Which companies will lose the most from the energy windfall tax?

The government’s new energy windfall tax has muddied the waters for investors and companies alike. Rupert Hargreaves explains how it might affect some of the sectors’ biggest companies.

Decommissioned oilrigs
Big Oil producers are “tax negative” in the UK because of spending on decommissioning their ageing assets. 
(Image credit: © Jeff J Mitchell/Getty Images)

Rishi Sunak‘s decision to introduce a windfall tax on North Sea oil producers has divided opinion. Some are pleased to see the government re-distributing the “excess” profits of these companies to the poorest in society. Others have complained that it will result in reduced investment in the sector over time.

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Row 0 - Cell 0 Tax take 20222022 revenuesTax take 20232023 revenues
Total$500m0.2%$900m0.4%
BP$100m0.04%$800m0.4%
ENI $100m0.1%$200m0.2%
Harbour Energy (LSE: HBR)$107m2.0%$268m5.4%
Serica Energy (LSE: SQZ)$64m5.1%$99m10.8%
EnQuest (LSE: ENQ)$14m0.9%$73m4.9%
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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.