Shell to pay $2 billion in additional EU, UK taxes for the fourth quarter

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A Shell logo on an oil storage silo, past rail tanker vehicles at the company’s Pernis refinery in Rotterdam, the Netherlands, on Sunday, Oct. 23, 2022.

Bloomberg | Bloomberg | Getty Images

Major oil and gas Shell said on Friday that it expects to pay an additional $2 billion in new taxes for the fourth quarter in the European Union and the UK

“Q4’22 earnings impact from recently announced additional taxes in the EU (the solidarity contribution)
and the deferred tax impact from the UK energy profit tax increase is expected to be approximately $2 billion,” the company said in a trading update.

The EU agreed in September that oil and gas companies will pay tax on the extra profits made in 2022 or 2023. The “solidarity contribution” will see companies pay 33% of profits above the their average taxable profits.

Meanwhile, UK Finance Minister Jeremy Hunt said in his Autumn Statement in November that the energy industry would be subject to an extended wind tax of 35%.

Energy companies’ revenues have soared after Western sanctions restricted access to Russian supplies.

Shell, which will publish its full fourth-quarter results on February 2, also said it expects between $550 million and $750 million of loss in adjusted earnings over the period. The adjusted earnings figures will not be affected by EU and UK taxes, the company said.

This is a developing news story and will be updated soon.

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