A double-digit percentage rise in Genel Energy 's (GENL) share price on release of its full-year figures must be seen in the context of its preceding regulatory release in which the Kurdistan-focused driller detailed a two-thirds reduction in proven and probable reserves at its flagship Taq Taq oilfield. Since the end of 2016, daily production at the field has fallen by 17,000 barrels, or 47 per cent, as a consequence of water ingress, thereby forcing Genel to pull 2017 guidance for the field.
The downgrade also resulted in a $181m (£149m) writedown in the carrying value of Taq Taq, forming part of an overall $1.2bn impairment that fed through into Genel's second consecutive billion-dollar loss.
The aforementioned rally in the share price was partly brought about by heightened speculation that the group could strike a gas export deal with the state-controlled Turkey Energy Company. This would enable Genel to fully exploit gas resources at its Miran and Bina Bawi fields.
There was good news for the group's bondholders, as it intends to buy back a minimum of $50m in nominal value of its bonds, and will seek to cancel all bonds repurchased, including current treasury bonds.
| GENEL ENERGY (GENL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 63p | MARKET VALUE: | £175m | |
| TOUCH: | 62.5-63p | 12-MONTH HIGH: | 148p | LOW: 55p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 479¢* | NET DEBT: | 18% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 333 | 0.76 | 27.2 | nil |
| 2013 | 348 | 0.19 | 66.2 | nil |
| 2014 | 520 | -0.31 | -113 | nil |
| 2015 | 344 | -1.16 | -417 | nil |
| 2016 | 191 | -1.25 | -449 | nil |
| % change | -45 | - | - | - |
Ex-div: na Payment: na £1 = $1.25 *Includes intangible assets of $917m, or 329¢ a share. | ||||
