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Genel Energy PLC: Half-Year Results

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Genel Energy PLC (GENL)
Genel Energy PLC: Half-Year Results
02-Aug-2022 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

2 August 2022

Genel Energy plc

Unaudited results for the period ended 30 June 2022

 

Genel Energy plc (‘Genel’ or ‘the Company’) announces its unaudited results for the six months ended 30 June 2022.

 

Paul Weir, Interim Chief Executive of Genel, said:

“Our cash generation in the first half of the year has been exceptionally strong – driven by our low-cost, high-margin oil production and disciplined capital allocation. We remain focused on the delivery of our long-established strategy of putting capital to work to grow our production and cash generation, while retaining our resilience and paying a material and progressive dividend.

 

We generated $129 million in free cash flow and are well on track to generate over a quarter of a billion dollars of free cash flow for the full year. This continues to build our balance sheet strength and optionality, providing us with the funds to add the right assets at the right price. Our cash flow this year benefits from the recovery of receivables and our override payments, and we are focused on replacing these by building a portfolio that supports the resilience, sustainability, and progression of our material dividend.”

 

Results summary ($ million unless stated)

 

H1 2022

H1 2021

FY 2021

Average Brent oil price ($/bbl)

108

65

71

Production (bopd, working interest)

30,420

 32,760

31,710

Revenue

245.6

 151.5

334.9

EBITDAX1

212.3

 123.1

275.1

  Depreciation and amortisation

(84.4)

 (81.8)

(172.8)

  Impairment of oil and gas assets

-

-

(403.2)

  Reversal of impairment of receivables

12.8

-

24.1

Operating profit / (loss)

140.7

41.3

(276.8)

Cash flow from operating activities

216.3

91.1

228.1

Capital expenditure

74.7

58.2

163.7

Free cash flow2

128.7

22.2

85.9

Cash

412.1

266.4

313.7

Total debt

280.0

280.0

280.0

Net cash / (debt)3

141.3

(2.2)

43.9

Basic EPS (¢ per share)

45.4

9.3

(111.4)

Dividends declared for the period (¢ per share)

6

6

18

 

 

 

 

  • EBITDAX is operating profit / (loss) adjusted for the add back of depreciation and amortisation, impairment of property, plant and equipment, impairment of intangible assets and reversal of impairment of receivables

  • Free cash flow is reconciled on page 8

  • Reported cash less IFRS debt (page 8)

 

Summary

  • Material cash generation from low-cost and high-margin oil production:

    • Net production averaged 30,420 bopd in H1 2022 (H1 2021: 32,760 bopd)

    • Low production cost of $4.4/bbl and strength of oil price delivered a margin per barrel of $32/bbl (H1 2021: $20/bbl)

    • Free cash flow of $129 million (H1 2021: $22 million)

  • Financial strength provides options for capital allocation:

    • $75 million of capital expenditure in H1 2022, of which $41 million was spent at Taq Taq and Tawke, and $27 million on Sarta appraisal

    • Genel took on operatorship at Sarta on 1 January 2022, with Sarta-5 and Sarta-1D subsequently being completed

    • Cash of $412 million (31 December 2021: $314 million)

    • Net cash of $141 million (31 December 2021: net cash of $44 million)

  • A socially responsible contributor to the global energy mix:

    • Zero lost time injuries ('LTI') and zero tier one loss of primary containment events at Genel and TTOPCO operations

      • Two million work hours since the last LTI, as we seek to repeat the performance of six years without an LTI up to September 2021

    • As we mark 20 years of operations in the Kurdistan Region of Iraq (‘KRI’), the Genel20 Scholars initiative has launched, with Genel funding the opportunity for 20 economically disadvantaged students to have a life-enhancing education at the American University of Kurdistan

 

Outlook

  • Production guidance for 2022 maintained as around the same level as 2021, currently tracking between 30-31,000 bopd for the full-year

  • 2022 capital expenditure guidance of between $140 million and $180 million tightened to $150 million to $170 million

  • Genel expects free cash flow of over $250 million in 2022, pre dividend payments

  • Appraisal at Sarta is ongoing, with results of the Sarta-6 well expected around the end of the year

  • The Company continues to actively pursue new business opportunities, focused on production and cash generation

  • The London seated international arbitration regarding Genel’s claim for substantial compensation from the KRG following Genel’s termination of the Miran and Bina Bawi PSCs is ongoing

  • Interim dividend retained at 6¢ per share: 

    • Ex-dividend date: 15 September 2022

    • Record date: 16 September 2022

    • Payment date: 14 October 2022

 

 

Enquiries:

 

Genel Energy

Andrew Benbow, Head of Communications

+44 20 7659 5100

 

 

Vigo Consulting

Patrick d’Ancona 

+44 20 7390 0230

 

There will be a presentation for analysts and investors today at 0900 BST, with an associated webcast available on the Company's website, www.genelenergy.com.

