Tullow Oil's figures soar, but production forecasts cut

24th Aug 2011 07:43

Africa-focused oil giant Tullow Oil reported a huge surge in sales and profits in the six months ended 30 June, helped by increased production from the Jubilee field off Ghana and higher commodity prices.The strong results enabled the firm to double its interim dividend from 2p per share to 4p per share.However, the group's forecasts for full-year average oil production were scaled back due to rig delays at Jubilee."We have delivered a strong performance and achieved record results in the first half allowing us to double the dividend. We continue to make good progress with production plans in both Ghana and Uganda and while delays to the farm-down to CNOOC and Total have been frustrating, we now expect completion in September," said chief executive Aidan Heavey.Sales revenue in the first half jumped 119% from $486m to $1,062m, driven by a 35% increase in production, from 55,800 barrels of oil equivalents per day (boepd) to 75,100.However, despite Tullow expecting Jubilee production in Ghana to increase to 105,000 barrels of oil per day (bopd) in October - rising to plateau production of 120,000 bopd before the year-end - the group's full-year average production guidance was cut from 90,000-94,000 bopd to 82,000-84,000 bopd.Meanwhile, pre-tax profit soared 312% from $131m to $540m, while basic earnings per share rose to 35 cents, from just 9.4 cents the year before."The outlook for the remainder of 2011 and the coming years is positive for Tullow. Production ramp up from the Ghana Jubilee field will continue in the second half of 2011, together with further appraisal and development activities," the statement said.BC