Harbour Energy, the U.K. oil-and-gas company, has reported a drop in pretax profits for the first half of the year due to weaker energy prices. The company’s pretax profit fell to $429.1 million from $1.49 billion in the same period last year, missing analysts’ forecasts of $651.7 million. Revenue also declined, reaching $1.99 billion compared to $2.66 billion the previous year.
Factors contributing to the revenue decline include lower post-hedging realized prices and a reduction in liquid production volumes. Despite these challenges, Chief Executive Linda Cook emphasized the company’s commitment to maximizing the value of its U.K. oil and gas portfolio.
The average daily production for Harbour Energy decreased to 196,000 oil-equivalent barrels from 211,000 barrels in the previous year. In response to these changes, the company adjusted its production guidance for the year to 185,000-195,000 oil-equivalent barrels per day.
Furthermore, Harbour Energy revised its capital expenditure view to $1.0 billion from $1.1 billion, while retaining its cost guidance of $16 per BOE unchanged. The company announced an interim dividend of $100 million, consistent with the previous year.