In the past year, the company’s net cash holding increased by a factor of five.
Genel Energy PLC (LSE: GENL, OTC: GEGYY) experienced a five-fold increase in net cash, reaching US$228 million, in the past year as higher crude prices influenced the Kurdistan-based oil firm.
Production averaged 30,150 barrels per day for the year ending in 2022 (compared to 31,710 in 2021), but revenue rose 29% to US$433 million due to a 42% surge in crude prices. Underlying profits rose to US$362 million (2021: US$275 million), while Genel reported a net loss of US$7.1 million (2021: US$308 million) due to impairment charges and write-offs of US$350 million, primarily related to the Sarta field and Qara Dagh project.
Genel expects daily production to range between 27,000-29,000 barrels and capital expenditures to be between US$100 million and US$125 million for the current year.
In the full-year results statement, Paul Weir, Genel’s CEO, stated that the company’s production business generated record cash flow in 2022, resulting in a net cash balance exceeding US$200 million at year-end. With significant financial resources, the company now has a unique opportunity to cautiously deploy these resources to acquire new assets and expand and diversify its production business.
The dividend for the year remained constant at 18 US cents, with a final payment of 12 US cents.
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