How to Buy Tullow Oil Shares UK
Based in the United Kingdom, Tullow Oil is an independent oil and gas exploration and production (E&P) company that was established in 1985. Tullow Oil is listed on the London Stock Exchange and is a FTSE 250 constituent. The company has interests in 44 exploration and production licences spanning 11 countries.
With this in mind, let’s cover everything you need to know to in order to Purchase Tullow Oil shares in the UK.
How to Purchase Tullow Oil Shares UK
If you’re looking to invest in shares, then users should do so with a popular stock brokerage. After picking a suitable brokerage that meets your investing requirements, here is how to begin trading.
- Open Your Account – Head over to your platform’s website and begin the account set-up process. Next, enter a valid email address and select a username and password.
- Verify your Account – To verify your account simply upload proof of identity (a copy of your passport or driving license) and proof of address (a copy of a bank statement or utility bill).
- Deposit funds – Deposit fiat currency using bank/debit cards or any other payment method your provider supports.
- Purchase Tullow Oil Shares – Search for the name or ticker symbol of the company you’d like to invest in enter the amount you wish to enter and confirm your transaction.
Step 1: Review a Stock Broker
The first step to stock trading is to open an account with a stock broker. The reputable brokers act as intermediaries between the financial markets and traders, pairing buyers and sellers together. As such, you must choose a regulated broker that is suited to your trading needs.
With that in mind, this section focuses on a handful of the available brokers to purchase shares in the UK.
Launched in 2008, Plus500 is a global CFD broker that’s fully regulated by the UK’s Financial Conduct Authority. In 2013 Plus500 Ltd went public in the AIM section of the LSE (London Stock Exchange), and consequently became a constituent of the FTSE 250 index of leading mid-cap listed companies.
Fees and Commissions
Most of Plus500’s services come free of charge, this includes zero deposit fees, no commission per side when you open and close positions. The bulk of the fees that you’re most likely to encounter are built into the market spread. Plus500 currently offers a vast portfolio of over 2,000 financial instruments.
Funding your Plus500 trading account is seamless as users can deposit funds using a variety of payment methods from bank transfers and credit cards, to debit cards and e-wallets. E-wallet and debit/credit card payments are processed instantly.
The minimum deposit is $100 for debit/credit cards and e-wallets and $300 for bank transfers. The minimum withdrawal amount via PayPal is $50 and $100 for bank transfers and debit/credit cards. Withdrawals often take three business days and there are no deposit or withdrawal fees.
|CFD Commission Fee||0% commission as fees are built into the spreads|
|Overnight Funding Fee||Varies depending on the asset|
|Currency Conversion Fee||0.7%|
|Inactivity Fee||$10 per month after 3 months|
|Guaranteed Stop Order||Trades that use this order type are subject to wider spreads|
|Minimum deposit||$100 for debit cards, credit cards, and e-wallets. $300 for bank transfers.|
72% of retail investor accounts lose money when trading CFDs with this provider.
3. Fineco Bank
Fineco Bank is an Italian bank, established in 1999. In terms of regulations, it’s authorized by the Bank of Italy and is subject to partial regulations from the UK’s Financial Conduct Authority and the Prudential Regulation Authority. Fineco holds a banking licence, is listed on the Italian stock exchange, and is one of the companies making up the STOXX Europe 600 index.
Fees and Commissions
Fineco Bank has competitive fees when it comes to buying and selling stocks and ETFs. It also does not charge withdrawal or inactivity fees. But, its forex fees and overnight financing rates are slightly above average. For UK-based traders, there is a fixed commission of £2.95 per trade when you purchase and sell stocks listed on UK markets, and £3.95 per trade when you invest in US-listed stocks.
Fineco Bank offers a wide range of account base currencies with zero deposit fees. However, the payment options are rather limited as credit and debit cards and electronic wallets are not supported. This means that the only payment method you may use to deposit funds is a bank transfer.
Fineco also offers its proprietary mobile trading app that’s available for Android and Apple devices.
|UK-listed stocks & ETFs||£2.95 per trade|
|US-listed stocks & ETFs||£3.95 per trade|
|GBP Margin Rate||8.0%|
65.11% of retail investor accounts lose money due to CFD trading with FinecoBank.
Broker Price Comparison
Let’s take a look at how each of these popular brokers do when pinned against each other in a convenient comparison table.
|Broker||Commission||Account Fee||Deposit Fee|
|Fineco Bank||£2.95 for UK-listed stocks||None||None|
Step 2: Research Tullow Oil Shares
Before investing in Tullow Oil shares, users should review the company on past performance, fundamental and technical research to see whether the company has strong earnings per share, P/E ratios, and is likely to sustain its market uptrend.
With this in mind, let’s cover the ins and outs of this UK-based oil and gas company.
What is Tullow Oil?
Listed on the London Stock Exchange (LSE: TLW), Tullow Oil is an oil and gas explorer and producer that operates in South America and Africa.
Tullow Oil has 44 licenses that span across 11 countries in Africa and South America. The company’s production assets are in West Africa, with offshore production from Ghana, and Cote d’Ivoire. Tullow has conducted material discoveries in East Africa and has progressed its project in Kenya towards development.
