Pretax profit at Tullow Oil rose 47 per cent to £263 million from 178.6 million for the year to the end of December 2006.
The company said net profit grew to £157 million from £113 million.
Revenue grew 30 per cent to £578.8 million after production increased 11 per cent to 64,720 barrels of oil equivalent per day (boepd), in line with the figures it gave in a January trading statement.
Tullow said it is currently pumping 76,000 boepd and is on course to produce 85,000 boepd by year-end, higher than its previous target of 80,000 boepd.
The group's reserve replacement ratio reached 89 pct, down from 118 pct in the previous year, while total reserves and resources at year-end rose by 149 million barrels of oil equivalent to 506 million.
In the near term, Tullow plans to develop the Ugandan fields to supply the domestic market with a 4,000 barrel per day project due on stream in 2009
At the Albertine Basin, Tullow said preliminary assessment showed the field has gross potential recoverable reserves of anywhere between 100 million and 250 million.
Tullow chief executive Aidan Heavey said: "Our strategy is clear, our business is growing and we are continuing to drive record performance throughout the business".
The group will be drilling over 40 exploration wells this year, including major drilllling campaigns in Uganda, Namibia and India, he added.
Underlying cash operating costs have fallen 20 pct in 2006 despite the significant cost presure within the energy industry, Tullow said.
The company is raising the final dividend by 17 per cent to £3.50 pence a share, thus raising the total payout for 2006 to 5.5 pence per share, representing an increase of 38 per cent over 2005.
It has completed the £595 million acquisition of Australian energy group Hardman Resources in January.