Harbour Energy : Half-year results for the six months to 30 June 2021

Harbour Energy plc
"Harbour" or the "Company" or the "Group"
Half-year results for the six months to 30 June 2021
23 September 2021

Harbour Energy plc today announces its half-year results for the period ended 30 June 2021. Financial and operational performance is provided on a reported basis with Premier Oil's portfolio included from 31 March 2021.

Highlights

• All share merger between Premier Oil plc ("Premier") and Chrysaor Holdings Ltd ("Chrysaor") completed; integration and realisation of synergies progressing as planned
• Reported production of 151 kboepd (H1 2020: 187 kboepd), impacted by planned maintenance programmes deferred from 2020 into 2021 due to COVID-19 and unplanned outages, partially offset by three months contribution from the Premier portfolio
• Operating costs per barrel¹ of $15.6/boe (H1 2020: $10.2/boe), reflecting lower production; total capex (including decommissioning spend) of $380 million (H1 2020: $364 million)
• EBITDAX¹ of $843 million (H1 2020: $920 million); increased profit after tax of $87 million (H1 2020 loss after tax: $155 million)
• Free cash flow¹ of $302 million (H1 2020: $475 million), after $206 million of tax payments (H1 2020 tax receipts: $7 million) largely relating to Chrysaor's 2020 UK activities
• Net debt¹, excluding unamortised fees, of $2.6 billion and leverage (net debt/proforma EBITDAX¹) of 1.2x at end of June; significant available liquidity in excess of $1 billion
• Steps taken to align the combined portfolio with Harbour's strategy, including the decision to explore the options to exit the Group's Sea Lion project in the Falkland Islands

Outlook

• 2021 reported production guidance of 170-180 kboepd reiterated; higher expected production in H2 with maintenance programmes completed, additional wells on-stream and a full contribution from the Premier portfolio
• Ramp up of drilling activity including two rigs in the J-Area and other units at Tolmount, AELE, Elgin Franklin and Beryl in the UK, and Tuna and Natuna Sea Block A in Indonesia
• Inspection and repair campaign progressing at the Group's Tolmount gas development (UK); first production expected around year end
• Forecast 2021 operating cost and total capital expenditure (including decommissioning spend) unchanged at $15-16/boe and $1.1 billion, respectively
• An update on the Company's strategy and capital allocation plans, including its dividend policy, will be provided at a capital markets day on 9 December 2021

Linda Z Cook, Chief Executive Officer, commented:

"The first half saw us deliver positive free cash flow and execute a significant transaction, whilst retaining a robust balance sheet. The extended maintenance programmes which impacted our production have completed, drilling activity has returned to pre-COVID-19 levels and the merger integration is progressing well, all underpinning strong future cash flow generation. We remain committed to producing oil and gas safely and responsibly, including our aim to achieve Net Zero by 2035."

Enquiries

Harbour Energy plc Tel: [phone]
Elizabeth Brooks, Head of Investor Relations

Brunswick Tel: [phone]
Patrick Handley, Will Medvei

Harbour will host a virtual presentation and Q&A session for investors and analysts at 09:00 (BST) today, 23 September 2021, accessible via our website: www.harbourenergy.com/investors.

¹Non-GAAP measures are defined in the Glossary.

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