- Exxon Mobil Corp (NYSE:XOM) has reportedly sued the European Union to remove the bloc’s new windfall tax on oil groups.
- Oil companies have reported record quarterly profits benefiting from high energy prices due to the Russia-Ukraine conflict, leading to further calls to tax the sector.
- Exxon spokesperson Casey Norton told the Financial Times the windfall profits tax is “counter-productive,” discourages investments, and undermines investor confidence.
- The Financial Times first reported the lawsuit.
- Related: Exxon Boosts Quarterly Dividend After Four-Fold Increase In Q3 Earnings.
- “Whether we invest here primarily depends on how attractive and globally competitive Europe will be,” Norton said.
- Exxon invested $3 billion over the past ten years in European refinery projects, helping it deliver more energy products when Europe struggles to reduce its imports from Russia, Norton added.
- The action threatens the viability of a levy the European Commission said would raise €25 billion “to help bring down energy bills.”
- The new tax will take effect from December 31 and apply a levy of at least 33% on any taxable profits in 2022-23 that is 20% or more above average profits between 2018 and 2021.
- Price Action: XOM shares are down 0.74% at $107.58 during the premarket session on the last check Thursday.
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