Overview of FY25 Results#
Genel Energy has reported a net loss of $9 million for the fiscal year 2025 (FY25), which aligns with analyst expectations and is better than the anticipated $15 million loss. The company's earnings before interest, taxes, depreciation, and amortization (EBITDAX) reached $43 million, surpassing forecasts of $33 million. This positive performance was driven by increased revenue from oil production in Kurdistan, Iraq, where the company produced 17,500 barrels of oil per day at a realized price of $32 per barrel.
Production and Operational Status#
At the end of FY25, Genel reported net cash of $134 million, consistent with previous disclosures. However, production from the Tawke Production Sharing Contract (PSC) in Kurdistan has been temporarily halted for two weeks due to regional conflicts. Despite this setback, Genel has confirmed that it is prepared to resume production as soon as conditions improve. The company maintains its guidance for 2026, expecting production rates to return to 20,000 barrels per day from Tawke.
Future Plans and Investments#
Genel has restarted infill drilling at Tawke after a two-year pause caused by a pipeline shutdown in 2023. The first well was initiated in December 2025, and additional rigs have been added since then as part of a multi-rig investment program agreed upon in late 2025. The company plans to allocate $20 million towards pre-production assets, which includes 3D seismic acquisition and drilling two wells in Block 54 in Oman, as well as preparing for the Toosan-1 well in Somaliland, expected to commence in 2027.
Financial Obligations and Strategic Moves#
Genel is also working to resume exports of Tawke oil to tap into international pricing. Currently, the company sells oil domestically, while international oil companies in the region have begun exports under new agreements with the Iraqi Government and the Kurdistan Regional Government (KRG). Genel reported that it still has $88 million overdue from the KRG, although this amount has decreased by $40 million due to credit balances. An arbitration hearing regarding $26 million in legal fees owed to the KRG is set for April in London. Over the past year, Genel has exited three unprofitable licenses in Kurdistan and two in Africa without incurring new exit payments, while also refinancing its bond.