REG-Genel Energy PLC Genel Energy PLC: Unaudited results for the period ended 30 June 2025
Tue 07:02
============
Genel Energy PLC (GENL)
Genel Energy PLC: Unaudited results for the period ended 30 June 2025
05-Aug-2025 / 07:00 GMT/BST
══════════════════════════════════════════════════════════════════════════
5 August 2025
Genel Energy plc - Unaudited results for the period ended 30 June 2025
Paul Weir, Chief Executive of Genel, said:
“The Tawke PSC has delivered robust production into consistent domestic
market demand in the first half of 2025. Taken together with the cost
reductions undertaken in 2024, the core business has generated underlying
free cash flow.
Following the successful refinancing of our bond debt in April, our
significant cash holding has now increased to $225 million. This strong
balance sheet provides both optionality and the funding necessary for the
acquisition of new production assets and geographical diversification,
which remains a strategic priority for the business.
We are excited to have started work on Block 54 in Oman, and plan to begin
testing of the discovered hydrocarbon pay zones around the start of next
year, with results expected towards the end of the first quarter of 2026.
These results will then determine the best approach for assessing the
further potential of the licence for value realisation over the next 3
years.
Over a two-day period in July, the oil operations of a number of
international oil companies in the Kurdistan Region of Iraq suffered drone
attacks, with Tawke being one of the licences impacted. We are pleased to
report that no people were hurt. Recent events in the Middle East had
already resulted in a heightened state of security alert in Kurdistan and
site manning was minimised. The operator is assessing both the impact and
the appropriate forward production plan, with work ongoing to assess
damage, minimize presence of staff on location, enhance safety protocols,
and carry out repairs necessary for a full restart. We expect the impact
of the damage and the deferred production on our cash position to be
mitigated by continued focus on control of spend and insurance cover held
for incidents such as these. We continue to guide no significant change in
net cash at the end of the year.
We continue to work with peers and governments towards the resumption of
Kurdistan oil exports, and are encouraged by the increased level of
engagement between interested parties in recent weeks. We note that
detailed discussions are taking place in relation to several key issues
which could pave the way for an agreement that is acceptable to all
parties.”
Results summary ($ million unless stated)
H1 2025 H1 2024 FY 2024
Average Brent oil price ($/bbl) 72 84 81
Average realised price per barrel 33 34 35
Production (bopd, working interest ‘WI’) 19,600 19,510 19,650
Revenue 35.8 37.6 74.7
Production costs (9.4) (8.2) (17.6)
EBITDAX1 25.3 13.3 1.1
Operating loss (2.5) (13.6) (52.4)
Cash flow from operations 19.2 36.4 66.9
Capital expenditure 13.2 15.9 25.7
Free cash flow2 4.7 8.5 19.6
Cash 225.0 370.4 195.6
Total debt 92.0 248.0 65.8
Net cash3 134.4 125.5 130.7
Basic LPS from continuing operations (¢ per share) (1.3) (7.9) (22.5)
Dividend (¢ per share) - - -
1. EBITDAX is operating loss adjusted for the add back of depreciation
and amortisation, exploration expense, net write-off/impairment of oil
and gas assets and net ECL/reversal of ECL receivables
2. Free cash flow is reconciled on page 5
3. Reported cash less debt reported under IFRS (page 5)
Summary
• Tawke generated predictable production with consistent domestic sales
demand, resulting in working interest production of 19,600 bopd in H1
2025 (H1 2024: 19,510 bopd)
• Domestic sales price averaged $33/bbl for the period (H1 2024:
$34/bbl), with all cash due for domestic sales received before the end
of the period
• After the end of the period, there were drone attacks on a number of
Kurdistan oil operations, including Tawke where production was
temporarily stopped as a result of damage caused. The operator is
assessing the damage and is working on an appropriate plan to increase
production.
• Net cash of $134 million (31 December 2024: $131 million)
◦ Significant cash balance of $225 million (31 December 2024: $196
million)
◦ Bond debt of $92 million due in 2030 (31 December 2024: $66
million)
• Exits from the Sarta, Qara Dagh and Taq Taq licences have been
approved by the KRG with minimal residual liability exposure. We have
also exited the Lagzira licence in Morocco.
• Both receivables and payables balances with the KRG have reduced as a
result of the exit from Sarta, Qara Dagh and Taq Taq, with the net
balance of receivable of around $50 million
• A socially responsible contributor to the global energy mix:
◦ Portfolio carbon intensity under 14 kgCO2e/bbl, below the
industry average target
◦ The Genel20 Scholarship programme has entered its third year,
where Genel is providing university tuition funding for
undergraduates from the Kurdistan Region of Iraq
Outlook
• Following the impact of the drone attack on Tawke production, the
operator is developing a plan to expedite the resumption of optimal
production in a safe and efficient way, with work ongoing to determine
and test the best plan for production ramp up
• We expect the impact on cash of damage caused and lost production to
be mitigated by judicious cost control and insurance cover
• On Block 54 in Oman, following the Royal Decree granted in May, there
will be some direct capital investment this year as we work towards
the first phase, testing previously discovered hydrocarbon pay zones
• We reiterate our guidance of net cash at year-end expected to be about
the same as the start of the year.
• On access to exports, talks between the Kurdistan Regional Government
and Federal Government of Iraq and Ministry of Oil regarding the
Iraq-Türkiye Pipeline are ongoing, with the timing of the resumption
of exports on acceptable terms uncertain
Enquiries:
Genel Energy
+44 20 7659 5100
Luke Clements, CFO
Vigo Consulting
+44 20 7390 0230
Patrick d’Ancona
Genel will host a live presentation on the Investor Meet Company platform
on Wednesday 6 August at 1000 BST. The presentation is open to all
existing and potential shareholders. Questions can be submitted at any
time during the live presentation. Investors can sign up to Investor Meet
Company for free and add to meet Genel Energy PLC via:
1 https://www.investormeetcompany.com/genel-energy-plc/register-investor
This announcement includes inside information.
Disclaimer
This announcement contains certain forward-looking statements that are
subject to the usual risk factors and uncertainties associated with the
oil & gas exploration and production business. While the Company believes
the expectations reflected herein to be reasonable in light of the
information available to them at this time, the actual outcome may be
materially different owing to factors beyond the Company’s control or
within the Company’s control where, for example, the Company decides on a
change of plan or strategy. Accordingly, no reliance may be placed on the
figures contained in such forward looking statements. The information
contained herein has not been audited and may be subject to further
review.
CEO STATEMENT
The Tawke licence, operated by DNO, continues to deliver exceptional,
consistent performance with efficient activity and investment maintaining
production at around gross 80,000 bopd in the first half of the year.
Operating costs of under $4/bbl and significant reserves mean that this
asset will continue to provide significant cash generation well into the
future.
At first half average realised domestic sales prices of around $33/bbl,
our 25% interest in the licence has generated significant free cash flow
that has more than covered our spend.
With discussions on access to exports seeming to have reached a stage of
progression that we have not seen previously, we remain focused on working
hard with fellow stakeholders to convert this position into accessing
exports on the right terms that provide appropriate confidence that we
will be paid in line with our contractual terms. This, together with
unlocking appropriate investment activity, has the potential to more than
double the revenue generation of this world class licence.
We are pleased to report the conclusion of our reorganisation of our
Kurdistan business – in the first half of the year we finalised the terms
of our previously announced divestment of the unprofitable Taq Taq PSC,
and our exit from each of the Sarta and Qara Dagh PSCs. This has removed
ongoing cost from the business for no new cost and minimal remaining
exposure.
