Genel sticks to dividend growth plans as KRG payments resume

LONDON (Reuters) - London-listed oil and gas producer Genel GENL.L said on Thursday it expected free cash flow of around $100 million (76.68 million pounds) in 2020 would underpin planned growth in dividends, despite delayed payments from authorities in Iraqi Kurdistan.

Genel, which started paying dividends last year distributing $42 million, said it expected all outstanding amounts from the Kurdistan Regional Government (KRG) owed to it under production contracts would be paid in the first quarter.

It added it was “confident” payments would be paid regularly after delays in recent months.

“(Investment) will see production diversify and increase as (the) Sarta (field) comes onstream in the summer, with enough remaining to underpin an increase in our already significant dividend,” Genel said in a trading update.

It sees its net production this year at around 35,400 barrels per day, broadly on the same level as 2019.

Reporting by Shadia Nasralla; editing by Jason Neely