Genel Energy PLC: Unaudited results for the period ended 30 June 2025

5 August 2025

Genel Energy plc - Unaudited results for the period ended 30 June 2025

Paul Weir, Chief Executive of Genel, said:

“The Tawke PSC has delivered robust production into consistent domestic market demand in the first half of 2025. Taken together with the cost reductions undertaken in 2024, the core business has generated underlying free cash flow.

Following the successful refinancing of our bond debt in April, our significant cash holding has now increased to $225 million. This strong balance sheet provides both optionality and the funding necessary for the acquisition of new production assets and geographical diversification, which remains a strategic priority for the business.

We are excited to have started work on Block 54 in Oman, and plan to begin testing of the discovered hydrocarbon pay zones around the start of next year, with results expected towards the end of the first quarter of 2026. These results will then determine the best approach for assessing the further potential of the licence for value realisation over the next 3 years.

Over a two-day period in July, the oil operations of a number of international oil companies in the Kurdistan Region of Iraq suffered drone attacks, with Tawke being one of the licences impacted. We are pleased to report that no people were hurt. Recent events in the Middle East had already resulted in a heightened state of security alert in Kurdistan and site manning was minimised. The operator is assessing both the impact and the appropriate forward production plan, with work ongoing to assess damage, minimize presence of staff on location, enhance safety protocols, and carry out repairs necessary for a full restart. We expect the impact of the damage and the deferred production on our cash position to be mitigated by continued focus on control of spend and insurance cover held for incidents such as these. We continue to guide no significant change in net cash at the end of the year.

We continue to work with peers and governments towards the resumption of Kurdistan oil exports, and are encouraged by the increased level of engagement between interested parties in recent weeks.  We note that detailed discussions are taking place in relation to several key issues which could pave the way for an agreement that is acceptable to all parties.”

Results summary ($ million unless stated)

1. EBITDAX is operating loss adjusted for the add back of depreciation and amortisation, exploration expense, net write-off/impairment of oil and gas assets and net ECL/reversal of ECL receivables
2. Free cash flow is reconciled on page 5
3. Reported cash less debt reported under IFRS (page 5)

Summary

• Tawke generated predictable production with consistent domestic sales demand, resulting in working interest production of 19,600 bopd in H1 2025 (H1 2024: 19,510 bopd)
• Domestic sales price averaged $33/bbl for the period (H1 2024: $34/bbl), with all cash due for domestic sales received before the end of the period
• After the end of the period, there were drone attacks on a number of Kurdistan oil operations, including Tawke where production was temporarily stopped as a result of damage caused. The operator is assessing the damage and is working on an appropriate plan to increase production.
• Net cash of $134 million (31 December 2024: $131 million)
  • Significant cash balance of $225 million (31 December 2024: $196 million)
  • Bond debt of $92 million due in 2030 (31 December 2024: $66 million)
• Exits from the Sarta, Qara Dagh and Taq Taq licences have been approved by the KRG with minimal residual liability exposure. We have also exited the Lagzira licence in Morocco.
• Both receivables and payables balances with the KRG have reduced as a result of the exit from Sarta, Qara Dagh and Taq Taq, with the net balance of receivable of around $50 million
• A socially responsible contributor to the global energy mix: 
  • Portfolio carbon intensity under 14 kgCO2e/bbl, below the industry average target
  • The Genel20 Scholarship programme has entered its third year, where Genel is providing university tuition funding for undergraduates from the Kurdistan Region of Iraq 

Outlook

• Following the impact of the drone attack on Tawke production, the operator is developing a plan to expedite the resumption of optimal production in a safe and efficient way, with work ongoing to determine and test the best plan for production ramp up
• We expect the impact on cash of damage caused and lost production to be mitigated by judicious cost control and insurance cover
• On Block 54 in Oman, following the Royal Decree granted in May, there will be some direct capital investment this year as we work towards the first phase, testing previously discovered hydrocarbon pay zones
• We reiterate our guidance of net cash at year-end expected to be about the same as the start of the year.
• On access to exports, talks between the Kurdistan Regional Government and Federal Government of Iraq and Ministry of Oil regarding the Iraq-Türkiye Pipeline are ongoing, with the timing of the resumption of exports on acceptable terms uncertain

Enquiries:

Genel will host a live presentation on the Investor Meet Company platform on Wednesday 6 August at 1000 BST. The presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Genel Energy PLC via: https://www.investormeetcompany.com/genel-energy-plc/register-investor 

This announcement includes inside information.

