Our purpose

To play a significant role in meeting the world's energy needs through the safe, efficient and responsible production of hydrocarbons, while creating value for our stakeholders.

Our strategy

To create value by continuing to build a global, diversified oil and gas company focused on value creation, cash flow and distributions.

Key facts
  • Largest London-listed independent oil and gas company.
  • Holds a leading position in the UK as well as interests in Indonesia, Vietnam, Mexico and Norway.
  • c.1,800 employees worldwide.
  • Global production >208 kboepd.
  • c.15% of the UK's domestic gas supply was produced by Harbour (2022).
  • Low-cost operator at $13.9/boe (2021: $15.2/boe).
  • 865mmboe 2P reserves and 2C resources (2021: 948 mmboe).
  • $4.0bn EBITDAX* (2021: $2.4bn).
  • $2.1bn free cash flow (2021: $678m).
  • 0.2x leverage ratio** (2021: 0.9x).
  • $600m shareholder returns approved (2021: $nil).

*EBITDAX is a non-IFRS measure calculated by taking earnings before tax, interest, depreciation and amortisation, impairments, remeasurements, onerous contracts and exploration expenditure. This is a useful indicator of underlying business performance.

**Leverage ratio is a non-IFRS measure calculated by net debt/last 12 months of EBITDAX.

Focus areas:
  • Protect the safety and wellbeing of our people.
  • Invest in our assets to maximise value, including to improve efficiency and the recovery of oil and gas.
  • Safeguard the communities in which we operate and protect the environment.
  • Progress towards our Net Zero 2035 goal.
  • Collect efficient and reliable data to track our performance and support our goals.
How we delivered in 2022:
  • Improved safety record, with reduced TRIR and number of process safety events.
  • Increased production, increased operating efficiency and reduced unit operating cost.
  • Established an interim target of 50 per cent reduction in our emissions in 2030 compared to a 2018 baseline.
  • Implemented new business and enterprise management systems which are scalable and future proof.
Target outputs:
  • Continuous improvement in our safety and environmental performance.
  • Maintain a competitive cost structure as assets mature.
  • Top quartile operational performance.
Focus areas:
  • Ensure robust margins through commodity price volatility.
  • Maintain balance of oil and gas.
  • Maintain access to profitable investment opportunities.
  • Ensure longer-term organic and inorganic investment options to replace/grow reserves.
  • Rigorous prioritsation and capital allocation process.
How we delivered in 2022:
  • Ongoing hedging programme to underpin predictability of cash flow.
  • Collaborated with other operators to realise efficiencies and unlock investment opportunities.
  • Progressed organic growth opportunities, including Talbot (UK), Zama (Mexico) and Timpan (Indonesia).
  • Reserve replacement impacted by downward revision of reserves at the Tolmount field (UK).
  • Review of investment levels and company-wide capital allocation following announcement of materially increased taxes in the UK.
Target outputs:
  • Prudent capital allocation.
  • High quality investment pipeline.
  • A diverse mix of oil and gas.
  • 2P reserves life of 8-10 years.
Focus areas:
  • Leverage our global footprint, full cycle capabilities and mergers and acquisition (M&A) expertise to diversify and expand our investment opportunity set.
  • Harness our deep organisational competence and operating skills to drive standards, efficiencies and controls over capital expenditure levels.
How we delivered in 2022:
  • Material offshore gas discovery with play-opening Timpan-1 well on our Andaman II licence (Indonesia).
  • Continued progress with integration efforts, including consolidation of supplier contracts to drive greater efficiency and cost savings, following recent acquisitions.
  • Renewed focus on geographic diversification in response to material deterioration in UK investment climate but market conditions for M&A were challenging due to high and volatile commodity prices.
  • Responsible decommissioning of retired oil and gas infrastructure where not possible to repurpose it for use in carbon capture and storage (CCS) projects.
Target outputs:
  • Increased production levels and reserve life.
  • High margin, diverse and geographically balanced portfolio.
  • A material base of production outside the UK.
  • UK CCS projects advanced.
Focus areas:
  • Disciplined annual budget and long-term planning process.
  • Conservative financial risk management policy, including a disciplined hedging programme.
  • Ensure competitive shareholder returns, including a sustainable dividend.
How we delivered in 2022:
  • Reduced net debt by $1.5 billion to $0.8 billion excluding unamortised fees and leverage to 0.2x from 0.9x.
  • Greater flexibility around hedging strategy, allowing increased exposure to market pricing while continuing to protect the downside.
  • Approved $400 million of share buybacks, in addition to $200 million annual dividend.
Target outputs:
  • Maintain a strong balance sheet, with the potential for an investment grade credit rating.
  • Conservative leverage profile and significant liquidity.
  • Increased, sustainable shareholder returns.
  • Move towards a more unsecured debt financing structure.
Leverage existing global footprint

Licences held internationally

Selective investment in growth projects

International capital investment (in 2022)

Disciplined approach to mergers and acquisitions

Divestments targeted by oil and gas companies

High return, infrastructure led investment portfolio

IRR targeted by UK development and drilling (in 2023)

High quality UK asset base/material stakes in long life assets

Out of the 10 largest UK fields are in our portfolio

Deep operator competence including in decommissioning

Wells plugged and abandoned by Harbour in the UK Southern North Sea (since 2014)

*Value of divestment opportunities either in process or expected to come to market in the near term based on estimate provided by an Investment Bank.