Harbour Energy Plc · LSE:HBR

Harbour Energy — H1 2025 Earnings Presentation

28 slides from Harbour Energy's earnings presentation, Aug 7, 2025

  1. Slide 1: 2025 Half-year results

    2025 Half-year results Harbour Energy plc 7 August 2025 www.harbourenergy.com

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Harbour Energy plc (the “Company”) for general information purposes in relation to its half-year results and may contain forward-looking statements, estimates, and projections regarding results of operations, business plans, and performance of the Co

  3. Slide 3: Agenda

    Agenda H1 2025 Highlights Operational review Financial review Guidance and outlook Closing remarks Q&A Harbour Energy | 2025 Half-year results 2

  4. Slide 4: H1 2025 Highlights

    H1 2025 Highlights Consistent strategy delivering growth and material cash flow ▪ Significantly enhanced scale and resilience ▪ Excellent operational execution; acquisition integration on track ▪ Decisive action taken in response to volatile commodity prices ▪ Capital projects on track; growth oppor

  5. Slide 5: Operational review

    : Operational review

  6. Slide 6: A focus on safe and responsible operations

    A focus on safe and responsible operations Trends reflect 2024 Wintershall Dea acquisition; focused on driving safety performance across expanded portfolio Occupational safety Process safety Greenhouse gas emissions intensity3 TRIR1 (per million hours worked) PSER1 (Tier 1/2 events per million hours

  7. Slide 7: A strong H1 performance; 2025 production guidance further narrowed upwards

    A strong H1 performance; 2025 production guidance further narrowed upwards Guidance narrowed Production kboepd 460-475 kboepd (from 455-475 kboepd) 488 >3x Other gas European J-Area (UK): Production at rates not seen since 2013, with new wells online gas ▪ Materially increased and diversified produc

  8. Slide 8: A competitive cost base underpinning robust margins

    A competitive cost base underpinning robust margins Operating costs1 Unit operating cost1 Guidance $bn $/boe lowered (from c.$14) Unit costs down c.30% from H1 2024 1.1 18.5 c.30% ▪ Addition of lower cost Wintershall Dea portfolio c.13.5 ▪ Cost controls offset impact of weaker USD 12.4 0.5 Guidance

  9. Slide 9: Focusing capital investment on our highest return, most competitive projects

    Focusing capital investment on our highest return, most competitive projects Significant reduction in total capex/boe from $21 in H1 2024, to c.$14 for FY 20251 Guidance reiterated Total capex, $billion $2.4-2.5 billion Capital projects on track (Narrowed in May) ▪ Norway: Maria Ph 2 start up (May);

  10. Slide 10: Large and diverse 2C resource base underpinning material, sustainable cash flow

    Large and diverse 2C resource base underpinning material, sustainable cash flow Maturing the highest return, most competitive projects within our disciplined financial framework 2P reserves and 2C resources1 bnboe 1.9 Key focus Other maturing 2C into 2P 2 High value, short cycle projects Vaca Muerta

  11. Slide 11: Portfolio sustains material production well beyond 2030

    Portfolio sustains material production well beyond 2030 Production Guidance Norway UK kboepd 460-475 kboepd Argentina Mexico Other 500 ▪ 2025-27 production averages c.450 kboepd ▪ New production in Norway, Argentina and – over time – Mexico offsetting UK decline Long term, ‒ Norway projects online 2

  12. Slide 12: Financial review

    Financial review

  13. Slide 13: 2025 H1 Financial highlights

    2025 H1 Financial highlights Free cash flow $1.36bn ▪ Excellent operational delivery and benefits of Wintershall (H1 2024: $0.38bn) Dea acquisition reflected in financials Adjusted earnings per voting ordinary share ▪ Step up in scale, resilience and longevity of cash flow 22 cents (H1 2024: 11 cent

  14. Slide 14: Macroeconomic backdrop

    Macroeconomic backdrop Significant commodity price and FX volatility BRENT PRICE DEVELOPMENT ($/BBL) TTF PRICE DEVELOPMENT ($/mmbtu) USD DEVELOPMENT ($/€, $/£) Semi-annual $/€ 1.08 1.08 1.09 averages 84 78 72 9.3 12.4 13.1 $/£ 1.27 1.29 1.30 100 20 $/€ $/£ 1.40 95 18 1.35 90 1.30 16 85 1.25 80 14 1.

