Tullow cites lower oil prices as FY profits, revenue decline

In the year to the end of December 2023, adjusted EBITDAX - which expands EBITDA by excluding exploration costs - fell to $1.15m from $1.47m a year earlier, while revenue declined to $1.63m from $1.78m.

This was driven by a fall of around 12% in the realised post-hedge oil price to $77.5 a barrel from $88.0 a year earlier.

Chief executive Rahul Dhir said: "2023 was a year of significant achievements, including start-up of Jubilee South East that delivered material production growth from our core operated field, a new revenue stream established from the sale of Ghana associated gas; and reserves growth in Gabon through licence extensions.

"We also generated free cash flow ahead of expectations despite a lower year-on-year realised oil price and demonstrated our ability to access long-term capital through the $400m debt facility agreement with Glencore.

"In line with our strategy, we are continuing to focus relentlessly on operational excellence, capital efficiency and investments to drive growth. This strategy is delivering material cashflow generation and we are on track to deliver our target of circa $800m free cash flow over the 2023 to 2025 period and optimise our capital structure.

"Tullow has a strong and unique foundation to create material value for our investors, host nations and stakeholders and we look to the future with confidence."