PressTV-BP to take $1.5bn hit on Trump tax reforms

British energy major BP said Tuesday that it expected to take a $1.5-billion (1.2-billion) hit from US President Donald Trump’s tax reforms.

“The lowering of the US corporate income tax rate to 21 percent requires revaluation of BP’s US deferred tax assets and liabilities,” the company said in a statement.

“The current estimated impact of this will be a one-off non-cash charge to the group income statement of around $1.5 billion that will impact BP’s fourth quarter 2017 results.”

However, the energy giant cautioned that longer-term earnings would be “positively impacted” by the US changes.

BP is scheduled to unveil its fourth-quarter figures on February 6.

Trump has signed into law a sweeping overhaul of the US tax code, in what was his first major legislative victory since taking office nearly a year ago.

The measure is expected to boost corporate profits of banks and other companies over the medium and long term by lowering the…

Read more