Genel Energy (LSE:GENL) reported average working interest production of 17,520 barrels of oil per day from the Tawke field in 2025. All output was sold within the domestic Kurdistan market at an average realised price of $32 per barrel, generating $68.7 million in revenue and delivering EBITDAX of $43.3 million despite weaker Brent crude prices.
The company finished the year with $224 million in cash and $133.7 million in net cash. During the period, Genel refinanced its outstanding bond to extend its maturity to 2030, improved operating netback to $10 million, and exited five underperforming licences in Kurdistan and Africa without leaving residual liabilities.
Management highlighted the development of a more resilient and cash-generative operating platform. Free cash flow remained positive at $4.1 million, while overdue receivables from the Kurdistan Regional Government were reduced to approximately $48 million after accounting for offsets and credits. A $26 million charge related to an arbitration case remains under appeal.
Operationally, the company faced disruption during the year, including temporary production halts at Tawke following regional hostilities and drone attacks. In addition, exports through the Iraq–Türkiye pipeline have yet to resume for the company. Despite these challenges, Genel expects domestic sales from Tawke and additional drilling activity to cover group operating costs in 2026.
Looking ahead, the company plans to invest up to $20 million in exploration projects in Oman and Somaliland while continuing to pursue potential asset acquisitions. Management also highlighted the potential for improved shareholder returns if export routes reopen and operating conditions stabilise.
Genel Energy’s outlook reflects a mixed financial profile. While revenue pressures persist, the company continues to generate operating cash flow and has improved its free cash flow position alongside manageable debt levels. Technical indicators appear largely neutral, with a slightly negative MACD trend. Valuation metrics remain constrained by a negative price-to-earnings ratio and the absence of a dividend yield.
More about Genel Energy
Genel Energy is an independent oil and gas exploration and production company focused primarily on the Kurdistan Region of Iraq, alongside exploration interests in frontier basins including Oman and Somaliland. Its core operations centre on crude production from the Tawke field, while the company continues to pursue exploration opportunities aimed at expanding reserves, resources and future cash flow potential.
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