Full year results for the year to 31 December 2025

About this update from Harbour Energy Plc

[{"type":"text","content":"\n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION \n   \n Harbour Energy plc \n (\"Harbour\" or the \"Company\" or the \"Group\") \n Full year results for the year to 31 December 2025 \n 5 March 2026 \n Harbour Energy plc today announces its results for the year ended 31 December 2025. \n Linda Z Cook, Chief Executive Officer, commented: \n \"2025 was a year of significant progress for Harbour. We delivered excellent operational performance while maintaining capital discipline and integrating new assets. This drove record production and higher free cash flow against a backdrop of lower commodity prices. In addition, we improved our cost structure, built momentum at our growth projects in Mexico and Argentina, and announced three significant transactions. Together these actions position Harbour's portfolio to deliver higher margin production over the coming years, leading to material growth in free cash flow. \n Today we also announced details of our new distributions policy that links shareholder returns directly to free cash flow. The policy strikes the right balance across the commodity price cycle between our commitment to a strong balance sheet, unlocking the potential of our portfolio and delivering attractive shareholder returns.  \n 2026 is off to a strong start. Production over the first two months of the year averaged 509 thousand barrels per day and we completed the LLOG transaction on 11 February, marking our entry into the US deepwater Gulf. Looking ahead, our focus remains on safety, operational excellence, advancing our growth projects, strengthening the balance sheet and completing the Waldorf and Indonesia transactions.\" \n Excellent operational delivery \n § Record production of 474 kboepd (2024: 258 kboepd), up 84% \n § Unit operating costs reduced by 22% to $12.8/boe (2024: $16.5/boe) \n § Total recordable injury rate (TRIR) of 1.1 per million hours worked (2024: 1.0) \n § New wells and projects online in the UK, Norway, Argentina and Egypt \n § Exploration and appraisal successes in Egypt and Norway \n § 2P reserves and 2C resources of 3.0 bnboe at year end (2024: 3.2 bnboe) \n Material strategic progress \n § Appointed operator of the 750 mmboe gross recoverable Zama oil field (Mexico, Harbour 32%) and a new, more capital efficient, phased FPSO-based development plan agreed \n § Construction underway at Southern Energy (Argentina), a 6 mtpa LNG project (Harbour 15%) due to commence operations end 2027 \n § Exited Vietnam; announced Indonesia divestments for $215 million with completion expected in Q2 2026 \n § Announced $170 million acquisition of Waldorf (UK) with the potential to unlock significant financial synergies including UK tax losses with an expected value of $900 million. Completion expected end Q2 2026 \n § Post period end, completed the $3.2 billion LLOG acquisition, securing a fully operated, oil weighted portfolio in the deepwater US Gulf with a long reserve life, a compelling growth outlook and significant running room  \n Financial highlights [1] \n § Realised post-hedge oil and European gas prices of $69/bbl and $13/mscf (2024: $82/bbl and $11/mscf) \n § Increased revenue and other income of $10.3 billion (2024: $6.2 billion) and adjusted EBITDAX of $7.2 billion (2024: $4.1 billion) \n § Increased free cash flow of $1.1 billion (2024: $0.1 billion) \n § Increased adjusted profit after tax of $0.6 billion (2024: $0.4 billion), equating to adjusted earnings per voting ordinary share of 31 cents (2024: 33 cents) \n § Reported loss after tax of $0.2 billion (2024: $0.1 billion), reflecting a 106% effective tax rate and impacted by a $0.3 billion deferred tax charge associated with changes to the UK fiscal regime and $0.7 billion of pre-tax impairments and exploration write-offs in our North Africa, Mexico and CCS portfolios \n § Investment grade credit ratings of Baa2 (negative outlook), BBB- and BBB- (credit watch negative) by Moody's, Fitch and S&P, respectively \n Shareholder distributions \n Harbour has adopted an updated distributions policy which links shareholder returns directly to free cash flow and strengthens our capital allocation framework across the commodity price cycle. The new policy includes a base dividend and supports deleveraging alongside disciplined investment in attractive organic growth opportunities in the near term. This will underpin future production and free cash flow growth, driving enhanced shareholder returns over time. \n § Since 2022, Harbour has on average returned c.40% of annual free cash flow to shareholders \n § Under the new policy, Harbour will target returning 45-75% of free cash flow each year, including an initial base dividend of 16.10 cents/voting ordinary share ($300 million [2] ) \n § While leverage is above 1.0x, Harbour expects to pay out towards the lower end of the range, prioritising debt reduction. As leverage falls below 1.0x, Harbour expects to pay out towards the top end of the range \n § In line with the new policy, Harbour has declared a 2025 final dividend of 8.05 cents/voting ordinary share ($150 million [3] ). This brings total distributions for 2025 to $478 million, representing a c.45% free cash flow payout \n 2026 guidance and outlook \n 2026 guidance and outlook is updated to include the impact of the LLOG acquisition and assumes completion of the Indonesia and Waldorf (UK) transactions end Q2 2026: \n § For 2026 Harbour now expects: \n -    Production of 475-500 kboepd.  Production to end February averaged 509 kboepd including one month's contribution from LLOG \n -    Unit operating costs of c.$14.5/boe \n -    Total capital expenditure of $2.2-2.4 billion, reflecting additional expenditure relating to the LLOG and Waldorf acquisitions \n -    Free cash flow of c.$0.6 billion [4] , assuming $65/bbl Brent and $11/mscf European gas prices. A $5/bbl change in Brent or $1/mscf change in European gas prices for the full year impacts our 2026 free cash flow by c.$170 million or c.$150 million respectively \n § Beyond 2026: \n -    Production is expected to be maintained in the range of 475-500 kboepd through to 2030, supported by total capex of $2.0-2.3 billion per annum with unit operating costs less than $15/boe \n -    Annual free cash flow expected to increase to c.$1.0 billion in 2028 [5] , driven by the LLOG and Waldorf acquisitions \n -    Further free cash flow margin growth expected around the end of the decade, driven by continued growth from the LLOG portfolio and as Harbour's Mexico projects come onstream \n -    With anticipated additions to reserves in Argentina, Mexico, Norway and the US Gulf, the 2P reserves replacement ratio for the period year end 2025 to 2028 is projected to be over 100 per cent \n -    Net debt on completion of LLOG was $7.2 billion with leverage anticipated to be slightly above Harbour's target of <1.0x at year end 2026, reducing to 1.0x in 2028 \n   \n   \n   \n   \n Enquiries \n Harbour Energy plc                                                                          +44 (0) 203 833 2421 \n Elizabeth Brooks, SVP Investor Relations \n Andy Norman, SVP Communications \n Email: [email protected] \n   \n Online presentation for analysts and investors \n Management will host a live online presentation for analysts and investors at 9.00am (GMT). The link to register, and the presentation, will be available on www.harbourenergy.com . A replay will be available on Harbour's website shortly after the event. \n Forward looking statements \n This statement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Harbour believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Harbour's control or within Harbour's control where, for example, Harbour decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements. \n The information contained within this announcement is deemed by Harbour to constitute inside information for the purposes of the UK Market Abuse Regulation. By the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of Harbour is Howard Landes, General Counsel \n \n \n   \n Summary of 2025 performance \n Excellent operational execution \n In 2025, we delivered production of 474 kboepd (2024: 258 kboepd), at the top end of guidance and split approximately 40 per cent liquids, 40 per cent European natural gas and 20 per cent other natural gas. The 84 per cent increase versus 2024 reflects a full year's contribution from the Wintershall Dea assets, including 169 kboepd from Norway and 73 kboepd from Argentina, and excellent operational execution. \n Production was supported by new wells onstream including in the UK, Norway, Argentina and Egypt, the completion of the Fenix project in Argentina and Maria Phase 2 in Norway, as well as continued high reliability across the portfolio. In addition, we saw outperformance from our operated hubs in the UK. \n 2026 production is expected to increase to between 475-500 kboepd, reflecting contributions from the LLOG and Waldorf portfolios partially offset by managed decline in the UK and the divestment of producing assets in Indonesia and Vietnam.  \n Strict cost and capital discipline \n In 2025 we reduced our unit operating costs by 22 per cent to $12.8/boe (2024: $16.5/boe). This reflected the addition of the lower cost Wintershall Dea portfolio and the exit from Harbour's higher cost Vietnam business partially offset by a weaker US dollar sterling exchange rate. We also captured early savings as part of the Wintershall Dea integration process and further improved our UK cost base. \n 2025 capital expenditure including decommissioning spend totalled $2.4 billion (2024: $1.8 billion), with the increase reflecting the addition of the Wintershall Dea assets. The outturn at the lower end of original guidance of $2.4-2.6 billion was driven by high grading and cost efficiency measures across several of our business units including reduced activity in the UK, a pause in drilling in the APE Vaca Muerta gas licence (Argentina), and the reduction of some expenditures in Mexico and across our portfolio of CCS projects. \n For 2026, Harbour expects operating costs of c.