Shares of UK North Sea oil firms slump after Labour election pledge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2024
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Should l Buy ?
Source: reuters
- Labour Party's Plans: Labour party in the UK outlined plans to raise taxes on oil and gas, halt new exploration licenses, and increase windfall tax by 3 percentage points.
- Market Reaction: Shares of British North Sea oil producers dropped sharply following the announcement of Labour's proposals.
- Tax Implications: The windfall tax, currently at 35%, brings the total tax burden on producers to 75%, impacting profits and investments in the industry.
- Industry Concerns: Industry body Offshore Energies UK expressed concerns over the plans to scrap new oil and gas licenses, emphasizing the need for an investment-friendly environment.
- Company Impact: Shares of major North Sea oil producers like Harbour Energy, Serica Energy, Enquest, and Ithaca Energy fell significantly in response to the proposed changes.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
