British multinational Tullow Oil Plc has seen a dramatic dip in its profit before tax for fiscal year 2023, dropping to $96 million from the previous year's $442 million.
Notably, after tax, Tullow reported a loss of $109.6 million which shows a stark contrast to the prior year's profit of $49.1 million. Consequently, there was a per-share loss of 7.6 cents as opposed to the profit of 3.3 cents noted in the year prior.
These latest figures take into account impairments and write-offs that have surged up to $435 million, a striking increase from the last year's $391 million.
Adjusted EBITDAX also followed a downwards trajectory falling to $1.15 billion from $1.47 billion in the preceding year. Similarly, revenue took a turn for the worse dipping to $1.63 billion compared to the prior year's figure of $1.78 billion which can be partially attributed to a roughly 12 percent decrease in the oil price realised post-hedge.
However, there was some positive news amidst the unfortunate numbers as the group's working interest oil and gas production rose to 62.7 kboepd from 61.1 kboepd in the previous year.
Looking forward, Tullow Oil echoes its fiscal 2024 outlook presented in late January. The company expects group working interest production to average between 62 to 68 kboepd, of which roughly 7 kboepd will be of gas.
Additionally, Tullow has shed light on a shift in its business strategy with the announcement of its sale and exit of its business in Guyana. This move aligns with its plan to streamline its portfolio towards high-return assets located exclusively in Africa.