  15. Slide 15: Income Statement

    Income Statement Step change in underlying profitability of the business H1 2025 H1 2024 Realised oil / Euro. gas prices $ million Reported Adjusts Adjusted1 Reported Adjusted1 $71/bbl; $13/mscf Total Revenue and other income 5,271 5,271 1,916 1,916 (H1 2024: $85/bbl; $8/mscf) Operating costs and G&

  16. Slide 16: H1 2025 Cash flow

    H1 2025 Cash flow Significant free cash flow generation driven by strong operational performance and reflects phasing of tax payments $ billion Significant liquidity 0.2 $5.1 billion 1.1 (31 Dec 2024: $2.7bn) 0.1 1.4 0.3 3.8 1.0 2.7 0.2 Free cash flow 0.8 $1.36 billion (H1 2024: $0.38bn) Cash Gross

  17. Slide 17: Strengthened financial position

    Strengthened financial position Debt maturities pre-funded through to 2028 Net debt1,2 materially reduced $ billion Successfully issued c.$1.9bn of notes: ▪ $0.9bn of senior notes, repurchasing $0.3bn $0.9bn 4.7 of 2026 senior notes ▪ €0.9bn of subordinated notes (hybrids), repurchasing €0.5bn subor

  18. Slide 18: 2025 free cash flow outlook improved

    2025 free cash flow outlook improved +/-$5/bbl FY Brent or Shareholder distributions $ billion +/-$1/mscf FY Eur. gas +/-$115m FCF increased 1.0 0.1 1.0 2025 interim dividend of $227.5m declared, per annual 0.3 0.9 0.90 0.2 dividend policy New $100 million share buyback announced Expected 2025 free

  19. Slide 19: Prudent risk management with a systematic approach to hedging

    Prudent risk management with a systematic approach to hedging Hedging to protect the balance sheet while maintaining price appreciation exposure amidst volatile market ▪ Significant hedge position European gas volumes hedged Liquid volumes hedged with $0.4bn mark to market c.20% Volumes hedged, kboe

  20. Slide 20: Guidance and outlook

    : Guidance and outlook

  21. Slide 21: Improved guidance and outlook after strong H1 performance

    Improved guidance and outlook after strong H1 performance FY 2025F1 FY 2025F2 H1 FY 20253 (Jan 2025) (May 2025) Actual (Aug 2025) Production 450-475 455-475 488 460-475 kboepd Guidance Unit opex $/boe c.14 c.14 12.4 c.13.5 Total capex4 $bn 2.4-2.6 2.4-2.5 1.1 2.4-2.5 Brent oil 80 68 72 68 $/bbl (H2:

  22. Slide 22: Capital allocation priorities

    Delivering returns-focused value Capital allocation priorities Outlook (2025-2027) 1 Investment grade balance sheet strength ▪ Investment grade credit rating ▪ <1.0x leverage ratio 1 ▪ c.$0.5-1.0bn debt reduction 3 2 Robust and diverse portfolio ▪ c.450 kboepd production ▪ <$15/boe operating costs ▪

  23. Slide 23: Closing remarks

    : Closing remarks

  24. Slide 24: Why Harbour Energy?

    Why Harbour Energy? A track record of strategic, operational and financial delivery supported by a world class team A large scale, diverse producing asset base with a competitive cost structure and exposure to Brent oil prices and European gas prices Broad set of attractive Half-year Results strateg

  25. Slide 25: Appendix

    : Appendix

  26. Slide 26: Building a focused CCS business for the UK and European market

    Building a focused CCS business for the UK and European market Harbour CCS projects must deliver attractive returns and compete for capital ▪ Potential to provide long-dated, stable cash flow >650 mt ▪ Offering a route to unlock value through reuse of legacy assets Net CO2 storage resources ▪ Priori

  27. Slide 27: Group production and hedging

    Group production and hedging H1 2025 Group production kboepd, net Liquids Gas Total Norway 58 115 173 UK 83 78 161 Germany 19 10 29 Argentina 5 69 75 Mexico 9 2 10 MENA 4 28 32 SE Asia 4 5 9 Owing to rounding, totals do not Total 182 306 488 match the sum of the component parts Hedging schedule H2 2

  28. Slide 28: i Harbour

    i Harbour mmm Energy

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