Business

Serica Energy Considers Exit from UK Amid Rising Taxes, Eyeing Nordic Markets

Published

2 years ago

August 20, 2024

RTX

North Sea gas company Serica Energy is contemplating relocating its operations from the UK to Nordic countries, such as Norway, due to the UK’s increasingly burdensome tax regime. This potential move could deal a significant blow to Britain’s energy sector, which has already seen several offshore energy firms exit the country following steep tax increases.

Currently, Serica Energy produces between 41,000 and 46,000 barrels of oil per day and supplies about 5% of the UK’s gas. However, the attractiveness of the UK as a drilling destination has diminished in recent years. Taxes on UK oil and gas profits have surged from 40% to approximately 78% over the past three years. The situation could worsen if UK Chancellor Rachel Reeves proceeds with further tax hikes in the upcoming Budget, prompting companies to consider exit strategies.

Norway has emerged as a viable alternative for Serica Energy. The country offers a favorable business environment for companies like Serica, which specializes in revitalizing older oil and gas fields in the North Sea. Norway’s robust offshore energy market, experienced industry network, advanced technology, operational efficiency, and stable business climate make it an attractive option. Additionally, Norway’s double tax treaties with various nations could benefit companies seeking global expansion.

Serica Energy Chairman David Latin expressed concerns about the impact of the UK’s tax regime on smaller domestic companies. Speaking to The Telegraph, Latin highlighted the disproportionate effect on UK-based firms compared to international giants. “The consequences of being a purely British-based company are horrific at the moment,” Latin said. He noted that while the Labour manifesto’s announcement barely affected the share prices of major oil and gas companies, smaller UK firms experienced substantial declines.

The UK remains heavily reliant on fossil fuel imports, with net energy imports rising to 40.8% in 2023, up from 37% in 2022, according to the Digest of UK Energy Statistics (DUKES). As the UK continues to depend largely on fossil fuels, the increasing tax burden on energy companies is exacerbating the problem. This situation is further complicated by the slow progress in expanding renewable energy infrastructure, potentially increasing the country’s economic vulnerability and dependency on energy imports.

Amid growing pressure from environmental groups to take action against oil and gas companies, some politicians are grappling with the challenge of transitioning to renewable energy while ensuring a stable energy supply. In response to the tax pressures in the UK, other energy firms, including Shell, are exploring opportunities in the US, where the energy sector enjoys more favorable conditions and greater investment opportunities.

Related Topics:Business Serica Energy UK

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Business

Airbus-Led Consortium Proposes New Fighter Jet Plan After Collapse of Franco-German FCAS Project

Published

13 hours ago

June 9, 2026

Web Reporter

A new Airbus-led consortium has put forward an alternative plan to develop a next-generation fighter jet following the collapse of the Franco-German Future Combat Air System (FCAS) programme, marking a significant shift in Europe’s defence cooperation efforts.

The proposal, confirmed by one of the participating companies to AFP on Tuesday, comes just a day after German Chancellor Friedrich Merz and French President Emmanuel Macron agreed to end the long-running FCAS initiative after years of disagreement between industrial partners.

Munich-based defence electronics firm Hensoldt said it has joined Airbus Defence and Space, along with Autoflug, Diehl Defence, Rohde & Schwarz, Liebherr, missile manufacturer MBDA and engine maker MTU Aero Engines, in preparing a new framework for a next-generation combat aircraft.

The group has submitted its position paper to German Defence Minister Boris Pistorius, with reports indicating that it has also been sent to the Chancellor’s office in Berlin. According to the companies involved, the document outlines a revised approach to both the Future Combat Air System and its associated Next Generation Weapon System.

The German defence ministry confirmed receipt of the proposal and said discussions are ongoing. Pistorius noted that the government is still evaluating possible directions for the programme, adding that consultations with stakeholders have been taking place for months.

He described the end of the original FCAS project as personally disappointing, acknowledging the importance of Franco-German defence cooperation within Europe. However, he said strategic decisions must be made based on current realities rather than political sentiment.

The FCAS programme had been widely regarded as one of Europe’s most ambitious defence initiatives, designed to strengthen military integration amid growing security concerns linked to Russia’s actions and evolving transatlantic relations. The project aimed to deliver a sixth-generation fighter jet system through joint European development.

Despite its strategic importance, FCAS was repeatedly delayed due to disagreements between France’s Dassault Aviation and Airbus, which leads the German and Spanish participation in the programme. Tensions centred on industrial leadership, design authority and control over key technologies.

German partners had resisted Dassault’s push for greater control over aircraft development, while policy differences also emerged over operational requirements. German officials, including Friedrich Merz, have previously argued that Germany does not require carrier-based aircraft or nuclear-capable fighter systems, unlike France.

The breakdown of the programme has raised concerns about Europe’s ability to coordinate large-scale defence projects, even as governments seek to strengthen military capacity in response to global security challenges.

Further details of the Airbus-led alternative proposal are expected to be presented later this week at the Berlin ILA Air Show, where industry leaders and government officials are set to discuss the future of European combat aviation.

Business

OpenAI Moves Toward Potential IPO as AI Race Intensifies on Wall Street

Published

13 hours ago

June 9, 2026

Web Reporter

OpenAI, the company behind ChatGPT, has taken a significant step toward a possible stock market listing after filing confidential preliminary paperwork with the US Securities and Exchange Commission, signalling its intent to explore becoming a publicly traded company.

