Genel Energy PLC: Unaudited results for the period ended 30 June 2026

4 August 2026

Genel Energy plc - Unaudited results for the period ended 30 June 2026

Paul Weir, Chief Executive of Genel, said:

“We remain firmly focused on delivering our clearly stated strategic objectives and in this period, we have demonstrated our ability to deliver on those objectives. In the first half of the year, the proposed recommended all-cash offer for Capricorn Energy has been a key priority and represents a significant step in our long-standing strategy to diversify geographically, in this case Egypt, a jurisdiction that we have targeted for some time. The acquisition will substantially broaden and diversify our cash generation, while maintaining a very strong balance sheet, underpinned by significant cash resources and low leverage.

In Kurdistan, we continue to work closely with DNO towards normalising production and restoring exports. We will continue to calibrate activity levels based on above-ground conditions, the financial environment and well performance, each of which is subject to ongoing review.

In Oman, we are progressing plans to drill two commitment wells on Block 54 in 2027, while in Somaliland we continue to advance preparations for the potentially transformational Toosan-1 exploration well.

We see much positive potential in the coming six to twelve months.”

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 6
3. Reported cash less debt reported under IFRS (page 6)

Summary

• On 2 July 2026, the boards of directors of Capricorn Energy plc (‘Capricorn Energy’), Genel Energy No.9 Limited and the Company announced that they had reached agreement on the terms and conditions of a recommended cash offer for the entire issued and to be issued ordinary share capital of Capricorn Energy, with the vote of Capricorn Energy’s shareholders to approve the scheme of arrangement expected to take place on 18 August 2026. Genel Energy No.9 Limited has received irrevocable undertakings approximately representing, in aggregate, 39.3% of Capricorn Energy’s issued share capital. Full details can be found on the Company’s website
• Gross average production of 26,400 bopd in H1 2026 (H1 2025: 78,400 bopd), significantly impacted by the suspension of production as a precautionary measure when hostilities between the United States, Israel and Iran commenced at the end of February
• Gross average production up to the date of suspension was 79,900 bopd compared to December 2025 gross average production of 80,700 bopd
• At Tawke, Drilling and Well intervention work resumed in April, and this was followed by a resumption of Production Operations towards the end of the period 
• All production in the period was sold domestically
  • Working interest average production of 6,600 bopd (H1 2025: 19,600 bopd)
  • H1 2026 sales price average was $31/bbl (H1 2025: $33/bbl), with all cash due for domestic sales received in advance of sale
• Production business netback of negative $24 million (H1 2025: $6 million positive) and free cash outflow of $25 million (H1 2025: $5 million inflow), both impacted by suspended production and associated cash flows
• Net cash of $108 million at 30 June 2026 (31 December 2025: $134 million), comprised of:
  • Cash of $199 million (31 December 2025: $224 million)
  • Bond debt of $92 million due in 2030 (31 December 2025: $92 million)
  • After the reporting date, $35 million of new bond debt was issued at price of 104% of nominal amount in July, implying a yield of 9.7%. This issuance brings total debt to $127 million, with the bond facility having capacity for up to $200 million
• Cash of $240 million at 31 July 2026
• Balances with the Kurdistan Regional Government (‘KRG’)
  • $88 million (under KBT pricing and excluding interest) remains overdue from the KRG, although this has been reduced by about $40 million of 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 above, Genel Energy Miran Bina Bawi Limited, a subsidiary of the group, owes the KRG around $26 million relating to an arbitration costs award. The appeal against this award, held in April, was unsuccessful and there will be no further legal challenge
• A socially responsible contributor to the global energy mix: 
  • As part of the Genel20 Scholarship, Genel commenced the second phase of the Genel Scholars programme which, in addition to academic support, is now providing one-to-one mentorship from a Genel professional to students enrolled under the scholarship
  • In Somaliland, Genel continued to engage with local communities through an emergency water distribution project and bolstering education facilities in the region

Outlook

• 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
• Proposed acquisition of Capricorn Energy

• Subject to satisfaction of regulatory conditions, we look forward to combining the businesses, with a long-term funding plan in place

• Tawke resilient cash generation

• Free cash flow from domestic sales at current production and price levels is expected to more than cover point-forward organisational costs
• Working with stakeholders to support the restart of exports and access to international pricing, more than doubling asset free cash flow
• Pursuit of circa net $50 million owed by the Kurdistan Regional Government

• Pre-production investment and derisking resources

• Incremental to the production business, the Company will invest up to $15 million over the year on its pre-production assets
• On Block 54 in Oman, in line with the 3-year initial exploration phase work plan, we continue to work towards acquiring 3D seismic and drilling two wells
• SL10B13 in Somaliland, we continue to make steady progress towards drilling the Toosan-1 prospect in 2027

• Balance sheet strength

• We have maintained a very strong cash position through the period of suspended production
• Since the restart of production, we are cash generative and retain access to further available liquidity

Enquiries:

Genel will host a live presentation on the Investor Meet Company platform on Tuesday 4 August at 14:30 BST. The presentation is open to all existing and potential shareholders. Questions can be submitted 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 

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. While 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. The information contained herein has not been audited and may be subject to further review.

