Genel Energy PLC: Audited results for the year ended 31 December 2025

18 March 2026

Genel Energy plc

Audited results for the year ended 31 December 2025

Genel Energy plc (‘Genel’ or ‘the Company’) announces its audited results for the year ended 31 December 2025.

Paul Weir, Chief Executive of Genel, said:

“We have established an ever more resilient business with significant upside potential, and we are now well-placed to deliver value to our shareholders and build a business that generates resilient, diversified and predictable cash flows that will support the resumption of distributions to shareholders.

In 2025 we made good progress on a range of fronts: our business continued to generate double digit USD millions of production business free cash flow, and we reported bottom line positive free cash flow to improve our net cash position, with excellent progress being made on reorganising the business. We successfully exited three unprofitable licences in Kurdistan and two in Africa, without incurring any new exit payments or retaining potential liability exposures. We also refinanced our bond, de-risking funding for delivery on future strategic priorities. We continue to maintain a strong focus on rigorous capital allocation.

Since regional hostilities began two weeks ago, production has been temporarily halted from Tawke. A state of readiness has been maintained to allow a production restart as soon as it is safe to do so. At this moment, our guidance for 2026 remains unchanged from our January trading statement. Our key focus remains acquiring new assets to diversify our cash generation, and participating in exports from Kurdistan, whilst ensuring that we maintain the right balance between risk and reward. Operationally, our organic portfolio, where there remains significant unvalued potential, is well-positioned to deliver progress this year, with planned drilling at Tawke targeting additions to both production and reserves, a clear plan for de-risking Block 54 in Oman and tangible progress towards drilling the Toosan-1 well in Somaliland.”

Results summary ($ million unless stated)

1. EBITDAX is operating loss adjusted for the add back of depreciation and amortisation, exploration expense, net write-off/impairment of oil and gas assets, net ECL/reversal of ECL receivables and other non-cash items
2. Free cash flow is reconciled on page 8
3. Reported cash less IFRS debt is reconciled on page 8

Highlights

• Following the U.S.-Israeli air war on Iran that started on 28 February 2026, production and drilling operations on the Tawke licence were temporarily shut down. The Company continues to monitor developments closely to assess when it can safely and securely resume operations
• Tawke generated predictable production with consistent domestic sales demand, resulting in working interest production of 17,520 bopd (2024: 19,650 bopd), with all production sold domestically
• Domestic sales price averaged $32/bbl for the year (2024: $35/bbl), with all cash due for domestic sales received before the end of the year
• Production was temporarily stopped in July following the drone attacks on a number of Kurdistan oil operations, including Tawke, with gross production back to around 80,000 bopd by November
• Production business netback of $10 million (2024: $5 million) and free cash flow of $4 million (2024: $20 million). Closing net cash of $134 million (2024: $131 million)
  • Cash of $224 million (2024: $196 million)
  • Bond debt of $92 million due in 2030 (2024: $66 million)
• In late September, agreements were signed between the Federal Government of Iraq (‘FGI’), the Kurdistan Regional Government (the ‘KRG’) and a group of international oil companies to resume exports of crude oil produced in Kurdistan through the Iraq-Türkiye Pipeline. Genel chose not to participate at that point and continues to keep exports under review, with participating parties reporting that the process is working in line with expectation
• Balances with the KRG
  • $88 million (under KBT pricing and excluding interest) remains overdue from the KRG, although this has been reduced by about $40 million credit balances. We continue to work towards a plan for payment or settlement of amounts owed, and appropriate adjustment for price and interest
  • Not included in the $40 million, Genel Energy Miran Bina Bawi Limited, a subsidiary of the group, owes the KRG around $26 million relating to an arbitration legal fees charge, an appeal against which will be held in April in London
• Exits from the Sarta, Qara Dagh and Taq Taq licences finalised with no residual liability exposure. We have also exited the Lagzira licence in Morocco and the Odewayne licence in Somaliland, again with no residual liability exposure
• A socially responsible contributor to the global energy mix: 
  • Portfolio carbon intensity under 14.4 kgCO2e/bbl, remaining below the industry average target
  • Climate disclosure: maintained a CDP Climate rating of B for a fourth consecutive year
  • The Genel20 Scholarship programme has entered its fourth year, where Genel is providing university tuition funding for undergraduates from the Kurdistan Region of Iraq 
  • In Somaliland, Genel continued to engage with local communities through its social investments focused on healthcare in rural areas and supporting local education

OUTLOOK

• With Tawke domestic market sales expected to be consistent, and with production expected to benefit from new drilling in FY 2026, we expect production business netback to more than cover Genel’s costs, which include net interest payable
• Incremental to the production business, the Company expects to invest up to $20 million on its pre-production assets:
  • On Block 54 in Oman, in line with the 3-year initial exploration phase work plan, which includes 3D seismic acquisition and drilling two wells, as we announced at the time of entering the licence in the first half of 2025
  • SL10B13 in Somaliland, as we make progress towards drilling the Toosan-1 prospect in 2027
• The Company continues to progress towards building a business with a strong balance sheet that delivers resilient, reliable, repeatable and diversified cash flows that support a dividend programme. The Company’s objectives for the year on the path to building that business include:
  • acquisition of new assets to diversify our reserves and resources and cash generation
  • restart of exports of Tawke oil to access international pricing
  • pursuit of net amounts owed by the KRG
  • safe execution of activity on Block 54
  • further progress towards drilling Toosan-1

