Genel Energy widens FY loss, announces minimum $50m bond buy-back

Chief executive Murat Ozgul said while while 2016 was a challenging year at Taq Taq, Tawke continued to produce at a stable level, and regular payments for Genel's oil production in the Kurdistan Region of Iraq helped generate free cash flow in the year.

"The improved financial position of the Kurdistan Regional Government bodes well for a continuation of these payments," said Ozgul.

He added that the signing of definitive agreements in February 2017 allowed Genel to focus on concluding negotiations with potential partners, helping unlock the significant value in its gas assets.

"We move into 2017 with clear priorities: maximising the value of our oil assets, accelerating the recovery of the receivable, and building on the increased momentum in the development of our gas assets."

Genel's pre-tax profit was $1.25bn, from $1.16bn. Revenue was $190.7m, from $343.9m. It said 2016 net production averaged 53,300 bopd, versus 84,900 in 2015, and said this was at the lower end of revised guidance.

Separately, Genel detailed a reverse tender offer to holders of Genel Energy Finance Plc's $730m GENEL01 PRO senior unsecured callable bonds with ISIN NO0010710882.

"The company intends to buy back a minimum of $50m in nominal value of bonds, and will seek to cancel all bonds repurchased, including current treasury bonds with nominal value of $55.4m."

The buy-back offer would begin on 30 March 2017 and will expire on 6 April.

At 13:14 GMT, shares in Genel were up 8.16% to 63p each.