UK Windfall Tax Hits North Sea-Focused Oil Firm Valuations
- Jefferies lowers target prices for Harbour, Enquest and Serica
- Firms trading as much as 20% lower following levy announcement
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Oil and gas exploration and production companies in the North Sea are set to miss out on billions of dollars of cash after the UK implemented a windfall tax on energy firms to tackle the rising cost of living.
Analysts at Jefferies investment bank lowered price targets for UK-listed Harbour Energy Plc, EnQuest Plc and Serica Energy Plc, estimating that the energy profit levy will cost the companies $3.3 billion through 2025.