Tullow Oil Reports Strong 2024 Performance with c.$1.5 Billion Revenue
Tullow Oil plc has announced its January Trading Statement and Operational Update ahead of its 2024 Full Year Results, revealing a strong financial performance with revenue of approximately c.$1.5 billion.
This figure includes hedge costs of around c.$74 million, with an average realised oil price (pre-hedging) of c.$80.2 per barrel.
The company’s capital and decommissioning expenditures were reported at approximately c.$230 million and c.$60 million, respectively, aligning with previous guidance.
Additionally, underlying operating cash flow stood at around c.$652 million, while free cash flow reached c.$156 million.
Tullow successfully reduced its net debt to approximately c.$1.45 billion, bringing its gearing ratio down to 1.3 times. The company also secured an extension of its c.$250 million revolving credit facility, which will now remain in place until the end of June 2025.
A major highlight in the update was the resolution of the Ghana Branch Profits Remittance Tax arbitration, which eliminated a c.$320 million contingent liability. The ruling also reinforced the validity of Tullow’s Petroleum Agreements in the West African nation.
Rahul Dhir, Chief Executive Officer of Tullow, emphasized the company’s progress in reducing debt and strengthening its balance sheet over the past four years.
“Through our commitment to operational excellence and prudent implementation of efficiencies, we have continued to generate free cash flow and have significantly reduced our net debt from approximately c.$2.81 billion to c.$1.45 billion,” he stated.
Dhir further highlighted that Tullow is well-positioned to manage its debt maturities and optimize its capital structure in 2025. He pointed to key developments such as the return to drilling at the Jubilee field, production optimization efforts to reduce decline rates, and cost-cutting measures as critical to the company’s growth strategy.
“2025 is set to be an exciting year for Tullow as we lay the foundations for capital returns and pan-African growth,” Dhir added.
With its improved financial standing and operational efficiencies, Tullow remains focused on sustainable growth and enhancing shareholder value in the coming years.
