Harbour Energy holds production guidance as weak prices hit 2023 profits

North Sea oil and gas producer Harbour Energy on Thursday held production guidance for 2024 as it reported a sharp fall in annual profits on the back of lower output and weaker prices.

Pre-tax profit for 2023 slumped to $597m from £2.46bn a year earlier when surging energy prices provided a cash bonanza for the sector.

Production fell to 186,000 barrels of oil equivalent per day from 208kboepd. Harbour said it still expected to produce 150-165 kboepd with production to end February of around 172 kboepd.

Free cash flow is expected to be marginally positive in 2024, after estimated cash tax of $1bn, assuming commodity prices of $85 a barrel for Brent crude oil and reduced UK gas prices of 70p/therm.

Reporting by Frank Prenesti for Sharecast.com