THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Harbour Energy plc

2026 Half-year results

6 August 2026

RECORD PRODUCTION, IMPROVED OUTLOOK AND $250 MILLION SHARE BUYBACK ANNOUNCED

 

Harbour Energy plc ("Harbour" or the "Company" or the "Group") today announces its unaudited half-year results for the six months ended 30 June 2026.

Linda Z Cook, Chief Executive Officer, commented:

"In a volatile macro environment, we remain focused on executing our strategy: sustaining our production, strengthening our portfolio, ensuring financial resilience and delivering competitive shareholder returns.

"During the first half of the year we delivered excellent operational performance, leading to record production of more than 500,000 barrels per day and another upgrade to our full year guidance. Along with higher oil and European natural gas prices, this has enabled an increase to our 2026 free cash flow outlook to $1.8 billion. As a result, we are accelerating debt reduction and also the delivery of additional shareholder returns through a new $250 million share buyback.

"In addition, we completed the strategic LLOG Exploration (US) and Waldorf (UK) acquisitions, and the divestment of non-core assets in Indonesia. These moves further strengthen our portfolio, supporting both production and cash flow for years to come."

Highlights

The Company made significant progress against its strategic priorities in the first half, including:

Responsibly sustaining production at scale

▪     Increased production of 509 kboepd, up 4% (H1 2025: 488 kboepd)
▪     New wells online including in the US, Argentina, and in Norway where the Dvalin North project started up ahead of schedule
▪     Unit operating costs of $13.3/boe (H1 2025: $12.4/boe)
▪     Total recordable injury rate of 1.5 per million hours worked (H1 2025: 1.1)
▪     Net equity GHG emissions intensity of 13.0 kgCO2e/boe (H1 2025: 13.8 kgCO2e/boe)1

 

Building a competitive portfolio

▪     Three strategic transactions completed:
−     US: LLOG Exploration acquisition adds a new core country with an operated, oil-weighted portfolio, compelling growth profile and a supportive fiscal regime
−     UK: Waldorf acquisition (completed post period end) delivers significant financial and operational synergies, enhancing the resilience of our UK business
−     Indonesia: Divestment of non-core assets improves overall portfolio quality
▪     Pipeline of future infrastructure-led projects advanced including approval of developments in Norway (Gjøa subsea projects), expected approval of Who Dat East (US) later this month and several projects across our core countries scheduled to reach final investment decision (FID) by year end
▪     Growth projects progressed, supporting future reserves replacement:
−     Argentina: Southern Energy LNG export project (Harbour 15%) on track for end 2027 start up, providing access to global markets for Harbour's Vaca Muerta natural gas resource
−     Mexico: Development concepts for operated Zama and Kan projects further optimised; partner alignment strengthened by Grupo Carso's increased participation in both projects
▪     Exploration success in Norway at Omega Sør where the operator is fast tracking development
▪     Exploration portfolio enhanced with the award of nine exploration licences (four as operator) in the 2025 Norway APA licensing round and 12 leases (all as operator) in the US Big Beautiful Gulf 1 and 2 bid rounds

Ensuring financial resilience

▪     Realised post-hedge oil and European gas prices of $84/bbl and $14.4/mscf (H1 2025: $71/bbl, $13.4/mscf)
▪     Increased revenue of $6.4 billion (H1 2025: $5.3 billion), up c.20%; increased reported and adjusted EBITDAX of $4.4 billion and $4.5 billion, respectively (H1 2025: $3.9 billion, $3.9 billion)
▪     Increased reported and adjusted profit after tax of $0.4 billion and $0.6 billion, respectively (H1 2025: loss of $0.2 billion, profit $0.4 billion). Increased reported earnings per share of 21 cents (H1 2025: loss 12 cents); on an adjusted basis, up 27% at 28 cents per share (H1 2025: 22 cents)
▪     Free cash flow over the period of $1.8 billion (H1 2025: $1.4 billion)2, up c.30% and reflecting strong first half performance and commodity prices as well as the second half weighting of tax payments
▪     Significantly reduced leverage following completion of the $3.2 billion LLOG acquisition in February, with period-end net debt and leverage of $5.4 billion and 0.7x, respectively (YE 2025: $4.4 billion, 0.6x)3
▪     Post period end, successfully refinanced our $3.0 billion revolving credit facility (RCF), extending maturity to 2031 and improving commercial terms. Investment grade credit ratings from all three agencies maintained

 

Delivering competitive shareholder returns

▪     Interim dividend of 8.05 cents per voting ordinary share ($150 million4) to be paid in September, in line with our minimum annual dividend policy of 16.10 cents per voting ordinary share

▪     Reflecting the strong first half and outlook for the year, a new $250 million share buyback programme announced today, accelerating additional shareholder returns for 2026

 

Outlook for the year

▪     Production guidance further improved to 490-500 kboepd (480-500 kboepd previously)

▪     Operating cost guidance for 2026 unchanged at c.$14.5/boe

▪     Total capital expenditure guidance reiterated at $2.2-$2.4 billion

▪     Free cash flow outlook increased to c.$1.8 billion (from c.$1.4 billion), driven by stronger production and a commodity price outlook for the second half of $80/bbl Dated Brent and $16/mscf European gas5

▪     In line with our distributions policy and based on the $1.8 billion free cash flow outlook, a minimum of $800 million to be returned to shareholders for 2026. This includes at least $500 million of additional cash returns beyond our annual dividend, starting with the $250 million share buyback announced today

 

Enquiries

Harbour Energy plc                              

Elizabeth Brooks, SVP Investor Relations

Andy Norman, SVP Communications

Tel: +44 (0) 20 3833 2320

Email: [email protected]

Online presentation for analysts and investors

Management will host a live online presentation for analysts and investors at 9.00am (GMT). The link to register, and the presentation, will be available on www.harbourenergy.com. A replay will be available on Harbour's website shortly after the event.

Forward looking statements

This statement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Harbour believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Harbour's control or within Harbour's control where, for example, Harbour decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.

The information contained within this announcement is deemed by Harbour to constitute inside information for the purposes of the UK Market Abuse Regulation. By the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of Harbour is Howard Landes, General Counsel.

 

Summary of 2026 half-year performance

Sustain production at scale safely, efficiently and responsibly

Excellent production performance
Production in the first half averaged a record 509 thousand barrels of oil equivalent per day (kboepd) (H1 2025: 488 kboepd), split approximately 40 per cent liquids, 40 per cent European natural gas and 20 per cent other natural gas.

The increase versus the first half of 2025 was driven by the addition of the LLOG portfolio (from February), which more than offset the impact of the Vietnam and Indonesia divestments and natural decline in the UK. Production also benefited from strong operational performance in Norway, including excellent reservoir delivery from the Harbour operated Gjøa satellite fields and the latest Njord wells. High reliability across the global portfolio with 93 per cent operating efficiency together with the successful delivery of new wells and developments, including in Norway, the US and Argentina, further underpinned performance.

kboepd, WI	H1 2026			H1 2025
	Liquids*	Gas	Total	Liquids*	Gas	Total
Norway	69	112	180	58	115	173
UK	70	78	148	83	78	161
Argentina	6	68	74	5	69	75
US**	30	3	33	-	-	-
Mexico	9	1	10	9	2	10
Other inc. SE Asia	23	40	64	27	42	69
Total	206	303	509	182	306	488

Owing to rounding, totals do not match the sum of the component parts *Includes oil and NGLs ** Reflects LLOG production contributing from 1 February 2026, averaged over H1 2026

 

Full year 2026 production guidance is again narrowed upwards to 490-500 kboepd (480-500 kboepd previously), reflecting first half results, good progress on planned summer maintenance, accelerated project delivery in Norway and strong production in July of 510 kboepd. 

