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Harbour Energy PLC on Thursday said it produced more oil in 2022, and it noted it will pay a higher windfall tax in the UK than previously estimated, following the UK government’s announcement in November of an increase to the levy.
Harbour Energy is a North Sea-focused oil and gas formed from merger of Premier Oil and Chrysaor Holdings.
The company said it produced 208,000 barrels of oil equivalent per day in 2022, up 19% from 175,000 in 2021 and towards the top-end of its guidance of 200,000 to 210,000 barrels.
Estimated operating costs decreased by 9.9% to $13.7 per barrel of oil equivalent from $15.2 in 2021 as the pound weakened against the dollar. Brent oil was quoted at $84.11 a barrel on Thursday morning in London.
For 2022, Harbour expects to report revenue of $5.4 billion, up 49% from $3.62 billion in 2021, with realised post-hedging oil and UK gas prices of $78 per barrel, up 32% from $59 in 2021 and compared to an average Brent price of $101 per barrel, which was up from $71 in 2021.
The company estimates earnings before interest, tax, depreciation, amortisation and exploration expenses grew by 71% to $4.1 billion from $2.4 billion. The company noted that the revaluation deferred tax charge in the UK will be ‘materially higher’ than $600 million charge it estimated at the time of its 2022 interim results.
On Wednesday, Harbour warned of job cuts due to the UK windfall tax, telling the PA news agency it reassessed its future activity levels in the country.
Harbour Energy recently said to trade publication Energy Voice in December that it will not bid for new licences in the North Sea in the ongoing licensing round due to the windfall tax.
In November, UK Chancellor Jeremy Hunt added another 10% on the tax that oil and gas producers have to pay on their windfall profits, taking it to 75%. The companies can offset most of this extra tax if they invest enough in the UK.
The company will release its 2022 results on March 9.
Harbour Energy shares were 3.8% lower at 310.70 pence each in London on Thursday morning.
By Tom Budszus, Alliance News reporter
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