Harbour Energy (HBR) AI Stock Analysis

• Market Cap: £3.83B
• Dividend Yield: 7.65%
• Average Volume (3M): 4.18M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.95
• Revenue Growth: 123.03%
• EPS Growth: N/A
• Country: UK
• Employees: 3,019
• Sector: Energy
• Sector Strength: 69
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.16
• Shares Outstanding: 1,436,416,500
• 10 Day Avg. Volume: 4,146,574
• 30 Day Avg. Volume: 4,177,836
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £274.20
• Price Target Upside: 20.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: 247.00p ▲(8.33% Upside)

Harbour Energy's strong operational performance and cash flow generation are significant strengths, supported by positive technical indicators. However, profitability challenges and a negative P/E ratio weigh on the valuation. The earnings call provided a positive outlook, but highlighted some operational risks.

Positive Factors

Production Increase

The acquisition of Wintershall DEA is expected to significantly increase production to potentially 450-475k boepd.

Shareholder Returns

Harbour continues to look cheap alongside an attractive shareholder returns policy, including both dividends and share buybacks.

Negative Factors

Market Skepticism

The share price movement on the results announcement indicates that the market does not believe the free cash flow generation potential.

Profitability Concerns

The business is not as profitable or as free cash flow generative as previously thought, and forecasts have been reduced due to higher capex and opex estimates.

Valuation Concerns

The risked NPV10 valuation for Harbour has been cut by approximately 28%, leading to a lower target price.

Harbour Energy Business Overview & Revenue Model

Company Description

Harbour Energy (HBR) is a leading independent oil and gas company based in the UK, focused on the exploration, production, and development of oil and gas resources in the North Sea and beyond. Established through the merger of various entities, the company operates primarily in the upstream sector of the energy industry, engaging in activities that include the extraction of hydrocarbons and the management of oil and gas assets. Harbour Energy is committed to sustainable practices and aims to leverage technology to enhance operational efficiency and reduce environmental impact.

How the Company Makes Money

Harbour Energy generates revenue primarily through the sale of crude oil and natural gas. The company operates a portfolio of producing assets and development projects, which provide a steady stream of production revenue. Revenue is significantly influenced by global oil and gas prices, which can fluctuate based on market conditions. Additionally, Harbour Energy may engage in joint ventures and partnerships that allow for shared investment and risk in exploration and development projects, thereby enhancing its financial stability and potential returns. The company also focuses on optimizing production from its existing fields to maximize profitability, alongside exploring new opportunities for growth within the energy sector.

Harbour Energy Financial Statement Overview

Summary

Harbour Energy shows strong revenue growth and operational efficiency, but faces challenges in net profitability due to a recent loss. The balance sheet reflects typical industry leverage, with improvements in equity. Cash flows are healthy, supporting operational and investment activities.

Income Statement

Harbour Energy has shown a strong revenue trajectory with significant growth from $3.7 billion to $6.2 billion in the latest year. Gross profit margin increased, indicating improved efficiency. However, the company's net profit margin is negative due to a net loss, highlighting profitability challenges. Despite these issues, the company maintains robust EBIT and EBITDA margins, reflecting strong operational performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating leverage concerns, but this is typical in capital-intensive industries like oil and gas. The company's equity ratio has improved, suggesting a stronger financial position. Return on equity is affected by the net loss, but previous years show better performance.

Cash Flow

Operating cash flow remains strong, demonstrating the company's ability to generate cash from operations. Free cash flow is positive, although its growth rate has slowed. The free cash flow to net income ratio is less informative due to the net loss, but operating cash flow supports stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	3.71B	5.43B	3.48B	2.41B
Gross Profit	2.54B	1.34B	2.54B	1.16B	566.40M
EBITDA	3.31B	2.32B	4.21B	1.91B	546.10M
Net Income	-93.00M	45.00M	8.00M	101.10M	-778.40M
Balance Sheet
Total Assets	30.32B	9.90B	12.57B	14.50B	9.48B
Cash, Cash Equivalents and Short-Term Investments	830.00M	280.00M	524.00M	702.00M	445.40M
Total Debt	6.02B	1.28B	2.06B	3.54B	2.32B
Total Liabilities	24.07B	8.36B	11.54B	14.03B	8.42B
Stockholders Equity	6.25B	1.55B	1.02B	473.50M	1.07B
Cash Flow
Free Cash Flow	293.00M	1.34B	2.52B	1.00B	775.30M
Operating Cash Flow	1.61B	2.14B	3.13B	1.61B	1.37B
Investing Cash Flow	-2.28B	-693.00M	-628.60M	-571.00M	-603.20M
Financing Cash Flow	1.23B	-1.67B	-2.67B	-787.20M	-899.40M

Harbour Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 228.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HBR, the sentiment is Positive. The current price of 228 is above the 20-day moving average (MA) of 218.41, above the 50-day MA of 202.75, and above the 200-day MA of 199.70, indicating a bullish trend. The MACD of 8.79 indicates Positive momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HBR.