We are now focused on our exciting new Block 54 licence in Oman, where we
have been working with the operator OQEP to develop the first phase of our
activity plan. This will involve testing existing discovered hydrocarbon
pay zones through the re-entry of an existing well, with our current
expectation that the associated activity will recommence towards the end
of the year with results to follow in Q1 2026.
The activity plan for the remainder of the three-year first phase of the
exploration period will be matured on the back of these initial results
but will include the drilling of 2 new wells and the acquisition of 3D
seismic by May 2028.
In Somaliland we continue to work towards the right operational and
commercial conditions to invest, with our partner OPIC (Taiwan), in the
delivery of an exploration well on the highly prospective SL10B13 licence.
In Morocco we have completed the relinquishment of the Lagzira licence
having completed the minimum work obligations.
We are pleased to have generated $5 million of free cash flow in the first
half of the year, and report cash of $225 million, with our bond maturity
now moved out to 2030. This provides us with appropriate optionality and
funding to deliver on our strategic objectives.
OPERATING REVIEW
Tawke PSC (Tawke and Peshkabir fields)
Gross production from the Tawke PSC has been maintained at consistent
levels. This has been achieved by careful and diligent subsurface and
operations management. Gross production for the first half of 2025 was
78,400 bopd, well below what we would expect to produce if exports were
available.
Gross Gross Gross WI WI
(bopd) production production production production production
Q1 2025 Q2 2025 H1 2025 H1 2025 H1 2024
Tawke 82,081 74,760 78,400 19,600 19,510
Realised price in the domestic market averaged $33/bbl over the course of
the period compared to average Brent of $72/bbl. The Company has generated
revenue of $36 million from Tawke entitlement in the period.
The asset delivered robust production throughout the first half of the
year, with reservoir and operator performance continuing to be
exceptional. We will work with the operator to evaluate appropriate and
capital efficient investment in order to ensure the production levels meet
our needs given the external environment.
Oman
Royal Decree issued on 8 May 2025. We are working with OQEP, the operator,
on planned activity for the second half of the year, with an expectation
of testing activity to take place around the end of the year, with results
expected towards the end of the first quarter of 2026.
Somaliland – SL10B13
On SL10B13 in Somaliland, we continue to work towards achieving conditions
that support drilling of the highly prospective Toosan-1 exploration
well.
Morocco
As announced in Q1, we informed ONHYM that we will not be extending beyond
the Initial Period of the Lagzira licence to the First Extension Period
and consequently abandoned the licence in June 2025, with no incremental
costs incurred.
FINANCIAL RESULTS
(all figures $ million) H1 2025 H1 2024 FY 2024
Brent average oil price ($/bbl) 72 84 81
Field level realised price per barrel ($/bbl) 33 34 35
Average price per working interest barrel ($/bbl) 10 11 10
Working interest production (bopd) 19,600 19,510 19,650
Cost oil entitlement revenue 18.5 18.4 35.1
Profit oil entitlement revenue 17.3 19.2 39.6
Revenue 35.8 37.6 74.7
Production costs (9.4) (8.2) (17.6)
Production capex (12.5) (13.4) (23.0)
G&A (excl. non-cash) (8.1) (14.2) (22.2)
Production business netback 5.8 1.8 11.9
Pre-production capex (0.7) (2.5) (2.7)
Net cash interest1 0.4 (2.3) (7.0)
Net expense from discontinued operations (0.4) (3.1) (10.2)
Working capital and other (0.4) 14.6 27.6
Free cash flow 4.7 8.5 19.6
Purchases of own shares - (1.5) (2.4)
Settlement of 2025 bonds (65.8) - (185.0)
Issuance of new 2030 bonds 90.5 - -
Net change in cash 29.4 7.0 (167.8)
Opening cash 195.6 363.4 363.4
Cash 225.0 370.4 195.6
Debt (90.6) (244.9) (64.9)
Net cash 134.4 125.5 130.7
1 Net cash interest is bond interest payable less bank interest income
(see note 5)
Tawke production continued to be robust and domestic sales demand
reliable, resulting in average production for the period of 19,600 bopd,
in line with the comparative period (H1 2024: 19,510 bopd). All production
has been sold domestically at an average price of $33/bbl (H1 2024:
$34/bbl), which under the PSC translates into $10 per working interest
barrel produced and revenue of $36 million (H1 2024: $38 million).
Production costs of $9 million (H1 2024: $8 million) and production capex
of $13 million (H1 2024: $13 million) were broadly in line with the prior
period. Cash general and administration costs were $8 million, lower than
last period (H1 2024: $14 million) as a result of this period benefitting
from cost reductions and no material arbitration costs.
The resulting production business netback of $6 million is an improvement
on $2 million generated in the first half last year.
Interest income of $4 million (H1 2024: $9 million) and bond interest
expense of $4 million (H1 2024: $14 million) decreased in line with cash
and bond balances.
Free cash flow of $5 million is lower than $9 million last half year,
which benefitted from positive working capital movements of $15 million.
The Company called its existing bonds in April and issued a new bond,
increasing cash by $25 million.
EBITDAX and cash flow
(all figures $ million) H1 2025 H1 2024 FY 2024
EBITDAX 25.3 13.3 1.1
Interest received 4.4 9.2 15.8
Working capital (10.5) 13.9 50.0
Operating cash flow 19.2 36.4 66.9
Producing asset cost recovered capex (9.7) (12.1) (21.7)
Development capex - (1.7) -
Exploration and appraisal capex (1.4) (2.2) (3.1)
Interest and other (3.4) (11.9) (22.5)
Free cash flow 4.7 8.5 19.6
EBITDAX of $25 million was higher than comparative period (H1 2024: $13
million) mainly due to partial reversal of arbitration cost award accrual
of $9 million and lower general and administration costs. EBITDAX is
presented in order to illustrate the cash operating profitability of the
Company and excludes the impact of costs attributable to exploration
activity, which tend to be one-off in nature, and the non-cash costs
relating to depreciation, amortisation, impairments, write-offs.
Free cash flow was $5 million (H1 2024: $9 million). Free cash flow is
presented in order to illustrate the free cash generated for equity.
Cash and debt
Cash of $225 million increased from the start of the year (31 December
2024: $196 million) as a result of positive free cash flow and an increase
in bond debt.
The Company monitors its cash position, cash forecasts and liquidity on a
regular basis. The Company holds surplus cash in treasury bills, time
deposits or liquidity funds with a number of major financial institutions.
Suitability of banks is assessed using a combination of sovereign risk,
credit default swap pricing and credit rating.
The nominal value of bond debt increased to $92 million (31 December 2024:
$66 million). The bond debt matures in April 2030 and has two financial
covenant maintenance tests:
Financial covenant Test H1 2025
Equity ratio (Total equity/Total assets) > 30% 64%
Minimum liquidity > $20 million $225 million
Net assets
Net assets at 30 June 2025 were $361 million (31 December 2024: $357
million) and consist primarily of oil and gas assets of $261 million (31
December 2024: $273 million), net trade receivables of $76 million (31
December 2024: $85 million) and net cash of $134 million (31 December
2024: $131 million).
Going concern
The Directors have assessed that the Company’s forecast liquidity provides
adequate headroom over forecast expenditure for the 12 months following
the signing of the half-year condensed consolidated financial statements
for the period ended 30 June 2025 and consequently that the Company is
considered a going concern. Further explanation is provided in note 1 to
the financial statements.
The Company has net cash of $134 million at the balance sheet date.
Principal risks and uncertainties
The Company is exposed to a number of risks and uncertainties that may
seriously affect its performance, future prospects or reputation and may
threaten its business model, future performance, solvency or liquidity.
