Tullow Oil reported a return to operating profit on Wednesday after two years of losses, thanks to a rise in oil prices and a boost in production that also lifted the company's cash pile.
The energy producer, whose main operations are in Africa, reported full-year operating profit of $22m, following a loss of $755m in 2016. Thanks to the rise in oil and gas prices seen in the second half of 2017, the company also generated free cash flow of $543m.
Other full-year highlights
- Total revenue rose to $1.723bn from $1.27bn in 2016
- Gross profit rose to $815m from $547m in 2016
- Net debt fell to $3.5bn from $4.8bn in 2016
- Sales volume of 82,200 barrels per day, up 37% on 2016
Paul McDade, chief executive (left), said: "I am pleased to report that Tullow made excellent progress in 2017 as demonstrated by our substantial free cash flow generation and significantly reduced gearing.
"As we continue to retain a keen focus on the financial discipline that has served us so well, we are now also looking to grow the value of our business both through exploration, following a full re-set of the portfolio, and through other opportunities that the recovery in the sector will present."
The company said that in 2018 it expected oil production to average between 82,000 and 90,000 barrels per day, while gas production was seen between 3,500 and 4,500 barrel equivalents.