Tullow sees pre-tax profits slump 93%

Tullow has reported a 93% drop in pre-tax profits in line with market expectations for the year ending December 2009.

The oil exploration company has said its pre-tax profits for the year fell to Stg£20m, down from Stg£299m, and are .

Revenues for the year decreased by 16% from £692m to £582m while its operating profit slumped 68% to £95m from £300m.

Aidan Heavey, Tullow's CEO, said: "A strong performance in 2009 and an excellent start to 2010 has enabled the group to continue to create material exploration and development opportunities.

"Although our 2009 reported results still reflect a period of financial transition, first oil in Ghana from the Jubilee field later this year will result in considerable production growth and increased cash flow.

"Our transformational exploration programme continues apace with up to 30 wells planned for 2010.

"In Uganda we are working closely with the government and two potential new partners to accelerate development. Our future growth is well underpinned by a significantly strengthened capital structure and overall the performance prospects for the Group are very strong.”