Tullow Oil may have delivered record revenue and earnings in the first half, but that was no more than the market has come to expect from the frontier oil explorer, and is why its shares continue to command a premium rating.
IC TIP:
Hold
at
1323p
Africa-focused Tullow Oil - a serial over-performer with four new oil basin discoveries in five years - continues to grow its production profile while spending heavily on frontier exploration. Net oil production in the first half rose 3 per cent over the prior year period to 77,400 barrels of oil equivalent per day (boepd), as the remediation program on the company's key Jubilee field offshore Ghana gathered pace. Accordingly, the company estimates it will have a net exit rate of 90,000 boepd at the year-end.