SlideShare a Scribd company logo
Sector – Energy
Founded – 1985
Employees – 669
Headquarters – London, UK
Tullow Oil is a global oil and gas exploration company. They
have 85 licenses in 22 countries and focus on 4 regions; Africa,
Europe, South Asia and South America. They have discovered
new oil provinces in Ghana and Uganda and have become
Africa’s leading independent oil company.
Tullow Oil’s main competitors are Cairn Energy, ERHC
Energy and Murphy Oil Corporation. Their main customers
are from the transport and aviations industries.
2009 2008 2007
Total Revenue
(£m)
916 692 639
Operating
Income (£m)
151 300 189
Net Income after
Taxes (£m)
164 179 168
Total Debt (£m) 1,315 709 552
Earnings per
Share
0.032 0.309 0.071
Financial Overview
Tullow Oil has a debt-to-capital ratio of 29.97%. They
suffered difficulties in 2009, with net income after taxes
falling and total debt almost doubling. Earnings per share
also fell dramatically.
Share Price (last 12 months)
Current Share Price – 1182.00p
52 Week High – 1369.00p
52 Week Low – 991.50p
Future
The industry in which Tullow Oil operate is capital-intensive.
There are significant economies of scale in refinery operations,
and profitability depends on efficient operations and the best
mixture of products. If Tullow Oil can effectively exploit the
potential of the economies of scale with continued efficient
operations, they should be in a strong position to continue to
operate effectively in the future.
The future of the business is centred around its operations in
Africa. At the start of 2011, production will begin in the Jubilee
oilfield off Ghana’s coast, which is predicted to double Tullow
Oil’s production in Africa. There is also a promising
development in Uganda where lots of resources have been
found.

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Tullow oil

  • 1. Sector – Energy Founded – 1985 Employees – 669 Headquarters – London, UK Tullow Oil is a global oil and gas exploration company. They have 85 licenses in 22 countries and focus on 4 regions; Africa, Europe, South Asia and South America. They have discovered new oil provinces in Ghana and Uganda and have become Africa’s leading independent oil company. Tullow Oil’s main competitors are Cairn Energy, ERHC Energy and Murphy Oil Corporation. Their main customers are from the transport and aviations industries.
  • 2. 2009 2008 2007 Total Revenue (£m) 916 692 639 Operating Income (£m) 151 300 189 Net Income after Taxes (£m) 164 179 168 Total Debt (£m) 1,315 709 552 Earnings per Share 0.032 0.309 0.071 Financial Overview Tullow Oil has a debt-to-capital ratio of 29.97%. They suffered difficulties in 2009, with net income after taxes falling and total debt almost doubling. Earnings per share also fell dramatically.
  • 3. Share Price (last 12 months) Current Share Price – 1182.00p 52 Week High – 1369.00p 52 Week Low – 991.50p
  • 4. Future The industry in which Tullow Oil operate is capital-intensive. There are significant economies of scale in refinery operations, and profitability depends on efficient operations and the best mixture of products. If Tullow Oil can effectively exploit the potential of the economies of scale with continued efficient operations, they should be in a strong position to continue to operate effectively in the future. The future of the business is centred around its operations in Africa. At the start of 2011, production will begin in the Jubilee oilfield off Ghana’s coast, which is predicted to double Tullow Oil’s production in Africa. There is also a promising development in Uganda where lots of resources have been found.