Genel Energy has reported that homegrown deals request from the Tawke field has “shown strong consistency in the beyond a half year.”
Additionally, the company announced a bond buyback.
Paul Weir, CEO of Genel, stated in its unaudited results for the six months ended 30 June 2024:
“We have continued to move forward with our priority workstreams, each of which has the potential to transform the company. At the same time, we have kept our balance sheet strong by strictly disciplining how we spend money and allocate capital.”
“From our flagship Tawke license, where domestic sales demand has shown resilient consistency over the past six months and some recent price improvement, cash-generative production continues. We have productively shut down our unbeneficial worked licenses in the Kurdistan Locale of Iraq (‘KRI’) and limited our in-country impression, while keeping individuals protected and proceeding to go about as a confided in accomplice to every one of our partners. Tremendous expense decreases have been made across all parts of the business any place proper, and our hierarchical spend in the last part of the year will diminish further. The business can possibly convey critical investor esteem, well over the ongoing business sector worth of the business. The Tawke PSC is a world-class asset that has a long lifespan. When exports resume, it has the potential to provide Genel with over $100 million in entitlement free cash flow annually—more than double the current level.
“We continue to lobby regional and federal governments, along with our peers in the industry and other stakeholders, to break the current political impasse so that international oil exports from Kurdistan can resume in a manner that appropriately rewards IOCs that have chosen to invest in Kurdistan.” Stakeholder participation in recent tripartite talks supports the notion that a negotiated solution can be found, despite the fact that progress is sporadic.
“To significantly diversify our cash generation and reenergize our organic portfolio, we continue to prioritize the acquisition of new assets.” Adding new resources for accomplish topographical expansion is an essential goal, however we will just purchase a resource based on conditions that are plainly valuable for our investors.
“As to London-situated Miran and Bina Bawi oil and gas resources intervention, the composed and evidentiary stages have now closed. Although the award’s timing is unknown, it is anticipated before the end of 2024. Since the KRG began the arbitration process in 2021, our viewpoint on the merits of our case has not changed.”
The main points from the announcement of the results:
Results outline ($ million except if expressed)
H1 2024 | H1 2023 | FY 2023 | |
| Average Brent oil price ($/bbl) | 84 | 80 | 82 |
| Production (bopd, working interest) | 19,510 | 13,440 | 12,410 |
| Revenue | 37.6 | 48.0 | 84.8 |
| Opex | (8.2) | (14.7) | (21.3) |
| EBITDAX1 | 11.1 | 22.9 | 32.8 |
| Operating loss | (15.8) | (11.2) | (19.2) |
| Cash flow from operations | 36.4 | 39.2 | 55.1 |
| Capital expenditure | 15.9 | 47.5 | 68.0 |
| Free cash flow2 | 8.5 | (35.1) | (71.0) |
| Cash | 370.4 | 425.0 | 363.4 |
| Total debt | 248.0 | 273.0 | 248.0 |
| Net cash3 | 125.5 | 158.2 | 119.7 |
| Basic LPS (¢ per share) | (7.9) | (14.6) | (22.0) |
EBITDAX is working shortfall adapted to the add back of deterioration and amortization, net discount/hindrance of oil and gas resources and net ECL/inversion of ECL receivables
Free income is accommodated on page 6
Announced cash less obligation revealed under IFRS (page 6)
Synopsis
We keep on selling locally with the course to trades suspended
Predictable creation from the Tawke PSC, with negligible speculation, has conveyed normal working interest creation of 19,510 bopd in H1 2024 (H1 2023: 11,740 bopd)
Homegrown deals cost has found the middle value of $34/bbl for the period (2023: $35/bbl), with the last two months priced at $37/bbl, and all cash due for domestic sales received prior to the period’s end. Net cash of $126 million (31 December 2023: $120 million)
Critical money surplus of $370 million (31 December 2023: $363 million) $248 million in bond debt (on December 31, 2023: $248 million) A global energy mix contributor with social responsibility:
At the Genel and TTOPCO operations, there have been no lost time injuries (‘LTIs’) and no tier one loss of primary containment events. Three million work hours have passed since the last LTI.
working toward the restart of exports and access to international pricing with our peers; diversifying our income through the purchase of new assets; maintaining a strong balance sheet. The London-seated international arbitration process involving Genel’s claim for substantial compensation from the KRG following the termination of the Miran and Bina Bawi PSCs has now come to an end, with closing submissions being exchanged in May and reply reports being exchanged in June. It is presently for the board to consider and afterward make an honor. Although the award’s timing is unknown, it is anticipated before the year’s end.
Today’s announcement of a reverse tender offer to buy back a bond
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