The premier operator in the North Sea shifted from nearly a $1bn profit to an $8m deficit after the introduction of the government’s windfall tax, and a subsequent reduction in investment.
Harbour Energy noted that its mid-year figures were further affected by €16m in charges stemming from a business review initiated due to this additional tax. However, the company anticipates these changes will lead to €50m in savings starting next year.
This news follows an announcement from competitor Ithaca, which voiced concerns about the need to halt projects and slash production, attributing it to the profound effects of the government’s windfall tax.
Ithaca Energy, responsible for the debated Cambo oil field, informed its stakeholders about a write-off of $74m (£58m) from its assets, citing the Energy Profits Levy as the primary cause.
Linda Z Cook, Harbour’s CEO, commented, “Our commitment remains strong towards enhancing the value of our UK oil and gas assets, progressing our inherent development initiatives, and maintaining prudent capital management.”
