REG-Genel Energy PLC Genel Energy PLC: Audited results for the year ended 31 December 2025
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Genel Energy PLC (GENL)
Genel Energy PLC: Audited results for the year ended 31 December 2025
18-March-2026 / 07:00 GMT/BST
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18 March 2026
Genel Energy plc
Audited results for the year ended 31 December 2025
Genel Energy plc (‘Genel’ or ‘the Company’) announces its audited results
for the year ended 31 December 2025.
Paul Weir, Chief Executive of Genel, said:
“We have established an ever more resilient business with significant
upside potential, and we are now well-placed to deliver value to our
shareholders and build a business that generates resilient, diversified
and predictable cash flows that will support the resumption of
distributions to shareholders.
In 2025 we made good progress on a range of fronts: our business continued
to generate double digit USD millions of production business free cash
flow, and we reported bottom line positive free cash flow to improve our
net cash position, with excellent progress being made on reorganising the
business. We successfully exited three unprofitable licences in Kurdistan
and two in Africa, without incurring any new exit payments or retaining
potential liability exposures. We also refinanced our bond, de-risking
funding for delivery on future strategic priorities. We continue to
maintain a strong focus on rigorous capital allocation.
Since regional hostilities began two weeks ago, production has been
temporarily halted from Tawke. A state of readiness has been maintained to
allow a production restart as soon as it is safe to do so. At this moment,
our guidance for 2026 remains unchanged from our January trading
statement. Our key focus remains acquiring new assets to diversify our
cash generation, and participating in exports from Kurdistan, whilst
ensuring that we maintain the right balance between risk and reward.
Operationally, our organic portfolio, where there remains significant
unvalued potential, is well-positioned to deliver progress this year, with
planned drilling at Tawke targeting additions to both production and
reserves, a clear plan for de-risking Block 54 in Oman and tangible
progress towards drilling the Toosan-1 well in Somaliland.”
Results summary ($ million unless stated)
2025 2024
Average Brent oil price ($/bbl) 69 81
Average realised price ($/bbl) 32 35
Production (bopd, working interest ‘WI’) 17,520 19,650
Revenue 68.7 74.7
Production costs (21.0) (17.6)
EBITDAX1 43.3 1.1
Operating loss (10.3) (52.4)
Cash flow from operations 36.3 66.9
Capital expenditure 29.2 25.7
Production business netback after interest 9.8 4.9
Free cash flow2 4.1 19.6
Cash 224.4 195.6
Total debt 92.0 65.8
Net cash3 133.7 130.7
Basic LPS from continuing operations (¢ per share) (4.6) (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, net ECL/reversal of ECL receivables and other non-cash
items
2. Free cash flow is reconciled on page 8
3. Reported cash less IFRS debt is reconciled on page 8
Highlights
• Following the U.S.-Israeli air war on Iran that started on 28 February
2026, production and drilling operations on the Tawke licence were
temporarily shut down. The Company continues to monitor developments
closely to assess when it can safely and securely resume operations
• Tawke generated predictable production with consistent domestic sales
demand, resulting in working interest production of 17,520 bopd (2024:
19,650 bopd), with all production sold domestically
• Domestic sales price averaged $32/bbl for the year (2024: $35/bbl),
with all cash due for domestic sales received before the end of the
year
• Production was temporarily stopped in July following the drone attacks
on a number of Kurdistan oil operations, including Tawke, with gross
production back to around 80,000 bopd by November
• Production business netback of $10 million (2024: $5 million) and free
cash flow of $4 million (2024: $20 million). Closing net cash of $134
million (2024: $131 million)
◦ Cash of $224 million (2024: $196 million)
◦ Bond debt of $92 million due in 2030 (2024: $66 million)
• In late September, agreements were signed between the Federal
Government of Iraq (‘FGI’), the Kurdistan Regional Government (the
‘KRG’) and a group of international oil companies to resume exports of
crude oil produced in Kurdistan through the Iraq-Türkiye Pipeline.
Genel chose not to participate at that point and continues to keep
exports under review, with participating parties reporting that the
process is working in line with expectation
• Balances with the KRG
◦ $88 million (under KBT pricing and excluding interest) remains
overdue from the KRG, although this has been reduced by about $40
million credit balances. We continue to work towards a plan for
payment or settlement of amounts owed, and appropriate adjustment
for price and interest
◦ Not included in the $40 million, Genel Energy Miran Bina Bawi
Limited, a subsidiary of the group, owes the KRG around $26
million relating to an arbitration legal fees charge, an appeal
against which will be held in April in London
• Exits from the Sarta, Qara Dagh and Taq Taq licences finalised with no
residual liability exposure. We have also exited the Lagzira licence
in Morocco and the Odewayne licence in Somaliland, again with no
residual liability exposure
• A socially responsible contributor to the global energy mix:
◦ Portfolio carbon intensity under 14.4 kgCO2e/bbl, remaining below
the industry average target
◦ Climate disclosure: maintained a CDP Climate rating of B for a
fourth consecutive year
◦ The Genel20 Scholarship programme has entered its fourth year,
where Genel is providing university tuition funding for
undergraduates from the Kurdistan Region of Iraq
◦ In Somaliland, Genel continued to engage with local communities
through its social investments focused on healthcare in rural
areas and supporting local education
OUTLOOK
• With Tawke domestic market sales expected to be consistent, and with
production expected to benefit from new drilling in FY 2026, we expect
production business netback to more than cover Genel’s costs, which
include net interest payable
• Incremental to the production 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 initial exploration
phase work plan, which includes 3D seismic acquisition and
drilling two wells, as we announced at the time of entering the
licence in the first half of 2025
◦ SL10B13 in Somaliland, as we make progress towards drilling the
Toosan-1 prospect in 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 support a dividend programme. The
Company’s objectives for the year on the path to building that
business include:
◦ acquisition of new assets to diversify our reserves and resources
and cash generation
◦ restart of exports of Tawke oil to access international pricing
◦ pursuit of net amounts owed by the KRG
◦ safe execution of activity on Block 54
◦ further progress towards drilling Toosan-1
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 via the Investor Meet Company platform
on Thursday 26 March at 10.00 a.m. GMT. The presentation is open to all
investors. Questions can be submitted pre-event via your Investor Meet
Company dashboard or 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.
Investors who already follow Genel on the platform will automatically be
invited.
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. 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.
CEO STATEMENT
We entered 2025 having established the necessary building blocks to
transform the value delivery prospects of this business. The three key
pillars at the centre of our strategy are:
• Maintaining the resilience of our business, by being as efficient as
possible and by carefully managing risk
• Getting the most value from our existing portfolio, primarily by
accessing international exports for our production and by investing
wisely in our current assets, and finally
• Diversifying our cash generation, by acquiring new assets
The resilience of our business has been improved. Our cash generation from
the Tawke PSC has been predictable and resilient. There has been
successful optimisation of spend and strong operational performance,
resulting in production levels being maintained despite no new wells
adding to production in the year and very low annual spend. Towards the
end of the year, drilling recommenced for the first time since the
pipeline shut in March 2023 and we are excited about the potential for
additions to both production and reserves that can be unlocked by an
appropriate work programme over the next year.
Towards the end of 2025, a number of Kurdistan IOCs commenced exports
under a new interim arrangement with the Federal Government of Iraq
(‘FGI’) and the Kurdistan Regional Government (‘KRG’). We see this as
significant progress and, although we continue to sell domestically, we
keep our position regarding exporting oil under review. In the meantime,
the cash we generate immediately from local sales helps maintain our
balance sheet strength and fund the resumption of drilling activity on the
licence.
We have successfully continued our process to exit legacy assets and
financial obligations that would not contribute to delivering value for
our shareholders. On Taq Taq, Sarta and Qara Dagh, we have now concluded
our exit from these licences with no incremental cost. We have also exited
the Lagzira licence in Morocco and the Odewayne licence in Somaliland.
These exits have removed non-productive spend and we retain no liability
exposure going forward.
From a balance sheet point of view, we issued a new 5-year bond in April,
replacing the previous bond that was due to mature in October 2025. We now
have a production business that generates double digit free cash flow from
domestic sales and a significant cash balance that de-risks funding for
fulfilment of our strategic objectives.
