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Genel Energy
(LSE:GENL)
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Rating:56Neutral
Price Target:
57.00 p
▼(-18.80% Downside)
Action:Reiterated
Date:08/09/26
The score is held back primarily by weak and volatile profitability with a declining revenue base and a sharp 2025 free-cash-flow drop, despite a comparatively supported balance sheet. Technicals are constructive (price above major moving averages) but appear overbought, adding near-term risk. The latest earnings call adds moderate support via liquidity and strategic upside from the proposed Capricorn deal, but near-term operations and cash generation remain highly exposed to export/payment uncertainty, security disruptions, and deal execution risk.
Positive Factors
Manageable leverage and liquidity
Moderate leverage and a sizable equity base provide financial cushioning for a cyclical upstream business. The reported cash and net cash position also support ongoing operations and selected investment, giving Genel flexibility while production and payment conditions remain unsettled.
Negative Factors
Declining revenue and weak profitability
The sustained revenue decline and negative 2025 gross and operating profit indicate that current asset economics are not translating into stable earnings. Weak operating profitability can restrict internally funded investment and leave results highly sensitive to production, pricing, and cost conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage and liquidity
Moderate leverage and a sizable equity base provide financial cushioning for a cyclical upstream business. The reported cash and net cash position also support ongoing operations and selected investment, giving Genel flexibility while production and payment conditions remain unsettled.
Read all positive factors
Genel Energy (GENL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£159.14M
Dividend Yield10.5%
Average Volume (3M)759.53K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth-38.72%
EPS Growth52.39%
CountryUK
Employees74
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.10
Shares Outstanding279,402,860
10 Day Avg. Volume864,927
30 Day Avg. Volume759,534
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.63
Price to Sales (P/S)3.14
P/FCF Ratio23.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.04
Revenue Forecast (FY)£68.47M
Genel Energy Business Overview & Revenue Model
Company Description
London-based Genel Energy plc functions as an independent entity engaged in oil and gas exploration and production, leveraging its various subsidiaries. The company organizes its activities into two main divisions: Production and Pre-production. I...
How the Company Makes Money
Genel Energy makes money mainly by selling crude oil produced from its working interests in upstream oil fields, and by receiving its share of field revenues after costs under the applicable contractual and fiscal terms in the Kurdistan Region of ...
Genel Energy Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 24, 2027
Earnings Call Sentiment Neutral
The call presents a balanced view: strong strategic progress (proposed Capricorn acquisition, resumed Tawke drilling, robust cash balance and material exploration upside) is offset by near-term operational disruption from a 4-month production suspension, export/payment uncertainty, and elevated geopolitical and financing risks. Management emphasizes resilience, disciplined spend and optionality, but significant recovery in cash generation depends on restoration of export arrangements and successful completion of the Capricorn transaction.Positive Updates
Proposed Capricorn Acquisition Doubles Scale
Recommended all-cash offer for Capricorn announced July 2; pro forma working interest production increases to ~38,000 boe/d and 2P reserves increase to 117 million boe, effectively doubling Genel's scale and providing geographic diversification and near-term cash generation.
Negative Updates
Major Production Suspension Impacting Output
Tawke production was suspended for 4 of the 6 months in the period due to regional security issues, producing a daily average net rate of 6,600 bbl/d versus the 20,000 bbl/d expected in the WP&B — a ~67% shortfall versus plan and large lost proceeds for the half.
Read all updates
Q2-2026 Updates
Positive
Negative
Proposed Capricorn Acquisition Doubles Scale
Recommended all-cash offer for Capricorn announced July 2; pro forma working interest production increases to ~38,000 boe/d and 2P reserves increase to 117 million boe, effectively doubling Genel's scale and providing geographic diversification and near-term cash generation.
Read all positive updates
Company Guidance
Guidance: management said the half was materially affected by a 4‑month Tawke suspension (Feb 28–Jun 28), leaving average production at 6,600 bbl/d (net), only one‑third of the 20,000 bbl/d WP&B forecast (26,400 bbl/d gross half‑year vs ~80,000 bbl/d pre‑suspension); realized domestic prices averaged $31/bbl pre‑suspension and ~$37/bbl since restart. Financials: H1 free cash outflow $25m, period‑end cash $199m and net cash $108m; post‑period Genel drew $35m from its bond at ~9.7% taking debt to $127m (facility cap $200m) and July cash to $240m (+$41m); pro forma for the proposed Capricorn deal 2P reserves rise to 117 mmboe and working‑interest production to ~38,000 boe/d; other operational metrics include Block 54 work commitment of 300 km2 3D plus two wells to May 2028, and Toosan‑1 best‑estimate prospective resource 650 mmbl with six high‑grade follow‑ups, with project stage gates moving to select‑to‑define in weeks and defined‑to‑execute early next year.Genel Energy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.35M | 70.14M | 74.70M | 84.80M | 432.70M | 334.90M |
| Gross Profit | -9.77M | -3.88M | 5.00M | 29.80M | 232.50M | 116.30M |
| EBITDA | 13.16M | 37.16M | 8.30M | 43.20M | 300.00M | -106.20M |
| Net Income | -26.80M | ― | -76.90M | -61.30M | -7.30M | -308.00M |
Balance Sheet | ||||||
| Total Assets | 546.92M | 561.20M | 598.90M | 795.10M | 943.50M | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 200.03M | 224.48M | 195.00M | 363.40M | 494.60M | 313.70M |
| Total Debt | 91.37M | 90.73M | 65.80M | 244.20M | 269.50M | 278.10M |
| Total Liabilities | 210.08M | 210.08M | 241.60M | 361.20M | 415.70M | 435.30M |
| Stockholders Equity | 336.84M | 351.13M | 357.30M | 433.90M | 527.80M | 581.10M |
Cash Flow | ||||||
| Free Cash Flow | -18.03M | 9.50M | 42.10M | -43.40M | 264.20M | 115.50M |
| Operating Cash Flow | 6.76M | 28.79M | 66.90M | 55.10M | 412.40M | 228.10M |
| Investing Cash Flow | -32.03M | -23.89M | -24.80M | -98.50M | -148.20M | -112.60M |
| Financing Cash Flow | -1.50M | 24.50M | -209.90M | -87.80M | -83.30M | -156.30M |
Genel Energy Technical Analysis
Negative
70.20
Price Trends
58.19
Negative
55.14
Positive
56.87
Positive
Market Momentum
0.41
Positive
43.01
Neutral
26.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GENL, the sentiment is Negative. The current price of 70.2 is above the 20-day moving average (MA) of 65.16, above the 50-day MA of 58.19, and above the 200-day MA of 56.87, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 26.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GENL.
