Saturday 23 February 2019

Tullow 'well placed' to deliver on growth, with revenue of $1.8bn expected for 2018

Tullow Oil CEO Paul McDade
Tullow Oil CEO Paul McDade
Ellie Donnelly

Ellie Donnelly

Tullow Oil is "well placed" to deliver on its growth ambitions in 2019.

This is according to a trading update from the company ahead of its full results in respect of 2018.

Last year oil production at the African-focused group worked out at 88,200 barrels of oil per day (bopd). This year the company expects production to be in the region on 93,000-101,000 bopd.

Full year revenue for 2018 is expected to be around$1.8bn (€1.6bn), with additional proceeds of circa $200,000 (€175,000) from business interruption insurance.

The company said it expects gross profit to be approximately $1.1bn (€961m) for 2018.

"In 2019, we will increase oil production in West Africa, target final investment decisions in East Africa and drill the first wells in an exciting exploration campaign in Guyana," Paul McDade, CEO of Tullow, said.

"Despite a volatile oil price, Tullow's improved balance sheet, low cost production and strong cash flow generation, even at lower oil prices, will allow us to both invest for growth and pay a sustainable dividend."

Tullow had free cash flow of about $410m in 2018, while net debt at year-end was approximately $3.1bn.

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