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Genel Energy PLC: Half-Year Results -3-

DJ Genel Energy PLC: Half-Year Results

Genel Energy PLC (GENL) 
Genel Energy PLC: Half-Year Results 
 
06-Aug-2019 / 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. 
 
         6 August 2019 
 
         Genel Energy plc 
 
         Unaudited results for the period ended 30 June 2019 
 
 Genel Energy plc ('Genel' or 'the Company') announces its unaudited results 
         for the six months ended 30 June 2019. 
 
         Bill Higgs, Chief Executive of Genel, said: 
 
   "These results demonstrate the continued success of our strategy - highly 
         cash generative production underpins capital investment in growth 
      opportunities that deliver rapid returns and enables a compelling cash 
         return to shareholders through our dividend. 
 
Our production grew 17% in H1 2019, and pro forma free cash flow rose to $76 
   million. This cash generation, and our strong balance sheet, allows us to 
  both increase investment in growing the business as well as returning cash 
      to shareholders via dividends. Accordingly, we have today announced an 
         interim dividend of $14 million. 
 
     Disciplined capital allocation remains at the core of our business. The 
        speed with which our investments pay back means that cash is quickly 
recycled to create most value for shareholders. The cash that our production 
  generates funds work now underway at Sarta and Qara Dagh, with plenty left 
      over to both pay a dividend and seek new opportunities, as we progress 
         Genel's growth strategy." 
 
Results summary ($ million unless stated) 
 
                                         H1     H1      FY 
 
                                       2019   2018    2018 
 
Production (bopd, working interest)  37,400 32,100  33,700 
Revenue                               194.3  161.1   355.1 
EBITDAX 1                             167.3  137.4   304.1 
Depreciation and amortisation        (74.8) (63.6) (136.2) 
Exploration (expense) / credit        (0.6)  (0.5)     1.5 
Impairment of intangible assets           -      - (424.0) 
Operating profit / (loss)              91.9   73.3 (254.6) 
Cash flow from operating activities   142.3  125.1   299.2 
Capital expenditure                    72.2   34.1    95.5 
Free cash flow2                        56.7   70.1   164.2 
Pro forma free cash flow2              75.6   70.1   164.2 
Dividend payments                      27.4      -       - 
Cash3                                 353.3  233.2   334.3 
Total debt                            300.0  300.0   300.0 
Net cash (debt)4                       55.8 (63.8)    37.0 
Basic EPS (¢ per share)                27.2   21.3 (101.6) 
Underlying EPS (¢ per share)1          59.9   49.2   109.0 
 
1) EBITDAX is operating profit / (loss) adjusted for the add back of 
depreciation and amortisation ($74.8 million) and exploration expense 
($0.6 million). Underlying EPS is EBITDAX divided by the weighted average 
number of ordinary shares 
 
2) Free cash flow is set out on page 7 and does not include $18.9 million, 
invoiced for Tawke production and due in June 2019 and received late on 9 
July 2019, with the delay due to a change in the Operator's banking 
arrangements. Pro forma free cash flow of $75.6 million includes this 
payment. 
 
3) Cash reported at 30 June 2019 excludes $10 million of restricted cash 
and the $18.9 million noted above 
 
4) Reported IFRS debt less cash 
 
Highlights 
 
· Working interest production averaged 37,400 bopd in H1 2019 (H1 2018: 
32,100 bopd), an increase of 17% compared to H1 2018 
 
· 8 wells completed in H1 2019, resulting in year-on-year production 
increases at both the Tawke and Taq Taq PSCs 
 
· Free cash generation of $57 million in H1 2019 (H1 2018: $70 million), 
which increases to $76 million when including the post period receipt of 
$19 million, with annual free cash flow yield of c.20% of current market 
capitalisation 
 
· Net cash of $56 million at 30 June 2019 (net debt of $64 million at 30 
June 2018) 
 
· Following the receipt of all payments relating to April 2019, Genel 
had $390 million of cash as of 5 August 2019, a net cash position of $92 
million 
 
