Genel cuts full-year revenue and output guidance

Genel, the largest oil producer and holder of reserves and resources in the Kurdistan region of Iraq, cut its 2015 production and revenue guidance on the back of delays to payments for its exports from the Kurdistan regional government (KRG) and declining prices.

The company downgraded its output guidance to between 85,000 and 90,000 barrels of oil equivalent per day from 90,000 to 100,000. It also trimmed its revenue guidance, to between $350m and $375m, from $350m to $400m, assuming a Brent oil price of $50 a barrel in the third quarter of the year.

The oil and gas exploration company said revenue in the third quarter was $77m, with total revenue for the first nine months of the year of $276m.

The company said it received total payments of $45m from the Kurdistan regional government. Genel and peer Gulf Keystone Petroleum have suffered payment delays for years as they got caught up in a revenue-sharing dispute between regional authorities and Iraq’s federal government.

In a separate statement, Genel said the Taq Taq field partners have received a gross payment of $30m from the KRG for oil exported through the Kurdistan region of Iraq-Kurdistan pipeline. Genel's share of the gross Taq Taq payment is $16.5m.

Chief executive Murat Özgül said: “The third quarter of 2015 has been a turning point for Genel. September's payment for exports, coupled with local sales, has stabilised the receivable owed to us by the Kurdistan regional government.

“With total exports from the Kurdistan Region of Iraq again hitting record levels, and pipeline uptime improving, we have confidence in the KRG's commitment to make regular payments for oil exports."

At 1141 BST, Genel shares were down 6.3% at 314.25p.