The San Francisco-based artificial intelligence firm confirmed the filing on Monday, marking another milestone in its gradual transition toward public markets and placing it alongside other major technology players preparing for potential listings.

Chief executive Sam Altman had previously indicated that an initial public offering would likely be the company’s “most likely path,” citing the enormous capital requirements needed to develop advanced artificial intelligence systems at scale.

Founded in 2015 as a non-profit focused on building safe and broadly beneficial artificial intelligence, OpenAI has since evolved into a corporate structure valued at about $852 billion. Its rapid commercial expansion has been driven largely by the global adoption of ChatGPT and related AI tools.

The latest filing comes as the company navigates intensifying competition from rivals including Google and Anthropic, both of which are investing heavily in large-scale AI models. Analysts have noted that the race for computing power and infrastructure has placed significant financial pressure on leading firms in the sector.

Industry analyst Nate Elliott described the timing as challenging, noting that OpenAI faces rising competitive pressure while still requiring substantial funding to support its operations. He added that public markets may represent one of the few viable sources of capital at the scale the company needs.

OpenAI has already undergone major structural changes, including a transition to a public benefit corporation while remaining under the oversight of its non-profit parent organisation. The restructuring was widely seen as a step toward eventual public listing.

The company also recently resolved a legal dispute involving co-founder Elon Musk, who had challenged OpenAI’s shift toward a for-profit model. A federal jury dismissed the case, clearing a major legal obstacle for the company’s corporate direction.

OpenAI has not disclosed revenue figures or provided a timeline for profitability, but continues to invest heavily in data centres, research and model training. Like several leading AI firms, it remains unprofitable as it prioritises expansion in a rapidly evolving sector.

In a statement, the company said the filing was not tied to an immediate listing decision and that timing remains flexible. It noted that remaining private still offers operational advantages, although public markets could become preferable depending on future conditions.

Chief financial officer Sarah Friar has previously said the company is preparing as though it will eventually be listed, highlighting that public markets offer significantly greater access to capital compared with private funding sources.

OpenAI chief executive Sam Altman has also outlined long-term ambitions that include developing automated AI research systems and expanding access to advanced AI capabilities globally. He said the company aims to ensure that economic gains from artificial intelligence are broadly distributed as the technology continues to advance.

Business

SpaceX Set for Historic IPO as Europe Opens Rare Door to Retail Investors

Published

13 hours ago

June 9, 2026

Web Reporter

SpaceX is set to make its long-awaited stock market debut on Friday in what analysts say could become the largest initial public offering in history, with retail investors in Europe unusually given direct access to shares.

The company, founded by Elon Musk and known for its rockets, satellites and artificial intelligence ventures, is expected to list under the ticker symbol SPCX. The IPO, scheduled for 12 June, is projected to price shares at around $135 each, placing SpaceX’s valuation at approximately $1.75 trillion and raising about $75 billion in new capital.

Unlike most major listings, where institutional investors dominate allocations, SpaceX has reserved a significant portion of shares for individual investors. Up to 30 percent of the total offering is expected to be available to retail buyers, marking a major shift in IPO distribution practices.

According to the company’s prospectus, around 55.6 million newly issued Class A shares have been set aside for retail investors across seven European countries, including Germany, France, the Netherlands, Denmark, Norway, Spain and Sweden. Regulatory approval has already been granted in Germany by the Federal Financial Supervisory Authority, although it stressed the decision does not represent an endorsement of the company or its valuation.

In the United Kingdom, access will also be available through selected platforms, with broker networks including AJ Bell, CMC Markets, eToro, Freetrade, Interactive Brokers and Interactive Investor participating via Marex Financial’s public offer system.

Retail investors will be able to apply through fintech platforms such as Revolut, Hargreaves Lansdown and eToro, although minimum investment requirements vary. Some platforms have set entry levels starting at around $750, while others require higher thresholds in local currency.

Interest among European investors has reportedly been strong. Hargreaves Lansdown said tens of thousands of clients had already registered for IPO alerts since rumours of the listing emerged earlier this year. Market data from BNP Paribas indicates retail participation in large technology IPOs has been steadily rising, now accounting for as much as 30 percent of order books in some cases.

However, analysts and financial institutions have urged caution. Allocation is not guaranteed even for those who apply, with final share distribution expected on the day of listing. Early investors may also face restrictions on selling shares quickly, as brokers often penalise rapid “flipping” of IPO stock.

Volatility is expected in the early days of trading, particularly as institutions and retail investors react to the company’s high valuation. Currency fluctuations may also affect returns for European investors buying dollar-denominated shares.

Professor Meziane Lasfer of Bayes Business School said retail investors may face disadvantages compared with institutional funds, which have access to deeper financial analysis. He also pointed to SpaceX’s reported $4.94 billion loss in 2025 despite strong revenue growth, noting that profitability remains uncertain.

Some institutional investors have already opted out. Denmark’s AkademikerPension, which manages around $25 billion in assets, said it would not participate, citing concerns over valuation and governance structure, which gives Elon Musk significant voting control.

SpaceX itself has acknowledged in its regulatory filings that profitability is not expected in the near term, adding further debate around the long-term outlook for one of the most closely watched listings in global markets.