AUS
NZ
UK
CA
USA
IND
Tullow Oil Plc in its final results for the 31st December 2019, has highlighted the disappointing period, driven by oil market woes, as the company reported a pre-tax profit of US $1.7 Billion. There were few other factors to this downfall as well, as a few months before the results, the company had cut down its forecast for the production and announced that it would not be declaring any dividend for the period. These developments were followed by the Chief Executive of the company as well as the Director of Exploration, leaving from their respective positions.
After the announcement of results, the company lost a third of its market capitalisation on the London stock exchange market, which has led to some shareholders to doubt the companyâs ability to continue to operate further, especially given the global economic and oil market scenario.
Additionally, there have been reports from last some time, suggesting that a host of people, working on the companyâs projects are expected to lose jobs in Kenya, Uganda and Ghana. This was due to a cost restructuring strategy, as reports have suggested that the company is planning to slash its expenses by around US $20 million in 2020, primarily due to lower production output in Ghana, as well as poor and disappointing results on exploration in Guyana. It was reported that the company was planning to cut down its total administration costs from a previously reported US $100 million to a figure of US $80 million, which would likely affect 650 people working in the above mentioned three regions. It was also reported that consultation processes from the companyâs end had already begun.
Tullow Oil Plc
Tullow Oil Plc (LON:TLW) is the UK based Oil and gas producer, that around 80 oil and gas exploration and production projects spread across 15 countries, especially in various parts of Africa and South America. The company has around 28 producing fields and employs approximately 990 people in all these locations.
Tullow Oil Plc Financial Highlights
The company, on 12th March 2020, declared a production update as well as its final results for the period ended 31st December 2019. It was reported that the companyâs working interest production averaged at 86,800 barrels of oil equivalent per day (BOEPD). The company also reported a capital investment worth US $490 million to have been made during the period. The revenue for the period declined to US $1.683 billion during the period, while there was also a significant decline in the gross profit for FY 19 which was reported to be at US $759 million. The company reported a Loss after tax of US$1.694 billion, a significant decline in the profit performance, as compared to the profit that was declared in FY 2018 at US $85 million.
As an outlook for the year 2020, the company reported that it is expecting the production to be in line with current expectation at 70,000 to 80,000 BOPD.
TLW Stock Price Performance
(Source: Thomson Reuters) Daily Chart as on 13-March-20, before the closing of the LSE Market
As on 13th March 2020, at 02:00 P.M (Greenwich Mean Time), by the time of writing this report, the Tullow Oil Plc stock was trading at a price of GBX 11.99 on the London Stock Exchange market, a decline in the value of 3.77 per cent or GBX 0.47, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 12.46. As of the time of reporting, the market capitalisation of Tullow Oil Plc has been reported to be at a value of GBP 175.42 million, with respect to the current trading price of the companyâs stock.
The Tullow Oil Plc stock had given a negative return of around 94.76 per cent in value, in the previous one year, since March 13, 2019, when the stock was trading at a price of GBX 228.90 at the time of the close of the market. It was also reported that the companyâs stock had given a negative return of around 94.61 per cent, in the last six months, in comparison with the stock price of GBX 222.30 at the time of the close of the market as on September 13, 2019. Tullow Oil Plcâs stock has been reported to have given a negative return of approximately 72.91 per cent, in the last one month time from the stock price of GBX 44.26 that the stock set as on February 13, 2020.
The beta of the stock of the company was reported to be at 2.35. This points to the fact that the stock price movement of the companyâs stock, is more sensitive, in comparison with the movement in the price of the comparative benchmark index.
As the company falters, it is also important to look at how the stocks of the peer group company have performed. Following is a long- and short-term comparative stock price performance of three main competitors of the company.
Genel Energy Plc (LON:GENL) Stock Price Performance
As on 13th March 2020, at 02:05 P.M (Greenwich Mean Time), by the time of writing this report, the Genel Energy Plc stock was trading at a price of GBX 82.40 on the London Stock Exchange market, an increase in the value of 0.49 per cent or GBX 0.40, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 82.00. As of the time of reporting, the market capitalisation of Genel Energy Plc has been reported to be at a value of GBP 227.69 million, with respect to the current trading price of the companyâs stock.
The Genel Energy Plc stock had given a negative return of around 62.11 per cent in value, in the previous one year, since March 13, 2019, when the stock was trading at a price of GBX 217.50 at the time of the close of the market. The beta of the stock of the company was reported to be at 2.47 when this report was being written.
Premier Oil Plc (LON:PMO) Stock Price Performance
As on 13th March 2020, at 02:10 P.M (Greenwich Mean Time), by the time of writing this report, the Premier Oil Plc stock was trading at a price of GBX 18.94 on the London Stock Exchange market, an increase in the value of 50.02 per cent or GBX 6.32, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 12.62. As of the time of reporting, the market capitalisation of Premier Oil Plc has been reported to be at a value of GBP 106.03 million, with respect to the current trading price of the companyâs stock.
The Premier Oil Plc stock had given a negative return of around 77.15 per cent in value, in the previous one year, since March 13, 2019, when the stock was trading at a price of GBX 82.90 at the time of the close of the market. The beta of the stock of the company was reported to be at 3.60 when this report was being written.
EnQuest Plc (LON:ENQ) Stock Price Performance
As on 13th March 2020, at 02:15 P.M (Greenwich Mean Time), by the time of writing this report, the EnQuest Plc stock was trading at a price of GBX 10.69 on the London Stock Exchange market, an increase in the value of 13.66 per cent or GBX 1.28, in comparison with the price of the stock on the previous trading day, which had been reported to be at GBX 9.40. As of the time of reporting, the market capitalisation of EnQuest Plc has been reported to be at a value of GBP 159.49 million, with respect to the current trading price of the companyâs stock.
The EnQuest Plc stock had given a negative return of around 34.01 per cent in value, in the previous one year, since March 13, 2019, when the stock was trading at a price of GBX 16.20 at the time of the close of the market. The beta of the stock of the company was reported to be at 2.31 when this report was being written.
A comparative stock price performance of GENL, PMO and ENQ
(Source: Thomson Reuters) Daily Chart as on 13-March-20, before the closing of the LSE Market
