Tullow Oil plans to reinstate dividends in 2019
Company expects to pay out at least $100m after dividends were suspended following 2015 oil price crash
London — Africa-focused Tullow Oil will return to paying dividends, which it suspended in 2015 due to the oil price crash, and expects to pay out at least $100m from 2019 with an option for a special dividend for this year, it said. Tullow forecast its net debt would drop to $2.8bn by the end of 2018 and slightly raised its full-year free cash flow to $700m earlier in November, helped by trimming its capital expenditure. Tullow has about 1.39-billion outstanding shares, according to Refinitiv Eikon data, implying a dividend of at least about 7c per share. “Having reached our target of being a balanced self-funding exploration and production business and having embedded cost discipline across the group, this is the right time to reinstate a dividend and focus on our plans for growth,” CEO Paul McDade said on Thursday. The dividend will be paid on a semiannual basis based on the free cash flow Tullow makes while keeping debt and investment in mind, it said, adding the board will look ...
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