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d(Alliance News) - Genel Energy PLC declared its maiden interim dividend on Tuesday, as increased production drove a rise in revenue and profit.
Genel confirmed a 5 US cent dividend for the six months to June, worth USD27.4 million, after none the year before. This comes after a USD10 million share buyback announced in June.
Genel, which produces oil from Iraq's Kurdistan region, averaged 37,400 barrels of oil per day during the first six months of 2019, up 17% on the year before.
The company explained production was boosted by the completion of eight wells, resulting in year-on-year production increases at both the Tawke and Taq Taq fields in Iraq.
Production guidance for 2019 as a whole has been held at 36,900 barrels of oil per day, which would be a 10% rise year-on-year.
Pretax profit climbed 29% year-on-year to USD76.4 million, with revenue climbing 21% to USD194.3 million.
"These results demonstrate the continued success of our strategy - highly cash generative production underpins capital investment in growth opportunities that deliver rapid returns and enables a compelling cash return to shareholders through our dividend," said Chief Executive Bill Higgs.
"Disciplined capital allocation remains at the core of our business. The speed with which our investments pay back means that cash is quickly recycled to create most value for shareholders."
"The cash our production generates funds work now underway at Sarta and Qara Dagh, with plenty left over to both pay a dividend and seek new opportunities, as we progress Genel's growth strategy," Higgs continued.
Looking ahead, Genel has over 10 wells lined up for completion by early 2020, and it hopes to get the Sarta field producing by the middle of 2020.
Genel's capital expenditure for the year is expected to be at the top end of the USD150 million to USD170 million range guided.
Genel shares were 2.1% higher on Tuesday morning in London at 181.80 pence each.
By George Collard and Evelina Grecenko; georgecollard@alliancenews.com; evelinagrecenko@alliancenews.com