· Addition of Sarta and Qara Dagh to the portfolio in January 2019 
provides near-term production and material future growth potential 
 
· Maiden dividend distribution of 10¢ per share paid on 24 June 2019 
 
· Interim dividend of 5¢ per share confirmed 
 
· Genel retains an open mandate for a share buy-back programme of up to 
$10 million, and will continue to review purchasing opportunities 
 
Outlook 
 
· Net production guidance in 2019 maintained at close to Q4 2018 levels of 
36,900 bopd, an increase of c.10% year-on-year 
 
· Drilling programme ongoing, with over 10 wells set to be completed by 
early 2020 
 
· Active discussions with the Kurdistan Regional Government ('KRG') 
regarding Bina Bawi are ongoing, focused on agreeing the detailed 
commercial terms for the integrated Phase 1 oil and gas development and 
approval of the associated field development plans 
 
· Work continuing at Sarta to prepare for production by the middle of 2020 
 
· QD-2 well location agreed at Qara Dagh, well pad civil engineering work 
set to begin 
 
· Farm-out process relating to Somaliland acreage to begin in late Q3 2019 
 
· Genel expects to generate material free cash flow in H2 2019, even while 
investment in growth increases 
 
· 2019 capital expenditure is expected to be towards the top end of the 
$150-170 million guidance range 
 
· Searches for a new Chairman and Chief Operating Officer are progressing 
 
· The Company continues to actively pursue growth and is assessing 
opportunities to make value-accretive additions to the portfolio 
 
         For further information, please contact: 
 
Genel Energy                          +44 20 7659 5100 
 
Andrew Benbow, Head of Communications 
 
Vigo Communications                   +44 20 7390 0230 
 
Patrick d'Ancona 
 
  There will be a presentation for analysts and investors today at 0930 BST, 
         with an associated webcast available on the Company's website, 
         www.genelenergy.com [1]. 
 
This announcement includes inside information. 
 
         Disclaimer 
 
      This announcement contains certain forward-looking statements that are 
 subject to the usual risk factors and uncertainties associated with the oil 
  & gas exploration and production business. Whilst the Company believes the 
  expectations reflected herein to be reasonable in light of the information 
        available to them at this time, the actual outcome may be materially 
       different owing to factors beyond the Company's control or within the 
    Company's control where, for example, the Company decides on a change of 
      plan or strategy. Accordingly no reliance may be placed on the figures 
     contained in such forward looking statements. The information contained 
         herein has not been audited and may be subject to further review. 
 
CEO STATEMENT 
 
      Genel aims to be a world-class creator of shareholder value by growing 
    high-margin production through rapid development and an efficient use of 
    capital, recycling cash flows into an expanding asset portfolio with the 
   potential to deliver significant growth, while generating sufficient cash 
throughout the investment cycle to fund a material and progressive dividend. 
 
GENERATING CASH WHILE INVESTING IN GROWTH 
 
   The oil we produce is good quality, low-cost, and highly cash generative, 
         with a development model focused on optimising cost and minimising 
development risk. This makes our business highly cash generative. Setting us 
 apart from the majority of our peers both within the region and outside, we 
   have been able to materially increase production without significant cash 
    out - in fact our asset portfolio generates material free cash flow even 
         while increasing production. 
 
This is best illustrated by the Tawke PSC, where production at Peshkabir has 
    increased from 12,000 bopd at the end of 2017 to over 55,000 bopd. While 
doing so Peshkabir continues to generate material free cash flow, adding $32 
million in the first half of 2019. Overall, capital expenditure in the first 
  half of $72 million has nearly doubled from last year, but still free cash 
         flow increased year-on-year. 
 
  Our low-cost production also makes us resilient to oil price fluctuations, 
    and we generate cash at a low oil price. As an illustration, even if the 
 Brent oil price averaged $36/bbl in 2019 we would still generate sufficient 
         cash to pay our dividend of $40 million from free cash flow. 
 