With regard to acquiring new assets, we have been very active this year
originating, developing, and bidding on opportunities. We will continue to
remain active and disciplined to ensure that we invest our cash only on
assets that offer the appropriate resilience and production potential, and
at a level that will be value accretive.
The Company continues to progress towards building a business that
maintains a strong balance sheet, and delivers resilient, reliable,
repeatable, and diversified cash flows that support a dividend programme.
The Company’s 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
◦ pursuit of net amounts owed by the KRG
◦ safe execution of activity on Block 54
◦ further progress towards drilling Toosan-1
OPERATING REVIEW
Overview of production and reserves
PRODUCTION FY 2025 FY 2024
Brent $/bbl 69 81
Price $/bbl 32 35
WI price $/bbl 11 10
WI production bopd 17,520 19,650
Carbon intensity kgCO2e/bbl 14.4 13.9
Working interest average production of 17,520 bopd was lower than last
year (2024: 19,650 bopd) as a result of the interruption from the drone
strikes in July, with all production sold into the domestic market at
average of $32/bbl (2024: $35/bbl).
Reserves and resources development
Genel's key performance indicator of proven plus probable (2P) net working
interest reserves totalled 64 MMbbls (31 December 2024: 82 MMbbls) at the
end of 2025.
Remaining reserves Resources (MMboe)
(MMbbls)
Contingent Prospective
1P 2P 2C Best
Net Net Net Net
31 December 2024 53 82 10 2,996
Production (6) (6) - -
Acquisitions and disposals (5) (10) - (2,007)
Extensions and discoveries - - - -
New developments - - - -
Revision of previous 7 (2) (1) -
estimates
31 December 2025 49 64 9 989
Disposals resulted in a reduction in 2P reserves for the divestment of Taq
Taq licence in Kurdistan Region of Iraq (‘KRI’) and in prospective
resources for the exit from the Lagzira licence in Morocco. Acquisitions
saw a small addition to prospective resources from Block 54 in Oman.
PRODUCING ASSETS
Tawke PSC (25% working interest)
The Tawke PSC, comprising both the Tawke field discovered in 2006, and the
Peshkabir field discovered in 2013, remain the cornerstone of the
Company’s cash generation. In December 2025, the combined production from
both fields reached 500 MMbbls, a significant milestone marking more than
two decades of safe and sustainable production operations. With gross 2P
remaining reserves of 254 MMbbls and additional development opportunities
under evaluation to add more, the Tawke PSC remains a world-class asset.
In Q4 2025, the Joint Venture partnership agreed plans to restart
investment drilling in the PSC following a 2-year hiatus since the 2023
export pipeline shutdown. The first well was spudded in December 2025,
with additional rigs added since then and the campaign now well underway.
This return to investment via a multi-rig programme underscores our
confidence in the resource potential of the asset.
Despite no new wells being added in the last few years, gross production
from these fields has been maintained at around 80,000 bopd as a result of
an active and diligent production optimisation approach by the Operator.
In 2025 in particular, a focused campaign of well interventions and
workovers yielded a series of incremental gains that were crucial in
offsetting natural decline, leading to run rate production being higher
than the previous year’s average without any additional well stock.
On 16 July 2025, the Operator reported a number of drone-related security
incidents across the licence area, that resulted in asset damage to a
crude oil tank at Tawke and surface processing equipment at Peshkabir.
There were no injuries to personnel and environmental impact was minimal
but operations at the Tawke licence were temporarily suspended for damage
assessment. Following a partial restart and a period of repair and
reinstatement, the Operator was able to restore production on an expedited
basis to around 80,000 bopd by early November.
As a result of the exceptional performance from the Operator to restore
production to pre-drone attack levels by early November, actual average
production for the full year was 70,090 bopd, down just 11% versus 78,615
bopd in 2024. As a point of interest, the average production in the months
not impacted by the drone attacks was greater than the average of the
previous year.
Despite the significant challenges posed by the unprecedented July drone
attack, 2025 was a year of operational resilience and strategic progress
for the Tawke PSC and we look forward to working in partnership with the
Operator to deliver even more value from the asset in the years ahead.
PRE-PRODUCTION ASSETS
Oman Block 54 (40% working interest)
Our preliminary activity, re-entry and testing of the legacy Batha West-1
(BW-1) discovery well was completed safely, 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 licence.
Work is now ongoing on analysing data collected from the testing 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. 2026 activity will be dominated
by existing 3D seismic reprocessing and new 3D seismic acquisition and
processing whilst planning for and working towards the drilling of the
joint venture’s first well on the licence.
Somaliland - SL10B13 (51% working interest, Operator)
We continue to work towards drilling of the highly prospective Toosan-1
exploration well. In the meantime, 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 and child health,
education and the environment.
FINANCIAL REVIEW
2025 financial priorities
The table below summarises our progress against the 2025 financial
priorities of the Company as set out at the start of FY 2025.
2025 financial priorities Progress
• Effectively sold consistently into the
domestic market and maintained price
levels despite falling Brent
• Restored Tawke production rapidly after
interruption
• Finalised Taq Taq, Sarta, Qara Dagh,
Lagzira and Odewayne licence exits at no
incremental cost or residual liabilities
• Continued to optimise organisational
cost
• Issued new bonds
Maintain business resilience, • extending debt maturity to 2030 and
balance sheet strength and reducing funding risk for delivering our
capital availability strategic objectives
• reduced debt levels so as to reduce
overall net interest cost from $7
million in 2024 to below $1 million in
2025
• Overall delivered production business
netback of $10 million and overall free
cash flow of $4 million
• Net cash of $134 million and cash of
$224 million at end of 2025 provides
significant funding for organic and
inorganic investment
• Maintained production at the Tawke PSC
through efficient investment, without
incurring the additional cost of
drilling new wells
• Invested cost-effective capital in Block
54 in order to inform the best work
Ensure appropriate capital programme to de-risk investment over the
allocation and deliver remainder of the commitment period
diversification of our cash • Deferred expenditure on non-cash
generation generative projects
• Continued expediting steps to stop any
non-value accretive spend across the
business
• Continued cost-effective investment in
optimisation of processes and systems to
improve operational efficiency
Outlook and financial priorities for 2026
The key principles of our financial focus remain largely unchanged. We
have a resilient business model that is designed to mitigate the impact of
uncontrollable adverse events and maximise exposure to the upside.
Ultimately, we seek to build a business that generates resilient, diverse,
and predictable cash flows that support resumption of distributions to
shareholders.
2026 financial priorities
• A strong balance sheet protected by
resilient cash generation is an
important component of our business
Maintain business resilience, model
balance sheet strength and • We expect again that the production
capital availability business will be free cash flow positive
in 2026 and provide the majority of
funding required for the planned capital
investment in pre-production assets
• Our capital allocation priorities remain
maintenance of a strong balance sheet,
investment in the Tawke PSC and funding
of the Company’s strategic objectives in
Ensure appropriate capital order to generate long-term value for
allocation prioritisation shareholders
• The principal priority is to add new
assets to our portfolio with a view to
diversifying our cash generation, which
can be done through both organic and
inorganic investment
• The Company intends to diversify and
increase its cash generation through
both organic and inorganic investment,
this remains a priority for the business
• For organic investment, the Company will
only invest where the balance between
Invest capital in order to reward and risk is appropriate, with
diversify and increase cash exciting planned investment in 2026 on
generation and value delivery both Block 54 and Toosan-1
• For inorganic investment, the Company
continues to identify, originate and
mature opportunities and will ensure any
investment is value accretive and in
line with the Board’s priority criteria
Financial results for the year
(all figures $ million) FY 2025 FY 2024
Brent average oil price ($/bbl) 69 81
Field level realised price per barrel ($/bbl) 32 35
Average price per working interest barrel ($/bbl) 11 10
Working interest production (bopd) 17,520 19,650
Revenue 68.7 74.7
Other income 3.4 -
Production costs (21.0) (17.6)
Production capex (24.2) (23.0)
G&A (excl. non-cash) (16.9) (22.2)
Net cash interest1 (0.2) (7.0)
Production business netback after interest 9.8 4.9
Pre-production capex (5.0) (2.7)
Net expense from discontinued operations (0.9) (10.2)
Working capital and other 0.2 27.6
Free cash flow 4.1 19.6
Purchases of own shares - (2.4)
Settlement of 2025 bonds (65.8) (185.0)
Issuance of new 2030 bonds 90.5 -
Net change in cash 28.8 (167.8)
Opening cash 195.6 363.4
Cash 224.4 195.6
Debt reported under IFRS (90.7) (64.9)
Net cash 133.7 130.7
1 Net cash interest is bond interest payable less bank interest income
(see note 5)
Production of 17,520 bopd was lower than last year (2024: 19,650 bopd) as
a result of the interruption from the drone strikes in July, which
impacted production up to early November. All production has been sold
domestically at an average price of $32/bbl (2024: $35/bbl), which under
the PSC translates into $11 (2024: $10) per working interest barrel
produced.
