The discoverer of oil in Turkana, Kenya, Tullow Oil Company, is projecting at Sh80 billion ($800 million) in gross profit for 2017.
In a statement, the British oil and gas explorer also expects to generate a revenue of $1.7 billion this year (2018).
“Tullow delivered strong financial and operational performance in 2017 against the backdrop of continued industry volatility.
The business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on capital and cost efficiency,” said Paul Mcdade the Chief Executive of the company.
The Chief executive noted that there was a significant reduction in the net debt adding that the company was aiming at further reducing the debt.
“There was also a material improvement in the Group’s balance sheet, with significantly reduced gearing and an overall reduction in net debt of $1.3 billion. Over 2018 we expect to continue this positive momentum,” he said.
“With our diverse low-cost assets and high-graded exploration portfolio, enhanced by recent license additions in Peru and Côte d’Ivoire, we have a strong foundation to grow the business and further reduce our debt,” he added.
The oil company stated that as of year-end 2017 it had a ‘total headroom including free cash of $1.0billion with no material near-term debt maturities.’
In the statement, the Group’s 2018 capital expenditure associated with operating activities is expected to total approximately Sh 46 billion ($460million).
“The capex total comprises Ghana capex of $250 million, West Africa non-operated capex of $40 million, Kenya pre-development expenditure of $80 million and Exploration and Appraisal spend of $90million,” read the statement in part.