Harbour Energy sets $200 million annual dividend policy

·1 min read

LONDON (Reuters) -Harbour Energy has introduced a $200 million annual dividend policy, equating to 16 pence per share, it said on Thursday on the company's first post-merger capital markets day.

Struggling to deal with heavy debt after its profits were slashed by a drop in oil prices during COVID-19 lockdowns, Premier struck a deal with Chrysaor in October 2020 to create the British North Sea's largest oil and gas producer.

Harbour expects to produce 195,000-210,000 barrels of oil equivalent per day (boe/d) next year, up from 175,000 boe/d in 2021, mainly boosted by first gas from the delayed Tolmount gas project in the North Sea, expected to flow in the first quarter 2022.

It sees production at around 200,000 boe/d through to 2024, it said, guiding for "materially higher free cash flow at current commodity prices".

Harbour made $302 million in free cashflow in the first half of 2021 and is set to benefit from tax losses Premier had accrued, reducing Harbour's tax bill.

It said in September it had around $1 billion in liquidity.

Harbour said it would use carbon offsets equal to around 20% of its current emissions to reach its net zero 2035 goal.

(Reporting by Shadia Nasralla; editing by David Goodman and Jason Neely)

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