Tullow Oil swings to profit on higher oil, gas prices

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