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Full Year Results

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30 March 2017

Genel Energy plc

Audited results for the year ended 31 December 2016

Genel Energy plc (‘Genel’ or ‘the Company’) announces its audited results for the year ended 31 December 2016.

Results summary ($ million unless stated)

2016 2015
Production (bopd, working interest) 53,300 84,900
Revenue 190.7 343.9
EBITDAX1 130.7 279.4
  Depreciation (128.9) (172.5)
Impairment of exploration assets (779.0) (144.1)
  Exploration expense (36.1) (28.9)
Impairment of property, plant and equipment (218.3) (1,038.0)
Impairment of receivables (191.3) -
Operating loss (1,222.9) (1,104.1)
Cash flow from operating activities 131.0 71.2
Capital expenditure2 61.2 157.2
Free cash flow3 59.1 (179.2)
Cash4 407.0 455.3
Net debt5 241.2 238.8
KRG receivable 253.5 422.9
EPS (¢ per share) (448.60) (417.30)

  1. EBITDAX is earnings before interest, tax, depreciation, amortisation, exploration expense and impairment which is operating loss adjusted for the add back of depreciation ($128.9 million), exploration costs written off ($36.1 million) and any impairments ($1,188.6 million)

  2. Capital expenditure is additions of intangible assets and additions of property, plant and equipment (oil and gas assets only)

  3. Free cash flow is net cash generated from operating activities less cash outflow due to purchase of intangible assets and purchase of property, plant and equipment (oil and gas assets only)

  4. Cash reported at 31 December 2016 excludes $19.5 million of restricted cash

  5. Net debt is reported debt less cash

Highlights

  • The KRG’s February 2016 commitment to pay contractor export payments and address outstanding receivables led to a significant increase in cash proceeds during 2016

  • $207 million cash proceeds were received in 2016 (2015: $148 million), with Genel generating $59 million in free cash flow (2015: $179 million outflow)

  • $67 million in cash proceeds received in 2017 to date, representing full settlement of invoices for 2016 production

  • 2016 net production averaged 53,300 bopd (2015: 84,900), at the lower end of revised guidance

  • Strong liquidity position at the end of 2016, with unrestricted cash balances of $407 million ($455 million at end-2015)

Outlook

  • Signature of amended PSCs and Gas Lifting Agreement in February 2017, with a focus now on concluding negotiations with potential partners

  • Continued engagement with the KRG over accelerating the recovery of outstanding receivables

  • Tawke 2017 production expected to average around year to date production levels of 111,000 bopd, in line with the Operator’s guidance

  • Peshkabir-2 Cretaceous discovery in early 2017 – accelerated appraisal and early production planning

  • 2017 capex guidance for Taq Taq and Tawke reiterated at $50-75 million. KRI gas business and Africa exploration expenditure also reiterated at c.$50 million

  • Bond buy-back announced today (see separate press release)

Please refer to the attached pdf to view the full announcement.

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