 

This announcement includes inside information.

 

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company’s control or within the Company’s control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward looking statements. The information contained herein has not been audited and may be subject to further review.

 

CEO STATEMENT

The first half of 2022 has generated exceptionally strong free cash flow. Our production remains robust, driven by the ongoing performance of Tawke, and the oil price has underpinned a leap in free cash flow to $129 million in the period. This further strengthens our balance sheet and provides us with an opportunity to invest in building out our portfolio and fulfil our goal of being a world-class creator of shareholder value.

 

A clear direction

Our strategy is well-established – generate cash, invest in growing production and cash generation, and pay a material and progressive dividend. The first half of the year delivers on the first rung of this strategy, with cash generation that equates to around a quarter of our current market capitalisation.

 

Management is focused on investing capital in order to increase long term resilient cash generation and support our progressive dividend long after the end of override and receivable recovery payments this year. We know exactly what we want to achieve and what we need to do to get there.

 

Seeking to add new income streams

Our first priority for investment remains our production portfolio. Tawke drilling continues apace, and we look forward to drilling a well at Taq Taq in the second half of the year. We have evolved into a fully-fledged operator through taking on the operatorship of Sarta, and while the asset has not yet lived up to production expectations, its production generated operational free cash flow in the first half of 2022, which contributes towards funding our ongoing appraisal work. We continue to work on improving production and we will learn more through our ongoing appraisal campaign from the results of Sarta-6.

 

Looking further ahead, we are excited by the opportunity that Somaliland presents. It is a geography that ticks all of the right boxes for new drilling. It is highly prospective, with geology analogous to prolific Yemen basins. It is onshore drilling with a clear route to market via the port of Berbera, and importantly there is the opportunity to make a huge difference to the lives of people in the local community. This is what we mean when we talk about having a portfolio that fits into a future of fewer and better natural resources projects, and we look forward to drilling a well around the end of 2023.

 

While Sarta retains upside potential, should Somaliland exploration be successful it will be some time before we see a positive impact on our cash flow, and hence our focus is firmly on putting our capital to work through the addition of new income streams. We continue to run the rule over opportunities, with strict criteria focused on near-term cash generation and the ability to support and grow our material dividend.

 

Making a positive impact

As we look forward to the impact we could have in Somaliland, we are celebrating 20 years of operations in the KRI. We are proud of the difference we have made in that time. Revenue generated from Taq Taq and Tawke for the KRG totals more than $21 billion, and Genel operations have formed new supply chains and supported tens of thousands of jobs. We have also had an impactful social investment programme, with over 250 projects having been completed.

 

As we mark the 20 year milestone, we are increasing the scope of our social ambitions. We were pleased to announce the launch of the Genel20 Scholars programme, which is set to provide the opportunity for disadvantaged students to have a life-enhancing education. Genel is funding scholarship opportunities for 20 high school graduates to pursue bachelor studies at the American University of Kurdistan. We look forward to updating you on other Genel20 initiatives as the year progresses.

 

We also aim to minimise our environmental impact and keep emissions as low as possible. The Peshkabir-Tawke gas project continues to capture otherwise flared gas, and phase 2 of this is set to start in Q4. Work is also ongoing at Sarta, and we are pleased to have completed the solar panel and battery storage unit at the Sarta-1D wellsite, powering production equipment and reducing the use of diesel generators, therefore lowering our emissions.

 

Outlook and dividend

We expect production to continue at around the same level as the first half of the year for the remainder of 2022. This production will continue to be materially cash generative, delivering over $250 million of free cash flow, boosted again by the receipt of override and receivable recovery payments.

 

Our focus is on continuing our material cash generation once these payments cease, and this is a key priority for our capital allocation going forward. Also a priority is paying our well-established material and sustainable dividend, and our interim dividend has been maintained at 6¢ per share. It is our clear strategic goal to utilise our balance sheet to add long-term cash generation that would support the progression of this dividend.

