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(Sharecast News) - Gulf Keystone Petroleum's share price jumped on Tuesday after the Iraq-focused operator unveiled a resilient financial performance over the first half of 2026, growing profits despite production being affected by "significant regional disruption".
Gross average production over the first six months of the year totalled just 14,600 barrels of oil per day, less than a third of the 44,100bopd the year before, due to the precautionary shut-in between 28 February and 23 June as a result of geopolitical conflict across the Middle East.
Gross production had restarted on 24 June, with output ramping up to over 45,000bopd, before a second precautionary shut-in between 19 July and 15 August.
Operations then restarted on 16 August, with gross volumes currently approaching 40,000bopd, GKP said.
As a result of cost reductions linked to the work suspensions, free cash outflow was limited to just -$2m, though this was down from free cash flow of $24.6m the year before.
Meanwhile, the average realised price of oil on export sales during the period was $83.5 a barrel, compared to just $27.8 the year before, helping adjusted EBITD jump to $51.7m from $41.1m previously.
The company declared an interim dividend of $0.046 per share, amounting to a payout of $10m.
"Looking ahead to the remainder of the year, our focus is on maintaining stable production and exports, progressing the PF-2 water handling project and securing full PSC entitlement for past and present export sales at international prices," said GKP boss Jon Harris.
"The latter would bolster cash flow generation, supporting our decision today to announce a semi-annual dividend of $10 million, and provide the foundations for a return to production growth in 2027."
The stock was up 11% at 200p by 1034 BST, a level it has not settled above since early April.
See the latest RNS on Investegate.