Cost and capital discipline

Unit operating costs averaged $13.3/boe (H1 2025: $12.4/boe). Increased volumes were offset by foreign exchange headwinds, higher fuel costs and the addition of the LLOG portfolio which carries higher unit operating costs near term as production ramps up. For the full year, guidance is unchanged at c.$14.5/boe, impacted by the second half planned maintenance activities and the addition of the Waldorf assets in the UK in July.

Total capital expenditure including decommissioning spend for the period was $1.0 billion (H1 2025: $1.2 billion). Full year guidance is reiterated at $2.2-$2.4 billion.

Safe and responsible operations

The total recordable injury rate for the first six months of the year increased to 1.5 per million hours (H1 2025: 1.1), reflecting several, mostly minor, incidents in Norway. Process safety events during the period also increased, with Tier 2 events in our mature onshore Mexico operations and now-divested Indonesian assets. We continue to apply learnings across the portfolio, supported by rigorous investigations and collaboration between business units.

During the period we reduced our GHG intensity to 13.0 kilograms of CO₂ per barrel of oil equivalent (kgCO₂e/boe) on a net equity share basis (H1 2025: 13.8 kgCO₂/boe)⁶, supported by strong operational performance and the divestment of our more emissions-intensive Indonesia and Vietnam assets. In our non-operated portfolio, a new wind farm in Argentina started supplying renewable energy to our CMA-1 gas processing plants, reducing emissions from power generation. Our methane emissions intensity remains below our 0.2 per cent target across our operated sites and we remain on track to deliver against our Zero Routine Flaring goal by 2030.

Accelerated project delivery

The majority of Harbour's 2026 capital programme is focused on infrastructure-led opportunities, profitably converting reserves into production and cash flow, predominantly in Norway, the UK, the US and Argentina.

In Norway, accelerated project delivery has increased the number of developments expected onstream this year from three to five. Following start up from Solveig Phase 2 in February, we delivered first gas from our operated Dvalin North project in June, ahead of schedule and under budget, reflecting strong drilling performance. Alve North and Idun North (tie-backs to Skarv) are set for accelerated start up in August while Irpa (tie-back to Aasta Hansteen) is progressing towards first gas in Q4. Alongside infill drilling, including at Njord and Nova, these developments support Harbour's near-term production in the country.

In the UK, investment in the first half was focused on well intervention activity across our operated hubs. Drilling also continued at Clair Ridge and Elgin Franklin. Together these activities helped to reduce the overall rate of production decline from our UK business.

In the US Gulf of America, the addition of the LLOG portfolio expands our inventory of high return opportunities, supporting portfolio high-grading and free cash flow margin expansion. During the period, we delivered the Leon-1 well which supports the ramp up of production from the Leon-Castile hub, a fifth well at Buckskin which has outperformed expectations and a sidetrack at Who Dat which came online in July with initial production rates also materially above plan. Activity will accelerate through the remainder of the year with further drilling across Who Dat, Buckskin, Leon-Castile and Taggart. The arrival of the second rig in late Q3 will enable optimisation of drilling and completion activity, supporting continued production growth beyond 2028.

Onshore in the Vaca Muerta unconventional shale play in Argentina, nine new gas wells at the Aguada Pichana Este licence (APE) were brought onstream in the first half of the year with continued operational efficiencies driving lower drilling and completion costs. A further three wells will be drilled this year to maintain production levels at plant capacity.

Elsewhere, in Egypt, development of Fayoum-Messinian through the West Nile Delta infrastructure commenced with first gas expected before year end and, in the Greater Disouq Area, the EZZ-2 discovery was successfully appraised with start up accelerated into August. In Germany, the Emlichheim hot water project is advancing towards start up in Q4 while ongoing infill drilling at Mittelplate continues to support Harbour's production in country.

Build a competitive portfolio of reserves and resources
Harbour benefits from a large and diverse 2C resource base and we remain focused on maturing our most competitive projects.

High-return, short-cycle, infrastructure-led opportunities

In Norway, we sanctioned the Gjøa subsea projects (Gjøa North and Ofelia) while our operated Cuvette discovery and Adriana Sabina are progressing towards FID by year end. We also delivered exploration success at Omega Sør which is being fast tracked for development via the Snorre A platform. Two further exploration wells are expected to spud this year while the award of nine exploration licences in the 2025 APA licensing round, four as operator, will help to replenish our portfolio.

 

Post period end, in July, we completed the acquisition of a 45 per cent interest in the Ithaca-operated Fotla oil and gas discovery in the UK, a high return development opportunity. FID of the two well tie-back to Harbour's operated Greater Britannia hub is expected by year end. The Leverett tie-back development to Britannia is now expected to follow Fotla.

In the US GoA, approval of the Who Dat East development is expected in August while FID of the Salamanca FPS subsea pump project, which will accelerate reserves recovery at Leon-Castile, is expected by year end. We expect to spud the Kingsroad exploration well later this year using the second rig and were awarded 12 operated leases near existing infrastructure in the recent Gulf auctions. In addition, we acquired new OBN (ocean-bottom node) seismic data across our acreage in Keathley Canyon and Green Canyon, leveraging the LLOG team's strong exploration track record to unlock additional prospectivity near Leon-Castile, Buckskin and Kingsroad.

Material long-term growth opportunities

Mexico today represents Harbour's most material long-term growth opportunity, with the potential to build a scaled business around our operated shallow water Zama and Kan hubs and add reserves equivalent to almost two years of Harbour's production.

During the period, we continued to optimise the development concepts for Zama and Kan to enhance returns and reduce risk. In addition, invitations to tender for the major Zama FEED packages, including in relation to the FPSO, will be issued this month. Grupo Carso's increased participation across both projects, via the acquisition of a 5 per cent interest in Zama from Harbour and their recently announced farm-in to Kan, further strengthens our partnership in the country. We remain on track to achieve FID-readiness of Zama and Kan by end 2027.

In Argentina, Southern Energy (SESA), the two-vessel 6 mtpa LNG export project (Harbour 15 per cent), which will provide access to global markets for Harbour's Vaca Muerta natural gas resource, remains on track to commence operations by end 2027. The first liquefaction vessel has left Cameroon for upgrades in Singapore while conversion of the second is underway in China. During the period, SESA signed an eight-year, 2 mtpa LNG offtake agreement with SEFE (Securing Energy for Europe) and marketing of the second vessel's capacity is underway with strong customer interest. Progress has also been made on the dedicated Vaca Muerta-San Matías pipeline with the EPC contract awarded, relevant environmental licence granted and RIGI incentives secured.

Also in Argentina, Harbour and its partners continue to progress the application for the San Roque unconventional licence. This would allow the development of the Vaca Muerta black oil licence to commence with a potential 16-well programme starting in 2027.

Building a competitive CCS business

Harbour has a leading CO₂ storage position in Europe offering the potential for long-term, stable cash flow. During the period, we continued to progress our three most advantaged projects.

In Denmark, good progress was made on the small-scale, offshore Greensand Future project where commissioning is underway and commercial operations are expected to commence in the third quarter with a CO₂ injection rate of 400,000 tonnes per annum. At our operated onshore Greenstore project a large 3D seismic survey was completed and we spudded an appraisal well post period end to further evaluate the quality of the targeted CO₂ storage reservoir.

At our operated Viking project in the UK, the UK government has approved £65.5 million of development funding⁷ to support further technical and commercial work, marking an important step in progressing the project towards a final investment decision in this Parliament, subject to project readiness and affordability.

