Thursday’s final results for Tullow Oil PLC (LON:TLW) are likely to receive a fairly gloomy reception after the firm was booted out of the FTSE 250 index in the latest reshuffle.
The oiler’s demotion follows a hammering of its share price over the last six months as lower than expected production at its Ghanaian oil fields at the end of last year and a duster from the first well of its drilling campaign in Peru have combined to weigh heavily on the stock.
The low output from Ghana is particularly concerning for Tullow as it relies on production from those assets to pay down its large debt pile and fund further projects.
The figures are already predicted to show that Tullow’s share of production last year averaged 86,700 barrels per day, lower than its guidance in November, so instead the focus will shift towards whether it still expects US$150mln of free cash flow for the coming year.
The company could also face additional obstacles from lower oil prices and sluggish demand, both of which could be exacerbated by an economic slowdown caused by coronavirus.
Investors will also be keeping an eye out for commentary of heavy oil found in Guyana, which the firm thinks could be valuable.
Significant events expected on Thursday 12 March:
Trading announcement: C&C Group PLC (LON:CCR)
Finals: Marshalls PLC (LON:MSLH), Computacenter plc (LON:CCC), Savills PLC (LON:SVS), Tullow Oil PLC (LON:TLW), Keller Group PLC (LON:KLR), Arrow Global Group PLC (LON:ARW), Oakley Capital Investments Ltd (LON:OCI), Helios Towers PLC (LON:HTWS), Valeura Energy Inc (LON:VLU), Secure Income REIT PLC (LON:SIR), Bodycote PLC (LON:BOY),
Interims: Go-Ahead Group PLC (LON:GOG), Galliford Try Holdings PLC (LON:GFRD), Brooks Macdonald Group plc (LON:BRK)
FTSE 100 ex-dividends to knock 3.91 points off the index: Land Securities Group PLC (LON:LAND), Anglo American Plc (LON:AAL), CRH PLC (LON:CRH)
AGM: Benchmark Holdings PLC (LON:BMK)
Economic data: ECB interest rate decision, US jobless claims, US PPI