Genel Energy PLC (LSE:GENL, OTC:GEGYY) chief executive Bill Higgs cheered the company’s robust financial position and said management continues to review both “organic and inorganic opportunities”.
The oiler told investors it generated US$43mln of free cash flow in the first quarter of 2022, having received US$95mln of cash proceeds in the quarter from the Kurdistan Regional Government.
It produced 30,520 barrels of oil per day in the quarter – as Brent crude averaged US$102, the company saw a margin of US$30 per barrel, up from US$24 in the same period last year.
Genel had US$356mln of cash at the end of March, with net cash reported at US$86mln.
A final dividend of 12 cents per share, costing US$33.5mln, will go for approval at today’s AGM and the company said it will continue to fulfil its aim of paying progressive dividends.
The company noted that guidance for 2022 has been reiterated, with production volumes expected to mirror last years’ performance.
Genel reported US$35mln of capital spending in the first quarter with US$19mln spent at the Tawke operations and US$12mln spent at Sarta, where a recent appraisal well disappointed.
Operations at Sarta have now moved on to the field’s next appraisal drilling opportunity.
“Despite the result of Sarta-5, the well delivered useful data that we will incorporate together with the results of our next well, Sarta-6, into our forward plans for the field,” Bill Higgs said in a statement.
“As we look to add production and further bolster our progressive dividend and create value for stakeholders, we continue to review both organic and inorganic opportunities.”