• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, August 5, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Tullow Oil plc rating subject to review following proposed bond issuance- Moody’s

May 4, 2021
Stephen M.Cby Stephen M.C
in Finance, Extractives/Energy, Sub Top Stories, Sub Top Stories2
0
Jubilee

Two Tullow staff working on an oil vessel

Moody’s Investor Services has assigned B3 rating outlook to Tullow Oil plc’s proposed $1.8 billion bond issuance. However, the rating action is subject to a review for upgrade.

According to Moody’s, the consideration for review is based on the expectation that Tullow’s refinancing of outstanding debt repayments will lead to two essential outcomes: First, that the bond issuance will potentially reduce the existing debt on the company’s balance sheet; Also, that this action when successful will substantially improve the company’s liquidity profile.

Furthermore, Moody’s anticipates that the adjusted leverage will remain at 5x, but it will decline afterwards. Thus, this will be driven by expected growth in production, and mandatory debt and lease repayments.

RelatedPosts

BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut

COPEC Rejects Planned 20% Transport Fare Hike 

Lands Minister Urges Stronger Ties Between Large-Scale and Small-Scale Miners 

More so, Moody’s expects Tullow Oil plc’s production to decline to about 54 to 57 kboe/d due to the insufficient investments towards sustaining high production in the last couple of years.

Supposing average Brent price of $55/bbl and a unit operating cost of around $13.5/boe, Moody’s estimates that Tullow would record an adjusted EBITDA (i.e. Earnings before interest, taxes, depreciation and amortization ) of around $700 to $725 million in 2021.

Moody’s expects that Tullow would record a zero to marginally negative free cash flow generation this year. This is based on the substantial interest payments and huge investments in capital expenditure that Tullow has to satisfy.

Therefore, Moody’s anticipates that the restocking of Tullow Oil plc’s reserves will generate the financial resources needed to reduce the debts outstanding on the balance sheet. Also, this is in line with the net leverage target of 1x-2x, as provided by the company’s stated guidance, and to allocate dividends to shareholders. Albeit, Moody’s does not expect payment of dividends within the medium term.

Outlook faces some risks

These notwithstanding, Moody’s takes into consideration some operational risks regarding the drilling of oil wells. Moody’s position is that Tullow Oil plc is likely to face some difficulties as the company has experienced such up to 2019.

Even so, Tullow Oil plc upon announcing the refinancing of debts indicated that the successful execution of the bond sale is subject to the behaviour of general market conditions.

Other factors it mentioned included national or global events affecting the capital markets and the coronavirus pandemic. Also, unforeseen developments in the company’s business or industry or changes in laws governing the company’s ability to complete the transaction.

Nonetheless, Moody’s is upbeat about Tullow’s operational improvements seen in 2020 regarding water injection and gas offtake, as well as uptime. These, it says have jointly improved the company’s performance, notwithstanding the impact of the pandemic and OPEC+ oil cuts in Gabon.

According to Moody’s, the rating action reflects the recent changes made in Tullow’s management strategy, and the renewed emphasis on production efficiencies than riskier exploration and early stage developments.

Meanwhile, the rating agency further highlighted the high concentration of Tullow’s assets in Ghana. It also underscored the low cost nature of its reserves and the relatively short life of its 2Proven reserves of around 9.5 years.

According to Moody’s these are promoting the need to bring new resources to production to net out the declining rates of mature oil fields.

READ ALSO: COVID-19 has taught us to have up-to-date real-time data – Prof. Quartey

Tags: bond issuanceDebtMoody'soil productionrating actionTullow oil
Please login to join discussion
Previous Post

MIIF is on the path to achieving the objectives envisaged under the Act- Yaw Baah

Next Post

This country needs to move forward- John Dumelo laments

[mc4wp_form id="1264"]

Related Posts

EOCO Seizes Lamborghini From Shatta Wale in FBI-backed Asset Recovery Operation
Entertainment

EOCO Seizes Lamborghini From Shatta Wale in FBI-backed Asset Recovery Operation

August 5, 2025
BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut
Banking

BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut

August 5, 2025
Dr. Ransford Annetey Abbey, Chief Executive Officer of the Ghana Cocoa Board (COCOBOD)
Agribusiness

COCOBOD CEO Reveals Hidden Cocoa Contract Rollovers Worth Millions

August 5, 2025
Dr. Rashid Pelpuo, Commission, Public
General News

New FWSC Board Tasked to Lead Labour Peace, Wage Reform

August 5, 2025
Cocoa farmers shortchanged?
General News

Cocoa Farmers Shortchanged, Gov’t Criticised Over Pricing

August 5, 2025
Fuse ODG Focuses Beyond Afrobeats Recognition
Entertainment

Fuse ODG Focuses Beyond Afrobeats Recognition

August 5, 2025
EOCO Seizes Lamborghini From Shatta Wale in FBI-backed Asset Recovery Operation
Entertainment

EOCO Seizes Lamborghini From Shatta Wale in FBI-backed Asset Recovery Operation

by Esther Korantemaa OffeiAugust 5, 2025
BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut
Banking

BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut

by Stephen M.CAugust 5, 2025
Dr. Ransford Annetey Abbey, Chief Executive Officer of the Ghana Cocoa Board (COCOBOD)
Agribusiness

COCOBOD CEO Reveals Hidden Cocoa Contract Rollovers Worth Millions

by Evans Junior OwuAugust 5, 2025
Dr. Rashid Pelpuo, Commission, Public
General News

New FWSC Board Tasked to Lead Labour Peace, Wage Reform

by Silas Kafui AssemAugust 5, 2025
Cocoa farmers shortchanged?
General News

Cocoa Farmers Shortchanged, Gov’t Criticised Over Pricing

by Lilian AhedorAugust 5, 2025
Fuse ODG Focuses Beyond Afrobeats Recognition
Entertainment

Fuse ODG Focuses Beyond Afrobeats Recognition

by Esther Korantemaa OffeiAugust 5, 2025
EOCO Seizes Lamborghini From Shatta Wale in FBI-backed Asset Recovery Operation
BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut
Dr. Ransford Annetey Abbey, Chief Executive Officer of the Ghana Cocoa Board (COCOBOD)
Dr. Rashid Pelpuo, Commission, Public
Cocoa farmers shortchanged?
Fuse ODG Focuses Beyond Afrobeats Recognition
[/vc_row_inner]

Recent News

  • EOCO Seizes Lamborghini From Shatta Wale in FBI-backed Asset Recovery Operation
  • BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut
  • COCOBOD CEO Reveals Hidden Cocoa Contract Rollovers Worth Millions
  • New FWSC Board Tasked to Lead Labour Peace, Wage Reform
  • Cocoa Farmers Shortchanged, Gov’t Criticised Over Pricing
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.