Revenue was $69 million (2024: $75 million), with spend broadly in line
with last year: production costs were $21 million (2024: $18 million) and
production capex was $24 million (2024: $23 million).
Cash general and administrative costs were $17 million, lower than last
year (2024: $22 million) as a result of this year benefiting from cost
reductions and no material arbitration costs.
Interest income of $9 million (2024: $16 million) and bond expense of $9
million (2024: $23 million) both decreased in line with cash and bond
balances, with overall net interest cost of $0.2 million significantly
reduced from $7 million last year as a result of lower debt levels.
The resulting production business netback of $10 million was higher than
$5 million generated in the last year.
Pre-production capex of $5 million (2024: $3 million) was related to Oman
and Somaliland assets.
Free cash flow of $4 million was lower than $20 million last year, which
had benefitted from positive working capital movements of $28 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) FY 2025 FY 2024
EBITDAX 43.3 1.1
Interest received 8.9 15.8
Working capital (15.9) 50.0
Operating cash flow 36.3 66.9
Producing asset cost recovered capex (18.9) (21.7)
Exploration and appraisal capex (4.5) (3.1)
Interest and other (8.8) (22.5)
Free cash flow 4.1 19.6
EBITDAX of $43 million was significantly higher than last year (2024: $1
million), mainly due to accrued arbitration cost award last year. 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 and
share-based expenses.
Free cash flow was $4 million (2024: $20 million). Free cash flow is
presented in order to illustrate the free cash generated for equity.
Cash and debt
Cash of $224 million increased from the start of the year (31 December
2024: $196 million) as a result of positive free cash flow and 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 YE 2025
Equity ratio (Total equity/Total assets) > 30% 63%
Minimum liquidity > $20 million $224 million
Net assets
Net assets at 31 December 2025 were $351 million (31 December 2024: $357
million) and consist primarily of oil and gas assets of $252 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 annual report for the year ended 31 December 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.
Consolidated statement of comprehensive income
For the year ended 31 December 2025
2025 2024
Note $m $m
Revenue 2 68.7 74.7
Other income 2 3.4 -
Production costs 3 (21.0) (17.6)
Depreciation and amortisation of oil assets 3 (50.0) (52.1)
Gross profit 1.1 5.0
Exploration expense 3 (0.3) (2.7)
Reversal of / (accrual for) arbitration cost 3 9.1 (32.2)
(Expected credit loss (‘ECL’)) of trade receivables / 3 (1.3) 1.4
Reversal of ECL
General and administrative costs 3 (18.9) (23.9)
Operating loss (10.3) (52.4)
Operating loss is comprised of:
EBITDAX 43.3 1.1
Depreciation and amortisation 3 (50.1) (52.2)
Exploration expense 3 (0.3) (2.7)
Other non-cash (expense) / income (3.2) 1.4
Finance income 5 8.9 15.8
Bond interest expense 5 (9.1) (18.2)
Net other finance expense 5 (2.2) (7.3)
Loss before income tax (12.7) (62.1)
Income tax expense 6 (0.1) (0.1)
Loss and total comprehensive expense from continuing (12.8) (62.2)
operations
Profit / (Loss) from discontinued operations 7 3.9 (14.7)
Loss and total comprehensive expense (8.9) (76.9)
Attributable to:
Owners of the parent (8.9) (76.9)
(8.9) (76.9)
Loss per ordinary share ¢ ¢
From continuing operations:
Basic 8 (4.6) (22.5)
Diluted 8 (4.6) (22.5)
From continuing and discontinued operations:
Basic 8 (3.2) (27.8)
Diluted 8 (3.2) (27.8)
Adjusted Basic LPS1 8 (3.2) (27.6)
1Adjusted basic LPS is loss and total comprehensive expense adjusted for
the add back of net impairment/write-off of oil and gas assets and net
ECL/reversal of ECL of receivables divided by weighted average number of
ordinary shares
Consolidated balance sheet
At 31 December 2025
2025 2024
Note $m $m
Assets
Non-current assets
Intangible assets 9 82.7 82.3
Property, plant and equipment 10 171.5 191.1
Trade and other receivables 11 59.4 60.9
313.6 334.3
Current assets
Trade and other receivables 11 23.0 27.2
Cash and cash equivalents 12 224.4 195.6
247.4 222.8
Assets in disposal groups classified as held for 7 - 41.8
sale
Total assets 561.0 598.9
Liabilities
Non-current liabilities
Trade and other payables 13 (1.3) (0.2)
Provisions 14 (26.3) (25.1)
Interest bearing loans 15 (90.7) -
(118.3) (25.3)
Current liabilities
Trade and other payables 13 (91.7) (109.6)
Interest bearing loans 15 - (64.9)
(91.7) (174.5)
Liabilities directly associated with assets in 7 - (41.8)
disposal groups classified as held for sale
Total liabilities (210.0) (241.6)
Net assets 351.0 357.3
Owners of the parent
Share capital 17 43.8 43.8
Share premium 3,863.9 3,863.9
Accumulated losses (3,556.7) (3,550.4)
Total equity 351.0 357.3
Consolidated statement of changes in equity
For the year ended 31 December 2025
Share Share Accumulated Total
capital premium losses equity
$m $m $m $m
Note
At 1 January 2024 43.8 3,863.9 (3,473.8) 433.9
Loss and total comprehensive - - (76.9) (76.9)
expense
Contributions by and
distributions to owners
Share-based payments 18 - - 2.7 2.7
Purchase of own shares for - - (2.4) (2.4)
employee share plan
At 31 December 2024 and 1 43.8 3,863.9 (3,550.4) 357.3
January 2025
Loss and total comprehensive - - (8.9) (8.9)
expense
Contributions by and
distributions to owners
Share-based payments 18 - - 2.6 2.6
At 31 December 2025 43.8 3,863.9 (3,556.7) 351.0
1 The Companies (Jersey) Law 1991 does not define the expression
“dividend” but refers instead to “distributions”. Distributions may be
debited to any account or reserve of the Company (including share premium
account)
Consolidated cash flow statement
For the year ended 31 December 2025
Note 2025 2024
$m $m
Cash flows from operating activities
Loss for the year (8.9) (76.9)
Adjustments for:
Net finance expense 5,7 2.4 12.1
Taxation 6 0.1 0.1
Depreciation and amortisation 3 50.1 52.2
Exploration expense 0.3 -
Reversal of provisions 3 - (3.8)
Net impairments, write-off / (write-back) 3,7 (3.5) 0.8
Other non-cash items (share-based payment cost) 3 1.9 1.9
Changes in working capital:
(Increase) / decrease in trade and other (3.8) 2.5
receivables
(Decrease) / increase in trade and other payables (11.0) 62.3
Cash generated from operations 27.6 51.2
Interest received 5 8.9 15.8
Taxation paid (0.2) (0.1)
Net cash generated from operating activities 36.3 66.9
Cash flows from investing activities
Additions of intangible assets (4.5) (3.1)
Additions of property, plant and equipment (18.9) (21.7)
Net cash used in investing activities (23.4) (24.8)
Cash flows from financing activities
Purchase of own shares - (2.4)
Bond repayment 15 (65.8) (185.0)
Issuance of new bond 15 90.5 -
Lease payments (0.7) (0.7)
Interest paid (8.1) (21.8)
Net cash generated from / (used in) financing 15.9 (209.9)
activities
Net increase / (decrease) in cash and cash 28.8 (167.8)
equivalents
Cash and cash equivalents at 1 January 12 195.6 363.4
Cash and cash equivalents at 31 December 12 224.4 195.6
Notes to the consolidated financial statements
1. Summary of material accounting policies
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 consolidated financial statements of the Company have been prepared in
accordance with International Financial Reporting Standards as adopted by
the European Union and interpretations issued by the IFRS Interpretations
Committee (together ’IFRS’); are prepared under the historical cost
convention except as where stated; and comply with Company (Jersey) Law
1991. The material accounting policies are set out below and have been
applied consistently throughout the period.
