Genel Energy maintains full-year guidance after strong quarter

Genel Energy reiterated its guidance for 2022 production to reach similar levels to 2021 on Thursday, as its first quarter performance was in line with expectations.

The London-listed firm said net production in the first quarter totalled 30,520 barrels of oil per day, with free cash flow coming in at $43m (£35.26m).

Its first quarter margin rose to $30 per barrel from $24 a year earlier, with Brent crude prices averaging $102 per barrel, up from $71.

Capital expenditure totalled $35m, of which $19m was spent at Twake, and $12m at Sarta.

Genel said that of the $35m invoiced for oil sales in December, $17m was received in the first quarter, with another $18m being received after the end of the period.

A total of $95m in cash proceeds was also received from the Kurdistan Regional Government in the period.

The company’s total cash balance stood at $356m at period end on 31 March, up from $314m at the end of December, while net cash jumped to $86m from $44m over the same period.

Looking ahead, Genel Energy reiterated its full-year guidance, with production for 2022 set to be “at around the same level” as the firm’s 2021 average.

The board said it was also recommending the approval of a final dividend of 12 US cents per share at the annual general meeting being held later in the day, up from 10 cents a year ago and making for a total distribution of $33.5m.

“Our robust financial position continues to strengthen, supporting investment in our organic portfolio as well as our progressive dividend,” said chief executive Bill Higgs.

“Despite the result of Sarta-5, the well delivered useful data that we will incorporate together with the results of our next well, Sarta-6, into our forward plans for the field.

“As we look to add production and further bolster our progressive dividend and create value for stakeholders, we continue to review both organic and inorganic opportunities.”

At 0928 BST, shares in Genel Energy were up 0.93% at 173.2p.

Reporting by Josh White at Sharecast.com.