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Harbour Energy (HBR) Shares Plunged 7.9% on Delays in Launching New Offshore Oil Rig

Updated: 21 Jul 2021

Shares of Harbour Energy PLC (LON: HBR) plunged 7.9% after announcing that it would postpone the launch of its Tolmount offshore gas field in the UK North Sea after experiencing electrical problems with the drilling platform.

The offshore oil production company told investors that it encountered electrical problems when testing the platform, which was recently delivered and that the issues were being investigated before being resolved.

Harbour Energy noted that the delayed start would impact its daily production target by 10,000 boepd, lowering its overall production guidance for the year to 185,000 to 195,000 boepd on a proforma basis and 170,000 to 180,000 boepd on a reported basis.

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The company focused on oil production in the UK North Sea had seen its share price fall drastically since March, when the company was formed.

Harbour Energy was formed via the merger of Premier Oil and Crysaor Energy, and many investors are concerned about the company’s massive debt load following the merger.

However, the oil company’s management had reassured investors that it would keep increasing production throughout the year. The postponement of the Tolmount platform launch will hinder its objective of growing its production for the next few months.

Harbour Energy recently implemented a 20:1 reverse stock split to boost its share price and reduce the number of shares available for trading after its share float ballooned following the merger.

From a technical perspective, Harbour Energy shares are trading above a crucial support level, which could fuel a rally higher if it holds over the next few days, presenting an excellent trade opportunity for bullish traders and investors.

*This is not investment advice.

Harbour Energy share price.

IG chart of Harbour Energy share price 21-07-2021

Harbour Energy shares plunged 7.89% to trade at 284.8p, falling from Tuesday’s closing price of 309.2p.

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