HBR 2026-03-05 investegate

Full year results for the year to 31 December 2025

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Harbour Energy plc reported record production of 474 kboepd for the year ended 31 December 2025, an 84% increase from 2024, alongside a 22% reduction in unit operating costs to $12.8/boe. The company generated $1.1 billion in free cash flow, a significant improvement from $0.1 billion in the prior year, and announced a new distributions policy linking shareholder returns to free cash flow, targeting a 45-75% payout. Strategic progress included appointing operator of the Zama oil field in Mexico and announcing the $3.2 billion acquisition of LLOG, which completed post-period, along with the $215 million Indonesia divestment and the $170 million Waldorf acquisition, expected to complete in Q2 2026. For 2026, Harbour anticipates production of 475-500 kboepd and free cash flow of approximately $0.6 billion.

Disclaimer*

Harbour Energy PLC

05 March 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Harbour Energy plc

("Harbour" or the "Company" or the "Group")

Full year results for the year to 31 December 2025

5 March 2026

Harbour Energy plc today announces its results for the year ended 31 December 2025.

Linda Z Cook, Chief Executive Officer, commented:

"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."

Excellent operational delivery

Record production of 474 kboepd (2024: 258 kboepd), up 84%

Unit operating costs reduced by 22% to $12.8/boe (2024: $16.5/boe)

Total recordable injury rate (TRIR) of 1.1 per million hours worked (2024: 1.0)

New wells and projects online in the UK, Norway, Argentina and Egypt

Exploration and appraisal successes in Egypt and Norway

2P reserves and 2C resources of 3.0 bnboe at year end (2024: 3.2 bnboe)

Material strategic progress

Appointed operator of the 750 mmboe gross recoverable Zama oil field (Mexico, Harbour 32%) and a new, more capital efficient, phased FPSO-based development plan agreed

Construction underway at Southern Energy (Argentina), a 6 mtpa LNG project (Harbour 15%) due to commence operations end 2027

Exited Vietnam; announced Indonesia divestments for $215 million with completion expected in Q2 2026

Announced $170 million acquisition of Waldorf (UK) with the potential to unlock significant financial synergies including UK tax losses with an expected value of $900 million. Completion expected end Q2 2026

Post period end, completed the $3.2 billion LLOG acquisition, securing a fully operated, oil weighted portfolio in the deepwater US Gulf with a long reserve life, a compelling growth outlook and significant running room

Financial highlights

[1]

Realised post-hedge oil and European gas prices of $69/bbl and $13/mscf (2024: $82/bbl and $11/mscf)

Increased revenue and other income of $10.3 billion (2024: $6.2 billion) and adjusted EBITDAX of $7.2 billion (2024: $4.1 billion)

Increased free cash flow of $1.1 billion (2024: $0.1 billion)

Increased adjusted profit after tax of $0.6 billion (2024: $0.4 billion), equating to adjusted earnings per voting ordinary share of 31 cents (2024: 33 cents)

Reported loss after tax of $0.2 billion (2024: $0.1 billion), reflecting a 106% effective tax rate and impacted by a $0.3 billion deferred tax charge associated with changes to the UK fiscal regime and $0.7 billion of pre-tax impairments and exploration write-offs in our North Africa, Mexico and CCS portfolios

Investment grade credit ratings of Baa2 (negative outlook), BBB- and BBB- (credit watch negative) by Moody's, Fitch and S&P, respectively

Shareholder distributions

Harbour has adopted an updated distributions policy which links shareholder returns directly to free cash flow and strengthens our capital allocation framework across the commodity price cycle. The new policy includes a base dividend and supports deleveraging alongside disciplined investment in attractive organic growth opportunities in the near term. This will underpin future production and free cash flow growth, driving enhanced shareholder returns over time.

Since 2022, Harbour has on average returned c.40% of annual free cash flow to shareholders

Under the new policy, Harbour will target returning 45-75% of free cash flow each year, including an initial base dividend of 16.10 cents/voting ordinary share ($300 million

[2]

)

While leverage is above 1.0x, Harbour expects to pay out towards the lower end of the range, prioritising debt reduction. As leverage falls below 1.0x, Harbour expects to pay out towards the top end of the range

In line with the new policy, Harbour has declared a 2025 final dividend of 8.05 cents/voting ordinary share ($150 million

[3]

). This brings total distributions for 2025 to $478 million, representing a c.45% free cash flow payout

2026 guidance and outlook

2026 guidance and outlook is updated to include the impact of the LLOG acquisition and assumes completion of the Indonesia and Waldorf (UK) transactions

end Q2 2026:

For 2026 Harbour now expects:

Production of 475-500 kboepd. Production to end February averaged 509 kboepd including one month's contribution from LLOG

Unit operating costs of c.$14.5/boe

Total capital expenditure of $2.2-2.4 billion, reflecting additional expenditure relating to the LLOG and Waldorf acquisitions

Free cash flow of c.$0.6 billion

[4]

, assuming $65/bbl Brent and $11/mscf European gas prices. A $5/bbl change in Brent or $1/mscf change in European gas prices for the full year impacts our 2026 free cash flow by c.$170 million or c.$150 million respectively

Beyond 2026:

