During 2007, Tullow’s business reached a new level of scale in terms of production, operating cash flow, market value and future growth potential. Total shareholder return in 2007 exceeded 66% (2006: 49%), placing Tullow in the top quartile of its peer group. Over the three year period from 2005 to 2007, Tullow’s total shareholder return has been in excess of 440%.
Overall, results for the year were solid. Production grew 13% to over 73,000 boepd and oil pricing remained positive. However a 19% decline in realised gas price, which represents 40% of revenue, impacted our performance and this, combined with increased depreciation and interest charges and exploration write-offs, meant that earnings per share declined 71% to 7.10 pence.
Our financial strategy is to maintain financial flexibility to support the Group’s significant appraisal and development programmes in Ghana and Uganda and effectively allocate capital across the remainder of our business.
