Harbour Energy posts first-half profit, mulls Falkland Islands project exit

Harbour Energy posts first-half profit, mulls Falkland Islands project exit

Harbour Energy was mulling options to exit the Falkland Islands project, the company said on Thursday after posting a first-half pretax profit as production from varied assets and the absence of impairment charges offset weaker oil prices.

Struggling with heavy debt after the oil price crash of 2017 and tepid profits during COVID-19 lockdowns, Premier Oil struck a deal with Chrysaor last year to bolster its oil and gas resources and began trading as Harbour Energy in April.

“The extended maintenance programmes, which impacted our production, have been completed. Drilling activity has returned to pre-COVID-19 levels and the merger integration is progressing well, all underpinning strong future cash flow generation,” Chief Executive Officer Linda Z Cook said.

The oil and gas producer said it decided to exit the Sea Lion project in Falkland Islands, as it is not deemed a strategic fit for Harbour.

The London-listed firm also planned to exit its exploration licence interests in the Ceará Basin in Brazil and in the Burgos Basin in Mexico.

“This is in line with the Group’s exploration strategy, which is focused primarily on infrastructure-led, lower-risk opportunities in areas with an existing Harbour presence,” the company added.

Harbour said pre-tax profit came in at $120 million for the six months ended June 30, from a loss of $224 million a year earlier.

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Published: 23-09-2021