Simplifying and strengthening the portfolio

We continue to actively manage our portfolio to ensure capital and other resources are allocated to our most competitive projects.

In May, we completed the sale of the high-cost, sub-scale Natuna Sea Block A field along with the stalled Tuna development project in Indonesia for $215 million, improving the overall quality of our portfolio. This follows our exit from Vietnam in 2025.

In February, we completed the $3.2 billion LLOG acquisition in the US ahead of schedule, marking our strategic entry into the deepwater GoA. LLOG adds a fully operated, oil-weighted portfolio with high-margin production, long reserve life and significant growth potential, along with a well-established organisation and proven team.

Post period end, Harbour completed the Waldorf acquisition in the UK, supporting the resilience of our UK business. The acquisition adds 14 kboepd of oil-weighted production - an increase of c.10 per cent to our UK volumes - and 2P reserves of c.25 mmboe as at year-end 2025. The transaction provides material financial synergies and an increased stake in our operated Catcher field, delivering operational synergies and reducing the risk in relation to future decommissioning obligations through the removal of a financially-challenged partner.

Collectively, these transactions demonstrate Harbour's disciplined approach to capital allocation, recycling proceeds into cash flow accretive growth opportunities while further enhancing portfolio quality, free cash flow and long-term value creation.

Ensure financial resilience through the commodity price cycle

During the period, we realised pre-hedge oil and European gas prices of $90/bbl and $15.0/mscf, respectively (H1 2025: $69/bbl and $14.0/mscf). This compares to average crude oil prices of $92/bbl and European gas prices of $14.7/mscf during the period. On a post-hedge basis, we realised $84/bbl and $14.4/mscf (H1 2025: $71/bbl and $13.4/mscf).

During the first half, Harbour secured additional commodity hedges, mainly zero-cost collars for European gas over the second half of 2026 and full year 2027. A full schedule of Harbour's hedges as at 30 June can be found in the Financial Review.

In the first half of the year, we generated significant free cash flow of $1.8 billion (H1 2025: $1.4 billion). In addition to higher commodity prices and excellent operational execution, first half free cash flow reflects the second half weighting of our tax payments, planned maintenance activities and  capital programme.

Strong free cash flow generation and EBITDAX resulted in significant deleveraging following completion of the $3.2 billion LLOG acquisition in February. As a result, net debt at the end of the period was $5.4 billion with leverage of 0.7x (YE 2025: $4.4 billion, 0.6x)⁸. Post period end, we completed the Waldorf acquisition for $163 million, immediately unlocking more than $400 million of cash and further strengthening the balance sheet.

Also post period end, we successfully refinanced our $3.0 billion revolving credit facility, extending its maturity to 2031 and securing improved commercial terms. We continue to benefit from investment grade credit ratings from all three agencies: Moody's Baa2 (negative outlook), S&P BBB- (stable outlook) and Fitch BBB- (stable outlook) respectively.

During the period, BASF reduced its holding in Harbour from c.47 per cent to less than 25 per cent, in line with their stated intention and resulting in new longer-term, supportive shareholders entering the register. Along with other changes in our shareholder register during the period, this has resulted in a material increase in our free float.

Accelerating additional shareholder returns

In March we announced our new distribution policy to return 45-75 per cent of free cash flow to shareholders including through a minimum annual dividend of 16.10 cents per voting ordinary share (c.$300 million⁹).

In line with our policy, the Board has approved an interim dividend for 2026 of 8.05 cents per voting ordinary share (c.$150 million¹⁰), to be paid on 24 September. In addition, following the strong first half and increased confidence in full-year free cash flow delivery, the Board has also approved a $250 million share buyback programme. The buyback accelerates additional shareholder returns for 2026 beyond the minimum annual dividend and will commence immediately with completion expected around year end.

The Company also retains shareholder authority to participate in any future sell-down by BASF through off-market share repurchases.

Outlook

July production averaged 510 kboepd. Combined with higher first-half production, good progress on planned maintenance activities and accelerated project delivery in Norway, this supports a further improvement in our full-year 2026 production guidance to 490-500 kboepd (480-500 kboepd previously). Unit operating cost and total capital expenditure guidance is reiterated at c.$14.5/boe and $2.2-2.4 billion, respectively.

We have increased our 2026 free cash flow outlook from c.$1.4 billion to c.$1.8 billion, driven by significant first half free cash flow generation, our improved production guidance and higher commodity prices. This assumes second-half prices of $80/bbl Dated Brent and $16/mscf European gas (equivalent to c.$85/bbl and c.$15/mscf for the full year compared with $80/bbl and $13/mscf previously) and is partially offset by FX headwinds and negative working capital movements.

Based on our upgraded free cash flow outlook of $1.8 billion and in line with our distributions policy, we expect total shareholder distributions for 2026 to be at least $800 million. This includes at least $500 million of additional returns above the minimum annual dividend starting with the $250 million share buyback announced today.

¹ Updated to reflect 2025 full year reconciliation of data from previously reported H1 2025 GHG emissions intensity of 12 kgCO₂eboe

² Free cash flow (FCF) after capex, tax and before M&A/divestment proceeds and transaction costs, hybrid bond interest, debt repayment and shareholder distributions

³ Net debt excludes unamortised fees; Leverage is calculated as net debt (excluding unamortised fees)/Last twelve months EBITDAX

⁴ Includes $23 million to be paid on non-voting shares

⁵ Equivalent to c.$85/bbl Dated Brent and c.$15/mscf European gas for full year 2026 and assumes $1.35/£, $1.15/€ and NOK9.5/$ (compared to previous $1.4 billion free cash flow outlook which assumed $80/bbl and $13/mscf European gas prices for full year 2026 and $1.35/£, $1.15/€ and NOK10/$)

⁶ Updated to reflect 2025 full year reconciliation of data from previously reported H1 2025 GHG emissions intensity of 12 kgCO₂eboe

⁷

⁸ Net debt excludes unamortised fees; Leverage is calculated as net debt (excluding unamortised fees)/Last twelve months EBITDAX

⁹  Includes $46 million to be paid on non-voting shares

¹⁰  Includes $23 million to be paid on non-voting shares

 

 

Financial Review

Summary of financial results

Analysis of these key metrics are discussed in detail across the following pages of the Financial Review.

		2026	2025
Six months ended 30 June	Units	Unaudited	Unaudited
Production and post-hedging realised prices
Production	kboepd	509	488
Crude oil	$/boe	84	71
European gas	$/mscf	14.4	13.4
Other gas	$/mscf	3.6	3.5
Income statement
Revenue and other income	$ million	6,408	5,271
EBITDAX1	$ million	4,363	3,876
Adjusted EBITDAX1	$ million	4,465	3,888
Profit before taxation	$ million	2,353	1,635
Profit/(loss) after taxation	$ million	436	(174)
Adjusted profit after taxation1	$ million	562	410
Effective tax rate	Per cent	81	111
Adjusted effective tax rate1	Per cent	77	80
Operating costs per barrel1	$/boe	13.3	12.4
Basic earnings/(loss) per voting ordinary share	cents/share	21	(12)
Adjusted basic earnings per voting ordinary share1	cents/share	28	22
Other financial key figures
Total capital expenditure1	$ million	1,046	1,166
Operating cash flow	$ million	2,773	2,446
Free cash flow1	$ million	1,765	1,363
Shareholder returns paid1	$ million	160	228
		30 June 2026	31 December 2025
		Unaudited	Audited
Net debt1	$ million	5,170	4,305
Leverage ratio1	times	0.7	0.6

           

¹ Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

 

 

 

