Tullow Oil given strong buy rating after reports indicate 60% upside

TULLOW OIL has been given a strong buy rating in advance of its results announcement yesterday

Dolmen analyst Stuart Draper believes Tullow will report profit before tax of £23m and earnings per share of 4p, year-on-year increases respectively of 44% and 54%.

Mr Draper, in a note to clients yesterday, said cash earnings of close to £100m are expected in 2003. Allowing for capital expenditure on exploration and development in 2003 of about £25m, he said this still leaves £75m in free cashflow, or about 20p per share for shareholders.