     The level and speed of our cash generation allows us the optionality to 
         recycle capital into those areas that promise to create the maximum 
  shareholder value. The priority remains investing in our current producing 
   assets to underpin this cash generation, and subsequently spending is now 
         set to ramp up at Sarta and Qara Dagh. 
 
       Commercial discussions continue on Bina Bawi, and we are increasingly 
     confident of making sufficient progress to enable work on the ground to 
    begin next year, with the potential for Bina Bawi oil to also add to our 
    production in 2020. And we will continue to generate free cash flow even 
         after making these investments in growth. 
 
         A MATERIAL AND PROGRESSIVE DIVIDEND 
 
  With our strong cash generation, even while investing in growth and adding 
assets to the portfolio, paying a dividend was the ultimate intended outcome 
         of our strategy. With our portfolio having the potential to double 
         production in coming years, and an M&A strategy focused on boosting 
   near-term cash generation, we see the baseline annual distribution of $40 

(MORE TO FOLLOW) Dow Jones Newswires

August 06, 2019 02:00 ET (06:00 GMT)

DJ Genel Energy PLC: Half-Year Results -2-

million as having the potential to grow on an annual basis. 
 
FOCUS ON ESG 
 
 ESG continues to be a key focus of Genel, and we are committed to acting as 
         a socially responsible contributor to the global energy mix. On the 
  environmental side, we aim to minimise GHG emissions per barrel across the 
   portfolio. Working with DNO at Peshkabir, the reinjection of gas into the 
Tawke field will eliminate routine flaring while having the added bonus of a 
positive return on investment - another financial benefit that sets us apart 
         from some of our peers. 
 
   As work progresses on Sarta, we will keep emissions to a minimum ahead of 
     initiating a flares out programme in due course, and further our social 
   investment work. Previously this work has centred on the area surrounding 
    Taq Taq through work focusing on the environment, health, education, and 
 economic empowerment, and initiatives are set to get under way around Sarta 
       and Qara Dagh. Genel will continue to strive to ensure that the local 
         community benefits from the work we do in their community. 
 
OPERATING REVIEW 
 
PRODUCING ASSETS 
 
  Working interest production in H1 2019 averaged 37,400 bopd, a rise of 17% 
         year-on-year. 
 
(by PSC   Export via   Refinery     Total      Total   Genel net 
in bopd)   pipeline      sales      sales    productio productio 
                                                n1         n 
    Tawke   127,070        -       127,070    126,650   31,660 
    (inc. 
Peshkabir 
        ) 
  Taq Taq   13,135         -        13,135    13,150     5,785 
    Total   140,205        -       140,205    139,800   37,445 
 
1 Difference between production and sales relates to inventory movements 
 
    All sales during the period were invoiced at the wellhead export netback 
         price. 
 
         Tawke PSC (25% working interest) 
 
     Production from the Tawke PSC averaged 126,650 bopd, an increase of 20% 
 year-on-year and 12% on the FY 2018 figure. This performance was the result 
         of the success of Peshkabir, where production averaged 54,950 bopd. 
       Production from the Tawke PSC continues to be highly cash-generative, 
         contributing $87 million in free cash flow at an asset level. 
 
      The underlying well stock at the Tawke field has produced in line with 
     expectations. Drilling is required to offset natural field decline, and 
      three wells came onto production in the period. T-52 came on stream in 
    mid-February, and T-54 in April, and the two wells have averaged c.3,500 
       bopd in combined additional production. The T-55 well began adding to 
         production in June and will be followed by a further four confirmed 
  cretaceous producers, while the T-57 well will test the Jurassic potential 
at Tawke. The field partners will also drill a programme of shallower Jeribe 
         wells. 
 
  Peshkabir continues to perform well, with success at both the P-9 and P-10 
      wells helping increase production. Surface facility work has also been 
 completed, and production from the P-2 and P-3 wells is now flowing through 
 the 50,000 bopd central processing facility. Trucking activity is set to be 
       eliminated following the commissioning of the 60,000 bopd pipeline to 
         Fishkabour, helping to reduce costs from an already low base. 
 
