LONDON--Tullow Oil PLC (TLW.LN), an independent oil and gas
exploration and production group, Wednesday reported a 47% fall in
net profit for the first half of 2012, due mainly to impact of the
Ugandan farm-down profit on disposal last year, with production up
14%, but cut its 2013 average production forecast to 84,000-88,000
barrels of oil equivalent per day, or boepd, from 86,000-92,000
boepd.
MAIN FACTS:
-Sales revenue for half year ended June 30 $1.35 billion (2012:
$1.17 billion), +15%
-Gross profit $764 million (2012: $679 million), +13%
-Profit on disposal - (2012: $702 million)
-Exploration costs written off $176 million (2012: $451
million)
-Operating profit $500 million (2012: $834 million), -40%
-Profit before tax $486 million(2012: $829 million), -41%
-Profit after tax $313 million (2012: $567 million), -45%
-Net profit $292.2 million (2012: $546.2 million)
-Interim dividend per share 4.0 pence (2012: 4.0 pence)
-Operating cash flow before working capital $1.02 billion (2012:
$875 million), +16%
-Production, barrels of oil per day, or boepd, working interest
basis, 88,600 (2012: 77,400), +14%
-Capital expenditure on an accruals basis amounted to $804
million for the first half of 2013 (2012: $926 million) with 36%
invested in development activities, 14% in appraisal activities and
50% in exploration activities
-Balance sheet remains strong with net debt of $1.7 billion and
$1.7 billion headroom.
-13 exploration wells and 14 appraisal wells drilled to date in
2013 with a 63% overall success ratio.
-Basin-opening E&A success continues onshore Kenya;
following success at Etuko-1, Pmean resources are expected to be
well in excess of 300 million barrels of oil, or mmbo, exceeding
the threshold for development studies to start.
-Five campaigns including 20 exploration wells planned for 2H
2013 targeting multiple basins in Kenya, Ethiopia, Mozambique,
Mauritania and Tullow's first operated well in Norway.
-TEN Plan of Development, or PoD, approved by the Government of
Ghana; major contracts currently being awarded with First Oil
expected in mid-2016; farm-down process has been initiated for a
development carry.
-Shares closed Tuesday at 1027 pence valuing the company at 9.33
billion pounds.
-Write to Ian Walker at ian.walker@wsj.com