Mubasher: BP on Tuesday announced it would incur a $1.5 billion charge in 2017’s fourth quarter’s earnings because of the US tax reform.

However, the cut in US Corporate income tax from 35% to 21% will benefit the British oil and gas company in the long term, BP said, noting that the charge won’t affect its cash flow.

With this announcement, BP joins a number of companies whose earnings will be impacted by the tax reform such as its rival Royal Dutch Shell which said last week that it expected a $2 billion to $2.5 billion dent in its fourth quarter earnings.

“The ultimate impact of the change in the U.S. corporate income tax rate is subject to a number of complex provisions in the legislation which BP is reviewing,” BP added.