Tullow Oil's African interests boosted revenues over the past year, but lower-than-expected realised prices disappointed the market.
Tullow's full-year results show revenue grew 75 per cent to £225 million, operating profits were £65 million, and cash flow was £153 million. Earnings per share were 6.2p.
Tullow completed the acquisition of exploration firm Energy Africa for $570 million in May last year. Had Energy Africa's assets been included for the full year, turnover for 2004 would have been in the order of £310 million, Tullow said.
Despite the rally in oil prices commercial discounts on West African crudes appear to have dented revenues, analysts said.
Tullow signalled that major investment will be undertaken in new exploration projects and has set aside a budget of £40 million to drill 15 exploration wells bringing total development expenditure to £100 million.
During 2005 Tullow will conduct exploration in the North Sea, Gabon, Congo, Equatorial Guinea, Cote d'Ivoire, Namibia and Pakistan.
As a result of its stronger cashflow the company increased its dividend 75 per cent from 1p to 1.75p.