viewGenel Energy PLC

Cash rolls in as production rises at Genel Energy

 "These results demonstrate the continued success of our strategy."

Genel Energy PLC - Cash rolls in as production rises at Genel Energy
Cash is building up at Genel

Genel Energy PLC (LON:GENL) expects production this year to rise by 10% after a strong performance over the first six months.

Net production averaged 37,400 barrels per day or 17% higher than a year ago, as both the Tawke and Taq Taq fields in Iraqi Kurdistan saw higher output.

Those extra barrels translated into cash generation of US$76mln including a post-period receipt, which has helped Genel switch to a net cash position of US$56mln from debts of US$64mln twelve months ago.

Since the half-year, the cash position has increased to US$92mln and Genel announced an interim dividend of 5c to underline its financial health.

There is also a share buy-back facility of up to US$10mln still open. 

For the full-year, production is tipped to average 36,900 barrels per day with a further 10 wells set to be completed by early 2020.

Another field, Sarta, is scheduled to come on stream by the middle of 2020 with well location work at Qara Dagh also set to get underway.

Bill Higgs, chief executive, said: "These results demonstrate the continued success of our strategy.

“The cash that our production generates funds work now underway at Sarta and Qara Dagh, with plenty left over to both pay a dividend and seek new opportunities, as we progress Genel's growth strategy."

Interim revenues rose 20% to US$194mln while profits were 28% ahead at US$76mln.

Shares rose 2% to 182p.


Quick facts: Genel Energy PLC

Price: 160.9097 GBX

Market: LSE
Market Cap: £4.62 m

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