Record results and delivery
Tullow has delivered record results for 2008, driven by a strong operational performance, higher oil and gas pricing compared with 2007 and profitable portfolio management.
Sales revenue (£ million)
Higher commodity prices during the year, partly offset by marginally lower sales volumes, resulted in an 8% increase in sales revenue in 2008.
Operating profit (£ million)
Operating profit increased 59%, principally due to higher commodity prices and profits of £244 million in relation to asset disposals, offset by £227 million exploration costs written-off.
Profit after tax (£ million)
A gain on hedging instruments of £43 million compared with a loss of £29 million in 2007 and a lower effective 2008 tax rate are the principal reasons for a 330% increase in profit after tax.
Operating cash flow (£ million)
Tullow generated record cash flows in 2008, 9% ahead of 2007. This facilitated £460 million investment in exploration and development activities, dividend payments, servicing of debt facilities and a £60 million reduction in net debt.
Basic earnings per share (pence)
Basic earnings per share increased 335% in 2008. This represents a strong recovery in earnings after a sharp decline in 2007 and reflects the Group’s strong results for the year.
Dividend per share (pence)
Due to the Group’s requirement for major capital investment in 2009 and given the current economic uncertainty, the Board feels that it is prudent to maintain the dividend at the 2007 level.
