Harbour Energy today announces its results for the year ended 31 December 2024.

Actuals to 31 December 2024 reflect the completion of the Wintershall Dea transaction on 3 September 2024 and include approximately four months of contribution from the acquired portfolio.

Linda Z Cook, Chief Executive Officer, commented: 
“2024 was a transformational year with the completion of the Wintershall Dea transaction, our fourth significant transaction since 2017. As a result, we achieved a step change in the scale, resilience and longevity of our business underpinning the potential for material free cash flow generation well into the next decade. At the same time, we delivered another year of solid operational and financial performance. 

“Looking to 2025, we have had a strong start to the year. We continue to prioritise safe and efficient operations, mature our significant 2C resource base and maintain disciplined capital allocation. We remain excited about our future and look forward to realising the potential of our company for all our stakeholders.”

Operational highlights 

• Completed transformational acquisition of Wintershall Dea portfolio; integration progressing as planned 
• Production of 258 kboepd (2023: 186 kboepd), a c.40 per cent increase on 2023 
• Unit operating costs of $16.5/boe (2023: $16.4/boe) 
• Total recordable injury rate of 1.0 per million hours worked (2023: 0.7) 
• Successful drilling in the UK, Norway, Argentina and Indonesia; new projects online in the UK and Argentina 
• Total capital expenditure (including decommissioning) of $1.8 billion (2023: $1.0 billion) 
• 2P reserves and 2C resources more than tripled to 3.2 bnboe (2023: 880 mmboe), representing 19 years 2P reserves and 2C resource life
• Appointment of Chief Operating Officer, Nigel Hearne, in February 2025

Financial highlights

• Revenue and EBITDAX of $6.2 billion (2023: $3.7 billion) and $4.0 billion (2023: $2.7 billion), up c.65 per cent and c.50 per cent respectively, versus 2023 
• Profit before tax of $1.2 billion (2023: $0.6 billion) impacted by c.$0.8 billion of period specific predominantly non-cash accounting charges largely driven by adverse changes to the UK fiscal regime 
• Loss after tax of $93 million (2023: $45 million profit) reflecting a 108% effective tax rate (2023 restated: 93%) 
• Free cash flow of $0.1 billion (2023: $1.0 billion), including a $0.5 billion negative working capital movement and before one-off acquisition-related costs and shareholder distributions. 
• Proposed final dividend of $227.5 million (13.19 cents per ordinary share), in line with Harbour’s increased annual dividend policy of $455 million ($380 million to be paid on the ordinary shares)
• Net debt before unamortised fees of $4.7 billion (2023: $0.2 billion); year-end leverage (net debt before unamortised fees/pro forma EBITDAX) of 0.7x (2023: 0.1x)
• Corporate and senior unsecured issue credit ratings upgraded to investment grade Baa2, BBB- and BBB- from Moody’s, S&P and Fitch, respectively

2025 outlook

• Production of 450-475 kboepd, a c.80% increase versus 2024; production of c.500 kboepd to end February 2025 
• Unit operating cost of c.$14/boe, a c.15% reduction versus 2024 
• Total capital expenditure (including decommissioning spend) of c.$2.4-2.6 billion
• At Brent oil price of $80/bbl and European and UK natural gas prices of $13/mscf, estimated free cash flow of c.$1.0 billion

Solid operational performance materially enhanced by acquisition 

Production averaged 258 kboepd (2023: 186 kboepd) during 2024, split c.40 per cent liquids, c.45 per cent European natural gas and c.15 per cent other natural gas. 

The c.40 per cent increase in production in 2024 versus 2023 was driven by the acquisition of the Wintershall Dea assets. The acquisition completed in September resulting in our expanded and diversified global portfolio achieving rates of c.500 kboepd in the fourth quarter with material contributions from Norway, the UK and Argentina. 

Production was also supported by new projects and development wells coming on-stream in the UK, Argentina and Norway in the second half of the year. Looking to 2025, production on a full year basis is expected to increase to between 450-475 kboepd reflecting a full 12 months’ contribution from the acquired Wintershall Dea assets and broadly stable production in the UK. 

