Last checked at (Sharecast News) - Genel Energy reiterated plans to pay out a dividend for 2020 despite the weaker oil price environment and investments to bring its Sarta field online.
The Kurdistan, Iraq-focused oil explorer also forecast that it would end the year with a net cash position, assuming oil prices held at their current level, which it credited to its low-cost production and the capital flexibility of its development programme.
For the six months ending on 30 June, the firm posted a
14.2% drop in oil production to 32,100 barrels of oil equivalent per day.
That resulted in a 54.5% drop in revenues to $88.4m and a 61.1% reduction in earnings before interest, taxes, depreciation and amortisation to $65.1m.
The company also booked non-cash impairment charges of -$286.3m and $34.9m against the value of its oil and gas assets, and trade receivables, respectively.
In underlying terms meanwhile, group profit sank from $91.9m for the year earlier period to -$32.2m, resulting in a loss per share of -11.7 cents against earnings of 27.2 cents a year back.
Total debt however was unchanged at $300m with net cash edging higher, from $55.8m to $57.2m (after payment of the dividend in June), even as its free cash flow dwindled from $56.7m to $6.5m.
In parallel, the average price of Brent during the period came in at $40 a barrel, down from $65.
The interim dividend was kept at five cents per share.
"The dividend remains a core part of our business model, which is focused on growth and the protection of financial strength."
As of 1219 BST, shares of Genel Energy were down 4.95% to 146.0p.
4 Nov 2021 08:32
Genel hikes interim payout but guides lower on full-year oil production
(Sharecast News) - Genel Energy hiked its interim dividend by 20% on the back of rising oil prices and burgeoning cash flow, even as it reported delays to testing programmes at the Sarta and Qara Dagh oil fields and guided lower for full-year output.
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