Genel Energy PLC

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 spending and focus on profitability, both delivering and building on the significant value upside that is already in the business. We have repurchased and cancelled $182 million of our own bonds, reducing our debt from $248 million to $66 million at the end of October. Our balance sheet position remains strong, with net cash at the end of October of $125 million and cash of $191 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.” Read the full announcement here: https://lnkd.in/eAt-89TP

Today, on 10th November, the 86th anniversary of his passing, we honor the memory of Mustafa Kemal ATATURK, the founding father of the Republic of Türkiye. 

Mobile Medical Clinic Phase 2 Weekly Report 2024. The eighteenth week of the Genel Energy Medical Mobile Clinic Project has been completed. Since the beginning of the phase two project, 15,117 patients have been treated. The mobile medical team served 836 new patients in 15 different villages in week eighteen.

Happy Republic Day to all Turkiye! May this day bring renewed hope, pride, and peace.

Genel Energy's Mobile Medical Clinic in Somaliland has made significant strides since the launch of its phase two project, treating a total of 10,403 patients. In just the last week, the mobile medical team reached 847 new patients across 15 different villages, providing much-needed healthcare services to remote communities. Genel Energy is proud to support this life-changing initiative, which brings essential medical care to underserved areas, improving the health and well-being of thousands of people.

We’re excited to join the Pareto Conference in Oslo on the 11th and 12th September! Connect with Luke Clements, CFO, and Andrew Freear, Head of New Business and Commercial, to learn more about Genel Energy and our strategy. #ParetoConference #Energy

We recently announced the appointment of Sir Dominick Chilcott as an Independent Non-Executive Director, with effect from 1 September 2024.   Sir Dominick Chilcott brings a wealth of expertise from his distinguished career as a diplomat for over four decades at the UK’s Foreign and Commonwealth Office. Sir Dominick most recently served as the British Ambassador to Türkiye from 2018 to 2022. His diplomatic tenure included roles as the Ambassador to Ireland (2012-2016), briefly as the Ambassador to Iran (2011), as Deputy Head of Mission at the British Embassy in Washington (2008-2011) and as Britain’s High Commissioner to Sri Lanka (2006-2007).   David McManus, Chair of Genel, said: “We are delighted to welcome Sir Dominick to the Board. Sir Dominick will bring further insight and perspective to the Board as we aim to fulfil our strategic objectives and create shareholder value while acting as a socially responsible contributor to the global energy mix.”

Genel has today announced half yearly results for the period ended 30 June 2024. https://lnkd.in/e9vsPHRN Paul Weir, Chief Executive of Genel, said: “We have continued to progress our priority workstreams, each of which can be transformational for the business, whilst maintaining our balance sheet strength by strict discipline on spend and capital allocation.   Cash generative production continues from our flagship Tawke licence, where domestic sales demand has shown resilient consistency in the past 6 months and some recent price improvement. We have efficiently closed down our unprofitable operated licences in the Kurdistan Region of Iraq (‘KRI’) and minimised our in-country footprint, while keeping people safe and continuing to act as a trusted partner to all our stakeholders. Significant cost reductions have been made across all aspects of the business wherever appropriate, and our organisational spend in the second half of the year will reduce further. The business has the potential to deliver significant shareholder value, well above the current market value of the business. The Tawke PSC is a world class asset with a long life ahead of it, and when exports restart can deliver over $100 million of entitlement free cash flow per annum to Genel, more than double the current level.   In association with our industry peers and other stakeholders, we continue to lobby regional and federal governments to break the current political impasse so that international exports of Kurdistan oil can resume in a manner that properly rewards IOCs that have chosen to invest in Kurdistan. While progress is sporadic, recent participation by stakeholders in tripartite talks demonstrate that negotiations continue and support the view that a negotiated solution can be found.   We continue to prioritise the acquisition of new assets to materially diversify our cash generation and reinvigorate our organic portfolio. Adding new assets to achieve geographical diversification is a strategic objective, but we will only buy an asset on terms that are clearly beneficial for our shareholders.   Regarding the London-seated Miran and Bina Bawi oil and gas assets arbitration, the written and evidentiary stages have now concluded. The timing of the award is not certain, but is expected before the end of 2024. Our view on the merits of our case remains unchanged since the arbitration process was initiated by the KRG in 2021.”

Genel will announce half-year results for 2024 tomorrow, Tuesday 6 August 2024. Join us tomorrow via the Investor Meet Company platform at 10am for a short presentation and Q&A in which investors can ask any questions they may have. Click below to register.