Absolute operating costs for 2024 were $1.6 billion (2023: $1.1 billion) which, on a unit of production basis, equated to $16.5/boe (2023: $16.4/boe). This reflects the addition of the lower cost Wintershall Dea portfolio offset by higher unit operating costs at our UK assets due to lower production volumes. In 2025, unit operating costs are expected to reduce to c.$14/boe, benefitting from a full year’s contribution from the Wintershall Dea portfolio and continued management of our UK cost base. 

2024 capital expenditure including decommissioning totalled $1.8 billion (2023: $1.0 billion). The increase on the prior year reflects the additional capital expenditure associated with the acquired Wintershall Dea assets, and accelerated capital investment in the UK ahead of anticipated changes to the UK fiscal regime. 2025 total capital expenditure is expected to be between $2.4-2.6 billion, reflecting 12 months of the Wintershall Dea portfolio partially offset by materially reduced capital investment in the UK.

Producing assets 

The majority of Harbour’s capital programme is focused on infrastructure-led opportunities, converting reserves into production and cash flow. These opportunities are typically low risk, high return investments concentrated around our existing production hubs, predominantly in Norway, the UK, Argentina and Germany. 

In the UK, 2024 saw Harbour accelerate drilling around its operated hubs, taking advantage of tax credits which expired before year end 2024. This included a return to drilling at the Britannia satellite fields, with the Callanish F6 infill well on-stream in July while, at AELE, the North West Seymour well started up production in September. At Jocelyn South, Harbour made a gas condensate discovery which is being brought on-stream through their Judy platform post period end in Q1 2025. In addition, in November, Harbour delivered first oil from its operated Talbot project, a three well subsea tie-back to J-Area. The project marked a material milestone for Harbour.

In Norway, Harbour continued to mature their pipeline of high value, short cycle developments. This includes the Harbour-operated Maria Phase 2 project, a four well subsea tieback to existing infrastructure in the Maria field, with production start-up expected during summer 2025, and Dvalin North, a subsea tieback to Dvalin. At Dvalin North, fabrication of the subsea infrastructure is well advanced with development drilling expected to commence in 2026. Harbour has a proven exploration track record in Norway, helping to support reserve replacement. This continued in 2024 with six successes from six exploration and appraisal wells drilled, including the Storjo gas discovery and successful appraisal drilling at Adriana/Sabina, both potential tie-backs to the Skarv hub. 

In Argentina, Harbour holds a material non-operated position and is one of the country’s largest gas producers. Production at our offshore CMA-1 concession in the Tierra del Fuego province was supported by the Fenix gas project, comprising a three well unmanned platform tied into existing CMA-1 facilities, which came on-stream ahead of schedule in September. Onshore in the Neuquén province, a multi-pad drilling campaign is ongoing to maintain gas production from our Aguada Pichana Este concession in the Vaca Muerta unconventional play. Production is currently constrained by offtake and local market capacity. 

Elsewhere, in Germany, development activities across Harbour’s three production hubs continued to support stable production. In Egypt, the two Raven West infill wells at West Nile Delta were progressed with production startup from the first well achieved post period end in February 2025. In Indonesia, Harbour successfully amended its gas sales agreements with the Singapore buyers of Natuna Sea Block A gas, increasing the take-or-pay commitment under a tiered pricing structure, enabling higher production in the second half of 2024.

Reserves

As at year end 2024, Harbour’s proven and probable (2P) reserves on a working interest basis stood at 1.25 bnboe, more than three times higher than that at year end 2023 (2023: 0.36 bnboe). This increase was driven by the addition of 1.0 bnboe from the Wintershall Dea transaction, offsetting the impact of production by more than tenfold.

During 2024, Harbour’s 2C resources more than tripled to 1.91 bnboe (2023: 0.52 bnboe), driven by the Wintershall Dea transaction and providing significant reserve replacement opportunities. Organic additions to our 2C resources included exploration success in Indonesia, Norway and the UK, partially offset by revisions to our UK resources, largely the result of changes to the fiscal environment. Harbour’s 2C resources are split c.40 per cent in high value, near infrastructure opportunities, mainly in Norway, the UK and Argentina; c.30 per cent in conventional offshore growth projects in Mexico and Indonesia; with the remaining c.30 per cent in the globally competitive, unconventional Vaca Muerta shale play, onshore Argentina.

KeyFacts Energy: Harbour Energy UK country profile