$14.5/boe and total capital expenditure of $2.2-2.4 billion, reflecting the addition of the LLOG and Waldorf assets. \n Safe and responsible operations \n 2025 saw a slight increase in Harbour's total recordable injury rate to 1.1 per million hours worked (2024: 1.0) as we expanded our operations into new jurisdictions. While there was a reduction in the number of Tier 2 process safety events versus 2024, we recorded one Tier 1 event in Mexico during the year. All safety events continue to be rigorously investigated with learnings shared across the Company to drive improved performance. \n In 2025 we delivered a step change in our GHG intensity which reduced to 13 kgCO 2 e/boe (2024: 18 kgCO 2 e/boe) on a net equity share basis. This was driven primarily by the addition of the lower GHG intensity Wintershall Dea assets alongside the divestment of our Vietnam business and continued decarbonisation efforts. We remain on track to halve our gross operated emissions by 2030 relative to our 2018 baseline. \n Maximising the value of our producing assets \n The majority of Harbour's capital programme is focused on infrastructure-led opportunities, profitably converting reserves into production and cash flow. These opportunities are typically low risk, high return investments concentrated around our existing production hubs. \n In Norway, we completed our operated Maria Phase 2 project on schedule and within budget, marking the first of six Norway subsea developments due onstream during 2025-2027. Production start-up from our operated Dvalin North field is on track for mid-2026, with installation of the subsea infrastructure completed in 2025 and development drilling underway. Subsea installation campaigns were also completed at Alve North and Idun North, both being developed as multi-well tie-backs to Skarv, and at Irpa, a three-well tie-back to Aasta Hansteen. These projects, as well as infill drilling, are expected to maintain current production levels in Norway. \n In the UK, investment in 2025 was targeted at our two largest operated hubs, J-Area and the Greater Britannia Area (GBA). At J-Area, Jocelyn South came onstream just three months after discovery in March, production started up from the RK development well in July and successful well interventions were carried out late in the year. Together with strong subsurface performance from Talbot, these activities contributed to the J-Area achieving production rates not seen for over a decade. The GBA satellite fields Callanish and Brodgar also continued to outperform, with Brodgar production supported by plant optimisation and the successful H5 development well.  \n In Argentina, at our offshore CMA-1 concession, production was supported by the three-well Fenix project completed in January and a successful Aries platform well workover. Onshore in the Vaca Muerta unconventional shale play, ten 3,000 metre lateral gas wells were drilled with nine new wells completed and connected, supporting production from APE. Drilling resumed in November after a three month pause to align with lower domestic demand requirements. \n Elsewhere, development activities across our three production hubs in Germany - Mittelplate, Gas Nord and Emlichheim - continued to provide stable production while in Egypt two Raven West infill wells at West Nile Delta were brought onstream. We also delivered exploration success in Egypt including at West Nile Delta, with the Fayoum-5 and El King gas discoveries, and at Disouq with EZZ-1, which was bought onstream in January 2026, only two months after discovery.  \n Progressing our highest return, most competitive projects supporting reserves and future cash flow \n In Norway, Harbour continued to progress its pipeline of potential developments and infill wells towards final investment decisions (FIDs). These include the Gjøa subsea satellite projects which are targeting a 2026 FID while development concept studies are underway at Adriana/Sabina, Storjo and Cuvette. Additionally, Harbour made a small discovery close to the Skarv infrastructure in 2025. Post period end, a discovery was made at Omega Sør (Harbour 24 per cent) near the Snorre field and Harbour was awarded nine exploration licences in the APA 2025 licensing round, four as operator and all close to existing infrastructure. \n In Mexico, we saw good momentum at the 750 mmboe gross Zama oil field (Harbour 32 per cent) with Harbour being appointed operator and a more capital efficient, phased FPSO-based development plan being agreed. FEED is planned for 2026 ahead of FID. We also increased the gross resource estimate of our operated Kan field (70 per cent Harbour) by 50 per cent to 150 mmboe and are maturing development options ahead of FEED. As operator of Zama and Kan, we see the potential for material synergies across the two projects and for leveraging the offshore technical experience acquired through LLOG. \n In Indonesia, Harbour retains its interests in the potential multi-TCF Andaman Sea gas discoveries, where we are evaluating potential development options, including an accelerated, phased development starting at Tangkulo. \n In Argentina, Harbour and its partners took FID on Southern Energy SA (SESA, Harbour 15 per cent), a phased, two vessel 6 mtpa LNG project. This marks a significant milestone, providing access to global markets for our extensive Argentinian gas resource. 2025 saw all environmental licences, export permits and RIGI incentives secured for both vessels and all major contracts awarded with construction now underway. Production start-up from the first vessel is on track for end 2027, with the second vessel to commence operations end 2028.   \n Also in Argentina, at the San Roque concession (Harbour 25 per cent), Harbour and its partners are in the process of applying for an unconventional licence. This would allow development of the Vaca Muerta black oil shale to commence, starting with a potential 16 well programme later in 2026. With more than 700 mmboe of 2C resources, mainly in the Vaca Muerta shale play, and the potential to add materially to this, Argentina represents the largest single component of Harbour's 2C resources and a significant reserve replacement opportunity for the Company. \n As at year end 2025, Harbour's proven and probable (2P) reserves on a working interest basis stood at 1.12 billion boe (2024: 1.25 billion boe), with additions including at CMA-1 in Argentina and J-Area in the UK partially offsetting the impact of production. In addition, Harbour had 1.84 billion boe of 2C resources (2024: 1.91 billion boe). Additions to our 2C resources resulted from the successful appraisal of Kan in Mexico and discoveries in Egypt offset by transfers to 2P reserves and further high grading of our UK and Mexico portfolios. Combined, our 2P and 2C volumes at year end 2025, represented 18 years reserves and resources life [6] . \n Harbour's 2P reserves replacement averaged c.250 per cent per annum over the four-year period from year end 2021 to 2025. For 2026, we anticipate at least 150 per cent reserves replacement supported by the expected reserve additions from the LLOG and Waldorf acquisitions. \n Building a competitive CCS business \n Harbour has a leading CO 2 storage position in Europe with 880 million tonnes of net storage resource, offering the potential for a new source of long-term stable cash flow. In 2025, we continued to mature our most advantaged projects. \n At our operated Viking project in the UK (Harbour 60 per cent), FEED was completed in March and the development consent order for the onshore pipeline was approved. We also welcomed the government's intention to provide development funding for Viking up to FID. Key milestones to FID include emitter selection and negotiation of the economic licence to be awarded by the government.  \n In Denmark, the high return Greensand Future project (Harbour 40 per cent) is on track to commence commercial operations by early 2027 with an injection rate of c.400 ktpa. Onshore Denmark, Harbour has a 40 per cent operated interest in the onshore Greenstore project which is progressing through the appraisal phase. Seismic acquisition commenced in December, marking a key step towards advancing the project towards development.  \n In May, in line with the Havstjerne licence commitment, we delivered a successful CO 2 storage appraisal well in the Norwegian North Sea safely and below budget, confirming the existence of a high quality store. \n Active portfolio management \n We continue to actively manage our portfolio, ensuring our capital and resources are allocated to our most competitive projects and in line with our strategy. In July we exited our Vietnam business and, in December, we announced the sale of the high cost, sub-scale Natuna Sea Block A field along with the Tuna development project in Indonesia for $215 million, improving the overall quality of our portfolio and accelerating value. We also agreed to exit several early-stage projects in Mexico, including Polok and Chinwol, and CCS licences during the year. \n In December, we announced the acquisition of Waldorf in the UK for $170 million. Once completed, this acquisition will help to improve the competitiveness and resilience of our UK business amid ongoing fiscal and regulatory challenges by adding c.$900 million in value through UK tax losses. In addition, upon completion c.$350 million of trapped cash is unlocked, more than covering the purchase price. Completion, which is anticipated by mid-year, is subject to final settlement of all creditors' claims against Waldorf. The transaction is currently being implemented via court approved Restructuring Plans. \n Also in December, we announced the acquisition of LLOG for $3.2 billion. Through LLOG, Harbour gains a fully operated, oil weighted portfolio and an exceptional team in one of the world's most prolific oil and gas basins. LLOG adds high margin, long-life assets with a compelling growth profile, underpinned by a deep inventory of high return drilling opportunities . The acquisition completed post period end in February 2026. \n Collectively, these transactions demonstrate Harbour's disciplined approach to capital allocation, recycling proceeds into cash flow accretive growth opportunities while enhancing the overall quality of our portfolio. \n Significant cash flow generation and strong financial position \n Harbour generated free cash flow of $1.1 billion in 2025, a significant increase versus 2024 and c.$0.5 billion above the outlook provided at the start of the year after normalising for commodity prices. This was driven by strong operational execution, rigorous capital discipline and the greater scale and resilience of our portfolio. \n Net debt (including funds held in escrow and before unamortised fees) reduced to $4.4 billion at year end 2025 (2024: $4.7 billion). This reflects a weaker USD, which increased the value of our euro-denominated debt by c.$0.6 billion, partly offset by $0.4 billion of net hybrid issuances.  Post period end, on 11 February, we completed the LLOG acquisition, funded through a combination of $0.5 billion of equity and $2.7 billion of cash, including a $1 billion bridge facility and $1 billion three year term loan. As a result, net debt increased to $7.2 billion.  