BP to take $1.5b hit on US tax reforms

BP, the UK's leading energy company, announced Tuesday that it was expecting US President Donald Trump's tax reforms to bring in $ 1.5 billion ($ 1.2 billion). ; euros).

"The lowering of the US corporate tax rate to 21% requires a revaluation of BP's deferred US deferred tax assets and liabilities," the company said in a statement.

"The current estimated impact of this will be a single non-cash charge on the group's income statement of approximately $ 1.5 billion that will impact BP's results for the fourth quarter of 2017. "

However, the energy giant warned that long-term profits would be "positively impacted" by US changes.

BP is expected to release its fourth-quarter figures on February 6.

Trump enacted a radical reform of the US tax code during his first major legislative victory since he came to power almost a year ago.

This measure is expected to boost corporate and bank profits in the medium and long term by lowering the corporate tax rate from 35% to 21%.

However, several large corporations have reported that the law will result in a short-term decline in income repatriated overseas. The reform taxes these revenues at 15.5% on cash and cash equivalents and 8% on real estate and other illiquid assets.

Other major companies that alluded to one-off successes in the fourth quarter include BP's leading competitor, Royal Dutch Shell, as well as Barclays and Credit Suisse.

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