REG-Genel Energy PLC Genel Energy PLC: Trading and operations update

Genel EnergyAnnouncement

Today 07:02

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  Genel Energy PLC (GENL)
  Genel Energy PLC: Trading and operations update

  27-Jan-2026 / 07:00 GMT/BST

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  27 January 2026

   

                                 Genel Energy plc

                          Trading and operations update

                                         

  Genel Energy plc ('Genel' or 'the  Company') issues the following trading  and
  operations update in advance  of the Company's  full-year 2025 results,  which
  are scheduled for release on 18  March 2026. The information contained  herein
  has not been audited and may be subject to further review.

   

  Paul Weir, Chief Executive of Genel, said:

  “We are well positioned  to progress on our  strategy and deliver  significant
  value to our shareholders. Notably, we  have a resilient core business,  which
  covers its costs even when sales are restricted to discounted domestic  market
  pricing at just  over $30/bbl and  a balance sheet  that provides the  funding
  required to deliver on our strategic objectives.

   

  Geographical diversification of our cash  generation remains the priority  for
  the business. Our process remains active with live opportunities under review,
  and we continue to pursue and bid  on these opportunities. We will retain  our
  discipline and  rigorous evaluation  process to  ensure every  opportunity  we
  choose to pursue is  value accretive over the  long term for our  shareholders
  and meets our priority criteria.

   

  There is significant, currently unvalued,  potential in our portfolio. On  the
  Tawke PSC, the new drilling campaign is underway targeting the maximisation of
  production from, and additions to, the existing material reserves base  there.
  In terms of  accessing export pricing,  the first stage  of the new  Kurdistan
  export arrangement has  been reported by  all participants to  be working.  We
  congratulate those stakeholders involved in  the significant effort and  trust
  that has resulted in export arrangements reaching this promising stage. We see
  sustained and consistent execution  as a key consideration  as we keep  export
  arrangements under review. On Block  54 in Oman, preliminary operational  work
  has been completed safely, ahead of time and under budget. Work is ongoing  to
  assess the accumulated data to inform the focus of our activity over the  next
  two years, which will include drilling  two wells. In Somaliland, we  continue
  to work with stakeholders  to progress to  a position where  we can drill  the
  potentially transformational Toosan-1 well there.

   

  Each of these strategic  objectives has the  potential to deliver  significant
  value.  In combination  they can  transform the business,  transform our  cash
  generation  capacity,  and  further  energise  the  business  and  the   value
  proposition for our shareholders.”

   

   

  KURDISTAN: TAWKE PSC (25% working interest)

    • Exceptional performance  from  the Operator  has  resulted in  Q4  average
      production being close to  the levels delivered in  the first half of  the
      year

                                  QUARTER       FULL YEAR
                              Q4 2025 Q4 2024 FY2025 FY2024
  Gross production            77,270  74,140  70,090 78,615
  Working interest production 19,320  18,540  17,520 19,650
  Realised price $/bbl          32      34      32     35

   

    • The efficient and effective programme  of workovers and well  intervention
      continues to yield  excellent results. Average  production for months  not
      impacted by the  drone attack  was higher than  last year  despite no  new
      wells being  drilled. Actual  average  production for  the full  year  was
      70,090 bopd compared to 78,615 bopd last year
    • The process for mobilisation of rigs for a sustained drilling programme is
      well underway, with that programme targeting additions to both  production
      and reserves
    • Our Genel20 scholarship programme continues to provide funding and support
      to talented, yet financially disadvantaged high school graduates from  the
      Kurdistan Region  of  Iraq.  Since  its launch,  the  programme  has  been
      implemented in line with our long-term sustainability commitment, focusing
      on lasting educational and social impact

   

  OMAN: BLOCK 54 (40% working interest)

