Business Irish

Friday 21 October 2016

Tullow Oil expects revenue of $1.6bn for 2015 despite oil crisis

Published 13/01/2016 | 07:33

Aidan Heavey, Tullow Oil CEO
Aidan Heavey, Tullow Oil CEO

Tullow Oil, one of Ireland's biggest oil companies, is expecting revenue of $1.6bn, gross profit of $600m and operating cash flow of $1bn for last year.

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In a trading update released to stock markets this morning the company said that a number of accounting changes will be implemented in its final trading update for 2015, due to be released on Wednesday, February 10.

The company cited current oil prices as one of the reasons for the changes.

In the update Tullow says that at the end of the last financial year it had financial headroom of $1.9bn and a mark-to-market hedge value of over $600m as the oil crisis takes its toll.

During 2015, Tullow increased the capacity of its Reserve Based Lend (RBL) and Corporate Facilities by $450 million.

Speaking in the announcement this morning Tullow chief executive, Aidan Heavey said: “In 2015, Tullow not only reset its business to deal with very difficult market conditions but also delivered on its key operational goals. Strong West African oil production supported by a significant hedge programme delivered pre-tax operating cash flow of $1bn.

"We continue to focus on driving down our costs and capital expenditure and, at the beginning of 2016, Tullow has a mark-to-market hedge value of over $600m and financial headroom of $1.9bn. Accordingly, we have a diversified balance sheet which supports our planned activities for the year ahead," he said.

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