Harbour Energy, a leading oil and gas company, has announced that it will be cutting 350 onshore jobs in the UK. The company cites the windfall tax as the reason behind the decision. The windfall tax is a levy imposed on companies that benefit from unexpectedly high profits.
Harbour Energy stated that the decision to cut jobs was not taken lightly and that it was necessary to ensure the long-term sustainability of the company. The company also said that it will be providing support to the affected employees and will be working closely with them to help them find new employment opportunities.
The largest oil producer in the North Sea recorded pre-tax profits of $2.5 billion (£2.1 billion) in 2022, which is over 700% higher than the previous year, due to an increase in oil and gas prices and production. However, after factoring in the impact of higher tax rates in the UK, the company’s post-tax profits were reported to be only $8 million. In light of this, CEO Linda Cook has expressed the company’s intention to expand its business beyond Britain
This news comes as a blow to the UK’s struggling oil and gas industry, which has been hit hard by the Covid-19 pandemic and a slump in global oil prices. The industry has been calling on the government to provide more support to help it weather the current crisis.
@Harbourenergy is cutting 350 jobs after #HBR said it would shift investment away from the #NorthSea The chief executive Linda Cook, is in line to get shares in the North Sea giant worth more than £3M after the firm claimed the windfall tax had ‘all but wiped out’ its profits. pic.twitter.com/ApUpewjLv6
— Share_Talk ™ (@Share_Talk) April 5, 2023
Harbour Energy’s decision to cut jobs is likely to further exacerbate the situation, and many are calling for the government to take action to prevent further job losses in the industry. The government has already announced a series of measures to support the sector, including tax breaks and funding for research and development.
Despite these measures, however, the future of the UK’s oil and gas industry remains uncertain, and many are questioning whether the industry can survive in the long term in the face of increasing pressure to move towards renewable energy sources.
In March, the company reported a sharp decline in its bottom line profits, which dropped to a mere $8 million (£6.6 million) in the previous year. This was attributed to the introduction of the Energy Profits Levy (EPL), despite the surge in oil and gas prices triggered by Russia’s full-scale invasion of Ukraine.
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