The following risks are the principal risks and uncertainties of the
Company, which have not changed since year-end 2024: KRI Regional Oil &
Gas Sector Risk, notably the current closure of the Iraq-Türkiye pipeline;
Commercial Terms & Payment for Kurdish Sales, lack of oil export payments,
as well as the recovery of the $88 million outstanding gross receivable;
Development & Recovery of Oil Reserves; Reserves Replacement & Additions;
New Business Activity; Capital Structure & Financing; Attract & Maintain
Organisational Capability; Environmental, Social & Governance
Expectations; Regulatory & Compliance Failure; and Health & Safety risks.
Further detail on these risks was provided in the 2024 Annual Report.
Statement of directors’ responsibilities
The directors confirm that these condensed interim financial statements
have been prepared in accordance with International Accounting Standard
34, ‘Interim Financial Reporting’, as adopted by the European Union and
that the interim management report includes a true and fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
• an indication of important events that have occurred during the first
six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties
for the remaining six months of the financial year; and
• material related-party transactions in the first six months and any
material changes in the related-party transactions described in the
last annual report.
The directors of Genel Energy plc are listed in the Genel Energy plc
Annual Report for 31 December 2024. A list of current directors is
maintained on the Genel Energy plc website: 2 www.genelenergy.com
By order of the Board
Paul Weir
CEO
4 August 2025
Luke Clements
CFO
4 August 2025
Disclaimer
This announcement contains certain forward-looking statements that are
subject to the usual risk factors and uncertainties associated with the
oil & gas exploration and production business. Whilst the Company believes
the expectations reflected herein to be reasonable in light of the
information available to them at this time, the actual outcome may be
materially different owing to factors beyond the Company’s control or
within the Company’s control where, for example, the Company decides on a
change of plan or strategy. Accordingly, no reliance may be placed on the
figures contained in such forward looking statements.
Condensed consolidated statement of comprehensive income
For the period ended 30 June 2025
Audited
Unaudited Unaudited
Year
6 months to 30 6 months to 30
June 2024 to 31
June 2025
Dec 2024
Note $m $m $m
Revenue 3 35.8 37.6 74.7
Production costs 4 (9.4) (8.2) (17.6)
Depreciation and amortisation 4 (25.7) (25.7) (52.1)
of oil assets
Gross profit 0.7 3.7 5.0
Exploration expense 4 (0.7) (1.1) (2.7)
Arbitration cost accrual 4 9.1 - (32.2)
(Expected credit loss (‘ECL’))
of trade receivables/Reversal 4 (1.3) - 1.4
of ECL
General and administrative 4 (10.3) (16.2) (23.9)
costs
Operating loss (2.5) (13.6) (52.4)
Operating loss is comprised
of:
EBITDAX 25.3 13.3 1.1
Depreciation and amortisation 4 (25.8) (25.8) (52.2)
Exploration expense 4 (0.7) (1.1) (2.7)
(Expected credit loss (‘ECL’))
of trade receivables/Reversal 4 (1.3) - 1.4
of ECL
Finance income 5 4.4 9.2 15.8
Bond interest expense 5 (4.0) (11.5) (18.2)
Net other finance expense 5 (1.4) (1.7) (7.3)
Loss before income tax (3.5) (17.6) (62.1)
Income tax expense 6 - - (0.1)
Loss and total comprehensive
expense from continuing (3.5) (17.6) (62.2)
operations
Profit / (Loss) from 7 4.1 (4.3) (14.7)
discontinued operations
Profit / (Loss) and total
comprehensive income / 0.6 (21.9) (76.9)
(expense)
Attributable to:
Owners of the parent 0.6 (21.9) (76.9)
0.6 (21.9) (76.9)
(Loss) / Earnings per ordinary ¢ ¢ ¢
share
From continuing operations:
Basic 8 (1.3) (6.4) (22.5)
Diluted 8 (1.3) (6.4) (22.5)
From continuing and
discontinued operations:
Basic 8 0.2 (7.9) (27.8)
Diluted 8 0.2 (7.9) (27.8)
Adjusted Basic EPS / (LPS)1 8 0.3 (7.9) (27.6)
1Adjusted basic EPS / (LPS) is profit / (loss) and total comprehensive
income / (expense) adjusted for the add back of net ECL/reversal of ECL of
receivables, and impairment loss on Taq Taq held for sale asset divided by
weighted average number of ordinary shares.
Previous period’s figures have been restated for discontinued operation
disclosure in relation to Taq Taq PSC (note 7).
Condensed consolidated balance sheet
At 30 June 2025
Unaudited Unaudited Audited 31
Dec 2024
30 June 2025 30 June 2024
Note $m $m $m
Assets
Non-current assets
Intangible assets 9 80.6 83.8 82.3
Property, plant and equipment 10 182.4 237.1 191.1
Trade and other receivables 11 59.4 66.5 60.9
322.4 387.4 334.3
Current assets
Trade and other receivables 11 18.7 30.2 27.2
Cash and cash equivalents 225.0 370.4 195.6
243.7 400.6 222.8
Assets in disposal groups 7 - - 41.8
classified as held for sale
Total assets 566.1 788.0 598.9
Liabilities
Non-current liabilities
Trade and other payables (1.6) (0.4) (0.2)
Deferred income - (9.0) -
Provisions (25.7) (44.1) (25.1)
Interest bearing loans 12 (90.6) (244.9) -
(117.9) (298.4) (25.3)
Current liabilities
Trade and other payables (87.3) (70.1) (109.6)
Interest bearing loans - - (64.9)
Deferred income - (6.0) -
(87.3) (76.1) (174.5)
Liabilities directly
associated with assets in 7 - - (41.8)
disposal groups classified as
held for sale
Total liabilities (205.2) (374.5) (241.6)
Net assets 360.9 413.5 357.3
Owners of the parent
Share capital 43.8 43.8 43.8
Share premium account 3,863.9 3,863.9 3,863.9
Accumulated losses (3,546.8) (3,494.2) (3,550.4)
Total equity 360.9 413.5 357.3
Condensed consolidated statement of changes in equity
For the period ended 30 June 2025
Share capital Share Accumulated Total
premium losses equity
$m
$m $m $m
At 1 January 2024 43.8 3,863.9 (3,473.8) 433.9
Loss and total - - (21.9) (21.9)
comprehensive expense
Contributions by and
distributions to owners
Share-based payments - - 3.0 3.0
Purchase of own shares - - (1.5) (1.5)
for employee share plan
At 30 June 2024 (Unaudited) 43.8 3,863.9 (3,494.2) 413.5
At 1 January 2024 43.8 3,863.9 (3,473.8) 433.9
Loss and total - - (76.9) (76.9)
comprehensive expense
Contributions by and
distributions to owners
Share-based payments - - 2.7 2.7
Purchase of own shares - - (2.4) (2.4)
for employee share plan
At 31 December 2024
(Audited) and 1 January 43.8 3,863.9 (3,550.4) 357.3
2025
Profit and total - - 0.6 0.6
comprehensive income
Contributions by and
distributions to owners
Share-based payments - - 3.0 3.0
At 30 June 2025 43.8 3,863.9 (3,546.8) 360.9
(Unaudited)
Condensed consolidated cash flow statement
For the period ended 30 June 2025
Audited
Unaudited Unaudited
Note 31 Dec
30 June 2025 30 June 2024
2024
$m $m $m
Cash flows from operating
activities
Profit / (Loss) for the period / 0.6 (21.9) (76.9)
year
Adjustments for:
Net finance expense 5,7 1.1 5.2 12.1
Taxation 6 - - 0.1
Depreciation and amortisation 4 25.8 25.8 52.2
Exploration expense 4 0.7 1.1 -
Reversal of provisions - - (3.8)
Net impairments, 4,7 (3.3) - 0.8
write-off/(write-back)
Other non-cash items (royalty 2.1 1.8 1.9
income & share-based payment cost)
Changes in working capital:
Decrease in trade and other 0.8 1.8 2.5
receivables
(Decrease) / increase in trade (12.9) 13.5 62.3
and other payables
Cash generated from operations 14.9 27.3 51.2
Interest received 5 4.4 9.2 15.8
Taxation paid (0.1) (0.1) (0.1)
Net cash generated from operating 19.2 36.4 66.9
activities
Cash flows from investing
activities
Additions of intangible assets (1.4) (2.2) (3.1)
Additions of property, plant and (9.7) (13.8) (21.7)
equipment
Net cash used in investing (11.1) (16.0) (24.8)
activities
Cash flows from financing
activities
Purchase of own shares - (1.5) (2.4)
Bond repayment 12 (65.8) - (185.0)
Issuance of new bond 12 90.5 - -
Lease payments (0.4) (0.4) (0.7)
Interest paid (3.0) (11.5) (21.8)
Net cash generated from / (used in) 21.3 (13.4) (209.9)
financing activities
Net increase / (decrease) in cash 29.4 7.0 (167.8)
and cash equivalents
Cash and cash equivalents at the 195.6 363.4 363.4
beginning of the period / year
Cash and cash equivalents at the 225.0 370.4 195.6
end of the period / year
Notes to the consolidated financial statements
1. Basis of preparation
Genel Energy Plc – registration number: 107897 (the Company), is a public
limited company incorporated and domiciled in Jersey with a listing on the
London Stock Exchange. The address of its registered office is 26 New
Street, St Helier, Jersey, JE2 3RA.
