As Tullow Oil reports full year results Helal Miah, investment research analyst at The Share Centre, believes the company has future growth potential for investors.
Tullow Oil’s full year performance was in line with expectations; revenues were up 2%, while full year earnings per share fell 5% to 68.8 US cents. Although the figures were not entirely inspiring, the company should be valued on its future potential and investors will be pleased to see the company once again focus on exploration to generate growth.
Tullow Oil has a strong track record for finding oil and in 2012 Exploration and Appraisals had a 74% success rate. Going forward the company aims to concentrate on higher margin, low cost per barrel light oil, with production guidance for 2013 in the region of 86,000 to 92,000 barrels of oil equivalent per day.
We continue to recommend Tullow Oil as a ‘buy’ for investors willing to take on higher levels of risk. Past production issues have been resolved and we believe the company is capable of continuing to deliver good results as it focuses on its exploration led business in higher prospective regions.