Genel Energy PLC: Trading and operations update

DJ Genel Energy PLC: Trading and operations update

Genel Energy PLC (GENL) 
Genel Energy PLC: Trading and operations update 
12-Nov-2024 / 07:00 GMT/BST 
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12 November 2024 
 
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 2024. 
 
Paul Weir, Chief Executive of Genel, said: 
"Since our half year results in August, we have continued optimising cash flows, evolving our capital structure and 
originating and maturing opportunities to acquire new assets that add reserves and diversify our cash generation 
geographically. We maintain our discipline on spend and focus on profitability and both delivering, and building on, 
the significant value upside that is already in the business. 
 
We have repurchased and cancelled USD182 million of our own bonds, reducing our debt from USD248 million to USD66 million at 
the end of October. Our balance sheet position remains strong, with net cash at the end of October of USD125 million, and 
cash of USD191 million. 
 
The Tawke PSC continues to deliver consistent production into consistent domestic market demand to generate significant 
cash flow. That cash generation more than covers our cash out-flows in the period, which have further reduced as a 
result of non-repeating activity in the first half of the year coming to an end, decreasing activity on non-core 
licences as we move towards exit and reduction in net interest cost following the purchases of our bonds. 
 
Finally, the timing of the award from the London-seated Miran and Bina Bawi oil and gas assets arbitration is not 
certain, but is expected before the end of 2024." 
 
FINANCIAL 
   -- Tawke cash generation has again more than covered all spend in the period, resulting in year-to-date free 
  cash flow of USD20 million (2023: USD60 million out flow) 
   -- Cash of USD273 million at 30 September 2024 (30 June 2024: USD370 million) 
   - USD109 million invested in August to purchase USD107 million nominal value of bonds through the bond 
    tender announced at half year results 
   - Bond debt of USD141 million at 30 September 2024 (30 June 2024: USD248 million) 
   - Net cash of USD132 million at 30 September 2024 
 
   -- Balance sheet further evolved at 31 October 2024 by call of USD75 million nominal value of bonds 
   - Cancellation of USD234 million nominal value of all bonds already held by the Company 
   - Cash of USD191 million and debt of USD66 million, net cash of USD125 million 
 
   -- We retain an overdue receivables balance of nominal USD107 million owed by the KRG. Although there has been 
  discussion on the mechanism for recovery of this balance, there is not yet a formal payment plan in place. We 
  expect any resolution to include offsetting balances owed to the KRG, which at the end of October amounted to 
  around USD50 million. This balance relates to unpaid amounts owed on the Tawke, Taq Taq, Sarta and Qara Dagh PSCs and 
  arises from past year and current year items such as Oil field Police Force, financial obligations under our PSCs 
  and positive working capital movements. 
TAWKE PSC ACTIVITY AND PRODUCTION 
   -- Q3 Gross production of 84,210 bopd (Q2 2024: 79,780 bopd) sold domestically at average USD37/bbl (Q2 2024: 
  USD36/bbl), with a small increase in YTD production since the half year to 80,120 bopd (H1 2024: 78,050 bopd) 
   -- Q3 Working interest production of 21,050 bopd in Q3 2024 (19,950 bopd in Q2 2024) 
   -- Three wells that were drilled last year, but not completed due to the closure of the Iraq-Türkiye 
  Pipeline, were brought onstream midyear to meet demand from local traders, contributing 7,800 bopd to gross 
  production in the quarter 
   -- Further production was added from well interventions work. 
   -- In association with our industry peers, we continue dialogue towards the resumption of exports on a basis 
  that properly rewards IOCs that have chosen to invest in Kurdistan in accordance with their contractual terms 
 
 
ESG 
   -- Emissions reduction: in partnership with DNO, Genel continues to be part of the first Associated Gas 
  Injection (AGI) project in the KRI. The project has successfully captured over 1.2 million tonnes of CO2e from the 
  Peshkabir field 
   -- CDP Climate score of B for two consecutive years 
   -- Genel's Mobile Medical Clinic project in Somaliland launched phase two of the project in July, with a 
  further 15,000 cases treated to take the total cases treated to nearly 30,000 
   -- Following the Annual General Meeting on 9 May 2024 the Company announced that resolutions 2, 3, 4, 6 and 
  12 had over 20% of votes cast against them. The Company reached out to major shareholders to understand their 
  views. The Company does not believe it is necessary or appropriate to take any additional action 
 
OUTLOOK 
   -- With domestic sales expected to continue at similar levels, the Company expects net cash at the end of 
  the year to be around USD125 million 
   -- The Company continues to seek progression towards building a business with a strong balance sheet that 
  delivers resilient, reliable, repeatable and diversified cash flows that supports a dividend programme 
   -- We continue to work towards the restart of exports to access international pricing, and the acquisition 
  of new production assets to add reserves and diversify our cash generation 
   -- The timing of the award relating to the London-seated international arbitration regarding Genel's 
  counterclaim for substantial compensation from the KRG following the termination of the Miran and Bina Bawi PSCs is 
  not certain, but it is expected by the end of the year. 
 
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: Luke Clements, CFO  [phone] 
Vigo Consulting: Patrick d'Ancona  [phone] 

Genel Energy is a socially responsible oil producer listed on the main market of the London Stock Exchange (LSE: GENL, LEI: 549300IVCJDWC3LR8F94). Genel has low-cost and low-carbon production from the Kurdistan Region of Iraq, and continues to seek opportunities to add new resilient and cash-generative assets to its portfolio. For further information, please refer to www.genelenergy.com

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ISIN:      JE00B55Q3P39, NO0010894330 
Category Code: UPD 
TIDM:      GENL 
LEI Code:    549300IVCJDWC3LR8F94 
OAM Categories: 2.2. Inside information 
Sequence No.:  358396 
EQS News ID:  2027421 
 
End of Announcement EQS News Service 
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November 12, 2024 02:00 ET (07:00 GMT)