Record financial results in 2011 were complemented in February 2012 with the completion of the $2.9 billion Ugandan farm-down to Total and CNOOC. Tullow now has a very strong balance sheet which gives the Group the financial flexibility to pursue its exploration-led growth strategy, invest in key development projects and acquisitions, and support a progressive dividend policy.
2011 results overview
Tullow delivered record results in 2011. Sales revenue grew 111% to $2.3 billion (2010: $1.1 billion) as a result of a 41% increase in sales volumes and significantly higher average price realisations. Profit from continuing activities before tax was up 499% to $1.1 billion (2010: $179 million) as a result of a combination of:
- $1.2 billion increase in sales revenue;
- $27 million IAS 39 gain;
- $34 million reduction in exploration costs written-off; and
- Partly offset by an increase in operating costs of $160 million and an increase in Depreciation, Depletion and Amortisation (DD&A) and impairment charges of $187 million; both largely due to first year of production from the Jubilee field in Ghana.
Profit for the year from continuing activities increased 670% to $689 million (2010: $90 million). Basic earnings per share grew 795% to 72.5 cents (2010: 8.1 cents).
Profit after tax 2011 versus 2010