Consistent with our approach on past acquisitions, we will prioritise debt reduction until our leverage returns to target levels. \n At year-end 2025, we had a strong hedge position with a mark to market gain of $0.5 billion. For 2026, c.50 per cent of our economic exposure to European gas prices and c.40 per cent of our economic exposure to Brent is currently hedged at $11/mscf and $71/bbl respectively. \n Competitive and meaningful shareholder distributions \n Following the recent announced transactions, Harbour has updated its distributions policy to a payout ratio approach that links shareholder returns directly to free cash flow and leverage. This change strengthens our capital allocation framework and enhances our resilience to commodity price downturns. It also aligns our policy with our peers. \n Since 2022, Harbour has on average returned c.40 per cent of free cash flow to shareholders each year. Under the new policy, we will target returning 45-75 per cent of annual free cash flow, including an initial base dividend of 16.10 cents/voting ordinary share ($300 million [7] ) providing a minimum payout to shareholders, with potential for additional returns. When leverage is above Harbour's target of less than 1.0x, Harbour expects shareholder distributions to be towards the low end of the payout range, prioritising debt reduction and balance sheet strength. As leverage falls below 1.0x, Harbour expects to increase the payout towards the top end of the range which, together with growing free cash flow, is expected to support increasing shareholder returns over time. \n In line with the new policy, Harbour has declared a final 2025 dividend of 8.05 cents/voting ordinary share. Combined with the 2025 interim dividend and $100 million share buyback announced in August 2025, distributions for 2025 total $478 million, representing a c.45 per cent free cash flow payout. \n Our new policy enables us to distribute a base dividend, prioritise near-term deleveraging and invest in highly attractive, high margin growth opportunities. These investments support future production and increasing free cash flow, driving enhanced shareholder returns over the coming years. \n 2026 Outlook \n We had a strong start to the year. Production over the first two months averaged 509 kboepd including a month's contribution from the LLOG portfolio. Production is expected to average 475-500 kboepd during 2026, a level which can be sustained through the end of the decade given our deep inventory of organic investment opportunities. Unit operating costs for 2026 are guided at c.$14.5/boe and total capital expenditure is now expected to be $2.2-2.4 billion, including growth investment in the LLOG assets. \n At $65/bbl Brent and $11/mscf European gas prices, 2026 free cash flow is estimated at c.$0.6 billion [8] .  Looking ahead we expect free cash to increase to c.$1 billion in 2028, as higher margin new volumes replace higher cost, higher tax UK barrels. We anticipate another significant step up in free cash flow around the end of the decade driven by continued growth from the LLOG portfolio and as our Mexico growth projects come onstream. \n Our focus for 2026 is on safety and operational excellence, advancing our growth projects, strengthening the balance sheet and completing the Waldorf and Indonesia transactions as we continue to build a more resilient, cash generative business. We are excited about the opportunities ahead and realising the full potential of our company for our shareholders. \n   \n \n \n   \n Financial Review \n Summary of financial results \n \n \n \n \n   \n \n \n Units \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n Production and post-hedging realised prices \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Production \n \n \n kboepd \n \n \n 474 \n \n \n 258 \n \n \n \n \n Crude oil \n \n \n $/boe \n \n \n 69 \n \n \n 82 \n \n \n \n \n European gas \n \n \n $/mscf \n \n \n 13 \n \n \n 11 \n \n \n \n \n Other gas \n \n \n $/mscf \n \n \n 4 \n \n \n 4 \n \n \n \n \n Income statement \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Revenue and other income \n \n \n $ million \n \n \n 10,261 \n \n \n 6,226 \n \n \n \n \n EBITDAX 1 \n \n \n $ million \n \n \n 7,118 \n \n \n 4,027 \n \n \n \n \n Adjusted EBITDAX 1 \n \n \n $ million \n \n \n 7,196 \n \n \n 4,146 \n \n \n \n \n Profit before taxation \n \n \n $ million \n \n \n 2,801 \n \n \n 1,219 \n \n \n \n \n Loss after taxation \n \n \n $ million \n \n \n (182) \n \n \n (93) \n \n \n \n \n Adjusted profit after taxation 1 \n \n \n $ million \n \n \n 603 \n \n \n 370 \n \n \n \n \n Effective tax rate \n \n \n Per cent \n \n \n 106 \n \n \n 108 \n \n \n \n \n Adjusted effective tax rate 1 \n \n \n Per cent \n \n \n 82 \n \n \n 79 \n \n \n \n \n Operating costs per barrel 1 \n \n \n $/boe \n \n \n 12.8 \n \n \n 16.5 \n \n \n \n \n Basic loss per ordinary voting share \n \n \n cents/share \n \n \n (15) \n \n \n (10) \n \n \n \n \n Adjusted basic earnings per voting ordinary share 1 \n \n \n cents/share \n \n \n 31 \n \n \n 33 \n \n \n \n \n Other financial key figures \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total capital expenditure 1 \n \n \n $ million \n \n \n 2,370 \n \n \n 1,828 \n \n \n \n \n Operating cash flow \n \n \n $ million \n \n \n 3,386 \n \n \n 1,615 \n \n \n \n \n Free cash flow 1 \n \n \n $ million \n \n \n 1,066 \n \n \n (118) \n \n \n \n \n Shareholder returns paid 1 \n \n \n $ million \n \n \n 545 \n \n \n 199 \n \n \n \n \n Net debt 1 \n \n \n $ million \n \n \n 4,305 \n \n \n 4,424 \n \n \n \n \n Leverage ratio 1 \n \n \n times \n \n \n 0.6 \n \n \n 1.1 \n \n \n \n \n 1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary. \n Income statement \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Revenue and other income \n \n \n 10,261 \n \n \n 6,226 \n \n \n \n \n Cost of operations \n \n \n (5,564) \n \n \n (3,613) \n \n \n \n \n EBITDAX 1 \n \n \n 7,118 \n \n \n 4,027 \n \n \n \n \n Adjusted EBITDAX 1 \n \n \n 7,196 \n \n \n 4,146 \n \n \n \n \n Operating profit \n \n \n 3,490 \n \n \n 1,648 \n \n \n \n \n Profit before tax \n \n \n 2,801 \n \n \n 1,219 \n \n \n \n \n Taxation \n \n \n (2,983) \n \n \n (1,312) \n \n \n \n \n Loss after tax \n \n \n (182) \n \n \n (93) \n \n \n \n \n Adjusted profit after tax 1 \n \n \n 603 \n \n \n 370 \n \n \n \n \n   \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n Cents/share \n \n \n Cents/share \n \n \n \n \n Basic loss per ordinary voting share \n \n \n (15) \n \n \n (10) \n \n \n \n \n Adjusted basic earnings per voting ordinary share 1 \n \n \n 31 \n \n \n 33 \n \n \n \n \n   \n 1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary. \n Revenue and other income \n Total revenue and other income increased to $10,261 million (2024: $6,226 million). \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Revenue and other operating income \n \n \n 10,261 \n \n \n 6,226 \n \n \n \n \n Crude oil \n \n \n 3,487 \n \n \n 2,878 \n \n \n \n \n Gas \n \n \n 6,033 \n \n \n 2,936 \n \n \n \n \n Condensate \n \n \n 511 \n \n \n 283 \n \n \n \n \n Tariff income and other revenue \n \n \n 60 \n \n \n 61 \n \n \n \n \n Other operating income \n \n \n 170 \n \n \n 68 \n \n \n \n \n Revenue earned from hydrocarbon production activities increased to $10,031 million (2024: $6,097 million) after net realised hedging gains of $101 million (2024: $18 million, losses). This increase was mainly driven by higher production volumes and higher post-hedging European natural gas prices, partially offset by lower post-hedging crude oil prices. \n Crude oil sales increased to $3,487 million (2024: $2,878 million) after realised hedging gains of $116 million (2024: $32 million). This was driven by higher production volumes partially offset by lower post-hedging crude oil prices of $69/bbl (2024: $82/bbl). \n Gas revenue was $6,033 million (2024: $2,936 million), split between European gas revenue of $5,337 million (2024: $2,644 million) including realised hedging losses of $15 million (2024: $50 million) and other gas revenue of $696 million (2024: $292 million). The realised post-hedging price for our European and other gas was $13/mscf (2024: $11/mscf) and $4/mscf (2024: $4/mscf), respectively. \n Condensate revenue was $511 million (2024: $283 million) and tariff income and other revenue $60 million (2024: $61 million). Other income amounted to $170 million (2024: $68 million) . \n Cost of operations \n Cost of operations increased to $5,564 million (2024: $3,613 million) driven primarily by the impact of a full year of the enlarged portfolio. Cost of operations includes operating costs of $2,317 million (2024: $1,612 million) and depreciation, depletion and amortisation expense of $2,907 million (2024: $1,704 million) as discussed below along with over/underlift movements and other items totalling $340 million (2024: $297 million). \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Cost of operations \n \n \n   \n \n \n   \n \n \n \n \n Field operating costs \n \n \n 2,317 \n \n \n 1,612 \n \n \n \n \n Depreciation, depletion and amortisation \n \n \n 2,907 \n \n \n 1,704 \n \n \n \n \n Other \n \n \n 340 \n \n \n 297 \n \n \n \n \n Operating costs \n \n \n 5,564 \n \n \n 3,613 \n \n \n \n \n Total operating costs for operating costs per barrel 1 \n \n \n                          2,217 \n \n \n                          1,555 \n \n \n \n \n Operating costs per barrel ($ per barrel) 1 \n \n \n 12.8 \n \n \n 16.5 \n \n \n \n \n 1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary. \n Total operating costs increased to $2,217 million (2024: $1,555 million) driven by the impact of a full year of the acquired portfolio. However, on a unit of production basis, costs have materially reduced at $12.8/boe (2024: $16.5/boe), reflecting the lower cost base of the enlarged portfolio. \n Depreciation, depletion and amortisation unit expense, which reflects the current period capitalised costs of producing assets divided by produced volumes, decreased to $16.8/boe (2024: $18.5/boe). \n General and administrative expenses \n General and administrative expenses amounted to $536 million (2024: $352 million). The increase was driven by the enlarged group, including expansion of our corporate centre, and one-off M&A, restructuring and reorganisation-related transaction costs of $78 million (2024: $119 million) associated with various initiatives and M&A activities across the group. 