- Final dividend of 10¢ takes total payout to 15¢, the same as 2019
- The energy firm is owed $159m by the Kurdish Regional Government
Sales for Kurdistan-based oil company Genel Energy (GENL) sales more than halved in 2020, but the company is confident enough in the recovery and its production outlook that it has held onto its dividend.
Free cash flow fell into the red last year, down from $99m (£71m) in 2019 to an outflow of $4m. The $42m cost of the 2020 dividend will be covered by free cash flow generated in 2021, the company said. Genel’s production will stay flat in 2021 at around 32,000 barrels of oil per day (bopd), while capital spending will likely be at the top of the $150m-$200m forecast range, up from $110m last year.
Chief executive Bill Higgs said the company was investing in “low-cost and high-margin” production, with the Sarta field coming online in November and three new appraisal wells being drilled in 2021.
Genel has in the past struggled to get paid by the Kurdish Regional Government (KRG), and is owed $159m in unpaid oil sales, equal to its entire 2020 revenue. Its reported profits were further knocked by an impairment of over $320m. Sell.
Last IC View: Sell, 82p, 26 Mar 2020
| GENEL ENERGY (GENL) | ||||
| ORD PRICE: | 187p | MARKET VALUE: | £ 519m | |
| TOUCH: | 186.4-187p | 12-MONTH HIGH: | 195p | LOW: 53p |
| DIVIDEND YIELD: | 5.8% | PE RATIO: | NA | |
| NET ASSET VALUE: | 335¢* | NET CASH: | $6m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2016 | 191 | -1.25 | -449 | nil |
| 2017 | 229 | 0.27 | 97.1 | nil |
| 2018 | 355 | -0.28 | -102 | nil |
| 2019 | 377 | 105 | 37.8 | 15.0 |
| 2020 | 160 | -417 | -152 | 15.0 |
| % change | -58 | - | - | - |
| Ex-div: | 13 May | |||
| Payment: | 14 Jun | |||
| £1 = $1.39 *Includes intangible assets of $699m, or 252ȼ a share | ||||
