Genel swings to a loss amid an oil price slump

Genel Energy is led by former BP boss Tony Hayward
GENEL Energy yesterday revealed its revenues jumped by 49 per cent year on year in 2014, but it swung to a pre-tax loss of $312.8m (£204.7m) after depreciation charges and write offs from exploration wells.

Loss per share reached 112.97 cents, from earnings per share of 66.24 cents in 2013, when the firm achieved pre-tax profit of $186.5m.

The oil and exploration firm is headed by former BP boss Tony Hayward, who described 2014 as a year of “significant growth” for Genel.

He flagged the completion of the pipeline between Turkey and the Kurdistan Region of Iraq (KRI) as being one large factor, which boosted production by 58 per cent to hit 69,000 barrels of oil equivalent per day (BOEPD).

Hayward also said he believes production will keep growing this year and is forecasted to jump a further 40 per cent.

The company also said its revenue and production guidance for 2015 stayed at between 90-100,000 BOEPD, and $350m to $400m at a Brent crudeprice of $50 per barrel.

Its revenue hit $519.7m in 2014, while cashflow from operating activities was reported as $116m, down significantly from $311.3 in 2013.

Hayward said: “At a time of a depressed oil price we remain focused on the importance of a robust balance sheet. “

The company also said it has been “distressing” to see the humanitarian crisis in the KRI, noting the impact of more than a million refugees arriving into the region.

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