Harbour Energy unveils $200m dividend policy

North Sea oil producer Harbour Energy on Thursday introduced a $200m annual dividend policy, as it prepared to host its first capital markets day since its merger.

Formerly known as Premier Oil, the company agreed a merger with Chrysaor in October 2020.

The new dividend policy is equivalent to 16p a share to be paid in two equal instalments, starting with a final dividend of $100m for 2021 in May 2022 after shareholder approval.

Harbour said it expected to produce 195,000-210,000 barrels of oil equivalent per day (boepd) next year, up from 175,000 boepd in 2021, driven by first gas from the delayed Tolmount project in the North Sea, which it expected to flow in the first quarter of 2022.

It also expected total capital expenditures of around $1.3bn next year.

The company also forecast production at around 200,000 boepd up until 2024, and guided for "materially higher free cash flow at current commodity prices".

“Harbour's strategy is to continue building a global diversified oil and gas company by reinvesting in its existing asset base while aiming to establish material production in another region over time,” it added in a statement.