Income statement

	2026	2025
	Unaudited	Unaudited
Six months ended 30 June	$ million	$ million
Revenue and other income	6,408	5,271
Cost of operations	(3,251)	(2,721)
EBITDAX1	4,363	3,876
Adjusted EBITDAX1	4,465	3,888
Operating profit	2,760	2,021
Profit before tax	2,353	1,635
Taxation	(1,917)	(1,809)
Profit/(loss) after tax	436	(174)
Adjusted profit after tax1	562	410

 

	2026	2025
	Unaudited	Unaudited
Six months ended 30 June	Cents/share	Cents/share
Basic earnings/(loss) per voting ordinary share	21	(12)
Adjusted basic earnings per voting ordinary share1	28	22

¹   Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Revenue and other income

	2026	2025
	Unaudited	Unaudited
Six months ended 30 June	$ million	$ million
Revenue and other operating income	6,408	5,271
Crude oil	2,743	1,796
Gas	3,340	3,084
Condensate	283	267
Tariff income and other revenue	26	34
Other operating income	16	90

Revenue earned from production activities increased to $6,408 million (H1 2025: $5,271 million) after realised hedging losses of $270 million (H1 2025: losses of $28 million). This increase was mainly driven by higher production volumes as a result of the LLOG acquisition and higher crude and European gas prices.

Crude oil sales increased to $2,743 million (H1 2025: $1,796 million) after realised hedging losses of $208 million (H1 2025: gains of  $35 million). This was driven by higher production volumes and higher realised post-hedging crude oil prices of $84/bbl (H1 2025: $71/bbl). Pre-hedging realised crude oil price for the period was $90/bbl (H1 2025: $69/bbl).

Gas revenue was $3,340 million (H1 2025: $3,084 million), split between European gas revenue of $2,961 million (H1 2025: $2,737 million), after realised hedging losses of $62 million (H1 2025: losses of $63 million), and other gas revenue of  $379 million (H1 2025: $347 million). The realised post-hedging price for European and other gas was $14.4/mscf (H1 2025: $13.4/mscf) and $3.6/mscf (H1 2025: $3.5/mscf), respectively. The pre-hedging realised price for European and other gas was $15/mscf (H1 2025: $14/mscf) and $3.6/mscf (H1 2025: $3.5/mscf), respectively.

Condensate revenue was $283 million (H1 2025: $267 million) and tariff income was $26 million (H1 2025: $34 million). Other income amounted to $16 million (H1 2025: $90 million).

Cost of operations

Cost of operations increased to $3,251 million (H1 2025: $2,721 million) driven primarily by the increased production levels and hence higher operating costs, movements in over/underlift and increased royalties.

	2026	2025
	Unaudited	Unaudited
Six months ended 30 June	$ million	$ million
Cost of operations
Field operating costs	1,268	1,142
Depreciation, depletion and amortisation	1,523	1,519
Other	460	60
Operating costs	3,251	2,721
Total operating costs for operating costs per barrel1	1,221	1,091
Operating costs per barrel ($ per barrel)1	13.3	12.4

¹   A reconciliation from operating costs is provided within the Glossary.

Total operating costs were higher period on period at $1,221 million (H1 2025: $1,091 million). Operating costs were higher on a unit of production basis at $13.3/boe (H1 2025: $12.4/boe) with higher volumes offset by the effects of a weaker US Dollar during the period which increases non-US Dollar denominated costs as well as the higher, near-term unit operating costs of the LLOG portfolio.

Depreciation, depletion and amortisation (DD&A) unit expense was $16.4/boe (H1 2025: $17.0/boe).

EBITDAX and Adjusted EBITDAX

EBITDAX was $4,363 million (H1 2025: $3,876 million), with the increase driven by higher production and higher crude oil and European gas prices. Adjusted EBITDAX, adjusting for the loss on disposal of  Indonesian assets and M&A fees, was $4,465 million (H1 2025: $3,888 million).

Impairments and exploration write offs

The Group has recognised a pre-tax impairment charge of $27 million (H1 2025: $186 million). This impairment relates primarily to a change in decommissioning estimate on a UK non-producing field. The increase in the decommissioning provision causes a corresponding increase in the asset carrying value, which given it is a non-producing asset is then written down to nil via an impairment charge to the income statement.

In the prior period, the pre-tax impairment charge of $186 million primarily arose on assets in our UK business unit as a result of prevailing lower commodity prices.

During the period, the Group expensed $47 million (H1 2025: $97 million) for exploration and appraisal and CCS activities. In the prior period, nearly half of this related to the Havstjerne licence commitment CCS appraisal well in Norway.

Net financing items

Finance income amounted to $102 million (H1 2025: $432 million). The decrease compared to H1 2025 is mainly due to the absence of derivative gains (H1 2025: $336 million), with both realised and unrealised derivative movements being losses included within finance costs, partly offset by foreign exchange gains of $60 million (H1 2025: $nil)relating to realised gains on USD-denominated intercompany balances in entities with non-USD functional currencies.

Finance expenses amounted to $509 million (H1 2025: $818 million). This decrease was primarily driven by the absence of foreign exchange losses in the current period, compared with losses of $504 million in the prior period. Those prior period losses mainly arose from the revaluation of UK and Norwegian cash tax liabilities ($230 million) and from the revaluation of USD-denominated intercompany balances in entities with non-USD functional currencies ($193 million) following the depreciation of the US Dollar in the period.

Partially offsetting were unfavourable movements in relation to the Group's derivatives contracts, with realised losses on interest and foreign currency derivatives of $11 million (H1 2025: $213 million gain), unrealised losses on derivatives of $79 million (H1 2025: $83 million gain), and derivative ineffectiveness of $17 million (H1 2025: $40 million gain). In addition, interest payable on loans was $39 million (H1 2025: $3 million) as a result of the LLOG acquisition funding via the term and bridge loans. Further, the contingent consideration liability estimate relating to the Wintershall Dea acquisition increased by $56 million.

Earnings and taxation

Tax expense increased in H1 2026 to $1,917 million (H1 2025: $1,809 million). The reported effective tax rate is 81 per cent (H1 2025: 111 per cent) which is significantly lower than half-year 2025 but slightly higher than the headline rate of 78 per cent.  The prior year rate included a one-off deferred tax charge arising from the extension of the UK Energy Profits Levy. The 2026 rate is slightly higher than the 78 per cent statutory tax rate applicable to oil and gas production in the UK and Norway, largely due to losses in jurisdictions with lower statutory tax rates. The Adjusted effective tax rate is 77 per cent (H1 2025: 80 per cent). The tax expense is split between a current tax expense of $2,367 million (H1 2025: $2,003 million) and a deferred tax credit of $450 million driven primarily by the movement in accelerated capital allowances in Norway and the UK (H1 2025: credit of $194 million).

Reported profit after tax amounted to $436 million (H1 2025: $174 million loss). This resulted in reported earnings per voting ordinary share of 21 cents per share (H1 2025: loss 12 cents per share). Adjusted profit after taxation amounted to $562 million (H1 2025: $410 million) of which $48 million (H1 2025: $33 million) was attributed to the subordinated notes holders and $514 million (H1 2025: $377 million) was attributable to shareholders. This resulted in adjusted basic earnings per voting ordinary share of 28 cents per share (H1 2025: 22 cents per share).

Shareholder distributions

A final dividend with respect to 2025 of 8.05 cents per voting ordinary share was proposed on 5 March 2026 and approved by shareholders at the AGM on 7 May 2026. The dividend was paid on 20 May 2026 to all shareholders on the register as at 10 April 2026, totalling $150 million.

