Harbour Energy raises its 2025 free cashflow forecast following the Wintershall Dea transaction

Harbour Energy, which focuses on the North Sea, raised its forecast for free cash flow, production and its annual production. This was boosted by a robust production, as it integrated Wintershall Dea's assets. The shares of Harbour Energy rose sharply.

Harbour Energy is the largest British North Sea Oil and Gas Producer.

Complete its acquisition

Wintershall Dea assets in December last year, the company said that the transaction had led to a "step-change" in the size, resilience and longevity of its portfolio.

The company that was formed in 2021 by the merger between Chrysaor Oil and Premier Oil now expects $1 billion of free cash flow to be recorded in 2025. This is up from an earlier forecast of $900 millions.

After the UK's tax changes, which will take place in late 2024, removed the incentives for reinvestment, it has been shifting its capital to international assets.

"Investment here is difficult to compete with opportunities in other countries as long as the tax regime remains the same," said Linda Z. Cook, CEO.

Harbour announced plans to build a new harbour in May.

cut 250 jobs

Around a quarter is employed at the UK-based Aberdeen unit.

The company announced a $100-million share buyback Thursday, bringing the total distributions to shareholders for this year up to $555 million.

By 0938 GMT, shares of the London-listed company were up 12.7% to 230.3 pence.

Harbour has also raised the lower end in its production forecast for full year to 460,000-475,000 barrels equivalent per day (boepd) from 455,000-475,000 boepd.

The first half of 2025 saw a triple in production, with 488,000 boepd. This was due to new wells being drilled in the UK and Norway, as well as Argentina.

(source: Reuters)