Tullow’s revival still faces production challenges
Tullow Oil is to pay a dividend once more. But can it find the barrels to sustain its improving balance sheet?
Tullow Oil has maintained stronger cash flow, reduced its debt and now reinstated its dividend. But the bellwether African explorer faces challenges in securing fresh production from East Africa as it seeks to realise production growth ambitions. On 29 November, the company said it would pay dividends in 2019 for the first time since 2014. Tullow said it expected the ordinary dividend in any year would total no less than $100mn and that, in periods of "particularly strong free cash flow generation", the board would also consider making additional returns to shareholders. The move underscores an improved financial situation at Tullow, whose business was hit hard by falling revenues and limit
Also in this section
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them