The Company prepares its financial statements on a historical cost basis,
unless accounting standards require an alternate measurement basis. Where
there are assets and liabilities calculated on a different basis, this
fact is disclosed either in the relevant accounting policy or in the notes
to the financial statements.
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.
For explanation of the key judgements and estimates made by the Company in
applying the Company’s accounting policies, refer to significant
accounting judgements and estimates on pages 16 to 18.
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 $224 million, with debt of $92 million
maturing in April 2030 and significant headroom on both the equity ratio
and minimum liquidity financial covenants.
Although agreements have been reached between the Federal Government of
Iraq, the Kurdistan Regional Government and a group of international oil
companies to resume exports of crude oil produced in Kurdistan through the
Iraq-Türkiye Pipeline, the Company has elected not to participate for now.
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 domestic sales, the
Company’s forecast liquidity provides adequate headroom over its forecast
expenditure for the 12 months following the signing of the Annual Report
for the period ended 31 December 2025 and consequently that the Company is
considered a going concern.
Consolidation
The consolidated financial statements consolidate the Company and its
subsidiaries. These accounting policies have been adopted by all
companies.
Subsidiaries
Subsidiaries are all entities over which the Company has control. The
Company controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability
to affect those returns through its power over the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to
the Company. They are deconsolidated from the date that control ceases.
Transactions, balances and unrealised gains on transactions between
companies are eliminated.
Joint arrangements and associates
Arrangements under which the Company has contractually agreed to share
control with another party, or parties, are joint ventures where the
parties have rights to the net assets of the arrangement, or joint
operations where the parties have rights to the assets and obligations for
the liabilities relating to the arrangement. Investments in entities over
which the Company has the right to exercise significant influence but has
neither control nor joint control are classified as associates and
accounted for under the equity method.
The Company recognises its assets, liabilities, income and expenses
relating to its interests in joint operations, including its share of
assets and income held jointly and liabilities and expenses incurred
jointly with other partners.
Significant accounting judgements and estimates
The preparation of the financial statements in accordance with IFRS
requires the Company to make judgements and estimates 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.
Significant judgements
There are no significant judgements that the Directors have made in the
process of applying the Group and Company’s accounting policies that
require additional disclosure not already provided under significant
estimates.
Significant estimates
The following are the critical estimates that the Directors have made in
the process of applying the Group and Company’s 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 and
the viability statement.
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% (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 year-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, going concern and the
viability statement.
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+
Actual / Assumption 69 65 67 70 75
HY2025 assumption 65 65 70 75 75
Prior year assumption 75 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 for export sales from 1 September 2022 up to March 2023, sales
were 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 dated Brent. The Company did not agree on this new pricing formula
and continued to invoice based on the agreed formula using reference Brent
price. 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.
Since the export pipeline closure in March 2023 the Company has sold its
production domestically and at lower realised oil prices than previously
achieved through export.
Estimation of the recoverable value of trade receivables (note 11)
As of 31 December 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 (note 14)
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.$3 million and 1% increase in
discount rate would decrease the existing provision by c.$3 million, the
combined impact would be c.$0.3m. The cash flows relating to the
decommissioning and abandonment provision are expected to occur in 2036.
Arbitration costs award (note 13)
The consolidated accounts include an accrual of $26 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 Group and Company’s accounting policies and that
have effect on the amounts recognised in the financial statements.
Taxation
Under the terms of the KRI PSCs, 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.
Accounting policies
The accounting policies adopted in preparation of these financial
statements are consistent with those used in preparation of the annual
financial statements for the year ended 31 December 2024.
Revenue
Revenue from contracts with customers is earned based on the entitlement
mechanism under the terms of the relevant PSC.
Under IFRS 15, entitlement revenue is recognised when the control of the
product is deemed to have passed to the customer, in exchange for the
consideration amount determined by the terms of the contract. For sales
through pipeline, the control passes to the customer when the oil enters
the pipe. For sales through trucks, the control passes to the customer
when the oil is delivered to the trucks.
Entitlement has two components: cost oil, which is the mechanism by which
the Company recovers its costs incurred on an asset, and profit oil, which
is the mechanism through which profits are shared between the Company, its
partners and the KRG. Profit oil revenue is always reported net of any
capacity building payments that will become due.
The Company’s export oil sales made to the KRG are valued at a netback
price which is explained further in significant accounting estimates and
judgements. The Company’s domestic sales are valued at the price agreed
with the domestic buyers. All production in 2025 was sold into the
domestic market.
The Company is not able to measure the tax that has been paid on its
behalf and consequently has not been able to assess where revenue should
be reported gross of implied income tax paid.
Intangible assets
Exploration and evaluation assets
Oil and gas assets classified as exploration and evaluation assets are
explained under Oil and Gas assets below.
Tawke RSA
Intangible assets include the Receivable Settlement Agreement (‘RSA’)
effective from 1 August 2017, which was entered into in exchange for trade
receivables due from KRG for Taq Taq and Tawke past sales. The RSA was
recognised at cost and is amortised on a units of production basis in line
with the economic lives of the rights acquired.
Property, plant and equipment
Producing and Development assets
Oil and gas assets classified as producing and development assets are
explained under Oil and Gas assets below.
Oil and Gas assets
Costs incurred prior to obtaining legal rights to explore are expensed to
the statement of comprehensive income. Exploration, appraisal and
development expenditure is accounted for under the successful efforts
method. Under the successful efforts method only costs that relate
directly to the discovery and development of specific oil and gas reserves
are capitalised as exploration and evaluation assets within intangible
assets so long as the activity is assessed to be de-risking the asset and
the Company expects continued activity on the asset into the foreseeable
future. Costs of activity that do not identify oil and gas reserves are
expensed.
All licence acquisition costs, geological and geophysical costs,
inventories and other direct costs of exploration, evaluation and
development are capitalised as intangible assets or property, plant and
equipment according to their nature. Intangible assets comprise costs
relating to the exploration and evaluation of properties which the
Directors consider to be unevaluated until assessed as being 2P reserves
and commercially viable.
Once assessed as being 2P reserves they are tested for impairment and
transferred to property, plant and equipment as development assets. Where
properties are appraised to have no commercial value, the associated costs
are expensed as an impairment loss in the period in which the
determination is made. Development assets are classified under producing
assets following the commercial production commencement.
Development expenditure is accounted for in accordance with IAS 16 –
Property, plant and equipment. Producing assets are depreciated once they
are available for use and are depleted on a field-by-field basis using the
unit of production method. The sum of carrying value and the estimated
future development costs are divided by total barrels to provide a
$/barrel unit depreciation cost. Changes to depreciation rates as a result
of changes in forecast production and estimates of future development
expenditure are reflected prospectively.
The estimated useful lives of property, plant and equipment and their
residual values are reviewed on an annual basis and changes in useful
lives are accounted for prospectively. The gain or loss arising on the
disposal or retirement of an asset is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised
in the statement of comprehensive income for the relevant period.
Where exploration licences are relinquished or exited for no consideration
or costs incurred are neither de-risking nor adding value to the asset,
the associated costs are expensed to the income statement.
Impairment testing of oil and gas assets is considered in the context of
each cash generating unit. A cash generating unit is generally a licence,
with the discounted value of the future cash flows of the CGU compared to
the book value of the relevant assets and liabilities.
Subsequent costs
The cost of replacing part of an item of property and equipment is
recognised in the carrying amount of the item if it is probable that the
future economic benefits embodied within the part will flow to the
Company, and its cost can be measured reliably. The net book value of the
replaced part is expensed. The costs of the day-to-day servicing and
maintenance of property, plant and equipment are recognised in the
statement of comprehensive income.
