Our strategic ambition is underpinned by our core strengths – a robust and cash-generative asset portfolio, technical and commercial expertise, and our ability to leverage regional relationships and manage risk in complex areas. With a strong Board and a management team with proven track records of executing strategies and delivering value, this provides a significant opportunity.
As we deliver on our strategy, we place robust corporate governance, excellence in HSE, and a keen awareness of our place in the community at the heart of everything that we do. We believe that the way we conduct ourselves with host governments and local people is crucial to our success, and we strive to deliver in a manner that protects the health and safety of our employees, minimises adverse environmental impact, and provides benefits to local communities.
Our success at value creation is judged as first-quartile performance in total shareholder returns amongst our peer group.
The key components of our strategy are below.
Generating material free cash flow from our KRI oil assets, systematically progressing our world-class gas resources.
Oil production from the Tawke, Peshkabir and Taq Taq fields generates significant free cash flow, and we will continue to maximise this through efficient reservoir management and disciplined capital allocation. Sarta, Qara Dagh, Bina Bawi and Miran provide material upside opportunities, with an attractive mix of near-term production and long-term growth potential. As we continue our investment in the KRI as a committed partner, our asset potential and strong relationships with key regional stakeholders gives us a solid basis for increased value creation.
Disciplined capital allocation, maximising financial flexibility to execute our strategy.
A highly cash-generative portfolio, low leverage and disciplined and value driven capital allocation provides us with a robust financial base that is highly resilient to changes in the macro-economic environment. It also allows us the optionality to benefit from growth opportunities and make value-accretive additions to our portfolio. At the appropriate time, this paves the way to returning capital to shareholders.
A highly cash-generative portfolio, low leverage and disciplined and value driven capital allocation provides us with a robust financial base that is highly resilient to changes in the macro-economic environment. It also allows us the optionality to benefit from growth opportunities and make valueaccretive additions to our portfolio. As we have now moved into a net cash position, with free cash flow more than matching our investment in growth, it paves the way to returning capital to shareholders.
Developing a rich funnel of new opportunities, with prudent allocation of capital to the highest return projects.
Genel systematically seeks opportunities to leverage our strengths and capabilities, utilising our management team members’ track record in successful M&A execution. We aim to add assets that build on the strengths of the current portfolio, prioritising areas with low to moderate political risk while retaining a focus on significant cash generation. Sarta and Qara Dagh fulfilled these criteria in 2018.We are governed by clear investment criteria and our commitment to value creative capital allocation, focused on assets that provide the highest returns and enhance the quality of our existing portfolio.