The Genel Energy Board has approved an increase in the interim dividend from 5 cents to 6 cents, representing just under $3 million per annum, and reaffirms its commitment to the dividend being sustainable and progressive.
Other financial highlights include:
- Strong cash generation from low-cost oil production:
- Net production averaged 32,760 bopd in H1 2021, slightly above the average in the prior year and in line with guidance (H1 2020: 32,100 bopd)
- Low production cost of $3.7/bbl, oil price increase, and restart of the override helped deliver an overall margin from our production assets of $111 million
- Free cash flow for the period was $22 million, despite the Kurdistan Regional Government ('KRG') changing its payment schedule from one to two months in arrears, moving c.$30 million that was due in H1 into July
- $123 million of cash proceeds were received in H1 2021 (H1 2020: $110 million)
- Investing in growth:
- Their high-potential drilling campaign is well underway, with the QD-2 well at Qara Dagh having spud in April, and the Sarta-5 well in June
- $58 million of capital expenditure in H1 2021, with activity accelerating in H2
- Financial strength to underpin a material and progressive dividend:
- Cash of $266 million, with net debt of $2.2 million
- A socially responsible contributor to the global energy mix:
- Zero lost time injuries ('LTI') and zero tier one loss of primary containment ('LOPC') events at Genel and TTOPCO operations. Now no LTIs since 2015, with over 14 million work hours since the last incident, and no LOPCs since 2017
- Second GRI compliant Sustainability Report issued today
