Genel Energy (GENL) H1 2025 earnings summary

Executive summary

• Maintained a strong balance sheet and resilient platform, increasing cash by $30 million since the start of the year, with cash holdings reaching $225 million after a successful bond refinancing extending maturity to 2030.

• Operations in Kurdistan faced temporary disruption due to drone attacks, but no injuries occurred and production is expected to restart soon at reduced levels.

• Strategic focus remains on diversifying cash generation and production, with new activity commencing in Oman (Block 54) and ongoing preparations for drilling in Somaliland.

• Portfolio streamlined by relinquishing non-core assets in Morocco, Sarta, Qara Dagh, Taq Taq, and Lagzira, reducing liabilities and simplifying operations.

• Disciplined capital allocation prioritizes acquisitions and supports a regular dividend program.

Financial highlights

• Net cash position increased to $134.4 million at HY2025 (31 Dec 2024: $130.7 million); cash balance at $225 million.

• Tawke PSC generated $6 million in free cash flow from production, with overall free cash flow of $4.7–$5 million in H1 2025.

• Operating costs per barrel at Tawke PSC remained below $4, providing resilience against oil price volatility.

• Revenue for H1 2025 was $35.8 million, down from $37.6 million in H1 2024.

• EBITDAX rose to $25.3 million from $13.3 million year-over-year, aided by reversal of arbitration accrual and lower G&A costs.

Outlook and guidance

• Year-end net cash guidance reiterated as unchanged, even with reduced production levels at Tawke.

• Physical activity in Oman to begin around year-end, with testing results expected by end of Q1 2026.

• Somaliland drilling contingent on establishing appropriate conditions with the new government.

• Export resumption from Kurdistan remains uncertain; ongoing discussions between KRG and Iraqi authorities.

• FY2025 free cash flow expected to fund Oman Block 54 work and new asset acquisitions.