Tullow Looks at No Deal Brexit Implications

Tullow, which employs a number of EU nationals in the UK, has stated in its latest results statement that its board is concerned about the uncertainty that a No Deal Brexit would cause these “much-valued members of staff”.

In its results statement, Tullow also said its board recognizes that a No Deal Brexit could cause “significant” regulatory, legal and financial uncertainty with regard to Tullow’s decommissioning program in the UK North Sea.

“Operators would have to be carefully guided by the Department for Business, Energy and Industrial Strategy as to exactly how decommissioning programs should be executed and what tariffs or fees, if any, should be applied to non-UK service providers,” Tullow stated.

In the results statement, published on Tullow’s website on Wednesday, the company revealed that its board believes Tullow’s business, assets and operations will not be “materially” affected by Brexit.

Tullow reported revenue of $1.9 billion and an operating profit of $528 million for 2018. This compared to revenue of $1.7 billion and operating profit of $22 million in 2017. The company’s profit after tax for 2018 was $85 million. In 2017, Tullow reported a loss of $175 million after tax.