28th Mar 2019 08:44
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Thursday established its first dividend policy, targeting a minimum return to shareholders of USD25 million a year.
Gulf Keystone is not paying a dividend for 2018, but in 2019 it will return USD25 million as an ordinary dividend and then top this up with a USD25 million special payout.
This comes as Gulf Keystone said 2018 revenue surged 45% to USD250.6 million, a record figure, with pretax profit multiplying to USD79.9 million from USD14.1 million, helped by a USD10.2 million release of past liabilities for its Algerian operations sale.
The Iraq-focused firm reported production figures in January, achieving 31,563 barrels of oil per day, towards the top of guidance of between 27,000 barrels and 32,000 barrels of oil per day.
Guidance for 2019 has been reiterated at between 32,000 barrels and 38,000 barrels a day, and Gulf Keystone is on track to drive this upwards to 55,000 barrels a day by the first quarter of 2020 as it works on the Shaikan field.
Chief Executive Jon Ferrier commented: "Throughout 2018, our focus was on laying the foundations for the delivery of the company's phased growth plans, which envisages a step change in production profile.
"The company is on track to achieve its near-term production target of 55,000 barrels per day in first quarter 2020, and with our partner MOL Hungarian Oil & Gas continues to work towards delivering the staged investment programme. The remarkable Shaikan reservoir presents a straightforward, low-cost onshore development opportunity with unrivalled near-term upside."
"The new dividend policy represents another major milestone for the company. It crystallises returns to shareholders while we preserve the ability to fully fund the Shaikan development and maintain a strong balance sheet; our platform for growth," Ferrier added.
Kurdistan remained "largely" stable during the period, allowing work to continue at Shaikan to meet the production target set for 2020.
In the long term, Gulf Keystone and partner MOL want Shaikan to produce 110,000 barrels of oil a day once it gets the Triassic reservoir up and running, with that target yet to be exploited.
Shares were 3.7% higher on Thursday morning at a price of 269.64 pence each.
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