Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

HBR Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Harbour Energy plc (HBR), the free cash flow value is 970.30M.

All amounts in USD

Operating Cash
1.61B
Capital Expenditure
-643.9M
Free Cash Flow
970.30M

Harbour Energy plc has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

HBR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Harbour Energy plc (LSE:HBR).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 101.1M -778.4M 218.85M 368.9M
Depreciation 1.74B 2.03B 917.24M 639.88M
Change To Netincome 376.8M 170.9M 393.31M 369.78M
Change To Account Receivables -607.4M 41.5M -6.09M 32.58M
Change To Liabilities 13.5M -76.3M -4.86M 34.84M
Change To Inventory -13M -11.2M 208k 1.86M
Total Cash From Operating Activities 1.61B 1.37B 1.52B 1.45B
Capital Expenditures -643.9M -598.1M -530.28M -350.16M
Other Cashflows From Investing Activities 21.5M 7.4M 9.45M 8.62M
Total Cashflows From Investing Activities -571M -603.2M -2.78B -581.9M
Net Borrowings -530.7M -751.6M 1.65B -714.6M
Other Cashflows From Financing Activities -253.4M -147.8M -143.91M -132.82M
Total Cash From Financing Activities -787.2M -899.4M 1.51B -847.42M
Effect Of Exchange Rate -2.7M 1.4M 5.9M -1.75M
Change In Cash 253.3M -127.8M 256.87M 16.77M
Repurchase Of Stock -3.1M -3.1M -3.1M -3.1M