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. While the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company’s control or within the Company’s control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward looking statements. The information contained herein has not been audited and may be subject to further review.

CEO STATEMENT

The Tawke licence, operated by DNO, continues to deliver exceptional, consistent performance with efficient activity and investment maintaining production at around gross 80,000 bopd in the first half of the year. Operating costs of under $4/bbl and significant reserves mean that this asset will continue to provide significant cash generation well into the future.

At first half average realised domestic sales prices of around $33/bbl, our 25% interest in the licence has generated significant free cash flow that has more than covered our spend.

With discussions on access to exports seeming to have reached a stage of progression that we have not seen previously, we remain focused on working hard with fellow stakeholders to convert this position into accessing exports on the right terms that provide appropriate confidence that we will be paid in line with our contractual terms. This, together with unlocking appropriate investment activity, has the potential to more than double the revenue generation of this world class licence.

We are pleased to report the conclusion of our reorganisation of our Kurdistan business – in the first half of the year we finalised the terms of our previously announced divestment of the unprofitable Taq Taq PSC, and our exit from each of the Sarta and Qara Dagh PSCs. This has removed ongoing cost from the business for no new cost and minimal remaining exposure.

We are now focused on our exciting new Block 54 licence in Oman, where we have been working with the operator OQEP to develop the first phase of our activity plan. This will involve testing existing discovered hydrocarbon pay zones through the re-entry of an existing well, with our current expectation that the associated activity will recommence towards the end of the year with results to follow in Q1 2026.

The activity plan for the remainder of the three-year first phase of the exploration period will be matured on the back of these initial results but will include the drilling of 2 new wells and the acquisition of 3D seismic by May 2028.

In Somaliland we continue to work towards the right operational and commercial conditions to invest, with our partner OPIC (Taiwan), in the delivery of an exploration well on the highly prospective SL10B13 licence.

In Morocco we have completed the relinquishment of the Lagzira licence having completed the minimum work obligations.

We are pleased to have generated $5 million of free cash flow in the first half of the year, and report cash of $225 million, with our bond maturity now moved out to 2030. This provides us with appropriate optionality and funding to deliver on our strategic objectives.

OPERATING REVIEW

Tawke PSC (Tawke and Peshkabir fields)

Gross production from the Tawke PSC has been maintained at consistent levels. This has been achieved by careful and diligent subsurface and operations management. Gross production for the first half of 2025 was 78,400 bopd, well below what we would expect to produce if exports were available. 

Realised price in the domestic market averaged $33/bbl over the course of the period compared to average Brent of $72/bbl. The Company has generated revenue of $36 million from Tawke entitlement in the period.

The asset delivered robust production throughout the first half of the year, with reservoir and operator performance continuing to be exceptional. We will work with the operator to evaluate appropriate and capital efficient investment in order to ensure the production levels meet our needs given the external environment.

Oman

Royal Decree issued on 8 May 2025. We are working with OQEP, the operator, on planned activity for the second half of the year, with an expectation of testing activity to take place around the end of the year, with results expected towards the end of the first quarter of 2026.

Somaliland – SL10B13

On SL10B13 in Somaliland, we continue to work towards achieving conditions that support drilling of the highly prospective Toosan-1 exploration well. 

Morocco

As announced in Q1, we informed ONHYM that we will not be extending beyond the Initial Period of the Lagzira licence to the First Extension Period and consequently abandoned the licence in June 2025, with no incremental costs incurred.

FINANCIAL RESULTS