Tullow Oil PLC on Wednesday said it expected its revenue in 2022 to grow from 2021 on the back of higher oil prices.

The Africa and South America-focused oil and gas exploration company said it anticipates 2022 revenue of $1.7 billion, up 34% from $1.27 billion in 2021. Tullow expects an average post-hedging realised oil price of $87 per barrel, up from around $75 in 2021.

The company guides a 2023 production of 58,000 to 64,000 barrels of oil equivalent per day, compared to 61,100 in 2022. It expects year-end debt to narrow to $1.9 billion from $2.1 billion a year prior. Tullow Oil expects an underlying operating cash flow of around $900 million, up 27% from $711 million in 2021.

Tullow Oil highlighted that in December, it signed a letter of intent for a nature-based carbon offset project in Ghana, which it anticipates to support output growth. It anticipates a final investment decision for the project with the Ghana Forestry Commission in 2023.

The company will release its 2022 results on March 8.

Tullow Oil shares were 3.5% higher at 37.64 pence each on Wednesday morning in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.