(Alliance News) - Genel Energy PLC on Thursday recorded a slight dip in quarterly oil production and confirmed it would pay a final dividend amid the Covid-19 crisis.
The oil producer - whose annual general meeting is scheduled for Thursday - said that net production in the first quarter of 2020 averaged 34,170 barrels of oil per day, down 3.5% from 35,410 in the fourth quarter of 2019.
The Tawke field produced 15,370 barrels net during the quarter, Peshkabir produced 13,430, and Taq Taq produced 5,370.
Genel said it expects to draw first oil in its Sarta asset - in which it holds a 30% stake - in the fourth quarter of 2020 rather than in the third quarter due to delays caused by the Covid-19 outbreak.
The company added that the 40%-owned Qara Dagh asset, which was on track to spud in the second quarter has experienced delays but assured that it is working to ensure drilling takes place once conditions improve.
Looking ahead, Genel said that in efforts to conserve cash, it has cut 2020 capital expenditure by around 50% to just over 100 million, with around half to be spent on Tawke and Taq Taq, around USD30 million on Sarta, and around USD10 million on Qara Dagh. It added that it expects operating costs during the year to be USD3 per barrel
In the first four months of 2020, the London-based company received USD98 million cash. Net cash as at the end of April was USD106 million.
Genel confirmed it will pay a final divided of 10 cents per share, steady on a year before.
"Despite the impact of Covid-19 creating a challenging environment for our industry, Genel's resilient business model and robust financial position, with over USSD100 million in net cash and an asset cash-flow break even of USD30 per barrel, leaves us well placed to withstand the consequences of the pandemic as we continue to deliver our strategy," said Chief Executive Bill Higgs.
The stock was trading 1.3% lower at 110.20 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Genel Energy (GENL)