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• Production: Increased to 258,000 barrels of oil equivalent per day in 2024, with expectations to average around 500,000 barrels per day in Q4 2024.

• Revenue: Approximately $6 billion in 2024, up about 65% from the previous year.

• EBITDA: Approximately $4 billion, up 50% from the previous year.

• Operating Costs: Stable at $16.5 per BOE in 2024, with expectations for a 15% reduction in 2025.

• Capital Expenditure: Increased to $1.8 billion in 2024 from $1 billion in 2023.

• Net Debt: $4.4 billion at the end of 2024.

• Free Cash Flow: $0.1 billion in 2024 before shareholder distributions and acquisition-related costs.

• Tax Charge: Total tax charge of $1.3 billion, with an effective tax rate of 108%.

• Net Income: Loss of $93 million, resulting in a loss per share of $0.10.

• Reserves and Resources: Tripled reserves and resources, with a 2C resource base of 1.9 billion barrels of oil equivalent.

• Realized Pricing: Crude oil sales averaged $82 per barrel; European gas realized $11 per MCF.

• Goodwill: $5.1 billion on the balance sheet, with $3.8 billion related to the recent acquisition.

• Deferred Tax Liabilities: Increased to $6.2 billion from $1.3 billion in 2023.

• Warning! GuruFocus has detected 2 Warning Signs with HBRIY.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Harbour Energy PLC (HBRIY) completed a transformational acquisition of Wintershall Dea's assets, significantly increasing its scale, global presence, and financial strength.

• The company achieved investment-grade credit ratings, reflecting its improved financial position post-acquisition.

• Production increased to 258,000 barrels of oil equivalent per day, with expectations to maintain around 500,000 barrels per day in early 2025.

• Harbour Energy PLC (HBRIY) reported a substantial increase in revenue and EBITDA, up 65% and 50% respectively, due to the acquisition.

• The company has a diversified portfolio with exposure to both international oil and European gas prices, supporting resilient cash flow.

Negative Points

• The UK fiscal and regulatory uncertainty poses challenges for future investment opportunities in the region.

• Harbour Energy PLC (HBRIY) reported a high effective tax rate of 108%, driven by the UK energy profits levy.

• There were significant non-cash impairment charges related to UK assets, impacting financial results.

• The company faces challenges in Argentina related to infrastructure and market access for its Vaca Muerta resources.

• Harbour Energy PLC (HBRIY) has a substantial amount of debt, with plans to prioritize debt reduction over share buybacks in the short term.