Oil and gas giant BP estimates a one-time charge of $1.5 billion will affect its fourth quarter 2017 results due to new U.S. tax regulations.
"The lowering of the US corporate income tax rate to 21 percent requires revaluation of BP's US deferred tax assets and liabilities," the company said in a statement.
BP, like many other international companies, said it expected a positive impact to its U.S. earnings in the long run. It is scheduled to unveil its fourth-quarter figures on February 6.
On Dec. 22, Trump signed the tax overhaul into law, cutting tax rates for businesses and offering some temporary cuts for some individuals and families.
The measure is expected to boost corporate profits of banks and other companies over the medium and long term by lowering the corporate tax rate to 21 percent from 35 percent.
The reform taxes these earnings at 15.5 percent on cash and equivalents and eight percent on real estate and other illiquid assets.
However, several large corporations have signaled that the law will result in a short-term hit on earnings re-treated from overseas.
Other large companies that have indicated to large one-time hits for the fourth quarter include BP's key rival Royal Dutch Shell, as well as banking groups Barclays and Credit Suisse.