Harbour Energy PLC (LSE:HBR) shares moved strongly higher in Thursday’s early deals after it reported a positive first half of 2025, with increased production and improved financials.
The company, in today’s half year results, said it generated $1.36 billion in free cash flow during the period, up from $0.38 billion in the same period last year.
Production rose to 488,000 barrels oil equivalent per day, thanks to the integration of the acquired Wintershall Dea portfolio.
Linda Cook, Harbour chief executive, highlighted that the Wintershall deal significantly enhanced the scale, resilience and longevity of the business.
“Through the integration of the Wintershall Dea portfolio and in the midst of market volatility, we took decisive action to strengthen our margins, high-grade our capital programme and accelerate cost initiatives," Cook said.
“These steps, along with the strong results from the first half, have enabled us to upgrade our free cash flow outlook for the year.”
Looking ahead, Harbour expects to produce between 460,000 and 475,000 boepd over the full year.
In London, Harbour shares were up 13.3% changing hands at 232p.
Daniel Slater, analyst at Zeus Capital, repeated a ‘buy’ recommendation which comes with a 262p price target.
“Harbour’s portfolio contains numerous opportunities for investment in organic growth, and we look for more news going forward to help give a better idea of the long-term trajectory for company production.
The analyst added: “Various projects continue to be matured up for future production additions, including Gjoa satellites in Norway, Kan and Zama in Mexico, and the Andaman discoveries in Indonesia.”
First half performance
Operating costs fell to $12.40 per barrel oil equivalent, representing around a 30% reduction compared to last year.
Adjusted profit after tax increased to $0.41 billion, with adjusted earnings per share of 22 cents. An interim dividend of 13.19 cents per share was declared, totalling $227.50 million.
Harbour Energy also announced a $100 million share buyback programme, launching on 8 August and potentially running until 31 March.
Cook noted that Harbour had improved its financial position by addressing near-term bond maturities and reducing net debt.
“As a result, we remain confident in our ability to deliver on our capital allocation priorities,” she said.
“These include further debt reduction and additional shareholder returns via share buybacks, as demonstrated by the new $100 million buyback programme announced today."
--Updated to include broker commentary and share price detail