Assets and liabilities held for sale and discontinued operations
A part of the Company’s operations is classified as a discontinued
operation if the component has either been disposed of or is classified as
held for sale and represents a separate major line of business or
geographic area of operations, is part of a single coordinated plan to
dispose of a separate major line of business or geographic area of
operations, or is a subsidiary acquired exclusively with a view to resale.
The disposal group or asset classified as asset held for sale is measured
at the lower of its carrying amount and fair value less cost to sell.
Assets held for sale are presented under a separate line item within
current assets and liabilities directly associated with assets held for
sale are presented separately under current liabilities. Discontinued
operations are excluded from the net income/loss from continuing
operations and are presented as a single amount as gain/loss from
discontinued operations in the consolidated statement of comprehensive
income. When an operation is classified as a discontinued operation, the
comparative consolidated statement of comprehensive income is restated and
presented as if the operation had been classified as such from the start
of the comparative year.
Financial assets and liabilities
Classification
The Company assesses the classification of its financial assets on initial
recognition at amortised cost, fair value through other comprehensive
income or fair value through profit and loss. The Company assesses the
classification of its financial liabilities on initial recognition at
either fair value through profit and loss or amortised cost.
Recognition and measurement
Regular purchases and sales of financial assets are recognised at fair
value on the trade-date – the date on which the Company commits to
purchase or sell the asset. Trade and other receivables, trade and other
payables and borrowings are subsequently carried at amortised cost using
the effective interest method.
Trade and other receivables
Trade receivables are amounts due from crude oil sales, sales of gas or
services performed in the ordinary course of business. If payment is
expected within one year or less, trade receivables are classified as
current assets otherwise they are presented as non-current assets. Trade
receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less
provision for expected credit loss. The Company’s assessment of expected
credit loss model is explained below under financial assets.
Cash and cash equivalents
In the consolidated balance sheet and consolidated statement of cash
flows, cash and cash equivalents includes cash in hand, deposits held on
call with banks, other short-term highly liquid investments which are
assessed as cash and cash equivalents under IAS 7 and includes the
Company’s share of cash held in joint operations.
Interest-bearing borrowings
Borrowings are recognised initially at fair value, net of any discount in
issuance and transaction costs incurred. Borrowings are subsequently
carried at amortised cost; any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the statement
of comprehensive income over the period of the borrowings using the
effective interest method. When the Company buys back its bond, the
carrying amount of the liability is measured based on the repayment amount
by allocating the initial transaction cost and the difference is
recognised in the statement of comprehensive income.
Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan.
Borrowings are presented as long or short-term based on the maturity of
the respective borrowings in accordance with the loan or other agreement.
Borrowings with maturities of less than twelve months are classified as
short-term. Amounts are classified as long-term where maturity is greater
than twelve months. Where no objective evidence of maturity exists,
related amounts are classified as short-term.
Trade and other payables
Trade and other payables are recognised initially at fair value.
Subsequent to initial recognition they are measured at amortised cost
using the effective interest method.
Offsetting
Financial assets and liabilities are offset and the net amount reported in
the balance sheet when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.
Provisions
Provisions are recognised when the Company has a present obligation as a
result of a past event, and it is probable that the Company will be
required to settle that obligation. Provisions are measured at the
Company’s best estimate of the expenditure required to settle the
obligation at the balance sheet date and are discounted to present value
where the effect is material. The unwinding of any discount is recognised
as finance costs in the statement of comprehensive income.
Decommissioning
Provision is made for the cost of decommissioning assets at the time when
the obligation to decommission arises. Such provision represents the
estimated discounted liability for costs which are expected to be incurred
in removing production facilities and site restoration at the end of the
producing life of each field. A corresponding cost is capitalised to
property, plant and equipment and subsequently depreciated as part of the
capital costs of the production facilities. Any change in the present
value of the estimated expenditure attributable to changes in the
estimates of the cash flow or the current estimate of the discount rate
used are reflected as an adjustment to the provision and capitalised as
part of the cost of the assets.
Impairment
Exploration and evaluation assets
Spend on exploration and evaluation assets is capitalised in accordance
with IFRS 6. The carrying amounts of the Company’s exploration and
evaluation assets are reviewed at each reporting date to determine whether
there is any indication of impairment under IFRS 6. Impairment assessment
of exploration and evaluation assets is considered in the context of each
cash generating unit, which is generally represented by relevant the
licence.
Producing and Development assets
The carrying amounts of the Company’s producing and development assets are
reviewed at each reporting date to determine whether there is any
indication of impairment or reversal of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated. The recoverable
amount of an asset or cash generating unit is the greater of its value in
use and its fair value less costs of disposal. For value in use, the
estimated future cash flows arising from the Company’s future plans for
the asset are discounted to their present value using a nominal post tax
discount rate that reflects market assessments of the time value of money
and the risks specific to the asset. For fair value less costs of
disposal, an estimation is made of the fair value of consideration that
would be received to sell an asset less associated selling costs (which
are assumed to be immaterial). Assets are grouped together into the
smallest group of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows of other assets or groups
of assets (cash generating unit).
The estimated recoverable amount is then compared to the carrying value of
the asset. Where the estimated recoverable amount is materially lower than
the carrying value of the asset an impairment loss is recognised.
Non-financial assets that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date.
Property, plant and equipment and intangible assets
Impairment testing of oil and gas assets is explained above. When
impairment indicators exist for other non-financial assets, impairment
testing is performed based on the higher of value in use and fair value
less costs of disposal. The Company assets' recoverable amount is
determined by fair value less costs of disposal.
Financial assets
Impairment of financial assets is assessed under IFRS 9 with a
forward-looking expected credit loss (‘ECL’) model. The standard requires
the Company to book an allowance for ECL for its financial assets. The
Company has assessed its trade receivables as at 31 December 2025 for ECL.
Further explanation is provided in significant accounting judgements and
estimates.
Equity
Share capital
Amounts subscribed for share capital at nominal value. Ordinary shares are
classified as equity. When share capital recognised as equity is
repurchased, the amount of the consideration paid, which includes directly
attributable costs, is net of any tax effects and is recognised as a
deduction in equity. Repurchased shares are classified as treasury shares
and are presented as a deduction from total equity. When treasury shares
are subsequently sold or reissued, the amount received is recognised as an
increase in equity and the resulting surplus or deficit of the transaction
is transferred to/from retained earnings.
Share premium
Amounts subscribed for share capital in excess of nominal value.
Accumulated loss
Cumulative net losses recognised in the statement of comprehensive income
net of amounts recognised directly in equity.
Dividend
Liability to pay a dividend is recognised based on the declared timetable.
A corresponding amount is recognised directly in equity.
Employee benefits
Short-term benefits
Short-term employee benefit obligations are expensed to the statement of
comprehensive income as the related service is provided. A liability is
recognised for the amount expected to be paid under short-term cash bonus
or profit-sharing plans if the Company has a present legal or constructive
obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
Share-based payments
The Company operates equity-settled share-based compensation plans. The
expense required in accordance with IFRS 2 is recognised in the statement
of comprehensive income over the vesting period of the award and partially
capitalised as oil and gas assets in line with the hours incurred by the
employees. The expense is determined by reference to option pricing
models, principally Monte Carlo and adjusted Black-Scholes models.
At each balance sheet date, the Company revises its estimate of the number
of options that are expected to become exercisable. Any revision to the
original estimates is reflected in the statement of comprehensive income
with a corresponding adjustment to equity immediately to the extent it
relates to past service and the remainder over the rest of the vesting
period.
Finance income and finance costs
Finance income comprises interest income on cash invested, foreign
currency gains and the unwind of discount on any assets held at amortised
cost. Interest income is recognised as it accrues, using the effective
interest method.
Finance expense comprises interest expense on borrowings, foreign currency
losses and discount unwind on any liabilities held at amortised cost.
Borrowing costs directly attributable to the acquisition of a qualifying
asset as part of the cost of that asset are capitalised over the
respective assets.
Taxation
Under the terms of the KRI PSCs, the Company is not required to pay any
cash corporate income taxes as explained in significant accounting
judgements and estimates. Current tax expense is incurred on profits of
service companies.
Segmental reporting
IFRS 8 requires the Company to disclose information about its business
segments and the geographic areas in which it operates. It requires
identification of business segments on the basis of internal reports that
are regularly reviewed by the CEO, the chief operating decision maker, in
order to allocate resources to the segment and assess its performance.
