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Trinity Exploration hails cashflow benefit from tax law change
StockMarketWire.com
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Trinidad and Tobago focused oil company Trinity Exploration & Production said local tax changes there would have a significant positive impact on its cashflows.
The company confirmed that a revised threshold for supplemental petroleum tax (SPT) for small onshore producers had been implemented.
The threshold at which SPT would be due for producers with less than 2,000 barrels of crude output per day had now increased from US$50 per barrel to US$75 per barrel, for the financial years 2021 and 2022.
'As a result, Trinity expects to be exempt from SPT across all of its onshore licences below US$75 per barrel, which will have a significant positive impact on future cash flows,' it said.
'Based on current onshore production levels, Trinity estimates that SPT of c.US$3.5 million per annum or more would previously have been payable if realisations were above $50.01/bbl (although this could be partially mitigated by the investment tax credits shelter).'
'The confirmation of these reforms therefore represents a considerable boost to potential cash generation from Trinity's onshore licences should realisations average above US$50.01/bbl for any calendar quarter during 2021 and 2022.'
At 9:21am: (LON:TRIN) Trinity Exploration Production share price was 0p at 8.45p
Story provided by StockMarketWire.com
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