Harbour Energy adjusted profit jumps 63% to $603m in 2025

Core Insights - Harbour Energy reported an adjusted profit after tax of $603 million for the full year 2025, marking a 63% increase from $370 million in 2024 [1] - The company's revenue and other income surged by 66% to $10.3 billion in 2025, up from $6.2 billion in 2024 [1] - Earnings before interest, tax, depreciation, amortisation, and exploration (EBITDAX) climbed to $7.1 billion in 2025, a 76% rise from $4.02 billion the previous year [1] Financial Performance - Adjusted EBITDAX reached $7.2 billion, reflecting a 74% increase from $4.14 billion [2] - Despite positive metrics, the company reported a loss after tax of $182 million, impacted by a 106% effective tax rate and a deferred tax charge of $300 million due to changes in the UK fiscal regime [2] - Unit operating costs were reduced by 22%, down to $12.8 per barrel of oil equivalent (boe) from $16.5/boe the previous year [3] Operational Highlights - Harbour Energy achieved production of 474,000 barrels of oil equivalent per day (boepd), an 84% increase from 258,000 boepd in the previous year [2] - The company brought new wells and projects online across the UK, Norway, Argentina, and Egypt, with exploration successes in Egypt and Norway [3] Strategic Developments - Harbour Energy was appointed as the operator of Mexico's Zama oilfield, with gross recoverable reserves of 750 million barrels of oil equivalent, and initiated a capital-efficient phased development plan [4] - Construction has begun on the six million tonnes per annum Southern Energy LNG project in Argentina, where the company holds a 15% stake, with operations expected to start by the end of 2027 [4] - The company announced its exit from Vietnam and plans to divest $215 million in Indonesia, with transactions expected to complete by mid-2026 [5] Acquisitions and Future Outlook - Harbour Energy completed the acquisition of LLOG for $3.2 billion, securing a fully operated oil-weighted portfolio with significant growth potential in the deep-water US Gulf [6] - The company announced a $170 million acquisition of Waldorf in the UK, expected to unlock financial synergies valued at approximately $900 million upon completion by mid-2026 [5] - Looking ahead to 2026 and beyond, production levels are anticipated to be between 475,000 and 500,000 boepd, with unit operating costs around $14.5/boe [6]