FINANCIAL PERFORMANCE AND GUIDANCE
- $191 million of total cash proceeds were received in the nine months ending September 2017, of which $52 million was received in Q3
- Post-period, payments have been received for July sales from Tawke and Taq Taq and the first Tawke override payment under the Receivable Settlement Agreement ('RSA') for August 2017, totalling $22.6 million net to Genel
- Positive free cash flow generation continued in the third quarter, leading to a further reduction in net debt. Unrestricted cash balances at 30 September 2017 stood at $268 million ($246 million at 30 June 2017). IFRS net debt at 30 September 2017 stood at $138 million ($158 million at 30 June 2017), a reduction of 13% in the quarter and 43% on the end 2016 figure of $241 million
- The RSA, effective 1 August 2017, resulted in the Company cancelling and waiving its rights to outstanding receivables, principally in return for enhanced future cash flows from the Tawke PSC
- The August 2017 Genel Tawke override invoice was submitted in September, with $6.0 million being received on 16 October
- The September 2017 Genel Tawke override invoice, totalling $6.4 million, was submitted in October with payment due in November
- The elimination of Tawke CBP in the RSA is expected to positively impact August and September 2017 net proceeds for Tawke current sales by $5 million, with the corresponding cash flow impact due in Q4 2017
- Capital expenditure for Q3 2017 totalled $27 million, with the majority of spend on the development programmes at Taq Taq and Tawke. Capex for the nine months ending 30 September 2017 totalled $68 million, including spend on the KRI gas assets and Somaliland seismic acquisition
- 2017 guidance remains unchanged:
- Capex:
- Tawke and Taq Taq net to Genel $60-75 million
- KRI gas business capex of $10-15 million
- Somaliland 2D seismic capex budget expected at c.$15 million
- Opex: $30-35 million
- G&A: income statement $20-25 million and cash cost $15-20 million
- Capex:
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