Harbour Energy PLC (LON:HBR) flagged production for 2021 will be at the low-end of guidance as the recently merged Premier Oil and Chrysaor updated the market on trading.
Production was 162,000 barrels oil equivalent per day (197,000 pro-forma) in the five months ended May 31 amidst planned maintenance and inspection programmes that were deferred from 2020 to 2021. There were also unplanned outages.
The company, which was formed in March, previously set guidance at 185,000 to 200,000 boepd (200,000 to 215,000 boepd).
Chief executive Linda Cook said the majority of the planned maintenance shutdowns were nearing completion and drilling activity is ramping up and first gas is due shortly at the Tolmount project.
"Since completion of the merger, integration continues apace and we remain excited by the significant cash generation potential of the combined portfolios,” Cook said.
“Despite the impact of maintenance programmes and some unplanned outages, our financial performance has been robust, underlining the resilient cash-generative nature of our business.
“This, together with our strong balance sheet, provides financial flexibility to fund reinvestment in our portfolio, growth and shareholder returns.”
Harbour said operating costs per barrel of US$15.7 were due to the lower volumes and moved its full year forecast to US$15 to US$16. At the same time, capital spend was US$330mln in the five-month period and is forecast at US$1.1bn for the full year.
Net debt was reduced by US$200mln to US$2.7bn and the company said it had US$1bn of available liquidity.
Earlier this month, the company successfully redetermined its reserves based lending facility which set the facility’s availability at US$3.3bn until the end of June 2022.
In London, Harbour shares were down 1.76% in Wednesday’s early deals changing hands at 20.68p.