Paul Weir, chief government of Genel, stated:
“In 2024, we demonstrated similarly progress on our journey of building towards turning in resilient, diversified cash flows. Our shift from coins outflow in 2023 to coins era in 2024 has been vital, and in 2025 we anticipate the coins generated via the Tawke p.c to continue to cowl our expenses. we are overjoyed to have set up a footprint in the Sultanate of Oman, via our award of an hobby in Block 54. this is the first step on our roadmap to diversification.
“For 2025, we stay focussed on three fundamental goals: preservation of a robust stability sheet; resilient cash generation from the middle business; and the addition of latest assets.
“for new assets, we are able to are trying to find both to boom that footprint in Oman, and additionally gather assets in different favored jurisdictions that we’ve identified as attractive to Genel, with a focus on including production belongings that growth the coins technology and resilience of the commercial enterprise, and provide ability for in addition boom.
“in the Kurdistan vicinity of Iraq (‘KRI’) we continue to paintings with our friends and the Regulator in the direction of the restart of exports at the proper terms to make sure our contracts are honoured and we’re paid what we are due.”
results summary ($ million unless stated)
2024 | 2023 | |
| Average Brent oil price ($/bbl) | 81 | 82 |
| Average realised price per barrel | 35 | 47 |
| Production (bopd, working interest) | 19,650 | 12,410 |
| Revenue | 74.7 | 78.4 |
| Production costs | (17.6) | (18.0) |
| EBITDAX1 | 1.1 | 33.3 |
| Operating loss | (52.4) | (10.3) |
| Cash flow from operations | 66.9 | 55.1 |
| Capital expenditure | 25.7 | 68.0 |
| Free cash flow2 | 19.6 | (71.0) |
| Cash | 195.6 | 363.4 |
| Total debt | 65.8 | 247.8 |
| Net cash3 | 130.7 | 119.7 |
| Basic LPS from continuing operations (¢ per share) | (22.5) | (6.1) |
EBITDAX is operating loss adjusted for the add back of depreciation and amortisation, exploration price, net write-off/impairment of oil and fuel belongings and internet ECL/reversal of ECL receivables
unfastened cash glide is reconciled on page 8
said coins less IFRS debt is reconciled on page eight
Highlights
running interest common manufacturing elevated by way of 58% to 19,650 bopd (2023: 12,410 bopd)
All manufacturing bought into the domestic market at common $35/bbl steady with prior yr (2023: $forty seven/bbl, which covered export income prices in Q1)
unfastened coins flow of $20 million, compared to loose cash outflow of $71 million ultimate year
Tawke unfastened coins flow era from domestic income changed into over $70 million (2023: $28 million), making the most of a few offsetting and additionally high-quality running capital movements of round $30 million
business enterprise price discounts were offset through non-repeating prices on arbitration, last out unprofitable licences at Taq Taq and Sarta, and finalising go out from Qara Dagh
ultimate net coins of $131 million, an increase from $one hundred twenty million on the begin of the year
coins of $196 million (2023: $363 million), with bond debt decreased from $248 million on the begin of the 12 months to $sixty six million at 12 months-quit from buybacks and partial workout of name alternative
$107 million (beneath KBT pricing and aside from interest) remains late from the Kurdistan nearby authorities (‘KRG’) to the Genel subsidiary Genel power international limited (‘GEIL’) for sales made in preceding years. The organisation owes the KRG round $50 million. We preserve to paintings in the direction of a plan for fee or agreement of amounts owed, and appropriate adjustment for price and interest
We had been dissatisfied that in December 2024 the subsidiary, Genel energy Miran Bina Bawi limited (‘GEMBBL’), misplaced the arbitration case added towards it through the KRG concerning the Miran and Bina Bawi fuel property. As previously introduced, the KRG is seeking a fees award of over $36 million in opposition to GEMBBL
ultimate week, the enterprise announced its award of an hobby in Block 54 within the Sultanate of Oman. This new u . s . entry is an vital first step towards strategic diversification of our commercial enterprise
common portfolio carbon depth again expected to be under 14 kgCO2e/bbl, ultimate under the current goal for industry average
weather rating: maintained a CDP climate score of B for a 3rd consecutive yr
OUTLOOK
With domestic income demand at similar stages to ultimate 12 months and year to date this 12 months, the organisation expects cash generation from the Tawke p.c to cowl its organisational prices
The organization keeps to development closer to building a commercial enterprise with a strong balance sheet that promises resilient, reliable, repeatable and diverse coins flows that helps a dividend programme. The organization goals for the 12 months at the course to building that enterprise encompass:
acquisition of new property in Oman and other focused jurisdiction to add reserves and diversify our coins technology
restart of exports to get entry to international pricing
restoration of net amounts owed by using the KRG
in addition development in the direction of drilling Toosan-1
The corporation has engaged Pareto Securities AS as supervisor and Bookrunner to set up constant income investor meetings. concern to market situations and perfect phrases, a brand new senior unsecured bond difficulty with a tenor of five years may also comply with
CEO announcement
We begin 2025 leaner and more green, and with all of the constructing blocks essential to set up a larger and greater a success enterprise. Genel has a robust balance sheet and our producing fields within the Tawke percent form a world-magnificence asset that delivers vast coins technology even if promoting at heavily discounted home fees because of the suspension of exports. that is a state of affairs that we retain to work on intently with our friends and host authorities to resolve. Genel has a compact but extraordinarily skilled and prompted group of workers, dedicated to executing our increase strategy and pursuing value accretive acquisitions on the way to diversify our geographical footprint within dependable and predictable jurisdictions.
