Harbour Energy continues to boost global footprint while targeting ‘material shareholder returns’
Harbour Energy, the largest London-listed independent oil and gas company has announced today it’s targeting free cash flow of $1bn (£800m) in its current financial year as the company benefits from higher oil prices.
In a trading update for the nine months to 30 September, the group told the market production averaged 189 thousand barrels of oil equivalent per day (kboepd) in the period, and it remained on track to hit a full-year production target of 185 to 195 kboepd.
Estimated revenue for the period was $2.9bn and the company reiterated its full-year capital spending guidance of $1bn (£800m).
Harbour, which has been a vocal critic of the UK’s oil and gas windfall tax, said it had advanced its international growth projects, to “materially increase our reserve life.” At the end of September, the group had projects underway in Indonesia and Mexico.
Harbour Energy’s share price has suffered this year, being down more than 25 per cent.
Including distributions paid to investors this year, and after the payment of taxes, Harbour Energy said it expected to be debt-free by the end of 2024.
During the period it also extended its reserve-based lending facility, increasing its borrowing base to $1.3bn (£1bn).
Cheif Linda Z Cook said: “We have continued to maximise the value of our UK oil and gas portfolio and to progress our diversification opportunities in Mexico, Indonesia and CCS while maintaining strong cost control and capital discipline.
“This has enabled significant free cash flow generation and a robust balance sheet, supporting material shareholder returns over and above our base dividend.”