Tullow Oil plc announces its results for the year ended 31 December 2012
Tullow delivered another solid financial performance in 2012. While the oil price was volatile throughout the year due to economic and political uncertainty, it averaged $108 per barrel, in line with 2011. Sales revenue grew by 2% to $2,344 million (2011: $2,304 million) due to higher sales volumes. Profit from continuing activities before tax increased by 4% to $1,116 million (2011: $1,073 million) as the $701 million pre-tax gain on the Uganda-farm down was largely offset by an increase in total exploration write-offs, which amounted to $300 million for 2012 activities coupled with a further asset write-down announced at the half year giving a total of $671 million (2011: $121 million), and higher operating costs associated with mature fields. Profit from continuing activities after tax declined 3% to $666 million (2011: $689 million) and basic earnings per ordinary share from continuing activities decreased 5% to 68.8 cents (2011: 72.5 cents).
– Financial results in line with market expectations and balance sheet substantially strengthened through debt re-financing and $2.9bn from Uganda farm-down.
– Following successful and cost-effective well remediation, the Jubilee field is now producing around 110,000 bopd; A 2013 exit rate in excess of 120,000 bopd is expected.
– Tweneboa-Enyenra-Ntomme (TEN) project Plan of Development submitted; approval expected shortly.
– Major basin-opening discovery in Kenya with the Ngamia-1 and Twiga South-1 wells; Twiga South-1 well flow-tested at a combined rate of 2,351 barrels of 37 degree API oil from two zones with the final test ongoing.
– Significant strategic portfolio management with a renewed focus on light oil including the acquisition of Norway’s Spring Energy for $372m and the disposal of gas assets in Europe and Asia.
– Additional new country entries in Africa and the Atlantic margins; Guinea, Greenland, Uruguay and Mozambique.
– 40+ E&A well campaign planned for 2013; High-impact wells expected in Kenya, Ethiopia, Mauritania, Mozambique, Norway, French Guiana and Côte d’Ivoire.
Commenting today, Aidan Heavey, Chief Executive, said:
“2012 was a year of major progress for Tullow. We materially enhanced the business with a basin-opening oil discovery in Kenya, by adding highly prospective new licences in Africa and the Atlantic Margins, refinancing our debt and partially monetising our Ugandan assets. The Jubilee Field in Ghana is now approaching its full potential and provides the base for our production profile and operational cash flow. Our financial position underpins our highly ambitious 2013 exploration programme which has high-impact wells planned in Kenya, Ethiopia, Norway, Mauritania, Mozambique, Côte d’Ivoire and French Guiana. This focus on exploration-led growth, together with active portfolio management and Tullow’s strong balance sheet, provides an excellent platform for growth in 2013 and beyond.”
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