Harbour Energy swung to an annual loss in 2024 as the U.K.'s windfall tax for energy companies wiped out most of its pre-tax earnings, the company said on Thursday.
North Sea producers have warned that the UK's windfall tax on the industry, first imposed in the wake of a surge in energy prices in 2022, can dent their financial performance.
In October, Britain's Labour government upped its windfall tax on oil and gas producers to 38% from 35% and extended the levy to March 2030, taking the headline tax rate on the sector to 78% - among the highest in the world.
Harbour said its tax spend increased to $1.31 billion in 2024 from year-ago $571 million.
The largest British North Sea oil and gas producer's loss after tax came in at $93 million for the year ended December 31, 2024, compared with a profit of $45 million in 2023.
(Reuters - Reporting by Arunima Kumar in Bengaluru; Editing by Sumana Nandy)