    • Our preliminary activity, re-entry and workover of the legacy Batha West-1
      (BW-1) discovery well was completed ahead of time and under budget
    • The BW-1 well operation  was a low-cost  preliminary activity to  commence
      our work on the block representing the first of a number of steps  towards
      understanding the full potential of the license
    • Work is  now  ongoing  on  analysing  data  collected  and  assessing  its
      implications for  the location  of further  activity on  the block,  which
      includes the acquisition of 3D  seismic data and drilling two  exploration
      wells over the next 2 years. In line with our guidance, we will update  on
      these plans in March

   

  SOMALILAND: SL10B13 (51% working interest)

    • We continue to work  towards drilling of  the highly prospective  Toosan-1
      exploration well
    • Genel continues to work closely with local communities and  beneficiaries,
      with its social investments including a broad range of initiatives in  the
      space of mother/child health, education and the environment

   

  FINANCIAL PERFORMANCE

    • Working interest average  production of  17,520 bopd was  lower than  last
      year (2024: 19,650 bopd), with exit rate production back to around  20,000
      bopd. All production was sold into the domestic market at average  $32/bbl
      (2024: $35/bbl)
    • Core business netback of $11 million (2024: $5 million)
    • Free cash flow of $4 million (2024: $20 million)
    • Balance sheet at 31 December 2025

         ◦ Cash of $224 million (2024: $196 million)
         ◦ Total debt of $92 million (2024: $66 million)
         ◦ Net cash of $134 million (2024: $131 million)

    • Receivables

         ◦ $88 million (under KBT pricing and excluding interest) remains
           overdue from the Kurdistan Regional Government (‘KRG’), although this
           is offset by about $40 million of payables
         ◦ We continue to work towards a plan for payment or settlement of
           amounts owed, and appropriate adjustment for price and interest

    • Genel Energy Miran Bina Bawi Limited appeal against the arbitration  costs
      award of $27 million will be heard in Q2 2026

   

  ESG

    • Climate disclosure: maintained  a CDP  Climate rating  of B  for a  fourth
      consecutive year

   

  OUTLOOK

    • With Tawke domestic market sales expected to be consistent and  production
      expected to benefit from new drilling  in FY2026, we expect core  business
      free cash flow generation to more than cover its costs, which includes net
      interest payable
    • In addition to the core business, the Company expects to invest up to  $20
      million on its pre-production assets:

         ◦ On Block 54 in Oman, in line with the 3-year work plan that we
           announced at the time of entering the licence
         ◦ SL10B13 in Somaliland, as we seek progress towards drilling the
           Toosan-1 prospect towards the end of 2027

    • The Company  continues to  progress  towards building  a business  with  a
      strong balance  sheet that  delivers resilient,  reliable, repeatable  and
      diversified cash flows  that supports  a dividend  programme. The  Company
      objectives for the year on the path to building that business include:

         ◦ acquisition of new assets to add reserves and diversify our cash
           generation
         ◦ restart of exports of Tawke oil to access international pricing
         ◦ recovery of net amounts owed by the KRG
         ◦ determination and execution of activity on Block 54
         ◦ further progress towards drilling Toosan-1

   

   

  Genel will host a live presentation  on the Investor Meet Company platform  on
  Wednesday 28 January at 1000 GMT. The presentation is open to all existing and
  potential shareholders.  Questions can  be  submitted at  any time  before  or
  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

                                         

                                      -ends-

                                         

  For further information, please contact:

   

  Genel Energy: Luke Clements, CFO   +44 20 7659 5100
  Vigo Consulting: Patrick d’Ancona  +44 20 7390 0230

   

  Genel Energy is a socially responsible oil producer listed on the main  market
  of the  London  Stock Exchange  (LSE:  GENL, LEI:  549300IVCJDWC3LR8F94).  For
  further information, please refer to  2 www.genelenergy.com

   

   

   

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  Group.
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   ISIN:          JE00B55Q3P39, NO0010894330
   Category Code: TST
   TIDM:          GENL
   LEI Code:      549300IVCJDWC3LR8F94
   Sequence No.:  416200
   EQS News ID:   2266244


    
   End of Announcement EQS News Service

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