 

 

OPERATING REVIEW

Production

 

(bopd)

Gross production

H1 2022

Net production

H1 2022

Gross production

H1 2021

Net production

H1 2021

Tawke

106,700

26,680

111,140

27,780

Taq Taq

4,850

2,130

6,490

2,860

Sarta

5,380

1,610

7,080

2,120

Total

116,930

30,420

124,710

32,760

 

Production of 30,420 bopd is a decrease of 7% on the prior year period, a result of ongoing declines at our mature producing fields and pilot production at Sarta falling due to interference between wells having a negative impact.

 

PRODUCING ASSETS

Tawke PSC (25% working interest)

Gross production of 106,700 bopd, with a high-level of activity maintained throughout H1 2022.

 

Sarta (30% working interest)

Gross production of 5,380 bopd in H1 2022, 1,610 bopd net to Genel.

 

In the first half of 2022 we have sought to optimise production from existing Mus-Adaiyah take points at Sarta-1D, 2 and 3, diversify our source of production to add incremental barrels through two ongoing pilot production tests of the Najmah and Butmah reservoirs, while lifting the constraint of produced water storage through the successful, low-cost conversion of the legacy Sarta-4 site into a water disposal well.  

 

As we explore avenues to optimise production, overall field production reduced to an average of c.4,000 bopd in June as Mus-Adaiyah production at Sarta-2 was temporarily suspended while we successfully gained access to and restimulated the Najmah reservoir. The Najmah is producing in line with initial expectations having recovered 70,000 incremental barrels of 15.5 API oil to date. At Sarta-1D a pilot production test of the Butmah (a new resource discovered by the Sarta-1D well) has been ongoing since early July. In line with the test results the interval has produced a mix of oil and water with 50,000 incremental barrels of 29 API oil recovered to date.

 

Plans are being crystalised to continue the Najmah production test through a recompletion at Sarta-3, planned for Q4 2022, allowing for higher volume Mus-Adaiyah production to resume from Sarta-2. To optimise Mus-Adaiyah production from Sarta-2 we are procuring Electrical Submersible Pumps that when fitted will add incremental barrels and maximise production under the steadily increasing water cut and declining pressures observed in that reservoir.

 

Alongside optimising pilot production, appraisal has been a key focus for this year. While the results of well testing at Sarta 5 disappointed, as a consequence of the poor reservoir quality intersected at this location, the multiple oil shows in combination with the oil recovered to surface from the Najmah demonstrate that there may be more to play for in this south-eastern portion of the licence and appropriate next steps in its appraisal are under consideration.

 

At Sarta-6, the second potentially high-impact appraisal well, the well has reached target depth, logging has been undertaken and the well is being completed. Testing is now set to begin in November, following a change to a more cost-efficient rigless testing model. Plans have been progressed to quickly capitalise on any success at Sarta-6 through immediately adding it to production. Should the well disappoint, focus will revert to maximising the value of the cash generative high-margin production in and around the existing production hub. 

 

As we develop the field we will continue to focus on emissions. The installation of a solar panel and battery storage unit at the Sarta-1D wellsite completed in July. This development is intended to power production equipment at the site, which will reduce the use of diesel generators and therefore lower emissions.

 

Taq Taq (44% working interest, joint operator)

Taq Taq continues to perform at the top end of expectations ahead of a resumption of drilling. As the margins at Taq Taq have increased a well is expected to spud around the end of 2022.

 

PRE-PRODUCTION ASSETS

Somaliland

Following the successful farm-out in December 2021, preparation is under way for the drilling of a well on the highly prospective SL10B13 block. The prospect to be drilled has been identified, agreed with our partner, and an optimal well location selected in order to best target the stacked Mesozoic reservoir objectives with individual prospective resource estimates ranging from 100 to 200 MMbbls.

 

Qara Dagh (40% working interest, operator)

The evaluation of the QD-2 well and its results is underway, with a decision on licence next steps to be taken later this year.

 

Morocco

A Petroleum Agreement is set to be signed with ONHYM for the Lagzira license, following which a farm-out campaign is scheduled to commence later this year.

 

 

FINANCIAL REVIEW

Overview of financial performance

The ongoing strength of the oil price has led to a material year on year increase in our net income after cost recovered capital expenditure, despite a small decrease in production.

