Africa-focused independent oil company, Tullow Oil PLC, recorded a US$110 million loss after tax last year, compared with a profit after tax of US$49 million in 2022.
In a statement issued on Wednesday, Tullow said its gross profit for the year 2023 was US$765 million but recorded a loss of US$110 million after-tax driven by impairments and write-offs totalling US$435 million.
The company’s revenue for the year 2023 is pegged at US$1,634 million compared with US$1,783 million in 2022.
Tullow also generated around US$170 million in free cash flow last year, ahead of the US$150 million guidance but below the US$267 million generated in 2022, and cut net debt to US$1.61 billion from US$1.86 billion in 2022.
Tullow expects to generate more than US$600 million in free cash flow in 2024 and 2025.
Its market capitalisation stood at US$410 million as of March 6.
The company has focused on reducing debts, significantly cut capital allocation to long-cycle projects, and raised over US$700 million through sales of interests in Uganda, Equatorial Guinea and Gabon.
In 2023, production was pegged at around 62,700 barrels of oil equivalent per day (boe/d) and in 2024 output is forecasted between 62,000 and 68,000 boe/d.
Its turnover declined to US$1.63 billion last year, from US$1.78 billion in 2022.
It would have been US$139 million higher without hedges.
The company expects US$250 million of capital expenditure in 2024, compared with US$380 million last year.
About 60 per cent of the capital costs this year would be allocated to Jubilee.
Tullow also reiterated its guidance for US$200-300 million of free cash flow this year at the US$80 a barrel level for crude, largely driven by the timing of revenue receipts for 18 to 19 cargoes lifted in Ghana during the year.
Commenting, Chief Executive Officer of Tullow Oil plc, Rahul Dhir, said, “2023 was a year of significant achievements, including the start-up of Jubilee South East that delivered material production growth from our core operated field, a new revenue stream established from the sale of Ghana associated gas; and reserves growth in Gabon through licence extensions.
“We also generated free cash flow ahead of expectations despite a lower year-on-year realised oil price and demonstrated our ability to access long-term capital through the US$400 million debt facility agreement with Glencore.
“In line with our strategy, we are continuing to focus relentlessly on operational excellence, capital efficiency and investments to drive growth. This strategy is delivering material cash flow generation and we are on track to deliver our target of US$800 million free cash flow over the 2023 to 2025 period and optimise our capital structure.
“Tullow has a strong and unique foundation to create material value for our investors, host nations and stakeholders and we look to the future with confidence.”
Source: https://energynewsafrica.com