2024 solely related to costs associated with the Wintershall Dea acquisition. \n Impairments and exploration costs \n The Group has recognised a net pre-tax impairment charge on property, plant and equipment of $365 million (2024: $352 million). Of this, $41 million (2024: $174 million) was in respect of revisions to decommissioning estimates on mainly non-producing assets with no remaining book value. There was was also an impairment of $35 million (2024: $15 million) associated with the disposal of our Vietnam assets. The remainder largely relates to impairments in the Mexico and North Africa driven by reserves reductions and field performance. \n During the year, the Group expensed $306 million (2024: $241 million) of exploration and appraisal activities. This covers exploration write-off expense of $200 million (2024: $173 million) including costs associated with projects in Norway ($22 million, 2024: UK $79 million), licence relinquishments in the UK ($40 million ) and Mexico ($107 million, 2024: Norway, $64 million), and $84 million (2024: $40 million) costs primarily associated with carbon capture and storage activities. \n EBITDAX 1 \n EBITDAX 1 was $7,118 million (2024: $4,027 million), with the increase driven by the enlarged group. Adjusted EBITDAX 1 was $7,196 million (2024: $4,146 million), an increase of $3,050 million. \n Net financing costs \n Finance income amounted to $461 million (2024: $173 million). The increase compared to 2024 is primarily due to realised gains on foreign exchange forward contracts of $191 million and changes in the fair value of foreign exchange derivatives of $109 million. \n Finance expenses amounted to $1,150 million (2024: $602 million). This included: \n \n \n \n \n ▪     interest expense incurred of $176 million (2024: $78 million) related to debt facilities and bonds; \n \n \n \n \n ▪     bank and financing fees of $123 million (2024: $139 million); \n \n \n \n \n ▪     unwinding of the discount on decommissioning provisions of $293 million (2024: $221 million); \n \n \n \n \n ▪     lease interest of $40 million (2024: $53 million); and \n \n \n \n \n ▪     unrealised foreign exchange losses of $485 million (2024: $118 million, gain) which predominantly arose on the Group's tax liabilities and intercompany balances due to the weakening of the US dollar. \n \n \n \n \n   \n Earnings and taxation \n Loss after tax amounted to $182 million (2024: $93 million loss). This resulted in a loss per ordinary voting share of 15 cents (2024: 10 cents, loss) after taking into account the weighted average number of ordinary voting shares in issue of 1,426 million (2024: 990 million). Adjusted profit after tax was $603 million (2024: $370 million) which resulted in earnings per share of 31 cents (2024: 33 cents). \n After taking into consideration $81 million (2024: $15 million) attributable to subordinated notes investors, loss after tax attributable to equity owners of the company amounted to $263 million (2024: $108 million loss attributable to equity owners of the company). Adjusted profit after tax amounted to $603 million (2024: $370 million), an increase of $233 million. \n Harbour's tax expense increased to $2,983 million in 2025 (2024: $1,312 million), primarily driven by higher pre-tax profits resulting from the additional earnings contributed by the acquisition and the extension of the UK Energy Profits Levy (EPL). The tax expense comprises a current tax expense of $3,505 million (2024: $1,415 million, expense) and a deferred tax credit of $522 million (2024: $103 million, credit). \n The effective tax rate of 106 per cent (2024: 108 per cent) is materially higher than the statutory tax rate of 78 per cent (2024: 78 per cent). This is primarily due to a $311 million deferred tax charge arising from legal enactment of the extension of the EPL in the UK by two years, from 31 March 2028 to 31 March 2030, as well as non-deductible foreign exchange losses and weighting of earnings across the various jurisdictions. The adjusted effective tax rate is 82 per cent (2024: 79 per cent). \n Shareholder distributions \n A final dividend with respect to 2024 of 13.19 cents per ordinary share was proposed on 6 March 2025 and approved by shareholders at the AGM on 8 May 2025. The dividend was paid on 21 May 2025 to all shareholders on the register as at 11 April 2025, totalling $228 million. An interim dividend was announced on 7 August 2025 at 13.19 cents per share and was paid on 24 September 2025 at a value of $227 million. \n The Board is proposing a final dividend with respect to 2025 of 8.05 cents per voting ordinary share to be paid in pound sterling at the spot rate prevailing on the record date. This dividend is subject to shareholder approval at the AGM, to be held on 7 May 2026. If approved, the dividend will be paid on 20 May 2026 to shareholders as of 10 April 2026. The ex-dividend date is 9 April 2026. A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the company. The last date to elect for the DRIP in respect of this dividend is 28 April 2026. \n A DRIP is provided by Equiniti Financial Services Limited. The DRIP enables the company's shareholders to elect to have their cash dividend payments used to purchase the company's shares. More information can be found at   www.shareview.co.uk/info/drip . \n Statement of financial position \n \n \n \n \n   \n \n \n   \n \n \n 2024 \n \n \n \n \n   \n \n \n 2025 \n \n \n As restated \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n \n \n Goodwill \n \n \n 5,062 \n \n \n 5,062 \n \n \n \n \n Non-current assets, excluding goodwill and deferred taxes \n \n \n 19,797 \n \n \n 21,168 \n \n \n \n \n Deferred tax assets \n \n \n 121 \n \n \n 130 \n \n \n \n \n Current assets \n \n \n 3,723 \n \n \n 3,640 \n \n \n \n \n Assets held for sale \n \n \n 390 \n \n \n 277 \n \n \n \n \n Total assets \n \n \n 29,093 \n \n \n 30,277 \n \n \n \n \n Liabilities and equity \n \n \n   \n \n \n   \n \n \n \n \n Borrowings net of transaction fees \n \n \n 5,151 \n \n \n 5,229 \n \n \n \n \n Provisions \n \n \n 7,413 \n \n \n 7,521 \n \n \n \n \n Deferred tax liabilities \n \n \n 6,491 \n \n \n 6,177 \n \n \n \n \n Lease liabilities \n \n \n 634 \n \n \n 792 \n \n \n \n \n Other financial liabilities \n \n \n 40 \n \n \n 877 \n \n \n \n \n Other liabilities \n \n \n 2,944 \n \n \n 3,197 \n \n \n \n \n Liabilities directly associated with assets held for sale \n \n \n 214 \n \n \n 233 \n \n \n \n \n Total liabilities \n \n \n 22,887 \n \n \n 24,026 \n \n \n \n \n Equity \n \n \n 6,206 \n \n \n 6,251 \n \n \n \n \n Total liabilities and equity \n \n \n 29,093 \n \n \n 30,277 \n \n \n \n \n Net debt \n \n \n 4,305 \n \n \n 4,424 \n \n \n \n \n   \n Assets \n The decrease in total assets of $1,184 million to $29,093 million (2024: $30,277 million, as restated) is mainly as a result of a reduction in property, plant and equipment of $1,368 million, driven by impairment charges of $365 million as well as an increase in depreciation $2,773 million (2024: $1,522 million) relative to additions in the period $1,523 million (2024: $1,059 million). Total assets include assets held for sale in respect of the Indonesia disposal of $390 million (2024: Vietnam $277 million). \n Liabilities   \n The decrease in total liabilities of $1,139 million to $22,887 million (2024: $24,026 million) is primarily driven by the reduction in the fair value of the Group's other financial liabilities, reducing to $40 million from $877 million, with the net financial instruments moving to a net asset position. Total liabilities included liabilities directly associated with assets held for sale in respect of the Indonesia disposal of $214 million. \n The net deferred tax position on the statement of financial position is a liability of $6,370 million (2024: $6,047 million, as restated). This primarily consists of deferred tax liabilities in respect of the future profits which will flow from our accelerated capital allowances of $9,012 million and fair value losses on derivatives $2,739 million, partially offset by deferred tax assets in respect of future tax relief on decommissioning spend of $331 million and tax losses of $194 million. \n Equity and reserves \n Total equity decreased by $45 million to $6,206 million (2024: $6,251 million). The decrease was driven by shareholder distributions of $545 million (2024: $199 million), offset by the new issuance of subordinated notes in the period of $970 million less the repayment of $558 million of the existing notes. Movements in equity also included favourable post-tax fair value movements on cash flow hedges of $429 million (2024: unfavourable of $166 million), offset by losses on currency translation of $182 million (2024: $130 million, gains) all recognised in other comprehensive income, in addition to the loss for the year. \n Net debt \n As at 31 December 2025, net debt was $4,305 million (2024: $4,424 million). This consisted of borrowings amounting to $5,366 million (2024: $5,513 million) less unamortised fees of $215 million (2024: $284 million) less cash balances of $846 million (2024: $805 million). During the year, a new $900 million senior bond maturing in 2035 was placed, and partly used to pay the existing $500 million senior bond. The €1,000 million bond due in 2025 was also paid during the year. In addition, Harbour had surety bonds of $726 million (£538 million) at year end which provide cover for decommissioning securities. \n As at 31 December 2025, the Group has the ability to fund its near-term debt maturities out to 2028 and, following the latest acquisitions, its investment grade rating was reaffirmed by Moody's (Baa2) and unchanged by Fitch (BBB-). Available liquidity, comprising the undrawn portion of the RCF facility of $2.3 billion (the $3.0 billion facility had not been drawn down and $0.7 billion letters of credit for decommissioning had been drawn) plus cash balances of $0.8 billion (2024: $0.8 billion), was $3.1 billion (2024: $2.7 billion) at the end of the year. \n As at 31 December 2025, the leverage ratio 1 was 0.6x (2024: 1.1x) which has decreased primarily as a result of the significant increase in EBITDAX due to a full year of contribution from the acquisition in 2025 versus four months of EBITDAX contribution in 2024. Net debt is marginally lower at $4.3 billion (2024: $4.4 billion). \n The balance sheet is in a strong position supported by the RCF facility and investment grade credit ratings. \n   \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Leverage ratio 1 \n \n \n   \n \n \n   \n \n \n \n \n Net debt \n \n \n 4,305 \n \n \n 4,424 \n \n \n \n \n EBITDAX \n \n \n 7,118 \n \n \n 4,027 \n \n \n \n \n Leverage ratio 1 \n \n \n 0.6 x \n \n \n 1.1 x \n \n \n \n \n 1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary. \n Derivative financial instruments \n We carry out hedging activity to manage commodity price risk. We have entered into both a series of fixed-price sales agreements and a financial hedging programme for both oil and gas, consisting of swap and option instruments. Hedges realised to date are in respect of both crude oil and natural gas. \n The hedging programme as at 31 December 2025 is shown below: \n \n \n \n \n Hedge position \n \n \n 2026 \n \n \n 2027 \n \n \n 2028 \n \n \n \n \n Oil \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total oil volume hedged (thousand bbls) \n \n \n 16,258 \n \n \n 7,574 \n \n \n - \n \n \n \n \n - of which swaps \n \n \n 14,159 \n \n \n 1,643 \n \n \n - \n \n \n \n \n - of which collars \n \n \n 2,099 \n \n \n 5,931 \n \n \n - \n \n \n \n \n Weighted average fixed price ($/bbl) \n \n \n 72.57 \n \n \n 68.08 \n \n \n - \n \n \n \n \n Weighted average collar floor and cap ($/bbl) \n \n \n 60.00 - 75.24 \n \n \n 60.00 - 76.99 \n \n \n - \n \n \n \n \n Natural gas \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Gas volume hedged (thousand boe) \n \n \n 26,483 \n \n \n 12,602 \n \n \n 1,804 \n \n \n \n \n - of which swaps/fixed price forward sales \n \n \n 19,830 \n \n \n 5,506 \n \n \n 510 \n \n \n \n \n - of which zero cost collars \n \n \n 6,653 \n \n \n 7,096 \n \n \n 1,294 \n \n \n \n \n Weighted average fixed price ($/mscf) \n \n \n 11.67 \n \n \n 10.92 \n \n \n 10.87 \n \n \n \n \n Weighted average collar floor and cap ($/mscf) \n \n \n 9.38 - 17.75 \n \n \n 8.15 - 14.63 \n \n \n 7.95 - 16.00 \n \n \n \n \n \nAs at 31 December 2025, our financial hedging programme on commodity derivative instruments showed a pre-tax positive mark-to-market fair value of $493 million (2024: $475 million, negative). Most of the commodity derivatives were designated as