Harbour Energy, the 海角视频's leading North Sea oil and gas producer, has reported a return to profit on Thursday despite experiencing a decline in revenue and a significant drop in free cash flow.
The FTSE 100 company has been impacted by the energy profit levy, enforced following the spike in energy prices in 2022, which saw it contending with a tax rate of 75 per cent for much of 2023.
However, Harbour announced that for the first half of the year ending June 30, its after-tax profits had climbed to £44.9 million, bouncing back from a £8 million loss in the first half of 2023.
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As a result, earnings per share rose to seven cents, recovering from a previous one-cent loss.
Pre-tax figures painted a less positive picture; revenue dropped four per cent from $2 billion to $1.9 billion, and pre-tax profits decreased from $429 million to $392 million, as reported by .
Additionally, operating cash flow declined to $953 million, while free cash flow cratered from $1 billion to $383 million, though the company anticipates a "considerably higher" figure in 2025.
Harbour also improved its production guidance for the full year, now estimating between 155,000 and 165,000 barrels of oil equivalent per day. This adjusted projection is centred above the previous range of 150,000 to 165,000 barrels.
Shares of the London-headquartered company experienced a modest increase of 1.7 per cent in morning trading.
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In anticipation of the reporting period, Harbour disclosed an acquisition worth $11.2 billion for Wintershall Dea's assets stretching across Norway, Denmark, Mexico, and Algeria.
The transaction came in the aftermath of Wintershall losing its grip on its Russian ventures, which were jointly owned with Gazprom. This followed an incident where €2bn (£1.72bn) was siphoned off from a joint account, leading to asset seizure by Russian authorities.
Harbour Energy's CEO, Linda Cook, commented: "During the first half of 2024 we maintained our focus on safe operations, maximising the value of our existing portfolio and advancing our organic growth projects."
"At the same time, we made significant progress towards completing the Wintershall Dea acquisition, which is now expected early in the fourth quarter."
"The acquisition will transform the scale, geographical diversity and longevity of our portfolio and strengthen our capital structure enabling us to deliver enhanced shareholder returns over the long run while also positioning us for further opportunities."