Tullow Oil Records Strong 2024 Performance with $1.5 Billion Revenue

Tullow Oil Records Strong 2024 Performance with $1.5 Billion Revenue

Tullow Oil plc has released its January Trading Statement and Operational Update ahead of its 2024 Full Year Results, showcasing a solid financial performance.

The company reported revenue of approximately c.$1.5 billion, including hedge costs of around $74 million, with an average realised oil price (pre-hedging) of $80.2 per barrel.

Capital and decommissioning expenditures stood at approximately $230 million and $60 million, respectively, in line with previous projections.

Additionally, underlying operating cash flow reached $652 million, while free cash flow amounted to $156 million.

Tullow made significant strides in reducing its net debt, which now stands at approximately $1.45 billion, lowering its gearing ratio to 1.3 times. The company also secured an extension of its $250 million revolving credit facility, now valid until the end of June 2025.

A key milestone in the update was the resolution of the Ghana Branch Profits Remittance Tax arbitration, which removed a $320 million contingent liability.

The ruling also reaffirmed the validity of Tullow’s Petroleum Agreements in Ghana, strengthening the company’s legal and operational position in the country.

Tullow’s Chief Executive Officer, Rahul Dhir, underscored the company’s progress in debt reduction and balance sheet improvement over the past four years.

“Through operational efficiencies and disciplined financial management, we have significantly reduced our net debt from $2.81 billion to $1.45 billion while continuing to generate free cash flow,” he stated.

Dhir emphasized that Tullow is well-positioned to manage its debt maturities and optimize its capital structure in 2025.

He pointed to key initiatives such as resumed drilling at the Jubilee field, production optimization efforts to mitigate decline rates, and cost-cutting measures as critical drivers of the company’s growth strategy.

“2025 promises to be an exciting year for Tullow as we lay the groundwork for capital returns and pan-African expansion,” Dhir added.

With a strengthened financial position and improved operational efficiencies, Tullow remained focused on sustainable growth and delivering long-term value to shareholders.

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