Serica Energy remains cash generative despite tax

The new energy profits levy will hit the figures of AIM-quoted North Sea oil and gas producer Serica Energy (LON:SQZ), although it will still be generating enormous amounts of cash over the next three years.  

That is not to say that the new 25% tax on excess profit will not remove a chunk of the potential cash generation. Capital investment in the North Sea can be used to offset the tax charge. There will be 91p of tax relief on every £1 of new investment in the North Sea.

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