In line with the company's annual dividend policy, the Board is pleased to announce an interim dividend of 8.05 cents per voting ordinary share, totalling $150 million, to be paid on 24 September 2026 to all shareholders on the register on 14 August 2026 (the "Record Date"). A dividend reinvestment plan ("DRIP") is available to shareholders who would prefer to invest their dividend in the shares of the company. To participate in the DRIP, shareholders must submit their election notice to Equiniti, the company's Registrar, by 3 September 2026 (the "Election Date"). Registered shareholders will be able to make an election to Harbour's share registrar, Equiniti, if they wish to receive their dividend payments in US Dollars. For shares held in CREST, an election for US Dollars will be permitted using the CREST dividend election process. CREST participants should ensure a US Dollar CREST Memorandum Account has been enabled. Further details are available on our dividends page of our website.

The Board has also approved and is pleased to announce a share buyback programme of the Company's voting ordinary shares for up to a maximum aggregate consideration of $250 million. Pursuant to the authority granted by shareholders at the AGM held on 7 May 2026, the maximum number of ordinary shares which may be purchased by the Company is 236,805,964. The purpose of the programme is to reduce the Company's share capital and all ordinary shares purchased as part of this programme will be cancelled. The programme will commence on 6 August 2026, and will end no later than 5 March 2027.

Statement of Financial Position

	30 June 2026	31 Dec 2025
	Unaudited	Audited
	$ million	$ million
Assets
Goodwill	5,038	5,062
Non-current assets, excluding goodwill and deferred taxes	22,670	19,797
Deferred tax assets	138	121
Current assets	4,339	3,723
Assets held for sale	-	390
Total assets	32,185	29,093
Liabilities and equity
Borrowings, net of transaction fees	6,813	5,151
Provisions	7,792	7,413
Deferred tax liabilities	5,409	6,491
Lease liabilities	855	634
Other financial liabilities	650	40
Other liabilities	4,021	2,944
Liabilities directly associated with assets held for sale	-	214
Total liabilities	25,540	22,887
Equity	6,645	6,206
Total liabilities and equity	32,185	29,093
Net debt	5,170	4,305

 

Assets

The increase in total assets of $3,092 million from $29,093 million to $32,185 million is mainly as a result of the LLOG acquisition, primarily property, plant and equipment of $3,076 million. Cash balances have also increased from $846 million to $1,643 million resulting from positive free cash flow in the period.

Liabilities

The increase in total liabilities of $2,653 million from $22,887 million to $25,540 million is driven by increases in a number of factors including:

▪     borrowings of $1,662 million primarily due to the term loan and bridge facility of $1.0 billion and  $1.0 billion, respectively, entered into for the acquisition of LLOG, offset by the $238 million bond repayment;

▪     provisions, including decommissioning provisions, of $379 million mostly due to provisions assumed as part of the LLOG acquisition;

▪     other financial liabilities of $610 million due to a decrease in the fair value of derivatives, primarily commodity derivatives;

▪     other liabilities, including current tax liability of $875 million due to higher realised commodity prices and production; offset by

▪     a decrease in deferred tax liabilities of $1,082 million, mainly due to the movement in accelerated capital allowances in Norway and the UK.

 

Equity and reserves

Total equity increased to $6,645 million mainly due to the reported profit for the period of $436 million and $535 million of new shares issued as part of the consideration for LLOG. This was offset by pre-tax losses on cash flow hedges of $952 million before deducting the associated tax credit of $616 million and the dividend payment to shareholders of $150 million.

Acquisitions and disposals

On 11 February 2026, the Group completed the transaction to acquire LLOG Exploration Company LLC (LLOG), marking the Group's strategic entry into the US Gulf of America. The acquisition establishes a new core business unit. After customary adjustments the total consideration amounted to $3,127 million consisting of cash of $2,592 million and equity of $535 million of which $100 million was paid as a deposit in 2025. A purchase price allocation (PPA) exercise has been performed under which the identifiable assets and liabilities of LLOG were recognised at a provisional fair value of $3,127 million, resulting in $nil goodwill.

On 26 May 2026 Harbour completed the disposal of its interests in its operated interests in Natuna Sea Block A and Tuna project in Indonesia, resulting in a $70 million loss on disposal being recognised as a result of working capital movements and write-off of associated goodwill in the period.

Net debt

As at 30 June 2026, net debt was $5,170 million (Dec 2025: $4,305 million). This consisted of borrowings amounting to $7,011 million (Dec 2025: $5,366 million) less unamortised fees of $198 million (Dec 2025: $215 million) and cash balances of $1,643 million (Dec 2025: $846 million). The increase in net debt was driven by the group entering into two new facilities as part of the LLOG acquisition, a term loan and bridge facility of  $1.0 billion and $1.0 billion, respectively, offset by the free cash flow generated in the period and a $238 million bond repayment.

We continue to benefit from investment grade credit ratings from all three agencies: Moody's (Baa2, outlook negative), S&P (BBB-, outlook stable) and Fitch (BBB-, outlook stable). Available liquidity, comprising the undrawn portion of the RCF facility of $2.5 billion (net of letters of credit drawn of $0.5 billion), plus cash balances of $1.6 billion, was $4.1 billion at the end of the period, compared with $3.1 billion at year end 2025.

As at 30 June 2026, the leverage ratio was 0.7x (Dec 2025: 0.6x) which has slightly increased due to the net debt increase during the period.

	30 June 2026	31 Dec 2025
	$ million	$ million
Leverage ratio1
Net debt	5,170	4,305
Last twelve months EBITDAX	7,605	7,118
Leverage ratio1	0.7x	0.6x

¹ Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Derivative financial instruments

We carry out hedging activity to manage commodity price risk, and to ensure there is sufficient funding for future investments. As part of that, we have entered into a series of fixed-price sales agreements and a financial hedging programme for both oil and gas, consisting of swap and option instruments. Hedges realised year to date are in respect of both crude oil and European natural gas.

The current hedging programme is shown below:

Hedge position	H2 2026	2027	2028	2029
Oil
Total oil volume hedged (thousand bbls)	22,781	16,882	5,673	-
- of which swaps	15,996	3,103	1,647	-
- of which collars	6,785	13,779	4,026	-
Weighted average fixed price ($/bbl)	71.73	66.63	65.00	-
Weighted average collar floor and cap ($/bbl)	64.27 - 92.78	59.67 - 82.58	57.95 - 75.83	-
Natural gas
Gas volume hedged (thousand boe)	31,216	11,098	4,627	388
- of which swaps/fixed price forward sales	21,563	741	2,513	388
- of which zero cost collars	9,653	10,357	2,114	-
Weighted average fixed price ($/mscf)	11.60	10.41	8.74	8.53
Weighted average collar floor and cap ($/mscf)	11.51 - 20.31	8.87 - 15.81	8.14 - 15.00	-

At 30 June 2026, our financial hedging programme on commodity derivative instruments showed a pre-tax negative mark-to-market fair value of $438 million (Dec 2025: positive $492 million). The commodity derivatives were designated as cash flow hedges, therefore, changes in fair value were reported in other comprehensive income which is accumulated in equity.

For foreign exchange derivative instruments, the pre-tax positive mark-to-market fair value was $21 million (Dec 2025: positive $103 million). Of this total $70 million related to cross-currency interest rate swaps designated as cash flow hedges relating to the Euro bonds where €2.4 billion was hedged at a forward rate of between 1.1017 and 1.1209.

