Harbour Energy has posted an after-tax loss of $200million for 2025 despite record production up 84% on the previous year - reflecting a "106% effective tax rate".
Posting its full year results to December 31 2025 this morning, Harbour Energy revealed increased revenue and other income of $10.3billion (2024: $6.2billion) and adjusted EBITDAX of $7.2billion (2024: $4.1billion).
Free cash flow also increased significantly to $1.1billion from just $0.1billion in 2024.
However, the update issued to shareholders also states: "Reported loss after tax of $0.2billion (2024: $0.1billion), reflecting a 106% effective tax rate and impacted by a $0.3billion deferred tax charge associated with changes to the UK fiscal regime and $0.7billion of pre-tax impairments and exploration write-offs in our North Africa, Mexico and CCS portfolios."
Despite the impact of the >100% tax rate, CEO Linda Z Cook remained positive about Harbour's performance in 2025 and was optimistic about its start to 2026.
She said: "2025 was a year of significant progress for Harbour. We delivered excellent operational performance while maintaining capital discipline and integrating new assets. This drove record production and higher free cash flow against a backdrop of lower commodity prices. In addition, we improved our cost structure, built momentum at our growth projects in Mexico and Argentina, and announced three significant transactions. Together these actions position Harbour's portfolio to deliver higher margin production over the coming years, leading to material growth in free cash flow.
"Today we also announced details of our new distributions policy that links shareholder returns directly to free cash flow. The policy strikes the right balance across the commodity price cycle between our commitment to a strong balance sheet, unlocking the potential of our portfolio and delivering attractive shareholder returns.
"2026 is off to a strong start. Production over the first two months of the year averaged 509 thousand barrels per day and we completed the LLOG transaction on 11 February, marking our entry into the US deepwater Gulf. Looking ahead, our focus remains on safety, operational excellence, advancing our growth projects, strengthening the balance sheet and completing the Waldorf and Indonesia transactions."
FSTE100
The UK's flagship share index, the FTSE 100, was up 44 points at 10,543 shortly after opening this morning.
Brent crude oil futures were up 1.29% at $83.55 a barrel.
Companies reporting today
- Admiral* - Full Year Results
- Aviva* - Full Year Results
- Coats Group - Full Year Results
- Elementis - Full Year Results
- Endevour Mining - Q4 Results
- Entain - Full Year Results
- Funding Circle Holdings - Full Year Results
- Grafron Group - Full Year Results
- Harbour Energy - Full Year Results
- Hunting - Full Year Results
- Ibstock* - Full Year Results
- ITV* - Full Year Results
- Lancashire Holdings - Full Year Results
- OSB Group - Full Year Results
- Pagegroup - Full Year Results
- Reckitt Benckiser* - Full Year Results
- Rentokil Initial - Full Year Results
- Serco Group - Full Year Results
- Taylor Wimpey* - Full Year Results