In 2024, we persevered with the fee reduction exercise and enterprise efficiency upgrades that started in 2022. That system extended to persevering with the divestment process for non-worthwhile belongings. Taq Taq awaits handiest authorities approval before divestment is entire, and relinquishment of our other non-producing legacy property in the Kurdistan location of Iraq (‘KRI’) can also be completed soon.
Having added those upgrades and trimmed our debt ranges to improve the capital performance of the enterprise, it is time to move on to the next phase.
we are very clear on what needs to be accomplished to supply the appropriate company boom and supply the shareholder returns which might be necessary for an rising marketplace exploration and manufacturing business. The period of consolidation and performance improvement in 2024 must now deliver way to profitable boom.
Genel is overjoyed to have taken step one in its boom adventure with the aid of signing an EPSA inside the Sultanate of Oman with OQ Exploration & production SAOG (‘OQEP’) as Operator, which will see us participate in the appraisal and development of Block fifty four. this could see Genel spend modestly over the following three years. The capacity at the block is considerable and whilst the eventual returns aren’t positive at this stage, we agree with this move will lead to similarly interesting possibilities in the location. Oman is a jurisdiction that Genel has lengthy considered as a completely attractive location to do enterprise and in which we were made very welcome through each our new companion and the regulator.
returned within the KRI, collectively with our operating companion DNO, we have helped establish a dependable and constant home sales market, which generates very crucial cash for manufacturers there, albeit at a heavily discounted rate. Tawke manufacturing presently realises best round $35/bbl, that is well underneath applicable reference benchmark oil prices. With our peers inside the KRI, we maintain to work with our host authorities and Federal Iraqi government to negotiate an association that lets in the resumption of worldwide oil income at global oil charges and that provides appropriate returns for the ones producing the oil. This has proved to be a sporadic procedure, however most latest signs propose an answer must quickly be found; an answer that might double Genel revenue at once upon implementation.
we’ve labored difficult with DNO to make certain spend and delivery performance are optimised. the arena-class area working value of best $four/bbl and constant production transport throughout 2024 are testomony to the a success transport overall performance of this asset.
we’ve put behind us the disappointment of the outcome of the arbitration on the KRG’s termination of the legacy Miran and Bina Bawi licences, wherein the London court of global Arbitration dominated in favour of the KRG.
we have a clear course of journey and specific targets that we’re pursuing to re-energise the enterprise.
Outlook
The business enterprise is focussed on turning in on three foremost objectives:
sturdy balance sheet
we are able to preserve the precise stability that gives protection towards outlook downside eventualities and keep debt at a stage that is suitable for the coins technology of the commercial enterprise
Resilient cash technology
Realising the total capability of our current portfolio which incorporates delivering performance from the Tawke licence, an asset with a long and worthwhile existence in advance of it, and where many possibilities for in addition funding exist, if conditions permit.
persevering with to paintings with our peers, the Kurdistan regional authorities (‘KRG’) and the Federal government of Iraq (‘FGI’) to help the resumption of worldwide oil sales from the KRI
investment in new cash flows
acquiring the proper new property to re-energise our portfolio and deliver assorted, accelerated, and greater resilient coins era with a view to enable us to re-set up a regular lengthy-time period dividend for our shareholders
We are also centered on organising the proper situations to guide drilling the Toosan-1 exploration well in Somaliland
running assessment
Reserves and resources development
Genel’s validated plus likely (2P) net running hobby reserves totalled 82 MMbbls (31 December 2023: 89 MMbbls) at the cease of 2024.
| Remaining reserves (MMbbls) | Resources (MMboe) | ||||||||||
| Contingent | Prospective | ||||||||||
| 1P | 2P | 1C | 2C | Best | |||||||
| Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||
| 31 December 2023 | 245 | 63 | 338 | 89 | 13 | 3 | 39 | 10 | 4,580 | 2,964 | |
| Production | (29) | (7) | (29) | (7) | – | – | – | – | – | – | |
| Acquisitions and disposals | – | – | – | – | – | – | – | – | – | – | |
| Extensions and discoveries | – | – | – | – | – | – | – | – | – | – | |
| New developments | – | – | – | – | – | – | – | – | – | – | |
| Revision of previous estimates | – | – | – | – | – | – | – | – | 43 | 32 | |
| 31 December 2024* | 216 | 56 | 309 | 82 | 13 | 3 | 39 | 10 | 4,623 | 2,996 | |
- situation to very last affirmation of Tawke percent Reserves and sources with the aid of the Operator
manufacturing
operating interest common production of nineteen,650 bopd for the 12 months, accelerated from 12,410 bopd in 2023.
