Tullow Oil posts 51% jump in profits

Tullow Oil said its interim pretax profit jumped by 51 per cent and above analysts' expectations.

Tullow Oil said its interim pretax profit jumped by 51 per cent and above analysts' expectations.

The company said it plans to pay an interim dividend of 0.5 pence a share after not paying an interim dividend last year.

Pretax profit for the six months to June 30th surged to £22.6 million sterling from £15 million as turnover rose 16 per cent to £76.5 million. That was ahead of ABN Amro's forecast of a 38 per cent increase in pretax profit and a 13 per cent rise in revenue.

Tullow, which completed the acquisition of Energy Africa in May, said it is seeking further acquisitions within core areas. The integration of Energy Africa into Tullow's business is "well advanced", it added.

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At the end of June, the group's proven and probable reserves more than doubled to 171 million barrels of oil equivalent from 70 million previously.

The next review of reserves will be undertaken at year-end and will include a full assessment of all current appraisal and development projects.