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Genel Energy (GB:GENL)
LSE:GENL

Genel Energy (GENL) AI Stock Analysis

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Genel Energy

(LSE:GENL)

Rating:55Neutral
Price Target:
54.00p
▲(5.88%Upside)
Genel Energy's overall score reflects a company with significant challenges in profitability and weak technical momentum. However, strategic expansions, improved cash flows, and manageable debt levels provide some positive outlook. Corporate events suggest potential for growth and improved financial stability, albeit with underlying risks.

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

Genel Energy Business Overview & Revenue Model

Company DescriptionGenel Energy (GENL) is an independent oil and gas exploration and production company headquartered in London, United Kingdom. The company primarily operates in the Kurdistan Region of Iraq (KRI), where it holds a portfolio of high-potential oil and gas assets. Genel Energy focuses on the exploration, development, and production of oil and gas resources, aiming to deliver long-term value through sustainable and responsible operations.
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 is challenged by declining revenue and profitability, with a negative P/E ratio indicating financial stress. However, a stable balance sheet with manageable debt levels and improved cash flow provides some 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
74.70M84.80M432.70M334.90M159.70M
Gross Profit
5.00M19.60M232.50M116.30M-26.30M
EBIT
-52.40M-19.20M211.90M97.60M-62.00M
EBITDA
8.30M43.20M300.00M-106.20M-212.10M
Net Income Common Stockholders
-76.90M-61.30M-7.30M-308.00M-416.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
195.00M363.40M494.60M313.70M354.50M
Total Assets
598.90M795.10M943.50M1.02B1.55B
Total Debt
65.10M244.20M269.50M278.10M358.10M
Net Debt
-129.90M-118.60M-225.10M-35.60M3.60M
Total Liabilities
241.60M361.20M415.70M435.30M620.80M
Stockholders Equity
357.30M433.90M527.80M581.10M929.80M
Cash FlowFree Cash Flow
42.10M-43.40M264.20M115.50M19.70M
Operating Cash Flow
66.90M55.10M412.40M228.10M129.40M
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
Negative
Last Price51.00
Price Trends
50DMA
55.06
Negative
100DMA
60.06
Negative
200DMA
67.38
Negative
Market Momentum
MACD
-0.90
Positive
RSI
39.85
Neutral
STOCH
17.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GENL, the sentiment is Negative. The current price of 51 is below the 20-day moving average (MA) of 53.08, below the 50-day MA of 55.06, and below the 200-day MA of 67.38, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 17.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GENL.

Genel Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBTLW
61
Neutral
£245.49M5.73
-11.70%
58
Neutral
£124.30M-80.82%-5.92%-91.89%
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
GBCNE
56
Neutral
£159.63M17.20-3.25%-28.38%90.60%
55
Neutral
$142.35M-15.72%-14.44%-22.34%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GENL
Genel Energy
51.00
-49.00
-49.00%
GB:TLW
Tullow Oil
18.00
-18.16
-50.22%
GB:CNE
Capricorn Energy PLC
234.00
62.50
36.44%
GB:KIST
Kistos PLC
166.00
15.00
9.93%

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.

Legal Proceedings
Genel Energy Ordered to Pay $26.87 Million in Arbitration Costs
Negative
Apr 4, 2025

Genel Energy announced that its subsidiary, Genel Energy Miran Bina Bawi Limited, has been ordered by the Tribunal to pay $26.87 million in recoverable costs to the Kurdistan Regional Government following an arbitration claim. This amount is less than the $36 million originally claimed by the KRG, indicating a partial financial relief for Genel.

