Harbour Energy swings to annual profit on higher revenue
Harbour Energy Plc
272.15p
16:30 08/10/24
North Sea oil and gas producer Harbour Energy reported a return to profits in its first results since its merger with Premier Oil.
Pre-tax profit for the year to December 31 came in at $315m compared with a loss of almost $1bn in 2020 as the Covid-19 pandemic battered demand and the oil price plunged.
Revenue climbed to $3.6bn last year from $2.4bn in 2020. The improved results were driven by higher revenue and lower impairments, offset by higher cost of sales and exploration and evaluation expenses.
Harbour said it had free cashflow of $678m during the year, and added that this could rise to $1.5bn - $1.7bn at an oil price of $100 a barrel and a gas price of 200 pence per therm, after tax and dividends.
The company forecast production of between 195,000 to 210,000 barrels of oil equivalent per day (boe/d) this year, compared with 175,000 boe/d in 2021. Oil prices surged well beyond $100 a barrel after Russia’s invasion of Ukraine.
Harbour has hedged about 26 million barrels at an average price of $61.05-$61.15 a barrel of output for the next two years. Out of its gas production, it hedged 25.37 million boe in 2022 at an average price of 50.75 p/therm and 23 million boe in 2023 at an average 40.86 p/therm.