Tullow Oil plc (LON:TLW) issued full-year results for the twelve months to December 31, confirming US$1.9bn of sales revenue and US$411mln of cash flow.
The oiler marked a gross profit of US$1.1bn, while the net figure was reported at US$85mln as debt reduction was prioritised. It ended the year with a debt balance of US$3.1bn, leaving some US$1bn of remaining headroom.
It had US$179.8mln of cash equivalents at the end of December.
READ: Tullow Oil eyes growth this year
Looking at the current year, the company highlighted that it is targeting gross production of 180,000 barrels of oil per day.
Net production from West Africa assets amounted to 88,200 bopd in 2018, in 2019 it is forecasted to grow to 93,000 to 101,000 bopd.
At the same time Tullow is aiming to reach final investment decisions for key growth projects in East Africa, and, it is set to start a high impact exploration programme offshore Guyana in March.
"Tullow has worked hard over the past few years to become a self-funding, cash-generating business with a robust balance sheet, low-cost assets and a rigorous focus on cost and capital discipline,” said Paul McDade, Tullow chief executive.
“This has allowed us to set a clear capital returns policy which will start with the 2018 final dividend announced today.
“Our high-margin producing assets in West Africa, substantial development assets in East Africa and exploration licences in industry hotspots provide Tullow with a strong foundation for growth in the years ahead."
The Uganda field development is anticipated by ‘mid-2018’ while the call will be made on the Kenya discoveries before the year’s end.
“Things are looking up at Tullow,” said Laith Khalaf, Hargreaves Lansdown analyst.
“Just two years after a rights issue was needed to shore up the balance sheet, Tullow is back in the black and management are confident the group can pay a dividend and still shift the debt.
“With production set to rise, operating costs dropping to just $10 per barrel and an agreement reached over tax obligations in Uganda, it’s easy to see where that confidence comes from.”
Tullow shares rose 10.4p or 4.93% trading at 221.4p
-- Updated to add broker commentary and share price detail