RE:RE:RE:RE:Ouch !!Nozzpack, if you have seen this report, why don't you let us all know how the SRB is calculated rather than throwing out ridiculous figures.
The company's description of how the SRB is caluclated is copied below. This will be easier to read in the original (see page 13 of the Statement of Reserves Data effective Decemebr 31, 2019). I have calculated the SRB based on my understanding of its terms but I am not certain I have properly interpreted all provisions. I have reached out to the company for an explanation of the terms, and will post my caluclation if I receive a clarification.
Special Remuneratory Benefit (SRB) tax:
o SRB tax rates of between 0 to 75% are based on annual revenue for the concession, in Thai Baht and adjusted for inflation, per meter of drilling plus a constant assigned in the concession agreement. The constant for Concession L53 is 300,000 meters with 70,586 cumulative meters drilled as at December 31, 2019. Net revenue is converted from US$ to Thai Baht, and then adjusted for inflation since the grant date of the concession using the average of the Thailand Consumer Price Index and Thailand Wholesale Price Index. The L53 Concession agreement was signed in 2007 and the Consumer and Wholesale Price Indices were, on average, 83.0 in January 2007 and 102.1 in 2019 resulting in a deflation factor of 0.813 as at the effective date. The future exchange rate used is 30.15 Thailand Baht for 1 U.S. Dollar.
Annual Revenue per Meter % < 4,800 0
> 4,800 but < 14,400 (Annual Revenue – 4,800) / 240
> 14,800 but < 33,600 40% + (Annual Revenue – 14,400) / 960
> 33,600 60% + (Annual Revenue – 33,600) / 3,840 max 75%
o The SRB tax rate is applied to the annual petroleum profit for the concession (revenue less royalties, capital petroleum expenditures and ordinary petroleum expenditures), and less any petroleum loss carried forward.
SRB is deductible for the calculation of income tax. This effectively cuts the SRB rate in half. If the SRB rate is 5%, then the the net impact on cash flow and net income is 2.5%.
Steve