Genel Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | £99.71M | 3.06 | 11.43% | ― | ― | ― | |
70 Outperform | £270.09M | 19.51 | 5.30% | 66.67% | -11.74% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | £159.14M | -8.19 | -7.79% | 10.50% | -38.72% | 52.39% | |
53 Neutral | £494.12M | 5.08 | 27.37% | 2.94% | 3.33% | ― | |
53 Neutral | £201.62M | -1.87 | 177.32% | 239.14% | -8.99% | -826.33% | |
51 Neutral | £260.16M | -218.09 | -6.64% | ― | -4.86% | 95.89% |
* Energy Sector Average
GB:GENL
Genel Energy
58.80
-6.70
-10.23%
GB:CNE
Capricorn Energy PLC
382.00
174.00
83.65%
GB:ENQ
Enquest
27.20
15.69
136.40%
GB:SAVE
Savannah Petroleum
5.51
-1.49
-21.29%
GB:JSE
Jadestone Energy Inc
37.30
18.55
98.93%
GB:KIST
Kistos PLC
322.00
158.00
96.34%
Genel Energy Corporate Events
Business Operations and StrategyM&A Transactions
Genel Energy Rejects DNO Bid, Reasserts Standalone Value in Kurdistan
Positive
Sep 4, 2026
Genel Energy, a London-listed oil producer with low-cost, low-carbon operations in the Kurdistan Region of Iraq, derives substantial cash flow from its 25% interest in the Tawke licence and seeks to add resilient, cash-generative assets to its por...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Genel weighs response as rival DNO bid intensifies Capricorn takeover battle
Neutral
Sep 1, 2026
Genel Energy and its bid vehicle, Genel Energy No.9 Limited, are currently pursuing a cash offer for Capricorn Energy while also being the subject of a potential takeover by DNO Iraq AS, placing the company at the centre of a complex, multi-party ...
Business Operations and StrategyFinancial Disclosures
Genel Energy highlights restart at Tawke and Peshkabir and push for export pricing
Positive
Aug 13, 2026
Genel Energy has confirmed that drilling has resumed and production has restarted at the Tawke and Peshkabir oil fields operated by DNO in the Kurdistan Region of Iraq. Tawke came back onstream on 28 June and Peshkabir on 11 July, with output at t...
Business Operations and StrategyM&A Transactions
Genel Energy Rejects DNO’s Unsolicited Takeover Approach
Neutral
Aug 7, 2026
Genel Energy has confirmed it received an unsolicited cash proposal from Norwegian operator DNO ASA to acquire all of its shares at 69 pence per share, but the board unanimously rejected the approach, arguing that it fundamentally undervalues the ...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Genel Energy Advances Cash Bid for Capricorn with Scheme Document Release
Positive
Jul 21, 2026
Genel Energy is an independent oil and gas producer active in exploration and development projects, with a strategic focus on the Kurdistan Region of Iraq and broader regional markets. Capricorn Energy operates as a UK-based upstream energy compan...
Business Operations and StrategyPrivate Placements and Financing
Genel Energy boosts funding with oversubscribed USD 35 million bond tap
Positive
Jul 3, 2026
Genel Energy Finance 4 plc, a financing vehicle of Genel Energy, has raised USD 35 million through a tap issue of its outstanding senior unsecured bonds, increasing total bonds outstanding to USD 135 million. The bonds were priced at 104% of their...
Business Operations and StrategyPrivate Placements and Financing
Genel Energy considers tap issue on existing senior bond
Positive
Jul 2, 2026
Genel Energy has appointed Pareto Securities as manager and bookrunner for a potential tap issue of its outstanding senior unsecured bond, subject to market conditions and acceptable pricing. The planned bond increase, intended for general corpora...
DividendsM&A Transactions
Genel Energy launches US$360m cash bid for Capricorn Energy
Positive
Jul 2, 2026
Genel Energy, via its indirectly owned vehicle Genel Energy No.9 Limited, has agreed a recommended cash acquisition of Capricorn Energy, valuing each Capricorn share at a total of US$4.74, comprising a US$3.75 cash offer and an expected US$0.99 sp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.