The continued decline of the Taq Taq oilfield remains a fundamental problem for Genel Energy PLC (LON:GENL), according to Jefferies, as the broker downgraded the oil firm on Wednesday.
Jefferies repeated an ‘underperform’ rating and reduced its target price to 58p, from 76p.
It comes after a disappointing set of announcements, a downgrade in reserves and financial results showing a sharp downturn in production.
Analyst Mark Wilson highlights that the Taq Taq problems may impede Genel’s growth plans.
“The continued decline in the Taq Taq field remains the fundamental driver of GENL's story in our view because it impacts the ability to truly monetise the "value upside" elements of Miran/Bina Bawi gas and/or KRG long term receivable,” Wilson said.