Tullow to pay first dividend since 2014
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.
“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.