Harbour Energy Raises Lower End of Full Year Production Guidance, Shares Surge

The Harbour Energy (LON: HBR) share price surged more than 9% on Thursday after the company raised the lower end of its full-year production guidance range following a strong first-quarter performance.

HBR also announced that in its UK business, it initiated a review of its Aberdeen-based organisation, which is expected to result in “at least a 25% reduction in headcount.”

The company said this will align with the “significantly lower investment levels in light of the continued challenging domestic fiscal and regulatory environment.”

Focusing on the first quarter, Chief Executive Officer Linda Cook said Harbour Energy experienced a strong start to the year. 

“Production averaged 500 kboepd in the first quarter, reflecting the addition of the high-quality Wintershall Dea portfolio and excellent operational delivery,” commented Cook. “This, together with improved European gas price realisations and lower unit costs, drove significant free cash flow of c.$0.7 billion.”

The company said revenue for the quarter came in at $2.8 billion, up from the $0.9 billion in Q1 2024. The increase is said to reflect higher production and realised post-hedge oil and European gas prices of $74/bbl and $14/mscf, respectively.

Harbour increased its 2025 production guidance to a range of 455–475 kboepd, up from 450–475 kboepd, citing better-than-expected results ahead of scheduled maintenance in Norway and the UK.

Cook added, “Recent market volatility reinforces the benefits of our diverse portfolio and our prudent approach to risk management.” She noted the company’s recent $1.9 billion bond issuance and steps taken to offset lower commodity prices.

The company believes it remains well-positioned to deliver against its capital allocation priorities.

Harbour also reported a 30% drop in unit operating costs to $13/boe. Net debt fell by $0.5 billion, while the company reaffirmed its annual dividend policy and flagged potential share buybacks depending on market conditions.