Genel Energy Halts Dividend Due to Continued Closure of Iraq-Turkey Pipeline
Published: Aug. 2, 2023 at 2:58 a.m. ET
By Christian Moess Laursen
Genel Energy on Wednesday suspended its dividend as a result of cash-flow hit from the closure of the Iraq-Turkey export pipeline.
The London-listed oil company produced 13,440 barrels of oil a day in the half-year compared with 30,420 B/D in the first half of 2022 due to the prolonged closure of the Iraq-Turkey…
By Christian Moess Laursen
Genel Energy on Wednesday suspended its dividend as a result of cash-flow hit from the closure of the Iraq-Turkey export pipeline.
The London-listed oil company produced 13,440 barrels of oil a day in the half-year compared with 30,420 B/D in the first half of 2022 due to the prolonged closure of the Iraq-Turkey export pipeline.
Genel Energy said it has suspended its dividend program as a result of a the loss of cash flow and lack of visibility on both the timing of pipeline exports resuming and the re-establishment of a reliable record of payments.
“The closure of the Iraq-Turkey pipeline on March 25 has resulted in minimal sales and no payments from the KRG since that date. This has materially impacted both our current and expected cash flows, with the current period seeing a free cash out flow,” Chief Executive Paul Weir said.
Revenue dropped to $51.3 million from $245.6 million a year prior, due to the lack of payments, with $110 million in payments from the government of Kurdistan now overdue
Genel Energy cut its full-year capital-expenditure guidance to around $70 million from $100 million-$125 million.
Write to Christian Moess Laursen at [email protected]
