Genel Energy (GENL) H2 2025 earnings summary

Executive summary

• Achieved operational resilience with predictable cash generation from Tawke PSC, despite regional hostilities and temporary production halts in 2025.

• Exited three unprofitable Kurdistan licences and two African licences, eliminating residual liabilities.

• Refinanced bond, extending maturity to 2030 and reducing funding risk.

• Maintained strong focus on capital allocation and cost optimization.

Financial highlights

• Revenue was $68.7 million, down from $74.7 million year-over-year due to lower Brent prices and production.

• EBITDAX rose sharply to $43.3 million from $1.1 million, reflecting lower non-cash charges.

• Operating loss narrowed to $10.3 million from $52.4 million year-over-year.

• Free cash flow was $4.1 million, down from $19.6 million, impacted by lower working capital movements.

• Net cash position improved to $133.7 million (2024: $130.7 million); cash balance at $224.4 million.

• Total debt increased to $92 million due to new bond issuance.

• Basic loss per share from continuing operations improved to (4.6)¢ from (22.5)¢.

Outlook and guidance

• 2026 guidance unchanged; production business netback expected to cover costs, with additional investment up to $20 million in pre-production assets.

• Focus on acquiring new assets, restarting Tawke exports, and progressing Block 54 (Oman) and Toosan-1 (Somaliland) drilling.

• Expectation of continued free cash flow positivity and strong balance sheet to support dividends.