Genel: Return cash or M&A?

Analysts are split on the best way forward for the Kurdistan-focused producer, in a dilemma many upstream firms may also face

AIM-listed independent Genel Energy saw its revenues jump to $245.6mn in the first half of 2022, up by more than 60pc compared with $151.5mn in the same period last year, with Ebitda also soaring from $123.1mn to $212.3mn. But, with production remaining stubbornly flat, the firm must now decide what to do with the free cash flow (FCF) being thrown off by the current high oil prices. And analysts are split as to whether the firm should concentrate on returning the FCF to shareholders through an increased dividend or use it to fund inorganic growth in the M&A market. There is also the suggestion that a Genel management team in transition has not itself decided on the better course. Genel’s