  The P-11 well is nearing completion, and three more wells are scheduled to 
spud in 2019. Work on the enhanced oil recovery project wherein gas is piped 
    from Peshkabir to be injected into the Tawke reservoir, both eliminating 
flaring and increasing recovery rates, is now underway and is expected to be 
         commissioned in H1 2020. 
 
         Taq Taq (44% working interest, joint operator) 
 
 Drilling on the flanks at Taq Taq continued to bear fruit in H1, and helped 
   production at the field average 13,150 bopd in H1 2019, an increase of 3% 
      year-on-year and 6% on the FY 2018 figure. The TT-32 well completed in 
     January on the northern flank of the field with an initial flow rate of 
   c.3,000 bopd. This was followed by the TT-20z well, on the western flank, 
  which entered production at a rate of 2,000 bopd. Both wells have recently 
 seen a decline in production and are now in line with Genel's expectations, 
         having been choked back to control water production. 
 
   The TT-33 well, on the southern flank, has tested water from three zones, 
 and has not flowed oil at any significant rate, demonstrating that the free 
        water level on the southern flank is higher than to the north. Going 
forward, the field partners will continue to target the flanks of the field, 
     with a focus on horizontal wells to delay water production and maximise 
recovery. Wells continue to provide a positive return on investment, and Taq 
     Taq generated $8.4 million of free cash flow in H1 2019. Two horizontal 
 wells are scheduled to be drilled on the northern flank of the field in the 
second half of the year, and the TT-19x well is currently underway. Drilling 
      in the second half of the year aims to deliver year-on-year production 
         growth. 
 
         PRE-PRODUCTION ASSETS 
 
         Sarta (30% working interest) 
 
    To date, four exploration wells at Sarta have discovered hydrocarbons at 
multiple intervals, from the Tertiary down to the Triassic. This contributes 
to the Company's unrisked P50 gross resource estimate of c.500 MMbbls. Phase 
         1A represents a low-cost development of the Jurasssic Mus-Adaiyah 
reservoirs. This phase is designed to recover 2P gross reserves of 34 MMbbls 
    through two existing wells (Sarta-2 and Sarta-3) both of which flowed at 
  c.7,500 bopd on test, and one additional development well to be drilled in 
  2021. Insights from production behaviour during this first phase, combined 
      with an appraisal and development well campaign planned for 2021, will 
 provide the technical foundation for prudent expansion investment decisions 
  aimed at maturing Sarta into a low cost, long-life, cash generative asset. 
 
   Construction work for the Phase 1A development is already underway. Civil 
      engineering work commenced in May ahead of mobilising the facility and 
  flowline contractors to the field. Production remains on track to begin in 
         the middle of 2020. 
 
         Qara Dagh (40% working interest, operator) 
 
    The Qara Dagh prospect was first tested by the vertical exploration well 
  QD-1 in 2011. The reservoir was encountered much deeper than prognosed and 
        operational issues meant the well was significantly overbalance when 
 drilling the reservoir, in so doing damaging the reservoirs ability to flow 
     hydrocarbons. Despite these setbacks QD-1 still tested a light oil from 
         Cretaceous fractured carbonates. 
 
    Re-evaluation of the structural model post QD-1, based on new 2D seismic 
         combined with fieldwork, indicates that the well was drilled on the 
south-eastern flank of the prospect. The location for the second exploration 
  well, QD-2, has been chosen to test the structural crest c.10 km to the NW 
   of where QD-1 flowed oil to surface. QD-2 will be drilled with a deviated 
   trajectory through the same reservoir tested by QD-1 in order to maximise 
     fracture intersection. Managed pressure drilling is being considered to 
   minimise reservoir damage. Genel has undertaken a baseline Environmental, 
    Social and Health Impact Assessment study and will commence construction 
 work on the well pad and associated camp shortly. The QD-2 well is on track 
         to spud in H1 2020. 
 
Bina Bawi and Miran (100% working interest, operator) 
 
     Negotiations between Genel and the KRG are ongoing regarding commercial 
         terms for a staged and integrated oil and gas development. 
 