The half-year condensed consolidated financial statements for the six
months ended 30 June 2025 are unaudited and have been prepared in
accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority, with Article of 106 of the Companies (Jersey)
Law 1991 and with IAS 34 ‘Interim Financial Reporting’ as adopted by the
European Union and were approved for issue on 4 August 2025. They do not
comprise statutory accounts within the meaning of Article 105 of the
Companies (Jersey) Law 1991. The half-year condensed consolidated
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2024, which have been
prepared in accordance with IFRS as adopted by the European Union. The
same accounting policies and methods of computation are followed in the
interim financial report as compared with the 31 December 2024 annual
financial statements. The annual financial statements for the year ended
31 December 2024 were approved by the board of directors on 17 March 2025.
The report of the auditors was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under the Article 113A
of Companies (Jersey) Law 1991. The financial information for the year to
31 December 2024 has been extracted from the audited accounts.
Items included in the financial information of each of the Company's
entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The
consolidated financial statements are presented in US dollars to the
nearest million ($ million) rounded to one decimal place, except where
otherwise indicated.
Going concern
The Company regularly evaluates its financial position, cash flow
forecasts and its compliance with financial covenants by considering
multiple combinations of oil price, discount rates, production volumes,
payments, capital and operational spend scenarios.
The Company has reported cash of $225 million, with debt of $92 million
maturing in April 2030 and significant headroom on both the equity ratio
and minimum liquidity financial covenants.
The International Chamber of Commerce in Paris ruling in favour of Iraq in
a long running arbitration case against Türkiye concerning the
Iraqi-Turkish pipeline agreement signed in 1973, resulted in exports
through the pipeline being suspended from 25 March 2023. As a result, the
Company is currently selling in the domestic market at lower prices and
lower volumes than are available from exports, with significantly reduced
cash generation.
The Directors have assessed that, even with continued suspension of
exports, the Company’s forecast liquidity provides adequate headroom over
its forecast expenditure for the 12 months following the signing of the
half-year condensed consolidated financial statements for the period ended
30 June 2025 and consequently that the Company is considered a going
concern.
2. Summary of material accounting policies
The accounting policies adopted in preparation of these half-year
condensed consolidated financial statements are consistent with those used
in preparation of the annual financial statements for the year ended 31
December 2024.
The preparation of these half-year condensed consolidated financial
statements in accordance with IFRS requires the Company to make judgements
and assumptions that affect the reported results, assets and liabilities.
Where judgements and estimates are made, there is a risk that the actual
outcome could differ from the judgement or estimate made. The Company has
assessed the following as being areas where changes in judgements or
estimates could have a significant impact on the financial statements.
Significant estimates
The following are the critical estimates that the directors have made in
the process of applying the Group accounting policies and that have the
most significant effect on the amounts recognised in the financial
statements.
Estimation of hydrocarbon reserves and resources and associated production
profiles and costs
Estimates of hydrocarbon reserves and resources are inherently imprecise
and are subject to future revision. The Company’s estimation of the
quantum of oil and gas reserves and resources and the timing of its
production, cost and monetisation impact the Company’s financial
statements in a number of ways, including: testing recoverable values for
impairment; the calculation of depreciation, amortisation and assessing
the cost and likely timing of decommissioning activity and associated
costs. This estimation also impacts the assessment of going concern.
Proved and probable reserves are estimates of the amount of hydrocarbons
that can be economically extracted from the Company’s assets. The Company
estimates its reserves using standard recognised evaluation techniques
which are based on Petroleum Resources Management System 2018. Assets
assessed as having proven and probable reserves are generally classified
as property, plant and equipment as development or producing assets and
depreciated using the units of production methodology. The Company
considers its best estimate for future production and quantity of oil
within an asset based on a combination of internal and external
evaluations and uses this as the basis of calculating depreciation and
amortisation of oil and gas assets and testing for impairment under IAS
36.
Hydrocarbons that are not assessed as reserves are considered to be
resources and the related assets are classified as exploration and
evaluation assets. These assets are expenditures incurred before technical
feasibility and commercial viability is demonstrable. Estimates of
resources for undeveloped or partially developed fields are subject to
greater uncertainty over their future life than estimates of reserves for
fields that are substantially developed and being depleted and are likely
to contain estimates and judgements with a wide range of possibilities.
These assets are considered for impairment under IFRS 6.
Once a field commences production, the amount of proved reserves will be
subject to future revision once additional information becomes available
through, for example, the drilling of additional wells or the observation
of long-term reservoir performance under producing conditions. As those
fields are further developed, new information may lead to revisions.
Assessment of reserves and resources are determined using estimates of oil
and gas in place, recovery factors and future commodity prices, the latter
having an impact on the total amount of recoverable reserves. Where the
Company has updated its estimated reserves and resources any required
disclosure of the impact on the financial statements is provided in the
following sections.
Estimation of oil and gas asset values (note 9 and 10)
Estimation of the asset value of oil and gas assets is calculated from a
number of inputs that require varying degrees of estimation. Principally
oil and gas assets are valued by estimating the future cash flows based on
a combination of reserves and resources, costs of appraisal, development
and production, production profile, climate-related risks, pipeline
reopening and future sales price and discounting those cash flows at an
appropriate discount rate.
Future costs of appraisal, development and production are estimated taking
into account the level of development required to produce those reserves
and are based on past costs, experience and data from similar assets in
the region, future petroleum prices and the planned development of the
asset. However, actual costs may be different from those estimated.
Discount rate is assessed by the Company using various inputs from market
data, external advisers and internal calculations. A post tax nominal
discount rate of 14% (HY & YE 2024: 14%) derived from the Company’s
weighted average cost of capital (WACC) is used when assessing the
impairment testing of the Company’s oil assets at period end. Risking
factors are also used alongside the discount rate when the Company is
assessing exploration and appraisal assets.
Estimation of future oil price and netback price
The estimation of future oil price has a significant impact throughout the
financial statements, primarily in relation to the estimation of the
recoverable value of property, plant and equipment and intangible assets.
