One of the country’s largest energy suppliers recorded a profit of almost 300 million euros without paying taxes

One of the country’s largest energy suppliers has made a profit of almost 300 million euros without paying taxes.

Soaring gas prices in the second half of last year helped Equinor post 2021 pre-tax profit of €289.8 million.

The Norwegian company was a significant shareholder in the Corrib gas field, Ireland’s only domestic source of natural gas.

The gas is extracted off the coast of Mayo and brought to shore via an 83 km pipeline.

New accounts show Equinor Energy Ireland Ltd recorded the big gains as revenue nearly tripled from £103.2m in 2020 to £304.18m last year.

Pre-tax profit of €289.8m follows pre-tax losses in 2020.

The company reported an after-tax profit of €378.97 million after receiving a €89.17 million corporate income tax credit, mainly due to the utilization of tax losses and tax credits.

The financial statements show that based on the standard tax rate of 25 percent, corporation tax of €72.45 million would have been due on the reported profits.

However, after utilizing previously deferred tax assets, utilizing tax losses and timing differences between depreciation and capital deductions, the company received the corporate income tax credit of €89.17 million.

At the end of last year, the company had tax losses of 980 million euros, which can be offset against future taxable profits.

In November last year, Equinor agreed to sell its entire 36.5 percent stake in the Corrib gas field to Canadian company Vermilion Energy for $434 million.

They have also agreed a conditional payment that will be paid on part of the revenue if European gas prices exceed a certain level.

Directors state that the transaction is “intended to be completed in the second half of 2022.”

Directors indicate that there has been significant price volatility in 2021, driven primarily by high economic growth and subsequent supply chain shortages amid measures to contain the Covid-19 pandemic.”

At the end of December last year, the Irish Equinor entity had posted profits of €451.6 million.

https://www.independent.ie/news/one-of-countrys-largest-energy-suppliers-recorded-almost-300m-in-profit-while-paying-no-tax-42027589.html One of the country’s largest energy suppliers recorded a profit of almost 300 million euros without paying taxes

Fry Electronics Team

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