     In line with Genel's strategy, the development of Bina Bawi (and in the 
  future, Miran) is set to be done in phases. Through disciplined allocation 
       of capital, Genel is focused on aligning stakeholders and setting the 
         framework for an attractive and investable project. 
 
     Genel and the KRG are now aligned on a phase one upstream project scope 
   delivering a reduced c.250 MMscfd raw gas. The KRG and Genel will jointly 
  fund the midstream gas development required to process the raw gas, partly 
   making use of revenues from the accelerated development of Bina Bawi oil. 
 
 Discussions are ongoing, with regular meetings taking place between the KRG 
        and Genel. Genel has recently made a formal proposal consistent with 
 previously negotiated terms, balancing initial returns from the development 
         of oil with the medium-term requirement for funding the midstream 
         development. 
 
         Genel is seeking approval for this proposal and the Bina Bawi field 
         development plan in order to commence with the oil development and 
       commission a FEED study for the award of an Engineering, Procurement, 
   Construction, Installation & Commissioning ('EPCIC') contract relating to 
   the midstream development. The latter would take around 12 months, and be 
         funded via the Bina Bawi oil development. 
 
         African exploration 
 
Onshore Somaliland, interpretation of the 2018 2D seismic data together with 
 continued basin analysis has led to the maturation of a prospects and leads 
   inventory for the SL10B13 block (Genel 75% working interest and operator) 
         which confirms the longstanding view that the block has significant 
      hydrocarbon potential. A number of potentially high impact exploration 
    targets have been identified within play types directly analogous to the 
         prolific Yemeni rift basins. 
 
  Once these prospects and leads have been quantified in terms of volumetric 
        potential and associated geological risk the Company will initiate a 
farm-out campaign, commencing late Q3 2019. This remains consistent with the 
    Company's capital allocation approach, as long-term reserves replacement 

(MORE TO FOLLOW) Dow Jones Newswires

August 06, 2019 02:00 ET (06:00 GMT)

from legacy African exploration assets is targeted through the lowest 
possible capital outlay. On the Odewayne block further seismic processing is 
         continuing in order to complete the Company's understanding of the 
  prospectivity of the block. In both cases the minimum work commitments and 
        associated expenditure for the current licence periods has been met. 
 
      On the Sidi Moussa block offshore Morocco (Genel 75% working interest, 
      operator), processing of the multi-azimuth broadband 3D seismic survey 
 acquired in 2018 over the prospective portions of the block continues. This 
  completes the work obligations associated with the current licence period. 
     Once completed, the Company plans to initiate a farm-out campaign in Q1 
     2020, aimed at bringing a partner onto the licence prior to considering 
   further commitments. The Company is currently engaged in discussions with 
       the Moroccan Government with respect to the requisite licence time to 
         complete this forward plan. 
 
FINANCIAL REVIEW 
 
         For 2019 the financial priorities of the Company are the following: 
 
· Continued focus on capital allocation, with prioritisation of highest 
value investment in assets with ongoing or near-term cash and value 
generation 
 
· Investment in lower risk development of opportunities with high 
potential. This currently includes the delivery of first oil at Sarta and 
drilling a well on a discovered resource at Qara Dagh. Investment at Bina 
Bawi will be added should appropriate commercial terms and conditions be 
reached 
 
· Continued focus on acquiring assets with the potential to add 
significant value to the Company through near to mid-term cash generation. 
The objective is to establish a portfolio of assets that strengthens the 
portfolio of Sarta, Qara Dagh and Bina Bawi oil in replacing and 
increasing the Company's cash generation when the override royalty 
agreement ends in Q3 2022, and also to augment gas development to grow 
cash generation thereafter. Overall putting together a funnel that 
supports continuing material free cash flow well into the next decade and 
providing the basis for a progressive dividend 
 
· Continued focus on the capital structure of the Company 
 
· Genel is committed to distributing a minimum of $40 million in 
dividends each year. Given the forecast free cash flow of the Company, 
this figure is expected to grow 
 
