bill to be introduced shortly.
In future years, if oil and gas prices return to historically more normal levels, the Government will phase out the Energy Profits Levy, and also the legislation will include a sunset clause, effective at the end of December 2025."
It could last until 1st January 2026.
Unfortunately NSea foccused producers will get hammered. Much better to invest in companies producing elsewhere, until they too become subject to higher taxes. Not in the US, though...
ATB
Does Rishi get the £400 winter fuel payment :-) grey area if they have his wife’s bank account details with the non dom status.
Bojo, Rishi, Patel, reece bogg and Michael Gove just get a one way ticket to Monaco.
Think we can expect an amended Capex target this year !. Just need Brent to stay firm as suspect this levy won’t be withdrawn unless/until it drops quite significantly !
BTF I would not be surprised now if you get your 30-32. My view of the TA is that we might move to a bearish (corrective) position, although I don't have that confirmed (by TAC-DMI which holds some interest to me). Maybe the price drops to the levels you're looking for, maybe the sell-cycle resolves without any really SP drop. I don't have the answer but see your view as entirely possible. My guess is that the next buy signal, will be exactly that a signal to buy. Our position from a structural point of view is really good. Almost 5 mths of 100 dollar plus oil prices. Many of us (possibly wrongly) believed in this company a year ago and 2 years ago. We have not moved to a less positive place.
January great analysis but don’t we envisage for the net profit to be around £200-£300 million?
Great news if Bentley can be offset.
January24,
Ok thanks for that.. so we should Rally. I will check it out.
Auson,
I have been on the government web site - it is for New oil projects ! = New Oil
My assumption is that could include new drills as it equals new oil !
I think Bressey should qualify as would Bentley, no problem.
This is just NOISE, boys !
Lets look at the numbers !!!
We are protected against the current 40% by our tax credits - No tax to pay 2022.
The new 25% profits Levy (windfall tax) . Lets say our profits are going to be around £600m ( $755m)
So 25% = £150m . How much do you think we will spend on new projects/drilling in the next 12 months ?
Maybe £120m (90% except from new tax) -- So we would pay windfall tax of only £42m .
Remember the 12 months start from Today (Jan1st to 24may 2022 is not included)
Finally if we spent the full £150m in new projects/drills etc we would only pay a tiny £15m.
I think the opposite is true - This makes us a Takeover Target ! mark my words. Someone could save a lot of tax buying Enquest !
January24,
I don't think its been made clear if the 90% tax relief will be on North Sea or just Green initiatives ?
Hi Ariel, hope you are well?
Hmmm looking at the details I’m going to watch and wait for the 30-32p level.
This government are an absolute bunch of incompetent clowns who have again not carried out their due diligence on the likes of enquest. This is a two fingers up for companies who are investing in the North Sea.
Why don’t they tax their Chinese, Russian Middle Eastern and African Tory donors ffs.
It wasn't research just something that came up in my junk mail.
Thought you might like it lol.
I’m not “shooting” you AA.
Merely commenting on the quality of your research if you think AI generated content on simply wallstreet is worth something.