Harbour Energy plc has announced its unaudited half-year results for the six months ended 30 June 2023. The company reported a production of 196 kboepd, in line with guidance and split equally between liquids and natural gas. Unit operating costs were $15/boe, slightly higher than the previous year. The company achieved a strong safety record with a TRIR of 0.8 per million hours worked. Harbour Energy also made progress in portfolio diversification, with the approval of the Zama unit development plan in Mexico and the Kan-1 oil discovery in Mexico. They also announced a multi-well exploration campaign in the Andaman Sea in Indonesia and the Viking and Acorn CO2 capture and storage projects in the UK were awarded Track 2 status by the government.
In terms of financial highlights, Harbour Energy reported an EBITDAX of $1.4 billion, a decrease from the previous year. Profit before tax was $0.4 billion, driven by a higher UK tax rate and one-off tax charges. The company reported a loss after tax of $8 million. Free cash flow for the period was $1.0 billion. Harbour Energy reduced its net debt to zero at the end of the period, down from $0.8 billion at the end of 2022 and $2.9 billion at the completion of the Premier Oil merger in April 2021. The company has announced total shareholder returns of approximately $1 billion since December 2021, including a $200 million share buyback and a $100 million interim dividend.
For the rest of 2023, Harbour Energy has narrowed its production guidance to 185-195 kboepd. Operating costs are expected to be around $16/boe. Total capital expenditure has been reduced from $1.1 billion to $1.0 billion due to the deferral and phasing of capex. The company forecasts a free cash flow of approximately $1.0 billion for the year, with lower commodity prices offset by reduced capex and positive working capital movements. Harbour Energy expects to have a net debt of approximately $0.2 billion at the end of the year and aims to be net debt-free in H1 2024.