Image source: Company update

Highlights

  • Q1 2025 revenue surged to $2.8 billion, up from $0.9 billion in Q1 2024, driven by higher production and significant post-hedge oil and gas prices.

  • Free cash flow hit $0.7 billion, reducing net debt by $0.5 billion; full-year free cash flow forecast now at $0.9 billion.

  • Full-year production guidance raised to 455–475 kboepd.

Harbour Energy (LSE:HBR) has reported a robust financial and operational performance for the first quarter of 2025, with unaudited figures showing a dramatic year-on-year increase in revenue and free cash flow. The company generated $2.8 billion in revenue during Q1, a sharp rise from $0.9 billion in the same period last year. This growth was underpinned by increased production levels and favourable realised post-hedge prices—$74 per barrel for oil and $14 per thousand standard cubic feet (mscf) for European gas.

Harbour’s free cash flow reached $0.7 billion in Q1 2025, compared to just $0.1 billion in Q1 2024. This was largely due to the timing of tax payments and capital expenditure phasing. As a result, the company was able to reduce net debt by $0.5 billion.

Capital expenditure for the quarter stood at approximately $0.5 billion, up from around $0.3 billion in the first quarter of 2024. The increase reflects Harbour’s continued investment in high-value projects, which are being increasingly refined through capital high-grading efforts.

Harbour also reaffirmed its hedge position, with around 40% of 2025 liquids and European gas volumes secured. Additional hedges have been put in place for 2026 and 2027, in line with the company’s prudent risk management policy.

Looking forward, Harbour has narrowed its full-year production guidance upwards to 455–475 thousand barrels of oil equivalent per day (kboepd), from the previous range of 450–475 kboepd. 

Operating costs for the year are expected to remain steady at about $14 per barrel of oil equivalent (boe), although a softer USD outlook is tempering some of the cost gains. Meanwhile, full-year capital expenditure has been fine-tuned to between $2.4 billion and $2.5 billion.

Harbour also revised its 2025 free cash flow outlook to approximately $0.9 billion, assuming average prices of $65/bbl for oil and $12/mscf for gas from Q2 through Q4. This compares to a previous forecast of $1 billion, which had assumed higher commodity prices of $80/bbl and $13/mscf.