(MENAFN- Iraq Business News) Results summary ($ million unless stated)
| 2018 | 2017 |
Production (bopd, working interest) | 33,700 | 35,200 |
Revenue | 355.1 | 228.9 |
EBITDAX1 | 304.1 | 475.5 |
Depreciation and amortisation | (136.2) | (117.4) |
Exploration credit / (expense) | 1.5 | (1.9) |
Impairment of property, plant and equipment | - | (58.2) |
Impairment of intangible assets | (424.0) | - |
Operating (loss) / profit | (254.6) | 298.0 |
Cash flow from operating activities | 299.2 | 221.0 |
Capital expenditure | 95.5 | 94.1 |
Free cash flow2 | 164.2 | 99.1 |
Cash3 | 334.3 | 162.0 |
Total debt | 300.0 | 300.0 |
Net cash / (debt)4 | 37.0 | (134.8) |
Basic EPS (¢ per share) | (101.6) | 97.1 |
Underlying EPS (¢ per share)5 | 109.0 | 65.1 |
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EBITDAX is operating profit / (loss) adjusted for the add back of depreciation and amortisation ($136.2 million), exploration credit ($1.5 million) and impairment of intangible assets ($424.0 million) Free cash flow is net cash generated from operating activities less cash outflow due to purchase of intangible assets ($39.7 million), purchase of property, plant and equipment ($65.3 million) and interest paid ($30.0 million) Cash reported at 31 December 2018 excludes $10.0 million of restricted cash Reported cash less ($334.3 million) less reported balance sheet debt ($297.3 million) EBITDAX less net gain arising from the Receivable Settlement Agreement (‘RSA') divided by the weighted average number of ordinary shares Highlights
$335 million of cash proceeds were received in 2018 (2017: $263 million) Strong cash flow generation, with free cash flow totalling $164 million in 2018 (2017: $99 million), an increase of 66% Financial strength continues to increase,with unrestricted cash balances at 28 February 2019 of $378 million, andnet cash at $81 million Addition of Sarta and Qara Dagh to the portfolio in 2019 brings further near-term production and material growth potential Increase in 1P and 2P reserves as of 31 December 2018 to 99 MMbbls (31 December 2017: 97 MMbbls) and 155 MMbbls (31 December 2017: 150 MMbbls) respectively, including Sarta As disclosed in our trading statement, the carrying value of the Miran licence has been under review. Due to the focus on the development of Bina Bawi, while Genel continues to see significant opportunity in the licence, this has resulted in an accounting impairment to the carrying value Outlook
Production guidance maintained - net production during 2019 is expected to be close to Q4 2018 levels of 36,900 bopd, an increase of c.10% year-on-year Capital expenditure guidance updated to include spend on Sarta and Qara Dagh, with net capital expenditure now forecast to be $150-170 million (from c.$115 million) Opex and G & A guidance unchanged at c.$30 million and c.$20 million respectively Genel expects to generate material free cash flow of over $100 million in 2019, inclusive of investment in Sarta and Qara Dagh Given the strong free cash flow forecast of the business, even after investment in growth opportunities, Genel is initiating a material and sustainable dividend policy The Company intends to pay a minimum dividend of $40 million per annum starting in 2020, with the intention for this to grow The dividend will be split between an interim and final dividend, to be paid one-third/two-thirds The Company is set to approach bondholders to request a temporary waiver of the dividend restriction, which limits dividends to 50% of annual net profit, in relation to accelerating the start of distribution to 2019 The Company continues to actively pursue growth and appraise opportunities to make value-accretive additions to the portfolio More details - 40 pages of them! - here.
(Sources: Genel Energy, Yahoo!)
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