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Ithaca Energy PLC on Friday said it remains committed to its dividend policy despite revisions to the energy profits levy announced by Chancellor Jeremy Hunt on Thursday.
The UK North Sea exploration and production company, based in London, said it will work with government and industry partners to evaluate its development opportunities under the revised levy.
Hunt announced that the rate of the energy profits levy, also known as the windfall tax, will be increased to 35% from January, up from 25% to ensure oil and gas companies benefitting from extraordinary prices ‘pay their fair share’.
Ithaca said the levy favours companies that are reinvesting their profit in the UK North Sea, such as Ithaca itself.
The company's pipeline of development opportunities ‘have the ability to increase domestic energy supply’ in line with the British Energy Security Strategy, thus allowing Ithaca to benefit from tax relief under the Levy's investment allowance.
Ithaca paid a dividend of $15 million in the 2021 financial year, down from $120 million a year before.
Ithaca shares were up 1.2% to 194.20 on Friday afternoon in London.
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