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Continued exploration success
Results in line with market expectations
Poised for major production growth in Ghana and Uganda

Results summary

The reported financial results for 2009 are in line with market expectations and down compared with 2008. The successful completion of new debt facilities and equity placings, coupled with the proposed Uganda farmdown, are major steps in ensuring that the Group remains well funded to continue to execute its medium term exploration, appraisal and development programmes.

   2009  2008  Change 
 Sales revenue ($m)  582  692  -16%
 Operating profit ($m)  95  300   -68% 
 Profit before tax ($m)  20  299  -93% 
 Profit after tax ($m)  19  266   -92%
 Basic earnings per share (pence)  1.9  30.9   -94%
 Final dividend per share (pence)  4.0  4.0  0% 
 Operating cash flow before working capital ($m)  374  519  -28% 
 Production (boepd, working interest basis)  58,300  66,600   -12% 
 Realised oil price (US$ per bbl)  60.0  73.6  -18%
 Realised gas price (pence per therm)  33.9  52.4  -25%

Download Tullow Oil plc 2009 Full year Results (PDF, 619KB, opens in a new window)

Key highlights

  • Outstanding exploration performance: 13 discoveries from 15 wells
    Major discoveries: Jobi-Rii (previously Buffalo-Giraffe) in Uganda; Tweneboa in Ghana
  • Venus wildcat result extends the Jubilee play to the Equatorial Atlantic Liberian and Guyana Basins
  • Total and Shell farm in to French Guiana supporting Jubilee play extension to South America
  • Exercised pre-emption over Heritage Oil's Ugandan sale in Jan 2010 for up to US$1.5 billion; CNOOC and Total proposed as new joint venture partners in Uganda to facilitate aligned and accelerated basin development
  • Jubilee project remains on schedule and on budget; first oil expected Q4 2010
  • US$2.25 billion debt facilities secured; £1.33 billion raised through equity placings in 2009 and 2010

Commenting today, Aidan Heavey, Chief Executive, said:

"A strong performance in 2009 and an excellent start to 2010 has enabled the Group to continue to create material exploration and development opportunities. Although our 2009 reported results still reflect a period of financial transition, first oil in Ghana from the Jubilee field later this year will result in considerable production growth and increased cash flow. Our transformational exploration programme continues apace with up to 30 wells planned for 2010. In Uganda we are working closely with the government and two potential new partners to accelerate development. Our future growth is well underpinned by a significantly strengthened capital structure and overall the performance prospects for the Group are very strong."

Presentation, Webcast and Conference Calls:

In conjunction with these results, Tullow will conduct a presentation in London and a number of events for the financial community. Details are available on page 26 of this announcement (view the full press release in PDF).