CEO STATEMENT

Genel’s strategy is to build a business with resilient diversified cash flows that delivers sustainable value to shareholders. The Genel Board and Genel management have been resolute in their belief that this can best be achieved through strategic acquisitions which add substantial high-quality producing assets to its existing portfolio.

Egypt was identified as one of Genel’s focus countries to expand its footprint and Genel has tracked and evaluated numerous opportunities in the country. The proposed all-cash acquisition of Capricorn announced at the start of July is a landmark transaction for the Company – a move that delivers our strategic intent, reshapes our company’s growth trajectory, diversifies our portfolio of oil and gas fields and begins our role as a partner in Egypt’s energy future. It brings high‑quality assets, material reserves, and a talented local workforce that together create immediate scale and opportunity for further onward investment and growth.

By applying our technical and operational capabilities to these assets, we will work with the operator to accelerate production optimisation, replace reserves, and capture significant near‑term cash flow while preserving optionality for future development. Equally important, this transaction commences the start of a relationship with, and commitment to, Egypt, its hydrocarbon industry and its communities. We will work closely with government partners and host communities to ensure safe, environmentally responsible operations and to maximise local content and job creation, whilst maximising value creation for all stakeholders.

Regarding the existing business, cash generation for the first half of the year was impacted by the temporary suspension of operations as a precautionary measure given the military action that commenced at the end of February. The security situation remains uncertain, with recent reports of more drone attacks and threats in the Kurdistan Region of Iraq. Production was restarted around the end of the period, and we continue to monitor the situation carefully together with the Operator and other stakeholders.

We have taken careful action to protect our balance sheet and at the half year our reported cash was $199 million. Since the end of the period, we tapped our existing bond and raised a further $35 million at an implied yield of 9.7%, with the bond facility having capacity for further issuance up to $200 million.

The Tawke PSC, operated by DNO, delivered exceptional performance up to the suspension of operations in February, with production consistently around 80,000 bopd and indications that the two fields can deliver more with the appropriate investment plan. We continue to work with all stakeholders to achieve the appropriate conditions to support safe operations and optimal investment. Operating costs of around $4/bbl and significant reserves mean that this asset will continue to provide significant cash generation well into the future.

Up to the point of suspension, at average realised domestic sales prices of around $31/bbl, our 25% interest in the licence generated significant free cash flow that more than covered our spend.

With regards to exports and accessing international pricing, we are encouraged by the progress we have seen with the process implemented with other IOCs since the second half of last year. We continue to work with DNO towards the export of Tawke production and full entitlement payment at international prices. This, together with unlocking appropriate investment activity, has the potential to more than double the revenue generation of this world class licence.

In Oman on Block 54, we remain focused and are making good progress on delivering the two commitment wells in 2027, and we continue to work closely with the operator OQEP.

In Somaliland we continue to work towards the right operational and commercial conditions to invest, with our partner OPIC (Taiwan), in the delivery of an exploration well on the highly prospective and potentially transformational SL10B13 licence.

OPERATING REVIEW

PRODUCING ASSETS

Tawke PSC (Tawke and Peshkabir fields, 25% working interest,

The year started with strong production across the Tawke licence, with two newly drilled wells brought onstream early in the period at Tawke field, and another spudded at Peshkabir field as the investment programme resumed following a near 3-year hiatus.

Following the start of the regional conflict on 28 February, and specific threats made against oil and gas assets in the KRI, the operator halted all production and drilling activity as a precautionary safety measure.

Development operations resumed on 9 April, with well intervention work and drilling recommencing, while production operations restarted on 28 June.

Realised price for domestic sales in the period averaged $31/bbl until production suspension compared to $32/bbl for last year. Since the restart of production, realised price has been in the mid to upper $30s/bbl.

PRE-PRODUCTION ASSETS

Oman Block 54 (40% working interest)

Having completed initial activity on the block at the turn of the year, work is now ongoing towards the acquisition of new 3D seismic data in H2 2026 along with the re-processing of existing 3D seismic data.

This data will inform the determination of an optimal location for drilling of the first MWO exploration well on the licence in H1 2027.

Somaliland - SL10B13 (51% working interest)

Work towards drilling of the highly prospective Toosan-1 exploration well next year is ongoing. 

FINANCIAL RESULTS