GENEL ENERGY PLC - Full Year Results

Gunnell Energy PLC (GENL:LSE) delivered a comprehensive investor update alongside its FY2025 financial results, highlighting resilient company performance despite geopolitical disruption in the Middle East, which temporarily suspended production. The business reported average production of ~17,500 barrels per day, EBITDA of $43m, and a strong balance sheet with $224m cash and $134m net cash, underlining robust cash generation and low-cost operations (~$4 per barrel). Management reiterated its disciplined growth strategy focused on maintaining financial strength, maximising cash flow from its core asset base, and diversifying revenue streams through value-accretive acquisitions and organic projects. The company’s order book equivalent in upstream production remains supported by significant reserves and a high-margin asset portfolio, even under domestic pricing conditions. Strategic priorities include restarting production swiftly when conditions allow, progressing appraisal and drilling programmes in Oman and Somaliland, and leveraging a strong capital position to pursue M&A opportunities that enhance long-term shareholder value. With a clear pathway to improved margins, increased revenue potential through export pricing, and a focus on sustainable free cash flow, Gunnell Energy continues to position itself for future growth and the reinstatement of shareholder returns, including dividends.