Harbour Energy, a major North Sea oil producer, has reported a significant decline in profits as it faced hefty windfall taxes.
The company’s pre-tax profits stood at around $2.4bn (£2bn), but it was hit with $2.4bn (£2bn) in taxes, including $1.5bn from the Energy Profits Levy.
As a result, Harbour Energy’s after-tax profit shrank to a mere $8m (£6.7m). The energy company’s gas revenues rose by almost 100% to $2.3bn (£1.9bn), while crude oil income increased by 27% to $2.8bn (£2.4bn).
Harbour Energy’s CEO, Linda Z Cook, expressed her disappointment over the Energy Profits Levy, which applies regardless of commodity prices, and disproportionately affects independent oil and gas companies operating in the UK.
She added that the tax burden had forced Harbour Energy to cut down its UK investments and workforce. Moreover, the company’s strategic focus would now shift towards international growth and diversification, given the current financial instability and investment outlook in the UK.
