Tullow Oil plc (Tullow), the independent oil and gas exploration and production group, announces its results for the year ended 31 December 2008.
Results summary
Tullow has maintained its outstanding exploration record and made excellent progress in developing its world-class basins in Ghana and Uganda. The Group has significantly strengthened the balance sheet with asset sales in 2008, and an equity placing and a major debt financing early in 2009.
2008 | 2007 | Change | |
|---|---|---|---|
Sales revenue ($m) | 692 | 693 | +8% |
Operating profit ($m) | 300 | 189 | +59% |
Profit before tax ($m) | 299 | 114 | +162% |
Profit after tax ($m) | 226 | 53 | +330% |
Basic earnings per share (pence) | 30.9 | 7.1 | +335% |
Interim dividend per share (pence) | 4.0 | 4.0 | +0% |
Operating cash flow before working capital ($m) | 519 | 474 | +9% |
Production (boepd, working interest basis) | 66,600 | 73,100 | -9% |
Realised oil price per bbl (US$) | 73.6 | 62.7 | +17% |
Realised gas price per therm (pence) | 52.4 | 37.3 | +40% |
Key highlights
Record sales revenue, cash flow and profit
Record reserves replacement of 582%; Resource base now 825 mmboe
Outstanding exploration performance – 17 discoveries from 22 wells
Portfolio management post-tax profit of £244 million on disposals
Exploration and impairment write off of £253 million
Major new discovery at Tweneboa in 2009 continues 100% success record in Ghana
Jubilee development remains on track for first oil in 2H 2010
Commercial threshold for development in Uganda comfortably exceeded
High impact Ngassa-2 well in Uganda to commence drilling in March 2009
US$2 billion bank facility secured and £402 million equity placing completed in 2009
Commenting today, Aidan Heavey, Chief Executive, said:
We have had our best year ever in 2008, when unprecedented success with the drill bit was matched by material progress towards the development of two major new oil provinces. We have delivered record results and significantly increased our resource base. Looking ahead, Tullow has the right people and funding in place to continue to develop our world-class assets and deliver strong and sustainable returns for shareholders. We’ve made a strong start in 2009 and it promises to be an exciting and challenging year. Overall we’re in excellent shape to deliver the Group’s next phase of growth.
Presentation, Webcast and Conference Calls:
In conjunction with these results, Tullow will conduct a presentation in London and a number of events for the financial community. Details are available on page 23 of this announcement (view the full press release in PDF) and in the Results Centre on the Group’s website at www.tullowoil.com.
Contacts
Tullow Investor Relations | Camarco (Media) |
|---|---|
Matthew Evans | (+44 20 3757 4980) Billy Clegg |
Notes to editors
Tullow is an independent energy company that is building a better future through responsible oil and gas development in Africa. Tullow's operations are focused on its core producing assets in Ghana. Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030, with a Shared Prosperity strategy that delivers lasting socio-economic benefits for its host nations. The Group is quoted on the London and Ghanaian stock exchanges (symbol: TLW). For further information, please refer to: www.tullowoil.com.
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