London-based oil giant British Petroleum (BP) said Tuesday that it expects to take a roughly 1.5-billion-U.S.-dollar accounting charge for its fourth quarter due to the U.S. tax overhaul, despite prospects of long-term gains from the corporate-friendly legislation.
"BP expects its future U.S. after-tax earnings to be positively impacted by the recently enacted changes to U.S. corporate taxes, largely due to the reduction of the U.S. federal corporate income tax rate from 35 percent to 21 percent (effective on Jan. 1, 2018)," the company said in its press release.
The company, which has its U.S. headquarters in Houston, said its fourth-quarter results will be released on Feb. 6.
The Netherlands-based Royal Dutch Shell PLC, which has its U.S. head office in Houston, made a similar announcement last week.
Based on its third-quarter financial statements, Shell would have incurred an estimated charge of 2-billion-dollar to 2.5-billion-dollar tax, "primarily driven by a re-measurement of its deferred tax position to reflect the lower corporate income tax rate," the company said in a press release on Dec. 27.
However, Shell expects the change to be favorable to the company and its U.S. operations, mostly due to the reduction of the corporate income tax rate.
U.S. President Donald Trump signed a 1.5-trillion-dollar tax cut bill into law on Dec. 22, cutting tax rates for businesses and offering some temporary cuts for some individuals and families.
"BP expects its future U.S. after-tax earnings to be positively impacted by the recently enacted changes to U.S. corporate taxes, largely due to the reduction of the U.S. federal corporate income tax rate from 35 percent to 21 percent (effective on Jan. 1, 2018)," the company said in its press release.
The company, which has its U.S. headquarters in Houston, said its fourth-quarter results will be released on Feb. 6.
The Netherlands-based Royal Dutch Shell PLC, which has its U.S. head office in Houston, made a similar announcement last week.
Based on its third-quarter financial statements, Shell would have incurred an estimated charge of 2-billion-dollar to 2.5-billion-dollar tax, "primarily driven by a re-measurement of its deferred tax position to reflect the lower corporate income tax rate," the company said in a press release on Dec. 27.
However, Shell expects the change to be favorable to the company and its U.S. operations, mostly due to the reduction of the corporate income tax rate.
U.S. President Donald Trump signed a 1.5-trillion-dollar tax cut bill into law on Dec. 22, cutting tax rates for businesses and offering some temporary cuts for some individuals and families.
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