Stock Markets March 18, 2026

Genel Energy Delivers Expected FY25 Results, Keeps 2026 Production Target Intact

Company reports modest FY25 loss, stronger-than-expected EBITDAX and confirms 2026 guidance despite temporary Tawke halt

By Avery Klein
Genel Energy Delivers Expected FY25 Results, Keeps 2026 Production Target Intact

Genel Energy posted a FY25 net loss of $9 million, in line with analyst expectations and ahead of the $15 million consensus loss. The company registered EBITDAX of $43 million, exceeding forecasts, and reported year-end net cash of $134 million. Production from the Tawke PSC in Kurdistan was paused for two weeks amid regional hostilities, but the company has preserved readiness to resume output and left its 2026 guidance unchanged.

Key Points

  • Genel posted a FY25 net loss of $9 million and reported EBITDAX of $43 million, beating consensus forecasts.
  • Production from the Tawke PSC reached 17,500 bpd in FY25 at a realized price of $32 per barrel; a two-week halt occurred due to regional hostilities but operations remain ready to resume.
  • The company restarted infill drilling at Tawke, approved a multi-rig programme in Q4 2025, and plans $20 million in pre-production spending across Oman and Somaliland targets.

Genel Energy reported a net loss of $9 million for fiscal year 2025, matching analyst expectations and outperforming a consensus estimate for a $15 million loss. The company said its FY25 EBITDAX reached $43 million, surpassing the $33 million figure forecast by consensus, supported by revenue from production in onshore Kurdistan, Iraq.

Genel produced 17,500 barrels of oil per day in FY25 from the Tawke production sharing contract (PSC) in Kurdistan, selling that oil at a realized price of $32 per barrel. The company additionally confirmed year-end net cash of $134 million, an amount previously disclosed in its January update.


Operational interruption and readiness

Production at the Tawke PSC was temporarily suspended for a two-week period due to regional hostilities. Genel said it has maintained operational readiness to bring production back online when security conditions allow. Despite this temporary halt, the company has left its 2026 guidance unchanged from the January trading statement, which assumed net production rates returning to 20,000 barrels per day from Tawke.

Restarting development activity

Genel has resumed infill drilling at Tawke following a two-year pause that resulted from the 2023 export pipeline shutdown. The company spudded the first well in December 2025 and has added additional drilling rigs since then. The joint venture partners approved a multi-rig investment programme in the fourth quarter of 2025.

The company expects to invest $20 million in pre-production assets. That programme includes 3D seismic acquisition and drilling two wells on Block 54 in Oman, and advancing towards the Toosan-1 well in Somaliland, which the company says is likely to be drilled in 2027.

Genel is working to resume exports of Tawke oil to access international pricing. It noted that international oil companies in the region began exports at the end of 2025 under new arrangements with the Iraqi Government and the Kurdistan Regional Government, while Genel currently continues to sell its production domestically.


Receivables, legal matters and portfolio moves

The company reported that $88 million remains overdue from the Kurdistan Regional Government (KRG), an exposure that has been reduced by $40 million through credit balances. An arbitration appeal hearing tied to $26 million in legal fees owed to the KRG in the Miran Bina Bawi case is scheduled for April in London.

Over the past year, Genel said it exited three unprofitable licenses in Kurdistan and two in Africa without incurring new exit payments or retaining potential liability exposures. The company also refinanced its bond during the period.

Genel's FY25 results therefore combine stronger-than-expected operating cashflow metrics with continued operational challenges tied to regional security and outstanding receivables, while the company moves ahead with a measured drilling and pre-production investment plan.

Risks

  • Operational disruption: regional hostilities led to a two-week suspension of Tawke production, highlighting security-related production risk that affects the upstream oil sector.
  • Receivables and legal exposure: $88 million remains overdue from the KRG and a $26 million arbitration appeal over legal fees is scheduled, posing financial and timing uncertainties for cash flow.
  • Export constraints: Genel currently sells domestically while resumption of exports is pending; delays in accessing international markets could affect realized pricing and revenue for the company and upstream market participants.

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