Harbour Energy plc ('Harbour' or the 'Company' or the 'Group') today announces its unaudited half-year results for the six months ended 30 June 2023.
Production of 196 kboepd (H1 2022: 211 kboepd), in line with guidance and split equally between liquids and natural gas
Unit operating costs of $15/boe (H1 2022: $14/boe)
Strong safety record: TRIR of 0.8 per million hours worked (H1 2022: 0.7)
Portfolio diversification progressed:
Zama (Mexico) unit development plan approved by the regulator
Kan-1 oil discovery (Mexico); appraisal planning underway
Following the Timpan-1 discovery in 2022, a multi-well Andaman Sea (Indonesia) exploration campaign to commence in October
Viking and Acorn CO2 capture and storage (CCS) projects awarded Track 2 status by the UK government, an important milestone towards potential final investment decisions
EBITDAX of $1.4 billion (H1 2022: $2.0 billion)
Profit before tax of $0.4 billion (H1 2022: $1.5 billion); loss after tax of $8 million (H1 2022: profit of $1.0 billion) driven by a higher UK tax rate and one-off tax charges
Free cash flow (post-tax, pre-distributions) of $1.0 billion (H1 2022: $1.4 billion)
Zero net debt at period end, reduced from $0.8 billion at year-end 2022 and $2.9 billion at completion of the Premier Oil merger in April 2021
Total announced shareholder returns of c.$1 billion since December 2021, including: $200 million share buyback announced in March of which c.$160 million completed2 $100 million (12 cents per share) interim dividend declared, in line with $200 million annual dividend policy and representing nine per cent dividend per share growth year-on-year
Production guidance narrowed to 185-195 kboepd (185-200 kboepd previously)
Opex of c.$16/boe3 reiterated, reflecting strong cost control offset by stronger sterling
Total capex reduced from $1.1 billion to $1.0 billion due to deferral and phasing of capex
Forecast free cash flow (post-tax, pre-distributions) unchanged at c.$1.0 billion4 with lower commodity prices, especially UK natural gas prices, offset by reduced capex and positive working capital movements
Forecast year-end net debt of c.$0.2 billion, due to phasing of capex and timing of tax payments; forecast to be net debt free in H1 20244
Linda Z Cook, Chief Executive Officer, commented: 'We remain focused on maximising the value of our UK oil and gas portfolio, advancing our organic development projects and disciplined capital allocation. 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.'
Total buyback value completed as at 23 August 2023.
2023 full year sterling to US dollar exchange rate forecast increased to $1.25/GBP from $1.2/GBP.
Assumes Brent averages $80/bbl, UK NBP averages 100 pence/therm and sterling averages $1.25/GBP for full year 2023 and 2024. Prior free cash flow forecast of $1 billion assumed $85/bbl, 150 pence/therm and $1.2/GBP for 2023.
Tel: +44 20 3833 2421