Related parties
Parties are related if one party has the ability, directly or indirectly,
to control the other party or exercise significant influence over the
party in making financial or operational decisions. Parties are also
related if they are subject to common control. Transactions between
related parties are transfers of resources, services or obligations,
regardless of whether a price is charged and are disclosed separately
within the notes to the consolidated financial information.
New standards
The following new accounting standards, amendments to existing standards
and interpretations are effective on 1 January 2025: Amendments to IAS 21
The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
(issued on 15 August 2023). These standards did not have a material impact
on the Company’s results or financial statements disclosures in the
current reporting period.
The following new accounting standards, amendments to existing standards
and interpretations are effective on 1 January 2026 and have been endorsed
in 2025: Annual Improvements Volume 11 (issued on 18 July 2024), Contracts
Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7
(issued on 18 December 2024), Amendments to the Classification and
Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
(issued on 30 May 2024). 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), Amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates: Translation to a Hyperinflationary Presentation Currency
(issued on 13 November 2025), Amendments to IFRS 19 Subsidiaries without
Public Accountability: Disclosures (issued on 21 August 2025). 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
and the Company is still assessing the full impact.
2. 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 make export sales to the KRG and domestic sales
to the domestic buyers where one buyer contributed c.80% of revenue,
c.$55m (2024: one buyer contributed 70%, c.$50m). The pre-production
segment is comprised of exploration activity, principally located in Oman,
Somaliland and Morocco (exited in June 2025). ‘Other’ includes corporate
assets, liabilities and costs, elimination of intercompany receivables and
intercompany payables, which are non-segment items.
For the year ended 31 December 2025
Pre-production Total
Production Other
$m $m $m $m
Revenue from contracts with 68.7 - - 68.7
customers (domestic)
Other income 3.4 - - 3.4
Cost of sales (71.0) - - (71.0)
Gross profit 1.1 - - 1.1
Exploration expense - (0.3) - (0.3)
ECL of trade receivables (1.3) - - (1.3)
Arbitration cost reversal - - 9.1 9.1
General and administrative costs - - (18.9) (18.9)
Operating loss (0.2) (0.3) (9.8) (10.3)
Operating loss is comprised of
EBITDAX 51.1 - (7.8) 43.3
Depreciation and amortisation (50.0) - (0.1) (50.1)
Exploration expense - (0.3) - (0.3)
Other non-cash expenses (1.3) - (1.9) (3.2)
Finance income - - 8.9 8.9
Bond interest expense - - (9.1) (9.1)
Other finance expense (1.1) - (1.1) (2.2)
Loss before income tax from (1.3) (0.3) (11.1) (12.7)
continuing operations
Profit from discontinued 3.9 - - 3.9
operations
Profit / (Loss) before income 2.6 (0.3) (11.1) (8.8)
tax
Capital expenditure 24.2 5.0 - 29.2
Total assets 301.8 37.4 221.8 561.0
Total liabilities (79.5) (27.8) (102.7) (210.0)
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.
For the year 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.
3. Operating loss
2025 2024
$m $m
Production costs (21.0) (17.6)
Depreciation of oil and gas property, plant and (45.0) (46.6)
equipment (excl. RoU assets)
Amortisation of oil and gas intangible assets (5.0) (5.5)
Cost of sales (71.0) (69.7)
Exploration expense (0.3) (2.7)
Reversal of ECL of trade receivables (note 1,11) - 1.4
ECL of trade receivables (note 1,11) (1.3) -
Net (ECL) / reversal of ECL of receivables (1.3) 1.4
Arbitration cost reversal / (accrual) 9.1 (36.0)
Reversal of provisions - 3.8
Reversal of / (accrual for) arbitration cost 9.1 (32.2)
Corporate cash costs (9.1) (13.3)
Other operating costs (7.8) (8.6)
Corporate share-based payment expense (1.9) (1.9)
Depreciation and amortisation of corporate assets (0.1) (0.1)
General and administrative costs (18.9) (23.9)
Auditor’s remuneration:
Audit of the Group’s consolidated financial statements (0.3) (0.4)
Audit of the Group’s subsidiaries pursuant to legislation (0.1) (0.1)
Total audit services (0.4) (0.5)
Interim review (0.1) (0.1)
Total audit related and non-audit services (0.5) (0.6)
All fees paid to the auditor were charged to operating loss in both years.
4. Staff costs and headcount
2025 2024
$m $m
Wages and salaries (14.8) (17.4)
Contractors (0.3) (0.2)
Social security costs (1.2) (1.2)
Share based payments (2.8) (2.7)
(19.1) (21.5)
2025 number 2024 number
Average headcount was:
UK 23 25
Türkiye 28 31
Somaliland 23 26
KRI 1 5
75 87
5. Finance expense and income
2025 2024
$m $m
Bond interest (9.1) (18.2)
Loss on bond buy-backs - (4.6)
Other finance expense (non-cash) (2.2) (2.7)
Finance expense (11.3) (25.5)
Bank interest income 8.9 15.8
Finance income 8.9 15.8
Net finance expense (2.4) (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 1.
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:
2025 2024
$m $m
Property, plant and equipment (note 1,10) - 32.5
Trade receivables, net of ECL (note 11) - 9.3
Assets classified as held for sale - 41.8
Other payables and accruals - 4.8
Deferred income - 15.8
Provisions (note 14) - 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 year.
The results of the discontinued operations from Taq Taq and Sarta, which
have been included in the loss for the period, were as follows:
2025 2024
$m $m
Other operating costs (0.9) (10.5)
Impairment loss on Taq Taq held for sale asset - (2.2)
Reversal of ECL of trade receivables 1.2 -
Write-off of trade receivables (note 11) (8.9) -
Write-off of trade payables 12.5 -
General and administrative costs - 0.4
Operating profit / (loss) 3.9 (12.3)
Other finance expense (non-cash) - (2.4)
Profit / (Loss) from discontinued operations 3.9 (14.7)
2025 2024
Cash flows from discontinued operations $m $m
Net cash used in operating activities (2.3) (10.3)
Net cash used in investing activities - -
Net cash used in financing activities - -
8. Earnings / (Loss) per share
Basic
Basic earnings / (loss) per share is calculated by dividing the profit /
(loss) attributable to owners of the parent by the weighted average number
of shares in issue during the year.
2025 2024
Loss from continuing operations ($m) (12.8) (62.2)
Profit / (Loss) from discontinued operations ($m) 3.9 (14.7)
Loss attributable to owners of the parent ($m) (8.9) (76.9)
Weighted average number of ordinary shares – 275,454,531 276,223,685
number 1
Basic LPS – cents (from continuing operations) (4.6) (22.5)
Basic EPS / (LPS) – cents (from discontinuing 1.4 (5.3)
operations)
Basic LPS – cents (3.2) (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 year ended 31
December 2025 and 31 December 2024, the performance shares, restricted
shares and share options are anti-dilutive and therefore diluted LPS is
the same as basic LPS:
2025 2024
Loss from continuing operations ($m) (12.8) (62.2)
Profit / (Loss) from discontinued operations ($m) 3.9 (14.7)
Loss attributable to owners of the parent ($m) (8.9) (76.9)
Weighted average number of ordinary shares – 275,454,531 276,223,685
number1
Adjustment for performance shares, restricted - -
shares, share options and deferred bonus plans
Weighted average number of ordinary shares and 275,454,531 276,223,685
potential ordinary shares
Diluted LPS – cents (from continuing operations) (4.6) (22.5)
Diluted EPS / (LPS) – cents (from discontinuing 1.4 (5.3)
operations)
Diluted LPS – cents (3.2) (27.8)
1 Excluding shares held as treasury shares and by the Employee Benefit
Trust
Adjusted Basic LPS
Adjusted basic LPS is loss and total comprehensive expense adjusted for
the add back of net impairment/write-off of oil and gas assets and net
ECL/reversal of ECL of receivables divided by weighted average number of
ordinary shares.
