Genel Energy PLC (GENL) Genel Energy PLC: Trading and operations
update 17-Jan-2023 / 07:00 GMT/BST Dissemination of a Regulatory
Announcement that contains inside information in accordance with
the Market Abuse Regulation (MAR), transmitted by EQS Group. The
issuer is solely responsible for the content of this
announcement.
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17 January 2023
Genel Energy plc
Trading and operations update
Genel Energy plc ('Genel' or 'the Company') issues the following
trading and operations update in advance of the Company's full-year
2022 results, which are scheduled for release on 22 March 2023. The
information contained herein has not been audited and may be
subject to further review.
Paul Weir, Chief Executive of Genel, said:
"Genel starts 2023 with a strong balance sheet, a net cash
balance of over USD200 million, and a cash generative production
business. Our focus is now the preservation of capital for the
addition of new resilient and cash-generative assets to our
production portfolio, with free cash generation in 2023 funding
both our dividend programme and progress towards the drilling of
our exploration well in Somaliland.
As we work to centre our business around the delivery of our
material, sustainable, and progressive dividend programme, our
capital allocation decisions are targeted towards delivering the
profitability and cash generation required to support that
programme in the long-term."
2022 PERFORMANCE
-- Zero lost time incidents in 2022, with over three million
hours worked since the last incident
-- Net production of 30,150 bopd in 2022 (31,710 bopd in 2021),
and 29,600 bopd in Q4, in line with guidance
-- USD473 million of cash proceeds were received from the KRG in
2022 (2021: USD281 million)? Higher Brent oil price of USD101/bbl
in 2022 (USD71/bbl in 2021) ? USD124 million received relating to
Tawke PSC override payments ? USD94 million received for deferred
receivables relating to unpaid oil sales from November 2019
toFebruary 2020 and the suspended override from March to December
2020
-- Capital expenditure of USD140 million, slightly below
guidance due to the deferral of a well at Taq Taq andlower than
budgeted spend at Sarta? USD74 million at Tawke PSC, and USD47
million at Sarta
-- Free cash flow of USD233 million (USD86 million in 2021)
-- Dividends totalling 18¢ per share paid in 2022 (2021: 15¢ per
share), a total distribution of USD50 million
-- Cash of USD495 million at 31 December 2022 (USD314 million at
31 December 2021)? Excludes USD64 million which was due for payment
in 2022
-- Net cash under IFRS of USD228 million at 31 December 2022
(USD44 million at 31 December 2021)? Total debt of USD274 million
at 31 December 2022 (USD280 million at 31 December 2021)
2023 OUTLOOK AND GUIDANCE
-- Production in 2023 is expected to be 27-29,000 bopd, with
similar operating expenditure to last year ofc.USD50 million,
equating to c.USD5/bbl
-- Material reduction in capital expenditure, with 2023
expenditure expected to be between USD100 million andUSD125
million, with key asset spend including:? Production business cost
recoverable capital expenditure roughly flat at c.USD90 million ?
Up to c.USD25 million expenditure in Somaliland, as we progress
towards the spudding of the Toosan-1well in this frontier basin ?
c.USD10 million currently expected on maintenance of other assets
including Sarta, a reduction of c.USD50million on 2022
-- Genel is committed to our material and sustainable dividend
programme. The dividend is currently at 18¢per share, equating to
USD50 million, which we expect to be covered by free cash flow in
2023
-- Genel continues to actively screen and work up opportunities
to put our cash to work in order to extendthe line of sight on cash
flows that support our dividend programme into the long-term
-- Genel continues to invest in the host communities in which we
operate, aiming to invest in those areas inwhich we can make a
material difference to society, with an increasing focus on
Somaliland in 2023
PRODUCTION BUSINESS
-- Production by field was as follows:
Gross production Net production Net production
(bopd)
2022 2022 2021
Tawke 107,090 26,770 27,180
Taq Taq 4,490 1,980 2,610
Sarta 4,710 1,400 1,920
Total 121,060 30,150 31,710
-- Tawke PSC (25% working interest)? Gross production averaged
107,090 bopd in 2022, and 106,480 bopd in Q4
-- Sarta (30% working interest and operator)? Gross production
4,710 bopd in 2022, and 3,960 bopd in Q4 ? Genel's focus is on
making ongoing production from Sarta profitable, with any further
capitalinvestment contingent on both licence profitability and the
extent to which there can be confidence that suchinvestment can add
cash generative production
-- Taq Taq PSC (44% working interest and joint operator)? Gross
production averaged 4,490 bopd in 2022, and 3,970 bopd in Q4 ?
Activity in 2023 is expected to include one sidetrack well
targeting the Upper Shiranish formation
PRE-PRODUCTION BUSINESS
-- Somaliland? Preparation continues for the drilling of the
Toosan-1 well on the highly prospective SL10B13 block(51% working
interest and operator) ? The Toosan prospect contains stacked
Mesozoic reservoir objectives, with multiple individualprospective
resource estimates each ranging from 100 to 200 MMbbls ? The
geotechnical survey has now completed as we progress towards
construction of the well pad.Environmental and social impact
assessments are underway, and tendering has commenced for the rig
and wellservices ? Genel continues to target a spud date in the
next 12-18 months, acknowledging the challenges ofoperating in such
a frontier area with limited existing infrastructure
-- Morocco? The farm-out programme on the Lagzira block (75%
working interest and operator) is continuing
-- Qara Dagh? The results of the QD-2 well were announced in
January 2022 ? Under the terms of the PSC the licence has now
expired ? The joint venture partners are engaging with the KRG on
the future of the licence area
ARBITRATION
-- The London-seated international arbitration regarding Genel's
claim for substantial compensation from theKRG following the
termination of the Miran and Bina Bawi PSCs is progressing. The
trial is scheduled for February2024
Genel will also host a live presentation on the Investor Meet
Company platform today at 1000 GMT. The presentation is open to all
existing and potential shareholders. Questions can be submitted at
any time during the live presentation. Investors can sign up to
Investor Meet Company for free and add to meet Genel Energy PLC
via: https://
www.investormeetcompany.com/genel-energy-plc/register-investor
-ends-
For further information, please contact:
Genel Energy
+44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Consulting
+44 20 7390 0230
Patrick d'Ancona
This announcement includes inside information.
Notes to editors:
Genel Energy is a socially responsible oil producer listed on
the main market of the London Stock Exchange (LSE: GENL, LEI:
549300IVCJDWC3LR8F94). The Company is one of the largest
London-listed independent hydrocarbon producers, with an asset
portfolio that positions us well for a future of fewer and better
natural resources projects. Genel has low-cost and low-carbon
production from the Kurdistan Region of Iraq, and a committed
dividend programme that is material and sustainable. Genel
continues to seek opportunities to add new resilient and
cash-generative assets to its portfolio, with the goal of
progressing its dividend in the long-term. For further information,
please refer to www.genelenergy.com
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ISIN: JE00B55Q3P39, NO0010894330
Category Code: TST
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 216119
EQS News ID: 1536357
End of Announcement EQS News Service
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