Irish-listed oil and gas producer Tullow Oil reported an after-tax loss for 2021 of $81 million (€74 million), due to exploration, impairment and restructuring costs.
As a result, he narrowed Tullow’s after-tax losses to 1.2 billion euros in 2020.
The company turned a profit in the first half of last year after what it called “strong” business.
But full-year revenue of $1.273 billion fell in 2020, partly due to losses from oil price hedging, while gross profit was $634 million, up from $403 million earned in 2020. .
Basic operating cash flow is $711 million, with free cash flow of $245 million.
Capital is $263 million and decommissioning costs are $69 million.
The oil and gas group has interests in more than 40 exploration and production licenses across 11 countries.
Last year, the company turned its attention to its interests in Ghana, saying it was also looking for partners in Kenya and exploring a well in Gabon.
For 2022, the Group said it expects to produce 55,000 to 61,000 barrels of oil equivalent per day, based on existing equity interests in Ghana’s TEN and Jubilee fields.
That forecast could be revised upwards by about 5,000 barrels as Tullow successfully “pre-sold” a US bid for fields in Ghana.
Tullow also expects to reach an agreement to commercialize gas in Ghana this year.
Tullow uses hedging to protect it from commodity price fluctuations and ensure cash flow.
The Group’s actual oil prices after hedging in 2021 are $62.7 per barrel and $70.3 per barrel after hedging, both rising in 2020. But the hedging loss has reduced total revenue by $153 million last year, the group said, after adding more than $200 million to 2020 revenue.
Tullow predicts a base full-year operating cash flow guidance of about $750 million and a full-year free cash flow guidance of $100 million.
Year-to-date cash flow has been “positively impacted by oil prices at the start of the year” despite a one-time $76 million payment to HiTec Vision to purchase Spring Energy in 2013.
In February, Tullow received a final $75 million payment from France’s Total after selling a development in Uganda in 2020.
In 2022, it expects capital expenditures of $350 million, mainly due to exploration activity in Ghana. Outage costs are expected to be around $100 million.
https://www.independent.ie/business/irish/tullow-oil-losses-narrow-in-2021-revenue-down-41426839.html Tullow Oil narrows losses in 2021, revenue falls