Gulf Keystone Petroleum Limited (LSE:GKP) thas old investors it would pay them $15 million as an interim dividend.
The company, in an update ahead of today’s annual general meeting, reported gross average sales of Shaikan Field crude at approximately 38,700 barrels of oil per day (bopd) for 2024, with sales prices improving to around $28 per barrel.
Its financial position remains comparatively healthy, with a cash balance of $99 million as of June 20, 2024.
It noted that its share buyback programme is ongoing and has seen over $5 million of purchases completed to date.
“We have made significant progress as a business since [last year’s AGM] and successfully adapted to our new operating environment following the suspension of Kurdistan exports, safely transitioning our operations to local sales and sharply reducing capital expenditures and costs,” said chief executive Jon Harris.
“We have been able to generate meaningful free cash flow, enabling us to strengthen our balance sheet and subsequently return cash to shareholders this year through our recent share buyback programme of up to $10 million.”
GKP noted that, operationally, it is focusing on safety with 24-7 truck loading operations and has reported no Lost Time Incidents for over 520 days.
The company plans safety-critical upgrades and maintenance later this year, which are expected to impact gross sales temporarily.
The interim dividend of $15 million, equivalent to 6.832 US cents per common share, is expected to be paid on July 19, 2024, with a record date of July 5, 2024.
In London, GKP shares gained more than 9% in early deals to change hands at 154.73p.