Oil production company sees $22m revenue increase for 2019

A London oil company has announced a $22m increase in revenue for 2019.

Genel Energy, which operates internationally and has headquarters in Victoria, reported that its revenue rose from $355.1m in 2018 to $377.2m in 2019.

It also saw an increase in oil production, going up 8 per cent to 36,250 barrels of oil per day.

However, the company will be keeping its dividends at 10¢ per share until “external conditions” improve.

Bill Higgs, chief executive of Genel, commented: “The industry is currently facing headwinds that challenge companies to demonstrate their resilience and flexibility.

“Genel has a business model and strategy designed to shelter us from such extreme circumstances, with low-cost oil production, robust finances, and flexibility in our expenditure allowing us to pay a material dividend while retaining sufficient liquidity to capitalise on opportunities and take advantage of future upside.

“Our strong balance sheet with limited capital commitments allows us to invest in the most value accretive areas and pay this dividend at the prevailing oil price, even in a scenario with a temporary delay in payments from the KRG.

“Given the resilience of the business, our strong performance in 2019, and our view of future prospects, we have retained our dividend of 10¢ per share, deferring an increase until external conditions improve.

“This is a yield of over 20 per cent on our current share price, offering investors the compelling combination of a significant yield from a sustainable dividend and funded growth.

“Our portfolio positions us well for a future of fewer and better natural resources projects. It is low-cost and low-carbon - the right assets, in the right location, with the right footprint.”