Tullow Oil PLC on Tuesday said profit multiplied in 2024, despite lower revenue, as a write-off of exploration costs in the recent year was smaller than an impairment of property, plant and equipment in 2023.
Tullow reported pretax profit of $321.5 million in 2024, up from $95.9 million in 2023. Revenue declined to $1.53 billion from $1.63 billion due to lower sales volume and a lower realised oil price.
Group working interest oil and gas production averaged 61,200 barrels of oil equivalent per day in 2024, down from 62,700 in 2023. This is expected to fall further to 50,000 to 55,000 boepd in 2025, the company said.
Tullow took a $213 million write-off of exploration costs in its 2024 accounts, compared to just $27 million the year before. However, it also recorded an impairment reversal of $12 million, compared to an impairment of $408 million in 2023.
The write-off of exploration costs was primarily for assets in Kenya, at $145 million, but also reflected write-offs of assets in Argentina and Ivory Coast.
Tullow currently is an oil and gas producer in Ghana, Gabon and Ivory Coast, but it said on Monday it has agreed to sell all of its assets in Gabon to Gabon Oil Co for $300 million in cash.
Tullow says the sale of Tullow Oil Gabon SA, which holds 100% of its working interests in the West Africa nation, will reduce its net debt to $1.15 billion from $1.45 billion at the end of 2024, which in turn was down from $1.61 billion a year before.
‘In 2024 we had a number of successes but also some operational challenges, most notably with Jubilee production and a reserves revision,’ said Richard Miller, chief financial officer and interim chief executive officer.
‘However there is now strong momentum within the business with a return to drilling at Jubilee, and the commencement of production optimisation and reserves maturation activities in Ghana.’
Miller replaced Rahul Dhir as CEO as back in February, as Tullow looks for a permanent CEO.
Jubilee is a producing field offshore Ghana. Back in November, Tullow lowered production guidance for Jubilee. On Tuesday, it said it has addressed the decline at Jubilee, including upgrading the power supply to the floating production, storage, and offloading vessel and taking measures to improve water injection reliability.
Tullow shares were up 8.1% to 15.13 pence on Tuesday morning in London. They are down 52% over the past 12 months.
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