Tullow Oil Share Discussion Threads

[the grumpy old men] 15/9/2021 10:04

TOP NEWS: Tullow returns to first-half profit, ups production outlook

Wed, 15th Sep 2021 09:46
Alliance News

(Alliance News) - Tullow Oil PLC on Wednesday raised its 2021 production guidance after swinging to a profit in the first half of the year, and announced the departure of its chief financial officer.

Shares were up 5.9% to 47.66 pence in London on Wednesday morning, making Tullow the top performer in the FTSE 250 index.

The West Africa-focused oil and gas producer made USD727 million in revenue in the period, down 0.5% year-on-year from USD731 million. Tullow made a pretax profit of USD213 million, after a loss of USD1.44 billion a year ago.

Production averaged 61,230 barrels of oil equivalent per day, down 21% from 77,700 boepd, following asset

sales in Equatorial Guinea and Gabon.

The firm raised full-year production guidance, to between 58,000 and 61,000 boepd. The previous forecast, issued on July 14, was for between 55,000 and 61,000 boepd, and the upgrade reflects an acceleration of production at the Simba field in Gabon and the deferral of a planned shutdown of the Jubilee field in Ghana, Tullow said.

But full-year capital expenditure is now expected to be USD260 million, up from the earlier USD250 million forecast.

The company will continue to not pay a dividend. It hasn't made a payout since 2019's 2.35 cents-per-share interim.

The results are "in line with guidance and our forecasts," Davy analyst Colin Grant said in a note.

The first half was "principally about executing the transformational refinancing of debt liabilities in the group. This has been achieved and there are now no debt maturities until 2025," he added.

Net debt was reduced to USD2.29 billion on June 30 from USD3.02 billion a year before.

But the architect of the refinancing, Chief Financial Officer Les Wood, has "mutually agreed with the board that he will step down," the company said. He will leave at the end of March 2022, while Tullow searches for a replacement.

"Following our comprehensive refinancing earlier this year, the culmination of a number of steps to strengthen the group, it is the right time for me to leave Tullow after five years as CFO," Wood said.

By Ivan Edwards; [e-mail]

[subsurface] 15/9/2021 10:00

Thanks for posting XX very interesting slides
shows the need to go after Jubilee North and South east when you see the produced v remaining on the core

Guyana seems to have low priority I thought we would have a plan in place.perhaps a farm down on the way.
With Les on the way out we have a new team so lets hope for the best.

[hades1] 15/9/2021 09:04

Tullow Oil back in the black in H1, boosts free cash flow and cuts debt
Wed, 15th Sep 2021 08:14
(Sharecast News) - Tullow Oil moved back into the black, boosted its free cash flow and significantly cut debt during the front half of its financial year.
Key to all of the above, the oil explorer refinanced its liabilities during the period, successfully issued $1.8bn of medium-term debt and clinched a new $500m revolving credit facility.

Group working interest production averaged 61,230 barrels per day, in line with expectations, for roughly steady sales over the six months to June of $727m.

Tullow also pocketed $133m from the sale of its permits in Equatorial Guinea and for Dussagy Marin.

Combined, the company managed to turn a profit after tax of $93m as opposed to the $1.33bn of red ink seen one year before.

In parallel, Tullow also turned free cash flow positive to the tune of $86m, against an outflow of $213m in the year earlier period.

The debt pile meanwhile reduced from $3.02bn to $2.3bn.

Net debt was cut to 2.6 times the company's earnings before interest, taxes, depreciation and amortisation from 3.0 times one year before.

Looking ahead, Tullow narrowed its full-year production guidance to 58,000-61,000 b/d, helped by the decision to defer the shutdown of its Jubilee field and higher production at Simba.

Capital investment and decomissioning spend was pegged at approximately $260m and $90m, respectively.

At $60 a barrel of oil for the remainder of the year, the company projected a full-year underlying operating cashflow of roughly $600m.

Free cash flow for the 12 months meanwhile was seen at about $100m, rising by $50m should the oil price average $70 a barrel over the second half.

That guidance also incorporated expectations that a $75m payment from Total would be triggered if a Final Investment Decision for the Lake Albert development in Uganda occurred before the end of 2021.

If not, then Tullow anticipated a $75m payment in 2022.

[billy_buffin] 15/9/2021 08:21

Always keep an eye on boepd! Where did that gas go.

[buywell3] 15/9/2021 08:10

free stock charts from uk.advfn.com

[xxnjr] 15/9/2021 08:09

Sounds like Kenya is inching forwards but Total/Tullow jointly need to reduce exposure b4 FID. Quite encouraging really subject to farming down. I guess ESG "the end of oil" means gov.KEN have less power to hold things up otherwise Kenya will become a stranded asset.

[waldron] 15/9/2021 08:04

Tullow oil PLC - 2021 Half Year Results

15 September 2021 - Tullow Oil (Tullow) announces its Half Year results for the six months ended 30 June 2021. Details of the presentation (virtual) and conference call are available on the last page of this announcement and online at www.tullowoil.com .

Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:

"Strong operational performance in the first half of the year and a transformational debt refinancing have put Tullow on a firm footing to deliver our Business Plan. Our West Africa production assets have performed well, and we are narrowing production guidance for 2021 to the upper end of the range. In Kenya, the revised development plan creates a robust project that has the potential to deliver material value to the Government of Kenya and other stakeholders. Through our operations, Tullow continues to deliver Shared Prosperity and to be an engine for economic and social change in the developing economies in which we work. Furthermore, by targeting Net Zero by 2030 and an emphasis on responsible operations, we are ensuring that the oil and gas resources of our host countries are developed efficiently and safely, whilst minimising our environmental impact."

2021 First half results summary

-- Group working interest production for the first half of 2021 averaged 61,230 boepd, in line with expectations.

-- Good operational progress in Ghana; FPSOs delivering over 98% uptime; sustained increased water injection and gas offtake rates; first new well in drilling programme, J56 producer, came on stream delivering production rates ahead of expectations.

-- Progress made on the delivery of Business Plan set out in November 2020, including target to become Net Zero by 2030.

-- Revenue of $727 million; gross profit of $321 million; profit after tax of $93 million; underlying operating cash flow of

$218 million and free cash flow of $86 million.

-- Continued focus on costs results in reduced administrative expenses of $23 million in 1H21, down c.50% year-on-year.

-- Capital investment of $101 million; decommissioning costs of $37 million. 1H21 operating costs averaged $12.9/bbl, a year-on-year increase primarily due to lower production and increased costs related to extended COVID-19 operating procedures.

-- Net debt at 30 June 2021 of c.$2.3 billion; Gearing of 2.6x net debt/EBITDAX; liquidity headroom and free cash of $0.7 billion.

-- Completion of comprehensive debt refinancing with $1.8 billion of five-year Senior Secured Notes issued and a new $500 million revolving credit facility.

-- Completion of Equatorial Guinea and Dussafu Marin permit sales in March and June respectively, receiving $133 million.

[buywell3] 15/9/2021 08:03

free stock charts from uk.advfn.com

[buywell3] 15/9/2021 07:59

With OIL losing popularity

Can't see that huge Net Debt ever coming down enough

[subsurface] 15/9/2021 00:14

East Africa's energy future shines bright - investors are watching.

[janhar] 14/9/2021 10:20

I'd be surprised if it wasn't a target as there's been very little investment in Exploration by the majors since the ESG mob rejected the sector and Covid wiped out demand. Global oil consumption will continue to rise until a viable alternative is discovered and that won't be for some time to come.

[badger36] 14/9/2021 10:09

All the speculation that CNOC would buy Tullow when it was in the teens may now resurface given the destruction of market cap but still the presence in and off the coast of Africa China needs oil irrespective of the greens

[grupo] 14/9/2021 09:49

Oil Glut That Covid Built All But Gone on Resurgent Demand

Bloomberg News, Bloomberg News



(Bloomberg) -- Global crude inventories that ballooned during the pandemic have shrunk to the lowest level in 20 months as an economic rebound in top consumers China and the U.S. drive a robust recovery in fuel demand.

About 2.97 billion barrels of crude oil were stored onshore globally as of Sept. 5, the least since January 2020 before Covid-19 eviscerated demand, according to data analytics firm Kayrros. U.S. stockpiles are at a two-year low, those in China are the smallest since September 2020, while inventories at the African hub of Saldanha Bay are at the lowest since April last year.

Oil consumption in the world’s top guzzlers has surpassed pre-pandemic levels and underpinned a red-hot rally in crude prices, although it’s faltered over the last couple of months due to the delta variant of the virus. China’s depleted inventories also have some in the market predicting that the biggest crude importer will start replenishing its giant reserves again soon.

“There was really a surge in crude oil demand, especially in the first half of this year,” said Victor Shum, vice president of energy consulting at IHS Markit. However, he predicted that the draw-down of inventories will slow as OPEC+ pumps more, and that demand surges are “probably turning a corner.”

Global inventories swelled in July last year to the highest level since Kayrros started compiling its data in May 2016. Since then, there’s been a steady drop across most regions. Onshore storage in Europe and the Middle East are about 28-to-35 million barrels lower than a year earlier, according to Kayrros.


U.S. stockpiles may decline even further if production halted by Hurricane Ida resumes slower than the return of refining capacity, said Sri Paravaikkarasu, head of Asia oil at FGE. The Category 4 storm swept through the Gulf of Mexico and crashed into the coast two weeks ago.

Higher crude prices have also encouraged refiners to tap more stored oil, while a bullish backwardation structure has made it uneconomical for traders to hoard crude. China recently took the unprecedented step of offering crude reserves to domestic processors to try and cool prices.

