Harbour Energy FY production grows, will review UK operations
By Iain Gilbert
Date: Thursday 19 Jan 2023
(Sharecast News) - Oil and gas company Harbour Energy said on Thursday that full-year production had increased just 24 hours after confirming it is reviewing its UK operations following a hike in the windfall tax rate in 2022.
Harbour said production increased 19% year-on-year to 208,000, towards the top end of its 200,000-210,000 barrels of oil per day guidance and split 50% between liquids and 50% gas.
The FTSE 250-listed group stated expects revenues to be roughly $5.4bn, with realised post-hedging oil and UK gas prices of $78 per barrel.
However, while estimated EBITDAX was pegged to be about $4.1bn, up from $2.4bn, post-tax earnings were impacted by "a significant one-off non-cash deferred tax charge" associated with the UK's Energy Profits Levy.
"As a result of the increase in an extension of the EPL, the revaluation deferred tax charge will be materially higher than the previously estimated $600.0m charge disclosed in our 2022 half-year results," warned Harbour.
Amid media reports on Wednesday that the company was looking to cut hundreds of jobs, Harbour told Sharecast: "Following changes to the EPL, we have had to reassess our future activity levels in the UK.
"We will continue to support investment on the many attractive opportunities within our existing portfolio, but we are scaling back investment in other areas such as new exploration licensing. As such, we have initiated a review of our UK organisation to align with lower future activity levels."
As of 0850 GMT, Harbour shares were down 2.63% at 314.30p.
Reporting by Iain Gilbert at Sharecast.com
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