tullow report

Wednesday, 21st March 2007 07:47

Tullow Oil FY pretax up 47 pct; sees 85,000 boepd by yr-end

LONDON (AFX) - Tullow Oil PLC delivered a 47 pct growth in full-year pretax profits, thanks to strong oil and gas prices, and upgraded its production target for 2007.

Pretax profit for the year to end-Dec 2006 rose 47 pct to 263 mln stg from 178.6 mln, while net profit grew to 157 mln stg from 113 mln.

They were against consensus figures of 285 mln stg and 173 mln stg, respectively.

Revenue grew 30 pct to 578.8 mln stg after production increased 11 pct to 64,720 barrels of oil equivalent per day, in line with the figures it gave in a Jan 31 trading statement.

Tullow said it is currently pumping 76,000 boepd and is on course to produce 85,000 boepd by year-end, higher than its previous target of 80,000 boepd.

The group's reserve replacement ratio reached 89 pct, down from 118 pct in the previous year, while total reserves and resources at year-end rose by 149 mln barrels of oil equivalent to 506 mln boe.

At the Albertine Basin, Tullow said preliminary assessment showed the field has gross potential recoverable reserves of anywhere between 100 mln and 250 mln boe.

Aidan Heavey, the chief executive, called 2006 a 'remarkable' year for Tullow, boosting his optimism that 2007 will be equally 'positive and exciting.'

'Our strategy is clear, our business is growing and we are continuing to drive record performance throughout the business,' he said.

The group will be drilling over 40 exploration wells this year, including major drilllling campaigns in Uganda, Namibia and India, he added.

Underlying cash operating costs have fallen 20 pct in 2006 despite the significant cost presure within the energy industry, Tullow said.

The company is raising the final dividend by 17 pct to 3.50 pence a share, thus raising the total payout for 2006 to 5.5 pence per share, representing an increase of 38 pct over 2005.

It has completed the 595 mln stg acquisition of Australian energy group Hardman Resources in January.