Shares in Tullow Oil were down on the FTSE 100 in afternoon trading despite the energy company more than quadrupling its pre-tax profits in the full year ended 31 December 2010.
Revenue in the period increased 19 per cent to $1.1 billion, while pre-tax profit surged 361 per cent to $152 million. Profit after tax rose 137 per cent to $73 million.
Tullow Oil said that the level of its production during the year had been broadly flat at 58,100 barrels of oil per day. However average oil prices increased 30 per cent to $78 per barrel.
Despite the rise in its profits the group said that it would be holding its final dividend at 4.0 pence per share.
Aidan Heavey, Chief Executive of Tullow Oil, said, "With First Oil in Ghana and an excellent exploration and appraisal success rate, 2010 was undoubtedly a transformational year for Tullow. This contrasted with slower progress on our agreed farm-down in Uganda. However, good progress has recently been made towards gaining Government approval and establishing a strong fiscal and legal framework for the successful development of the basin. 2011 has started very well with production increasing from Jubilee and continued exploration and appraisal success. With a diverse 40-well E&A campaign planned for 2011, we look forward to another year of significant progress."
By 13:20 shares in Tullow Oil were down 2.12 pence per share on the FTSE 100 to 1,429.00 pence per share.