Production is expected to be maintained in the range of 475-500 kboepd through to 2030, supported by total capex of $2.0-2.3 billion per annum with unit operating costs less than $15/boe

Annual free cash flow expected to increase to c.$1.0 billion in 2028

[5]

, driven by the LLOG and Waldorf acquisitions

Further free cash flow margin growth expected around the end of the decade, driven by continued growth from the LLOG portfolio and as Harbour's Mexico projects come onstream

With anticipated additions to reserves in Argentina, Mexico, Norway and the US Gulf, the 2P reserves replacement ratio for the period year end 2025 to 2028 is projected to be over 100 per cent

Net debt on completion of LLOG was $7.2 billion with leverage anticipated to be slightly above Harbour's target of <1.0x at year end 2026, reducing to 1.0x in 2028

Enquiries

Harbour Energy plc

+44 (0) 203 833 2421

Elizabeth Brooks, SVP Investor Relations

Andy Norman, SVP Communications

Email:

CorporateExternalCommunications@harbourenergy.com

Online presentation for analysts and investors

Management will host a live online presentation for analysts and investors at

9.00am (GMT). The link to register, and the presentation, will be available on

www.harbourenergy.com

. A replay will be available on Harbour's website shortly after the event.

Forward looking statements

This statement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Harbour believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Harbour's control or within Harbour's control where, for example, Harbour decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.

The information contained within this announcement is deemed by Harbour to constitute inside information for the purposes of the UK Market Abuse Regulation. By the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of Harbour is Howard Landes, General Counsel

Summary of 2025 performance

Excellent operational execution

In 2025, we delivered production of 474 kboepd (2024: 258 kboepd), at the top end of guidance and split approximately 40 per cent liquids, 40 per cent European natural gas and 20 per cent other natural gas. The 84 per cent increase versus 2024 reflects a full year's contribution from the Wintershall Dea assets, including 169 kboepd from Norway and 73 kboepd from Argentina, and excellent operational execution.

Production was supported by new wells onstream including in the UK, Norway, Argentina and Egypt, the completion of the Fenix project in Argentina and Maria Phase 2 in Norway, as well as continued high reliability across the portfolio. In addition, we saw outperformance from our operated hubs in the UK.

2026 production is expected to increase to between 475-500 kboepd, reflecting contributions from the LLOG and Waldorf portfolios partially offset by managed decline in the UK and the divestment of producing assets in Indonesia and Vietnam.

Strict cost and capital discipline

In 2025 we reduced our unit operating costs by 22 per cent to $12.8/boe (2024: $16.5/boe). This reflected the addition of the lower cost Wintershall Dea portfolio and the exit from Harbour's higher cost Vietnam business partially offset by a weaker US dollar sterling exchange rate. We also captured early savings as part of the Wintershall Dea integration process and further improved our UK cost base.

2025 capital expenditure including decommissioning spend totalled $2.4 billion (2024: $1.8 billion), with the increase reflecting the addition of the Wintershall Dea assets. The outturn at the lower end of original guidance of $2.4-2.6 billion was driven by high grading and cost efficiency measures across several of our business units including reduced activity in the UK, a pause in drilling in the APE Vaca Muerta gas licence (Argentina), and the reduction of some expenditures in Mexico and across our portfolio of CCS projects.

For 2026, Harbour expects operating costs of c.$14.5/boe and total capital expenditure of $2.2-2.4 billion, reflecting the addition of the LLOG and Waldorf assets.

Safe and responsible operations

2025 saw a slight increase in Harbour's total recordable injury rate to 1.1 per million hours worked (2024: 1.0) as we expanded our operations into new jurisdictions. While there was a reduction in the number of Tier 2 process safety events versus 2024, we recorded one Tier 1 event in Mexico during the year. All safety events continue to be rigorously investigated with learnings shared across the Company to drive improved performance.

In 2025 we delivered a step change in our GHG intensity which reduced to 13 kgCO

e/boe (2024: 18 kgCO

e/boe) on a net equity share basis. This was driven primarily by the addition of the lower GHG intensity Wintershall Dea assets alongside the divestment of our Vietnam business and continued decarbonisation efforts. We remain on track to halve our gross operated emissions by 2030 relative to our 2018 baseline.

Maximising the value of our producing assets

The majority of Harbour's capital programme is focused on infrastructure-led opportunities, profitably converting reserves into production and cash flow. These opportunities are typically low risk, high return investments concentrated around our existing production hubs.

In Norway, we completed our operated Maria Phase 2 project on schedule and within budget, marking the first of six Norway subsea developments due onstream during 2025-2027. Production start-up from our operated Dvalin North field is on track for mid-2026, with installation of the subsea infrastructure completed in 2025 and development drilling underway. Subsea installation campaigns were also completed at Alve North and Idun North, both being developed as multi-well tie-backs to Skarv, and at Irpa, a three-well tie-back to Aasta Hansteen. These projects, as well as infill drilling, are expected to maintain current production levels in Norway.

In the UK, investment in 2025 was targeted at

our two largest operated hubs, J-Area and the Greater Britannia Area (GBA). At J-Area, Jocelyn South came onstream just three months after discovery in March, production started up from the RK development well in July and successful well interventions were carried out late in the year. Together with strong subsurface performance from Talbot, these activities contributed to the J-Area achieving production rates not seen for over a decade. The GBA satellite fields Callanish and Brodgar also continued to outperform, with Brodgar production supported by plant optimisation and the successful H5 development well.

In Argentina, at our offshore CMA-1 concession, production was supported by the three-well Fenix project completed in January and a successful Aries platform well workover. Onshore in the Vaca Muerta unconventional shale play, ten 3,000 metre lateral gas wells were drilled with nine new wells completed and connected, supporting production from APE. Drilling resumed in November after a three month pause to align with lower domestic demand requirements.

Elsewhere, development activities across our three production hubs in Germany - Mittelplate, Gas Nord and Emlichheim - continued to provide stable production while in Egypt two Raven West infill wells at West Nile Delta were brought onstream.

We also delivered exploration success in Egypt including at West Nile Delta, with the Fayoum-5 and El King gas discoveries, and at Disouq with EZZ-1, which was bought onstream in January 2026, only two months after discovery.

Progressing our highest return, most competitive projects supporting reserves and future cash flow

In Norway, Harbour continued to progress its pipeline of potential developments and infill wells towards final investment decisions (FIDs). These include the Gjøa subsea satellite projects which are targeting a 2026 FID while development concept studies are underway at Adriana/Sabina, Storjo and Cuvette. Additionally, Harbour made a small discovery close to the Skarv infrastructure in 2025. Post period end, a discovery was made at Omega Sør (Harbour 24 per cent) near the Snorre field and Harbour was awarded nine exploration licences in the APA 2025 licensing round, four as operator and all close to existing infrastructure.

In Mexico, we saw good momentum at the 750 mmboe gross Zama oil field (Harbour 32 per cent) with Harbour being appointed operator and a more capital efficient, phased FPSO-based development plan being agreed. FEED is planned for 2026 ahead of FID. We also increased the gross resource estimate of our operated Kan field (70 per cent Harbour) by 50 per cent to 150 mmboe and are maturing development options ahead of FEED. As operator of Zama and Kan, we see the potential for material synergies across the two projects and for leveraging the offshore technical experience acquired through LLOG.

In Indonesia, Harbour retains its interests in the potential multi-TCF Andaman Sea gas discoveries, where we are evaluating potential development options, including an accelerated, phased development starting at Tangkulo.

In Argentina, Harbour and its partners took FID on Southern Energy SA (SESA, Harbour 15 per cent), a phased, two vessel 6 mtpa LNG project. This marks a significant milestone, providing access to global markets for our extensive Argentinian gas resource. 2025 saw all environmental licences, export permits and RIGI incentives secured for both vessels and all major contracts awarded with construction now underway. Production start-up from the first vessel is on track for end 2027, with the second vessel to commence operations end 2028.

Also in Argentina, at the San Roque concession (Harbour 25 per cent), Harbour and its partners are in the process of applying for an unconventional licence. This would allow development of the Vaca Muerta black oil shale to commence, starting with a potential 16 well programme later in 2026. With more than 700 mmboe of 2C resources, mainly in the Vaca Muerta shale play, and the potential to add materially to this, Argentina represents the largest single component of Harbour's 2C resources and a significant reserve replacement opportunity for the Company.

As at year end 2025, Harbour's proven and probable (2P) reserves on a working interest basis stood at 1.12 billion boe

(2024: 1.25 billion boe), with additions including at CMA-1 in Argentina and J-Area in the UK partially offsetting the impact of production. In addition,

Harbour had 1.84 billion boe of 2C resources (2024: 1.91 billion boe). Additions to our 2C resources resulted from the successful appraisal of Kan in Mexico and discoveries in Egypt offset by transfers to 2P reserves and further high grading of our UK and Mexico portfolios. Combined, our 2P and 2C volumes at year end 2025, represented 18 years reserves and resources life

[6]

Harbour's 2P reserves replacement averaged c.250 per cent per annum over the four-year period from year end 2021 to 2025. For 2026, we anticipate at least 150 per cent reserves replacement supported by the expected reserve additions from the LLOG and Waldorf acquisitions.

Building a competitive CCS business

Harbour has a leading CO

storage position in Europe with 880 million tonnes of net storage resource, offering the potential for a new source of long-term stable cash flow. In 2025, we continued to mature our most advantaged projects.

At our operated Viking project in the UK (Harbour 60 per cent), FEED was completed in March and the development consent order for the onshore pipeline was approved. We also welcomed the government's intention to provide development funding for Viking up to FID. Key milestones to FID include emitter selection and negotiation of the economic licence to be awarded by the government.

In Denmark, the high return Greensand Future project (Harbour 40 per cent) is on track to commence commercial operations by early 2027 with an injection rate of c.400 ktpa. Onshore Denmark, Harbour has a 40 per cent operated interest in the onshore Greenstore project which is progressing through the appraisal phase. Seismic acquisition commenced in December, marking a key step towards advancing the project towards development.

In May, in line with the Havstjerne licence commitment, we delivered a successful CO

storage appraisal well in the Norwegian North Sea safely and below budget, confirming the existence of a high quality store.

Active portfolio management

We continue to actively manage our portfolio, ensuring our capital and resources are allocated to our most competitive projects and in line with our strategy. In July we exited our Vietnam business and, in December, we announced the sale of the high cost, sub-scale Natuna Sea Block A field along with the Tuna development project in Indonesia for $215 million, improving the overall quality of our portfolio and accelerating value. We also agreed to exit several early-stage projects in Mexico, including Polok and Chinwol, and CCS licences during the year.

In December, we announced the acquisition of Waldorf in the UK for $170 million. Once completed, this acquisition will help to improve the competitiveness and resilience of our UK business amid ongoing fiscal and regulatory challenges by adding c.$900 million in value through UK tax losses. In addition, upon completion c.$350 million of trapped cash is unlocked, more than covering the purchase price. Completion, which is anticipated by mid-year, is subject to final settlement of all creditors' claims against Waldorf. The transaction is currently being implemented via court approved Restructuring Plans.

Also in December, we announced the acquisition of LLOG for $3.2 billion. Through LLOG,

Harbour gains a fully operated, oil weighted portfolio and an exceptional team in one of the world's most prolific oil and gas basins. LLOG adds high margin, long-life assets with a compelling growth profile, underpinned by a deep inventory of high return drilling opportunities

. The acquisition completed post period end in February 2026.

Collectively, these transactions demonstrate Harbour's disciplined approach to capital allocation, recycling proceeds into cash flow accretive growth opportunities while enhancing the overall quality of our portfolio.

Significant cash flow generation and strong financial position

Harbour generated free cash flow of $1.1 billion in 2025, a significant increase versus 2024 and c.$0.5 billion above the outlook provided at the start of the year after normalising for commodity prices. This was driven by strong operational execution, rigorous capital discipline and the greater scale and resilience of our portfolio.

Net debt (including funds held in escrow and before unamortised fees) reduced to $4.4 billion at year end 2025 (2024: $4.7 billion). This reflects a weaker USD, which increased the value of our euro-denominated debt by c.$0.6 billion, partly offset by $0.4 billion of net hybrid issuances. Post period end, on 11 February, we completed the LLOG acquisition, funded through a combination of $0.5 billion of equity and $2.7 billion of cash, including a $1 billion bridge facility and $1 billion three year term loan. As a result, net debt increased to $7.2 billion. Consistent with our approach on past acquisitions, we will prioritise debt reduction until our leverage returns to target levels.

At year-end 2025, we had a strong hedge position with a mark to market gain of $0.5 billion. For 2026, c.50 per cent of our economic exposure to European gas prices and c.40 per cent of our economic exposure to Brent is currently hedged at $11/mscf and $71/bbl respectively.

Competitive and meaningful shareholder distributions

Following the recent announced transactions, Harbour has updated its distributions policy to a payout ratio approach that links shareholder returns directly to free cash flow and leverage. This change strengthens our capital allocation framework and enhances our resilience to commodity price downturns. It also aligns our policy with our peers.

Since 2022, Harbour has on average returned c.40 per cent of free cash flow to shareholders each year. Under the new policy,

we will target returning 45-75 per cent of annual free cash flow, including an initial base dividend of 16.10 cents/voting ordinary share ($300 million

[7]

) providing a minimum payout to shareholders, with potential for additional returns. When

leverage is above Harbour's target of less than 1.0x, Harbour expects shareholder distributions to be towards the low end of the payout range, prioritising debt reduction and balance sheet strength. As leverage falls below 1.0x, Harbour expects to increase the payout towards the top end of the range which, together with growing free cash flow, is expected to support increasing shareholder returns over time.

In line with the new policy, Harbour has declared a final 2025 dividend of 8.05 cents/voting ordinary share. Combined with the 2025 interim dividend and $100 million share buyback announced in August 2025, distributions for 2025 total $478 million, representing a c.45 per cent free cash flow payout.

Our new policy enables us to distribute a base dividend, prioritise near-term deleveraging and invest in highly attractive, high margin growth opportunities. These investments support future production and increasing free cash flow, driving enhanced shareholder returns over the coming years.

2026 Outlook

We had a strong start to the year. Production over the first two months averaged 509 kboepd including a month's contribution from the LLOG portfolio. Production is expected to average 475-500 kboepd during 2026, a level which can be sustained through the end of the decade given our deep inventory of organic investment opportunities. Unit operating costs for 2026 are guided at c.$14.5/boe and total capital expenditure is now expected to be $2.2-2.4 billion, including growth investment in the LLOG assets.

At $65/bbl Brent and $11/mscf European gas prices, 2026 free cash flow is estimated at c.$0.6 billion

[8]

. Looking ahead we expect free cash to increase to c.$1 billion in 2028, as higher margin new volumes replace higher cost, higher tax UK barrels. We anticipate another significant step up in free cash flow around the end of the decade driven by continued growth from the LLOG portfolio and as our Mexico growth projects come onstream.

Our focus for 2026 is on safety and operational excellence, advancing our growth projects, strengthening the balance sheet and completing the Waldorf and Indonesia transactions as we continue to build a more resilient, cash generative business. We are excited about the opportunities ahead and realising the full potential of our company for our shareholders.

Financial Review

Summary of financial results

Units

2025

2024

Production and post-hedging realised prices

Production

kboepd

474

258

Crude oil

$/boe

European gas

$/mscf

Other gas

$/mscf

Income statement

Revenue and other income

$ million

10,261

6,226

EBITDAX

$ million

7,118

4,027

Adjusted EBITDAX

$ million

7,196

4,146

Profit before taxation

$ million

2,801

1,219

Loss after taxation

$ million

(182)

(93)

Adjusted profit after taxation

$ million

603

370

Effective tax rate

Per cent

106

108

Adjusted effective tax rate

Per cent

Operating costs per barrel

$/boe

12.8

16.5

Basic loss per ordinary voting share

cents/share

(15)

(10)

Adjusted basic earnings per voting ordinary share

cents/share

Other financial key figures

Total capital expenditure

$ million

2,370

1,828

Operating cash flow

$ million

3,386

1,615

Free cash flow

$ million

1,066

(118)

Shareholder returns paid

$ million

545

199

Net debt

$ million

4,305

4,424

Leverage ratio

times

0.6

1.1

1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Income statement

2025

2024

$ million

Revenue and other income

10,261

6,226

Cost of operations

(5,564)

(3,613)

EBITDAX

7,118

4,027

Adjusted EBITDAX

7,196

4,146

Operating profit

3,490

1,648

Profit before tax

2,801

1,219

Taxation

(2,983)

(1,312)

Loss after tax

(182)

(93)

Adjusted profit after tax

603

370

2025

2024

Cents/share

Basic loss per ordinary voting share

(15)

(10)

Adjusted basic earnings per voting ordinary share

1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Revenue and other income

Total revenue and other income increased to $10,261 million (2024: $6,226 million).

2025

2024

$ million

Revenue and other operating income

10,261

6,226

Crude oil

3,487

2,878

Gas

6,033

2,936

Condensate

511

283

Tariff income and other revenue

Other operating income

170

Revenue earned from hydrocarbon production activities increased to $10,031 million (2024: $6,097 million) after net realised hedging gains of $101 million (2024: $18 million, losses). This increase was mainly driven by higher production volumes and higher post-hedging European natural gas prices, partially offset by lower post-hedging crude oil prices.

Crude oil sales increased to $3,487 million (2024: $2,878 million) after realised hedging gains of $116 million (2024: $32 million). This was driven by higher production volumes partially offset by lower post-hedging crude oil prices of $69/bbl (2024: $82/bbl).

Gas revenue was $6,033 million (2024: $2,936 million), split between European gas revenue of $5,337 million (2024: $2,644 million) including realised hedging losses of $15 million (2024: $50 million) and other gas revenue of $696 million (2024: $292 million). The realised post-hedging price for our European and other gas was $13/mscf (2024: $11/mscf) and $4/mscf (2024: $4/mscf), respectively.

Condensate revenue was $511 million (2024: $283 million) and tariff income and other revenue $60 million (2024: $61 million). Other income amounted to $170 million (2024: $68 million) .

Cost of operations

Cost of operations increased to $5,564 million (2024: $3,613 million) driven primarily by the impact of a full year of the enlarged portfolio. Cost of operations includes operating costs of $2,317 million (2024: $1,612 million) and depreciation, depletion and amortisation expense of $2,907 million (2024: $1,704 million) as discussed below along with over/underlift movements and other items totalling $340 million (2024: $297 million).

2025

2024

$ million

Cost of operations

Field operating costs

2,317

1,612

Depreciation, depletion and amortisation

2,907

1,704

Other

340

297

Operating costs

5,564

3,613

Total operating costs for operating costs per barrel

2,217

1,555

Operating costs per barrel ($ per barrel)

12.8

16.5

1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Total operating costs increased to $2,217 million (2024: $1,555 million) driven by the impact of a full year of the acquired portfolio. However, on a unit of production basis, costs have materially reduced at $12.8/boe (2024: $16.5/boe), reflecting the lower cost base of the enlarged portfolio.

Depreciation, depletion and amortisation unit expense, which reflects the current period capitalised costs of producing assets divided by produced volumes, decreased to $16.8/boe (2024: $18.5/boe).

General and administrative expenses

General and administrative expenses amounted to $536 million (2024: $352 million). The increase was driven by the enlarged group, including expansion of our corporate centre, and one-off M&A, restructuring and reorganisation-related transaction costs of $78 million (2024: $119 million) associated with various initiatives and M&A activities across the group. 2024 solely related to costs associated with the Wintershall Dea acquisition.

Impairments and exploration costs

The Group has recognised a net pre-tax impairment charge on property, plant and equipment of $365 million (2024: $352 million). Of this, $41 million (2024: $174 million) was in respect of revisions to decommissioning estimates on mainly non-producing assets with no remaining book value. There was was also an impairment of $35 million (2024: $15 million) associated with the disposal of our Vietnam assets. The remainder largely relates to impairments in the Mexico and North Africa driven by reserves reductions and field performance.

During the year, the Group expensed $306 million (2024: $241 million) of exploration and appraisal activities. This covers exploration write-off expense of $200 million (2024: $173 million) including costs associated with projects in Norway ($22 million, 2024: UK $79 million), licence relinquishments in the UK

($40 million

) and Mexico

($107 million, 2024: Norway, $64 million), and $84 million (2024: $40 million) costs primarily associated with carbon capture and storage activities.

EBITDAX

was $7,118 million (2024: $4,027 million), with the increase driven by the enlarged group. Adjusted EBITDAX

was $7,196 million (2024: $4,146 million), an increase of $3,050 million.

Net financing costs

Finance income amounted to $461 million (2024: $173 million). The increase compared to 2024 is primarily due to realised gains on foreign exchange forward contracts of $191 million and changes in the fair value of foreign exchange derivatives of $109 million.

Finance expenses amounted to $1,150 million (2024: $602 million). This included:

▪

interest expense incurred of $176 million (2024: $78 million) related to debt facilities and bonds;

▪

bank and financing fees of $123 million (2024: $139 million);

▪

unwinding of the discount on decommissioning provisions of $293 million (2024: $221 million);

▪

lease interest of $40 million (2024: $53 million); and

▪

unrealised foreign exchange losses of $485 million (2024: $118 million, gain) which predominantly arose on the Group's tax liabilities and intercompany balances due to the weakening of the US dollar.

Earnings and taxation

Loss after tax amounted to $182 million (2024: $93 million loss). This resulted in a loss per ordinary voting share of 15 cents (2024: 10 cents, loss) after taking into account the weighted average number of ordinary voting shares in issue of 1,426 million (2024: 990 million). Adjusted profit after tax was $603 million (2024: $370 million) which resulted in earnings per share of 31 cents (2024: 33 cents).

After taking into consideration $81 million (2024: $15 million) attributable to subordinated notes investors, loss after tax attributable to equity owners of the company amounted to $263 million (2024: $108 million loss attributable to equity owners of the company). Adjusted profit after tax amounted to $603 million (2024: $370 million), an increase of $233 million.

Harbour's tax expense increased to $2,983 million in 2025 (2024: $1,312 million), primarily driven by higher pre-tax profits resulting from the additional earnings contributed by the acquisition and the extension of the UK Energy Profits Levy (EPL). The tax expense comprises a current tax expense of $3,505 million (2024: $1,415 million, expense) and a deferred tax credit of $522 million (2024: $103 million, credit).

The effective tax rate of 106 per cent (2024: 108 per cent) is materially higher than the statutory tax rate of 78 per cent (2024: 78 per cent). This is primarily due to a $311 million deferred tax charge arising from legal enactment of the extension of the EPL in the UK by two years, from 31 March 2028 to 31 March 2030, as well as non-deductible foreign exchange losses and weighting of earnings across the various jurisdictions. The adjusted effective tax rate is 82 per cent (2024: 79 per cent).

Shareholder distributions

A final dividend with respect to 2024 of 13.19 cents per ordinary share was proposed on 6 March 2025 and approved by shareholders at the AGM on 8 May 2025. The dividend was paid on 21 May 2025 to all shareholders on the register as at 11 April 2025, totalling $228 million. An interim dividend was announced on 7 August 2025 at 13.19 cents per share and was paid on 24 September 2025 at a value of $227 million.

The Board is proposing a final dividend with respect to

2025 of 8.05 cents per voting ordinary share to be paid in pound sterling at the spot rate prevailing on the record date. This dividend is subject to shareholder approval at the AGM, to be held on 7 May 2026. If approved, the dividend will be paid on 20 May 2026 to shareholders as of 10 April 2026. The ex-dividend date is 9 April 2026. A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the company. The last date to elect for the DRIP in respect of this dividend is 28 April 2026.

A DRIP is provided by Equiniti Financial Services Limited. The DRIP enables the company's shareholders to elect to have their cash dividend payments used to purchase the company's shares. More information can be found at

www.shareview.co.uk/info/drip

Statement of financial position

2024

2025

As restated

$ million

Assets

Goodwill

5,062

Non-current assets, excluding goodwill and deferred taxes

19,797

21,168

Deferred tax assets

121

130

Current assets

3,723

3,640

Assets held for sale

390

277

Total assets

29,093

30,277

Liabilities and equity

Borrowings net of transaction fees

5,151

5,229

Provisions

7,413

7,521

Deferred tax liabilities

6,491

6,177

Lease liabilities

634

792

Other financial liabilities

877

Other liabilities

2,944

3,197

Liabilities directly associated with assets held for sale

214

233

Total liabilities

22,887

24,026

Equity

6,206

6,251

Total liabilities and equity

29,093

30,277

Net debt

4,305

4,424

Assets

The decrease in total assets of $1,184 million to $29,093 million (2024: $30,277 million, as restated) is mainly as a result of a reduction in property, plant and equipment of $1,368 million, driven by impairment charges of $365 million as well as an increase in depreciation $2,773 million (2024: $1,522 million) relative to additions in the period $1,523 million (2024: $1,059 million). Total assets include assets held for sale in respect of the Indonesia disposal of $390 million (2024: Vietnam $277 million).

