Member Info for davef24

The bad news is yet to come regarding the hit from WT

That's not good for confidence going into tomorrow. This will either be 350 or 250 tomorrow. Sorry i got myself involved with this share

Their down 58.48 EUR
-2.45 (4.02%)today on this news. Not looking good for Harbour thursday based on that

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.
https://www.ft.com/content/0f798698-52bb-4179-b62c-d0ab428ad661

France’s TotalEnergies said it expected to take a $2.1bn hit from windfall taxes in the UK and EU on its earnings for 2022, with half the bill coming from Britain.

Oil and gas groups have been totting up the cost of levies introduced in Europe in recent months to try to capture profits boosted by a surge in commodities prices exacerbated by Russia’s invasion of Ukraine.

In Britain, where Total is the second-biggest oil and gas producer in the North Sea, a 25 per cent energy profits levy introduced in May was increased to 35 per cent from January 1, taking the headline tax rate on UK oil and gas production to 75 per cent.

Total said in a trading update on Tuesday that it expected a $1bn overall hit on its 2022 adjusted results from the UK windfall tax, with a $400mn charge reflected in its fourth-quarter earnings.

The group said in December it would cut its North Sea investments for 2023 by a quarter, or £100mn, as a result of the taxes, especially as they did not include a mechanism to account for any drops in oil or gas prices. It said it would ditch projects including one on the Elgin gasfield off the Scottish coast.

“The energy industry operates in a cyclical market and is subject to volatile commodity prices,” said Jean-Luc Guiziou, Total’s British head of exploration and production. “We believe that the government should remain open to reviewing the energy profits levy if prices reduce before 2028.”

Shell disclosed a $2.4bn hit from UK and EU levies earlier in January. BP, the third-largest oil and gas producer in the North Sea, has said it expects to pay about $2.5bn in UK taxes in 2022, including about $800mn under the new levy.

Private equity-backed Harbour Energy, which is the UK’s biggest producer, expects to pay $900mn in UK taxes this year, including $400mn under the levy.

Total has so far largely absorbed the hit from taxes on its operations, as well as writedowns on some of its operations in Russia, as earnings soar. It said on Tuesday that cash flow from its liquefied natural gas and trading business would come in higher in the last three months of 2022 than the previous quarter, despite a drop in gas prices.

It also said it was likely to maintain the pace of its share buybacks at $2bn for both the fourth quarter of 2022 and the first quarter of this year.

The group has come under pressure in France to help consumers deal with inflation, including by cutting petrol prices at the pump in the autumn.

Total said the hit from writing down its 19.4 per cent stake in ind

Out of all the oil share I could of picked to go up, **** me I picked the worst **** share. All the others are way up. Shortters want to kill this for some reason, probably because its an easy target

I'm just worried about the impact of the windfall tax, if anything will **** this share its this. My avg is 370, if I get anywhere near this i'm out.

The question is will it hold today? from 12 onwards it normally falls back which is sickening

Good article but no mention of the damage from the wind fall tax, that’s why this share is on its knees. Only one winner here the uk government

Revisions to the windfall tax – or energy profits levy – increased the estimated bill of Harbour Energy (LON:HBR) by over $2bn, according to analysis.

Harbour Energy, the North Sea’s largest producer, is one of the strongest opponents to the windfall tax, and analysis from Welligence has shed further light on its impact.

North Sea head John Corr said the firm is now facing a $5.5bn bill for 2022-2025, equating to around 24% of its profits, due to chancellor Jeremy Hunt’s latest reforms in November.

The windfall tax was first introduced by then-chancellor Rishi Sunak in May 2022 at a 25% rate, increased to 35% in November by Jeremy Hunt.

Mr Corr set out how that has impacted Harbour.

“Under the old system, Harbour’s EPL payments basically over the 2022 – 25 period were about $3bn, or around 19% of their profits went into the EPL.”

When Hunt’s changes came in “it went from $3bn to, in our estimates, $5.5bn. So overnight it’s a $2.5bn add and it amounts to 24% of their profits over the period.”

windfall tax harbour energy© George Cracknell Wright/LNP/Shut
Chancellor Jeremy Hunt
Harbour is so hard-hit due to a lack of spending pipeline to take advantage of an investment incentive linked to the EPL.

Mr Corr compared Harbour Energy to Equinor, the operator of the huge Rosebank project in the West of Shetland, which is hugely insulated against the EPL.

In contrast to the estimate, it is understood that Welligence’s $5.5bn figure would be at the very top end of analyst concensus for Harbour through to 2028, rather than 2025.

Harbour, which did not comment on the stats, issued a trading update on November 3 saying its total tax liabilty for 2022 would be $900m, of which just $400m is linked to the EPL.

Windfall tax
The levy’s investment incentive mechanism – repaying 91p for every £1 spent – means companies spending on new projects will see relief.

“Although Harbour have, according to us, over $1.5bn of capex, coming up over the next three years or so, it really hurts,” Mr Corr said.

No one has taken into account the windfall tax costing, that’s why the share is on its knees. I have no doubt that 2022 earning will be good but when they also say in there report 2023 earnings will be impacted due to WT we will be lucky to get up to £3,20. I have a **** load of these at 3,80 and all I want is my money back, to get there the oil price will have to be over $100. Unfortunately this ****ed up government has destroyed this companies future. The only reason why buy backs have stopped, I believe their using it to pay down debt before the results.

This is a **** share but it's NEVER BEEN 240, so much crap talked here

Why sell now? Because the uk government has ****ed this company completely and it’s got most of its eggs in the uk. I also think the update due in Jan isn’t going to be good as people here think due to the tax implications. Question if there such a bargain why have no directors buying, that’s what worries me.

This is one **** company just sold half my holding with a massive lost. The fact the company does nothing to protect share holders and keeps quiet gives me no confidence. Shorters want this under 250 sickening

Its not 2p u dick im down 86p honestly

They sold and it dropped another 2p in the auction so it will be down monday, ive had enough of this **** share

**** me we are up, the question is will it last?

How can this company be worth less than what it came to the market for even with the windfall tax? That’s what I can’t work out after paying down lots of debt and pumping **** loads of oil and gas. I hate companies that don’t find ways to protect their share price and let the shorters destroy it

What a **** hunt is we will go to 2:50 now

Finance Minister Jeremy Hunt rebuffed requests from North Sea oil and gas executives to include a mechanism in the tax to reflect falls in oil and gas prices, although a future revision was not ruled out should prices slump, the sources said.

Shorts increase again yesterday, they just won't leave this share alone because its predictable

Groundhog day. Once I get back to evens on his stock I'm out