Genel Energy Plc · LSE:GENL
Genel Energy — FY2023 Earnings Presentation
15 slides from Genel Energy's earnings presentation, Mar 26, 2024
Slide 1: Full-year results 2023
Slide 2: Where are we now
Where are we now Reshaped and resilient RESILIENT PLATFORM KURDISTAN EXPORT RESTART ACQUIRE NEW PRODUCTION ASSETS ARBITRATION Doubles $/bbI Over $350 million of Maintenance of strong Defending contractual balance sheet cash rights Increases volumes Maximisation of local ve Diversify income Expect re
Slide 3: Focus on strategic goals
Focus on strategic goals Delivering a leaner business focused on cash flow and value creation Supporting the ment of INVES’ NN Focus on ESG and sustainability LED BY A RESILIENT BUSINESS MODEL (Aiowrat Energy Profitability and optimisation of spend * Reduced capex by $50 million * Stopped investment
Slide 4: Material cash position
Material cash position Strong balance sheet provides long-term resilience and opportunity Total cash of $363 million CASH, DEBT, AT YEAR-END 2023 ($ million) IFRS debt of $243 million Annual net interest cost ~$5 million, maintaining low-cost optionality (Aiowrat Energy Fulk-year results 2023 - 26 M
Slide 5: Regular local sales volumes and process well proven
Regular local sales volumes and process well proven Consistency of volumes established since November GROSS TAWKE PRODUCTION Monthly production above 60,000 bo i (kbopd) November, above 80,000 bopd since Establishing local sales Price $32-34/bbl, cash paid upfront in USD Q3 2023 94 2023 | 2024 opera
Slide 6: Free cash flow from local sales covering all costs
Free cash flow from local sales covering all costs Net cash expected to be maintained well over $100 million MONTHLY SPEND vs FREE CASH FLOW YTD cash out flow more than covered by Tawke ee FCF 7 Spend Covered at local sales price of $32-34/bbl at current production volume A Monthly total spend to re
Slide 7: Tawke PSC - high quality cash-generative asset
Tawke PSC - high quality cash-generative asset Material reserves and long-life production potential TAWKE 2P WORKING INTEREST RESERVES (MMbbIs) Strong YE2023 reserves replacement ° . P43 | 78.6 Currently delivering over 80,000 bopd minimal capital inves All past costs recovered, so cost recovery mea
Slide 8: Update on Iraq-Turkiye Pipeline
Update on Irag-Turkiye Pipeline Timing of reopening remains uncertain lraq-Turkiye pipeline suspended since March 2023 Discussions between FGI and KRG reportedly ongoing Ongoing media commentary regarding opening Full-year results 2023 - 26 March 2024
Slide 9: Exports can materially increase free cash flow
Exports can materially increase free cash flow Exports bring access to higher pricing and volumes, potential receivables recovery MONTHLY SPEND vs TAWKE FCF (S million) Production levels below export levels Receivables 18 e than double Tawke free ca flow generation Exports ra Recovery of $107 millio
Slide 10: Miran and Bina Bawi arbitration
Miran and Bina Bawi arbitration Outcome expected by end of 2024 Genel spent in excess of $1.4 billion, and significant senior management and Board time, on 2009-2021 acquiring and attempting to develop and monetise the Miran and Bina Bawi PSCs Genel receives notices of intention to terminate PSCs fr
Slide 11: Miran and Bina Bawi arbitration
Miran and Bina Bawi arbitration Our views on merits of our case unchanged since KRG commenced arbitration in 2021 10 December 2021 RNS: ‘Genel made every effort to engage with the KRG on the development of the Bina Bawi and Miran fields and submitted numerous development proposals to the KRG for its
Slide 12: Somaliland - Toosan-1 exploration well
Somaliland - Toosan-1 exploration well Opportunity for material resource addition Frontier exploration but with the ability to rapidly monetise in success case ( 4A) Genel Energy Full-year results 2023 - 26 March 2024 "
Slide 13: M&A focused on delivering new cash flows
M&A focused on delivering new cash flows Funding available to acquire assets that will support establishment of a sustainable dividend programme Production or close to production ee ( A) sone Energy Full-year results 2023 - 26 March 2024
Slide 14: Focus for first half of 2024
Focus for first half of 2024 Optimise existing business, work on delivering catalysts Optimisation of cash Resumption of Value accretive generation from exports and recovery diversification of our domestic sales of receivables production oe ee ne BALANCE SHEET GENERATION Seeder ( 4) Genel Energy a C
Slide 15: For further information please contact investor relations
For further information please contact investor relations Andrew Benbow, Head of Communications andrew.benbow@genelenergy.com