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Pay delays weigh on GKP

An interim management statement for Gulf Keystone underlines the problems that it - and other frontier oil and gas explorers - can have in receiving timely payments for exports.
May 14, 2014

The share price of Gulf Keystone Petroleum (GKP) extended its downward slide on the release of an interim management statement highlighting uncertainty in the timing of revenue recognition and guidance for 2014.

IC TIP: Buy at 95p

This is hardly a unique problem for GKP; other operators have shipped crude via pipelines through Iraq and payments from Baghdad have been subject to lengthy delays. The company has been trucking oil exports into Turkey since late last year, yet it has received just $6.46m (£3.87m) for the exports, leaving $24m outstanding. Nevertheless, mid-range revenue guidance for this year has been set at $165m

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