 

Our material cash generation once again more than funds our capital allocation priorities, with capital expenditure in the first half of 2022 focused firmly on the ongoing appraisal of Sarta, and the payment of our material and progressive final dividend, which was paid in June and represented an increase by of 20% on the year before.

 

Overall we generated $129 million in free cash flow in the first half of the year, resulting in cash of $412 million, and a net cash position of $141 million.

 

 

(all figures $ million)

H1 2022

H1 2021

FY 2021

Brent average oil price

$108/bbl

$65/bbl

$71/bbl

Revenue

245.6

151.5

334.9

Production costs

(24.1)

(21.7)

(45.9)

Cost recovered production asset capex

(41.3)

(19.3)

(49.9)

Production business net income after cost recovered capex

180.2

110.5

239.1

G&A (excl. non-cash)

(8.6)

(6.7)

(12.4)

Net cash interest2

(12.5)

(13.1)

(26.1)

Working capital

(38.2)

(12.2)

(19.7)

Payments for deferred receivables

46.3

13.6

35.1

Changes to payment days

-

(30.4)

(65.0)

Free cash flow before investment in growth

167.2

61.7

151.0

Pre-production capex

(33.4)

(38.9)

(88.6)

Working capital and other

(5.1)

(0.6)

23.5

Free cash flow

128.7

22.2

85.9

Dividend paid

(32.3)

(29.0)

(44.4)

Other

2.0

(0.3)

(1.3)

Net change in cash before 2020 refinancing

98.4

(7.1)

40.2

(Repayment) / new issuance of bonds

-

(81.0)

(81.0)

Net change in cash

98.4

(88.1)

(40.8)

Cash

412.1

266.4

313.7

Amounts owed for deferred receivables1

68.3

145.0

114.6

 

1 Nominal value of deferred receivables is $30.5 million (H1 2021: $107.2 million, FY 2021: $76.8 million) and $37.8 million of invoiced override revenue where payment was suspended from March 2020 to December 2020 (see note 1)

2 Net cash interest is bond interest payable less bank interest income (see note 5)

 

Financial priorities of 2022

The table below summarises our progress against the 2022 financial priorities of the Company as set out at our 2021 results.

 

2022 financial priorities

Progress

  • Maintain our financial strength and put that financial strength to work through investing in growth opportunities

 

  • Material cash generation

  • Material recovery of deferred receivables

  • Net cash increased

  • Progression of Sarta appraisal

 

  • Maximise NPV by prioritising highest value investment in assets with ongoing or near-term cash and value generation

 

  • Focus of capital allocation on cash generative investment in the Tawke PSC, restart of drilling at Taq Taq expected in H2, and production optimisation ongoing at Sarta

 

  • Deliver 2022 work programme on time and on budget

 

  • Work programme progressing, capital expenditure guidance maintained

  • Continue to focus on growing our income streams and cash generation, bringing greater resilience and diversity to the business and supporting our sustainable and progressive dividend programme

 

  • Allocation of capital to Sarta appraisal programmes

  • Continue to explore value-accretive additions

 

 

 

Dividend

The Company is committed to a sustainable and progressive dividend that is supported by resilient, diversified and predictable production and a robust cash generation outlook.

 

At the full year results, the Board approved a 20% increase in the final dividend, with payments relating to the 2021 financial year totalling $44 million. This is now our baseline dividend, which is material and sustainable for the foreseeable future, even after the end of override and receivable recovery payments.

 

It is our intention to progress the dividend in line with the progression of the underlying business. We are focused on utilising our strong balance sheet to build our production and cash generation outlook both organically and through asset acquisitions. This is a key priority. Should we be able to progress our portfolio while still retaining a material cash balance, we will explore other options to maximise shareholder value, including optimising our debt position and the payment of a special dividend.

