‘Tullow delivered strong operational and financial performance in 2017’

Tullow Oil PLC said that it delivered a strong operational and financial performance in 2017, and that it expected to report revenue of $1.7 billion for the year. The company said it reduced annual net debt by $1.3 billion and also expected to report gross profit of $800 million for 2017.

Additionally, Tullow expects to report that it generated $500 million in free cash flow, significantly exceeding the forecast at the start of the year.

The company said production in West Africa surpassed yearly expectations, averaging 89,100 barrels of oil a day, while gas production in Europe averaged 5,600 barrels a day.

In 2018 Tullow expects overall group production guidance for both oil and gas to be between 86,000 and 95,000 barrels of oil a day, the company said.

The Chief Executive of Tullow, Paul Mcdade has remarked that Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility.

According to him, the business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency.

Mcdade in a statement said, “Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility. The business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency.

‘There was also material improvement in the Group’s balance sheet, with significantly reduced gearing and an overall reduction in net debt of $1.3 billion. Over 2018 we expect to continue this positive momentum. With our diverse low-cost assets and high-graded exploration portfolio, enhanced by recent licence additions in Côte d’Ivoire and Peru, we have a strong foundation to grow the business and further reduce our debt.”