Tullow Oil plc (TLW) released its full year results for the year ended 31 December 2015 on Wednesday morning to investors.

The company said its financial results delivered solid revenue and pre-tax operating cash flow of $1.6 billion and $1.0 billion respectively which was down on 2014 after the significant fall in commodity prices during 2015.

Tullow said revenues and cash flow were supported by their significant hedging programme however the business still reported a loss after tax of $1.0 billion after write-downs due to the current valuation of oil prices.

Commenting on the results on Wednesday, Aidan Heavey, the businesses Chief Executive said:

“Today’s results demonstrate that Tullow adjusted well to low oil prices in 2015. We secured current and future cash flow through good operational delivery in West Africa, continued to build our resource base in East Africa, significantly cut costs across the Group and benefitted from our strong hedging position. Our challenge in 2016 is to be equally robust in responding to the uncertainties that remain in the sector. In the year ahead, we have three key priorities: ensuring continued low cost production from West Africa – including the start-up of production from TEN between July and August 2016; driving further reductions in operating costs and capital expenditure; and focusing on deleveraging the balance sheet through free cash flow generation and strategic portfolio management. As we look ahead, we have a portfolio of world class, low cost oil assets which will produce around 100,000 bopd in 2017 and a major position in one of the world’s newest, low cost, oil provinces in East Africa, both enabling us to create substantial value.”

Overall Tullow’s revenues were down 27% on the previous year which generated operating cash flow of $1.0 billion from stable production. The company ended the year in 2015 with net debt of $4.0 billion whilst still having facility headroom and free cash of $1.9 billion.

The oil and gas exploratory company completed project simplifications which reduced headcount by 37% and is expected to deliver savings of $500 million over three years. There was a focus on lower capex, cost savings and improved efficiency to benefit overall cash flows of the business.

Over 2015, Tullow said it has undertaken a strategic review of its New Ventures portfolio to determine how it can best use the current period of reduced exploration within the industry to position the company for future growth. The focus has been boosting Tullow’s licence and prospect inventory in anticipation of increasing drilling activity in future years.