It is also relevant to the assessment of ECL and going concern.
The Company’s assumption of average Brent oil price for future years is
based on a range of publicly available market estimates and is summarised
in the table below.
$/bbl 2025 2026 2027 2028 2029
HY2025 assumption 65 65 70 75 75
FY2024 assumption 75 75 75 75 75
HY2024 assumption 80 75 75 75 75
The netback price is used to value the Company’s revenue, trade
receivables and its forecast cash flows used for impairment testing and
viability. It is the aggregation of reference oil price average less
transportation costs, handling costs and quality adjustments.
Effective from 1 September 2022, sales have been priced by the MNR under a
new pricing formula based on the realised sales price for KRI blend crude
(‘KBT’) during the delivery month, rather than on dated Brent. The Company
has not agreed on this new pricing formula and continued to invoice on
Brent. The Company does not have direct visibility on the components of
the netback price realised for its oil because sales are managed by the
KRG, but the latest payments were based on the netback price provided by
the KRG. Therefore, the export revenue from 1 September 2022 was
recognised in accordance with IFRS15 using KBT pricing, resulting in the
recognition of $10 million less of revenue.
The export pipeline closure in March 2023 has resulted in volumes sold in
the domestic market starting in June 2023 on a cash and carry basis at
lower realised oil prices than previously achieved through export.
A sensitivity analysis of netback price on producing asset values has been
provided in note 10. Where relevant, for estimates of future domestic
sales price the Company uses $35/bbl.
The Company has also taken the change into account in its assessment of
impairment reversal and considered it appropriate not to reverse any
previous impairments.
Estimation of the recoverable value of deferred receivables and trade
receivables (note 11)
As of 30 June 2025, the Company is owed six months of payments for the
sales from October 2022 to March 2023. Management has compared the
carrying value of trade receivables with the present value of the
estimated future cash flows based on a number of collection scenarios. The
ECL is the weighted average of these scenarios and is recognised in the
income statement. The weighting is applied based on expected repayment
timing. The result of this assessment is an ECL provision of $11.8 million
(31 December 2024: $11.7 million). Sensitivities of the ECL has been
provided in note 11.
Decommissioning provision
Decommissioning provisions are calculated from a number of inputs such as
costs to be incurred in removing production facilities and site
restoration at the end of the producing life of each field which is
considered as the mid-point of a range of cost estimation. These inputs
are based on the Company’s best estimate of the expenditure required to
settle the present obligation at the end of the period inflated at 2%
(2024: 2%) and discounted at 4% (2024: 4%). 10% increase in cost estimates
would increase the existing provision by c.$2 million and 1% increase in
discount rate would decrease the existing provision by c.$3 million, the
combined impact would be c.$1 million. The cash flows relating to the
decommissioning and abandonment provision are expected to occur in 2036.
Arbitration costs award
The consolidated accounts include an accrual of $27 million relating to a
potential costs award in relation to the arbitration claim made by the KRG
against a subsidiary of the Group, Genel Energy Miran Bina Bawi Limited
(‘GEMBBL’). This has reduced from $36 million accrued at the end of last
year as a result of the actual award made in April being lower than the
amount provisionally accrued. In May 2025, GEMBBL appealed this costs
award.
Other estimates
The following are the other estimates that the directors have made in the
process of applying the Company’s accounting policies and that have effect
on the amounts recognised in the financial statements.
Taxation
Under the terms of KRI PSC's, corporate income tax due is paid on behalf
of the Company by the KRG from the KRG's own share of revenues, resulting
in no corporate income tax payment required or expected to be made by the
Company. It is not known at what rate tax is paid, but it is estimated
that the current tax rate would be between 15% and 40%. If this was known,
it would result in a gross up of revenue with a corresponding debit entry
to taxation expense with no net impact on the income statement or on cash.
In addition, it would be necessary to assess whether any deferred tax
asset or liability was required to be recognised.
New standards
The following new accounting standards, amendments to existing standards
and interpretations are effective on 1 January 2025 and have been endorsed
in 2024: Amendments to IAS 21 The Effects of Changes in Foreign Exchange
Rates: Lack of Exchangeability (issued on 15 August 2023). The following
new accounting standards, amendments to existing standards and
interpretations have been issued but are not yet effective and/or have not
yet been endorsed by the EU: IFRS 19 Subsidiaries without Public
Accountability: Disclosures (issued on 9 May 2024), IFRS 18 Presentation
and Disclosure in Financial Statements (issued on 9 April 2024), Contracts
Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7
(issued on 18 December 2024), Annual Improvements Volume 11 (issued on 18
July 2024), Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 and IFRS 7) (issued on 30 May 2024).
Nothing has been early adopted, and these standards are not expected to
have a material impact on the Company’s results or financials statement
disclosures in the periods they become effective except for IFRS 18 which
will impact the presentation and disclosure in the financial statements.
3. Segmental information
The Company has two reportable business segments: Production and
Pre-production. Capital allocation decisions for the production segment
are considered in the context of the cash flows expected from the
production and sale of crude oil. The production segment is comprised of
the producing fields on the Tawke PSC (Tawke and Peshkabir fields) which
are located in the KRI and currently make local sales only to the local
buyers. The pre-production segment is comprised of exploration activity,
principally located in Somaliland, Morocco (exited in June 2025) and Oman.
‘Other’ includes corporate assets, liabilities and costs, elimination of
intercompany receivables and intercompany payables, which are non-segment
items.
For the 6-month period ended 30 June 2025
Pre-production Total
Production Other
$m $m $m $m
Revenue from contracts with 35.8 - - 35.8
customers (local)
Cost of sales (35.1) - - (35.1)
Gross profit 0.7 - - 0.7
Exploration expense - (0.7) - (0.7)
ECL of trade receivables (1.3) - - (1.3)
Arbitration cost accrual - - 9.1 9.1
General and administrative costs - - (10.3) (10.3)
Operating loss (0.6) (0.7) (1.2) (2.5)
Operating loss is comprised of
EBITDAX 26.4 - (1.1) 25.3
Depreciation and amortisation (25.7) - (0.1) (25.8)
Exploration expense - (0.7) - (0.7)
ECL of trade receivables (1.3) - - (1.3)
Finance income - - 4.4 4.4
Bond interest expense - - (4.0) (4.0)
Other finance expense (0.4) - (1.0) (1.4)
Loss before income tax from (1.0) (0.7) (1.8) (3.5)
continuing operations
Profit from discontinued 4.1 - - 4.1
operations
Profit / (Loss) before income 3.1 (0.7) (1.8) 0.6
tax
Capital expenditure 12.5 0.7 - 13.2
Total assets 313.9 27.0 225.2 566.1
Total liabilities (75.8) (0.2) (129.2) (205.2)
Sarta and Taq Taq PSC figures have been disclosed as discontinued
operation (note 7).
Total assets and liabilities in the other segment are predominantly cash
and debt balances, and includes assets and liabilities relating to Sarta,
Qara Dagh, Miran and Bina Bawi PSCs which have been exited in prior years.
