Genel Energy


Primary ticker: LSE:GENL
Stage of development: Exploration, Production
Primary minerals: Oil
Project to promote: –
Project location: Kurdistan Region of Iraq, Morocco, Somaliland

Genel Energy is a socially responsible oil producer listed on the main market of the London Stock Exchange. The Company is one of the largest London-listed independent hydrocarbon producers, with an asset portfolio that positions us well for a future of fewer and better natural resources projects. Genel has low-cost and low-carbon production from the Kurdistan Region of Iraq. Genel continues to seek opportunities to add new resilient and cash-generative assets to its portfolio, with the goal of progressing its dividend in the long-term.

Cash: USD$495M
Debt: USD$275M

Major shareholders:
Bilgin Grup Dogalgaz – 23%
Isbank – 19%
Daax – 17%
NR Holdings – 8%
Stichting Value Partners – 7%
Management Ownership – 1%

Management Profile

Andrew Benbow, Head of Communications
Andrew has been at Genel for 11 years, having worked in investor relations and corporate communications since 2004.

What is your rationale for taking part in 121 Mining Investment?

Genel has generated material free cash flow in recent years, and returned over $200 million to investors since 2019. The company has recently been impacted by the closure of the Iraq-Turkey pipeline, with its reopening a potentially major share price catalyst. Genel also continues to seek acquisitions outside Kurdistan, diversifying cash flows. We are happy to talk to all potential shareholders and bondholders.

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
The reopening of the Iraq-Turkey pipeline, and restart of payments, returning Genel to material cash generation.

6 Months:
An M&A deal that diversifies cash flows, creating a more resilient, cash generative company

12 Months:
Continue building our track record as a material and sustainable dividend payer, focused on creating value for shareholders through investor returns

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

At present it is the shutdown of the Iraq-Turkey pipeline, which has temporarily suspended our route to market

What do you think makes your company such a compelling investment?

The political instability at the time of writing has impacted our share price, but a resolution promises stability that the Kurdistan oil industry has not previously known. We are a prudent business, focused on balance sheet management, and the payment of sustainable dividends – with over half of our market cap having been paid in dividends in the last four years.

What are the top 3 key investor takeaways?

Genel has a clear direction of travel, material free cash flow in recent years, and a robust cash position to fund acquisitive growth.