• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 17 hours America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Chesapeake's Production Cut Shakes Up Natural Gas Markets

Chesapeake's Production Cut Shakes Up Natural Gas Markets

Chesapeake Energy's decision to decrease…

Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warmer-than-average winter temperatures in the…

BP To Book $1.5B One-Off Charge From U.S. Tax Reform

BP expects to book a one-off charge of US$1.5 billion to its Q4 2017 earnings due to the U.S. tax reform, as the new legislation requires revaluation of BP’s U.S. deferred tax assets and liabilities, the UK supermajor said on Tuesday.

Details of the final actual revaluation and charge will be released when BP reports fourth-quarter 2017 earnings on February 6, the group said.

BP is joining its competitor, Royal Dutch Shell, which said last week that it expected to book a US$2-2.5-billion charge in its fourth-quarter 2017 results following the tax reform.

Beyond the short-term one-off impact on Q4 2017 earnings, both Shell and BP say that the new tax rules will be positive for them in the long term, and the reform as a whole is seen as benefiting the oil and gas industry.

Shell “expects the potential economic impact of the recently enacted US tax reform legislation to be favourable to Shell and to its US operations, primarily due to the future reduction in the US corporate income tax rate from 35% to 21%,” the Anglo-Dutch supermajor said on December 27.

“BP expects its future US after-tax earnings to be positively impacted by the recently-enacted changes to US corporate taxes, largely due to the reduction of the US federal corporate income tax rate from 35% to 21% (effective 1 January 2018),” BP said on Tuesday.

Related: The Biggest Oil Story Of 2017

The ultimate impact of the tax overhaul is subject to a number of complex provisions in the new U.S. tax rules which BP is currently reviewing, the oil supermajor said.

In the U.S., BP produces oil from four production platforms in deepwater Gulf of Mexico and from the Prudhoe Bay area in Alaska. BP also has onshore natural gas production operations, mostly in the western and southern United States. In refining, BP owns three refineries--Cherry Point, Washington; Toledo, Ohio; and Whiting, Indiana, with combined capacity to process up to 746,000 bpd.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News