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Genel Energy boasts successful year of production growth and maiden dividends

"2019 was a successful year for Genel, and we continue to deliver on our promises,” said chief executive Bill Higgs

Genel Energy PLC - Genel Energy boasts successful year of production growth and maiden dividends

Genel Energy PLC (LON:GENL) chief executive Bill Higgs has celebrated 2019 as a “successful year” for the Iraq focussed oil and gas firm.

In a trading update, ahead of full-year financial results due for release on 17 March, the group told investors that it delivered some 36,250 barrels of net oil production per day from the Kurdistan region of Northern Iraq.

The company pointed out that it brought 19 wells into production during 2019.

In terms of financials, Genel said that it received some US$317mln of cash proceeds from the Kurdish authorities in 2019, while the group’s free cash flow amounted to US$99mln before dividends.

READ: Genel boosted as Tawke yields production growth

Capital spending during the year amounted to US$161mln, with increased spend on growth assets.

It declared some US$42mln worth of dividends, comprising a maiden dividend of US$27mln (10 cents per share) paid in June and a further US$15mln (5 cents per share) paid in January.

Genel ended December 2019 with some US$387mln of cash, with the net cash figure stated at US$90mln.

"2019 was a successful year for Genel, and we continue to deliver on our promises,” said Bill Higgs, Genel chief executive.

“We increased our highly cash-generative production in line with guidance, paid a material dividend, grew our operating capabilities, and added new assets to the portfolio that will bear fruit in 2020.”

Higgs added: “Our ongoing cash generation, with confidence of regular payments and in the security of the Kurdistan Region of Iraq, means that it is business as usual and our investment plans are moving forward at pace.

“This increasing investment in our growth assets is more than covered by expected free cash flow, and will see production diversify and increase as Sarta comes onstream in the summer, with enough remaining to underpin an increase in our already significant dividend."

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Price: 154.8 GBX

LSE:GENL
Market: LSE
Market Cap: £429.83 m
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