Proactive Investors - Genel Energy PLC (LON:GENL) told investors it remains confident that pipeline exports from the Kurdistan region of Iraq will restart, to reopen access to international pricing.
Chief executive Paul Weir, in a trading update today, said “good progress has been made in achieving consistency of domestic sales volumes, although pricing continues to be weak”.
“We are on track to deliver the cost reductions that we forecast at our half-year results.
“Tawke is now cash generative from local sales, and monthly spend across the business is set to reduce further once we have exited the Sarta licence and completed Somaliland civil works.”
He added: “This year we have reduced debt by almost 10% at opportunistic prices while retaining our significant cash balance, providing us with the financial strength to deliver on our objectives and diversify through the addition of resilient income streams.”
For the third quarter, Genel reported US$11 million of cash proceeds from local sales of Tawke crude – which comprised 6,500 barrels per day net to Genel, or 25,980 bopd gross, in the quarter and was recently noted as growing significantly in the fourth quarter.
The company noted that it had a US$12 million capex outlay in the quarter.
It ended the quarter with US$391 million of cash and US$264 million of debt.
Looking ahead, Weir said: “We will continue to reshape our portfolio and effectively balance minimising our spend and progressing our strategy.”
Separately, another focal point in 2024 will be an arbitration hearing over the Miran and Bina Bawi assets. Presently, this is slated for February.