The Asian giant’s crude stockpiles were at about 966 million barrels on Sept. 5, the lowest since September 2020, although still around 100 million barrels above pre-pandemic levels, according to Kayrros. Another satellite tracker, Ursa Space Systems, which uses a slightly different methodology, estimates inventories are near the smallest since June 2020.

Chinese inventories were mostly depleted by domestic and international traders who had supplied local independent refiners, according to Sengyick Tee, an analyst at Beijing-based SIA Energy. The private refiners, known as teapots, account for about a quarter of China’s oil-processing capacity.

“China will have to buy crude soon,” analysts Amrita Sen and Yuntao Liu at Energy Aspects Ltd. wrote in a Sept. 9 note. “This is playing out now.”

(Add analyst comment in penultimate paragraph.)

[grupo] 14/9/2021 09:34

Upcoming events

2021 Half Year Results 15 Sep 2021

[grupo] 14/9/2021 09:34

ig.com uk


When will Tullow Oil report its next results?


Tullow Oil (LSE: TLW), the UK-listed multinational oil and gas exploration company is set to report its latest set of interim results on 15 September 2021.


For shareholders, 2021 has been a constructive year, with the Tullow Oil share price rising 45.95% since January 1.

This comes as oil prices have rebounded firmly over the last nine months – with both Brent and WTI, at the time of writing, trading confidently above the US$70 per barrel mark. That’s a stark contrast to 2020, which saw oil turn negative for the first time in its history.

Despite trading well off the low set in March 2020, at Tullow's last traded price of 42.02p per share, the stock remains well off its 5-year high.

The analyst outlook

Despite investors piling into the stock in 2021, the sell-side remains mixed on Tullow, with the stock commanding a consensus price target of 34.50p per share, according to MarketBeat, implying downside potential from current levels. That view is made up of 2 Hold ratings and 2 Sell ratings.

Sell-side coverage has dried up on Tullow over the last year: one year ago the stock, while still commanding a Hold rating, boasted a consensus made up of 4 Buy recommendations, 9 Hold recommendations, and 2 Sell recommendations. The consensus price target also stood at a more bullish 58.36p.


Trade Tullow and over 16,000 international shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading shares with us, or open an account to get started today.

*Based on revenue excluding FX (published financial statements, June 2020)
July trading statement revisited

While the oil and gas exploration company is yet to release its official interim results, a trading statement released on 14 July by the company provides colour to how those results may play out.

For one, the company provided 1H FY21 oil production figures, noting that total oil production averaged 61.2 thousand barrels of oil per day, during the first-half of fiscal 2021. The company also provided updated full-year, FY21 oil production guidance, saying it expected to produce between 55-61 thousand barrels of oil per day.

Commenting on that trading statement – Tullow CEO – Rahul Dhir, said:

‘I am pleased to report that Tullow has made excellent operational and financial progress in the first half of 2021. Our producing fields in West Africa are performing well and we have successfully started our drilling programme in Ghana.’

‘Tullow now has a strong financial footing and we are making very good progress in delivering on our highly cash generative business plan and continuing to reduce our debt,’ Mr Dhir continued.

Elsewhere, management said they expected H1 revenue to come in at ~US$700 million, while H1 operating cashflow was guided to come in at ~US$200 million.

The company also provided some other key full-year guidance revisions as part of that July release, which included the following highlights:

Full-year CAPEX is expected to come in at US$250 million, lower than previously guided

Full-year operating cashflow is expected to reach ~US$600 million, assuming oil prices remain at US$60 per barrel across the rest of FY21

Full-year cash financing costs are expected to hit US$290 million

[waldron] 14/9/2021 07:41

European markets set for tepid open as investors await U.S. inflation data

Published Tue, Sep 14 202112:57 AM EDT

Elliot Smith
@ElliotSmithCNBC


Key Points

U.S. consumer price index readings for August are due at 1:30 p.m. London time, and are expected to show inflation stateside continuing to run hot.

European Central Bank policymaker Isabel Schnabel said on Monday that the ECB is ready to act if inflation does not ease as soon as next year, as currently expected.

LONDON — European markets are heading for a muted open on Tuesday as global investors await inflation data from the U.S., which could inform the Federal Reserve’s timing for tapering its monetary stimulus.

Britain’s FTSE 100 is seen around 4 points higher at 7,072, Germany’s DAX is expected to add around 34 points to 15,735 and France’s CAC 40 is set to climb around 10 points to 6,687, according to IG data.

[thommie] 13/9/2021 20:19

looks like shorts are closing now before results after they drove down the share price sucessful to 40p. lets see if the usual traders stop a stable upwards trend after a hopefully good update on wednesday.I hope they publish their plans for further development and something positive about kenya. but I fear kenya wont be solved soon...

[fizzmiss] 13/9/2021 16:00

They are mocking me. I need to find a thicker tin foil.

Let me try something.....

I did not really sell; I bought more!


Wow, it fell back a little; the Mysterons are sure watching me and mocking, mocking everything I say.