TUWLF (Tullow Oil) Operating Income : $868 Mil (TTM As of Jun. 2024)

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What is Tullow Oil Operating Income?

Tullow Oil's Operating Income for the six months ended in Jun. 2024 was $468 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $868 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tullow Oil's Operating Income for the six months ended in Jun. 2024 was $468 Mil. Tullow Oil's Revenue for the six months ended in Jun. 2024 was $759 Mil. Therefore, Tullow Oil's Operating Margin % for the quarter that ended in Jun. 2024 was 61.69%.

Good Sign:

Tullow Oil PLC operating margin is expanding. Margin expansion is usually a good sign.

Tullow Oil's 5-Year average Growth Rate for Operating Margin % was 3.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tullow Oil's annualized ROC % for the quarter that ended in Jun. 2024 was 11.76%. Tullow Oil's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 38.70%.

Tullow Oil Operating Income Historical Data

The historical data trend for Tullow Oil's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tullow Oil Operating Income Chart

Tullow Oil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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647.10

315.80

582.40

1,033.50

731.00

Tullow Oil Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Operating Income	Get a 7-Day Free Trial															610.00	423.50	330.90	400.10	468.10

Tullow Oil Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $868 Mil.

Tullow Oil (OTCPK:TUWLF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Tullow Oil's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	936.2 * ( 1 - 46.68% )	/	( (4082.8	+	4404.3)	/ 2 )
=	499.18184	/	4243.55
=	11.76 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4458.6	-	321.2	-	( 494.5	-	max(0, 1226	-	1280.6	+	494.5	))
=	4082.8

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4211.4	-	247.6	-	( 263.7	-	max(0, 1475.8	-	1035.3	+	263.7	))
=	4404.3

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Tullow Oil's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Jun. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1089.4	/	( ( (2819.8 + max(-652.3, 0))	+	(2810.7 + max(-409, 0)) )	/	2 )
=	1089.4	/	( ( 2819.8	+	2810.7 )	/	2 )
=	1089.4	/	2815.25
=	38.70 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(43.5	+	107.3	+	137.2)	-	(321.2	+	0	+	619.1)
=	-652.3

	Working Capital		(Q: Jun. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(91.6	+	178.1	+	61.2)	-	(247.6	+	0	+	492.3)
=	-409

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Tullow Oil's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	468.1	/	758.8
	=	61.69 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Tullow Oil Operating Income Related Terms

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Tullow Oil Business Description

Industry

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Traded in Other Exchanges

TUWOY:USA TLW:Ghana TLWl:UK TLW:UK TQW:Germany TQW:Germany

Address

566 Chiswick High Road, Building 9 Chiswick Park, London, GBR, W4 5XT

Website

https://www.tullowoil.com

Tullow Oil PLC is an independent oil and gas exploration and production company. The company conducts exploration, appraisal, and development activities in the African and Atlantic regions. The majority of revenue is derived from West African assets, with a focus on offshore fields. Assets used in oil and gas production are acquired through licenses. The company generates revenue from natural gas and crude oil sales. Its reportable segments are; Ghana which generates key revenue, Non-operated, Kenya and Exploration.