Harbour Energy (LON: HBR) has sanctioned two new oil and gas projects in the North Sea as its profits swell.
The London-listed independent has reported a huge 12-fold increase in pre-tax profits for the first half of 2022 to $1.49 billion, compared to $120m in H1 2021.
Meanwhile the firm, the largest producer in the UK, has approved the Talbot development and the Leverett appraisal well.
Talbot is an 18-million-barrel field, planned as a three-well tie-back to the Harbour-operated Judy platform.
© Supplied by Harbour EnergyIt lies around 170 miles south-east of Peterhead, with first oil planned for the end of 2024.
Announcing its half-year results for 2022 today, Harbour also said it has agreed to invest in an appraisal well at Leverett; a potential tie-back to its Britannia production hub.
Working with partner NEO Energy, Harbour will appraise the Leverett structure in the first half of 2023.
The discovery has previously been said to hold 40 million barrels of gas-condensate resources.
Profits
The announcements arrive as Harbour Energy pre-tax profits rocketed from $120m in H1 2021 to $1.49billion while commodity prices surge.
Revenues surged by more than 70% to $2.6 billion during the six months to June 30 versus H1 2021.
It comes as the firm increases shareholder buybacks – increased today from $200m to $300m – and a $98m dividend declared back in May.
Like others in the North Sea, the company is seeing a huge boost from the surge in oil and gas prices, which is similarly impacting household costs.
Harbour said it expects a $300 million liability from the government’s windfall tax, announced in May, to be paid over December and January.
The Energy Profits Levy provides investment incentives, returning 91pence back for every £1 spent.
In April, the firm started up Tolmount, a gas field which increases UK domestic supply by 5%.
Chief executive Linda Cook said: “At a time when many are struggling with high energy prices, we are increasing investment by c.30 per cent compared to last year, focusing on doing what we can to deliver reliable, domestic oil and gas from our existing portfolio in a safe and responsible manner.”
Production
The firm had capital expenditure of $391m during the six months to June 30, predominantly in the UK.
Production meanwhile increased 40% to 211,000 barrels per day, at an average price of $82 per barrel of oil and 69p per therm of gas.
Net debt stands at $1.1bn.
Elsewhere, the company is seeking to reach a final investment decision on two carbon capture and storage (CCS) projects it is involved in, Acorn CCS at St Fergus and V Net Zero in Teesside, in 2024.
The firm spent $10m on early costs for these projects during the period, according to the accounts.
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