This well-established oil explorer and producer is focused on producing low-cost oil and gas in an environmentally friendly manner. The company’s key activities include creating material value for host countries, generating local business opportunities, and maintaining investor confidence and interest. Tullow Oil shares are listed on the London, Irish, and Ghana Stock Exchanges.
Tullow Oil Share Price
The current market price of Tullow Oil shares is 44.28 GBP giving it a market cap of £654.04M. On May 18th, 2018 Tullow Oil stock was trading at a peak of 276.00 GBX, and then on March 13th, 2020, TLW’s share price hit a low of 10.92 GBX. This represents a drop of -96.0435% in the space of two years.
Despite the turmoil caused by the coronavirus pandemic, Tullow Oil shares have performed well recently. From 2019 to 2020 the company’s sales revenue has dropped by -17.64%, and its bopd production has fallen by -13.6%. Tullow ended last year with a mean production rate of 74,900 bopd and a free cash flow of c. $430 million.
Against the Covid-19 backdrop and its influence on the price of oil, market volatility, and consumer confidence, Tullow Oil has managed to cushion the impact of the global pandemic by ending 2020 with a positive free cash flow.
Tullow Oil Shares Dividends
Tullow Oil’s most recent dividend payout was in August 2019.
|Dividend type||Cash dividend|
|Ex-dividend||29 August 2019|
Tullow Oil’s total dividend yield, which is its annual dividend payments divided by its market cap, was 8.78% in 2019, which gave it a 0.0562 GBP dividend per share. Since then it has suspended its dividend payouts for the foreseeable future.
Are Tullow Oil Shares a Valuable Stock to Invest in?
On January 4th, 2021 Tullow Oil shares were priced at 28.79 GBX, this indicates a YTD increase of 53.35%. However, over the past five years, the company’s shares are still down by 77.81%.
In the final quarter of 2019, the oil and gas producer shook the market as it reduced its guidance for the next three years. On July 14th, 2021 Tullow lowered its guidance even further to a range of 55,000 and 61,000 bopd (barrels of oil per day).
After that, the Tullow Oil market price dropped again and it’s taken investors up and down since. Before investing in this stock, it is important to conduct your own prior research.
The recent July update also indicates a positive cash flow trend. Tullow Oil is predicting a free cash flow of $600 million for this fiscal year. This forecast is based on an average resistance level of $60 per barrel for 2021. The markets are seeing prices higher than that, with the current price of Brent crude oil $69.79 up by 0.98% from the previous close of $69.03. According to Tullow, if the price of oil can maintain a level above 70 USD per barrel it could increase its operating cash flow by $50 million.
On the flip side, the company has a net year-end debt of £1.65 billion. To put that into context, when compared to its market capitalisation, the company’s debt equates to 25,129.36% of its entire value.
Step 3: Open an Account & Invest in Tullow Oil Shares
If you want to purchase Tullow Oil shares in the UK, users should use a popular brokerage. A reputable broker will provide low trading fees and multiple tools & features that will help you in your investment process.
After selecting a suitable brokerage, here is how users can start investing in Tullow Oil and other shares.
Step 1: Account Creation
Head over to your brokerage’s website and begin the account creation process. Enter your name, phone number, and email address, and choose a username and password for your new brokerage account.
Step 2: Verify your Account
The verification process is quick to complete on most popular brokerages in the UK. Upload your photo ID, which can be either a passport copy or driver’s license. Also, users may be required to give a proof of address document, which can be a bank statement or utility bill.
Step 3: Deposit Funds
The most reputable brokers may only charge a minimum deposit of $10 to get started. When it comes to payment methods, brokerages will provide a range of options from credit cards and debit cards, to e-wallets and bank transfers.
Step 4: Search for Tullow Oil Shares
After your account has been successfully verified and funded, you may go ahead and start investing. For example, simply type the name of the company or the ticker symbol of the stock you want to invest in. Insert the amount and confirm your transaction.
Tullow Oil Shares or Sell?
On July 14th 2021, issued an update to its guidance ahead of the Group’s 2021 YTD results, which are set for publication in mid-September 2021. The company’s CEO, Rahul Dhir said “I am pleased to report that Tullow has made excellent operational and financial progress in the first half of 2021. Our producing fields in West Africa are performing well and we have successfully started our drilling programme in Ghana. This strong operational performance, combined with continued capital discipline, improved market conditions and asset sales in Gabon and Equatorial Guinea, supported our transformational debt refinancing. Tullow has a strong financial footing and we are making very good progress in delivering on our highly cash generative business plan and continuing to reduce our debt.”
As part of a big refinancing package, Tullow Oil issued bonds worth $1.8 billion in May. While this is an important milestone towards dealing with the Group’s immense debt, there are other challenges it has to overcome. Many analysts and investors are concerned about the growing demand for renewable energy and a move to zero carbon emissions by the end of the decade. They’re concerned about the impact this will have on the oil industry and oil stocks like Tullow Oil.
In summary, given the company’s huge debt and the global appeal for zero carbon emissions, many investors are keeping a close eye on Tullow Oil shares to see what the Half Year Results will bring on September 15th.
Many expert investors prefer to diversify their portfolios with a combination of stocks with strong fundamentals and a few more volatile assets such as meme stocks and cryptocurrencies. This way you don’t put all your eggs into one basket.
If you are looking to diversify your assets with Tullow Oil, make sure to conduct your own prior research before confirming the investment.