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Record first half revenue and profits

Exploration success continues with major discovery in Kenya 

Jubilee production issues being successfully resolved

2012 Half-yearly results summary

Tullow had an excellent first half. The Group's strong financial performance was mainly driven by increased production, sustained high commodity prices and the profit on the Uganda farm down. This was partially offset by increased exploration write-offs and increased costs. Industry-leading exploration and appraisal success continued, including the discovery of a fourth new oil basin in five years. A programme of acid stimulations is increasing production on the Jubilee field, offshore Ghana, and together with Phase 1A development, is expected to deliver plateau production next year. In Uganda, the completion of the farm-down has been followed by a ramp up in drilling activity and progression of the Development Plan.


   1H 2012  1H 2011  Change
 Sales revenue ($m)  1,167  1,062  +10%
 Operating profit ($m)  834  608  +37%
 Profit before tax ($m)  829  560  +48%
 Profit after tax ($m)  576  347  +63%
 Basic earnings per share (cents)  60.3  36.9  +63%
 Interim dividend per share (pence)  4  4  No change
 Operating cash flow before working capital ($m)  875  875  0%
 Production (boepd, working interest basis)  77,400  75,100  +3%
 Realised oil price (US$ per bbl)  110.7  112.0  -1%
 Realised gas price (pence per therm)  58.4  56.0  +4%

Key highlights

  • Strong growth in first half sales revenue and profit; balance sheet and financial flexibility fundamentally transformed by Uganda farm-down; interim dividend of 4 pence per share maintained.
  • 77% exploration and appraisal success year-to-date (17 out of 22 wells)
  • Wawa-1 well, offshore Ghana, discovered gas condensate and light oil in a separate accumulation up-dip from TEN; and
  • Major discovery made at Ngamia-1 in Kenya; 1.1 km thick gross oil bearing interval with over 100 metres of net pay recorded; Kenyan exploration campaign accelerated and increased.
  • Group working interest production averaged 77,400 boepd in the first half of 2012; production for the full year is forecast to average between 80,000 and 84,000 boepd with an exit rate of over 90,000 boepd; Jubilee gross production in Ghana is expected to increase to over 90,000 bopd by year-end.


“In the first half of 2012 we continued to build on the record results achieved in 2011. Our exploration-led growth strategy continues to yield an exceptional success ratio and Tullow has, with the discovery of oil onshore Kenya, opened up a fourth new basin within five years. Our balance sheet has been transformed by the Uganda farm-down and our financial strength will continue to improve through growing production, as Jubilee fulfils its potential. A strong pipeline of activity in the second half of 2012 promises another excellent year for the Group.”