Harbour Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENOG	79 Outperform	£1.76B	11.74	17.50%	5.68%	-9.80%	-1.98%
SEPL	78 Outperform	£1.51B	13.90	7.92%	3.78%	118.04%	65.66%
HBR	71 Outperform	£3.83B	21.62	-11.32%	7.65%	123.03%	―
SQZ	66 Neutral	£707.45M	8.79	-4.31%	10.56%	-32.89%	-239.58%
Sector *	65 Neutral	$15.51B	7.30	2.96%	5.23%	4.26%	-62.58%
ITH	61 Neutral	£3.84B	15.84	-7.04%	11.17%	31.96%	-159.27%
DEC	58 Neutral	£932.47M	―	-22.53%	6.90%	56.20%	-185.69%

Harbour Energy Corporate Events

Harbour Energy Executes Share Buyback to Optimize Shareholder Value

Harbour Energy PLC has executed a share buyback program, purchasing 264,047 ordinary shares for cancellation, as part of an initiative announced earlier in August 2025. This move reduces the total number of shares in circulation to 1,438,536,087, potentially impacting shareholder interest notifications under regulatory guidelines.

Harbour Energy Executes Share Buyback, Cancels 250,079 Shares

Harbour Energy PLC has announced the purchase and cancellation of 250,079 ordinary shares as part of its ongoing share buyback program initiated on 7 August 2025. This transaction reduces the total number of shares in circulation to 1,438,800,134, potentially impacting shareholder interests and market positioning by consolidating ownership and possibly enhancing share value.

Harbour Energy Executes Share Buyback to Enhance Shareholder Value

Harbour Energy PLC has executed a share buyback program, purchasing 254,925 of its ordinary shares for cancellation. This move reduces the total number of shares in circulation to 1,439,050,213, potentially impacting shareholder interests and aligning with regulatory requirements under the Financial Conduct Authority’s rules.

Harbour Energy Advances Share Buyback Programme with Recent Purchase

Harbour Energy PLC has announced the purchase and cancellation of 267,480 of its ordinary shares as part of its ongoing share buyback programme. This move reduces the total number of shares in issue to 1,439,566,496, potentially impacting shareholder interests and market dynamics as the company continues to execute its strategy to enhance shareholder value.

Harbour Energy Launches $100 Million Share Buyback Program

Harbour Energy announced a $100 million share buyback program to reduce its share capital, with all repurchased shares to be canceled. The program, executed by Merrill Lynch International, will run from August 8, 2025, to March 31, 2026, and is expected to impact the company’s financial structure and shareholder value positively.

Harbour Energy Announces Strong H1 2025 Results and $100 Million Share Buyback

Harbour Energy reported strong operational results for the first half of 2025, driven by the successful integration of the Wintershall Dea acquisition, which enhanced the company’s scale and resilience. The company announced a $100 million share buyback program, reflecting improved free cash flow and a strengthened financial position. Harbour Energy achieved a significant increase in production, reduced operating costs, and improved greenhouse gas intensity. The company also made strategic decisions, including divesting its Vietnam business and reducing its UK workforce, to align with market conditions and fiscal environments. These actions are expected to support further debt reduction and shareholder returns, positioning Harbour Energy for continued growth and stability.

Harbour Energy Announces Leadership Change with Resignation of Senior Director

Harbour Energy announced the resignation of Simon Henry, the Senior Independent Director and Non-Executive Director, effective immediately as he pursues other opportunities. Alan Ferguson will serve as the interim Senior Independent Director. Simon’s tenure coincided with significant growth for Harbour, notably the acquisition of Wintershall Dea assets in 2024. The company expressed gratitude for Simon’s contributions and confidence in Alan’s interim leadership.

Harbour Energy Discloses $1.7 Billion in Government Payments for 2024

Harbour Energy PLC has released its report on payments made to governments for the year ended December 31, 2024, in compliance with regulatory requirements. The company reported a total of $1,685 million in payments, with significant contributions from income taxes and royalties across multiple countries. This disclosure highlights Harbour Energy’s financial interactions with governments, reflecting its global operational footprint and compliance with international transparency standards.

Harbour Energy Corrects Transaction Notification for CFO Share Acquisition

Harbour Energy announced a correction to a previous notification regarding a transaction by a Person Discharging Managerial Responsibility (PDMR). The Chief Financial Officer, Alexander Krane, acquired 9,644.03 Ordinary Shares through a Dividend Reinvestment Plan, with the transaction taking place on the London Stock Exchange. This transaction reflects the company’s adherence to UK Market Abuse Regulations and highlights the ongoing engagement of its management in the company’s financial activities.

Harbour Energy CFO Acquires Shares Through DRIP

Harbour Energy announced that Alexander Krane, the Chief Financial Officer, acquired 9,644.03 ordinary shares through a Dividend Reinvestment Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting investor confidence and market perception.