Tullow revenue falls by 21% to $1.27bn

tullow 15Tullow Oil recorded sales revenue fall by 21 per cent to $1.27 billion and gross profit down eight per cent to $546.9 million, the oil and gas firm said yesterday.

Announcing its full year results for the year to 31 December, the London-based firm said its administrative expenses were 40 per cent lower during the year at $116.4 million, with restructuring costs down 70 per cent at $12.3 million and losses on disposals narrowing 94 per cent to $3.4 million.

Its goodwill impairment was 205 per cent wider, however, coming in at $164 million.

Tullow’s exploration costs written off totalled $732 million for the year, three per cent smaller, with impairment of property, plant and equipment improving 59 per cent to $167.6 million.

Its provision for onerous service contracts was $114.9 million, a 38 per cent improvement.

Tullow Oil said its operating loss for the year was $754.7 million, an improvement of 31 per cent, while its loss after tax improved 42 per cent to $597.3 million.

Operating cash flow was 20 per cent lower at $774 million.

“The clear highlight of 2016 was delivering Ghana’s second major oil and gas development, the TEN fields, on time and on budget,” commented Chief Executive Aidan Heavey.

The Tullow founder said: “Production from TEN, alongside our other West African oil production, has provided Tullow with positive free cash flow and enabled us to begin the important process of deleveraging our balance sheet.”

Mr. Heavey said as the company focussed its free cash flow primarily on reducing debt, capital discipline remained critical.

“We have made excellent progress with our East African developments and are building a high quality exploration portfolio to grow our business.

“As I move to become chairman of the group and hand over to Paul McDade, Tullow has the right assets and expertise to take full advantage of the opportunities ahead,” he added.

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