Tullow Oil plc today reported, that in 2008, operating profit amounted to £299.7 million (2007: £189.0 million), an increase of 59%, principally due to the higher commodity prices realised during the period, while profits of £243.9 million in relation to portfolio management activities, were offset by exploration costs written off of £226.7 million. Profit before tax increased 330% from £53 million to £226 million. Sales revenue grew 8%.

Realised oil price after hedging for 2008 was US$73.6/bbl (2007: US$62.7/bbl), an increase of 17%.

On the outlook for 2009, Tullow said, that given the current economic climate, times are challenging times for the oil and gas sector but Tullow is well positioned following an outstanding year in 2008. For 2009, the company says it is focused on progressing Phase 1 of the Jubilee project in Ghana, fast tracking the commercialisation of Ugandan reserves and executing selective high-impact exploration and appraisal campaigns. Tullow says it is in a very strong position, from an operational and financial perspective, to deliver "these exciting and transformational projects as we move into our next phase of growth."

Th eboard has proposed a final dividend of 4.0 pence per share (2007: 4.0 pence per share). This brings the total payout in respect of 2008 to 6.0 pence per share (2007: 6.0 pence per share).

Commenting today, Aidan Heavey, Chief Executive, said: "We have had our best year ever in 2008, when unprecedented success with the drill bit was matched by material progress towards the development of two major new oil provinces. We have delivered record results and significantly increased our resource base. Looking ahead, Tullow has the right people and funding in place to continue to develop our world-class assets and deliver strong and sustainable returns for shareholders. We've made a strong start in 2009 and it promises to be an exciting and challenging year. Overall we're in excellent shape to deliver the Group's next phase of growth."

Results detail