Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors it has a strong balance sheet as it gave a trading update following the close of 2022, highlighting some US$228mln of net cash (under IFRS rules).
The oil firm reported fourth-quarter production of 29,600 barrels per day (bopd), taking the average full-year production rate to 30,150 bopd. Oil sales prices were up, averaging US$101 per barrel through 2022 versus US$71 in 2021.
Genel said it received some US$473mln of cash payments from the Kurdistan authorities during the year, and, it spent some US$140mln on capex - slightly less than expected due to deferrals at the Taq Taq field.
Free cash flow for the year totalled US$233mln, and the company paid out US$50mln of dividends which equated to 18 cents per share.
Looking to 2023, the company has set its production guidance at 27,000 to 29,000 bopd and expects to see operating expenses at a similar level. Capex is anticipated at around US$90mln.
Genel added that it continues to screen for opportunities to reinvest “in order to extend the line of sight on cash flows”.
Chief executive Paul Weir, in a statement, said: “Genel starts 2023 with a strong balance sheet … and a cash generative production business.
“Our focus is now the preservation of capital for the addition of new resilient and cash-generative assets to our production portfolio, with free cash generation in 2023 funding both our dividend programme and progress towards the drilling of our exploration well in Somaliland."
Weir added: “As we work to centre our business around the delivery of our material, sustainable, and progressive dividend programme, our capital allocation decisions are targeted towards delivering the profitability and cash generation required to support that programme in the long-term.”