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Genel Energy (GB:GENL)
:GENL

Genel Energy (GENL) AI Stock Analysis

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Genel Energy

(OTC:GENL)

Rating:60Neutral
Price Target:
69.00p
▲(4.70%Upside)
Genel Energy's strong cash flow and technical momentum are offset by ongoing profitability challenges and a negative P/E ratio. Strategic expansion and positive operational performance are promising, but legal costs and financial liabilities remain concerns.

Genel Energy (GENL) vs. iShares MSCI United Kingdom ETF (EWC)

Genel Energy Business Overview & Revenue Model

Company DescriptionGenel Energy plc, through its subsidiaries, operates as an independent oil and gas exploration and production company. It operates through two segments, Production and Pre-production. The Production segment holds a 25% working interest in the Tawke PSC; 44% working interest in the Taq Taq PSC; and 30% working interest in the Sarta PSC located in the Kurdistan Region of Iraq (KRI). The Pre-Production segment holds a 40% working interest Qara Dagh PSC located in KRI; 50% working interest in Odewayne and 51% working interest in SL10B13 located in Somaliland; and 75% working interest in Lagzira in Morocco. As of December 31, 2021, the company had 63 millions of barrels (MMbbls) of proven net working interest reserves, and 104 MMbbls of proven plus probable net working interest reserves. Genel Energy plc is headquartered in London, the United Kingdom.
How the Company Makes MoneyGenel Energy generates revenue primarily through the sale of crude oil produced from its assets in the Kurdistan Region of Iraq. The company holds interests in various production sharing contracts, with key assets including the Tawke, Taq Taq, and Peshkabir oil fields. Revenue streams are largely driven by the volume of oil production and the prevailing market prices for crude oil. Additionally, Genel Energy benefits from strategic partnerships with other operators in the region, which help optimize production and operational efficiency. The company's earnings are also influenced by factors such as geopolitical developments, changes in oil prices, and local regulatory conditions.

Genel Energy Financial Statement Overview

Summary
Genel Energy faces challenges in revenue and profitability, reflected by negative EBIT and net income, and declining gross profit margins. However, the company maintains a strong cash position with improved free cash flow and manageable debt levels, offering some financial stability.
Income Statement
45
Neutral
The company has struggled with profitability, as evidenced by negative EBIT and net income in recent years. Gross profit margin has declined significantly, and revenue dropped sharply from 2022 to 2024. However, there was a slight recovery in EBITDA margin from 2023 to 2024.
Balance Sheet
60
Neutral
The balance sheet shows a stable equity position with a decreasing total debt level, contributing to a manageable debt-to-equity ratio. However, a reduction in stockholders' equity over the years raises concerns about financial resilience.
Cash Flow
70
Positive
Despite operational challenges, the company has consistently generated positive operating cash flow. The free cash flow improved significantly in 2024 compared to a negative figure in 2023, indicating better cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue74.70M84.80M432.70M334.90M159.70M
Gross Profit5.00M19.60M232.50M116.30M-26.30M
EBITDA8.30M43.20M300.00M-106.20M-212.10M
Net Income-76.90M-61.30M-7.30M-308.00M-416.90M
Balance Sheet
Total Assets598.90M795.10M943.50M1.02B1.55B
Cash, Cash Equivalents and Short-Term Investments195.00M363.40M494.60M313.70M354.50M
Total Debt65.10M244.20M269.50M278.10M358.10M
Total Liabilities241.60M361.20M415.70M435.30M620.80M
Stockholders Equity357.30M433.90M527.80M581.10M929.80M
Cash Flow
Free Cash Flow42.10M-43.40M264.20M115.50M19.70M
Operating Cash Flow66.90M55.10M412.40M228.10M129.40M
Investing Cash Flow-24.80M-98.50M-148.20M-112.60M-106.70M
Financing Cash Flow-209.90M-87.80M-83.30M-156.30M-58.90M

Genel Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price65.90
Price Trends
50DMA
54.72
Positive
100DMA
58.58
Positive
200DMA
65.35
Positive
Market Momentum
MACD
2.60
Negative
RSI
65.80
Neutral
STOCH
92.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GENL, the sentiment is Positive. The current price of 65.9 is above the 20-day moving average (MA) of 56.67, above the 50-day MA of 54.72, and above the 200-day MA of 65.35, indicating a bullish trend. The MACD of 2.60 indicates Negative momentum. The RSI at 65.80 is Neutral, neither overbought nor oversold. The STOCH value of 92.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GENL.

Genel Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBTLW
71
Outperform
£226.63M4.94
-11.70%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
60
Neutral
£181.45M-15.72%-14.44%-22.34%
GBCNE
54
Neutral
£156.83M17.20-3.25%-28.38%90.60%
54
Neutral
£139.21M-80.82%-5.92%-91.89%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GENL
Genel Energy
65.90
-27.00
-29.06%
GB:TLW
Tullow Oil
15.50
-16.14
-51.01%
GB:CNE
Capricorn Energy PLC
224.50
42.50
23.35%
GB:KIST
Kistos PLC
168.00
37.00
28.24%

Genel Energy Corporate Events

Shareholder Meetings
Genel Energy AGM Results: All Resolutions Passed Amid Shareholder Dissent
Neutral
May 8, 2025

Genel Energy PLC announced the results of its Annual General Meeting held on 8 May 2025, where all resolutions were passed by shareholders. Despite the approval, a significant number of votes were cast against several resolutions, prompting the Board to engage with shareholders to understand their concerns.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Genel Energy Reports Strong Q1 2025 Performance and Strategic Expansion
Positive
May 8, 2025

Genel Energy reported a robust operational performance in Q1 2025, with significant production from the Tawke and Peshkabir fields in Kurdistan, generating substantial cash flow. The company is expanding its operations into Oman with the acquisition of Block 54, and is diversifying its asset base while managing financial liabilities by issuing a new $100 million bond. Genel has exited the Sarta and Qara Dagh licenses, reducing its liabilities, and is focusing on strategic objectives despite macroeconomic uncertainties.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025