 

The payment timetable for the Interim dividend, retained at 6¢ per share, is below: 

  • Ex-dividend date: 15 September 2022

  • Record date: 16 September 2022

  • Payment date: 14 October 2022

 

Financial results

Income statement

(all figures $ million)

H1 2022

H1 2021

FY 2021

Brent average oil price

$108/bbl

$65/bbl

$71/bbl

Production (bopd, working interest)

30,420

32,760

31,710

Profit oil

88.4

57.6

120.6

Cost oil

70.8

43.3

100.4

Override royalty

86.4

50.6

113.9

Revenue

245.6

151.5

334.9

Production costs

(24.1)

(21.7)

(45.9)

G&A (excl. depreciation and amortisation)

(9.2)

(6.7)

(13.9)

EBITDAX

212.3

123.1

275.1

Depreciation and amortisation

(84.4)

(81.8)

(172.8)

Impairment / write-off of intangible assets

-

-

(403.2)

Reversal of impairment of receivables

12.8

-

24.1

Net finance expense

(14.6)

(15.7)

(31.0)

Income tax expense

-

-

(0.2)

Profit / (Loss)

126.1

25.6

(308.0)

 

Despite the decrease in working interest production of 30,420 bopd (H1 2021: 32,760 bopd), revenue has increased from $152 million to $246 million principally caused by the higher Brent oil price.

 

Production costs of $24 million increased from the prior period (H1 2021: $22 million), with cost per barrel $4.4/bbl in H1 2022 (H1 2021: $3.7/bbl). Both increases have been caused principally by lower production.

 

General and administration costs were $9 million (H1 2021: $7 million), of which corporate cash costs were $8 million (H1 2021: $6 million).

 

The increase in revenue resulted in a similar increase to EBITDAX, which was $212 million (H1 2021: $123 million). EBITDAX is presented in order to illustrate the cash profitability of the Company, and excludes the impact of costs attributable to exploration activity, which tend to be one-off in nature, and the non-cash costs relating to depreciation, amortisation, impairments and write-offs.

Depreciation of $56 million (H1 2021: $59 million) and Tawke intangibles amortisation of $28 million (H1 2021: $23 million) were broadly in line with last period in total.

 

Bond interest expense of $13 million (H1 2021: $13 million) was in line with previous period.

 

In relation to taxation, under the terms of the KRI production sharing contracts, corporate income tax due is paid on behalf of the Company by the KRG from the KRG's own share of revenues, resulting in no corporate income tax payment required or expected to be made by the Company. Tax presented in the income statement was related to taxation of the service companies (H1 2022: nil, H1 2021: nil).

 

Capital expenditure

Capital expenditure is the aggregation of spend on production assets ($41 million) and pre-production assets ($33 million) and is reported to provide investors with an understanding of the quantum and nature of capital investment. Capital expenditure for the period was $75 million, predominantly focused on production assets and the Sarta PSC ($27 million):

 

(all figures $ million)

H1 2022

H1 2021

FY 2021

Cost recovered production capex

 41.4

 19.3

 49.9

Pre-production capex – oil

 27.0

 15.3

 55.4

Pre-production capex – gas

 -

 1.3

 5.0

Other exploration and appraisal capex

 6.3

 22.3

 53.4

Capital expenditure

 74.7

 58.2

 163.7

 

Cash flow, cash, net cash and debt

Gross proceeds received totalled $254 million (H1 2021: $123 million), of which $66 million (H1 2021: $29 million) was received for the override royalty and $46 million (H1 2021: $14 million) for receivable recovery.

 

(all figures $ million)

H1 2022

H1 2021

FY 2021

Brent average oil price

$108/bbl

$65/bbl

$71/bbl

EBITDAX

212.3

123.1

275.1

Working capital

4.0

(32.0)

(47.0)

Operating cash flow

216.3

91.1

228.1

Producing asset cost recovered capex

(33.1)

(21.1)

(46.9)

Development capex

(22.2)

(16.0)

(41.6)

Exploration and appraisal capex

(17.7)

(16.8)

(24.1)

Interest and other

(14.6)

(15.0)

(29.6)

Free cash flow

128.7

22.2

85.9

 

Free cash flow is presented in order to illustrate the free cash generated for equity. Free cash flow was $129 million (H1 2021: $22 million) with an overall increase mainly as a result of higher Brent.

