By John Lee.
Shares in Genel Energy fell 11 percent to 91.5p on Thursday after the company cut its revenue projection for the year.
Meanwhile, Numis Securities maintained a ‘buy’ recommendation for the shares, with a target of 210p.
Murat Özgül (pictured), Chief Executive of Genel, said:
“The receipt of nine consecutive monthly payments from the KRG, from the resumption of payments in September 2015 to the end of June 2016, has delivered $193 million in cash proceeds to Genel, and the move to payments based on contractual entitlements has given greater clarity and confidence in ongoing receipts.
“The consistency of payments has allowed us to progress our 2016 work programme, which is already having an impact on production levels following the declines seen earlier in the year.
“Against a difficult backdrop, the Kurdistan Regional Government has moved forward impressively with its economic reforms, which are designed to reduce costs and increase revenues. As the economy moves from stabilisation to budget surplus, the KRG has stated its intention to increase contractor payments and accelerate the recovery of outstanding receivables.
“Contractors have been appointed to fulfil near-term goals regarding the KRI gas project, and we expect further progress in the second half of the year.”
(Sources: Genel Energy, Yahoo!, Fiscal Standard)