Harbour Energy has announced its results for the year ended 31 December 2024.
Actuals to 31 December 2024 reflect the completion of the Wintershall Dea transaction on 3 September 2024 and include approximately four months of contribution from the acquired portfolio.
Linda Z Cook, Chief Executive Officer, commented:
'2024 was a transformational year with the completion of the Wintershall Dea transaction, our fourth significant transaction since 2017. As a result, we achieved a step change in the scale, resilience and longevity of our business underpinning the potential for material free cash flow generation well into the next decade. At the same time, we delivered another year of solid operational and financial performance.
'Looking to 2025, we have had a strong start to the year. We continue to prioritise safe and efficient operations, mature our significant 2C resource base and maintain disciplined capital allocation. We remain excited about our future and look forward to realising the potential of our company for all our stakeholders.'
Operational highlights
- Completed transformational acquisition of Wintershall Dea portfolio; integration progressing as planned
- Production of 258 kboepd (2023: 186 kboepd), a c.40 per cent increase on 2023
- Unit operating costs of $16.5/boe (2023: $16.4/boe)
- Total recordable injury rate of 1.0 per million hours worked (2023: 0.7)
- Successful drilling in the UK, Norway, Argentina and Indonesia; new projects online in the UK and Argentina
- Total capital expenditure (including decommissioning) of $1.8 billion (2023: $1.0 billion)
- 2P reserves and 2C resources more than tripled to 3.2 bnboe (2023: 880 mmboe), representing 19 years 2P reserves and 2C resource life
- Appointment of Chief Operating Officer, Nigel Hearne, in February 2025
Financial highlights
- Revenue and EBITDAX of $6.2 billion (2023: $3.7 billion) and $4.0 billion (2023: $2.7 billion), up c.65 per cent and c.50 per cent respectively, versus 2023
- Profit before tax of $1.2 billion (2023: $0.6 billion) impacted by c.$0.8 billion of period specific predominantly non-cash accounting charges largely driven by adverse changes to the UK fiscal regime
- Loss after tax of $93 million (2023: $45 million profit) reflecting a 108% effective tax rate (2023 restated: 93%)
- Free cash flow of $0.1 billion (2023: $1.0 billion), including a $0.5 billion negative working capital movement and before one-off acquisition-related costs and shareholder distributions.
- Proposed final dividend of $227.5 million (13.19 cents per ordinary share), in line with Harbour's increased annual dividend policy of $455 million ($380 million to be paid on the ordinary shares)
- Net debt before unamortised fees of $4.7 billion (2023: $0.2 billion); year-end leverage (net debt before unamortised fees/pro forma EBITDAX) of 0.7x (2023: 0.1x)
- Corporate and senior unsecured issue credit ratings upgraded to investment grade Baa2, BBB- and BBB- from Moody's, S&P and Fitch, respectively
2025 outlook
- Production of 450-475 kboepd, a c.80% increase versus 2024; production of c.500 kboepd to end February 2025
- Unit operating cost of c.$14/boe, a c.15% reduction versus 2024
- Total capital expenditure (including decommissioning spend) of c.$2.4-2.6 billion
- At Brent oil price of $80/bbl and European and UK natural gas prices of $13/mscf, estimated free cash flow of c.$1.0 billion
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Source: Harbour Energy