Executive/Board ChangesBusiness Operations and Strategy
Genel Energy Grants Performance Share Awards to Key Executives
Positive
Apr 2, 2025

Genel Energy announced the granting of nil-cost options under its 2021 Performance Share Plan to key managerial personnel, including CEO Paul Weir, CFO Luke Clements, and Technical Director Mike Adams. These awards are part of a three-year performance period aimed at aligning management incentives with company performance. Additionally, Paul Weir deferred a portion of his 2024 cash bonus into company shares under the Deferred Bonus Plan, further demonstrating a commitment to the company’s long-term success. These transactions highlight the company’s strategy to retain and motivate its leadership team, potentially impacting its operational efficiency and market positioning.

Private Placements and Financing
Genel Energy Exercises Bond Call Option
Neutral
Apr 1, 2025

Genel Energy has exercised a bond call option, aligning with its recent placement of a new $100 million senior unsecured bond maturing in April 2030. The company will call the outstanding bond amount of $66 million with a maturity date in October 2025, at a price equal to 100% of the nominal amount, with settlement set for 14 April 2025.

Regulatory Filings and Compliance
Genel Energy Discloses 2024 Government Payments
Positive
Mar 27, 2025

Genel Energy has released its report on payments made to governments for the year 2024, in compliance with UK regulations for the extractive sector. The company disclosed a total payment of $265,000 to the Government of Somaliland, covering licence fees, training, capacity building, and social development obligations under its petroleum sharing agreements. This report underscores Genel’s commitment to transparency and regulatory compliance, potentially enhancing its reputation and stakeholder trust in the regions where it operates.

Shareholder MeetingsRegulatory Filings and Compliance
Genel Energy Releases 2024 Annual Report and AGM Notice
Positive
Mar 27, 2025

Genel Energy has announced the posting of its Annual Report for the year ended 31 December 2024, along with the notice for its 2025 Annual General Meeting (AGM). The AGM is scheduled for 8 May 2025. The documents have been made available to shareholders and submitted to the National Storage Mechanism, and can also be accessed on the company’s website. This announcement signifies the company’s adherence to regulatory requirements and transparency in its operations, which may impact stakeholder confidence positively.

Private Placements and Financing
Genel Energy Secures $100 Million Through Successful Bond Placement
Positive
Mar 26, 2025

Genel Energy has successfully completed a private placement of USD 100 million in new five-year senior unsecured bonds with an 11% annual coupon rate. The bond issue, which attracted strong international investor demand, will be listed on the Nordic ABM and Frankfurt Open Market. The proceeds will be used to refinance existing bonds and for general corporate purposes, enhancing the company’s financial flexibility.

Business Operations and StrategyFinancial Disclosures
Genel Energy Reports Strong Cash Generation and Strategic Expansion
Positive
Mar 18, 2025

Genel Energy reported a shift from cash outflow in 2023 to cash generation in 2024, driven by increased production and strategic cost management. The company has reduced its debt significantly and is focusing on maintaining a strong balance sheet while expanding its asset base in Oman and other regions. Despite challenges in the Kurdistan Region of Iraq, including unresolved payments from the Kurdistan Regional Government, Genel is committed to ensuring contract compliance and exploring new growth opportunities. The company’s strategic diversification into Oman marks a significant step in its growth journey, aiming to enhance cash generation and business resilience.

Private Placements and Financing
Genel Energy Plans New Bond Issue to Refinance Existing Debt
Neutral
Mar 18, 2025

Genel Energy has announced plans to hold fixed income investor meetings with the help of Pareto Securities AS as Manager and Bookrunner. The company aims to issue a new senior unsecured bond with a five-year tenor, subject to market conditions, to refinance existing bonds maturing in October 2025 and for general corporate purposes.

Business Operations and Strategy
Genel Energy Expands into Oman with New Exploration Agreement
Positive
Mar 10, 2025

Genel Energy has entered into an Exploration and Production Sharing Agreement in Oman, acquiring a 40% interest in Block 54, partnering with OQ Exploration & Production SAOG. This strategic move is part of Genel’s plan to diversify geographically and establish a significant presence in Oman, leveraging the country’s stable regulatory environment and promising oil and gas sector to expand its resource base and cash generation capabilities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.