All Genel production in 2024 got here from the Tawke % and changed into offered into the home market at common $35/bbl (2023: $47/bbl).
generating property
Tawke % (25% working interest)
Gross production from the Tawke licence averaged 78,615 bopd in 2024 (2023: 46,280 bopd), a large development that demonstrates the fulfillment in organising regular domestic market demand and the achievement of the asset to satisfy that call for. In 2024, the Tawke percent generated over $70 million internet cash glide for Genel, benefitting both from strong domestic income, positive running capital moves and offsetting.
no matter drilling no new wells this yr, gross manufacturing from the Tawke percent has been maintained at consistent degrees. This has been performed by way of cautious and diligent subsurface and operations control. three wells that were drilled remaining year, however no longer completed due to the closure of the pipeline, were added onstream mid-12 months to fulfill demand from home buyers. production performance was further supported with the aid of an active well intervention programme.
In partnership with DNO, Genel continues to be part of the first associated fuel Injection (AGI) assignment in the Kurdistan area of Iraq (‘KRI’). when you consider that its inception the task has saved approximately 2.3 million tonnes of CO2e from getting into the surroundings, with Tawke p.c carbon emissions under the enterprise average.
Taq Taq (44% working hobby, joint operator)
We divested our 44% working hobby inside the Taq Taq production sharing settlement to our joint mission companion. we’ve got previously suggested that Taq Taq had been on care and maintenance because may also 2023 because the asset does no longer generate sufficient sales at home income costs to cover its running costs. furthermore, having access to the 10.3mmbbls of ultimate net 2P reserves might require risking of further capital to drill new wells with uncertain effects – investment that ranks low on the company’s capital allocation priorities. The phrases of the exit go away the corporation with minimum residual monetary responsibilities and capacity legal responsibility exposures. The transaction is concern to Kurdistan nearby authorities approval.
PRE-manufacturing assets
Somaliland – SL10B13 (fifty one% operating interest, Operator)
We persisted to paintings with stakeholders in the direction of the entire framework required to support drilling the Toosan-1 exploration well. This included optimisation of the nicely plan to lessen cost and maximise efficiency of the nicely shipping method and consideration of the correct equity level at which to be venture this interest. in the meantime, our in-u . s . a . team continued to work intently with our nearby groups. Genel’s mobile scientific medical institution undertaking in Somaliland, which provided critical clinical care for some of the poorest human beings in Africa, released segment two of the assignment in July, with a further 17,000 instances dealt with to take the full cases handled to extra than 35,000.
Somaliland – Odewayne (50% running interest, Operator)
We endured to paintings with our partners to characterise the prospectivity of the block, with subsurface studies ongoing. We also persisted to invest within the neighborhood groups, and in February 2024 added educational materials to at least one,000 primary and secondary college students across the block.
Morocco (Lagzira block – 75% working interest, Operator)
on the Lagzira block (seventy five% operating hobby and operator), we’re persevering with the farmout technique, seeking partners to check the Banasa Prospect, excessive graded, having been de-risked by means of 2024 seismic reprocessing.
economic assessment
2024 financial priorities
The table under summarises our development in opposition to the 2024 economic priorities of the enterprise as set out in our 2023 results.
| 2024 financial priorities | Progress |
| Maintain business resilience and balance sheet strength | Developed a consistent dependable income stream through the domestic sales marketReduced cost and divested Taq Taq PSC (subject to KRG approval)Minimised cost of remediation on Sarta and Qara Dagh PSCsReduced debt by $182 million, with associated decrease in interest costNet cash of $131 million and cash of $196 million at end of 2024 |
| Ensure capital availability for funding of key strategic objectives | Maintained competitive bond market pricing, indicating availability of debt capital when neededReduced cash levels through debt reduction to improve capital efficiency |
| Ensure appropriate capital allocation | Continued reduction in organisation to match needs of the businessDeferred expenditure on non-cash generative projectsOptimised processes and systems to improve operational efficiency |
Outlook and monetary priorities for 2025
the important thing principles of our economic attention stay largely unchanged. we’ve a resilient enterprise version that is designed to mitigate the impact of uncontrollable unfavourable activities and maximise exposure to the upside. ultimately, we are searching for to construct a business that generates resilient, numerous and predictable coins flows that assist resumption of distributions to shareholders.
