Harbour Energy has announced its unaudited half-year results for the six months ended 30 June 2025.
Linda Z Cook, Chief Executive Officer, commented:
'Harbour delivered strong first-half results driven by excellent operational execution and reflecting the benefits of the Wintershall Dea acquisition which significantly enhanced the scale, resilience and longevity of our business, supporting significant free cash flow generation. Through the integration of the Wintershall Dea portfolio and in the midst of market volatility, we took decisive action to strengthen our margins, high-grade our capital programme and accelerate cost initiatives. These steps, along with the strong results from the first half, have enabled us to upgrade our free cash flow outlook for the year. In addition, we improved our financial position by addressing near-term bond maturities and reducing net debt. As a result, we remain confident in our ability to deliver on our capital allocation priorities. These include further debt reduction and additional shareholder returns via share buybacks, as demonstrated by the new $100 million buyback programme announced today.'
Strong operational delivery; growth opportunities matured
- Increased and diversified production of 488 kboepd (H1 2024: 159 kboepd)
- Unit operating costs c.30% lower at $12.4/boe (H1 2024: $18.5/boe)
- Safety incident rate (TRIR) of 1.1 per million hours worked (H1 2024: 0.7)
- Net equity GHG intensity more than halved to 12 kgCO2/boe (H1 2024: 27 kgCO2/boe)
- New wells on-stream including at Maria Phase 2 (Norway), the Vaca Muerta (Argentina) and in the UK; approved developments on track including start-up of Dvalin North (Norway) in late 2026
- Investment decision taken on Southern Energy SA, a 6 mtpa phased LNG project in Argentina, creating the potential to unlock significant value for our Vaca Muerta gas
- Kan (Mexico) gross 2C resources estimate upgraded by 50% to c.150 mmboe (Harbour share 70%)
- Completed divestment of the Vietnam business on 9 July, post-period end, marking an exit from the country
Significant free cash flow generation; strong financial position
- Realised post-hedge oil and European gas prices of $71/bbl and $13/mscf (H1 2024: $85/bbl and $8/mscf), respectively
- Increased revenue and other income of $5.3bn (H1 2024: $1.9bn) and EBITDAX of $3.9bn (H1 2024: $1.2bn)
- Increased free cash flow of $1.36bn (H1 2024: $0.38bn); net debt1 excluding unamortised fees reduced to $3.8bn (YE 2024: $4.7bn) and leverage reduced to 0.5x (YE 2024: 1.1x)
- Reported loss after tax of $0.2bn (H1 2024: profit $0.1bn) impacted by $0.3bn deferred tax charge associated with changes to the UK fiscal regime and $0.2bn of net foreign exchange losses
- Increased adjusted profit after tax of $0.4bn (H1 2024: $0.1bn) equating to higher adjusted earnings per voting ordinary share of 22 cents (H1 2024: 11 cents)
- Successful issuance of $0.9bn of senior notes and €0.9bn of subordinated notes, effectively pre-funding all maturities to 2028
- Investment grade credit ratings with stable outlook confirmed
Improved 2025 outlook; increased shareholder distributions
- Production guidance further narrowed upwards to 460-475 kboepd (from 455-475 kboepd), with the divestment of Vietnam more than offset by strong production performance to date
- Unit operating cost guidance lowered to c.$13.5/boe (previously c.$14/boe)(2), reflecting the improved production outlook, cost savings and divestment of Vietnam partially offset by the weaker US dollar
- Total capital expenditure guidance unchanged at $2.4-$2.5bn
- Free cash flow outlook increased to c.$1.0bn (from $0.9bn)(3), driven by continued strong operational delivery
- Interim dividend of $227.5m, 13.19 cents per voting ordinary share (H1 2024: 13.00 cents), in line with $455m annual dividend policy
- New $100m share buyback programme announced, bringing expected total payout of free cash flow to c.55% for the year(4)
About Harbour Energy
Since its creation in 2014, Harbour has grown to become one of the world’s largest and most geographically diverse independent oil and gas companies.
Today, Harbour is producing over 450,000 barrels of oil equivalent per day with significant production in Norway, the UK, Germany, Argentina and North Africa. Harbour benefits from competitive operating costs and resilient margins, and a broad set of growth options including near-infrastructure opportunities in Norway, unconventional scalable opportunities in Argentina and conventional offshore projects in Mexico and Indonesia.
With low GHG emissions intensity and a leading CO2 storage position in Europe, Harbour remains committed to producing oil and gas safely and responsibly to help meet the world’s energy needs.
Harbour is headquartered in London with approximately 3,400 employees and direct contract staff across its operations and offices.
- Net debt excludes $0.2bn of mark-to-market cross-currency swaps benefit as at 30 June 2025.
- Includes tariffs. 2025 guidance of $13.5/boe assumes $1.35/£, $1.15/€ and a NOK10.25/$ for H2 2025. Previous guidance of c.$14/boe assumed $1.30/£, $1.1/€ and NOK10.5/$ for Q2-Q4 2025.
- This is based on average 2025 Brent and European gas prices of $68/bbl and $12.7/mscf equating to c.$65/bbl and c.$12/mscf for H2 2025.
- Based on Harbour’s free cash flow outlook of $1.0bn and assuming the buyback completes by year end 2025.
Download 2025 Half-Year Results
Source: Harbour Energy