Liabilities

The decrease in total liabilities of $1,139 million to $22,887 million (2024: $24,026 million) is primarily driven by the reduction in the fair value of the Group's other financial liabilities, reducing to $40 million from $877 million, with the net financial instruments moving to a net asset position. Total liabilities included liabilities directly associated with assets held for sale in respect of the Indonesia disposal of $214 million.

The net deferred tax position on the statement of financial position is a liability of $6,370 million (2024: $6,047 million, as restated). This primarily consists of deferred tax liabilities in respect of the future profits which will flow from our accelerated capital allowances of $9,012 million and fair value losses on derivatives $2,739 million, partially offset by deferred tax assets in respect of future tax relief on decommissioning spend of $331 million and tax losses of $194 million.

Equity and reserves

Total equity decreased by $45 million to $6,206 million (2024: $6,251 million). The decrease was driven by shareholder distributions of $545 million (2024: $199 million), offset by the new issuance of subordinated notes in the period of $970 million less the repayment of $558 million of the existing notes. Movements in equity also included favourable post-tax fair value movements on cash flow hedges of $429 million (2024: unfavourable of $166 million), offset by losses on currency translation of $182 million (2024: $130 million, gains) all recognised in other comprehensive income, in addition to the loss for the year.

Net debt

As at 31 December 2025, net debt was $4,305 million (2024: $4,424 million). This consisted of borrowings amounting to $5,366 million (2024: $5,513 million) less unamortised fees of $215 million (2024: $284 million) less cash balances of $846 million (2024: $805 million). During the year, a new $900 million senior bond maturing in 2035 was placed, and partly used to pay the existing $500 million senior bond. The €1,000 million bond due in 2025 was also paid during the year. In addition, Harbour had surety bonds of $726 million (£538 million) at year end which provide cover for decommissioning securities.

As at 31 December 2025, the Group has the ability to fund its near-term debt maturities out to 2028 and, following the latest acquisitions, its investment grade rating was reaffirmed by Moody's (Baa2) and unchanged by Fitch (BBB-).

Available liquidity, comprising the undrawn portion of the RCF facility of $2.3 billion (the $3.0 billion facility had not been drawn down and $0.7 billion letters of credit for decommissioning had been drawn) plus cash balances of $0.8 billion (2024: $0.8 billion), was $3.1 billion (2024: $2.7 billion) at the end of the year.

As at 31 December 2025, the leverage ratio

was 0.6x (2024: 1.1x) which has decreased primarily as a result of the significant increase in EBITDAX due to a full year of contribution from the acquisition in 2025 versus four months of EBITDAX contribution in 2024. Net debt is marginally lower at $4.3 billion (2024: $4.4 billion).

The balance sheet is in a strong position supported by the RCF facility and investment grade credit ratings.

2025

2024

$ million

Leverage ratio

Net debt

4,305

4,424

EBITDAX

7,118

4,027

Leverage ratio

0.6 x

1.1 x

1 Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Derivative financial instruments

We carry out hedging activity to manage commodity price risk. We have entered into both a series of fixed-price sales agreements and a financial hedging programme for both oil and gas, consisting of swap and option instruments. Hedges realised to date are in respect of both crude oil and natural gas.

The hedging programme as at 31 December 2025 is shown below:

Hedge position

2026

2027

2028

Oil

Total oil volume hedged (thousand bbls)

16,258

7,574

- of which swaps

14,159

1,643

- of which collars

2,099

5,931

Weighted average fixed price ($/bbl)

72.57

68.08

Weighted average collar floor and cap ($/bbl)

60.00 - 75.24

60.00 - 76.99

Natural gas

Gas volume hedged (thousand boe)

26,483

12,602

1,804

- of which swaps/fixed price forward sales

19,830

5,506

510

- of which zero cost collars

6,653

7,096

1,294

Weighted average fixed price ($/mscf)

11.67

10.92

10.87

Weighted average collar floor and cap ($/mscf)

9.38 - 17.75

8.15 - 14.63

7.95 - 16.00

As at 31 December 2025, our financial hedging programme on commodity derivative instruments showed a pre-tax positive mark-to-market fair value of $493 million (2024: $475 million, negative). Most of the commodity derivatives were designated as cash flow hedges, therefore, changes in fair value were reported in other comprehensive income.

For foreign exchange derivative instruments, the pre-tax positive mark-to-market fair value was $104 million (2024: $198 million, negative). Of this value, $83 million (2024: $173 million) related to the cross-currency interest rate swaps designated as cash flow hedges relating to the euro bonds of €2.6 billion (2024: €2.4 billion) which were hedged at a forward rate of between 1.1017 and 1.1680 (2024: 1.1015 and 1.1209).The remaining $21 million related to FX forward contracts designated as fair value through income statement.

Statement of cash flows

2025

2024

$ million

Cash flow from operating activities before tax payments

6,862

3,114

Tax payments

(3,476)

(1,499)

Cash flow from operating activities after tax payments

3,386

1,615

Cash flow from investing activities - capital investment

(1,912)

(1,322)

Cash flow from investing activities - other

132

Operating cash flow after investing activities

1,606

382

Cash flow from financing activities

(540)

(500)

Free cash flow

1,066

(118)

Cash and cash equivalents

846

805

Table excludes financing activities related to debt and subordinated notes principal movements.

