Investors breathed a sigh of relief after the group’s struggles in recent years.
Tullow Oil goes into the black for the first time in five years
- Announcement of forthcoming dividend is welcome news for investors.
- Group’s focus in emerging markets continues to be hampered by delays.
- Shares rose by over 2% on the news and we continue to maintain our high-risk ‘buy’ recommendation for investors seeking growth.
The full year results saw the group move to a profit of $84.8 million, its first net profit for five years. Overall revenue was slightly below expectations at $1.86 billion but pleasingly for investors the promise of a dividend has been honoured with a final dividend of 4.8 cents.
The group has struggled in recent years as a result of lower oil prices, delays at key projects and high levels of debt. Tullow’s focus remains in Africa with production in Ghana and projects in Uganda and Kenya. However as is often the case in emerging markets projects can be delayed for various reasons.
Investors with long memories will be hoping that the group can return to exciting oil discoveries and will be keeping their fingers crossed regarding new oil finds in 2019, especially relating to its move across the Atlantic to Guyana, where drilling is planned for the second quarter.
The shares rose by 2.2% in early morning trading reflecting on the work the company has been doing in recent years to build a stronger foundation for the years ahead. We continue to recommend the shares as ‘buy’ for investors seeking growth but with a higher appetite for risk.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.