Hurricane Energy plc, the UK based oil and gas company, notes the Autumn Statement issued by the Chancellor of the Exchequer on 17 November 2022 containing changes to the Energy Profits Levy (the “EPL”). From 1 January 2023, the EPL rate will rise from 25% to 35%.
The Investment Allowance will be reduced to 29% for all investment expenditure (other than decarbonisation expenditure) broadly maintaining its existing cash value. The EPL will end on 31 March 2028.
As previously announced, the EPL charge for the Company for 2022 is currently expected to be less than $5 million taking into account capital allowances available in the period as well as the effect of the Investment Allowance that is included within the EPL legislation.
The Company is assessing the impact of the proposed changes to the EPL, in conjunction with its tax advisers. Currently it anticipates that, assuming oil prices remain at current levels, the impact of the increased EPL charge for 2023 and for 2024 will be a similar amount, but this is heavily dependent on the Company’s cost base at the time and the achieved level of revenue, driven by the price of oil.
The Formal Sale Process announced by the Company on 2 November 2022 is progressing, with multiple expressions of interest received from credible counterparties. The Company will provide further updates in due course.
Hurricane Energy plc
Antony Maris, Chief Executive Officer
+44 (0)1483 862820
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