18th Mar 2026 17:16
(Alliance News) - Genel Energy PLC on Wednesday reported a narrowed annual loss in 2025, and hailed positive restructuring moves and an improved net cash position.
Shares in the exploration and oil production company with production assets in the Kurdistan Region of Iraq, and exploration assets in Oman and Somaliland, closed up 2.4% at 56.00 pence in London on Wednesday. Over the past 12 months, shares have fallen by 10%.
Genel's pretax loss narrowed 80% in 2025 to USD12.7 million, from USD62.1 million in 2024.
Notably, the company reported a gain of USD9.1 million from arbitration cost reversal in 2025, compared to a cost of USD36.0 million in 2024.
The company's revenue fell 8.0% to USD68.7 million from USD74.7 million.
The company noted increased production costs and pre-production capital expenditure, the latter related to its Oman and Somaliland assets.
Genel Energy added that Genel Energy Miran Bina Bawi Ltd, a subsidiary, owes the Kurdistan regional government around USD26 million relating to an arbitration legal fees charge, an appeal against which will be held in April in London.
The average Brent oil price per barrel for the company was USD69 in 2025, down 15% from USD81/bbl in 2024.
Meanwhile, working interest average production was 17,520 barrels of oil per day in 2025, down 11% from 19,650 in 2024.
Chief Executive Officer Paul Weir said: "We have established an ever more resilient business with significant upside potential, and we are now well-placed to deliver value to our shareholders and build a business that generates resilient, diversified and predictable cash flows that will support the resumption of distributions to shareholders."
Genel's operations have been disrupted following conflict in the Middle East, both recently and in 2025. It has production and drilling operations in Tawke in the Kurdistan region in Iraq, and these remain temporarily shut down. In July, drone attacks stopped production, with production levels recovering to 80,000 barrels of oil per day by November.
Genel does not yet have a dividend programme, but three share-based payment plans under which awards are outstanding. It continues to progress towards being able to support one.
Weir added: "Our key focus remains acquiring new assets to diversify our cash generation, and participating in exports from Kurdistan, whilst ensuring that we maintain the right balance between risk and reward."
By Abena Oppon, Alliance News reporter
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