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2021-11-04

Genel Energy PLC: Trading and operations update

Genel Energy PLC (GENL)
Genel Energy PLC: Trading and operations update

04-Nov-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


4 November 2021

 

Genel Energy plc

 

Trading and operations update

 

Genel Energy plc ('Genel' or 'the Company') issues the following trading and operations update in respect of the third quarter and first nine months of 2021.

 

Bill Higgs, Chief Executive of Genel, said:

"Genel's low-cost and high-margin production continues to generate material positive cash flow which, coupled with our confidence in predictable payments going forward, allows us to further invest in our growth assets with sufficient surplus to support our competitive and progressive dividend, with the interim dividend increased by 20%.

 

I am pleased that drilling is back underway at Tawke, and drilling operations at Peshkabir, Sarta, and Qara Dagh are ongoing. We continue to work hard to deliver results from the appraisal programmes at Sarta and Qara Dagh, and remain excited about their potential, although disappointed that the testing programme will be later than we had forecast due to a combination of geological and operational challenges, supply chain issues, and well approval delays."

 

FINANCIAL PERFORMANCE

  • $187 million of cash proceeds received in the first nine months of 2021 ($142 million in the first nine months of 2020)
  • Free cash flow before investment in growth was $99 million in the first nine months of 2021 ($36 million in first nine months of 2020), despite the expected industry-wide reversion to payments three months in arrears by the Kurdistan Regional Government ('KRG') meaning seven payments have been received in the nine-month period
  • Total capital expenditure of $106 million, with $71 million spent in the first nine months of 2021 on progressing Sarta and Qara Dagh
  • Free cash flow of $33 million in the first nine months of 2021 (outflow of $5 million in the first nine months of 2020)
  • Cash of $277 million at 30 September 2021 ($266 million at 30 June 2021)
    • Net cash of $8 million at 30 September 2021 (net debt of $2 million at 30 June 2021)
  • Interim dividend of 6¢ per share (2020: 5¢ per share), a distribution of c.$18 million, to be paid to shareholders on the register as of 12 November 2021

 

OPERATING UPDATE

  • Net production averaged 32,005 bopd in the first nine months of 2021, with net production in Q3 averaging 30,520 bopd (Q2 2021: 32,475 bopd)
  • Production by field was as follows:

 

(bopd)

Gross production

Q3 2021

Net production

Q3 2021

Tawke

45,260

11,310

Peshkabir

59,920

14,980

Sarta

5,960

1,790

Taq Taq

5,530

2,430

Total

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