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Here’s Why Harbour Energy (HBR) Share Price Is Stuck Trading Sideways Despite Positive Updates

Simon Mugo trader
Updated 6 Oct 2021

Harbour Energy PLC (LON: HBR) share price has been stuck in a trading range despite the UK oil company reporting positive updates such as its profitable H1 2021 results.

The independent UK oil company reported a pretax profit of $120.2 million for the six months ended June 30, 2021, compared to a $224.3 million loss reported in a similar period last year.

The release of the oil firm’s financial results on September 23, 2021, barely moved its shares, which ended the day down 4.95%. The company reiterated its full-year production guidance of 170,000-180,000 barrels of oil equivalent per day.

Investors were largely unmoved by the company’s positive prospects as its shares have kept trading in a tight consolidative range since then to date.

Rumours that Harbour Energy might merge with Neptune Energy, which private equity funds back in the future, had a minimal impact on its shares, which rose 7% on the day and proceeded to erase all gains on the next day.

Harbour’s recent announcements of an offering of $500 million senior secured notes did not move its shares significantly even as the oil firm prepares to repay in full and retire its shall junior facility using the issuance proceeds.

The company’s shares closed 5.51% higher on October 4, 2021, following the announcement but proceeded to fall again to erase most of the gains by the time I’m writing this.

These previous announcements indicate that Harbour Energy shares are not responsive to news releases and would need a significant trigger to fule the next uptrend or downtrend.

Meanwhile, fundamental investors are worried about the independent oil company’s massive debt burden, which could weigh down its financial performance in future as the debt matures and has to be paid off.

HBR shares do not have a good history of respecting prior support and resistance levels. Hence, they are not easy to trade for short term traders.

*This is not investment advice.

Harbour Energy share price.

IG chart of Harbour Energy share price 06-10-2021

Harbour Energy shares fell 4.56% to trade at 355.6p, falling from Tuesday’s closing price of 372.6p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading