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Tullow Oil announces 2019 full year results

Tullow Oil has announced its full year results for the year ended 31 December 2019.

Dorothy Thompson, Executive Chair, Tullow Oil, commented:

“This has been an intense period for Tullow as we have worked hard on a thorough review of the business which has led to clear conclusions and decisive actions. We are focused on delivering reliable production, lowering our cost base and managing our portfolio to reduce our debt and strengthen our balance sheet. Even with recent events in oil markets, Tullow’s assets remain robust: we are a low-cost African oil producer, with a strong hedging position, substantial reserves that underpin our business and a high potential exploration portfolio.”

2019 Full Year Results Summary

  • Group working interest production averaged 86,800 boepd; capital investment of $490 million
  • Revenue of $1,683 million; gross profit of $759 million; loss after tax of $1,694 million
  • Loss after tax driven by exploration write-offs and impairments totalling c.$2.0 billion including revised Uganda write-off
  • Free cash flow of $355 million; year-end net debt of $2.8 billion; gearing of 2.0x net debt/EBITDAX
  • Commenced exploration campaign in Guyana; Carapa-1 well confirms extension of Cretaceous play into Tullow’s acreage
  • Continued project progress in Kenya towards FID; first ever lifting of Kenyan crude
  • Departure of CEO and Exploration Director by mutual agreement following disappointing business performance

Business Review

  • Business Review undertaken covering all aspects of Tullow’s operations and cost base
  • Group being restructured to create an effective and efficient organisation; 35% headcount reduction
  • Dividend suspended and 2020 capex lowered to c.$350 million; c.$200 million of G&A cash cost savings targeted over 3 years
  • Greater Group control of operations and production forecasting through appointment of Mark MacFarlane as COO
  • Ghana production and sub-surface management centralised in London; new Asset Director hired
  • Areas of potential investment to maintain long-term production and reserve recovery identified at both Jubilee and TEN
  • New Head of Exploration hired; c.45% reduction in exploration budget; disciplined exploration strategy
  • Portfolio management planned to raise in excess of $1 billion of proceeds, further streamline the business and reduce gearing

For more information, click on the link below.

Source: EnergyPedia via CrudeMix

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