14 March 2012, Sweetcrude, ACCRA – Tullow Oil of the United Kingdom says its profits rose in 2011 as revenue hit a record high on the back of increased output and higher oil and gas prices.
It achieved a net profit of $689 million for the year, a massive increase on the $90 million profit booked the previous year.
The rise in profits came as sales revenue surged to a record high of $2.3 billion, up 111% on the $1.1 billion generated in 2010.
The company said its production also rose 35% during the year, from an average of 58,100 barrels of oil equivalent per day in 2010, to an average of 78,200 boepd in 2011.
It attributed the rise in output majorly to the ramp-up of production from the Jubilee field off Ghana where gross output averaged 66,000 barrels of oil per day.
Helping boost revenues was a 38% spike in the average realised oil price to $108 per barrel and a 36% rise in average realised gas prices to 57 pence ($0.90) per therm.
Following the impressive financial results Tullow’s board has proposed a final dividend of eight pence per share for 2011, compared to a four pence final dividend paid out in 2010.
According to Tullow, dividend would be paid on 24 May to shareholders on the register as on 20 April.
“Tullow now has a very strong balance sheet and increased cash flow, which gives us real financial flexibility and a firm foundation for further growth,” Tullow chief executive Aidan Heavey said.