  In the first half of the year, successful delivery of these priorities has 
 produced positive results. Pro forma free cash flow of $75.6 million, which 
 includes post period receipt of $18.9 million, represents an increase of 8% 
 on the prior year, despite the $5/bbl fall in Brent oil price and increased 
         investment of $30 million in production and pre-production assets: 
 
(all figures $ million)              H1 2019 H1 2018 FY 2018 
Operating cash flow and other         142.3   125.1   299.2 
Producing asset cost recovered capex (48.7)  (29.5)  (65.3) 
Development capex                     (9.4)     -       - 
Exploration and appraisal capex      (12.2)  (10.5)  (39.7) 
Interest and other                   (15.3)  (15.0)  (30.0) 
Free cash flow                        56.7    70.1    164.2 
Cash received post period end         18.9      -       - 
Pro forma free cash flow              75.6    70.1    164.2 
 
       This increase in capital expenditure principally relates to increased 
         investment at Peshkabir and Sarta. 
 
  Peshkabir is our priority for capital allocation. Due to well productivity 
 and positive commercial terms, capital investment is recovered within three 
   months. Investment in this asset has resulted in the material increase in 
  production, currently c.55,000 bopd, increased central processing capacity 
to 55,000 bopd and optimisation of costs by building pipeline transportation 
  to replace trucking, which reduces transportation costs by 50¢ per barrel. 
 
 Sarta represents significant growth potential, with current work focused on 
         building towards first oil in the middle of 2020. 
 
Other spend in the year has been focused on preparation for drilling at Qara 
      Dagh, and drilling production wells and water disposal wells at Tawke, 
    Peshkabir and Taq Taq. We now plan to drill two additional wells at both 
  Peshkabir and Taq Taq, with capital expenditure expected to be towards the 
         top end of the previously provided range of $150-170 million. 
 
     In January we indicated our expectation of free cash generation of $100 
million at $45/bbl. Since then we have added the Sarta and Qara Dagh assets. 
        With the additional capex on these assets estimated to be around $50 
     million, we now expect material free cash generation for the full year, 
         which excludes dividend payments, to be in excess of $100 million. 
 
  We will continue to be disciplined in our capital allocation and invest in 
areas where we can deliver value. This applies both to allocation of capital 
       to the existing portfolio and also to assets or opportunities that we 
         acquire. 
 
Rigorous cost management is maintained across all operations, while ensuring 
    spend is sufficient to take advantage of the growth opportunities in the 
         portfolio. 
 
         A summary of the financial results for the year is provided below. 
 
         Financial results for the half-year 
 
         Income statement 
 
   Working interest production of 37,400 bopd was higher than the first half 
last year (H1 2018: 32,100 bopd), which principally benefited from more than 
         doubled Peshkabir production. 
 
    Revenue has increased by 21% compared to H1 2018, from $161.1 million to 
 $194.3 million, with the decrease in the average Brent oil price of $66/bbl 
(H1 2018: $71/bbl) being offset by the improvement in production. Production 
costs of $18.1 million (H1 2018: $12.1 million) were higher due to increased 
production, with opex per barrel at c.$2.7/bbl compared to c.$2.1/bbl in the 
     first half this year. The increase has been caused by trucking costs at 
 Peshkabir - we expect trucking to be replaced by the pipeline in the second 
         half of the year. 
 
General and administration costs were $9.5 million (H1 2018: $11.8 million), 
of which cash costs were $7.2 million (H1 2018: $8.6 million). The reduction 
       from the prior period is a result of higher capitalisation as capital 
         activity has increased, principally at Sarta and Qara Dagh. 
 
      The increase in revenue resulted in a net increase in EBITDAX of $29.9 
         million compared to last period. 
 
