UK’s Harbour Plans New Share Buyback as Cash Flow Climbs

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUK's Harbour Plans New Share Buyback as Cash Flow ClimbsHarbour Energy Plc, one of the largest independent oil and gas producers in the UK North Sea, announced a new share buyback after surging commodity prices drove a cash windfall.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.ht6gu5j0fu3u6dmzpeuazibn_media_dl_1.png Bloomberg(Bloomberg) — Harbour Energy Plc, one of the largest independent oil and gas producers in the UK North Sea, announced a new share buyback after surging commodity prices drove a cash windfall.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountHarbour will repurchase $250 million of stock, part of plans to return at least $800 million to shareholders for the year, it said in a statement on Thursday. Shares of the company rose as much as 7.9% in London. The war in the Middle East has brought unprecedented supply disruption to the global oil market, driving up profits for producers around the world. Harbour Energy, which has expanded internationally in recent years, has benefited from that upheaval without having direct asset exposure in the Persian Gulf itself.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe company reported gains in first-half revenue and profit, raising its full-year free cash flow forecast to about $1.8 billion, from a previous estimate of $1.4 billion. Harbour had set a target of returning 45% to 75% of free cash flow to investors this year, with $800 million representing the lower end of that range. “I think we’re getting the balance right,” Linda Cook, chief executive officer of Harbour, told reporters about company’s capital allocation. “We’ll see where we end up with our full year of cash flow and then decide how and when to make the decision on what the payout will actually be.”The company has been focused on reducing its debt following the acquisition of Gulf of Mexico producer LLOG Exploration Co. in February. Net debt declined to $5.4 billion at the end of June, for a leverage ratio of 0.7, compared with $6.3 billion as of March 31, according to the report. READ: Big Oil Is Braced for Lower Prices — and Rightly So: Javier BlasEven as stronger energy prices lifted quarterly profits for oil producers, only a handful — including Harbour, Eni SpA, Equinor ASA, Repsol SA and some refiners — chose to increase buybacks. Many major producers funneled their cash windfall into paying down debt instead.Output from Britain’s North Sea now accounts for less than a third of Harbour’s portfolio after it added assets in Europe, North Africa, South America and the US to offset the impact of declining production and high taxes at home.Many larger firms have retreated from the aging UK basin. BP Plc — the last remaining global oil major to have its own standalone North Sea business — announced plans last week to sell.“The existing fiscal environment in the UK means investments here, it’s nearly impossible for them to compete with opportunities elsewhere,” Cook said. A more favorable fiscal framework than the current windfall tax on producers would “drive the jobs and help secure value for the UK from its domestic energy resources,” she said. Cook declined to comment on whether Harbour would be interested in buying BP’s North Sea assets. —With assistance from Mitchell Ferman.(Updates with CEO comments, details from the report through the story)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.