Cutting forecasts: Ithaca Energy has seven oil fields in the North Sea
A UK oil and gas firm has cut its production forecasts after the Government’s windfall tax left it with less to spend.
Ithaca Energy, which has seven oil fields in the North Sea and holds stakes in others, said it would produce 68,000 to 74,000 barrels per day on average this year, down from previous estimates of 72,000 to 80,000.
The FTSE 250 firm blamed the downgrade on the ‘impact of the energy profit levy’ as well as lower volumes.
Gilad Myerson, the executive chairman, said the windfall tax, which slaps an effective rate of 75 per cent on the profits of North Sea producers, has created ‘fiscal uncertainty’.
Ithaca shares dropped 4.3 per cent, or 6.6p, to 148p.
Its warning came as it posted a 2022 profit of £1.8billion, nearly tripling the previous year’s £617million as it cashed in on a boom in energy prices sparked by war in Ukraine.
Production rose to 71,403 barrels per day from 56,486 in 2021.
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