Harbour Energy shares soared 10% to 473.6p in late morning trading on Thursday after the company announced a revenue and other income growth to $2.6 billion in HY1 2022 compared to $1.4 billion in HY1 2021.
Harbour Energy linked its higher revenue to increased realised liquid and gas prices and rising production volumes associated with a full six months of Premier production against approximately three months in HY1 2021.
The energy group reported an EBITDAX rise to $2 billion against $843 million, along with a pre-tax profit of $1.4 billion from $120 million and a post-tax profit of $984 million compared to $87 million.
Harbour Energy attributed its spiking profits to revenue growth after a full six months of Premier production, however profits were slightly offset by higher operating costs over the term.
The company highlighted an EPS of $1.1 compared to 10c the year before.
Harbour Energy also narrowed its net debt to $992 million in the interim term compared to $2.1 billion in HY1 2021.
“We delivered a strong first half performance, realising value from past acquisitions, increased production efficiency and significant investment in our asset base,” said Harbour Energy CEO Linda Z Cook.
“We improved our safety record, materially increased production, reduced GHG intensity and progressed our CCS projects while continuing to invest in our existing portfolio. Our Tolmount project alone – brought onstream in April – has increased UK domestic natural gas supply by over 5 per cent.”
“At a time when many are struggling with high energy prices, we are increasing investment by 30 per cent compared to last year, focusing on doing what we can to deliver reliable, domestic oil and gas from our existing portfolio in a safe and responsible manner.”
Dividend and share buyback programme
Harbour Energy confirmed a HY1 2022 dividend of 11c per ordinary share. The firm also mentioned it had repurchased 11.9 million of its own shares for $53.5 million at 30 June 2022, with an extra 26.3 million shares repurchased between 1 July and 24 August for $112.5 million as part of its $200 million share buyback programme.
The company announced it had extended its programme to $300 million on 25 August 2022.
“In an environment of considerable fiscal, economic and geopolitical uncertainty, our strategy to build a global, diversified oil and gas company focused on safe and responsible operations, value creation and shareholder returns remains valid,” said Cook.
“We are financially strong and have continued to deleverage our balance sheet at pace. As a result, we have significant optionality over our future capital allocation including for continued organic investments, meaningful M&A and additional shareholder returns.”