(Alliance News) - Genel Energy PLC on Tuesday lifted its interim dividend after increasing sales and production, but flagged project delays in the rest of the year.
Shares in Genel - which owns oil production and development assets in Iraqi Kurdistan - were down 2.8% to 138.24 pence in London on Tuesday afternoon.
Revenue jumped 71% year-on-year in the first half of 2021, to USD151.5 million from USD88.4 million. The company swung to a pretax profit of USD25.6 million from a loss of USD354.7 million, when it recorded heavy impairments. Production averaged 32,760 barrels of oil per day, up 2.1% from 32,100 bopd.
The interim dividend was raised to 6 cents per share. For 2020, Genel paid an interim dividend of 5 cents per share and a final dividend of 10 cents per share.
Genel said it benefited from higher oil prices and lower production costs in the period.
The company maintained its full-year guidance for production "slightly above the 2020 average" of 31,980 bopd. Capital expenditure will be around the middle of a USD150 million to USD200 million range, and the company will end the year in a net cash position from its current USD2.2 million net debt.
But the firm warned that some activity planned for the second half will be moved to next year, because of delays in approvals from the Kurdistan Regional Government and Covid-19 challenges.
The KRG also changed its payment schedule to two months in arrears instead of one, meaning USD30 million that was due in the first half will now be moved to the second half.
"Capital investment made last year, despite the low oil price and over $150 million of deferred payments, has meant this period has benefitted from the addition of oil from Sarta and increased production from Peshkabir," Chief Executive Bill Higgs said.
"Given the cash generation of the business, our strong balance sheet, and the resilience of our business model, we are fulfilling our aim of paying a progressive dividend by increasing the interim payment," he added.
By Ivan Edwards; ivanedwards@alliancenews.com
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Genel Energy (GENL)