Tullow Oil plc announces record Interim Results
14/09/2005
14 September 2005 – Tullow Oil plc (Ticker: TLW), the independent oil and gas, exploration and production Group, today announces its interim results for the six months ended 30 June 2005. These interim results are prepared under International Financial Reporting Standards (IFRS) including the prospective adoption of IAS 39 from 1 January 2005. All comparisons are based on an IFRS restatement of 2004 UK GAAP financial information, which was announced on 12 August 2005, and is available on the Group’s website at www.tullowoil.com.
Interim Results Analysis
The exceptionally strong oil and gas pricing environment, the benefit of the inclusion of Energy Africa for a full six months, a three month contribution from Schooner and Ketch, combined with steady growth in Group production resulted in a record performance for Tullow in the first half of 2005
Financial Highlights
| H1 2005 £’000 |
H1 2004 £’000 |
|
| Revenue increased £124.9 million, up 163% | 201,434 | 76,533 |
| Operating profit before exploration activities increased £82.5 million, up 318% | 108,404 | 25,887 |
| Exploration Costs Written Off | (4,019) | (4,430) |
| Net Interest | (7,416) | (4,122) |
| Profit before Tax increased £74.0 million, up 427% | 91,377 | 17,335 |
| Taxation | (28,291) | (8,998) |
| Profit for the period increased £54.7 million, up 660% | 63,086 | 8,337 |
| Pence | Pence | |
| Basic earnings per share | 9.82 | 1.98 |
| Operating cash flow before working capital per share | 18.11 | 7.74 |
| Dividend per share | 1.0 | 0.5 |
- In 2004 the Group successfully completed the full integration of Energy Africa, which doubled the size of Tullow. The new management and organisation structures are working well, resulting in a strong first half performance.
- During the period, material development programmes included two projects in the UK Southern North Sea (SNS) and over 30 wells in West Africa, delivering steady organic production and reserve growth.
- In March Tullow completed the acquisition of the Schooner and Ketch fields and a redevelopment programme is currently ahead of schedule.
- Tullow’s net UK gas production reached an all time high of 180 mmscfd in the first half and first gas was achieved from the Horne & Wren development.
- Weighted average working interest production was 57,350 boepd, more than double that of the same period last year and is forecast to average 60,000 boepd in the second half of the year.
- Group reserve replacement was 97%, led by Gabon, which now accounts for 30% of the Group’s total production.
- A successful exploration programme in the SNS and Gabon led to three discoveries close to Tullow infrastructure.
- Good progress was made in relation to the commercialisation of the giant Kudu gas field offshore Namibia with the completion of the FEED study, preparation for invitations to bid for construction are getting underway and progressive approvals in regulatory arrangements.
- As part of ongoing portfolio management, the disposal of the non-core Alba and Caledonia assets was completed in June, with a profit on disposal of £33.2 million. The Congo (Brazzaville) offshore asset disposal was completed in August. Total proceeds from these disposals amounted to $184 million.
2005 Outlook
2005 continues to be another exciting year for Tullow and the industry. Oil and gas prices are exceptionally strong and are forecast to remain so in the current supply environment. In the first half the Group has successfully integrated the major acquisitions of the last 12 months and has begun adding significant value to those assets through sound management and technical and development excellence. Performance throughout the Group is encouraging, with material upside potential for Tullow in Kudu, Schooner and Ketch redevelopment and the imminent high impact exploration wells in Uganda and Mauritania.
Commenting today, Aidan Heavey, Chief Executive, Tullow Oil plc, said:
“The record first half performance announced today demonstrates the continuing progress of our business. The deals completed in recent years have been successfully integrated, our assets are showing strong organic growth and we have developed an exploration portfolio which combines lower risk “snuggle” projects with exciting high impact opportunities. I believe that these attributes will continue to deliver long term growth and superior performance for the Group.”
Webcast and Conference Calls
In conjunction with the Group’s Interim Results presentation for the financial community in London there will be a simultaneous conference call and webcast. In addition there will be a conference call in the afternoon. Replay and archive facilities will be available for all events later today via our website, www.tullowoil.com. All events are hosted by Aidan Heavey, Chief Executive and other participating senior management are Tom Hickey, Chief Financial Officer, Paul McDade, Chief Operating Officer and Adrian Nel, Exploration Director.
9.30 am (BST): Conference Call - In the UK/Europe please call +44(0)20 7365 1843 and in Ireland please call +353(0)1 659 8311. A replay facility will be available from one hour after the conference call for seven days. To access the replay facility in the UK/Europe please call +44(0)20 7784 1024 and in Ireland please call +353 (0)1 659 8321. The passcode is 6691834#.
9.30 am (BST): Webcast - Please visit the Results Centre on our website at www.tullowoil.com to access the webcast. An archive of the Webcast will be available from this afternoon.
2.30 pm (BST): Conference Call - In the US please call +1 913 981 5571 and in the UK please call +44(0) 20 7984 7756. A replay facility will be available one hour after the conference call for seven days. To access the replay facility, please call + 1 719 457 0820 or +44(0)20 7984 7568. The passcode is 4479007.
About Tullow Oil plc
Tullow is a leading independent oil and gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 250 Index. The Group has interests in over 90 production and exploration licences in 15 countries and focuses on three core areas: NW Europe, West Africa and South Asia.
For further information please refer to our website at www.tullowoil.com.
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