Harbour Energy plc
(“Harbour” or the “Company” or the “Group”)
Half-year results for the six months to 30 June 2022
25 August 2022

Harbour Energy plc today announces its half-year results for the period ended 30 June 2022. Performance for the comparator 2021 period is provided on a reported basis with Premier Oil’s portfolio included from 31 March 2021.

Strong operational performance

  • Production of 211 kboepd, a 40 per cent increase on H1 2021
  • Unit operating costs of $14.2/boe, a 5 per cent decrease on H1 2021
  • Improved safety performance with Total Recordable Injury Rate of 0.7 (H1 2021: 1.6)
  • Tolmount project start-up, boosting UK domestic natural gas supplies by over 5 per cent
  • Investment decisions taken on two UK projects – Talbot development and Leverett appraisal
  • Material gas discovery at the Timpan prospect in the Andaman Sea (Indonesia)
  • GHG intensity improved to 20.6 kgCO2e, a decrease of 13 per cent on H1 2021; UK CCS projects progressed

Robust financial results

  • Realised, post-hedging, oil and UK gas prices of $82/bbl and 69p/therm
  • EBITDAX of $2.0 billion
  • Profit after tax of $984 million including a pre-tax $360 million foreign exchange gain (relating to unrealised UK gas hedging losses) and income tax expense of $506 million
  • Earnings per share of $1.1
  • Total capex of $391 million, predominantly in the UK
  • Free cash flow of $1.4 billion after tax, pre-distributions
  • Net debt (excluding unamortised fees) and leverage reduced to $1.1 billion and 0.3x respectively
  • Successful RBL redetermination: liquidity of $2.2 billion, greater hedging flexibility going forward
  • Maiden dividend of $98 million paid in May; $100 million interim dividend declared
  • $200 million share buyback initiated in June and today increased to $300 million

2022 Guidance

  • Production guidance narrowed to 200-210 kboepd (195-210 kboepd previously)
  • Forecast unit opex expected towards the lower end of $15-16/boe guidance
  • Total capex reduced to $1.2 billion ($1.3 billion previously), primarily due to the delayed arrival of two drilling rigs in the UK
  • Forecast free cash flow1 for the full year 2022 increased to $1.8-2.0 billion (after c. $500 million of UK tax payments, before dividends and share buybacks); forecast to be net debt free in 2023 unchanged

Linda Z Cook, Chief Executive Officer, commented:

“We delivered a strong first half performance, realising value from past acquisitions, increased production efficiency and significant investment in our asset base. We improved our safety record, materially increased production, reduced GHG intensity and progressed our CCS projects while continuing to invest in our existing portfolio. Our Tolmount project alone – brought onstream in April – has increased UK domestic natural gas supply by over 5 per cent.  At a time when many are struggling with high energy prices, we are increasing investment by c.30 per cent compared to last year, focusing on doing what we can to deliver reliable, domestic oil and gas from our existing portfolio in a safe and responsible manner.

In an environment of considerable fiscal, economic and geopolitical uncertainty, our strategy to build a global, diversified oil and gas company focused on safe and responsible operations, value creation and shareholder returns remains valid.  We are financially strong and have continued to deleverage our balance sheet at pace. As a result, we have significant optionality over our future capital allocation including for continued organic investments, meaningful M&A and additional shareholder returns.”

1 Assumes Brent averages $100/bbl and UK NBP averages 200p/therm for the full year 2022 and 2023. 


Harbour Energy plc                                                                                Tel: +44 20 3833 2421

Elizabeth Brooks, Head of Investor Relations

Brunswick                                                                                                Tel: +44 20 7404 5959

Patrick Handley, Will Medvei

An analyst presentation will be held at 09.30 today and will be webcast live via our website.

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