cash flow hedges, therefore, changes in fair value were reported in other comprehensive income. \n For foreign exchange derivative instruments, the pre-tax positive mark-to-market fair value was $104 million (2024: $198 million, negative). Of this value, $83 million (2024: $173 million) related to the cross-currency interest rate swaps designated as cash flow hedges relating to the euro bonds of €2.6 billion (2024: €2.4 billion) which were hedged at a forward rate of between 1.1017 and 1.1680 (2024: 1.1015 and 1.1209).The remaining $21 million related to FX forward contracts designated as fair value through income statement. \n Statement of cash flows 1 \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Cash flow from operating activities before tax payments \n \n \n 6,862 \n \n \n 3,114 \n \n \n \n \n Tax payments \n \n \n (3,476) \n \n \n (1,499) \n \n \n \n \n Cash flow from operating activities after tax payments \n \n \n 3,386 \n \n \n 1,615 \n \n \n \n \n Cash flow from investing activities - capital investment \n \n \n (1,912) \n \n \n (1,322) \n \n \n \n \n Cash flow from investing activities - other 2 \n \n \n 132 \n \n \n 89 \n \n \n \n \n Operating cash flow after investing activities \n \n \n 1,606 \n \n \n 382 \n \n \n \n \n Cash flow from financing activities 3 \n \n \n (540) \n \n \n (500) \n \n \n \n \n Free cash flow 4 \n \n \n 1,066 \n \n \n (118) \n \n \n \n \n Cash and cash equivalents \n \n \n 846 \n \n \n 805 \n \n \n \n \n 1 Table excludes financing activities related to debt and subordinated notes principal movements. \n 2 Excludes net expenditure on business combinations of $34 million (2024: $1,044 million). \n 3 Interest, lease interest and capital payments only, excludes shareholder distributions. \n 4 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary. \n Net operating cash flow before tax was $6,862 million (2024: $3,114 million) reflecting twelve months of the enlarged group. The timing and magnitude of tax payments impacted net cash from operating activities after tax which amounted to $3,386 million (2024: $1,615 million). Tax payments during the year were $3,476 million compared to $1,499 million in 2024 due to the enlarged portfolio. \n Cash flow working capital movements were positive $60 million (2024: negative $494 million) as a result of the collection of overdue receivables in Egypt and Mexico acquired as part of the Wintershall Dea transaction. \n Capital investment was $1,912 million (2024: $1,322 million) which included property, plant and equipment additions of $1,435 million (2024: $884 million), exploration and evaluation additions of $363 million (2024: $359 million) and other intangible additions of $114 million (2024: $79 million). Cash outflow from financing activities totalled $540 million (2024: $500 million) split between interest payments of $246 million (2024: $181 million) and lease payments of $294 million (2024: $319 million). \n Free cash flow was $1,066 million inflow (2024: $118 million outflow). \n Shareholder distributions totalled $545 million (2024: $199 million) and consist of dividends paid of $455 million (2024: $199 million) and the repurchase of Harbour's own shares of $90 million (2024: $nil). \n Cash and cash equivalent balances were $846 million (2024: $805 million) at the end of the year. \n Capital investment is defined as additions to property, plant and equipment, fixtures and fittings and intangible exploration and evaluation assets, excluding changes to decommissioning assets. \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Additions to oil and gas assets \n \n \n (1,511) \n \n \n (1,037) \n \n \n \n \n Additions to fixtures and fittings, office equipment and IT software \n \n \n (63) \n \n \n (73) \n \n \n \n \n Additions to exploration and evaluation assets \n \n \n (327) \n \n \n (398) \n \n \n \n \n Additions to other intangible assets \n \n \n (45) \n \n \n (36) \n \n \n \n \n Total capital investment 1 \n \n \n (1,946) \n \n \n (1,544) \n \n \n \n \n Movements in working capital \n \n \n (47) \n \n \n 140 \n \n \n \n \n Capitalised interest \n \n \n 36 \n \n \n 18 \n \n \n \n \n Capitalised lease depreciation \n \n \n 45 \n \n \n 64 \n \n \n \n \n Cash capital investment per the cash flow statement \n \n \n (1,912) \n \n \n (1,322) \n \n \n \n \n 1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary. \n During the period, the Group incurred total capital expenditure of $2,370 million (2024: $1,828 million), split by capital investment $1,946 million (2024: $1,544 million) , decommissioning spend $374 million (2024: $284 million), and energy transition expenditure $50 million (2024: $nil) respectively. \n The majority of the capital investment was concentrated around our existing production hubs, predominantly in Norway and the UK. Refer to the Operational review for more detail. \n Principal risks \n The directors have identified a number of changes to the principle risks facing the company following the completion of the Wintershall Dea acquisition. This includes elevated risk levels in relation to the lower commodity price environment, physical asset security, cyber security and a somewhat lower risk in relation to the energy transition. Notably, the principal risk recognised in the 2024 Annual Report as 'Integration of acquired businesses' has been retired following the successful completion of the acquisition. \n Events after the reporting period \n On 11 February 2026 Harbour announced it had completed the acquisition of LLOG Exploration Company LLC for $3.2 billion, marking the Company's strategic entry into the US Gulf of America. Harbour financed the Acquisition through $2.7 billion of cash and the issuance of 174,855,744 new Harbour voting ordinary shares (the Consideration Shares) to LLOG Holdings LLC (the Seller) with an agreed value of $0.5 billion. The cash was funded by a $1.0 billion bridge facility, a $1.0 billion 3-year term loan and $0.7 billion from existing sources of liquidity. \n At the time when the financial statements were authorised for issue, the group had not yet completed the accounting for the acquisition of LLOG Exploration Company LLC. The proximity of the completion of the acquisition to the authorisation of the financial statements has meant the fair values of the assets and liabilities have not been finalised. It is also not yet possible to provide detailed information about each class acquired receivables and any contingent liabilities of the acquired entities. \n In 2024, the German non-governmental organisation Deutsche Umwelthilfe (NGO) filed a lawsuit against the German mining authority (LBEG) challenging the operating permit of Harbour Energy Germany GmbH (HEGG) for HEGG's Mittelplate field. HEGG is a joined party in this lawsuit. On 26 February 2026, a court of first instance (Schleswig-Holsteinisches Verwaltungsgericht) decided that the operating permit is to be considered invalid during the duration of the main court proceeding. HEGG filed an appeal on 27 February 2026 with the Appellate Court (Schleswig-Holsteinisches Oberverwaltungsgericht). This Court confirmed the receipt of the appeal and stated in writing that its Senate, which will decide on the appeal, assumes that the operations of the drilling and production island Mittelplate will continue until a decision has been determined. Based on this first response by the Appellate Court, and in close alignment with the mining authority, HEGG is focused on continuing safe operations. \n Going concern \n The directors considered the going concern assessment period to be up to 31 December 2027. The Group monitors and manages its capital position and its liquidity risk regularly to ensure that it has access to sufficient funds to meet forecast cash requirements. Cash forecasts for management are regularly produced and sensitivities considered based on, but not limited to, the Group's latest life of field production and expenditure forecasts, management's best estimate of future commodity prices based on recent forward curves, adjusted for the Group's hedging programme, and the Group's borrowing facilities. \n The Group's ongoing capital requirements are financed by its $3.0 billion revolving credit facility (RCF), bonds $5.3 billion (before unamortised fees), senior term loan $1.0 billion, bridge loan $1.0 billion, subordinated notes of $2.2 billion, and surety bonds of $726 million (£538 million) which provide cover for decommissioning securities. The term and bridge loans were entered into in February 2026 to finance the completion of the LLOG acquisition announced in December 2025. \n The RCF is subject to financial covenants that require the ratio of consolidated total net debt, including letters of credit, to last twelve months (LTM) EBITDAX to be less than 3.5x, and LTM EBITDA divided by interest expense to exceed 3.5x. Under the Group's base case, the RCF is forecast to have an undrawn balance of $3.0 billion through 2026 and 2027. When combined with drawn letters of credit and unrestricted cash the headroom is forecasted to be $2.7 billion  2027 which provides a robust liquidity position. \n The Group's latest approved business plan underpins the base case going concern assessment and is based upon management's best estimate of forward commodity price curves, production in line with approved asset plans and the ongoing capital requirements of the Group that will be financed by free cash flow, the existing RCF and debt financing arrangements described above. \n In addition, Harbour announced the Waldorf transaction in December 2025 which is expected to complete in the second quarter of 2026 which is planned to be financed from existing debt facilities. As part of the going concern assessment, separate base case, sensitivities and reverse stress tests have been run on the enlarged group forecasts, which are supported by Harbour's acquisition due diligence work, and show that the probability of a liquidity deficit or covenant breach is remote. \n The base case indicates that the Group is able to operate as a going concern with sufficient headroom and remain in compliance with its loan covenants throughout the assessment period. \n In line with the principal risks that have been identified to impact the financial capability of the Group to operate as going concern, a single downside sensitivity scenario has been prepared reflecting a reduction throughout the entire assessment period in: \n \n \n \n \n ▪     Brent crude, UK natural gas and European TTF gas prices of 20 per cent; and \n \n \n \n \n ▪     the Group's unhedged production of 10 per cent. \n \n \n \n \n Management considers this represents a severe but plausible downside scenario appropriate for assessing going concern and viability. \n In this downside scenario when applied to the base case forecast, the Group is forecast to have sufficient liquidity headroom throughout the going concern assessment period and to remain in compliance with its financial covenants. \n Reverse stress tests have been prepared reflecting reductions in each of commodity price and production parameters, prior to any mitigation strategies, to