Tullow Oil Swung to Net Profit in 2018

By Oliver Griffin

Tullow Oil PLC (TLW.LN) swung to a net profit in 2018 after booking lower impairment costs while sales revenue was pushed up by higher hydrocarbon prices, and recommended a final dividend for the year.

The U.K. oil-and-gas company recorded a profit of $84.8 million for the year ended Dec. 31 compared with a loss of $176.3 million in 2017.

Sales revenue for the year rose 7.9% to $1.86 billion, Tullow Oil said. On a pretax basis, the company recorded a profit of $260.5 million compared with a loss of $285.9 million in the prior year.

Tullow Oil said it had booked a net impairment charge of $18 million related to 2018 compared with a net impairment of $539 million previously.

Free cash flow fell 24% to $411 million in 2018, the company said.

In November last year, Tullow Oil pledged to reinstate its dividend in 2019. The company said it was recommending a final dividend of 4.8 cents a share for 2018.

Looking ahead, Tullow Oil said it expects overall net production in 2019 to be in the range of 94,000-102,000 barrels of oil equivalent a day.

Write to Oliver Griffin at [e-mail]; @OliGGriffin

(END) Dow Jones Newswires

February 13, 2019 02:58 ET (07:58 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.