DJ Genel Energy PLC: Trading and operations update Q1 2025
Genel Energy PLC (GENL)
Genel Energy PLC: Trading and operations update Q1 2025
08-May-2025 / 07:00 GMT/BST
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8 May 2025
Genel Energy plc
Trading and operations update Q1 2025
Genel Energy plc ('Genel' or 'the Company') issues the following trading and operations update relating to Q1 2025,
ahead of the Company's Annual General Meeting, which is being held today.
Paul Weir, Chief Executive of Genel, said:
"In line with expectations, the Tawke PSC continues to deliver consistent, reliable production and generate significant
cash flow even at the discounted domestic sales prices. The operational performance delivered from the Tawke and
Peshkabir fields, together with the significant cost efficiency, continues to set these fields apart from others in the
region.
Our entry into Block 54 in Oman is expected to complete in the coming weeks, with first substantial work programme
activity commencing around the end of the year.
We continue to work towards diversifying our production, both through expansion of our footprint in Oman as well as the
purchase of new assets in other preferred jurisdictions. We addressed the maturity of our bond debt by calling the old
bond and issuing a new USD100 million bond, thereby increasing available cash and putting in place a capital structure
that can provide funding towards delivery on our strategic objectives, regardless of whatever uncertainties may face
the business at the macro-economic level."
KURDISTAN
-- Gross production of 82,081 bopd in Q1 2025 (Q4 2024: 74,140 bopd) from the Tawke licence where
performance continues to be robust and domestic sales demand reliable
- Working interest production of 20,520 bopd (Q4 2024: 18,540 bopd)
-- Q1 2025 sales price has been consistent with the previous quarter around USD35/bbl
-- Exit from the Sarta and Qara Dagh licences has now been approved by the KRG, in the form of
relinquishment and termination agreements with minimal residual potential liabilities
OMAN
-- As previously announced, we are delighted to have entered Oman through the award of an interest in Block
54
-- Royal Decree is expected in the coming weeks and we are working with OQEP, the operator, on planned
activity for the second half of the year
SOMALILAND
-- On SL10B13 in Somaliland, we continue to work towards achieving conditions that support drilling of the
highly prospective Toosan-1 exploration well
MOROCCO
-- We have informed ONHYM that we will not be extending beyond the Initial Period of the Lagzira licence to
the First Extension Period, and consequently will be abandoning the licence in June 2025
FINANCIAL
-- Net cash of USD135 million at 31 March 2025 (YE2024: USD131 million)
-- Q1 2025 free cash flow of USD5 million (Q4 2024: USD1 million free cash outflow)
- Ahead of guidance due to higher production and some timing differences on spend
- Tawke free cash flow expected to cover organisational costs this year
- No spend to date on Oman
-- Cash of USD201 million at 31 March 2025 (YE2024: USD196 million)
- In April the Company called USD66 million of bonds maturing October 2025 and issued a new USD100 million
bond maturing April 2030
-- Balances with KRG
- Both receivable and payables have reduced as a result of the exit from Sarta and Qara Dagh
- Gross reported nominal receivables of USD99 million, reduced from USD107 million at YE2024
- Payables of around USD40 million, reduced from around USD50m million at YE2024
- The arbitration costs award made by the Tribunal for amounts owed to the KRG by Genel Energy
Miran Bina Bawi Limited ("GEMBBL") is circa USD27 million, reduced from the circa USD36 million claimed by the
KRG
- GEMBBL has appealed this costs award to the High Court on the grounds that, because the KRG did
not provide any breakdown of the amounts claimed by reference to any items of work, the Arbitration
Tribunal was unable to assess the reasonableness and proportionality of the recoverable costs and
consequently did not have jurisdiction to make an award
OUTLOOK
-- Tawke free cash flow at current production and prices is expected to continue to cover organisational
costs, with net cash at year-end expected to be about the same as the start of the year
-- Following our entry into Oman, there will be some direct capital investment this year as we work towards
testing previously discovered resource
-- Talks between the Kurdistan Regional Government and Federal Government of Iraq and Ministry of Oil
regarding the Iraq-Türkiye Pipeline are ongoing, but no material progress has been made since March and the timing
of the resumption of exports remains uncertain
-ends-
For further information, please contact:
Genel Energy: Luke Clements, CFO +44 20 7659 5100
Vigo Consulting: Patrick d'Ancona +44 20 7390 0230
Genel Energy is a socially responsible oil producer listed on the main market of the London Stock Exchange (LSE: GENL, LEI: 549300IVCJDWC3LR8F94). For further information, please refer to www.genelenergy.com
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ISIN: JE00B55Q3P39, NO0010894330 Category Code: TST TIDM: GENL LEI Code: 549300IVCJDWC3LR8F94 OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 386892 EQS News ID: 2132558 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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