Genel Trading Update: "Operations Secure"


  • 2014 capital expenditure guidance is increased to $650 million from $550-600 million as a result of higher spending on the Sidi Moussa-1 well offshore Morocco
  • 2015 capital expenditure guidance is set at $300-350 million
  • Cash balances at 30 September 2014 stood at c.$660 million, with net cash of c.$170 million
  • Genel is transitioning from a business predominantly based on cash receipts in advance for domestic oil revenues to an export business where receivables are the norm. The net receivable with the KRG stood at c.$150 million as at 30 September 2014. With increasing KRG pipeline exports expected to deliver budget equilibrium in early 2015, Genel is confident that payments in respect of contractual entitlements will normalise

Tony Hayward, chief executive of Genel Energy, said:

"The third quarter of the year has been a watershed for the KRI oil industry. The region remains safe and secure, boosted by support from the international community. Liftings of KRI crude from Ceyhan have become regular and sales predictable, with money flowing back to the KRG. Exports will continue to rise and the KRG's firm commitment to ensure contractors receive full entitlements will see a normalised payment process for this production early in 2015."

(Sources: Genel Energy, Yahoo!)

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