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Investing.com -- Harbour Energy shares rose more than 12% Thursday after the company launched a $100 million share buyback and raised its full-year free cash flow guidance, moves that came despite a wider-than-expected first-half loss due to impairment charges.
The London-listed oil and gas producer reported a net loss of $174 million for the six months ended June 30, missing consensus expectations and Jefferies’ estimate of a $36 million loss.
The company cited a $186 million impairment as the main driver of the result. Production averaged 488,000 barrels of oil equivalent per day (kboe/d) during the period, in line with forecasts.
Revenue reached $5.27 billion, slightly ahead of estimates. EBITDAX rose 5% year-over-year to $3.88 billion, while free cash flow totaled $1.36 billion, beating Jefferies’ estimate of $1.06 billion.
Net debt declined to $3.85 billion, down from $4.2 billion in the prior quarter, excluding about $2.2 billion in hybrid bonds.
Harbour narrowed its full-year production guidance to a range of 460,000 to 475,000 kboe/d, raising the midpoint to 467,500 kboe/d from the prior 465,000.
Operating cost guidance was lowered to $13.5 per barrel of oil equivalent from $14/boe. Full-year free cash flow is now projected at $1 billion, up from a previous estimate of $900 million, based on second-half price assumptions of $65 per barrel and $12 per thousand cubic feet of gas.
The $100 million share buyback supplements an unchanged dividend policy. Harbour maintained its annual dividend of $455 million and declared an interim dividend of $227.5 million, payable Sept. 24.
If the buyback is completed by year-end, total 2025 shareholder distributions would reach $555 million. In Norway, new wells began production from the Maria Phase 2 project.
The Gjøa Nord and Ofelia subsea satellite projects continue toward a planned 2026 investment decision, and Dvalin North is expected to start production in late 2026. The company is progressing development work at Adriana/Sabina, Storjo and Cuvette.
Harbour also advanced its 6 million tonnes per annum LNG project in Argentina. Initial production from the first vessel, Golar Hilli Episeyo, is expected around the end of 2027, with a second vessel, Golar MK II, anticipated in late 2028.
In Mexico, gross 2C resources at the Kan project rose 50% to around 150 million barrels of oil equivalent, with Harbour holding a 70% working interest. It exited its Vietnam operations on July 9.
The company reaffirmed its 2025–2027 outlook, which includes average production of 450,000 kboe/d, capex below $2 billion annually from 2026, and leverage below 1x.