The oiler produced an average of 74,900 barrels of oil per day to generate US$1.4bn of revenue for the year, at a realised price of US$50.80 per barrel. Gross profit is anticipated at US$400mln for the year.
Net debt was cut to US$2.4bn, from US$2.8bn at the end of 2019. Tullow noted that it is in ongoing talks with its creditors regarding refinancing options.
Tullow said its full year results will include impairments and write-offs ‘broadly in line’ with the US$1.4bn reported in the first half of 2020.
Looking to 2021, the company has pitched 2021 production guidance at 60,000 to 66,000 bopd.
It forecasts the year’s capex at US$265mln plus US$100mln earmarked for decommissioning. Cashflow is forecast at US$500mln, based on US$50 per barrel oil.
"Despite the challenges that 2020 presented, Tullow delivered production in line with expectations, executed major reductions to its cost-base and reduced net debt through the Uganda asset sale.
“Tullow has a busy year ahead as we begin implementing the business plan that we laid out at our Capital Markets Day. The plan is focused on ensuring that Tullow's producing assets in West Africa reach their full potential.
“We will leverage the new plan and our reduced cost base to generate positive free cash flow at current commodity prices, drive down our net debt and deliver a robust balance sheet."
Elsewhere Royal Bank of Canada analyst Al Stanton, in a note, said: “Tullow does not publish surprises in its trading updates; however, management has reiterated its cautious view on 2021 production, so we expect output of 63,000 barrels per day to be increasingly reflected in (lowered) consensus estimates.”
“2021 is a year for management to refinance, so we expect its interactions with bondholders to eclipse much of 2021’s organic newsflow, including an upcoming commitment well offshore Suriname.”
In London, Tullow shares were down 1.66% changing hands at 30.72p.