For the 6-month period ended 30 June 2024
Pre-production Total
Production Other
$m $m $m $m
Revenue from contracts with 37.6 - - 37.6
customers (local)
Cost of sales (33.9) - - (33.9)
Gross profit 3.7 - - 3.7
Exploration expense - (1.1) - (1.1)
General and administrative costs - - (16.2) (16.2)
Operating profit / (loss) 3.7 (1.1) (16.2) (13.6)
Operating profit / (loss) is
comprised of
EBITDAX 29.4 - (16.1) 13.3
Depreciation and amortisation (25.7) - (0.1) (25.8)
Exploration expense - (1.1) - (1.1)
Finance income - - 9.2 9.2
Bond interest expense - - (11.5) (11.5)
Other finance expense (0.5) - (1.2) (1.7)
Profit / (Loss) before income 3.2 (1.1) (19.7) (17.6)
tax from continuing operations
Loss from discontinued (4.3) - - (4.3)
operations
Loss before income tax (1.1) (1.1) (19.7) (21.9)
Capital expenditure 13.4 2.5 - 15.9
Total assets 403.9 28.6 355.5 788.0
Total liabilities (111.1) (7.0) (256.4) (374.5)
Sarta and Taq Taq PSC figures have been disclosed as discontinued
operation (note 7).
Total assets and liabilities in the other segment are predominantly cash
and debt balances, and includes assets and liabilities relating to Sarta,
Qara Dagh, Miran and Bina Bawi PSCs which have been exited in prior years.
For the 12-month period ended 31 December 2024
Total
Production Pre-production Other
$m $m $m $m
Revenue from contracts with 74.7 - - 74.7
customers (domestic)
Cost of sales (69.7) - - (69.7)
Gross profit 5.0 - - 5.0
Exploration expense - (2.7) - (2.7)
Arbitration cost accrual - - (36.0) (36.0)
Reversal of accruals and - - 3.8 3.8
provisions
Reversal of ECL of trade 1.4 - - 1.4
receivables
General and administrative - - (23.9) (23.9)
costs
Operating profit / (loss) 6.4 (2.7) (56.1) (52.4)
Operating profit / (loss) is
comprised of
EBITDAX 57.1 - (56.0) 1.1
Depreciation and amortisation (52.1) - (0.1) (52.2)
Reversal of ECL of trade 1.4 - - 1.4
receivables
Exploration expense - (2.7) - (2.7)
Finance income - - 15.8 15.8
Bond interest expense - - (18.2) (18.2)
Net other finance expense (1.0) - (6.3) (7.3)
Profit / (Loss) before income 5.4 (2.7) (64.8) (62.1)
tax from continuing operations
Loss from discontinued (14.7) - - (14.7)
operations
Loss before income tax (9.3) (2.7) (64.8) (76.8)
Capital expenditure 23.0 2.7 - 25.7
Total assets 373.8 26.5 198.6 598.9
Total liabilities (117.6) (0.3) (123.7) (241.6)
Sarta and Taq Taq PSC figures have been disclosed as discontinued
operation (note 7).
Total assets and liabilities in the other segment are predominantly cash
and debt balances, and includes assets and liabilities relating to Sarta,
Qara Dagh, Miran and Bina Bawi PSCs which have been exited in prior years.
4. Operating loss
6 months to 6 months to
30 June 30 June Year to 31
December 2024
2025 2024
$m $m $m
Production costs (9.4) (8.2) (17.6)
Depreciation of oil and gas
property, plant and equipment (excl. (23.0) (23.0) (46.6)
RoU assets)
Amortisation of oil and gas (2.7) (2.7) (5.5)
intangible assets
Cost of sales (35.1) (33.9) (69.7)
Exploration expense (0.7) (1.1) (2.7)
Reversal of ECL of trade receivables - - 1.4
(note 2,11)
ECL of trade receivables (note 2,11) (1.3) - -
Net (ECL) / reversal of ECL of (1.3) - 1.4
receivables
Arbitration cost accrual 9.1 - (36.0)
Reversal of provisions - - 3.8
Arbitration cost 9.1 - (32.2)
Corporate cash costs (3.5) (7.6) (13.3)
Other operating costs (4.6) (6.7) (8.6)
Corporate share-based payment (2.1) (1.8) (1.9)
expense
Depreciation and amortisation of (0.1) (0.1) (0.1)
corporate assets (excl. RoU assets)
General and administrative expenses (10.3) (16.2) (23.9)
5. Finance expense and income
6 months to 30 6 months to 30
June June Year to 31
December 2024
2025 2024
$m $m $m
Bond interest (4.0) (11.5) (18.2)
Loss on bond buybacks - - (4.6)
Other finance expense (1.4) (1.7) (2.7)
(non-cash)
Finance expense (5.4) (13.2) (25.5)
Bank interest income 4.4 9.2 15.8
Finance income 4.4 9.2 15.8
Net finance expense (1.0) (4.0) (9.7)
Bond interest payable is the cash interest cost of the Company’s bond
debt. Other finance expense (non-cash) primarily relates to the discount
unwind on the bond and the asset retirement obligation provision.
6. Income tax expense
Current tax expense is incurred on profits of service companies. Under the
terms of the KRI PSCs, the Company is not required to pay any cash
corporate income taxes as explained in note 2.
7. Assets and liabilities held for sale and discontinued operations
On 24 December 2024, the Company entered into a sale agreement to dispose
its share of rights, benefits, liabilities and obligations in Taq Taq PSC
to its partner. The transaction was subject to Kurdistan Regional
Government (‘KRG’) approval. These operations, which were expected to be
sold within 12 months, had been classified as a disposal group held for
sale and presented separately in the consolidated balance sheet as at 31
December 2024. Following the KRG approval in May 2025, the assets and
liabilities held for sale were removed.
The major classes of assets and liabilities comprising the operations
classified as held for sale are as follows:
6 months to 30 6 months to
June 30 June Year to 31
December 2024
2025 2024
$m $m $m
Property, plant and equipment - - 32.5
(note 1,10)
Trade receivables, net of ECL - - 9.3
(note 11)
Assets classified as held for - - 41.8
sale
Other payables and accruals - - 4.8
Deferred income (note 14) - - 15.8
Provisions (note 15) - - 21.2
Total liabilities associated with
assets classified as held for - - 41.8
sale
Net assets of disposal group - - -
Sarta PSC was terminated on 1 December 2023. On 20 April 2025, a
Settlement, Relinquishment, and Termination Agreement (‘RTA’) was signed
between the Kurdistan Regional Government of Iraq (‘KRG’), Genel Energy
Sarta Ltd. and Chevron Iraq (Sarta) Ltd. (together ‘Contractors’). As per
the agreement, the KRG released the contractors from liabilities owed to
the KRG and the Contractors released the KRG from all liabilities owed to
the contractors. Therefore, all receivables and payables related to Sarta
PSC has been written off resulting with c.$4 million profit in the period.
The results of the discontinued operations from Taq Taq and Sarta, which
have been included in the loss for the period, were as follows:
6 months to 30 6 months to 30
June June Year to 31
December 2024
2025 2024
$m $m $m
Other operating costs (0.4) (3.0) (10.5)
Impairment loss on Taq Taq - - (2.2)
held for sale asset
Reversal of ECL of trade 1.2 - -
receivables (note 11)
Write-off of trade receivables (8.9) - -
(note 11)
Write-off of trade payables 12.3 - -
General and administrative - (0.1) 0.4
costs
Operating profit / (loss) 4.2 (3.1) (12.3)
Other finance expense (0.1) (1.2) (2.4)
(non-cash)
Profit / (Loss) from 4.1 (4.3) (14.7)
discontinued operations
6 months to 30 6 months to 30
June June Year to 31
December 2024
2025 2024
Cash flows from discontinued $m $m $m
operations
Net cash used in operating (1.8) (3.3) (10.3)
activities
Net cash used in investing - - -
activities
Net cash used in financing - - -
activities
8. Earnings / (Loss) per share
Basic
Basic earnings / (loss) per share is calculated by dividing the profit /
(loss) attributable to owners of the parent by the weighted average number
of shares in issue during the period.
