2019 Full Year Results

Published on: 12 March 2020

Tullow Oil announces its Full Year Results for the year ended 31 December 2019.


Tullow Oil plc (Tullow), the independent oil and gas exploration and production group, announces its Full Year Results for the year ended 31 December 2019. Details of a management presentation, webcast and conference call are available on the last page of the full announcement or please see the bottom of this web page.


Dorothy Thompson, Executive Chair, Tullow Oil plc, commented today:

“This has been an intense period for Tullow as we have worked hard on a thorough review of the business which has led to clear conclusions and decisive actions. We are focused on delivering reliable production, lowering our cost base and managing our portfolio to reduce our debt and strengthen our balance sheet. Even with recent events in oil markets, Tullow’s assets remain robust: we are a low-cost African oil producer, with a strong hedging position, substantial reserves that underpin our business and a high potential exploration portfolio.”


  • Group working interest production averaged 86,800 boepd; capital investment of $490 million
  • Revenue of $1,683 million; gross profit of $759 million; loss after tax of $1,694 million
  • Loss after tax driven by exploration write-offs and impairments totalling c.$2.0 billion including revised Uganda write-off
  • Free cash flow of $355 million; year-end net debt of $2.8 billion; gearing of 2.0x net debt/EBITDAX
  • Commenced exploration campaign in Guyana; Carapa-1 well confirms extension of Cretaceous play into Tullow’s acreage
  • Continued project progress in Kenya towards FID; first ever lifting of Kenyan crude
  • Departure of CEO and Exploration Director by mutual agreement following disappointing business performance


  • Business Review undertaken covering all aspects of Tullow’s operations and cost base
  • Group being restructured to create an effective and efficient organisation; 35% headcount reduction
  • Dividend suspended and 2020 capex lowered to c.$350 million; c.$200 million of G&A cash cost savings targeted over 3 years
  • Greater Group control of operations and production forecasting through appointment of Mark MacFarlane as COO
  • Ghana production and sub-surface management centralised in London; new Asset Director hired
  • Areas of potential investment to maintain long-term production and reserve recovery identified at both Jubilee and TEN
  • New Head of Exploration hired; c.45% reduction in exploration budget; disciplined exploration strategy
  • Portfolio management planned to raise in excess of $1 billion of proceeds, further streamline the business and reduce gearing

2020 outlook

  • Group production year-to-date in line with expectations; full year guidance of 70,000 – 80,000 bopd
  • Jubilee performing well after gas processing facility upgraded, increased gas offtake agreed, and sea-water injection capacity optimised; Nt-09 production well at TEN on-stream in Q2; non-operated West African production in line with expectations
  • Capex of c.$350 million, down c.30% from 2019; exploring options to reduce further if required
  • 2020 free cash flow forecast of $50-$75 million at $50/bbl; free cash flow breakeven of c.$45/bbl
  • 60% of 2020 sales revenue hedged with a floor of $57/bbl; 40% of 2021 sales revenue hedged with a floor of $53/bbl
  • RBL redetermination ongoing; expected c.$1.9 billion debt capacity at the end of March; liquidity of c.$700 million

2019 key financial results



Total revenue ($m)1



Gross profit ($m)



(Loss)/ profit after tax ($m)



Free cash flow ($m)



Net debt ($m)



Gearing (times)



  1. Total revenue does not include receipts for Tullow’s corporate Business Interruption insurance of $43 million (2018: $188 million).

Read the full statement here



A management presentation will be held at 9am this morning. To join the live video webcast or play the on-demand version, please use this link:

The replay will be available from noon on 12 March 2020.

For further information contact

  • Tullow Oil plc

    • Nicola RogersInvestor Relations
    • Matt EvansInvestor Relations
    • George CazenoveMedia Relations
    • London

  • Murray Consultants

    • Pat Walsh
    • Joe Heron
    • Dublin

Notes to editors

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW). The Group has interests in over 80 exploration and production licences across 15 countries which are managed as three Business Teams: West Africa, East Africa and New Ventures.