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222 mmboe of Contingent Resources added through successful exploration and appraisal

Revenue, gross profit and cash flow increase; funding sources diversified

Major development progress in East and West Africa


“Tullow performed well in 2013. The business generated almost $2 billion of operating cash flow and has established a flexible and strong balance sheet. The Group delivered another year of exploration and appraisal success and production growth and made significant progress with its key developments in Ghana, Kenya and Uganda, which will deliver major increases in cash flow over the next 3‑5 years. An ambitious exploration and appraisal programme is planned for 2014, which is targeting opportunities in our core plays in Africa and the Atlantic margins. As with previous years, we are aiming for resource additions of over 200 mmboe and we are well placed for an exciting year of growth in 2014 with an enviable portfolio of assets and opportunities.”


2013 Full Year Results highlights

  • Group 2013 average working interest production of 84,200 boepd generates strong operating cash flow of $1.9 billion; 2014 Group average working interest production is expected to be in the range 79,000‑85,000 boepd
  • 2013 Revenue and gross profit increase compared to prior year; profit after tax of $216 million was impacted by both a decrease in profit on disposals of $670 million and a $200 million increase in exploration write‑offs
  • Balance sheet substantially strengthened through $650 million debut bond issue in November 2013; net debt at year-end 2013 of $1.9 billion with unutilised debt capacity of $2.4 billion
  • Government of Kenya supports development studies following commercial discoveries of at least 600 mmbo gross; Government of Uganda signs MoU with partners in relation to the Lake Albert Rift Basin Development Project
  • TEN Plan of Development approved by Government of Ghana and project is on schedule for first oil in mid‑2016
  • Frégate‑1 wildcat well offshore Mauritania opens a new oil play in Late Cretaceous turbidites, after encountering up to 30 metres of net gas‑condensate and oil pay in multiple sands
  • Exploration and appraisal success, particularly in East Africa and Norway, adds 222 mmboe to Contingent Resources in 2013; new acreage acquired in Suriname, Norway, Namibia and Guyana adds to high-quality portfolio
  • Significant E&A campaign planned for 2014 with high-impact campaigns onshore in Kenya and Ethiopia and offshore in Norway, Mauritania and Guinea

Financial overview

  2013 2012 Change
Sales revenue ($m) 2,647 2,344 +13%
Gross profit ($m) 1,440 1,345 +7%
Operating profit ($m) 381 1,185 -68%
Profit before tax ($m) 313 1,116 -72%
Profit after tax ($m) 216 666 -68%
Basic earnings per share (cents) 18.6 68.8 -73%
Full year dividend per share (pence) 12.0 12.0 0%
Operating cash flow before working capital ($m) 1,901 1,777 +7%
Working interest production (boepd) 84,200 79,200 +6%
Realised oil price per barrel ($) 105.7 108.0 -2%
Realised gas price per therm (pence) 65.6 58.5 +12%