Harbour Energy PLC

Latest Results (17.05.2026):

Harbour Energy PLC — Full year 2025 results (year ended 31 December 2025). Harbour delivered record production and stronger cash generation in 2025 despite lower commodity prices, reporting revenue and adjusted EBITDAX growth alongside a higher adjusted profit after tax but a small reported loss after tax driven by tax changes and impairments. The company announced a new distributions policy linked to free cash flow, declared a final dividend for 2025, and moved to increase scale through several transactions (notably the post-period LLOG acquisition). Guidance for 2026 reflects the impact of recent deals and targets production of 475–500 kboepd with free cash flow of about $0.6bn under assumed prices.

Production & operations

Record production of 474 kboepd in 2025 (up 84% vs 2024’s 258 kboepd). Unit operating costs improved to $12.8/boe (down 22%). Safety TRIR was 1.1 per million hours. New wells/projects came online in the UK, Norway, Argentina and Egypt; exploration/appraisal successes in Egypt and Norway. 2P reserves and 2C resources at year end were 3.0 bnboe (2024: 3.2 bnboe).

Financial performance

Revenue and other income rose to $10.3bn (2024: $6.2bn). Adjusted EBITDAX increased to $7.2bn (2024: $4.1bn). Free cash flow rose to $1.1bn (2024: $0.1bn). Realised post‑hedge oil and European gas prices were $69/bbl and $13/mscf respectively. Adjusted profit after tax was $0.6bn (2024: $0.4bn), with adjusted EPS of 31 US cents (2024: 33c).

Reported loss, taxes & impairments

Reported loss after tax of $0.2bn (2024: loss $0.1bn). The result reflects a 106% effective tax rate and a $0.3bn deferred tax charge related to UK fiscal changes, plus $0.7bn of pre‑tax impairments and exploration write‑offs in North Africa, Mexico and CCS portfolios.

Shareholder distributions

New distributions policy links returns to free cash flow, targeting a 45–75% FCF payout range and introducing an initial base dividend. Harbour declared a 2025 final dividend of 8.05 cents per voting ordinary share ($150m), bringing total 2025 distributions to $478m (~45% of FCF). While leverage >1.0x the company expects to pay toward the lower end of the range to prioritise deleveraging.

Strategic transactions & portfolio

Material progress on portfolio: appointed operator for Zama (Mexico, Harbour 32%) with a phased FPSO plan; Southern Energy LNG (Argentina) construction underway (Harbour 15%); exited Vietnam and announced Indonesia divestments for $215m (expected Q2 2026); agreed $170m Waldorf (UK) acquisition with potential UK tax loss synergies; post‑period completed $3.2bn LLOG acquisition (US deepwater Gulf) to add oil-weighted, long‑life assets.

2026 guidance & balance sheet

Including LLOG (and assuming Indonesia and Waldorf complete end Q2 2026) Harbour expects 2026 production 475–500 kboepd (Feb average 509 kboepd incl. one month of LLOG), unit opex c.$14.5/boe, capex $2.2–2.4bn and free cash flow c.$0.6bn assuming $65/bbl Brent and $11/mscf gas. Net debt on LLOG completion was $7.2bn; leverage expected slightly above the <1.0x target at end‑2026, reducing to ~1.0x by 2028. Credit ratings: Baa2 (Moody’s, negative outlook), BBB‑ (Fitch, S&P with negative/watch status).