Genel Energy PLC (LON:GENL) is expecting to end the year with a material cash position, said chief executive Bill Higgs.
The company, in a statement ahead of today's remote AGM, highlighted improved oil pricing and noted that “catch up” payments from the Kurdistan region of Northern Iraq have begun.
"The addition of production at Sarta and the robust performance of Tawke year-to-date has increased year-on-year production in line with guidance,” Higgs said. “With a strong balance sheet, our high-potential appraisal drilling campaign is now underway following the spud of the QD-2 well at Qara Dagh.
“With the increase in oil price and beginning of catch up payments from the KRG, despite our investment in growth and payment of a material dividend, we expect to end 2021 with a material cash position."
READ: Genel Energy talks growth for 2021
Genel noted that it continues to carry out work programmes across all producing and appraisal assets despite ongoing challenges of COVID-19 in the operating environment. It said it aims to deliver on the significant near and long-term potential in its portfolio.
Separately, the company announced the departure of Martin Gudgeon as director along with Esa Ikaheimonen, who will continue in his role as chief financial officer.
“I thank Martin for his valuable contribution to the company. I also take this opportunity to thank Esa for his valued and continuing contribution to Genel,” said chairman David McManus.
“As chief financial officer, Esa remains integral to the further strengthening of Genel's already strong financial position, with robust finances supporting a material dividend and re-investment in significant growth opportunities."