Gulf Keystone swings to loss in 2023

Kurdistan-focused oil group Gulf Keystone Petroleum (GKP) swung to a small loss in 2023 as the suspension of exports and continued delays to payments from the regional government had a material impact on its financial performance.

GKP reported revenue of just $123.5m last year, down from $460.1m in 2022, after a 50% drop in gross average output to 21,891 barrels of oil per day and a 45% decline in the average realised price to $40.90 per barrel.

Losses after tax totalled $11.5m, compared with a profit of $266.1m previously.

The company said this included "an increase in the expected credit loss provision determined under IFRS 9 of $21.4m (2022: $2.0m) related to the $151m overdue receivables from the KRG for October 2022 to March 2023 export sales". GKP said it continues to expect to recover the receivables.

The company recorded a free cash outflow of $13.1m, compared with free cash flow of $266.5m previously.

"Our actions to reduce capital expenditures and costs and safely transition our operations to trucking and local sales have enabled us to protect our business as we continue to engage with government stakeholders for an exports restart solution," said chief executive Jon Harris.

The stock was down 1.7% at 107.2p by 1206 GMT.