Genel Energy Plc talks growth for 2021 as it draws line under ‘uniquely
“As we make investment in growth, the low-cost and high-margin nature of our growing oil production means that we expect to generate significant free cash flow at the prevailing oil price,” said Bill Higgs
() highlighted its growth prospects and confidence in ‘material and sustainable dividend distribution’ as it provided its financial results for 2020.
“2020 was a uniquely challenging year for everyone,” said chief executive Bill Higgs.
“As for Genel, our continued progress and strong performance in 2020 has laid the foundation for a year of growth and operational catalysts in 2021.
“We continued investment in Sarta, which entered production in November, and the field is generating cash as we now move to rapidly appraise its exciting potential. Three appraisal wells will be drilled at the licence in 2021. The QD-2 well at Qara Dagh is also set to spud shortly, as we look to evaluate the potential to add a fifth producing field.”
Higgs added: “As we make this investment in growth, the low-cost and high-margin nature of our growing oil production means that we expect to generate significant free cash flow at the prevailing oil price.
“In turn, this gives us the confidence in our material and sustainable dividend distribution, including a final dividend of 10 cents per share announced today, as we continue to offer investors a compelling mix of growth and returns.”
Financial results for 2020 saw an average price of US$42 per barrel, down from US$64 in the prior year. As Genel retained production of 31,980 barrels of oil per day (bopd), down from 36,250 bopd in 2019, it generated some US$159.7mln of revenue, down from US$377.2mln in 2019, and US$114.6mln of earnings (EBITDAX), down from US$321.8mln.
It reported an operating loss of US$364.5mln, whilst cash flow from operations totalled US$129.4mln. Debt reduced to US$280mln from US$300mln.
The company ended December with US$354.5mln of cash, and, it paid dividends totalling 15 cents per share.
Read More: Genel Energy Plc talks growth for 2021 as it draws line under ‘uniquely