Tul­low to pay first div­i­dend since 2014

The Irish Times - Business - - BUSINESS / NEWS -

Oil and gas group Tul­low Oil said yes­ter­day it would re­in­state its div­i­dend for the first time since 2014 in a sign of on­go­ing recovery after years of fi­nan­cial pain.

The FTSE 250 company, which has fo­cused on cut­ting costs and re­duc­ing debt in re­cent years, will pay an an­nual div­i­dend of at least $100 mil­lion from 2019 for a yield of around 3 per cent.

“Tul­low has made ex­cel­lent op­er­a­tional and fi­nan­cial progress over the past 18 months,” said Paul McDade, Tul­low chief ex­ec­u­tive.

“Hav­ing reached our tar­get of be­ing a bal­anced self-fund­ing ex­plo­ration and pro­duc­tion busi­ness and hav­ing em­bed­ded cost dis­ci­pline across the group, this is the right time to re­in­state a div­i­dend and fo­cus on our plans for growth,” he added.

The company was hit hard by the oil price crash in 2014 and built up heavy debts as it was forced to press ahead with cap­i­tal­in­ten­sive projects that were given the go-ahead before prices plum­meted.

It re­turned to profit this year for the first time in three years and said it would re­sume fron­tier ex­plo­ration.

Shares in Tul­low fin­ished up at 185.5p by close of trad­ing. – The Fi­nan­cial Times Lim­ited Bayer, the Ger­man phar­ma­ceu­ti­cals and chem­i­cals group, has an­nounced plans to cut 12,000 out of 118,200 jobs world­wide, in a bid to re­duce costs and re­gain in­vestor favour fol­low­ing a string of le­gal set­backs re­lated to its Mon­santo ac­qui­si­tion this year.

The mea­sures in­clude a plan to exit the mar­ket for animal health prod­ucts, as well as its Cop­per­tone sun care and Dr Scholl’s foot care product lines. Bayer also plans to sell the group’s 60 per cent stake in ser­vice provider Cur­renta.

Mon­santo

“In­clud­ing the syn­er­gies ex­pected from the ac­qui­si­tion of Mon­santo, Bayer an­tic­i­pates an­nual con­tri­bu­tions of €2.6 bil­lion from 2022 on, as a re­sult of its planned ef­fi­ciency and struc­tural mea­sures,” the group said in a state­ment.

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