RE: Corrib7 Apr 2025 09:57
The price of oil has dropped below the windfall tax rate, so I believe this is the impact
Annual revenue = 150 bopd × $63/barrel × 365 days = $3,452,250.
Tax Calculation (54% Total Tax Rate):
Corporate Tax (19%): 19% of $3,452,250 = $656,927.5.
Energy Profits Levy (35%): 35% of $3,452,250 = $1,208,287.5.
Total Tax Liability:
Total Tax=656,927.5USD(Corporate Tax)+1,208,287.5USD(EPL)=1,865,215USD/year
So, in this case, the total tax burden would be $1,865,215 per year on the $3,452,250 revenue.
Effective Tax Rate= 54%, leaving $1,587,035
At $73
Revenue=150bopd×73USD/barrel×365days=4,003,875USD
Total Tax=760,738.25USD(Corporate Tax)+1,401,356.25USD(EPL)=2,162,094.5USD
Effective Tax Rate= 54%, leaving $1,841,781
So the big drop in oil price has been greatly off set by the tac reduction,
I believe the EPL ends below $71.40.