Tullow Oil

2019 guidance achieved; reset of balance sheet

  • Sectors : Resource
  • Companies : Tullow Oil

Ratings and price correct at time of issue.

  • Tullow Oil

    Closing Price: 59.2p

  • RATING 15/01/20

  • PREVIOUS RATING 09/12/19



Tullow Oil’s final trading update for 2019 confirms guidance for 2019 and reiterates the outlook for 2020 – both of which are to be welcomed. At the same time, a reset of oil price expectations from $75/bl to $65/bl and an adjustment to TEN reserves are likely to result in a $1.5bn write-off. This reset of the balance sheet, allied to the business review underway, is targeted to set up a long-term sustainable platform for the business. Given the substantial share price adjustment and re-affirmation of the production profile, we are reinstating our ‘Outperform’ rating.

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Jan 15 2020, 08:25 GMT