determine at what levels each would need to reach such that either the lending covenants are breached or liquidity headroom runs out. The results of these reverse stress tests demonstrated the likelihood that a sustained significant fall in commodity prices or a significant fall in production over the assessment period that would be required to cause a risk of funds shortfall or a covenant breach is remote. \n Taking the above analysis into account and considering the findings of the work performed to support the statement on the long-term viability of the company and the Group, the Board was satisfied that, for the going concern assessment period, the Group is able to maintain adequate liquidity and comply with its lending covenants up to 31 December 2027 and has therefore adopted the going concern basis for preparing the financial statements. \n By order of the Board, \n Alexander Krane \nChief Financial Officer \n   \n 4 March 2026 \n Financial statements \n Consolidated income statement \n For the year ended 31 December 2025 \n \n \n \n \n   \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n Note \n \n \n $ million \n \n \n $ million \n \n \n \n \n Revenue \n \n \n 4 \n \n \n 10,091 \n \n \n 6,158 \n \n \n \n \n Other operating income \n \n \n 4 \n \n \n 170 \n \n \n 68 \n \n \n \n \n Revenue and operating other income \n \n \n   \n \n \n 10,261 \n \n \n 6,226 \n \n \n \n \n Cost of operations \n \n \n 5 \n \n \n (5,564) \n \n \n (3,613) \n \n \n \n \n Impairment of property, plant and equipment \n \n \n 5,12 \n \n \n (365) \n \n \n (352) \n \n \n \n \n Impairment of right-of-use assets \n \n \n 13 \n \n \n - \n \n \n (20) \n \n \n \n \n Exploration and evaluation expenses and new ventures \n \n \n 5 \n \n \n (106) \n \n \n (68) \n \n \n \n \n Exploration costs written-off \n \n \n 5 \n \n \n (200) \n \n \n (173) \n \n \n \n \n General and administrative expenses \n \n \n 5 \n \n \n (536) \n \n \n (352) \n \n \n \n \n Operating profit \n \n \n   \n \n \n 3,490 \n \n \n 1,648 \n \n \n \n \n Finance income \n \n \n 7 \n \n \n 461 \n \n \n 173 \n \n \n \n \n Finance expenses \n \n \n 7 \n \n \n (1,150) \n \n \n (602) \n \n \n \n \n Profit before taxation \n \n \n   \n \n \n 2,801 \n \n \n 1,219 \n \n \n \n \n Income tax expense \n \n \n 8 \n \n \n (2,983) \n \n \n (1,312) \n \n \n \n \n Loss for the year after taxation \n \n \n   \n \n \n (182) \n \n \n (93) \n \n \n \n \n Loss for the year attributable to: \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Equity owners of the company \n \n \n   \n \n \n (263) \n \n \n (108) \n \n \n \n \n Subordinated notes investors \n \n \n   \n \n \n 81 \n \n \n 15 \n \n \n \n \n   \n \n \n   \n \n \n (182) \n \n \n (93) \n \n \n \n \n   \n \n \n \n \n Loss per share \n \n \n Note \n \n \n $ cents \n \n \n $ cents \n \n \n \n \n Basic \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Ordinary shares voting \n \n \n 9 \n \n \n (15) \n \n \n (10) \n \n \n \n \n Ordinary shares non-voting \n \n \n 9 \n \n \n (17) \n \n \n (11) \n \n \n \n \n Diluted \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Ordinary shares voting \n \n \n 9 \n \n \n (16) \n \n \n (10) \n \n \n \n \n Ordinary shares non-voting \n \n \n 9 \n \n \n (17) \n \n \n (11) \n \n \n \n \n   \n Consolidated statement of comprehensive income \n For the year ended 31 December 2025 \n \n \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n \n \n Loss for the year \n \n \n (182) \n \n \n (93) \n \n \n \n \n Other comprehensive income \n \n \n   \n \n \n   \n \n \n \n \n Items that will not be subsequently reclassified to income statement: \n \n \n   \n \n \n   \n \n \n \n \n Actuarial gains/(losses) \n \n \n 36 \n \n \n (6) \n \n \n \n \n Tax (expense)/credit on actuarial gains/(losses) \n \n \n (11) \n \n \n 4 \n \n \n \n \n Net other comprehensive income/(loss) that will not be subsequently reclassified to income statement \n \n \n 25 \n \n \n (2) \n \n \n \n \n Items that may be subsequently reclassified to income statement: \n \n \n   \n \n \n   \n \n \n \n \n Fair value gains/(losses) on cash flow hedges \n \n \n 1,181 \n \n \n (545) \n \n \n \n \n Tax (charge)/credit on cash flow hedges \n \n \n (752) \n \n \n 379 \n \n \n \n \n Exchange differences on translation \n \n \n (182) \n \n \n 130 \n \n \n \n \n Net other comprehensive income/(loss) may be subsequently reclassified to income statement \n \n \n 247 \n \n \n (36) \n \n \n \n \n Other comprehensive income/(loss) for the year, net of tax \n \n \n 272 \n \n \n (38) \n \n \n \n \n Total comprehensive income/(loss) for the year \n \n \n 90 \n \n \n (131) \n \n \n \n \n Total comprehensive income/(loss) attributable to: \n \n \n   \n \n \n   \n \n \n \n \n Equity owners of the company \n \n \n 9 \n \n \n (146) \n \n \n \n \n Subordinated notes investors \n \n \n 81 \n \n \n 15 \n \n \n \n \n   \n \n \n 90 \n \n \n (131) \n \n \n \n \n   \n Consolidated balance sheet \n For the year ended 31 December 2025 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n 2024 \n \n \n \n \n   \n \n \n   \n \n \n 2025 \n \n \n As restated \n \n \n \n \n   \n \n \n Note \n \n \n $ million \n \n \n $ million \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Non-current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Goodwill \n \n \n 10 \n \n \n 5,062 \n \n \n 5,062 \n \n \n \n \n Other intangible assets \n \n \n 11 \n \n \n 5,749 \n \n \n 5,714 \n \n \n \n \n Property, plant and equipment \n \n \n 12 \n \n \n 13,210 \n \n \n 14,578 \n \n \n \n \n Right-of-use assets \n \n \n 13 \n \n \n 496 \n \n \n 656 \n \n \n \n \n Equity accounted investments \n \n \n   \n \n \n 7 \n \n \n - \n \n \n \n \n Deferred tax assets \n \n \n 8 \n \n \n 121 \n \n \n 130 \n \n \n \n \n Other receivables \n \n \n 16 \n \n \n 126 \n \n \n 176 \n \n \n \n \n Other financial assets \n \n \n 23 \n \n \n 209 \n \n \n 44 \n \n \n \n \n Total non-current assets \n \n \n   \n \n \n 24,980 \n \n \n 26,360 \n \n \n \n \n Current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Inventories \n \n \n 15 \n \n \n 398 \n \n \n 368 \n \n \n \n \n Trade and other receivables \n \n \n 16 \n \n \n 1,994 \n \n \n 2,322 \n \n \n \n \n Other financial assets \n \n \n 23 \n \n \n 485 \n \n \n 145 \n \n \n \n \n Cash and cash equivalents \n \n \n 17 \n \n \n 846 \n \n \n 805 \n \n \n \n \n   \n \n \n   \n \n \n 3,723 \n \n \n 3,640 \n \n \n \n \n Assets held for sale \n \n \n 18 \n \n \n 390 \n \n \n 277 \n \n \n \n \n Total current assets \n \n \n   \n \n \n 4,113 \n \n \n 3,917 \n \n \n \n \n Total assets \n \n \n   \n \n \n 29,093 \n \n \n 30,277 \n \n \n \n \n Equity and liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Equity \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Share capital \n \n \n 26 \n \n \n 171 \n \n \n 171 \n \n \n \n \n Merger reserve \n \n \n 26 \n \n \n 3,728 \n \n \n 3,728 \n \n \n \n \n Other reserves \n \n \n   \n \n \n 229 \n \n \n (18) \n \n \n \n \n Retained earnings \n \n \n   \n \n \n 53 \n \n \n 807 \n \n \n \n \n Equity attributable to equity holders of the company \n \n \n   \n \n \n 4,181 \n \n \n 4,688 \n \n \n \n \n Equity attributable to subordinated notes investors \n \n \n 27 \n \n \n 2,025 \n \n \n 1,563 \n \n \n \n \n Total equity \n \n \n   \n \n \n 6,206 \n \n \n 6,251 \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Borrowings \n \n \n 22 \n \n \n 4,915 \n \n \n 4,215 \n \n \n \n \n Provisions \n \n \n 21 \n \n \n 6,967 \n \n \n 7,024 \n \n \n \n \n Deferred tax \n \n \n 8 \n \n \n 6,491 \n \n \n 6,177 \n \n \n \n \n Trade and other payables \n \n \n 20 \n \n \n 68 \n \n \n 30 \n \n \n \n \n Lease liabilities \n \n \n 13 \n \n \n 466 \n \n \n 551 \n \n \n \n \n Other financial liabilities \n \n \n 23 \n \n \n 19 \n \n \n 415 \n \n \n \n \n Total non-current liabilities \n \n \n   \n \n \n 18,926 \n \n \n 18,412 \n \n \n \n \n Current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Trade and other payables \n \n \n 20 \n \n \n 1,424 \n \n \n 1,755 \n \n \n \n \n Borrowings \n \n \n 22 \n \n \n 236 \n \n \n 1,014 \n \n \n \n \n Lease liabilities \n \n \n 13 \n \n \n 168 \n \n \n 241 \n \n \n \n \n Provisions \n \n \n 21 \n \n \n 446 \n \n \n 497 \n \n \n \n \n Current tax liabilities \n \n \n   \n \n \n 1,452 \n \n \n 1,412 \n \n \n \n \n Other financial liabilities \n \n \n 23 \n \n \n 21 \n \n \n 462 \n \n \n \n \n   \n \n \n   \n \n \n 3,747 \n \n \n 5,381 \n \n \n \n \n Liabilities directly associated with the assets held for sale \n \n \n 18 \n \n \n 214 \n \n \n 233 \n \n \n \n \n Total current liabilities \n \n \n   \n \n \n 3,961 \n \n \n 5,614 \n \n \n \n \n Total liabilities \n \n \n   \n \n \n 22,887 \n \n \n 24,026 \n \n \n \n \n Total equity and liabilities \n \n \n   \n \n \n 29,093 \n \n \n 30,277 \n \n \n \n \n   \n The following notes form part of these financial statements. \n The financial statements were approved by the board of directors and authorised for issue on 4 March 2026 and signed on its behalf by: \n   \n Alexander Krane \n Chief Financial Officer \n Consolidated statement of changes in equity \n For the year ended 31 December 2025 \n \n \n \n \n   \n \n \n Share capital \n \n \n Merger reserve 1 \n \n \n Other reserves (note 24) \n \n \n Retained earnings \n \n \n Equity attributable to owners of the company \n \n \n Equity attributable to subordinated notes investors \n \n \n Total equity \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n $ million \n \n \n $ million \n \n \n $ million \n \n \n $ million \n \n \n $ million \n \n \n \n \n At 1 January 2024 \n \n \n 171 \n \n \n 271 \n \n \n 18 \n \n \n 1,093 \n \n \n 1,553 \n \n \n - \n \n \n 1,553 \n \n \n \n \n Loss the year \n \n \n - \n \n \n - \n \n \n - \n \n \n (108) \n \n \n (108) \n \n \n 15 \n \n \n (93) \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n (36) \n \n \n (2) \n \n \n (38) \n \n \n - \n \n \n (38) \n \n \n \n \n Total comprehensive income \n \n \n - \n \n \n - \n \n \n (36) \n \n \n (110) \n \n \n (146) \n \n \n 15 \n \n \n (131) \n \n \n \n \n Issue of new shares \n \n \n - \n \n \n 3,457 \n \n \n - \n \n \n - \n \n \n 3,457 \n \n \n - \n \n \n 3,457 \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n 48 \n \n \n 48 \n \n \n - \n \n \n 48 \n \n \n \n \n Purchase of ESOP trust shares \n \n \n - \n \n \n - \n \n \n - \n \n \n (25) \n \n \n (25) \n \n \n - \n \n \n (25) \n \n \n \n \n Acquired through business combination \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,548 \n \n \n 1,548 \n \n \n \n \n Dividend paid \n \n \n - \n \n \n - \n \n \n - \n \n \n (199) \n \n \n (199) \n \n \n - \n \n \n (199) \n \n \n \n \n At 31 December 2024 \n \n \n 171 \n \n \n 3,728 \n \n \n (18) \n \n \n 807 \n \n \n 4,688 \n \n \n 1,563 \n \n \n 6,251 \n \n \n \n \n (Loss)/profit for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n (263) \n \n \n (263) \n \n \n 81 \n \n \n (182) \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n 247 \n \n \n 25 \n \n \n 272 \n \n \n - \n \n \n 272 \n \n \n \n \n Total comprehensive income/(loss) \n \n \n - \n \n \n - \n \n \n 247 \n \n \n (238) \n \n \n 9 \n \n \n 81 \n \n \n 90 \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n 44 \n \n \n                     44 \n \n \n                     - \n \n \n                     44 \n \n \n \n \n Purchase of ESOP trust shares \n \n \n                     - \n \n \n                     - \n \n \n                     - \n \n \n                   (15) \n \n \n                   (15) \n \n \n                     - \n \n \n                   (15) \n \n \n \n \n Purchase and cancellation of own shares \n \n \n                     - \n \n \n                     - \n \n \n                     - \n \n \n                   (90) \n \n \n                   (90) \n \n \n                     - \n \n \n                   (90) \n \n \n \n \n Dividends paid \n \n \n - \n \n \n - \n \n \n - \n \n \n (455) \n \n \n                 (455) \n \n \n                     - \n \n \n                 (455) \n \n \n \n \n Distributions to subordinated notes investors \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n                     - \n \n \n                   (58) \n \n \n                   (58) \n \n \n \n \n Issuance of subordinated notes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 970 \n \n \n 970 \n \n \n \n \n Repayment of subordinated notes \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (558) \n \n \n (558) \n \n \n \n \n Fair value adjustment to subordinated notes \n \n \n                     - \n \n \n                     - \n \n \n                     - \n \n \n                     - \n \n \n                     - \n \n \n                     27 \n \n \n                     27 \n \n \n \n \n At 31 December 2025 \n \n \n 171 \n \n \n 3,728 \n \n \n 229 \n \n \n 53 \n \n \n 4,181 \n \n \n 2,025 \n \n \n 6,206 \n \n \n \n \n 1 The increase in the merger reserve in 2024 represents the difference between the fair value and nominal value of the shares issued as consideration for the acquisition of the Wintershall Dea business. \n   \n Consolidated statement of cash flows \n For the year ended 31 December 2025 \n \n \n \n \n   \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n   \n \n \n Note \n \n \n $ million \n \n \n $ million \n \n \n \n \n Net cash inflow from operating activities \n \n \n 30 \n \n \n 3,386 \n \n \n 1,615 \n \n \n \n \n Investing activities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Expenditure on exploration and evaluation assets \n \n \n   \n \n \n (363) \n \n \n (359) \n \n \n \n \n Expenditure on property, plant and equipment \n \n \n 12 \n \n \n (1,435) \n \n \n (884) \n \n \n \n \n Expenditure on non-oil and gas intangible assets \n \n \n   \n \n \n (69) \n \n \n (42) \n \n \n \n \n Expenditure on other intangible assets \n \n \n   \n \n \n (45) \n \n \n (37) \n \n \n \n \n Acquisition of subsidiaries, net of cash acquired \n \n \n 14 \n \n \n 16 \n \n \n (1,044) \n \n \n \n \n Acquisition deposit \n \n \n 16 \n \n \n                           (100) \n \n \n                               - \n \n \n \n \n Disposal deposit \n \n \n 18 \n \n \n                               50 \n \n \n                               - \n \n \n \n \n Finance income received \n \n \n   \n \n \n 106 \n \n \n 76 \n \n \n \n \n Other receipts \n \n \n   \n \n \n 26 \n \n \n 13 \n \n \n \n \n Net cash outflow from investing activities \n \n \n   \n \n \n (1,814) \n \n \n (2,277) \n \n \n \n \n Financing activities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Repurchase of shares \n \n \n   \n \n \n (90) \n \n \n - \n \n \n \n \n Proceeds from bond issuance net of transaction costs \n \n \n 30 \n \n \n                             894 \n \n \n                         1,720 \n \n \n \n \n Proceeds from new borrowings - revolving credit facility \n \n \n 30 \n \n \n 440 \n \n \n 2,225 \n \n \n \n \n Proceeds from subordinated notes net of transaction costs \n \n \n 27 \n \n \n 970 \n \n \n - \n \n \n \n \n Proceeds from new borrowings - reserves based lending facility \n \n \n 30 \n \n \n - \n \n \n 178 \n \n \n \n \n Proceeds from bridge facility \n \n \n 30 \n \n \n - \n \n \n 1,500 \n \n \n \n \n Payments of principal portion of lease liabilities \n \n \n   \n \n \n (257) \n \n \n (265) \n \n \n \n \n Interest paid on lease liabilities \n \n \n   \n \n \n (37) \n \n \n (54) \n \n \n \n \n Repayment of bonds \n \n \n 30 \n \n \n                        (1,391) \n \n \n                               - \n \n \n \n \n Repayment of subordinated notes \n \n \n 27 \n \n \n                           (558) \n \n \n                               - \n \n \n \n \n Repayment of revolving credit facility \n \n \n 30 \n \n \n (690) \n \n \n (1,975) \n \n \n \n \n Repayment of reserves based lending facility \n \n \n 30 \n \n \n - \n \n \n (178) \n \n \n \n \n Repayment of bridge facility \n \n \n 30 \n \n \n - \n \n \n (1,500) \n \n \n \n \n Repayment of financing arrangement \n \n \n 30 \n \n \n - \n \n \n (17) \n \n \n \n \n Purchase of ESOP trust shares \n \n \n   \n \n \n (15) \n \n \n (25) \n \n \n \n \n Interest paid and bank charges \n \n \n   \n \n \n (246) \n \n \n (181) \n \n \n \n \n Distributions paid to subordinated notes investors \n \n \n 30 \n \n \n                             (58) \n \n \n                               - \n \n \n \n \n Dividends paid to shareholders \n \n \n 32 \n \n \n (455) \n \n \n (199) \n \n \n \n \n Net cash (outflow)/inflow from financing activities \n \n \n   \n \n \n (1,493) \n \n \n 1,229 \n \n \n \n \n Net increase in cash and cash equivalents \n \n \n   \n \n \n 79 \n \n \n 567 \n \n \n \n \n Net foreign exchange difference \n \n \n   \n \n \n (11) \n \n \n (37) \n \n \n \n \n Reclassification of cash as asset held for sale \n \n \n   \n \n \n (27) \n \n \n (11) \n \n \n \n \n Cash and cash equivalents at 1 January \n \n \n   \n \n \n 805 \n \n \n 286 \n \n \n \n \n Cash and cash equivalents at 31 December \n \n \n   \n \n \n 846 \n \n \n 805 \n \n \n \n \n   \n Notes to the consolidated financial statements \n 1     Corporate information \n Harbour Energy plc is a limited liability company incorporated in Scotland and listed on the London Stock Exchange. The address of the registered office is 4 th Floor, Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EN, United Kingdom. \n The consolidated financial information for the year ended 31 December 2025 and 2024  contained in this document does not constitute statutory accounts of Harbour Energy plc (Harbour or the company), as defined in section 435 of the Companies Act 2006. The financial information for the years ended 31 December 2025 and 2024 have been extracted from the consolidated financial statements of Harbour Energy plc and all its subsidiaries (the Group) which were authorised for issue by the board of directors on 4 March 2026 and will be delivered to the Registrar of Companies in due course. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 of the Companies Act 2006. \n On 3 September 2024, the Group completed the acquisition of substantially all of Wintershall Dea's upstream oil and gas assets, including those in Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya and Algeria as well as Wintershall Dea's CCS licences in Europe. Under IFRS 3 Business Combinations, the Group is the legal and accounting acquirer as it obtained control over the Wintershall Dea portfolio through the business combination: as it was the entity that issued equity and paid cash to effect the business combination; at completion the existing Harbour Energy plc shareholders held a majority of voting ordinary shares; and from completion, day-to-day management of the enlarged group has been led by existing Harbour Energy plc personnel, with no change to the executive directorship. \n The Group designated 1 September 2024 as the acquisition date (beginning of month) rather than the actual acquisition date of 3 September 2024 (during the month) as the events between the designated acquisition date and the actual acquisition date do not result in material changes in the amounts recognised. \n The acquired Wintershall Dea portfolio results are fully consolidated in the financial statements from 1 September 2024, and all results prior to this date represent those of the legacy Harbour group only. \n The Group's principal activities are the acquisition, exploration, development and production of oil and gas reserves in Norway, the UK, Germany, Mexico, Argentina, North Africa and Southeast Asia. \n 2     Material accounting policies \n Basis of preparation \n The consolidated financial statements have been prepared on a going concern basis in accordance with UK-adopted International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006. The analysis used by the directors in adopting the going concern basis considers the various plans and commitments of the Group as well as various sensitivity and reverse stress test analyses. The results from the severe but plausible downside sensitivities and reverse stress tests with regard to production and commodity price assumptions, which in management's view reflect two of the principal risks, indicate that material changes within the going concern period that would impact the going concern basis of preparation are remote. \n In 2024, the Vietnam Business Unit was classified as an asset held for sale. This sale was completed in July 2025. In 2025, the Indonesia disposal transaction announced in December 2025 was classified as asset held for sale (see note 18). \n The presentation currency of the Group financial information is US dollars and all values in the Group financial information are presented in millions ($ million) and all values are rounded to the nearest 1 million, except where otherwise stated. \n The financial statements have been prepared on the historical cost basis, except for certain financial assets and liabilities, including derivative financial instruments, which have been measured at fair value. \n The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 December 2025. All accounting policies are consistent with those adopted and disclosed in Harbour's 2024  Annual Report & Accounts. \n Basis of consolidation \n The consolidated financial statements comprise the financial statements of the company and its subsidiaries as at 31 December 2025. Subsidiaries are those entities over which the Group has control. Control is achieved where the Group has the power over the subsidiary, has rights, or is exposed to variable returns from the subsidiary and has the ability to use its power to affect its returns. All subsidiaries are 100 per cent owned by the Group, except for five entities holding interests in operations in North Africa and CCS projects which are accounted for as joint operations. \n Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the company and to the subordinated notes investors. \n If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value. \n The results of subsidiaries acquired or disposed of during the year are included in the income statement from the completion date of acquisition or up to the completion date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries acquired to bring the accounting policies used into line with those used by other members of the Group. \n All intra-group transactions and