Genel Energy has shared its unaudited results for the first half of 2026, highlighting its plans to grow the business, strengthen its financial position, and expand into new regions.
Chief Executive Paul Weir said the company remains focused on its long-term goals. He explained that the planned all-cash acquisition of Capricorn Energy has been a major priority this year and marks an important step in Genel’s strategy to expand beyond its current operations.
The deal would add Egypt to Genel’s portfolio, helping the company create a more diverse business with new sources of cash generation while keeping a strong balance sheet.
In Kurdistan, Genel said it continues working with DNO to restart normal production levels and restore exports. The company said activity will continue to be adjusted depending on operating conditions, financial factors, and well performance.
The company is also moving ahead with plans in Oman and Somaliland. In Oman, Genel expects to drill two commitment wells on Block 54 in 2027. In Somaliland, preparations are continuing for the Toosan-1 exploration well, which could become a major opportunity for the company.
Paul Weir said the company sees strong potential over the next six to twelve months.
Financial Performance
Genel reported several challenges during the first half of 2026, mainly due to production interruptions caused by regional tensions.
Key results for H1 2026:
- Average Brent oil price increased to $91 per barrel, compared with $72 per barrel in H1 2025.
- Working interest production dropped to 6,600 barrels per day from 19,600 barrels per day a year earlier.
- Revenue fell to $13.4 million compared with $35.8 million in H1 2025.
- Production costs remained stable at $9.4 million.
- Free cash flow showed an outflow of $25.4 million compared with a $4.7 million inflow in the same period last year.
- Cash balance stood at $199 million at the end of June.
- Total debt remained at $92 million, leaving Genel with net cash of $108 million.
The company said production was heavily affected after operations were suspended as a safety measure when conflicts involving the United States, Israel, and Iran increased at the end of February.
Before the suspension, production levels remained strong, with gross average production reaching 79,900 barrels per day, close to December 2025 levels.
Kurdistan Operations
At the Tawke field, drilling and well work restarted in April, followed by the return of production operations near the end of the reporting period.
During the first half of the year, all production was sold through domestic markets. Genel reported an average sales price of $31 per barrel, with payments received before sales.
The company recorded a production business loss of $24 million due to the production shutdown and reduced cash flow.
Genel continues discussions with the Kurdistan Regional Government (KRG) regarding overdue payments.
Around $88 million remains outstanding from the KRG, excluding interest, although this amount has been reduced by approximately $40 million through credit balances.
The company is working on a solution for payment, settlement, and adjustments related to pricing and interest.
Strong Financial Position
After the reporting period, Genel raised an additional $35 million through a new bond issue in July. This increased total debt to $127 million, while the company still has access to additional borrowing capacity.
Genel reported cash of $240 million as of 31 July 2026.
The company said it has maintained a strong financial position despite the production suspension and expects to continue generating cash as operations recover.
Future Plans
Genel’s main focus areas include:
- Completing the planned acquisition of Capricorn Energy, subject to approvals.
- Increasing cash flow from the Tawke asset by restoring exports and gaining access to international pricing.
- Recovering around $50 million owed by the KRG.
- Investing up to $15 million in exploration and development projects.
- Advancing Oman Block 54 exploration plans, including seismic work and future drilling.
- Preparing for the Toosan-1 exploration well in Somaliland in 2027.
Community Support
Genel also highlighted its social responsibility efforts.
Through the Genel20 Scholarship programme, the company has started a second phase that provides students with academic support and personal mentorship from Genel professionals.
In Somaliland, Genel continues supporting local communities through emergency water projects and improvements to education facilities.
Looking Ahead
Genel Energy said its goal remains building a stronger business with reliable and diversified income streams that can support future growth and potential dividend payments.
Despite the challenges faced during the first half of the year, the company believes it is well positioned for the coming months with strong cash reserves, new growth opportunities, and plans to expand its global operations.
