Production up, revenue down as Tullow Oil hit by oil price correction
The Africa-focused group saw revenue drop on the year prior weighed down by a weaker oil price.
Tullow Oil has returned to results reporting season with a bump with falls in revenue, profit and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) despite production increases.
The London-listed oil producer today said that revenue for 2023 came in at $1.63bn (£1.25bn) against $1.78bn (£1.4bn) the year prior, despite sales volume growing slightly from 55,170 to 55,754 barrels of oil equivalent per day (BOE/D).
The company attributed the decline to a lower year-on-year realised oil price in 2023, which averaged around $82 (£64.53) per barrel against the $100 (£78.69) per barrel average in 2022.
For example, the average price per barrel stood at $82.49 in 2023.12 Feb 2024
EBITDA fell from $1.46bn (£1.1bn) in 2022 to $1.1bn (£865m) and gross profit came in at just $765m (£601m) – a 29.5 per cent decrease from the $1bn (£786m) in 2022.
Impairments and write-offs for the 12 months also rose on the comparable year prior from $435m (£342.3m) to $391m (£307.6m)
In total, the company posted a full-year loss after tax of $110m (£86.5m) having been $49m (£38.5m) in profit the year prior.
Tullow is an independent energy company with oil and gas development projects across Africa, including in Ghana, Gabon and Côte d’Ivoire, alongside a material-discovered resource base in Kenya.
“In line with our strategy, we are continuing to focus relentlessly on operational excellence, capital efficiency and investments to drive growth,” said the firm’s chief executive Rahul Dhir.
“This strategy is delivering material cashflow generation and we are on track to deliver our target of c.$800m free cash flow over the 2023 to 2025 period and optimise our capital structure.”
Shares in the group were down 0.48 per cent at the market opening this morning.
