9th Mar 2022 10:35
(Alliance News) - West Africa-focused oil and gas producer Tullow Oil PLC on Wednesday said it swung to annual profit, though revenue fell on declining volumes.
Tullow shares were 9.0% lower at 56.62 pence each in London on Wednesday morning.
On the up, however, were realised oil prices, climbing to USD62.7 a barrel in 2021, from USD50.9 barrel in 2020. Geopolitical tensions have lifted oil prices further in 2022, suggesting Tullow's realised prices could see another bump this year.
In 2021, Tullow's revenue fell 8.8% to USD1.27 billion from USD1.40 billion. The company swung to a pretax profit of USD203 million, from a USD1.27 billion loss.
The profit swing was aided by exploration write-offs being almost completely wiped out to USD60 million, from USD987 million in 2020. The net hit from impairments of property, plant and equipment fell to USD54 million from USD251 million, meanwhile.
Despite the 23% rise in realised oil prices, Tullow's revenue fell. Sales volumes decreased by roughly a quarter to 55,450 barrels of oil equivalent per day.
Working interest production volumes fell 21% to 59,200 boepd.
For 2022, the output forecast remains at 55,000 to 61,000, as low as a 7.1% fall but as much as a 3.0% rise.
"Tullow expects to secure a gas commercialisation agreement in Ghana which will come into effect once all foundation gas volumes have been delivered; this is forecast to occur before year-end," it added.
Tullow will re-enter London's FTSE 250 index later this month, following an index review. It was booted out of the mid-cap index back in September.
By Eric Cunha; [email protected]
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