Genel Energy reported an operating loss in the first half of 2020 as lower oil prices and the COVID-19 pandemic took its toll.
Genel reported a US$340mln operating loss, while it generated US$88.4mln of revenue for the six months compared to US$194.3mln in the first half of last year.
Net production averaged 32,100 barrels of oil per day (bopd), versus 37,400 bopd in the comparative period of 2019.
Genel said in a statement that it had received US$110 million from the Kurdistan Regional Government (KRG) in H1 2020. $121 million still remains outstanding in relation to oil sales from November 2019 to February 2020, with discussions continuing with the KRG over settlement arrangements.
Bill Higgs, Chief Executive of Genel, said: “Genel’s robust business model, which is designed to provide resilience in a challenging environment, has demonstrated its value as the Company negotiates the headwinds facing the sector in 2020. Our low-cost production and the capital flexibility within our development programme have enabled us to preserve the strength of our balance sheet even while investing in growth. Given the lower oil price and overdue payments, the fact that we still expect to end 2020 in a net cash position – even after dividend distributions and making the investment to bring Sarta to production this year – is a testament to our resilience.”
Genel said that a capex of $45 million is expected in H2, with 50 per cent is going to be spent on moving Sarta to production in Q4, where work has continued despite the challenges resulting from COVID-19