REG-Genel Energy PLC Genel Energy PLC: Trading and operations update

Genel EnergyAnnouncement

09/05/2024 07:15

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

   09-May-2024 / 07:00 GMT/BST

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   9 May 2024

    

                                Genel Energy plc

                         Trading and operations update

                                        

   Genel Energy plc ('Genel' or  'the Company') issues the following  trading
   and operations update relating to Q1  2024, ahead of the Company's  Annual
   General Meeting, which is being held today.

    

   Paul Weir, Chief Executive of Genel, said:

   “We have achieved balanced income and expenditure in the first quarter  of
   the year, which is ahead of  schedule. Local sales from the Tawke  licence
   have been robust to date, with  the sales price increasing marginally  and
   demand staying strong, and we continue to expect income to cover our spend
   over the course of the full  year. Local sales volumes going forward  will
   continue to be  dependent on  demand, the view  of the  field partners  on
   reservoir management, and whether investment  would be cost effective  and
   deliver value to shareholders.

    

   The business is in  a robust financial  position, with multiple  potential
   catalysts for the delivery of significant shareholder value ahead.”

    

   FINANCIAL

     • Cash of $372  million at 31  March 2023 ($363  million at 31  December
       2023)

          ◦ The positive improvement in cash is principally caused by
            temporary deferral of payables and other positive working capital
            movements
          ◦ Following the first of the $11 million bi-annual bond interest
            payments in April, cash at the end of April is $361 million
          ◦ We expect our costs to be covered by income for the remainder of
            the year

     • Net cash under IFRS of $128 million at 31 March 2024 ($120 million  at
       31 December 2023)

          ◦ Total debt of $248 million at 31 March 2024 ($248 million at 31
            December 2023)

    

   PRODUCTION AND OPERATIONS

     • Zero lost time incidents in 2024 to date, with four and a half million
       hours worked since the last incident
     • Gross production of 76,310 bopd in  Q1 2024 (65,770 bopd in Q4  2023),
       all from the Tawke licence, where local sales demand remains robust

          ◦ Net production of 19,080 bopd in Q1 2024 (16,440 bopd in Q4 2023)

     • Following negotiation  with local  buyers, the  sales price  from  the
       Tawke licence has been raised to the upper-USD 30s per barrel level

    

   ARBITRATION

     • The London-seated  international arbitration  process, which  includes
       Genel’s claim for substantial compensation from the KRG following  the
       termination of  the Miran  and  Bina Bawi  PSCs, is  ongoing.  Written
       closing submissions will now  be made next  week, subsequent to  which
       written reply submissions will be made in the first half of June.  The
       timing of the result is uncertain, but is expected by the end of 2024

    

   OUTLOOK

     • Genel continues to expect net cash  to remain well above $100  million
       throughout 2024
     • Talks between  stakeholders regarding  the Iraq-Türkiye  Pipeline  are
       ongoing, although  the timing  of the  resumption of  exports  remains
       uncertain

    

                                     -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). 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  1 www.genelenergy.com

    

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   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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   ISIN:          JE00B55Q3P39, NO0010894330
   Category Code: TST
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  320346
   EQS News ID:   1899141


    
   End of Announcement EQS News Service

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