(all figures $ million)         H1 2019 H1 2018 FY 2018 
Revenue                          194.3   161.1   355.1 
Operating costs                 (18.1)  (12.1)  (28.7) 
G&A (excl. depreciation)         (8.9)  (11.6)  (22.3) 
EBITDAX                          167.3   137.4   304.1 
Depreciation and amortisation   (74.8)  (63.6)  (136.2) 
Exploration (expense) / credit   (0.6)   (0.5)    1.5 
Impairment of intangible assets    -       -    (424.0) 
Operating profit / (loss)        91.9    73.3   (254.6) 
 
  EBITDAX is presented in order for the users of the financial statements to 
 understand the cash profitability of the Company, which excludes the impact 
  of costs attributable to exploration activity, which tend to be one-off in 
   nature, and the non-cash costs relating to depreciation, amortisation and 
impairments. EBITDAX is used as the basis for underlying earnings per share, 
         for the reasons provided above. 
 
 Bond interest expense of $15.0 million was in line with prior year. Finance 
   income of $2.4 million (H1 2018: $2.1 million) was bank interest, finance 
expense of $2.9 million (H1 2018: $1.1 million) included a non-cash discount 
   unwind expense on liabilities, and fees related to the bondholder waiver. 
         There is no taxation on operational profits: under the terms of the 
 Kurdistan Region of Iraq ('KRI') PSC's, corporate income tax due is paid on 
      behalf of the Company by the KRG from the KRG's own share of revenues, 
resulting in no corporate income tax payment required or expected to be made 
   by the Company. Tax presented in the income statement of $0.4 million (H1 
   2018: nil) was related to taxation of the service companies. Depreciation 
  and amortisation of oil assets has increased overall by $10.8 million as a 
         result of higher production. 
 
         Capital expenditure 
 
  Capital expenditure is the aggregation of additions to property, plant and 
       equipment ($64.6 million) and intangible assets ($7.6 million) and is 
      reported to provide investors with an understanding of the quantum and 
nature of investment that is being made in the business. Capital expenditure 
for the period was $72.2 million, predominantly focused on production assets 
         and the Sarta PSC ($11.3m): 
 
(all figures $ million)               H1 2019 H1 2018 FY 2018 
Cost recovered production capex        53.3    27.8    70.4 
Pre-production capex - oil             11.3      -       - 
Pre-production capex - gas              5.6     5.7    12.0 
Other exploration and appraisal capex   2.0     0.6    13.1 
Capital expenditure                    72.2    34.1    95.5 
 
         Cash flow, cash, net cash and debt 
 
Free cash flow is presented in order to show the free cash generated that is 
 available for the Board to invest in the business. The measure provides the 
   reader a better understanding of the underlying business cash flows. Free 
     cash flow was $56.7m, with an overall increase in cash of $19.0m in the 
         period compared to an increase of $71.2 million last period: 
 
(all figures $ million)              H1 2019 H1 2018 FY 2018 
Free cash flow                        56.7    70.1    164.2 
Dividend paid                        (29.0)     -       - 
Purchase of shares                    (8.7)     -       - 
Release of restricted cash and other    -      1.1     8.1 

(MORE TO FOLLOW) Dow Jones Newswires

August 06, 2019 02:00 ET (06:00 GMT)

© 2019 Dow Jones News
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Die Finanzwelt ist im Umbruch! Nach Jahren der Dominanz erschüttert Donald Trumps erratische Wirtschaftspolitik das Fundament des amerikanischen Kapitalismus. Handelskriege, Rekordzölle und politische Isolation haben eine Kapitalflucht historischen Ausmaßes ausgelöst.

Milliarden strömen aus den USA – und suchen neue, lukrative Ziele. Und genau hier kommt China ins Spiel. Trotz aller Spannungen wächst die chinesische Wirtschaft dynamisch weiter, Innovation und Digitalisierung treiben die Märkte an.

Im kostenlosen Spezialreport stellen wir Ihnen 5 Aktien aus China vor, die vom US-Niedergang profitieren und das Potenzial haben, den Markt regelrecht zu überflügeln. Wer jetzt klug investiert, sichert sich den Zugang zu den neuen Wachstums-Champions von morgen.

Holen Sie sich den neuesten Report! Verpassen Sie nicht, welche 5 Aktien die Konkurrenz aus den USA outperformen dürften, und laden Sie sich das Gratis-PDF jetzt kostenlos herunter.

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