Statement of cash flows¹

	2026	2025
	Unaudited	Unaudited
Six months ended 30 June	$ million	$ million
Cash flow from operating activities after tax payments2	2,863	2,449
Cash flow from investing activities - capital investment	(930)	(960)
Cash flow from investing activities - other3	49	76
Operating cash flow after the above investing activities	1,982	1,565
Cash flow from financing activities4	(217)	(202)
Free cash flow5	1,765	1,363
Cash and cash equivalents	1,643	2,711

¹ Table excludes financing activities related to debt principal movements.

² Excludes fees associated with M&A activity totalling $90 million (H1 2025: $3 million) comprising M&A costs expensed of $31 million (H1 2025: $3 million) and seismic change of control expenditure of $59 million (H1 2025: $nil).

³ Excludes acquisition of subsidiaries of $2,498 million (H1 2025: net receipt of $16 million) and disposal of subsidiaries $102 million (H1 2025: $nil).

⁴   Interest and lease payments only, excludes shareholder distributions and debt principal movements.

⁵   Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

 

Net cash from operating activities after tax, excluding M&A fees, amounted to $2,863 million (H1 2025: $2,449 million) after accounting for negative working capital movements of $35 million (H1 2025: $197 million positive). The Group made net tax payments of $1,468 million in the period (H1 2025: $1,350 million) primarily in relation to Norway ($1,273 million) and the UK ($174 million). Net cash from operating activities after tax excludes costs associated with M&A activity of $90 million (H1 2025: $3 million).

Capital investment on a cash basis was $930 million (H1 2025: $960 million) which included property, plant and equipment spend of $718 million (H1 2025: $724 million), and exploration and evaluation spend of $136 million (H1 2025: $185 million).

Cash outflow from financing activities, excluding shareholder distribution and debt principal movements, totalled $217 million (H1 2025: $202 million) split between interest payments of $122 million (H1 2025: $47 million), and lease principal and interest payments of $95 million (H1 2025: $155 million).

Financing activities in the period included the drawdown of a $1.0 billion term loan and $1.0 billion bridge facility used to fund the LLOG acquisition offset by repayments on existing bonds of $238 million. Further, the RCF was undrawn at 30 June 2026.

Shareholder distributions totalled $160 million (H1 2025: $228 million) and consist of dividends paid of $150 million (H1 2025: $228 million) and the repurchase of Harbour's own shares of $10 million from the buyback programme announced in August 2025. Payment to subordinated notes holders amounted to $29 million (H1 2025: $38 million).

Cash and cash equivalent balances were $1,643 million (31 Dec 2025: $846 million) at the end of the period.

Capital investment is shown in the table below and is defined as additions to property, plant and equipment, fixtures and fittings and intangible exploration and evaluation assets, excluding changes to decommissioning assets.

	2026	2025
	Unaudited	Unaudited
Six months ended 30 June	$ million	$ million
Additions to oil and gas assets	(733)	(774)
Additions to fixtures and fittings, office equipment and IT software	(20)	(26)
Additions to exploration and evaluation assets	(108)	(120)
Additions to other intangible assets	(46)	(23)
Total capital investment1	(907)	(943)
Movements in working capital	(49)	(64)
Capitalised interest	21	18
Capitalised lease depreciation	5	29
Cash capital investment per the cash flow statement	(930)	(960)

¹ Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

During the period, the Group incurred total capital expenditure¹ of $1,046 million (H1 2025: $1,166 million), split by capital investment $907 million (H1 2025: $943 million) and decommissioning spend $139 million (H1 2025: $180 million) and energy transition expenditure $nil (H1 2025: $43 million).

The capital investment was concentrated around our existing production hubs, predominantly in Norway, the UK, US Gulf of America and Argentina.

Post balance sheet events

On 10 July 2026 Harbour Energy announced that it had completed the acquisition of substantially all the subsidiaries of Waldorf Energy Partners Ltd and Waldorf Production Ltd (Waldorf) which follows receipt of all regulatory approvals. Consideration was nominal with a payment made on completion of $163 million in respect of full and final settlement of all creditors' claims against the acquired Waldorf subsidiaries. The transaction immediately unlocks more than $400 million of cash with Harbour replacing Waldorf's cash collateral for decommissioning obligations with letters of credit and surety bonds, which accounts for the majority of this cash release.

In July 2026, subsequent to the reporting date, the Group completed the refinancing of its revolving credit facility. The new facility comprises $3.0 billion of committed liquidity, has a five-year maturity with two one-year extension options and is supported by a syndicate of 18 relationship banks. The facility provides funding for general corporate purposes, working capital requirements and letters of credit.

 

The refinancing extends the Group's debt maturity profile, further strengthens its liquidity position and demonstrates continued support from the Group's core banking group. The new facility was secured on improved commercial terms, including a margin of 80 basis points in addition to credit adjustment spread and other funding-related charges. As the refinancing was completed after the reporting date, it had no impact on the Group's balance sheet as at 30 June 2026.

See note 22 for further details.

Going concern

The results have been presented on a going concern basis. Detail of the Group's assessment of going concern for the period can be found within note 2 to the condensed consolidated financial statements.

Business risks

Harbour faces various risks that could result in events or circumstances that might negatively impact the company's business model, its future performance, liquidity, and reputation. Not all these risks are wholly within the company's control and the company may also be affected by risks which have not yet materialised or are not reasonably foreseeable.

The effective management of risk is critical if we are to continue to successfully execute the strategy and to protect our personnel, assets, the communities with whom we interact, and our reputation.

For known risks facing the business, the company seeks to reduce the likelihood and mitigate the impact of the risk to within the level of appetite or tolerance set by the Board. According to the nature of the risk, the company can choose to take or tolerate risk, treat risk with mitigating actions, transfer risk to third parties, or terminate risk by ceasing particular activities or operations. In particular, the company has a zero tolerance stance to fraud, bribery, corruption, and the facilitation of tax evasion. We also aim to manage health, safety, environmental and security risks to a level as low as reasonably practicable.

Principal risks at half-year 2026 and key changes since the 2025 Annual Report

The directors have reviewed the principal risks facing the company and concluded for the remaining six months of the financial year there are no significant changes to the headline principal risks from those disclosed in the 2025 Annual Report and Accounts. In conducting their review, the directors noted a modest shift in Harbour's risk profile over the period, driven by geopolitical developments and related supply chain pressures and increasing security risks.  On the other hand, stronger commodity prices and related financial interventions have reduced finance‑related risks.

To reach this conclusion, the directors considered the changes in the external environment during the recent period that could threaten the company's business model, future performance, liquidity, and reputation. The directors also considered management's view of the current risks facing the company.

A full description of Harbour's principal risks can be found on pages 72 to 77 of the 2025 Annual Report and Accounts.

 

 

 

 

 

 

 

 

 

 

The principal risks remain:

▪     Execution of the strategy: failure to effectively implement the strategy

▪     Health, safety, environment and security: risk of a major health, safety, environmental or physical security incident

▪     Organisation and talent: failure to create and maintain a cohesive organisation with sufficient capability and capacity

▪     Political and fiscal risks: exposure to adverse or uncertain political, regulatory or fiscal developments

▪     Operational performance: failure to deliver expected operational performance

▪     Capital programme and delivery: failure to deliver the capital programme as planned

▪     Third party reliance: failure to adequately manage joint venture partners, third-party infrastructure owners, supply chain contractors and other partners

▪     Financial discipline: failure to work within our financial framework

▪     Commodity prices: exposure to the impact of commodity price fluctuations on the business

▪     Cyber and information security: failure to maintain safe, secure and reliable information systems

▪     Legal and regulatory compliance: failure to maintain and demonstrate effective legal and regulatory compliance

▪     Climate Change and Energy transition: failure to adapt the strategy in the context of external expectations

 

Insurance

We have significant and appropriate insurance in place to minimise risk to our operational and investment programmes. Insurance programmes in place include contingent business interruption insurance for loss of revenue following loss or damage to third-party facilities for our UK operations.

