Tullow Oil full-year results: where next for the share price?
The UK-based oil and gas company continues to see its share price fall in 2020, with it forced to cut costs after suffering a decline in revenues from its operations Ghana.
Tullow Oil continues to see its share price slide further in 2020, with the stock down more than 25% year-to-date, closing at 44p on Thursday.
The stock’s downward trajectory is being driven by further job cuts announced across its operations in east Africa, particularly in Kenya and Uganda.
The weakness of its balance sheet has forced Tullow Oil to cut back on its operations in the region, leading investors to question the possibility of oil production and exploration.
Tullow Oil has seen a steep decline in revenues from its Ghana operations due to operational delays and reports of poor oil quality at its Guyana site, which have put the company under greater financial strain.
As it stands, Tullow Oil has around £2.16 billion of debt on its balance sheet, brought about by the last crash in oil prices back in 2016 when Brent crude futures sunk to under $30 a barrel.
Looking to trade Tullow Oil? Open a live or demo account with IG today.
Barclays Capital downgrades Tullow Oil
Analysts at Barclays Capital took a dim view of the stock in January, downgrading its rating to ‘equal weight and slashing its price target to 75p a share.
Based on Tullow Oil trading at 44p, analysts from Barclays Capital believe the stock has a potential upside of 70%.
Analysts will likely rethink their outlook for the stock in February, considering Tullow Oil has seen its share price lose more than a quarter of its value since the start of the year.
You can go long or short Tullow Oil with IG using derivatives like CFDs and spread bets.
Total dismisses takeover rumours
Due to the challenges the company faces, rumours have begun circulating that Tullow Oil could become a takeover target for Total.
Total’s CEO Patrick Pouyanne, however, was quick to dismiss the speculation, telling Reuters: ‘Stop dreaming… No’.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