Excludes net expenditure on business combinations of $34 million (2024: $1,044 million).

Interest, lease interest and capital payments only, excludes shareholder distributions.

Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

Net operating cash flow before tax was $6,862 million (2024: $3,114 million) reflecting twelve months of the enlarged group. The timing and magnitude of tax payments impacted net cash from operating activities after tax which amounted to $3,386 million (2024: $1,615 million). Tax payments during the year were $3,476 million compared to $1,499 million in 2024 due to the enlarged portfolio.

Cash flow working capital movements were positive $60 million (2024: negative $494 million) as a result of the collection of overdue receivables in Egypt and Mexico acquired as part of the Wintershall Dea transaction.

Capital investment was $1,912 million (2024: $1,322 million) which included property, plant and equipment additions of $1,435 million (2024: $884 million), exploration and evaluation additions of $363 million (2024: $359 million) and other intangible additions of $114 million (2024: $79 million). Cash outflow from financing activities totalled $540 million (2024: $500 million) split between interest payments of $246 million (2024: $181 million) and lease payments of $294 million (2024: $319 million).

Free cash flow was $1,066 million inflow (2024: $118 million outflow).

Shareholder distributions totalled $545 million (2024: $199 million) and consist of dividends paid of $455 million (2024: $199 million) and the repurchase of Harbour's own shares of $90 million (2024: $nil).

Cash and cash equivalent balances were $846 million (2024: $805 million) at the end of the year.

Capital investment is defined as additions to property, plant and equipment, fixtures and fittings and intangible exploration and evaluation assets, excluding changes to decommissioning assets.

2025

2024

$ million

Additions to oil and gas assets

(1,511)

(1,037)

Additions to fixtures and fittings, office equipment and IT software

(63)

(73)

Additions to exploration and evaluation assets

(327)

(398)

Additions to other intangible assets

(45)

(36)

Total capital investment

(1,946)

(1,544)

Movements in working capital

(47)

140

Capitalised interest

Capitalised lease depreciation

Cash capital investment per the cash flow statement

(1,912)

(1,322)

Alternative performance measure - see Glossary for the definition. Reconciliations between adjusted performance measures and reported measures are provided within the Glossary.

During the period, the Group incurred total capital expenditure of $2,370 million (2024: $1,828 million), split by capital investment $1,946 million (2024: $1,544 million)

decommissioning spend $374 million (2024: $284 million), and energy transition expenditure $50 million (2024: $nil) respectively.

The majority of the capital investment was concentrated around our existing production hubs, predominantly in Norway and the UK. Refer to the Operational review for more detail.

Principal risks

The directors have identified a number of changes to the principle risks facing the company following the completion of the Wintershall Dea acquisition. This includes elevated risk levels in relation to the lower commodity price environment, physical asset security, cyber security and a somewhat lower risk in relation to the energy transition. Notably, the principal risk recognised in the 2024 Annual Report as 'Integration of acquired businesses' has been retired following the successful completion of the acquisition.

Events after the reporting period

On 11 February 2026 Harbour announced it had completed the acquisition of LLOG Exploration Company LLC for $3.2 billion, marking the Company's strategic entry into the US Gulf of America. Harbour financed the Acquisition through $2.7 billion of cash and the issuance of 174,855,744 new Harbour voting ordinary shares (the Consideration Shares) to LLOG Holdings LLC (the Seller) with an agreed value of $0.5 billion. The cash was funded by a $1.0 billion bridge facility, a $1.0 billion 3-year term loan and $0.7 billion from existing sources of liquidity.

At the time when the financial statements were authorised for issue, the group had not yet completed the accounting for the acquisition of LLOG Exploration Company LLC. The proximity of the completion of the acquisition to the authorisation of the financial statements has meant the fair values of the assets and liabilities have not been finalised. It is also not yet possible to provide detailed information about each class acquired receivables and any contingent liabilities of the acquired entities.

In 2024, the German non-governmental organisation Deutsche Umwelthilfe (NGO) filed a lawsuit against the German mining authority (LBEG) challenging the operating permit of Harbour Energy Germany GmbH (HEGG) for HEGG's Mittelplate field. HEGG is a joined party in this lawsuit. On 26 February 2026, a court of first instance (Schleswig-Holsteinisches Verwaltungsgericht) decided that the operating permit is to be considered invalid during the duration of the main court proceeding. HEGG filed an appeal on 27 February 2026 with the Appellate Court (Schleswig-Holsteinisches Oberverwaltungsgericht). This Court confirmed the receipt of the appeal and stated in writing that its Senate, which will decide on the appeal, assumes that the operations of the drilling and production island Mittelplate will continue until a decision has been determined. Based on this first response by the Appellate Court, and in close alignment with the mining authority, HEGG is focused on continuing safe operations.

Going concern

The directors considered the going concern assessment period to be up to 31 December 2027. The Group monitors and manages its capital position and its liquidity risk regularly to ensure that it has access to sufficient funds to meet forecast cash requirements. Cash forecasts for management are regularly produced and sensitivities considered based on, but not limited to, the Group's latest life of field production and expenditure forecasts, management's best estimate of futu...