BP Sees $1.5 Billion Charge for Last Quarter on U.S. Tax Law
- Deferred tax assets to be revalued; long-term effect positive
- Shell also said last week it would book fourth-quarter charge
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BP Plc, the British oil major that invests more in the U.S. than anywhere else, expects to take a charge of about $1.5 billion following recent tax changes in the country, despite the prospects of long-term gains from the legislation.
“The lowering of the U.S. corporate income-tax rate to 21 percent requires revaluation of BP’s U.S. deferred tax assets and liabilities,” the London-based company said Tuesday in a statement. “The current estimated impact of this will be a one-off non-cash charge” affecting fourth-quarter 2017 results.