Our key performance indicators

Genel measures its performance in line with our strategic objectives. Key Performance Indicators are the primary measures used to track our progress against our strategic aim of being a world-class creator of shareholder value through growing low-cost production in a socially responsible way.

0MMbbls

2020

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Definition

2P reserves are proved plus probable reserves.

Performance

Gross upward technical revisions of 47 MMbbls at the Tawke PSC, relating to both the Tawke and Peshkabir fields, more than offset the 40 MMbbls of production at the licence, and  contributed to our reserves remaining materially unchanged. The appraisal campaign getting underway at Sarta in 2021 has the potential to convert material 2C resources into reserves.

Relevance to strategy

Our strategy is to enhance the value of our existing 2P reserves through active reservoir management and cost-effective development. The Company also looks to replace 2P reserves through a combination of maturing contingent resource to commerciality, exploration for new sources of hydrocarbons and M&A activity.

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2020

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Definition

The combined total distribution of the final and interim dividends announced in the calendar year.

Performance

The final dividend of 10¢ per share, and interim dividend of 5¢ per share, were maintained in 2020. Our ability to retain this at such a significant level despite the external upheaval is a testament to the resilience of our business model. Due to Genel’s robust financial position and confidence in future prospects, the Board is recommending a final dividend of 10¢ per share.

Relevance to strategy

Genel’s strategy aims to increase low-cost production, invest in growth, and retain sufficient liquidity to pay a material and sustainable dividend. Dividend distributions are therefore a signifier of the success of Genel’s overall strategy.

 

0bopd

2020

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Definition

Production is measured in barrels of oil produced per day.

Performance

2020 net production averaged just short of 32,000 bopd, a decrease of 12% on 2019 as a result of a reduction in drilling at
both Tawke and Taq Taq, as spending was reduced due to the collapse in oil price and uncertainty caused by COVID-19. An active drilling programme at Tawke in 2021 will help reduce the decline rate at the field, and Genel expects a year-on-year production increase as volumes at Sarta more than outweigh
declines at our mature fields.

Relevance to strategy

Production from our fields provides Genel’s revenue generation, and is a key measure of our operational performance. Our oil production in the KRI is managed to ensure long-term value creation and maximise cash generation, with production maximised over the life of the field.

$0Million

2020

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2019

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Definition

Cash flow from generated from operating activities, minus capital expenditure.

Performance

Free cash flow (pre dividend payment) was impacted by a lower oil price, with Brent averaging $42/bbl in 2020, compared to $64/bbl in 2019. The fall in the oil price, amongst other factors, led to the non-payment by the KRG of $121 million relating to oil sales from November 2019 to February 2020, and the suspension of override payments with a cashflow impact totalling $38 million in 2020. Considering these outstanding funds, the performance indicates our resilience and low-costs and, in line with Genel’s strategy, helped us retain the financial strength to invest in growth assets and pay a material dividend.

Relevance to strategy

Production from operating activities forms Genel’s revenue generation. Net cash illustrates the success of monetisation of these activities, reflecting both money received and the minimisation of operating costs.

0Frequency

2020

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2016

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Definition

Lost time incident frequency measures the number of lost time incidents per millions work hours.

Performance

There were no lost time incidents in 2020, and it is now over five years and more than 13 million hours worked since the last incident. As Genel increases its operated activities, work continues to ensure that processes and procedures remain of the highest possible standard. Robust training and emergency preparedness planning has been implemented across the workforce. 67 HSE management site visits conducted, 77 emergency response drills took place, and 626 safety observations were submitted, illustrating the continuous focus on safety despite COVID-19 restrictions.

Relevance to strategy

The safety of our workforce remains of paramount importance. Genel is committed to running safe and reliable operations across our portfolio, aiming at zero fatalities and no lost time incidents.

0Frequency

2020

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Definition

Loss of primary containment records any unplanned or uncontrolled release of material from a piece of equipment (such as a pipe, vessel, or tank) used for containment of potentially harmful or hazardous substances and products.

Performance

There were zero tier one loss of primary containment incidents in 2020, and it is now three years since our last incident.

Relevance to strategy

Part of our commitment to being a sustainable business is for the impact on the environment around our operations to be minimised. Asset integrity is a major priority for Genel and we plan and execute the operations of our business and our engagement of subcontractors so as to minimise risk and mitigate potential impact.