Harbour Energy (HBR) H1 2024 earnings summary

Executive summary

• Delivered strong operational performance in H1 2024, with production averaging 159 kboepd and guidance narrowed upward.

• Maintained a positive net cash position and declared an 8% year-on-year increase in dividend per share.

• Significant progress on Wintershall Dea acquisition, targeting completion in early Q4 2024.

• Achieved strong safety performance, with a low incident rate and zero Tier 1 process safety events since 2021.

• Continued reduction in greenhouse gas emissions, targeting 15% lower in 2024 versus two years ago.

Financial highlights

• H1 2024 revenue was $1,916m, down from $2,016m in H1 2023, with EBITDAX at $1,216m and profit after tax of $57m, reversing a prior-year loss.

• Free cash flow totaled $383m after capex, tax, and acquisition fees; net cash position at period end was $45m.

• Operating costs remained stable at $534m; unit Opex increased to $18/boe due to lower volumes.

• $100m distributed to shareholders; dividend per share increased to $0.13, representing 8% growth year-on-year.

• Balance sheet stable with $9.9bn in total assets and low net financial liabilities.

Outlook and guidance

• 2024 production guidance narrowed to 155,000–165,000 boe/d, at the upper end of the original range.

• 2025 free cash flow expected to be significantly higher due to lower capex and stable production.

• Full-year unit Opex and CapEx guidance unchanged at ~$18/boe and $1.2bn, respectively.

• 2024 tax payments estimated at $0.9–$1bn, with $500m relating to 2023 liability.

• Wintershall Dea acquisition expected to significantly increase production and free cash flow.