5th Aug 2025 18:17
(Alliance News) - Genel Energy PLC on Tuesday said its pretax loss narrowed in the first half of the year despite a fall in revenue as costs fell.
The London-based oil & gas exploration and development company said its pretax loss narrowed to USD3.5 million in the six months to the end of June from USD17.6 million a year ago.
Revenue was down 4.8% to USD35.8 million from USD37.6 million, though general and administrative costs plunged 36% to USD10.3 million from USD16.2 million. The bond interest expense dropped 65% to USD4.0 million from USD11.5 million.
Production increased 0.5% to 19,600 barrels of oil per day from 19,510 bopd a year ago.
Genel said the Tawke site generated "predictable production" with "consistent domestic sales demand".
"The Tawke [production sharing contract] has delivered robust production into consistent domestic market demand in the first half of 2025. Taken together with the cost reductions undertaken in 2024, the core business has generated underlying free cash flow," said Chief Executive Paul Weir.
"We continue to work with peers and governments towards the resumption of Kurdistan oil exports, and are encouraged by the increased level of engagement between interested parties in recent weeks. We note that detailed discussions are taking place in relation to several key issues which could pave the way for an agreement that is acceptable to all parties."
Last month, explosive-laden drones hit three oil fields in Iraq's northern autonomous Kurdistan region, a day after a similar attack shut operations at a US-run field.
DNO ASA, the operator of the Tawke field, in which Genel has a stake, reported three explosions, "one involving a small storage tank at Tawke and the other involving surface processing equipment at Peshkabir". DNO added: "The damage assessment is underway and the company expects to restart production once the assessment is completed."
Following the impact of the drone attack on production at the Tawke site, Genel said the operator is "developing a plan to expedite the resumption of optimal production in a safe and efficient way, with work ongoing to determine and test the best plan for production ramp up".
Genel said it expects the impact on cash of damage caused and loss production to be mitigated by "judicious cost control and insurance cover".
Shares in Genel Energy closed up 2.7% at 61.00 pence in London on Tuesday.
By Michael Hennessey, Alliance News reporter
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