Restatement of 2004 Results under International Financial Reporting Standards
23/08/2005
Tullow Oil plc (Tullow) today announces the impact of the transition to International Financial Reporting Standards (IFRS) on the Group’s 2004 results, for both the full year and the half year, with explanations as to what adjustments have been made and the likely future impacts of these new reporting standards. Previously the Group prepared its financial statements under UK Generally Accepted Accounting Principles (UK GAAP).
As reported in the 2004 Annual Report and in accordance with EU regulations, the Group will adopt IFRS with effect from 1 January 2005. The Group will report under IFRS for the first time at its Interim Results for the six months ended 30 June 2005, to be announced on 14 September 2005. The first full year results to be reported under IFRS will be for the year ended 31 December 2005. These interim and final results will include as comparatives, the restatements under IFRS published on 23 August 2005, provided there are no significant changes to the Standards effective for 2005.
The principal adjustments in changing from the Group’s existing accounting practices to IFRS are in the following standards:
- IFRS 2 – share based payments
- IAS 16 – property, plant and equipment
- IAS 12 – income taxes
- IAS 17 – leases
- IAS 39 – financial instruments
Summary Impact of IFRS on 2004 Results
| UK GAAP £m | IFRS1 £m |
% Change | Comment on principal changes | |
| Revenue | 225.3 | 225.3 | 0% | No change |
| Operating Costs | 63.5 | 60.8 | -4% | IAS 17 Espoir Lease |
| Depletion and Amortisation | 67.6 | 80.4 | +19% | IAS 17 Espoir lease, IAS 12 Energy Africa tax gross up IAS 16 component depreciation: Gawain |
| Operating Profit | 67.5 | 56.8 | -16% | Additional depreciation |
| Profit after tax | 32.9 | 31.3 | -5% | Negative Gawain depreciation offset by PRT charge reduction |
| Cashflow from operating activities | 154.3 | 154.3 | 0% | No change |
| Net assets | 379.1 | 375.5 | -1% | Negative Gawain depreciation offset by PRT charge reduction |
| pence | pence | |||
| Earnings per share | 6.18 | 5.88 | ||
| Diluted earnings per share | 6.11 | 5.81 | ||
| Dividend per share | 1.75 | 1.75 | ||
| 1 Excludes the impact of IAS 32 and IAS 39, which will be adopted prospectively from 1 January 2005. | ||||
Presentation on IFRS Transition
To complement this announcement, a presentation on the IFRS transition, hosted by Tom Hickey, Chief Financial Officer, and Julian Tedder, Group Finance Manager, will be held at 09:30 (BST) on Wednesday 24 August 2005 at Citigate Dewe Rogerson’s offices, 3rd Floor, 3 London Wall Buildings, London Wall, London, EC2M 5SY.
For those unable to attend the presentation, there will be a conference call at 16:00 (BST) on Wednesday 24 August 2005. For UK and European participants please call +44 (0)20 7365 1849 and request to be connected to the Tullow Oil teleconference. For US participants please call +1 718 354 1172.
A replay facility will be available from one hour after the conference call. Please call +44 (0)20 7784 1024 (UK and European) or +1 718 354 1112 (US), access code: 3545963.
For further information on the Group and the IFRS transition, please refer to our website at www.tullowoil.com
Contact Us
If you have any questions on this announcement or regarding the presentation please contact:
| Tullow Oil plc | Citigate Dewe Rogerson | Murray Consultants |
| (+44 208 996 1000) | (+44 207 638 9571) | (+353 1 498 0300) |
| Tom Hickey | Martin Jackson | Joe Murray |
| Julian Tedder | ||
| Chris Perry |
Download announcement of Restatement of 2004 Results under IFRS (PDF, 1.32MB, opens in a new window)
| To view this format you will need the Acrobat Reader. |  |
 |
 |
