Genel Energy PLC’s (LON:GNEL) cash position and dividend will provide investors with sufficient comfort, according to stockbroker SP Angel.
The Kurdistan-focussed oiler earlier today highlighted its resilient business model and robust financial position, ahead of it AGM.
In a statement, it noted that it has received US$98mln of cash proceeds in the first four months of 2020, and, as at the end of April, it had US$404mln of cash on account – with net cash stated at US$106mln on April 30, 2020.
READ: Genel highlights resilient and robust business
The group said it spent some US$45mln of capex in the four-month period, though forward expenditure was cut significant as the coronavirus (COVID-19) pandemic took hold.
Genel confirmed it is paying US$27.8mln of dividends, at 10 US cents per share, to shareholders on its register on May 29.
SP Angel, in a note, meanwhile, commented that Genel had moved quickly in response to market events by halving capital expenditure for 2020 to protect its balance sheet.
“Regular payments from the KRG will remain the focus, however the company’s net cash position of over US$100mln and a dividend maintained will provide sufficient comfort to investors in our view,” analyst Sam Wahab said.
Genel said production in the first quarter of 2020 was marked at an average of 34,170 barrels of oil per day (bopd), in line with guidance set in January following decisions to reduce investments according to external conditions.