From January 2020 update17 Mar 2020 19:08
I think we are more pessimistic than necessary when reading the January 2020 trading update again...looking forwards for 19/3....holding with confidence here..just trying to cheer up before tomorrow market..but who knows what tomorrow brings ...
“”Bill Higgs, Chief Executive of Genel, said:
"2019 was a successful year for Genel, and we continue to deliver on our promises. We increased our highly cash-generative production in line with guidance, paid a material dividend, grew our operating capabilities, and added new assets to the portfolio that will bear fruit in 2020.
Our ongoing cash generation, with confidence of regular payments and in the security of the Kurdistan Region of Iraq, means that it is business as usual and our investment plans are moving forward at pace. This increasing investment in our growth assets is more than covered by expected free cash flow, and will see production diversify and increase as Sarta comes onstream in the summer, with enough remaining to underpin an increase in our already significant dividend."
OUTLOOK AND 2020 GUIDANCE
Net production in 2020 is expected to be close to Q4 2019 levels of 35,410 bopd, with an exit rate c.10% higher than this due to the expected addition of production from Sarta
Genel expects to drill over 20 producing wells in 2020
2020 capital expenditure is expected to be $160-200 million, of which $120-150 million will be cost recoverable spend on assets on production in 2020. Other spend includes:
c.$35-40 million on the Qara Dagh 2 well
Under $10 million maintenance expenditure at Bina Bawi and Miran. Capital expenditure expectations for Bina Bawi in 2020 will be updated once legal agreements with the KRG have been signed
Under $2 million on African exploration assets
Operating costs per barrel expected to be $3/bbl, amongst the lowest in the industry
Opex: c.$40 million
G&A: c.$15 million
The Company expects full recovery of outstanding payments in Q1, and for regular payments to resume, as they had since September 2015
The Company continues to actively pursue growth and is analysing numerous opportunities to make value-accretive additions to the portfolio, but will only proceed with opportunities that fit our strict strategic criteria
Genel expects to generate c.$100 million in free cash flow, pre-dividend payments, in 2020
Given the ongoing strength of cash generation, confidence in the regularity of payments from the KRG, and the positive outlook for the Company, Genel reaffirms its commitment to growing the dividend””
Sign In
Follow the stocks
