2011 Annual Report PDF - Tullow Oil plc

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The Group’s profit before taxation will continue to be subject to jurisdictions where the effective rate of taxation differs from that
in the UK. Furthermore, unsuccessful exploration expenditure is often incurred in jurisdictions where the Group has no taxable
profits, such that no related tax benefit arises. Accordingly, the Group’s tax charge will continue to depend on the jurisdictions
in which pre-tax profits and exploration costs written off arise.
The Group has tax losses of $1,082.3 million (2010: $840.1 million) that are available indefinitely for offset against future taxable
profits in the companies in which the losses arose. Deferred tax assets have not been recognised in respect of these losses as
they may not be used to offset taxable profits elsewhere in the Group.
The Group has recognised $117.5 million in deferred tax assets in relation to taxable losses (2010: $175.1 million).
No deferred tax liability is recognised on temporary differences of $253.0 million (2010: $485.6 million) relating to unremitted
earnings of overseas subsidiaries as the Group is able to control the timing of the reversal of these temporary differences and
it is probable that they will not reverse in the foreseeable future.
FINANCIAL STATEMENTS
Note 9. Dividends
Declared and paid during year
Final dividend for 2010: 4 pence (2009: 4 pence) per ordinary share 79.2 51.6
Interim dividend for 2011: 4 pence (2010: 2 pence) per ordinary share 35.0 27.6
Dividends paid 114.2 79.2
Proposed for approval by shareholders at the AGM
Final dividend for 2011: 8 pence (2010: 4 pence) per ordinary share 113.3 54.9
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included
as a liability in these financial statements.
Note 10. Earnings per ordinary share
Basic earnings per ordinary share amounts are calculated by dividing net profit for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per ordinary share amounts are calculated by dividing net profit for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average
number of ordinary shares that would be issued if employee and other share options were converted into ordinary shares.
Earnings
Net profit attributable to equity shareholders 649.0 71.0
Effect of dilutive potential ordinary shares – –
2011
$m
2011
$m
2010
$m
2010
$m
Diluted net profit attributable to equity shareholders 649.0 71.0
2011 2010
Number of shares
Basic weighted average number of shares 895,676,666 879,788,671
Dilutive potential ordinary shares 6,229,785 7,952,123
Diluted weighted average number of shares 901,906,451 887,740,794
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