Enquiries:

Genel will host a live presentation via the Investor Meet Company platform on Thursday 26 March at 10.00 a.m. GMT. The presentation is open to all investors. Questions can be submitted pre-event via your Investor Meet Company dashboard or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Genel Energy PLC via:

https://www.investormeetcompany.com/genel-energy-plc/register-investor. Investors who already follow Genel on the platform will automatically be invited.

This announcement includes inside information.

Disclaimer

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company’s control or within the Company’s control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward looking statements.

CEO STATEMENT

We entered 2025 having established the necessary building blocks to transform the value delivery prospects of this business. The three key pillars at the centre of our strategy are:

• Maintaining the resilience of our business, by being as efficient as possible and by carefully managing risk
• Getting the most value from our existing portfolio, primarily by accessing international exports for our production and by investing wisely in our current assets, and finally
• Diversifying our cash generation, by acquiring new assets

The resilience of our business has been improved. Our cash generation from the Tawke PSC has been predictable and resilient. There has been successful optimisation of spend and strong operational performance, resulting in production levels being maintained despite no new wells adding to production in the year and very low annual spend. Towards the end of the year, drilling recommenced for the first time since the pipeline shut in March 2023 and we are excited about the potential for additions to both production and reserves that can be unlocked by an appropriate work programme over the next year.

Towards the end of 2025, a number of Kurdistan IOCs commenced exports under a new interim arrangement with the Federal Government of Iraq (‘FGI’) and the Kurdistan Regional Government (‘KRG’). We see this as significant progress and, although we continue to sell domestically, we keep our position regarding exporting oil under review. In the meantime, the cash we generate immediately from local sales helps maintain our balance sheet strength and fund the resumption of drilling activity on the licence.

We have successfully continued our process to exit legacy assets and financial obligations that would not contribute to delivering value for our shareholders. On Taq Taq, Sarta and Qara Dagh, we have now concluded our exit from these licences with no incremental cost. We have also exited the Lagzira licence in Morocco and the Odewayne licence in Somaliland. These exits have removed non-productive spend and we retain no liability exposure going forward.

From a balance sheet point of view, we issued a new 5-year bond in April, replacing the previous bond that was due to mature in October 2025. We now have a production business that generates double digit free cash flow from domestic sales and a significant cash balance that de-risks funding for fulfilment of our strategic objectives.

With regard to acquiring new assets, we have been very active this year originating, developing, and bidding on opportunities. We will continue to remain active and disciplined to ensure that we invest our cash only on assets that offer the appropriate resilience and production potential, and at a level that will be value accretive.

The Company continues to progress towards building a business that maintains a strong balance sheet, and delivers resilient, reliable, repeatable, and diversified cash flows that support a dividend programme.

The Company’s objectives for the year on the path to building that business include:

• acquisition of new assets to add reserves and diversify our cash generation
• restart of exports of Tawke oil to access international pricing
• pursuit of net amounts owed by the KRG
• safe execution of activity on Block 54
• further progress towards drilling Toosan-1

OPERATING REVIEW

Overview of production and reserves

Working interest average production of 17,520 bopd was lower than last year (2024: 19,650 bopd) as a result of the interruption from the drone strikes in July, with all production sold into the domestic market at average of $32/bbl (2024: $35/bbl).

Reserves and resources development

Genel's key performance indicator of proven plus probable (2P) net working interest reserves totalled 64 MMbbls (31 December 2024: 82 MMbbls) at the end of 2025. 

Disposals resulted in a reduction in 2P reserves for the divestment of Taq Taq licence in Kurdistan Region of Iraq (‘KRI’) and in prospective resources for the exit from the Lagzira licence in Morocco.  Acquisitions saw a small addition to prospective resources from Block 54 in Oman.

PRODUCING ASSETS

Tawke PSC (25% working interest)

The Tawke PSC, comprising both the Tawke field discovered in 2006, and the Peshkabir field discovered in 2013, remain the cornerstone of the Company’s cash generation. In December 2025, the combined production from both fields reached 500 MMbbls, a significant milestone marking more than two decades of safe and sustainable production operations. With gross 2P remaining reserves of 254 MMbbls and additional development opportunities under evaluation to add more, the Tawke PSC remains a world-class asset.

In Q4 2025, the Joint Venture partnership agreed plans to restart investment drilling in the PSC following a 2-year hiatus since the 2023 export pipeline shutdown. The first well was spudded in December 2025, with additional rigs added since then and the campaign now well underway. This return to investment via a multi-rig programme underscores our confidence in the resource potential of the asset.