2025 2024
Loss attributable to owners of the parent ($m) (8.9) (76.9)
Add back of impairment loss on Taq Taq held for - 2.2
sale asset
Add back of net reversal of ECL/ECL of receivables 0.1 (1.4)
Loss attributable to owners of the parent ($m) - (8.8) (76.1)
adjusted
Weighted average number of ordinary shares – 275,454,531 276,223,685
number 1
Adjusted basic LPS – cents per share (3.2) (27.6)
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 2.7 - - 2.7
Other 0.4 - - 0.4
At 31 December 2024 and 1 January 25.9 128.5 7.5 161.9
2025
Additions 5.0 - - 5.0
Other 0.4 - - 0.4
At 31 December 2025 31.3 128.5 7.5 167.3
Accumulated amortisation and
impairment
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 - (5.0) - (5.0)
period
At 31 December 2025 - (77.1) (7.5) (84.6)
Net book value
At 1 January 2024 22.8 61.9 - 84.7
At 31 December 2024 25.9 56.4 - 82.3
At 31 December 2025 31.3 51.4 - 82.7
2025 2024
Book value $m $m
Somaliland PSC Exploration 27.6 25.9
Oman PSC Exploration 3.7 -
Exploration and evaluation assets 31.3 25.9
Tawke capacity building payment waiver 51.4 56.4
Tawke RSA assets 51.4 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 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 24.2 0.2 24.4
Right-of-use assets - 1.8 1.8
Other1 0.6 - 0.6
At 31 December 2025 1,342.9 20.4 1,363.3
Accumulated depreciation and impairment
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 (45.0) (1.4) (46.4)
At 31 December 2025 (1,173.5) (18.3) (1,191.8)
Net book value
At 1 January 2024 244.7 1.8 246.5
At 31 December 2024 189.6 1.5 191.1
At 31 December 2025 169.4 2.1 171.5
1 Other line includes non-cash asset retirement obligation provision and
share-based payment costs.
2025 2024
Book value $m $m
Tawke PSC Oil production 169.4 189.6
Producing assets 169.4 189.6
The sensitivities below provide an indicative impact on net asset value of
a change in netback price, discount rate or production, assuming no change
to any other inputs.
Tawke CGU
Sensitivities $m
Long term netback price +/- $5/bbl +/- 17
Discount rate +/- 1% +/- 11
Production +/- 10% +/- 34
Domestic sales for 1 more year - 19
11. Trade and other receivables
2025 2024
$m $m
Trade receivables – non-current 59.4 60.9
Trade receivables – current 16.6 24.1
Other receivables and prepayments 6.4 3.1
82.4 88.1
As of 31 December 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
31
December 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
2025 2024
Movement on trade receivables in the period
$m $m
Carrying value at the beginning of the period 85.0 92.9
Revenue from contracts with customers 68.7 74.7
Cash for domestic sales (68.7) (74.7)
Write-off of Sarta receivables (note 7) (8.9) -
Reversal of previous year’s expected credit loss (note 1) 1.2 1.4
Expected credit loss for current period (note 1) (1.3) -
Reclassified as held for sale (note 7) - (9.3)
Carrying value at the end of the period 76.0 85.0
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 1, 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 1.
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 1, 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. Cash and cash equivalents
2025 2024
$m $m
Cash and cash equivalents 224.4 195.6
224.4 195.6
Cash is primarily invested with major international financial
institutions, in US Treasury bills or liquidity funds.
13. Trade and other payables
2025 2024
$m $m
Trade payables 12.1 20.0
Other payables 35.5 32.7
Accruals 45.4 57.1
93.0 109.8
Non-current 1.3 0.2
Current 91.7 109.6
93.0 109.8
Current payables are predominantly short-term in nature and there is
minimal difference between contractual cash flows related to the financial
liabilities and their carrying amount. For non-current payables,
liabilities are recognised at discounted fair value using the effective
interest rate. Lease liabilities are included in other payables.
14. Provisions
2025 2024
$m $m
Balance at 1 January 25.1 45.2
Interest unwind 1.1 1.8
Additions 0.1 2.9
Reclassified as held for sale (note 7) - (21.2)
Reversals - (3.6)
Balance at 31 December 26.3 25.1
Provisions cover expected decommissioning, abandonment and exit costs
arising from the Company’s assets which are further explained in note 1.
15. Interest bearing loans and net cash
Purchase/
Discount issuance Free 31 Dec
1 Jan 2025 unwind cash 2025
of bond flow
$m $m $m $m $m
2025 Bond 9.25% coupon (current) (64.9) (0.9) 65.8 - -
2030 Bond 11% coupon - (0.2) (90.5) - (90.7)
(non-current)
Cash 195.6 - 24.7 4.1 224.4
Net cash 130.7 (1.1) - 4.1 133.7
As of 31 December 2025, the fair value of the $92 million of bonds held by
third parties is $96 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 YE 2025 Test YE 2024
Equity ratio (Total equity/Total assets) > 30% 63% > 40% 60%
Minimum liquidity > $20m $224.4m > $30m $195.6m
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
16. Financial Risk Management
Credit risk
Credit risk arises from cash and cash equivalents, trade and other
receivables and other assets. The carrying amount of financial assets
represents the maximum credit exposure. The maximum credit exposure to
credit risk at 31 December was:
2025 2024
$m $m
Trade and other receivables 80.0 85.6
Cash and cash equivalents 224.4 195.6
304.4 281.2
All trade receivables are owed by the KRG. Cash is deposited with major
international financial institutions and the US treasury that are assessed
as appropriate based on, among other things, sovereign risk, CDS pricing
and credit rating.
Liquidity risk
The Company is committed to ensuring it has sufficient liquidity to meet
its payables as they fall due. At 31 December 2025, the Company had cash
and cash equivalents of $224.4 million (2024: $195.6 million). The
maturity of trade and other payables is disclosed in Note 13, and the
fixed‑rate debt profile and associated interest rate risk considerations
are disclosed below under interest rate risk.
Oil price risk
The Company’s export revenues are calculated from netback price and
domestic sales revenues are from a price established on an arm’s length
basis as further explained in note 1, and a $5/bbl change in average price
across domestic sales would result in a (loss) / profit before tax change
of circa $6 million.
Currency risk
Other than head office costs, substantially all of the Company’s
transactions are denominated and/or reported in US dollars. The exposure
to currency risk is therefore immaterial and accordingly no sensitivity
analysis has been presented.
Interest rate risk
The Company reported borrowings of $90.7 million (2024: $64.9 million) in
the form of a bond maturing in April 2030, with half-yearly fixed coupon
interest payable of 11% p.a. on the nominal value of $92 million (2024:
$66 million). Although interest is fixed on existing debts, whenever the
Company wishes to borrow new debt or refinance existing debt, it will be
exposed to interest rate risk. A 1% increase in interest rate payable on a
balance similar to the existing debts of the Company would result in an
additional cost of circa $1 million per annum.
Capital management
The Company manages its capital to ensure that it remains sufficiently
funded to support its business strategy and maximise shareholder value.
The Company’s short-term funding needs are met principally from the cash
flows generated from its operations and available cash of $224.4 million
(2024: $195.6 million).
Financial instruments
All financial assets and liabilities are measured at amortised cost. Due
to their short-term nature except interest bearing loans and non-current
portion of trade receivables, the carrying value of these financial
instruments approximates their fair value. Their carrying values are as
follows:
Financial assets 2025 2024
$m $m
Trade and other receivables 80.0 85.6
Cash and cash equivalents 224.4 195.6
304.4 281.2
Financial liabilities
Trade and other payables 90.5 108.4
Interest bearing loans 90.7 64.9
181.2 173.3
17. Share capital
Total
Ordinary Shares
At 1 January 2024 – fully paid1 280,248,198
At 31 December 2024, 1 January 2025 and 31 December 2025 280,248,198
– fully paid1
1 Ordinary shares include 845,335 (2024: 845,335) treasury shares. Share
capital includes 3,832,307 (2024: 4,067,720) of trust shares.
There have been no changes to the authorised share capital since it was
determined to be 10,000,000,000 ordinary shares of £0.10 per share.
18. Share based payments
The Company has three share-based payment plans under which awards are
currently outstanding: performance share plan (2021), deferred bonus plan
(2021) and restricted share plan (2011). The main features of these share
plans are set out below.
