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Hurricane Energy (HUR) Share Price Fell 4.15% After Repaying Bonds Worth $15M

Simon Mugo trader
Updated 8 Dec 2021

Hurricane Energy PLC (LON: HUR) share price fell 4.15% after revealing that it had repurchased convertible bonds worth  $15 million via Hurricane GLA Limited, its subsidiary, for a total sum of $14 million.

The North Sea oil company continues to repay its outstanding bonds due 2022, which stood at $230 million before the latest purchase, bringing the total amount down to $137 million and saving the company $1.8 million in interest charges and debt repayments.

It is pretty impressive to see Hurricane Energy’s management team committed to reducing its debt burden even as the company faces the threat of liquidation.

The downgrading of the reserves at its Lancaster oil field earlier this year plunged the firm into a massive crisis.

The energy company is slowly rebuilding its operations and balance sheet after the previous management team resigned on allegations of not prioritising shareholders interests, which made the courts reject a restructuring plan favouring bondholders.

The changes made by the current management team, including the repurchase of bonds worth $77.98 million in September, have restored investor confidence in the company, evidenced by the 218.5% rally in Hurricane’s share price over the past six months.

According to the results released in mid-October, Hurricane Energy even swung to an H1 profit and had significant cash reserves at the time.

Antony Maris, Hurricane Energy’s CEO, commented: “Managing our outstanding debt is a key focus for Hurricane, and I am pleased we have been able to take this positive opportunity to further reduce our bond obligations. Despite the current economic climate and volatile oil price, and the remaining challenge of bridging any funding gap for the repayment of the bonds, we will continue to look at all options to maximise value from our assets as we focus on meeting our debt repayment obligations and beyond.”

Despite the changes made by the new management, I would still stay away from Hurricane’s shares, given the uncertain future of the operations at its Lancaster oil field.

*This is not investment advice. Always do your due diligence before making investment decisions.

Hurricane Energy share price.

IG chart of Hurricane Energy share price 08-12-2021
Source: IG

Hurricane Energy share price fell 4.15% to trade at 3.907p, falling from Tuesday’s closing price of 4.076p.

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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