Tullow Decides $33 Mln Interim Payout

By Shadia Nasralla
Thursday, July 25, 2019

The board of British oil producer Tullow will pay an interim dividend of 2.35 cents per share, representing a payout of about $33 million, the company said on Wednesday, in line with plans to disburse at least $100 million a year.

The dividend follows a first half in which Africa-focused Tullow doubled post-tax profit to $103 million, and a payout of around $67 million earlier in the year. The group had suspended payouts in 2015.

But due to problems at its "TEN" group of fields off the coast of Ghana, Tullow downgraded its 2019 output guidance to 90,000-94,000 barrels of oil equivalent per day (boed).

In April, Tullow had cut its guidance to 90,000-98,000 from 93,000-101,000 barrels per day, excluding around 1,000 boed in gas production.

This is likely to bring down Tullow's full-year free cash flow to around $400 million, $50 million below a previous forecast, Tullow's Chief Financial Officer Les Wood told Reuters.

Tullow shares were down around 2.4% at 203.3 pence by 0933 GMT, underperforming the broader oil and gas index.

After having flagged delays for its East African onshore oil projects, Tullow said it now targets a final investment decision for its Kenyan onshore oilfields in the second half of 2020.

In Uganda, a tax dispute has delayed the payment of more than $200 million to Tullow after it sold part of a project to Total.

Tullow reiterated that it was "considering all options in pursuing the sale of its interests in Uganda".

Tullow expects the first results from its drilling program off Guyana in the first half of next month.


(Reporting by Shadia Nasralla; Editing by Dale Hudson and David Goodman)

Categories: Finance Africa

Related Stories

PTTEP Acquires Southeast Asia’s Offshore Block from Chevron’s Hess Unit for $450M

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

EnQuest Acquires Harbour Energy’s Vietnamese Assets

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

Current News

PTTEP Acquires Southeast Asia’s Offshore Block from Chevron’s Hess Unit for $450M

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

China Rolls Out 17MW Floating Wind Turbine Prototype

SBM Offshore’s Jaguar FPSO Enters Drydock in Singapore (Video)

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

CNOOC Finds Oil and Gas in South China Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com