Harbour Energy plc swung to loss during the first six months of the year following high taxes and falling commodity prices.
FINANCES
Results for H1 2023 show profit before tax of $0.4 billion (H1 2022: $1.5bn) and loss after tax of $8 million (H1 2022: profit of $1bn).
Revenue decreased to $1,991 million (H1 2022: $2,659m) after realised hedging losses of $486m (H1 2022: $1,603m), driven by lower oil production and gas prices.
Tax amounted to $437m (H1 2022: $506m)
The company held zero net debt, reduced from $0.8bn at the end of 2022 and $2.9bn at completion of the Premier Oil merger in April 2021, and free cash flow of $1bn (H1 2022: $1.4bn).
A total $160m has been completed of a $200m share buyback announced in March.
Produced reached to 196 kboepd (H1 2022: 211 kboepd) in line with guidance with equal liquids and natural gas, reflecting contributions from new wells at Harbour-operated Tolmount and J-Area hubs in the UK offset by natural decline.
GUIDANCE
Full year 2023 production guidance is narrowed to 185-195 kboepd, reflecting delays and drilling delays at partner-operated hubs, primarily Beryl.
Harbour posted total recordable incident rate of 0.8 per million hours worked (H1 2022: 0.7).
Year-end net debt is forecast at $0.2bn due to phasing of capital expenditure and timing of tax payments. The company expects to be net debt free during H1 2024.
“We remain focused on maximising the value of our UK oil and gas portfolio, advancing our organic development projects and disciplined capital allocation,” said chief executive officer Linda Z Cook.
“This has allowed us to continue to generate significant free cash flow supporting material shareholder distributions while maintaining capacity for meaningful but disciplined M&A.
“We have also progressed our strategic investment opportunities outside of UK oil and gas – in Indonesia, in Mexico and in CCS.
“These have the potential to materially increase our reserve life, support shareholder returns and diversify our company over time.”