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

2019

target

2018

target

2017

target

2016

target

2015

target

Definition

2P reserves are proved plus probable reserves.

Performance

The majority of the decline in 2P reserves relates to the Tawke field. The decline in reserves does not impact short-term production expectations, with the majority of the decline being later field life barrels.

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.

0BNboe

2019

target

2018

target

2017

target

2016

target

2015

target

Definition

Net reserves and resources include 3P reserves, 2C contingent resources and prospective resources.

Performance

Net reserves and resources grew by 0.2 BNboe in 2019, boosted by the increased stake in our Somaliland acreage.

Relevance to strategy

Prospective resources are those quantities of hydrocarbons estimated to be potentially recoverable from undiscovered accumulations by application of future development projects, and have the potential to drive long-term growth.

 

0bopd

2019

target

2018

target

2017

target

2016

target

2015

target

Definition

Production is measured in barrels of oil produced per day.

Performance

2019 net production averaged 36,250 bopd, an increase of 8% on the prior year. This was driven by growth at Peshkabir, where production doubled year-on-year and more than offset declines at the Tawke field. Production at Taq Taq was down slightly on the prior year, although the success of the TT-34 well added to production and meant that the field exited 2019 with production of c.13,750 bopd.

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, with production maximised over the life of the field.

$0Million

2019

target

2018

target

2017

target

2016

target

2015

target

Definition

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

Performance

In line with Genel’s strategy, the Company generated sufficient free cash flow from its highly cash-generative producing assets to invest in growth assets and pay a material dividend. Free cash flow of $99 million, pre-dividend payment of $27 million, was achieved even as capital expenditure increased to $158 million in 2019, up $63 million on the previous year, and despite the non-receipt of $54 million in payments from the KRG relating to export sales in August and September 2019.

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

2019

target

2018

target

2017

target

2016

target

2015

target

Definition

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

Performance

There were no lost time incidents in 2019, and it is now over four years and more than 11 million man hours worked since the last incident. Work continues across our assets to ensure that processes and procedures remain of the highest possible standard. In 2019 there were 66 HSE management site visits conducted, 105 emergency response drills too place, and 320 safety observations were submitted, illustrating the focus on safety from the top down.

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

2019

target

2018

target

2017

target

2016

target

2015

target

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 incidents of losses of primary containment in 2019, repeating the performance of 2018.

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.