Companies roundup: North Sea & GSK-Haleon

US energy major Chevron (US:CVX) has announced it will quit the North Sea after 55 years in what will be seen by some as the latest indictment of the government’s windfall tax policy.

 In addition to certain pipeline assets, Chevron will be selling its 19.4pc stake in the Clair Field, off the coast of Shetland. The driller said that its decision was unconnected to the government’s tax regime, and it follows a series of offshore divestments by some of its heavyweight industry peers such as Shell (SHEL). But it’s hard to imagine that the extension of the “Energy Profits Levy” through to March 2029, announced in Chancellor Jeremy Hunt’s recent Budget, didn’t have a bearing from a risk management perspective. 

At any rate, the likes of Harbour Energy (HBR) and Ithaca Energy (ITH) will probably be mulling over the viability of the Chevron assets, mindful that an incoming Labour government would crank up the levy by another three percentage points. MR

Read more: Why the North Sea is still a jewel in the UK’s crown

GSK offloads the last of its Haleon shares

GSK (GSK) has completed the sale of its remaining stake in Haleon (HLN), its former consumer health unit that was spun off in July 2022. The pharmaceutical giant held almost 13 per cent of the shares following the demerger. It has since sold a total of 1.2bn ordinary shares in Haleon for approximately £3.9bn. 

As of this morning, shares in both groups were down by almost one per cent. In a statement, GSK said the exit “is consistent with its previous commitments to monetise its holding in a disciplined manner”. JJ

Find out why we’re bullish on GSK

Insolvency surge boosts business at FRP 

Shares in FRP Advisory (FRP) climbed by 12 per cent in early trading, after the insolvency specialist upgraded its forecasts for FY2024. Management now expects revenue to increase by 23 per cent year-on-year to £128mn and for adjusted Ebitda to jump by 37 per cent to £37mn. It was previously targeting revenue of £123mn and profits of £32mn.

FRP has strengthened its position in the administrations market, growing its share from 14 to 16 per cent. Administrations rose by more than a fifth in FY2024, with the construction and retail sectors hit particularly hard. The group said businesses will continue to face challenges due to interest rates and higher costs. 

Other parts of the FRP group are also performing well, however. Activity levels in the corporate finance team, for example, increased in the second half of the year as UK economic conditions “began to stabilise and market sentiment improved”. 

FRP’s financial year ended on 30 April and the group expects to publish its audited results on 24 July. JS

Read more: ‘Hostile’ environment should boost these insolvency specialists