logo-loader

GKP and Genel Energy shares trade positively as investor fears ease

Published: 11:18 25 Oct 2017 BST

Kurdish people celebrate after disputed independence vote
A Kurdistan independence referendum preceded the conflict in Northern Iraq

Oil politics could be a force for peace in Northern Iraq, that’s the view of WH Ireland analyst Brendan Long, who sees the potential that Gulf Keystone Petroleum PLC (LON:GKP) and Genel Energy PLC (LON:GENL) could now see lower risks.

In a note, the analyst notes the latest developments in Iraq where the Kurdistan Regional Government has issued a statement calling for de-escalation in the conflict following an independence referendum that was not recognised by Baghdad.

READ: GKP says Shaikan field continues safely as it seeks to allay concerns over operations in Iraq

The KRG statement said: “The fighting between the two sides will not produce a victory for any, it will take the country to total destruction.”

Moreover, the KRG proposed an immediate ceasefire, a ‘freezing’ of the results of the referendum, and to start an open dialogue regarding the Iraqi constitution.

London-listed, Kurdistan-based oil stocks, Genel and GKP were both trading higher on Wednesday - up 3.5% and 1.3%, and changing hands at 117p and 94.25p respectively.

WH Ireland analyst Brendan Long said: “Oil politics are creating tremendous pressures for peace in a region where otherwise the geopolitical context has all the seeds of war.

READ: Genel Energy details US$50mn gross oil payments from Kurdistan

“Although early days, macro oil supply risks are abating and a more benign political backdrop for oil companies operating in the region (listed in Europe: Genel;  GulfKeystone; DNO) is now more likely than not to emerge as Iraq is likely to take the peace offering that would allow it to produce more oil in the Kirkuk region.”

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

1 hour, 50 minutes ago