BP expects US earnings uplift from tax reform
January 2, 2018 | 1:35 PM
by Reuters
Reuters file picture

New York: British energy company BP expects a positive impact on future post-tax earnings from the United States after the changes to US corporate taxes, it said on Tuesday.

The US House of Representatives gave final approval in December to the biggest overhaul of the US tax code in 30 years, which included a cut to the corporate tax rate to 21 per cent from 35 per cent.

The company said the lowering of the US tax rate requires revaluation of BP’s US deferred tax assets and liabilities and estimated a one-off non-cash charge of about $1.5 billion on 2017 fourth-quarter results.

BP said it was reviewing the final impact of the tax changes and details of the final charge are expected to be disclosed in its fourth-quarter results announcement, due on Feb. 6.

Last week Shell said it expects the US tax reforms to have a “favourable” impact on its operations, but added that the change would hit fourth-quarter results.

Subscribe to our newsletter and be the first to know all the latest news