6 months to 30
June 6 months to 30 Year to 31
June 2024 December 2024
2025
Loss from continuing (3.5) (17.6) (62.2)
operations ($m)
Profit / (Loss) from 4.1 (4.3) (14.7)
discontinued operations ($m)
Profit / (Loss) attributable 0.6 (21.9) (76.9)
to owners of the parent ($m)
Weighted average number of 275,382,490 276,953,398 276,223,685
ordinary shares – number 1
Basic LPS – cents (from (1.3) (6.4) (22.5)
continuing operations)
Basic EPS / (LPS) – cents
(from discontinuing 1.5 (1.5) (5.3)
operations)
Basic EPS / (LPS) – cents 0.2 (7.9) (27.8)
1 Excluding shares held as treasury shares and by the Employee Benefit
Trust
Diluted
The Company purchases shares in the market to satisfy share plan
requirements so diluted earnings per share is adjusted for performance
shares, restricted shares, share options and deferred bonus plans not
included in the calculation of basic earnings per share. Because the
Company reported a loss from continuing operations for the period ended 30
June 2025, the performance shares, restricted shares and share options are
anti-dilutive and therefore diluted LPS is the same as basic LPS.
6 months to 30
June 6 months to 30 Year to 31
June 2024 December 2024
2025
Loss from continuing (3.5) (17.6) (62.2)
operations ($m)
Profit / (Loss) from 4.1 (4.3) (14.7)
discontinued operations ($m)
Profit / (Loss) attributable 0.6 (21.9) (76.9)
to owners of the parent ($m)
Weighted average number of 275,382,490 276,953,398 276,223,685
ordinary shares – number1
Adjustment for performance
shares, restricted shares, - - -
share options and deferred
bonus plans
Weighted average number of
ordinary shares and potential 275,382,490 276,953,398 276,223,685
ordinary shares
Diluted LPS – cents (from (1.3) (6.4) (22.5)
continuing operations)
Diluted EPS / (LPS) – cents
(from discontinuing 1.5 (1.5) (5.3)
operations)
Diluted EPS / (LPS) – cents 0.2 (7.9) (27.8)
1 Excluding shares held as treasury shares and by the Employee Benefit
Trust
Adjusted Basic EPS / (LPS)
Adjusted basic EPS / (LPS) is profit / (loss) and total comprehensive
income / (expense) adjusted for the add back of net ECL/reversal of ECL of
receivables, and impairment loss on Taq Taq held for sale asset divided by
weighted average number of ordinary shares.
6 months to 30
June 6 months to 30 Year to 31
June 2024 December 2024
2025
Profit / (Loss) attributable 0.6 (21.9) (76.9)
to owners of the parent ($m)
Add back of impairment loss on - - 2.2
Taq Taq held for sale asset
Add back of ECL/reversal of 0.1 - (1.4)
ECL of receivables
Profit / (Loss) attributable
to owners of the parent ($m) – 0.7 (21.9) (76.1)
adjusted
Weighted average number of 275,382,490 276,953,398 276,223,685
ordinary shares – number 1
Adjusted basic EPS / (LPS) – 0.3 (7.9) (27.6)
cents
1 Excluding shares held as treasury shares and by the Employee Benefit
Trust
9. Intangible assets
Exploration and Other
evaluation assets Tawke Total
assets
RSA
$m $m $m $m
Cost
At 1 January 2024 22.8 128.5 7.5 158.8
Additions 2.5 - - 2.5
Other (0.7) - - (0.7)
At 30 June 2024 24.6 128.5 7.5 160.6
At 1 January 2024 22.8 128.5 7.5 158.8
Additions 2.7 - - 2.7
Other 0.4 - - 0.4
At 31 December 2024 and 1 January 25.9 128.5 7.5 161.9
2025
Additions 0.7 - - 0.7
Other 0.3 - - 0.3
At 30 June 2025 26.9 128.5 7.5 162.9
Accumulated amortisation and
impairment
At 1 January 2024 - (66.6) (7.5) (74.1)
Amortisation charge for the - (2.7) - (2.7)
period
At 30 June 2024 - (69.3) (7.5) (76.8)
At 1 January 2024 - (66.6) (7.5) (74.1)
Amortisation charge for the year - (5.5) - (5.5)
At 31 December 2024 and 1 January - (72.1) (7.5) (79.6)
2025
Amortisation charge for the - (2.7) - (2.7)
period
At 30 June 2025 - (74.8) (7.5) (82.3)
Net book value
At 1 January 2024 22.8 61.9 - 84.7
At 30 June 2024 24.6 59.2 - 83.8
At 31 December 2024 and 1 January 25.9 56.4 - 82.3
2025
At 30 June 2025 26.9 53.7 - 80.6
30 June 2025 30 June 31 Dec 2024
2024
Book value $m $m $m
Somaliland PSC Exploration 26.4 24.6 25.9
Oman PSC Exploration 0.5 - -
Exploration and evaluation 26.9 24.6 25.9
assets
Tawke capacity building payment waiver 53.7 59.2 56.4
Tawke RSA assets 53.7 59.2 56.4
10. Property, plant and equipment
Other
Producing assets
assets Total
$m $m $m
Cost
At 1 January 2024 3,313.2 17.3 3,330.5
Additions 13.4 0.3 13.7
Other1 0.6 - 0.6
At 30 June 2024 3,327.2 17.6 3,344.8
At 1 January 2024 3,313.2 17.3 3,330.5
Additions 23.0 0.6 23.6
Right-of-use assets - 0.5 0.5
Other1 3.2 - 3.2
Reclassified as held for sale (note 7) (2,021.3) - (2,021.3)
At 31 December 2024 and 1 January 2025 1,318.1 18.4 1,336.5
Additions 12.5 0.1 12.6
Right-of-use assets - 1.8 1.8
Other1 0.6 - 0.6
At 30 June 2025 1,331.2 20.3 1,351.5
Accumulated depreciation and impairment
At 1 January 2024 (3,068.5) (15.5) (3,084.0)
Depreciation charge for the period (23.0) (0.7) (23.7)
At 30 June 2024 (3,091.5) (16.2) (3,107.7)
At 1 January 2024 (3,068.5) (15.5) (3,084.0)
Depreciation charge for the year (46.6) (1.4) (48.0)
Reclassified as held for sale (note 7) 1,986.6 - 1,986.6
At 31 December 2024 and 1 January 2025 (1,128.5) (16.9) (1,145.4)
Depreciation charge for the period (23.0) (0.7) (23.7)
At 30 June 2025 (1,151.5) (17.6) (1,169.1)
Net book value
At 1 January 2024 244.7 1.8 246.5
At 30 June 2024 235.7 1.4 237.1
At 31 December 2024 and 1 January 2025 189.6 1.5 191.1
At 30 June 2025 179.7 2.7 182.4
1 Other line includes non-cash asset retirement obligation provision and
share-based payment costs.
30 June 2025 30 June 2024 31 Dec 2024
Book value $m $m $m
Tawke PSC Oil production 179.7 198.7 189.6
Taq Taq PSC Oil production - 37.0 -
Producing assets 179.7 235.7 189.6
The sensitivities below provide an indicative impact on net recoverable
value of a change in netback price, discount rate, production or pipeline
reopening, assuming no change to any other inputs.
Tawke CGU
Sensitivities $m
Long term netback price +/- $5/bbl +/- 18
Discount rate +/- 1% +/- 11
Production +/- 10% +/- 28
Domestic sales for 1 more year - 3
11. Trade and other receivables
30 June 2025 30 June 2024 31 Dec 2024
$m $m $m
Trade receivables – non-current 59.4 66.5 60.9
Trade receivables – current 16.6 26.4 24.1
Other receivables and prepayments 2.1 3.8 3.1
78.1 96.7 88.1
As of 30 June 2025, the Company is owed six months of payments (31
December 2024: six months).