Responsibility statement

The directors confirm that, to the best of their knowledge:

▪     the condensed set of financial statements has been prepared in accordance with UK-adopted IAS 34 'Interim Financial Reporting',

▪     the half-yearly results statement includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year), and

▪     the half-yearly results statement includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

 

By order of the Board,

Alexander Krane

Director

5 August 2026

Disclaimer 

This statement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Harbour believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Harbour's control or within Harbour's control where, for example, Harbour decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements. 

 

 

Financial statements

Condensed consolidated income statement

For the six months ended 30 June 2026

		2026	2025
		Unaudited	Unaudited
	Note	$ million	$ million
Revenue	4	6,392	5,181
Other operating income	4	16	90
Revenue and other operating income		6,408	5,271
Cost of operations	5	(3,251)	(2,721)
Impairment of non-current assets	5	(27)	(186)
Exploration and evaluation expenses and new ventures	5	(40)	(63)
Exploration costs written-off	10	(7)	(34)
Loss on disposal	14	(71)	-
General and administrative expenses	5	(252)	(246)
Operating profit		2,760	2,021
Finance income	6	102	432
Finance expenses	6	(509)	(818)
Profit before taxation		2,353	1,635
Income tax expense	7	(1,917)	(1,809)
Profit/(loss) for the period after taxation		436	(174)
Profit/(loss) for the year attributable to:
Equity owners of the company		388	(207)
Subordinated notes investors		48	33
		436	(174)

 

Earnings/(loss) per share	Note	$ cents	$ cents
Basic
Voting ordinary shares	8	21	(12)
Non-voting ordinary shares	8	24	(14)
Diluted
Voting ordinary shares	8	20	(12)
Non-voting ordinary shares	8	23	(14)

 

Condensed consolidated statement of comprehensive income

For the six months ended 30 June 2026

		2026	2025
		Unaudited	Unaudited
	Note	$ million	$ million
Profit/(loss) for the period after taxation		436	(174)
Other comprehensive income
Items that will not be subsequently reclassified to income statement:
Actuarial gains		12	6
Tax expense on actuarial gains	7	(2)	(3)
Net other comprehensive income that will not be subsequently reclassified to income statement		10	3
Items that may be subsequently reclassified to income statement:
Fair value (losses)/gains on cash flow hedges		(952)	1,103
Tax credit/(charge) on cash flow hedges	7	616	(725)
Exchange differences on translation		(10)	(191)
Net other comprehensive (loss)/income may be subsequently reclassified to income statement		(346)	187
Other comprehensive (loss)/income for the period, net of tax		(336)	190
Total comprehensive income for the period, net of tax		100	16
Total comprehensive income attributable to:
Equity owners of the company		52	(17)
Subordinated notes investors		48	33
		100	16

 

Condensed consolidated balance sheet		30 June 2026	31 Dec 2025
		Unaudited	Audited
	Note	$ million	$ million
Assets
Non-current assets
Goodwill	9	5,038	5,062
Other intangible assets	10	5,877	5,749
Property, plant and equipment	11	15,776	13,210
Right-of-use assets	12	683	496
Equity accounted investments		47	7
Deferred tax assets	7	138	121
Other receivables		143	126
Other financial assets	17	144	209
Total non-current assets		27,846	24,980
Current assets
Inventories		646	398
Trade and other receivables		1,966	1,994
Other financial assets	17	84	485
Cash and cash equivalents		1,643	846
		4,339	3,723
Assets held for sale	14	-	390
Total current assets		4,339	4,113
Total assets		32,185	29,093
Equity and liabilities
Equity
Share capital		171	171
Merger reserve		4,263	3,728
Other reserves	18	(115)	229
Retained earnings		282	53
Equity attributable to equity holders of the company		4,601	4,181
Equity attributable to subordinated notes investors		2,044	2,025
Total equity		6,645	6,206
Non-current liabilities
Borrowings	16	5,818	4,915
Provisions	15	7,339	6,967
Deferred tax	7	5,409	6,491
Trade and other payables		70	68
Lease liabilities	12	569	466
Other financial liabilities	17	128	19
Total non-current liabilities		19,333	18,926
Current liabilities
Trade and other payables		1,624	1,424
Borrowings	16	995	236
Lease liabilities	12	286	168
Provisions	15	453	446
Current tax liabilities		2,327	1,452
Other financial liabilities	17	522	21
		6,207	3,747
Liabilities directly associated with the assets held for sale	14	-	214
Total current liabilities		6,207	3,961
Total liabilities		25,540	22,887
Total equity and liabilities		32,185	29,093

The notes 1 to 22 form an integral part of these condensed consolidated half-year financial statements

Consolidated statement of changes in equity

For the six months ended 30 June 2026

	Share capital	Merger reserve	Other reserves (note 18)	Retained earnings	Equity attributable to owners of the company	Equity attributable to subordinated notes investors	Total equity
	$ million	$ million	$ million	$ million	$ million	$ million	$ million
At January 1, 2025 (Audited)	171	3,728	(18)	807	4,688	1,563	6,251
Profit/(loss) for the period	-	-	-	(207)	(207)	33	(174)
Other comprehensive (loss)/income	-	-	187	3	190	-	190
Total comprehensive income	-	-	187	(204)	(17)	33	16
Share-based payments	-	-	-	24	24	-	24
Issuance of subordinated notes	-	-	-	-	-	970	970
Repayment of subordinated notes	-	-	-	-	-	(558)	(558)
Dividends paid (note 21)	-	-	-	(228)	(228)	-	(228)
Distributions to subordinated notes investors	-	-	-	-	-	(38)	(38)
At 30 June 2025 (Unaudited)	171	3,728	169	399	4,467	1,970	6,437
At 1 January 2026 (Audited)	171	3,728	229	53	4,181	2,025	6,206
Profit/(loss) for the period	-	-	-	388	388	48	436
Other comprehensive (loss)/income	-	-	(346)	10	(336)	-	(336)
Total comprehensive income	-	-	(346)	398	52	48	100
Issue of new shares1	-	535	2	-	537	-	537
Share-based payments	-	-	-	35	35	-	35
Purchase of ESOP trust shares	-	-	-	(44)	(44)	-	(44)
Purchase and cancellation of own shares	-	-	-	(10)	(10)	-	(10)
Dividends paid (note 21)	-	-	-	(150)	(150)	-	(150)
Distributions to subordinated notes investors	-	-	-	-	-	(29)	(29)
At 30 June 2026 (Unaudited)	171	4,263	(115)	282	4,601	2,044	6,645

¹   The issue of new voting ordinary shares as part of the consideration for the LLOG acquisition resulted in $535 million being recognised within the merger reserve, see note 13 for further information.

