Pro says Harbour Energy ‘faces uncertain environment’ after a hit to H1 profit

Harbour Energy PLC (LON: HBR) says lower energy prices weighed on its profit in the first six months of this year. Its shares ended nearly 4.0% down on Thursday.

Expert reacts to Harbour Energy’s H1 update

The oil and gas company reported $42.9.1 million of profit before tax for H1 – much weaker than $1.49 billion last year and $651.7 million expected.

Harbour Energy also saw its revenue tank 25% on a year-over-year basis to $1.99 billion in the first half. According to Andrew Keen of Edison Group:

Harbour Energy faces a very uncertain market environment, buffeted by a windfall tax that is set to remain in place until 2028.

Production also declined significantly from 211,000 oil-equivalent barrels a day to 196,000 barrels a day, as per the press release.

Harbour Energy also lowered its guidance

Shares of Harbour Energy PLC ended in the red today also because the London-based trimmed its full-year production outlook to 195,000 barrels a day at the top end of the range. It had previously guided for up to 200,000.

Its expectations for $16 of cost per oil-equivalent barrel remained unchanged, as per the press release. Edison’s Keen attributes the weakness in the first half also to:

Political back-and-forth over the granting of new North Sea drilling licenses and a general ambiguity over the government’s climate policies.

On the plus side, Harbour Energy declared $100 million of interim dividend this morning – in line with the year ago. The U.K. stock is now down roughly 30% versus its year-to-date high.