Genel Energy PLC (LSE:GENL, OTC:GEGYY) chief executive Paul Weir, in a trading update, told investors the company had "reshaped the business to provide long-term resilience" amidst the challenges following the suspension of exports through the Iraq-Turkey pipeline in March last year.
The company today, ahead of its 2023 full-year results statement, said net production for the 12 months amounted to 12,410 barrels of oil per day, down from 30,150 bopd in 2022, due to the pipeline closure.
It reported some US$101 million of total proceeds from its operations, with export sales contributing US$61 million and domestic sales accounting for US$40 million – after the domestic sales began in the latter half of 2023.
Genel noted that its capital expenditure totalled US$71 million, which reflected a strategic reduction in activity. The company, meanwhile, said it experienced a free cash outflow of US$72 million.
“We have cut all non-essential activity and significantly reduced spend, while developing a new source of income through domestic sales,” Weir said.
“We have well over a hundred million dollars in net cash, and expect to be in a position where domestic proceeds, if sustained at levels seen in the fourth quarter of 2023, would mean that our income covers our ongoing costs from March onwards, once Sarta and the arbitration hearing workstreams are complete.
“We also continue to work hard to add new assets to increase and diversify our income streams.”
Weir added: “There is real potential in 2024 for significant improvement in cash generation and delivery of shareholder value from multiple catalysts – the resumption of exports and regular payments, clarity on the timing of the recovery of $107 million of receivables, delivery on our strategy to add new assets to diversify our production portfolio, and a successful arbitration result and subsequent collection.”
Genel’s full-year results are slated for release on 26 March 2024.