Murphy Lowers Income Forecast on UK Tax Law Change

Due to recent changes in the UK tax law, Murphy is now predicting that its net income will be reduced by $4.8 million during that last three quarters of this year. According to the company's quarterly report for the period ended March 31, filed Monday with the SEC, U.K. tax authorities announced in April that the corporation tax rate would increase to 40% from 30% for profits associated with North Sea oil production. It was also announced that the first-year allowance for North Sea capital expenditures would increase from 25% to 100%, the filing said. Murphy Oil's U.K. operations earned $13.2 million in the first quarter of 2002.