Harbour Energy (HBR) H1 2025 earnings summary

Executive summary

• Production averaged 488,000 bbls/day in H1 2025, up over 200% year-over-year, driven by the Wintershall Dea acquisition and new wells in Norway, Argentina, and the UK.

• Integration of Wintershall Dea assets is on track, enhancing scale, resilience, and free cash flow generation, with IT systems transition nearly complete.

• Safety performance remains above peer average, though incident rates increased post-acquisition; integration efforts are addressing identified gaps, especially in Germany and Mexico.

• Greenhouse gas intensity improved by over one-third, now below peer average, halved to 12 kgCO₂/boe.

• Divestment of Vietnam business completed post-period, and significant progress made on growth projects in Norway, Argentina, Mexico, and Indonesia.

Financial highlights

• Revenue and other income rose to $5.3bn (H1 2024: $1.9bn); EBITDAX increased to $3.9bn (H1 2024: $1.2bn).

• Free cash flow reached $1.36bn (H1 2024: $0.38bn); net debt reduced to $3.6bn (YE 2024: $4.4bn); leverage ratio improved to 0.5x (YE 2024: 1.1x).

• Adjusted profit after tax was $410m (H1 2024: $86m); adjusted EPS of 22 cents (H1 2024: 11 cents).

• Interim dividend of $228m (13.19 cents/share) declared; $100m share buyback announced; total 2025 shareholder payout expected at $555m.

• Investment grade credit ratings (Baa2/BBB-/BBB-) achieved and reaffirmed.

Outlook and guidance

• Full-year 2025 production guidance narrowed to 460,000–475,000 bbls/day, reflecting strong reliability and portfolio performance.

• Unit operating cost guidance lowered to ~$13.5/boe for FY 2025 (H1 actual: $12.4/boe).

• CapEx guidance maintained at $2.4–$2.5bn.

• Free cash flow outlook for 2025 increased to $1.0bn, with a payout ratio of ~55%.