Period when sale
made
Overdue Overdue Total Reclassified as ECL Trade
2023 2022 nominal held for sale receivables
(note 7) provision
$m $m $m $m $m $m
30 June 40.2 47.6 87.8 - (11.8) 76.0
2025
31
December 49.3 58.1 107.4 (10.7) (11.7) 85.0
2024
30 June 49.3 58.1 107.4 - (14.5) 92.9
2024
Movement on trade receivables in the 30 June 2025 30 June 2024 31 Dec 2024
period
$m $m $m
Carrying value at the beginning of 85.0 92.9 92.9
the period
Revenue from contracts with 35.8 37.6 74.7
customers
Cash for domestic sales (35.8) (37.6) (74.7)
Write-off of Sarta receivables (note (8.9) - -
7)
Reversal of previous year’s expected 1.2 - 1.4
credit loss (note 2)
Expected credit loss for current (1.3) - -
period (note 2)
Reclassified as held for sale (note - - (9.3)
7)
Carrying value at the end of the 76.0 92.9 85.0
period
Recovery of the carrying value of the receivable
All trade receivables relate to export sales from Tawke PSC as the
domestic sales are on a cash and carry basis. As explained in note 2, the
booked nominal receivable value of $87.8 million has been recognised based
on KBT due to IFRS 15 requirements and it would be $10 million higher
under Brent pricing mechanism. The Company expects to recover the full
value of receivables owed from the KRG under Brent pricing mechanism, but
the terms of recovery are not determined yet. An explanation of the
assumptions and estimates in assessing the net present value of the
deferred receivables are provided in note 2.
Total
$m
Booked nominal balance to be recovered 87.8
Estimated net present value of total cash flows 76.0
Sensitivities/Scenarios
As set out in note 2, the recoverability of the overdue trade receivables
is based on a number of different collection scenarios. We consider that
the ultimate resolution will include full consideration of all balances
between the two counterparties. A 1% increase / decrease in the discount
rate would result in a c.$0.7 million change in the ECL provision. Each
three-month delay in settlement would result in a c.$0.9 million increase
in the ECL provision. A combined three-month delay and a 1% increase in
the discount rate would result in a c.$1.6 million change in the ECL
provision. The discount rate applied is the discount rate considered to
represent the effective interest rate on this instrument.
12. Interest bearing loans and net cash
Purchase/
Discount issuance Free 30 June
1 Jan 2025 unwind cash 2025
of bond flow
$m $m $m $m $m
2025 Bond 9.25% coupon (64.9) (0.9) 65.8 - -
(current)
2030 Bond 11% coupon - (0.1) (90.5) - (90.6)
(non-current)
Cash 195.6 - 24.7 4.7 225.0
Net cash 130.7 (1.0) - 4.7 134.4
As of 30 June 2025, the fair value of the $92 million of bonds held by
third parties is $92 million (31 December 2024: $66 million).
In April 2025, the Company issued a new five-year senior unsecured bond
and exercised its call option on the old bonds, which were repaid at par.
The bonds maturing in 2030 have two financial covenants:
Financial covenant Test H1 2025 H1 2024 YE 2024
Equity ratio > 30% 64% 52% 60%
Minimum liquidity > $20m $225.0m $370.4m $195.6m
1 Jan Net other 30 June
Discount unwind changes1
2024 2024
$m $m $m $m
2025 Bond 9.25% (243.7) (1.2) - (244.9)
(non-current)
Cash 363.4 - 7.0 370.4
Net cash 119.7 (1.2) 7.0 125.5
1 Net other changes are free cash flow plus purchase of own shares
Discount Repurchase Share Free 31 Dec
1 Jan 2024 unwind purchase cash 2024
of bond flow
$m $m $m $m $m $m
2025 Bond 9.25% (243.7) (1.6) 180.4 - - (64.9)
(current)
Cash 363.4 - (185.0) (2.4) 19.6 195.6
Net cash 119.7 (1.6) (4.6) (2.4) 19.6 130.7
13. Capital commitments
Under the terms of its production sharing contracts (‘PSC’s) and joint
operating agreements (‘JOA’s), the Company has certain commitments that
are generally defined by activity rather than spend. The Company’s capital
programme for the next few years is explained in the operating review and
is in excess of the activity required by its PSCs and JOAs.
INDEPENDENT REVIEW REPORT TO GENEL ENERGY PLC
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in
all material respects, in accordance with International Accounting
Standard 34 “Interim Financial Reporting” as adopted by the European
Union, Article 106 of the Companies (Jersey) Law 1991 and the Disclosure,
Guidance and Transparency Rules of the United Kingdom’s Financial Conduct
Authority.
We have been engaged by Genel Energy PLC (“the Company”) to review the
condensed set of financial statements in the half-yearly financial report
for the six months ended 30 June 2025 which comprises the Condensed
consolidated statement of comprehensive income, the Condensed consolidated
balance sheet, the Condensed consolidated statement of changes in equity,
the Condensed consolidated cash flow statement and the related explanatory
notes that have been reviewed.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, “Review of Interim Financial Information
Performed by the Independent Auditor of the Entity” (“ISRE (UK) 2410”). A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards as
adopted by the European Union. The condensed set of financial statements
included in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, “Interim Financial
Reporting” as adopted by the European Union, Article 106 of the Companies
(Jersey) Law 1991 and the Disclosure, Guidance and Transparency Rules of
the United Kingdom’s Financial Conduct Authority.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for conclusion section of
this report, nothing has come to our attention to suggest that the
directors have inappropriately adopted the going concern basis of
accounting or that the directors have identified material uncertainties
relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance
with ISRE (UK) 2410; however future events or conditions may cause the
Group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial
report in accordance with the International Accounting Standard 34
“Interim Financial Reporting” as adopted by the European Union, Article
106 of the Companies (Jersey) Law 1991 and the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to
the Company a conclusion on the condensed set of financial statement in
the half-yearly financial report. Our conclusion, including our
conclusions relating to Going Concern, are based on procedures that are
less extensive than audit procedures, as described in the Basis for
Conclusion paragraph of this report.
Use of our report
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
Disclosure Guidance and Transparency Rules of the United Kingdom’s
Financial Conduct Authority and for no other purpose. No person is
entitled to rely on this report unless such a person is a person entitled
to rely upon this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior written
consent. Save as above, we do not accept responsibility for this report
to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, UK
4 August 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
══════════════════════════════════════════════════════════════════════════
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B55Q3P39, NO0010894330
Category Code: IR
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
OAM Categories: 1.2. Half yearly financial reports and audit
reports/limited reviews
Sequence No.: 397905
EQS News ID: 2179264
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
References
Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=e1c571e1a32bf0347487315e98c8c954&application_id=2179264&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=3ec46b352f38452116096dbbab51b09e&application_id=2179264&site_id=reuters~~~787b94c3-8286-43cc-98b3-26b1dc52d810&application_name=news
============Recent news on Genel Energy
See all newsREG-Genel Energy PLC Genel Energy PLC: Unaudited results for the period ended 30 June 2025
AnnouncementREG-Genel Energy PLC Genel Energy PLC: Production Temporarily Suspended at DNO Kurdistan Fields Following Explosions
AnnouncementREG-Genel Energy PLC Genel Energy PLC: Results of Annual General Meeting 8 May 2025
AnnouncementREG-Genel Energy PLC Genel Energy PLC: Trading and operations update Q1 2025
AnnouncementREG-Genel Energy PLC Genel Energy PLC: Update on arbitration regarding the Bina Bawi and Miran PSCs / Recoverable Costs Award
Announcement