UK’s biggest energy firm says windfall tax ‘wiped out profits’

THE UK’s largest oil and gas producer has claimed its profits last year were ‘all but wiped out’ by the Government’s windfall tax.

Harbour Energy, the largest producer in the North Sea, also said it had decided to cut back investment in Britain and reduce staff as a result of the levy.

The assessment came as Harbour reported an after-tax profit of just £ .7million last year, down from £85million in 2021 due to what it said was a £1.3billion charge linked to the windfall tax.

This was despite the company’s profit before tax and the levy ballooning to nearly £2.1billion in 2022 from £2 4million the previous year, as it cashed in on surging energy prices following the outbreak of war in Ukraine.

Harbour Energy boss Linda Cook said the tax, which effectively imposes a 75 per cent tax rate on profits made from the North Sea, had ‘disproportionately impacted’ UK-focused oil and gas firms. She added: ‘For Harbour... it has all but wiped out our profit for the year.’

Ms Cook said it meant Harbour was forced to ‘reduce our UK investment’ and staffing levels.