Tullow Oil swings to profit on higher oil, gas prices

Tullow Oil gross annual profits almost doubled as the company cashed in on higher oil and gas prices sparked by the war in Ukraine.

Gross profit for 2022 almost doubled to $1.08bn, on a 40% rise in revenue to £1.78bn with group production in line with guidance. Post tax-profit came in at $49m from an $81m loss a year earlier.

Free cash flow rose to $267m from $245m and net debt fell to $1.9bn from $2.1bn.

The Africa-focused company said it planned to invest $400m this year, mainly on its flagship fields in Ghana, and expected free cash flow of $100m at an oil price of $80 a barrel, or twice that at $100 a barrel, in line with from previous guidance.

Tullow hedged 33,100 barrels per day (bpd) of this year's output and 11,300 bpd of 2024's production at between $55 and $75 a barrel. It expects to produce between 58,000 and 64,000 bpd this year, broadly in line with 2022.

Reporting by Frank Prenesti for Sharecast.com