Genel Energy (GENL) H2 2025 earnings summary

Executive summary

• Production and drilling operations are temporarily suspended due to heightened security risks in the Middle East, but readiness for a rapid restart is maintained.

• Achieved average working interest production of 17,520 bopd in FY2025, with industry-leading operating costs of ~$4/bbl and low carbon intensity of 14.4 kgCO₂e/bbl.

• Ended the year with 17,500 bbl/day average production, 64 million barrels net 2P reserves, and $134 million net cash.

• Maintained a strong balance sheet with $224 million cash and $134 million net cash, supporting strategic flexibility and disciplined capital allocation.

• Strategic focus remains on balance sheet strength, maximizing cash from existing assets, disciplined diversification, and value-accretive acquisitions.

Financial highlights

• EBITDAX reached $43 million for the year, up from $1 million in FY2024; underlying EBITDAX for domestic sales has stabilized at ~$35 million over three years.

• Revenue was $72 million, slightly down from $75 million in FY2024 and $78 million in FY2023.

• Realized oil price was $32/bbl, significantly below Brent average of $69/bbl, due to domestic-only sales.

• Free cash flow was $4 million, compared to $20 million in FY2024 and negative $71 million in FY2023.

• Finished the year with $224 million cash, $134 million net cash, and $92 million gross debt.

Outlook and guidance

• Production and drilling can resume quickly once security allows, with readiness to return to pre-conflict levels within weeks.

• Strategic objectives are fully funded, with a new 2030 bond extending debt maturity and maintaining significant liquidity headroom.

• Focused on deploying cash for value-accretive acquisitions to diversify cash flow and reduce reliance on Kurdistan.

• Oman Block 54 commitment wells expected to be drilled in early 2027, with a $50 million three-year project budget.

• Progressing towards resuming regular dividends once cash flows are sufficiently diversified and resilient.