Energy firm cuts forecasts after Government’s windfall tax
Energy company lowers production forecasts after it has less to spend due to the government’s windfall tax
Downward outlook: Ithaca Energy has seven oil fields in the North Sea
A British oil and gas company has revised its production forecasts down after the government’s windfall tax reduced its spending.
Ithaca Energy, which has seven oil fields in the North Sea and interests in others, said it would produce an average of 68,000 to 74,000 barrels per day this year, against previous estimates of 72,000 to 80,000.
The FTSE 250 company blames the downgrade on the ‘impact of the energy profit tax’ and lower volumes.
Gilad Myerson, the executive chairman, said the windfall tax, which puts an effective rate of 75 percent on the profits of producers in the North Sea, has created “fiscal uncertainty”.
Ithaca shares fell 4.3 percent, or 6.6 pence, to 148 pence.
The warning came as it posted a profit of £1.8bn in 2022, almost tripling the previous year’s £617m, as it cashed in on an explosion in energy prices due to war in Ukraine.
Production increased from 56,486 in 2021 to 71,403 barrels per day.