Key features PSP (2021) DBP (2021) RSP (2011)
Deferred bonus Restricted
Either Performance shares. The shares. The
shares or restricted intention is to intention is to
shares. The intention deliver the full deliver the full
is to deliver the full value of shares at value of shares
Form of awards value of vested shares no cost to the at no cost to
at no cost to the participant (as the participant
participant (as conditional shares (as conditional
conditional shares or or nil-cost shares or
nil-cost options). options). nil-cost
options).
Performance conditions Performance
may or may not apply. Performance conditions may
Awards granted with conditions may or or may not
performance conditions may not apply. For apply. For
Performance are measured against awards granted to awards granted
conditions relative and absolute date, there are no to date, there
TSR measured against a performance are no
group of industry peers conditions. performance
over a three-year conditions.
period.
For awards subject to
performance conditions,
they will vest when the
Remuneration Committee
determines whether the
performance conditions Awards typically Awards typically
Vesting period have been met at the vest after two vest in tranches
end of the performance years. over three
period. For awards that years.
are not subject to
performance conditions,
awards typically vest
in tranches over three
years.
Provision of
Provision of additional additional
cash/shares to reflect cash/shares to Provision of
dividends over the reflect dividends additional
vesting period and the over the vesting cash/shares to
Dividend period where the period and the reflect
equivalents options have vested and period where the dividends over
have not yet been options have the vesting
exercised (where vested and have period may or
applicable) may or may not yet been may not apply.
not apply. exercised (where
applicable) may or
may not apply.
In 2025, awards were made under the performance share plan and deferred
bonus plan. The numbers of outstanding shares as at 31 December 2025 are
set out below:
Weighted
Share awards Share awards avg.
with without Share exercise
performance performance options price of
conditions conditions share
options
Outstanding at 1 January 7,561,301 1,002,917 18,452 1,046p
2024
Granted during the year 4,075,827 428,066 - -
Forfeited during the year (2,152,140) - - -
Lapsed during the year (1,467,593) (155,387) (18,452) 1,046p
Exercised during the year - (364,428) - -
Outstanding at 31 Dec 2024 8,017,395 911,168 - -
and 1 Jan 2025
Granted during the year 4,475,401 711,232 - -
Forfeited during the year (1,847,249) - - -
Lapsed during the year (423,570) (46,279) - -
Exercised during the year - (300,435) - -
Outstanding at 31 December 10,221,977 1,275,686 - -
2025
Fair value of awards granted during the year has been measured by use of
the Monte-Carlo pricing model. The model takes into account assumptions
regarding expected volatility, expected dividends and expected time to
exercise. Expected volatility was also analysed with the historical
volatility of FTSE-listed oil and gas producers over the three years prior
to the date of grant. The expected dividend assumption was set at 0%. The
risk-free interest rate incorporated into the model is based on the term
structure of UK Government zero coupon bonds.
The inputs into the fair value calculation for PSP awards granted in 2025
and fair values per share using the model were as follows:
PSP (without condition) PSP
02/04/2025 02/04/2025
Share price at grant date 63p 63p
Fair value on measurement date 63p 40p
Expected life (years) 1-3 1-3
Expected dividends - -
Risk-free interest rate 3.95% 3.95%
Expected volatility 49.35% 49.35%
Share price at balance sheet date 60p 60p
The weighted average fair value for PSP awards (without condition) granted
in 2025 is 63p and for PSP awards granted in 2025 is 40p.
The inputs into the fair value calculation for PSP awards granted in 2024
and fair values per share using the model were as follows:
PSP (without PSP PSP (without PSP
condition) condition)
30/04/2024 10/09/2024
30/04/2024 10/09/2024
Share price at grant 85p 85p 74p 74p
date
Fair value on 85p 52p 74p 40p
measurement date
Expected life (years) 1-3 1-3 1-3 1-3
Expected dividends - - - -
Risk-free interest rate 4.45% 4.45% 3.70% 3.70%
Expected volatility 44.89% 44.89% 44.75% 44.75%
Share price at balance 66p 66p 66p 66p
sheet date
The weighted average fair value for PSP awards (without condition) granted
in 2024 is 85p and for PSP awards granted in 2024 is 51p.
Total share-based payment charge for the year was $2.8 million (2024: $2.7
million).
19. 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.
20. Related parties
The Directors have identified related parties of the Company under IAS 24
as being: the shareholders; members of the Board; and members of the
executive committee, together with the families and companies, associates,
investments and associates controlled by or affiliated with each of them.
The compensation of key management personnel including the Directors of
the Company is as follows:
2025 2024
$m $m
Board remuneration 0.8 0.7
Key management emoluments and short-term benefits 4.8 4.0
Share-related awards 1.6 1.7
7.2 6.4
There have been no changes in related parties since last year and no
related party transactions that had a material effect on financial
position or performance in the year.
21. Events occurring after the reporting period
Following the U.S.-Israeli air war on Iran that started on 28 February
2026, production and drilling operations on the Tawke licence were
temporarily shut down. The Company continues to monitor developments
closely to assess when it can safely and securely resume operations.
22. Subsidiaries and joint arrangements
The Company holds 25% working interest in Tawke licence, 40% in Oman Block
54 licence and 51% in Somaliland SL10B13 licence.
For the period ended 31 December 2025 the principal subsidiaries of the
Company were the following:
Entity name Country of Ownership %
Incorporation (ordinary shares)
Barrus Petroleum Cote D'Ivoire Sarl1 Cote d'Ivoire 100
Barrus Petroleum Limited2 Isle of Man 100
Genel Energy Africa Exploration UK 100
Limited3
Genel Energy Finance 4 plc3 UK 100
Genel Energy Holding Company Limited4 Jersey 100
Genel Energy International Limited5 Anguilla 100
Genel Energy Miran Bina Bawi Limited3 UK 100
Genel Energy Morocco Limited3 UK 100
Genel Energy No. 6 Limited3 UK 100
Genel Energy Block 54 Oman Limited3 UK 100
Genel Energy Petroleum Services UK 100
Limited3
Genel Energy Qara Dagh Limited3 UK 100
Genel Energy Sarta Limited3 UK 100
Genel Energy Somaliland Limited3 UK 100
Genel Energy UK Services Limited3 UK 100
Genel Energy Yӧnetim Hizmetleri A.Ş.6 Turkey 100
1 Registered office is 7 Boulevard Latrille, Cocody, 25 B.P. 945 Abidjan
25, Cote d'Ivoire
2 Registered office is 6 Hope Street, Castletown, IM9 1AS, Isle of Man
3 Registered office is Fifth Floor, 36 Broadway, Victoria, London, SW1H
0BH, United Kingdom
4 Registered office is 26 New Street, St Helier, JE2 3RA, Jersey
5 Registered office is PO Box 1338, Maico Building, The Valley, Anguilla
6 Registered office is Vadi Istanbul 1 B Block, Ayazaga Mahallesi,
Azerbaycan Caddesi, No:3 Floor: 18, 34396, Sariyer, Istanbul, Turkey
23. Annual report
Copies of the 2025 annual report will be despatched to shareholders in
March 2026 and will also be available from the Company’s registered office
at 26 New Street, St Helier, Jersey, JE2 3RA and at the Company’s website
– 2 www.genelenergy.com.
24. Statutory financial statements
The financial information for the year ended 31 December 2025 contained in
this preliminary announcement has been audited and was approved by the
Board on 17 March 2026. The financial information in this statement does
not constitute the Company's statutory financial statements for the years
ended 31 December 2025 or 2024. The financial information for 2025 and
2024 is derived from the statutory financial statements for 2024, which
have been delivered to the Registrar of Companies, and 2025, which will be
delivered to the Registrar of Companies and issued to shareholders in
March 2026. The auditors have reported on the 2025 and 2024 financial
statements; their report was unqualified and did not include a reference
to any matters to which the auditors drew attention by way of emphasis
without qualifying their report. The statutory financial statements for
2025 are prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted for use in the European Union. The accounting
policies (that comply with IFRS) used by Genel Energy plc are consistent
with those set out in the 2024 annual report.
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Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by 3 EQS Group.
The issuer is solely responsible for the content of this announcement.
View original content: 4 EQS News
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ISIN: JE00B55Q3P39, NO0010894330
Category Code: FR
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 421355
EQS News ID: 2293132
End of Announcement EQS News Service
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