Genel follows 'landmark' year with solid start to 2018

London based oil and gas firm Genel Energy told investors at its annual general meeting on Thursday that momentum seen during its "landmark 2017" had carried on into 2018.

Payments from the Kurdistan Regional Government "remained regular" so far in 2018, with Genel receiving more than $100m in the year so far as it approached three years of consistent payments from the KRG.

Genel's "firm focus" on capital discipline and shareholder value creation converted a "material portion" of these revenues into free cash flow, leading to a solid improvement in its financial strength.

As of 1 May, Genel had unrestricted cash balances of $208m and an IFRS net debt of $89m, a reduction of $46m over the first four months of the year.

"After a landmark 2017, Genel is continuing to build momentum and generate significant amounts of cash, successfully progressing our strategy as we strive to create value for shareholders, said chairman Stephen Whyte.

"As work continues to generate value from our current assets, we also have the financial strength to add assets that build on the strengths of our portfolio. Governed by strict investment criteria prioritising areas with low to moderate political risk while retaining a focus on significant cash generation, Genel has the potential to develop a rich funnel of opportunities and in turn fulfill our strategic ambition of being a world-class independent E&P creator of shareholder value," he added.

As of 0910 BST, Genel shares had jumped 7% to 275p.