Drama at today’s AGM saw Genel Energy PLC (LSE:GENL, OTC:GEGYY) shareholders empty the boardroom.
Chief executive Bill Higgs and non-executive directors Tim Bushell and Hassan Gozal did not receive receive the required 50% majority of votes in favour of re-election to their roles, and, as a result were not reappointed as directors.
The company is now expected to update the market in due course once the remaining board has considered the implications of the vote.
Earlier this morning, in a statement, the company said it was reviewing both “organic and inorganic opportunities”.
At the same time, it reported 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.
In the AGM vote, there were 45% of votes in favour of re-electing Bill Higgs and 55% of votes against, whilst Bushall and Gozal similarly received 44% of votes.