Harbour Energy's full-year results 2021

17/03/22

2021 Operational highlights

  • Completed merger with Premier (the Merger); realisation of synergies progressing as planned
  • Production of 175 kboepd (2020: 173 kboepd); Q4 production of 214 kboepd
  • Successful drilling at J-Area, Elgin Franklin, AELE, Beryl (UK) and Natuna and Tuna (Indonesia)
  • 2P reserves increased to 488 mmboe, representing 157 per cent 2P reserves replacement
  • Working practices adapted to protect our employees and contractors from COVID-19; Total Recordable Injury Rate of 1.27 per million hours worked
  • Net Zero 2035 progress includes emissions reduction actions, continued involvement in two UK CCS projects and offsetting more than 25 per cent of our emissions
  • Alignment of portfolio with Harbour’s strategy, including exits from Sea Lion (Falkland Islands) and Brazil exploration licences

2021 Financial highlights1

  • Operating cash flow of $1.6 billion (2020: $1.4 billion). Free cash flow of $678 million (2020: $562 million)
  • Profit after tax of $101 million (2020: Loss after tax of $778 million)
  • EBITDAX increased to $2.4 billion, up 36 per cent (2020: $1.8 billion)
  • Opex and total capex lower than forecast at $15.2/boe (2020: $11.2/boe) and $935 million (2020: $698 million) respectively
  • Completed $500 million debut bond issuance with a coupon of 5.5 per cent
  • Year-end net debt of $2.3 billion (2020: $1.5 billion) before unamortised fees and 0.9x leverage (2020: 0.8x), in line with target of less than 1.5x through the commodity price cycle
  • Introduction of an initial $200 million annual dividend; proposed final dividend of $100 million (11 cents per share) for full year 2021 to be paid in May 2022 following shareholder approval

2022 Outlook

  • Production of 195-210 kboepd, a c. 15 per cent increase versus 2021; production of 219 kboepd to end February
  • Tolmount (UK): platform commissioning largely complete; start-up underway
  • Opex and total capex guidance unchanged at $15-16/boe and $1.3 billion respectively
  • Drilling at Catcher, J-Area, Beryl (UK); Natuna and Andaman II (Indonesia); and Chim Sao (Vietnam)
  • Continued progress to Net Zero by 2035, including activity on our UK CCS projects
  • At $100 /bbl, 200 p/therm, forecast free cash flow (after tax and $200 million dividend) of $1.5-1.7 billion with potential to be net debt free in 2023

2021 was a transformational year with completion of the Merger, our third significant transaction since 2017. As a result, we became a public company with a global footprint and the largest London-listed independent oil and gas company.

With our scale, our commitment to producing safely and responsibly, our robust balance sheet and track record of successful M&A, I believe we are well placed to deliver value creation, growth and shareholder returns.

I am proud of all we accomplished in our first year as a listed company and excited for our future.

Linda Z Cook, Chief Executive Officer

 

Enquiries

Harbour Energy plc
Elizabeth Brooks, Head of Investor Relations
Tel: 020 7824 1116

Brunswick
Patrick Handley / Will Medvei
Tel: 020 7404 5959

An analyst presentation will be held at 9.00am today and will be webcast live via our website.

  1. Definitions of Alternative Performance Measures (APMs) are included in the Glossary under Non-IFRS measures.

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