Investors Benefit From Gulf Keystone's Generous Dividends.

The company has issued a significant amount of dividends totaling $215 million. This has resulted in an impressive dividend yield. The company expects to hit record profits in the upcoming year, as forecasted. However, there are still ongoing disputes with the government.

Gulf Keystone (GKP) caught a lot of attention last year due to its past employment of the former candidate for prime minister and short-lived chancellor, Nadhim Zahawi. The media searched for any unethical financial actions during his stint as the chief strategy officer for Gulf Keystone, which is based in Kurdistan. But surprisingly, it was his handling of shares in YouGov (YOU), a polling firm, that caused him to lose his position as the chair of the Conservative Party.

However, let's shift our focus to the main topic - Gulf Keystone experienced remarkable profitability in 2022, obtaining an adjusted Ebitda of $358mn (£290mn). A vast majority of this revenue successfully translated to the after-tax profit, which amounted to $266mn. Global energy corporations have noticed an increase in taxes as governments strive for more revenue while simultaneously addressing public dissatisfaction with excessive profits.

Gulf Keystone has encountered problems with their dealings with the government. They are currently experiencing delays in receiving payments from the Kurdistan Regional Government (KRG). The management team has voiced their concern and plans to consider making cuts to their spending plan if the KRG does not provide the necessary funds. As of now, they have planned to spend between $160mn to $175mn.

The business sells its goods to the KRG and had $76mn outstanding payments for the final quarter of the year. There is a disagreement concerning the cost, as the administration is now using Kurdistan blend as a comparison instead of Brent crude, which is cheaper. Nonetheless, the company provided a $215mn payout to investors with a return of almost 50%. Additionally, it paid back $100mn they owed and sustained a positive cash flow. The advantages surpass the drawbacks; purchase now.

Latest IC Perspective: Purchase, priced at 247p as of September 1st, 2022.