Shares of UK North Sea oil firms slump after Labour election pledge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2024
0mins
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.
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.