 

(all figures $ million)

H1 2022

H1 2021

FY 2021

Free cash flow

128.7

22.2

85.9

Dividend paid

(32.3)

(29.0)

(44.4)

Other

2.0

(0.3)

(1.3)

Bond refinancing

-

(81.0)

(81.0)

Net change in cash

98.4

(88.1)

(40.8)

Opening cash

313.7

354.5

354.5

Closing cash

412.1

266.4

313.7

Debt reported under IFRS

(270.8)

(268.6)

(269.8)

Net cash / (debt)

141.3

(2.2)

43.9

 

The 2025 bonds have two financial covenant maintenance tests:

 

Financial covenant

Test

H1 2022

Equity ratio (Total equity/Total assets)

> 40%

61%

Minimum liquidity

> $30m

$412 million

 

 

 

Net assets

Net assets at 30 June 2022 were $677 million (31 December 2021: $581 million) and consist primarily of oil and gas assets of $528 million (31 December 2021: $539 million), trade receivables of $157 million (31 December 2021: $158 million) and net cash of $141 million (31 December 2021: $44 million net cash).

 

Liquidity / cash counterparty risk management

The Company monitors its cash position, cash forecasts and liquidity on a regular basis. The Company holds surplus cash in treasury bills or on time deposits with a number of major financial institutions. Suitability of banks is assessed using a combination of sovereign risk, credit default swap pricing and credit rating.

 

Going concern

The Directors have assessed that the Company’s forecast liquidity provides adequate headroom over forecast expenditure for the 12 months following the signing of the half-year condensed consolidated financial statements for the period ended 30 June 2022 and consequently that the Company is considered a going concern.

 

The Company is in a net cash position with no near-term maturity of liabilities.

 

Principal risks and uncertainties

The Company is exposed to a number of risks and uncertainties that may seriously affect its performance, future prospects or reputation and may threaten its business model, future performance, solvency or liquidity. The following risks are the principal risks and uncertainties of the Company, which are not all of the risks and uncertainties faced by the Company: the development and recovery of oil reserves; reserve replacement; M&A activity; the KRI natural resources industry and regional risk (see update on Iraqi Federal  Supreme Court ruling below); corporate governance failure; capital structure and financing; local community support; the environmental impact of oil and gas extraction; and health and safety risks. Further detail on many of these risks was provided in the 2021 Annual Report.

 

Update on Iraqi Federal Supreme Court ruling

As noted in our Annual Report, the Iraq Federal Supreme Court handed down a majority judgement on 15 February 2022 that purported to deem the oil and gas law regulating the oil industry in Kurdistan unconstitutional.

 

Following the Federal Supreme Court ruling, the KRG issued a statement stating that the ruling was ‘unjust, unconstitutional, and violates the rights and constitutional authorities of the Kurdistan Region’, also stating that it ‘will take all constitutional, legal, and judicial measures to protect and preserve all contracts made in the oil and gas sector.’

 

Genel also notes reports of decisions made in absentia on 4 July in the Baghdad Commercial Court against Genel and several International Oil and Gas companies operating in Kurdistan. Any such decision was made without Genel having formal legal representation.

 

The PSCs that Genel subsidiaries are a party to were signed with the KRG and are governed by English law. Genel continues to monitor the situation closely and is working proactively with advisors in the UK, US, Erbil, and Baghdad, and is in dialogue with the KRG and other stakeholders to protect the interests of the Company. Refer also to the principal risks and uncertainties update set out on pages 9 and 10.

 

Genel also notes the ongoing case, commenced in 2014, by the Federal Government of Iraq against Botas and the Turkish Government relating to the Iraq-Turkey Pipeline, which is being heard in the International Chamber of Commerce’s International Court of Arbitration in Paris.

 

Statement of directors’ responsibilities

The directors confirm that these condensed interim financial statements have been prepared in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union and that the interim management report includes a true and fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

 

  • an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

  • material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

 

The directors of Genel Energy plc are listed in the Genel Energy plc Annual Report for 31 December 2021. A list of current directors is maintained on the Genel Energy plc website: www.genelenergy.com

 

By order of the Board

 

Paul Weir

Interim CEO

1 August 2022

 

Luke Clements

CFO

1 August 2022

 

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company’s control or within the Company’s control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward looking statements.

 

 

 

Condensed consolidated statement of comprehensive income

For the period ended 30 June 2022

 

 

 

Unaudited

6 months to 30 June 2022

Unaudited

6 months to 30 June 2021

Audited

Year

to 31 Dec 2021

 

Note

$m

$m

$m

 

 

 

 

 

Revenue

3

245.6

151.5

334.9

 

 

 

 

 

Production costs

4

(24.1)

(21.7)

(45.9)

Depreciation and amortisation of oil assets

4

(84.3)

(81.7)

(172.7)

Gross profit

 

137.2

48.1

116.3

 

 

...

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