North Sea to boost Tullow's profits

Irish exploration company Tullow Oil said substantial increases in turnover and profits can be expected in 2001 as major investments…

Irish exploration company Tullow Oil said substantial increases in turnover and profits can be expected in 2001 as major investments made by the company in recent years come to fruition.

The company added that the £201 million sterling purchase of BP Amoco's southern North Sea assets has given it the critical mass and cash flow for further growth.

Tullow said the purchase did not impact on production revenues for 2000 but will be a significant contributor to revenue and profitability in the current year.

The combination of strong resource prices and a full year of production in Pakistan resulted in a 50 per cent increase in turnover to euro 12.5 million in the year to December 2000 and a 125 per cent increase in its operating profitability before exploration costs to euro 2.1 million.

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The company reported a net profit of euro 1.3 million, against a loss of euro 19.3 million the previous year.