(MENAFN- ProactiveInvestors) Tony Hayward has told investors he expects regular payments for crude exports from Kurdistan through 2015.
’s () chief executive also revealed that the company has stepped up domestic oil sales in the first quarter.
“Given that this production is amongst the lowest-cost in the world and domestic realisations strong this provides a significant interim source of revenue until predictable export payments are in place” Hayward said in today’s results statement.
Genel significantly increased production and revenue in 2014 though ongoing uncertainty over the timing of oil export payments remains a key focal point for investors.
A new 1-year co-operative deal was reached between the Kurdish authorities and Baghdad in December. And the breakthrough deal was subsequently passed into law last month enabling the financial implementation of the interim oil deal.
Investors in the meantime want to see that the apparent regulatory breakthrough translates into regular cash payments to oil companies.
Genel in the twelve months to December 31 saw net production increase to 69400 barrels of oil per day from 44000 bopd in the previous year.
Revenue increased to US$519.7mln from US$347.9mln while earnings (excluding exploration) increased to US$410.6mln from US$274.8mln.
Capital expenditure for the year totalled US$676.9mln including US$343mln spent in Africa where the company pursued a multi-well exploration programme.
Cashflow reduced to US$116mln from US$311mln and the group made a pre-tax loss of US$312mln versus a US$186.5mln profit in 2013.
Genel ended the year with a US$489.1mln cash balance.
“At a time of a depressed oil price we remain focused on the importance of a robust balance sheet” Hayward said.
“Genel's financial flexibility is a significant strength and allows us to target spending on growth at our producing assets in the KRI as we wait for the economic situation in Iraq to improve sufficiently to facilitate regular export payments.”
In 2015 Genel expects to produce between 90000 and 100000 bopd and based on a Brent crude price of US$50 per barrel the company forecasts full year revenue at US$350mln to US$400mln.
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