Analysis of Tullow Oil share price

To start speculating on the Tullow Oil share price, you must know the company and its direct economic environment well as well as the elements that will influence the evolution of its share price. This article is aimed at revealing all the information you’ll need to develop your investment strategies as well as advice for your fundamental analysis of this stock. For example, you'll find details on the activities of the company and its main sources of income, a complete presentation of its competitors in the market and its recent partnerships.  

--- Advertisement ---
Start trading in shares!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Elements that can influence the price of this asset:

Analysis N°1

You should follow the evolution of energy needs in the world and over time with the growth of certain industries in particular along with the use of other types of energy.

Analysis N°2

The fossil fuel market is also to be watched with the evolution of the price of a barrel of oil and gas which will influence the profitability of this group.

Analysis N°3

The development of Tullow Oil's activities in certain segments and certain geographic sectors such as Africa are all growth opportunities to follow.

Analysis N°4

The price of the EUR / USD parity should be followed in the same way which will have an influence on the profitability of this company.

Analysis N°5

Geopolitical unrest, especially in the Middle East, often has a lot of effect on the oil market so this kind of news should therefore be follow carefully.

Analysis N°6

Finally, you should also follow the evolution of refining activities in Europe which tend to decrease over time and may weigh on the profits of this group.

--- Advertisement ---
Start trading in shares!
76.4% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of Tullow Oil:

Learn a little more about Tullow Oil. By learning what the main activities and segments that generate income for this company are, you'll have an easier time understanding its future challenges and its possibilities for growth and development.

Tullow Oil is a British company specializing in the oil and gas sector. More specifically, the company specializes in the exploration, production and sale of oil and gas.

To better understand the activities of the group, it's possible to distribute them by geographic sector according to the turnover share generated like this:

  • The African market represents the major part of the Tullow Oil group's sources of income with 97.5% of the turnover of this company. Activities are carried out in Cameroon, Congo, Ivory Coast, Egypt, Guinea, Gabon, Mauritania, Marco, Namibia, Kenya, Ethiopia, Senegal and Uganda. The group's production in this sector was 88,200 barrels of oil per day in 2018.
  • Europe, Asia and Latin America represent the remaining 2.5% of the company's turnover with activities carried out in the United Kingdom, including the exploitation of onshore and offshore deposits, the storage of gas or oil well drilling in the Netherlands, Guyana, Pakistan and Bangladesh. The company's 2018 production for this sector was 1,800 barrels of oil per day.

 

Knowing Tullow Oil shares competition:

After having discovered complete and detailed activities of the Tullow Oil Company, check out its main competitors in the market. Here are in fact the largest oil and gas companies in the world that directly compete with this British company.

  • Total: this French company is one of the largest oil companies in the world. It's active in the upstream and downstream of the oil life cycle with international operations. Recently, the group has also diversified into the renewable energies field.
  • BP: This British company is one of the oldest in this sector. Over time, it has made many acquisitions of other companies around the world, including the United States.
  • Kuwait Petroleum Corporation: This national Kuwaiti oil company has managed to develop its business without making any acquisitions. It is one of the Persian Gulf companies that form the basis of OPEC.
  • Royal Dutch Shell: This Anglo-Dutch company is also one of the most important private companies in this sector worldwide. Recently, the group acquired BG Group which is a major exporter of liquefied natural gas. Shell is also known as an innovative company with very strong presence in the world.
  • Exxon Mobil: This Company is an American oil company based in Texas and the largest privately held company in this sector in terms of daily production. It was born from the acquisition of Mobil by Exxon in 1999, which gave birth to the largest oil company in the world. The group now operates on all continents in the oil and gas field.
  • Petrochina: This Chinese oil and gas company is a subsidiary of the national group China National Petroleum Corporation or CNPC.
  • China Petroleum Corporation: It is the second largest Chinese national oil company after Sinopec.
  • Sinopec: Also known as China Petroleum and Chemical Corporation, this national Chinese company has bought out several of its competitors over time. It also specializes in refined products including fuels.
  • Saudi Aramco: This Saudi oil company is arguably the largest oil producer in the world today in terms of the number of barrels. It particularly has a very strong influence on the market. The company was born from the partnership between the country and the American company Aramco. But the Saudi government bought the company after the Yom Kippur war in 1973.

 

The strategic alliances set up by the Tullow Oil group:

After having toured the main competitors of Tullow Oil in its sector of activity, take a closer look at its strategic allies. We are going to talk about some concrete examples of partnerships implemented by the group.

  • Total SA: In 2018, the Total group joined forces with Tullow Oil aimed at buying all of its shares in the Lake Albert development project in Uganda and in the East African Crude Oil Pipeline project (EACOP). The amount of the transaction was represented by a first payment of $ 500 million from the Total group to Tullow when the agreement was signed, then another payment of $ 75 million when the two partners finally decided to the project investment for a total amount of $ 575 million. The French group has acquired all of the 33.3334% currently held by Tullow in each of the EA1, EA1A, EA2 and EA3A licenses of the Lac Albert project as well as in the EACOP project.
  • OMV: Earlier in 2014, it was with the oil and gas giant OMV which was in full expansion strategy in sub-Saharan Africa that the Tullow Oil group signed an agreement concerning an onshore exploration program in Madagascar. It made it possible for the Australian oil company to pass a crucial stage in the extension of its license area of more than 14,000 km2 in Madagascar. OMV acquired a 35% interest in block 3109 from Mandabe and 3111 from Berenty, while Tullow Oil retained the 65% operator interest there.

 

Pros/cons

In order to better understand how the Tullow Oil share can evolve over the long term, it's important to understand the major strengths and weaknesses of this company. This is what we suggest you do with you here.

Regarding the advantages of this share and therefore the strengths available to the Tullow Oil group, the following elements should be noted in particular:

  • First of all, Tullow Oil is a growing company that can quickly gain growth and expand.
  • The diversification of the activities of this group, particularly in offshore exploration and natural gas, should also ensure stable income in the future.
  • Another benefit that you need to consider is the current restructuring of the refining industry in Europe as it could allow Tullow Oil to gain new customers.

Of course, the company doesn't just have strengths but weaknesses too, which you can find here in more detail.

  • Firstly, it's a shame that most of the group's activities are carried out in Africa as this leads to strong dependence on this market and a risk in the face of possible geopolitical crises.
  • Finally, the group remains in competition with real giants and by major oil companies that we presented above. The latter have more technological means and higher cash flows which allow them to develop faster.

Comparing these strengths and weaknesses will give you some insight into how the Tullow Oil stock may be viewed by investors and therefore its most likely long-term fund trends.

Frequently Asked Questions

When was the Tullow Oil Company established?

The Tullow Oil Company was established in 1985 in Ireland by Aidan Heavy as a gas exploration company in Senegal. Its first listing on the London stock market took place in 1987. The company has grown quickly particularly recently through the acquisition of Hardman Resources in January 2007 and a capital increase of $ 565 million in 2009.

Where can you follow Tullow Oil news and results?

If you want to carry out a decent Tullow Oil share price analysis, you are going to need reliable, up-to-date data about the company. To obtain this information, you can go directly to the company website, in the investors section. You'll find the group's financial results as well as important news from an economic point of view.

--- Advertisement ---
Start trading in shares!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.