There were plenty of familiar points in Genel Energy’s (GENL) half-year results to anyone who had glanced at its performance in the second half of 2018. Revenue and Ebitda numbers were the same ($194m and $167m, respectively) and there is still no deal with the Kurdistan authorities on the 100 per cent-owned Bina Bawi project.
An important distinction was that new chief executive Bill Higgs avoided a write-down, at least. Genel has seen plenty of operating profits dashed by revaluations, most recently $424m (£350m) for the Miran asset in last year’s final results, but the half-year results were clear of these bottom line deductions. Production was up 17 per cent year-on-year in the first half of 2019, to 37,400 barrels of oil per day (bopd), a similar level to the last quarter of 2018, and above full-year guidance of 36,900bopd.
The average sale price for the period was $66 per barrel (bbl), compared with $71/bbl a year ago. Mr Higgs said the cash generation in the half ($142m) meant Genel could up its shareholder returns and keep capital spending up. Capital expenditure for the full year will be at the higher end of the $150-$170m forecast.
The half-year dividend of 5¢ is the company’s second payout after 10¢ was handed over in June as a final dividend for 2018. Numis forecasts operating profit of $178m for 2019 and $147m in 2020.
| GENEL ENERGY (GENL) | ||||
| ORD PRICE: | 181.6p | MARKET VALUE: | £ 508m | |
| TOUCH: | 181.4-181.8p | 12-MONTH HIGH: | 302p | LOW: 151p |
| DIVIDEND YIELD: | 6.8% | PE RATIO: | na | |
| NET ASSET VALUE: | 491¢* | NET CASH: | $56m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2018 | 161 | 59.3 | 21.3 | nil |
| 2019 | 194 | 76.0 | 27.2 | 5.0 |
| % change | +20 | +28 | +28 | - |
| Ex-div: | 12 Dec | |||
| Payment: | 08 Jan | |||
| £1=$1.22 *Includes intangible assets of $796m, or 284¢ per share | ||||
