By Karolin Schaps
LONDON (Reuters) - Genel Energy (L:GENL), an Iraqi Kurdistan oil producer chaired by former BP (LON:BP) boss Tony Hayward, slipped further into the red last year after it again downgraded reserves at its flagship oilfield and weak oil prices ate into profits.
Genel wrote off $779 million (627.13 million pounds) in relation to its exploration assets, leading to an annual operating loss of $1.2 billion after a $1.1 billion operating loss made in 2015.
Revenue slipped to $190.7 million, missing its 2016 target of $200 million to $230 million. It cut its target twice last year.
Genel announced on Tuesday that reserves at its Taq Taq oilfield had been cut by around 66 percent and that it would suspend the field's full-year production target of 35,000 to 43,000 barrels per day.
Net debt rose to $241.2 million at the end of last year. It said it intends to buy back a minimum of $50 million worth of bonds.
"We do not think the business can support the amount of debt it currently carries, hence a small tender offer this morning," Stifel analysts, who have a "hold" recommendation on the stock, said.
Genel's receivables, debt owed by the Kurdistan Regional Government for oil exports, fell to $253.5 million at the end of the year, compared with $437 million at the end of September.