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Tullow Oil Resumes Dividend Payment as Profit Grows - African Eye Report | African Eye Report
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Tullow Oil Resumes Dividend Payment as Profit Grows

Tullow workers

February 13, 2019//-Oil plc (Tullow), the independent oil and gas exploration and production group, on Wednesday announced that it would resume the payment of dividend to its shareholders after recording its first annual post-tax profit after five years.

With respect to the 2018 financial year, following another strong year of free cash flow generation, the Board has decided to recommend a final dividend of 4.8¢/share (representing a total shareholder return of c.$67 million) which will be payable in May 2019 if approved at the 2019 AGM.

Commenting today in London, UK, Paul Mcdade , Chief Executive Officer of Tullow Oil Plc, said: “Tullow has worked hard over the past few years to become a self-funding, cash-generating business with a robust balance sheet, low-cost assets and a rigorous focus on cost and capital discipline.

This has allowed us to set a clear capital returns policy which will start with the 2018 final dividend announced today.

Our high-margin producing assets in West Africa, substantial development assets in East Africa and exploration licences in industry hotspots provide Tullow with a strong foundation for growth in the years ahead.”

2018 FULL YEAR RESULTS SUMMARY

  • Revenue of $1.9 billion; corporate Business Interruption insurance proceeds of $188 million
  • Gross profit of $1.1 billion; profit after tax of $85 million; free cash flow of $411 million; opex reduced to $10/barrel
  • Year-end net debt of $3.1 billion, $1 billion headroom; gearing of 1.9x; no near-term maturities
  • 2018 capital investment of $423 million; 2019 forecast of $570 million
  • Sustainable capital returns policy announced in November; 2018 final recommended dividend of 4.8¢/share (c.$67 million)
  • West Africa 2018 net oil production averaged 88,200 bopd; 2019 forecast 93,000 – 101,000 bopd
  • Principles agreed with Government of Uganda on CGT; completion of farm-down to follow
  • JV Partners targeting Uganda development FID around mid-year; Kenya development targeting end 2019 FID
  • Guyana exploration drilling to commence in mid-2019 with a three-well programme planned.

By Masahudu Ankiilu Kunateh, African Eye Report

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