Tullow Oil PLC said on Wednesday it expects 2020 gross profit of around $ 400 million, with its oil production on target, but warned of a drop in production in 2021.
The London-listed energy company said revenue in 2020 is expected to be around $ 1.4 billion, with production averaging 74,900 barrels of oil per day with an realized price of $ 50.8 per barrel.
For 2021, Tullow predicts production will drop to 60,000-66,000 barrels per day due to the drilling break in 2020, a planned shutdown at Jubilee, and delayed development drilling in Simba, Gabon.
The company expects to achieve an underlying cash flow from operations of approximately $ 500 million and projected capital expenditures of $ 265 million and decommissioning costs of $ 100 million.
“We will take advantage of the new plan and our reduced cost base to generate positive free cash flow at current commodity prices, reduce our net debt and present a strong balance sheet,” said Managing Director Rahul Dhir.
By the end of 2020, net debt had been reduced from $ 2.8 billion to $ 2.4 billion thanks to $ 430 million in free cash flow.
Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT