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Genel Energy Plc lifts interim dividend as boosted cash flows continue

Genel said it has confidence to invest in its operations and return surplus cash to shareholders via increased dividends

Genel Energy PLC (LSE:GENL, OTC:GEGYY) said it continued to “generate material positive cash flow” as it hiked its dividend 20%.

The North Iraq focused oil company said it received US$187mln of cash over the first nine months of 2021 versus US$142mln in the same period last year. Free cash flow (before investments in growth) was US$99mln.

Genel is increasing its interim dividend 20% to 6 US cents per share, for an US$18mln gross payout to shareholders. It had US$277mln of cash at the end of September and said net cash stood at US$8mln and net debt at US$2mln.

“Genel’s low-cost and high-margin production continues to generate material positive cash flow which, coupled with our confidence in predictable payments going forward, allows us to further invest in our growth assets with sufficient surplus to support our competitive and progressive dividend, with the interim dividend increased by 20%,” said chief executive Bill Higgs.

The company said it received seven batches of payments from the Kurdistan Regional Government in the first nine months of 2021. At the same time, it spent US$106mln of capital, with around US$71mln earmarked for the Sarta and Qara Dagh fields.

Production across the portfolio averaged 116,670 barrels of oil per day gross, around 30,520 bopd net to Genel.

The 25% owned Tawke contributed some 11,310 bopd of net production whilst the sister field Peshkabir yielded 14,980 bopd. Sarta, which is 30% owned by Genel, added 1,790 bopd as operations continue to be developed and built up.

At the 44% owned Taq Taq field production averaged 2,430 bopd in the three months, though the company said new works planned for 2022 will aim to increase cash generation from the licence.

Read More: Genel Energy Plc lifts interim dividend as boosted cash flows continue

2021-11-04 03:43:00

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