Genel’s shares slide as trading update misses analyst forecasts

Suzie Neuwirth
NAT ROTHSCHILD and Tony Hayward’s bumper bonus payout slipped further out of reach yesterday, after Genel Energy’s trading update caused shares to slide over four per cent.

The billionaire financier, former BP chief and other founders of the Kurdistan-focused oil explorer will receive around £100m in total, if shares close higher than £12.50 for 20 trading days out of 30.

Rothschild would be in line for around £50m.

Shares hit a record high of £11.13 last week, raising hopes of an imminent payout, but yesterday’s update disappointed investors.

2014 production guidance was set at 60,000 to 70,000 barrels of oil per day, falling short of some analysts’ expectations, while revenue guidance of $500m (£305m) to $600m also missed forecasts.

Genel was given a boost last week when the Kurdistan regional government announced plans to begin piping oil to Turkey, despite not receiving approval from the Iraqi central government.

Chief executive Hayward said 2013 had been a “transformational year for Genel”.