Windfall tax

tenchy

Anyone seen an analysis of how the proposed energy company windfall tax might affect the share price of Shell plc and BP? 

I have a holding in Shell plc and I'm wondering whether I should sell.

MX5huggy

The share price will already reflect the possibility of a windfall tax. 

Albermarle

As above, you are most likely too late. The financial markets are nearly always one step ahead.

Thrugelmir

The windfall tax is likely to impact a larger number of companies. Be unfair to target two listed UK companies that make the majority of their profit overseas. Labour makes no mention of targetting overseas companies operating in the UK.  Doesn't have the same media headline grabbing appeal. 

grandadgolfer

tenchy said:

Anyone seen an analysis of how the proposed energy company windfall tax might affect the share price of Shell plc and BP? 

I have a holding in Shell plc and I'm wondering whether I should sell.

I have averaged down my BP holding quite a few times over the last 2 months with the price being volatile

Zola.

In the long run they will be just fine....

Thrugelmir

Zola. said:

In the long run they will be just fine....

Pension funds will take the hit though. Also an incentive for companies to take their listing status to another exchange. 

Further danger is that investors will shy away from renewable energy generators who have been raising millions in new capital over recent years. Little point in killing the chicken that's laying the eggs. 

MX5huggy

Do you sell? time to get back in.

NedS

Thrugelmir said:

Zola. said:

In the long run they will be just fine....

Pension funds will take the hit though. Also an incentive for companies to take their listing status to another exchange. 

Further danger is that investors will shy away from renewable energy generators who have been raising millions in new capital over recent years. Little point in killing the chicken that's laying the eggs. 

I guess Bluefield Solar Income fund (BSIF) will be the first good test case of that, having announced a share issue scheme just days before the FT article suggesting that any windfall tax may also include renewable energy generators. BSIF extended the deadline for the share offer to allow investors to assess the risks (and conveniently see the outcome of today's announcements) before the submission deadline. Before the announcement, one could reasonably have expected the issue to be massively over-subscribed judging by recent similar issues, so we will no doubt find out next week just how much investor confidence has been damaged.

https://www.londonstockexchange.com/news-article/BSIF/response-to-press-speculation-and-issue-timetable/15467192

wmb194

tenchy said:

Anyone seen an analysis of how the proposed energy company windfall tax might affect the share price of Shell plc and BP? 

I have a holding in Shell plc and I'm wondering whether I should sell.

IIRC the bitter pill has been sweetened somewhat by some improved tax breaks on UK investment.

tenchy

I'm keeping them - Shell plc (only got £1k anyway). As mentioned above, it seems like the risk of a windfall tax was taken into account a while ago.

I wonder how many people who bleat on about taxing these companies are invested in them via their pension funds? I'll answer my own question; literally millions of them.