Condensed consolidated statement of cash flows

For the six months ended 30 June 2026

		2026	2025
		Unaudited	Unaudited
	Note	$ million	$ million
Net cash inflow from operating activities	19	2,773	2,446
Investing activities
Expenditure on exploration and evaluation assets		(136)	(185)
Expenditure on property, plant and equipment		(718)	(724)
Expenditure on non-oil and gas intangible assets		(30)	(28)
Expenditure on other intangible assets		(46)	(23)
Disposal of subsidiaries, net of cash disposed	14	102	-
Acquisition of subsidiaries, net of cash acquired	13	(2,498)	16
Finance income received		44	71
Other receipts		5	5
Net cash outflow from investing activities		(3,277)	(868)
Financing activities
Repurchase of shares		(10)	-
Proceeds from bond issuance, net of transaction costs	19	-	894
Proceeds from revolving credit facility	19	350	220
Proceeds from subordinated notes, net of transaction costs		-	970
Proceeds from bridge facility, net of transaction costs	19	992	-
Proceeds from term loan, net of transaction costs	19	990	-
Payments of principal portion of lease liabilities		(80)	(133)
Interest paid on lease liabilities		(15)	(22)
Repayment of bonds	19	(238)	(262)
Repayment of subordinated notes		-	(558)
Repayment of revolving credit facility	19	(350)	(470)
Purchase of ESOP trust shares		(44)	-
Interest paid and bank charges		(122)	(47)
Distributions paid to subordinated notes investors		(29)	(38)
Dividends paid to shareholders	21	(150)	(228)
Net cash inflow from financing activities		1,294	326
Net increase in cash and cash equivalents		790	1,904
Net foreign exchange difference		7	(2)
Reclassification of cash as asset held for sale		-	4
Cash and cash equivalents at 1 January		846	805
Cash and cash equivalents at 30 June		1,643	2,711

 

 

Notes to the half-year condensed consolidated financial statements

1     Corporate Information

Harbour Energy plc is a limited liability company incorporated in Scotland and listed on the London Stock Exchange. The address of the registered office is 4th Floor, Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EN, United Kingdom.

The condensed consolidated financial statements of Harbour Energy plc (Harbour) for the six months ended 30 June 2026 comprise the parent company, Harbour Energy plc (the company), and all its subsidiaries (the Group), and were approved and authorised for issuance by the board of directors on 5 August 2026.

The Group's principal activities are the acquisition, exploration, development and production of oil and gas reserves in Norway, the UK, Gulf of America, Germany, Mexico, Argentina, North Africa and Southeast Asia.

The condensed consolidated financial information contained in this report is unaudited. The income statement, statement of comprehensive income, statement of changes in equity and the cash flow statement for the six months to 30 June 2026, and the balance sheet as at 30 June 2026 and related notes, have been reviewed by the auditors.

2     Basis of preparation and changes to the Group's accounting policies

2.1     Basis of preparation

The half-year condensed consolidated financial statements (the financial statements) for the six months ended 30 June 2026 have been prepared in accordance with UK-adopted IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. These half-year condensed consolidated financial statements are to be read in conjunction with Harbour's Annual Report and Accounts for the year ended 31 December 2025, which are prepared in accordance with UK-adopted international accounting standards and contains additional accounting policy disclosures and information as required in a set of annual financial statements.

The financial statements do not include all the information required for a full annual report and do not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2025 has been extracted from the consolidated financial statements of Harbour Energy plc for the year ended 31 December 2025 which were approved by the directors on 4 March 2026 and were delivered to the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

The financial statements have been prepared on the historical cost basis, except for certain financial assets and liabilities, including derivative financial instruments, which have been measured at fair value.

The presentation currency of the Group financial information is US dollars and all values in the Group financial information are presented in millions ($ million) and all values are rounded to the nearest 1 million, except where otherwise stated.

2.2     Going concern

The Directors considered the going concern assessment period to be up to 31 December 2027. The Group monitors and manages its capital position and its liquidity risk regularly to ensure that it has access to sufficient funds to meet forecast cash requirements. Cash forecasts for management are regularly produced and sensitivities considered based on, but not limited to, the Group's latest board approved life of field production and expenditure forecasts, management's best estimate of future commodity prices benchmarked against recent forward curves and reflecting the Group's available borrowing facilities.

The Group's ongoing capital requirements are financed by its $3.0 billion RCF, $5.0 billion bonds (before unamortised fees) and subordinated notes of $2.1 billion, $1.0 billion senior term loan, $1.0 billion bridge loan, and surety bonds of $0.7 billion which provide cover for decommissioning securities. The term and bridge loans were entered into in February 2026 to finance the completion of the LLOG acquisition.

The RCF facility, term and bridge loans are subject to the same financial covenants that require the ratio of consolidated total net debt, including Letters of Credit, to last twelve months (LTM) EBITDAX to be less than 3.5x and LTM EBITDA divided by interest expense to exceed 3.5x. Under the Group's base case, the RCF is forecast to have an undrawn balance of $3.0 billion through 2026-2027. When combined with drawn Letters of Credit and unrestricted cash the headroom is forecasted to be $2.7 billion at the end of 2027 which provides a robust liquidity position.

The Group's latest approved business plan underpins the base case going concern assessment and is based upon management's best estimate of forward commodity price curves, production in line with approved asset plans and the ongoing capital requirements of the Group that will be financed by free cash flow, the existing RCF and debt financing arrangements described above.

As part of the going concern assessment, a base case, sensitivity and reverse stress tests have been run on the enlarged group forecasts, which show that the probability of a liquidity deficit or covenant breach is remote.

The base case indicates that the Group is able to operate as a going concern with sufficient headroom and remain in compliance with its loan covenants throughout the assessment period.

In line with the principal risks that have been identified which have the greatest impact on the financial capability of the Group to operate as going concern, a single downside sensitivity scenario has been prepared reflecting a reduction in:

▪     oil and gas prices of 10 per cent, and

▪     the Group's production of 5 per cent throughout the entire assessment period.

Management considers this represents a severe but plausible downside scenario appropriate for assessing going concern.

In this downside scenario when applied to the base case forecast, the Group is forecast to have sufficient liquidity headroom throughout the assessment period and to remain in compliance with its financial covenants.

Reverse stress tests have been prepared reflecting reductions in each of commodity price and production parameters, prior to any mitigation strategies, to determine at what levels each would need to reach such that either the lending covenants are breached or liquidity headroom runs out. The results of these reverse stress tests demonstrated the likelihood that a sustained significant fall in commodity prices or a significant fall in production over the assessment period that would be required to cause a risk of funds shortfall or a covenant breach is remote.

Taking the above analysis into account, the Board was satisfied that, for the assessment period, the Group can maintain adequate liquidity and comply with its lending covenants up to 31 December 2027 and therefore has adopted the going concern basis for preparing the interim condensed consolidated financial statements.

2.3     Accounting policies, new standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those adopted and disclosed in Harbour's 2025 Annual Report and Accounts, except for the amendments to the standards effective as of 1 January 2026 in the UK. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

The following amendments apply for the first time in 2026 and are effective for the period beginning 1 January 2026 but do not have material impact on the interim condensed consolidated financial statements of the Group:

▪     Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and 7);

▪     Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and 7); and

▪     Annual Improvements to IFRS Accounting Standards-Volume 11.

2.4     Use of judgements and estimates

In preparing these financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies, and the key sources of estimation uncertainty, were the same as those described on pages 138-139 of Harbour's 2025 Annual Report and Accounts except that the Wintershall Dea purchase price allocation is no longer a current-period source of estimation uncertainty as the acquisition accounting has been finalised. For the current half-year period, the relevant acquisition-related estimation uncertainty relates to the provisional purchase price allocation for the acquisition of LLOG Exploration Company LLC, for further details see note 13.

3     Segment information

The chief operating decision maker, who is responsible for allocating resources and assessing performance of the Group's business segments, has been identified as the Chief Executive Officer.

The Group's activities consisted of one class of business being the acquisition, exploration, development and production of oil and gas reserves and related activities, are split geographically and managed in ten business units: namely Norway, UK, Gulf of America, Germany, Mexico, Argentina, North Africa, Southeast Asia, CCS and Corporate. The CCS segment includes Denmark. An additional operating segment, being the Gulf of America, has been created following the acquisition of LLOG Exploration Company LLC.