balances have been eliminated on consolidation. \n Prior year adjustment arising from finalising acquisition fair values \n On 3 September 2024, the Group closed the transaction to acquire substantially all of Wintershall Dea's upstream assets from BASF and LetterOne, including those in Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya and Algeria as well as Wintershall Dea's carbon capture and storage (CCS) licences in Europe. A purchase price allocation (PPA) had been performed and provisional fair values of the identifiable assets and liabilities of Wintershall Dea, and resulting goodwill, were disclosed in Harbour's 2024 Annual Report & Accounts. These were finalised during 2025 and resulted in a change in the fair values of the assets and liabilities and associated goodwill, the reasoning for which is described in note 14. Each of the affected financial statement line items have been restated and the impact is summarised in the following table. \n Balance sheet at 31 December 2024 \n \n \n \n \n   \n \n \n As previously reported \n \n \n Adjustments \n \n \n As restated \n \n \n \n \n   \n \n \n $ million \n \n \n $ million \n \n \n $ million \n \n \n \n \n Non-current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Goodwill \n \n \n                  5,147 \n \n \n                      (85) \n \n \n                  5,062 \n \n \n \n \n Property, plant and equipment \n \n \n                14,543 \n \n \n                        35 \n \n \n                14,578 \n \n \n \n \n Current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Trade and other receivables \n \n \n                  2,316 \n \n \n                          6 \n \n \n                  2,322 \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Deferred tax \n \n \n                  6,221 \n \n \n                      (44) \n \n \n                  6,177 \n \n \n \n \n Significant accounting judgements and estimates \n The preparation of the Group's financial statements in conformity with UK-adopted IAS requires management to make judgements, estimates and assumptions at the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the assets or liabilities affected in future periods. \n In preparing these financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses including those that have the potential to materially impact the balance sheet over the next 12 months. Actual results may differ from these estimates. \n The significant judgements made by management in applying the Group's accounting policies, and the key sources of estimation uncertainty, were the same as those described in Harbour's 2024 Annual Report & Accounts, with the removal of the defined benefit obligations on the basis of materiality. \n Judgements \n Significant accounting judgements considered by the Group are: \n \n \n \n \n ▪     The carrying value of intangible exploration and evaluation assets, in relation to whether commercial determination of an exploration prospect had been reached. The costs are subject to regular technical, commercial and management review on at least an annual basis to confirm the continued intent to develop, or otherwise extract value from, the discovery. Where this is no longer the case, the costs are immediately expensed. For the carrying value of intangible exploration and evaluation assets see note 11; \n \n \n \n \n ▪     The carrying value of property, plant and equipment regarding assessing assets for indicators of impairment (see note 12); \n \n \n \n \n ▪     Decommissioning costs in relation to the timing of when decommissioning would occur (see note 21); and \n \n \n \n \n ▪     Tax including assessment of risks around tax uncertainties and the recognition of deferred tax assets (see note  8 below). \n \n \n \n \n Key sources of estimation uncertainty \n Details of the Group's critical accounting estimates are set out in these financial statements and are: \n \n \n \n \n ▪     Purchase price allocation that involved a number of judgemental estimates in determining the fair value of assets and liabilities acquired from Wintershall Dea in September 2024. See note 14 for further information; \n \n \n \n \n ▪     The carrying value of property, plant and equipment and goodwill, where the key assumptions relate to oil and gas prices expected to be realised and the estimation of 2P reserves, 2C resources and production profiles. See notes 10 and 12 for further information; \n \n \n \n \n ▪     Decommissioning costs where the key assumptions relate to the discount and inflation rates applied, applicable rig rates and expected timing of cessation of production (COP) on each field. See note 21 for further information; \n \n \n \n \n ▪     The provision for, or disclosure of, areas of uncertainty for tax purposes where the key assumptions are driven by technical analysis corroborated by external advice; and \n \n \n \n \n ▪     Recognition of deferred tax assets and liabilities, where key assumptions relate to oil and gas prices expected to be realised, and production profiles. See note 8 for further information. \n \n \n \n \n Disclosure regarding the judgements and estimates made in assessing the impact of climate change and the energy transition are described below and references to notes in the financial statements are provided. \n The results from downside sensitivities prepared with regard to production and commodity price assumptions, which in management's view reflect the principal risks, indicate that material changes that would impact the carrying amounts of assets and liabilities within the next financial year are unlikely. \n Impact of climate change on the financial statements and related disclosures \n Judgements and estimates made in assessing the impact of climate change and the energy transition \n Harbour monitors global climate change and energy transition developments and plans. Management recognises there is a general high level of uncertainty about the speed and scale of impacts which, together with limited historical information, provides challenges in the preparation of forecasts and plans with a range of possible future scenarios, which may have the potential to materially impact the balance sheet. \n The Group's strategic aspiration is to be net zero by 2050 with an interim target of a 50 per cent reduction in gross operated Scope 1 and 2 emissions by 2030 against the 2018 baseline. This will be achieved through several opportunities, including operational efficiency improvements, targeted decarbonisation projects and the eventual cessation of production of mature fields. In addition, the company is investing in the development of CCS projects in the UK and Europe. \n All new economic investment decisions include the cost of carbon, and opportunities are assessed on their climate-impact potential and alignment with Harbour Energy's net zero aspiration taking into consideration both GHG volumes and intensity. The acquisition in 2024 has helped to advance our energy transition objective by strategically shifting our portfolio towards natural gas. Over time this move is expected to notably reduce our greenhouse gas intensity on a net equity basis. The corporate modelling that supports the preparation of the financial statements (such as asset and goodwill impairment assessment, going concern and viability, deferred tax asset recoverability) includes project costs related to CCS, certain decarbonisation projects once sanctioned, other activities to reduce gross operated Scope 1 and 2 GHG emissions, the UK and EU Emissions Trading Scheme costs and carbon offset purchases. Emissions reduction incentives are part of staff remuneration through the annual bonus programme. \n Climate change and the energy transition have the potential to significantly impact the accounting estimates adopted by management and therefore the valuation of assets and liabilities reported on the balance sheet. On an ongoing basis, management continues to assess the potential impacts on the significant judgements and estimates used in the preparation of the financial statements. Estimates adopted in the financial statements reflect management's best estimate of future market conditions where, in particular, commodity prices can be volatile. Commodity and carbon price curve assumptions are described below noting that there is consideration given to other assumptions, not exhaustively, such as foreign exchange and discount rates. Notwithstanding the challenges around climate change and the energy transition, it is management's view that the financial statements are consistent with the disclosures in the Strategic report, Governance and Additional information section of the Annual Report and Accounts. \n This note provides insight into how Harbour has considered the impact on valuations of key line items in the financial statements and how they could change based on the climate change scenarios and sensitivities considered. The scenarios presented show what the possible impact could be on the financial statements considering both high and low commodity and carbon price outlooks plus discount rates range. Importantly, these climate change scenarios do not form the basis of the preparation of the financial statements but rather indicate how the key assumptions that underpin the financial statements would be impacted by the climate change scenarios. They are also designed to challenge management's perspective on the future business environment. It is recognised that the reality of the nature of progress of energy transition will bring greater levels of disruption and volatility than these external scenarios expect and do not represent management's current best estimate. \n The financial statements have been prepared using management's current best estimate for the foreseeable future, based on a range of economic forecasts and represented by the Harbour scenario oil price curve. Management regularly reviews these estimates and assumptions to ensure they align with the latest economic conditions and market information.  \n Property, plant and equipment, and goodwill  \n Transitioning to lower carbon energy as the energy transition progresses has the potential to significantly impact future commodity and carbon prices which would, in turn, affect the future operating and capital costs, estimates of cessation of production, useful lives, and consequently the recoverable amount of property, plant and equipment and goodwill. \n The non-current assets of the Group, particularly goodwill and oil and gas assets within property, plant and equipment, are considered to be the most sensitive to the energy transition. \n Depreciation, estimated useful life and risk of stranded assets  \n The energy transition and the rate of its progression may impact the remaining lifespan of assets. Typically, the Group's oil and gas assets are depreciated using a unit of production method, which is based on the ratio of production in the year to the commercial proven and probable reserves of the field, considering future capital development expenditures. \n As at 31 December 2025, the...

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