Key points:
- Harbour Energy shares surged 10.9% on upbeat H1 2022 Results.
- The oil company’s earnings soared on higher production and oil prices.
- The firm revised its 2022 guidance upwards, hence, the rally.
The Harbour Energy PLC (LON: HBR) share price surged 10.9% after releasing upbeat results for the first half of 2022. Some of the report’s key highlights include a 40% increase in its daily production capacity to 211,000 boepd during the period as compared to a similar period in 2021.
Not only did the company increase its oil production, but it also managed to lower its production costs per barrel by 5% to $14.2. As a result, the company’s pretax profits soared to $2.0 billion, while its after-tax profits were $984 million after deducting an income tax expense of $506 million.
Also read: Best Oil Stocks To Buy Right Now.
The company claims to be the largest UK-listed independent oil and gas company with a global footprint, given its operations in the UK, Mexico, Norway, Vietnam and Indonesia. The company discovered material gas deposits at the Timpan prospect in the Andaman Sea (Indonesia).
Investors cheered the company’s decision to increase its share buyback program to $300 million from the $200 million announced in June this year. The firm’s capital expenditures were $391 million, most of which were in the UK.
Harbour Energy updated its 2022 forecasts, starting with its production targets, which were narrowed to 200-210 kboepd, while its capital expenditures budget was lowered to $1.2 billion from $1.3 billion due to a delay in the delivery of two drilling rigs in the UK.
Investors were reminded that the oil company paid its first-ever dividend of 498 million in May and declared a $100 million interim dividend.
Linda Cook, Harbour Energy’s CEO, commented: “We delivered a strong first half performance, realising value from past acquisitions, increased production efficiency and significant investment in our asset base. Our Tolmount project alone – brought onstream in April – has increased UK domestic natural gas supply by over 5 per cent. At a time when many are struggling with high energy prices, we are increasing investment by c.30 per cent compared to last year, focusing on doing what we can to deliver reliable, domestic oil and gas from our existing portfolio in a safe and responsible manner.”
*This is not investment advice.
HBR share price.
Harbour Energy shares surged 10.91% to trade at 477.7p, rising from Wednesday’s closing price of 430.7p.
