Genel Energy has issued a trading and operations update relating to Q1 2024, ahead of the Company's Annual General Meeting, which is being held today.
Paul Weir, Chief Executive of Genel, said:
'We have achieved balanced income and expenditure in the first quarter of the year, which is ahead of schedule. Local sales from the Tawke licence have been robust to date, with the sales price increasing marginally and demand staying strong, and we continue to expect income to cover our spend over the course of the full year. Local sales volumes going forward will continue to be dependent on demand, the view of the field partners on reservoir management, and whether investment would be cost effective and deliver value to shareholders.
The business is in a robust financial position, with multiple potential catalysts for the delivery of significant shareholder value ahead.'
FINANCIAL
- Cash of $372 million at 31 March 2023 ($363 million at 31 December 2023)
- The positive improvement in cash is principally caused by temporary deferral of payables and other positive working capital movements
- Following the first of the $11 million bi-annual bond interest payments in April, cash at the end of April is $361 million
- We expect our costs to be covered by income for the remainder of the year
- Net cash under IFRS of $128 million at 31 March 2024 ($120 million at 31 December 2023)
- Total debt of $248 million at 31 March 2024 ($248 million at 31 December 2023)
PRODUCTION AND OPERATIONS
- Zero lost time incidents in 2024 to date, with four and a half million hours worked since the last incident
- Gross production of 76,310 bopd in Q1 2024 (65,770 bopd in Q4 2023), all from the Tawke licence, where local sales demand remains robust
- Net production of 19,080 bopd in Q1 2024 (16,440 bopd in Q4 2023)
- Following negotiation with local buyers, the sales price from the Tawke licence has been raised to the upper-USD 30s per barrel level
ARBITRATION
- The London-seated international arbitration process, which includes Genel’s claim for substantial compensation from the KRG following the termination of the Miran and Bina Bawi PSCs, is ongoing. Written closing submissions will now be made next week, subsequent to which written reply submissions will be made in the first half of June. The timing of the result is uncertain, but is expected by the end of 2024
OUTLOOK
- Genel continues to expect net cash to remain well above $100 million throughout 2024
- Talks between stakeholders regarding the Iraq-Türkiye Pipeline are ongoing, although the timing of the resumption of exports remains uncertain
Source: Genel Energy
