Tullow Oil's revenue drops US$1.3 billion

In its half-year results, Tullow Oil plc has announced that it made a revenue loss of $1.3 billion for the six months ended 30 June 2020.

Summary of 2020 first half result

Group working interest production for the first half of 2020 averaged 77,700 bopd, in line with expectations.

Revenue of $731 million; gross profit of $164 million; loss after tax of $1.3 billion.

Loss after tax driven by exploration write-offs and impairments totalling $1.4 billion pre-tax.

Capital investment of $192 million; decommissioning costs of $38 million.

Negative free cash flow in 1H due to weighting of cash taxes, cash capex, differentials, redundancy costs and working capital.

Net debt at 30 June 2020 of $3.0 billion; Gearing of 3.0x net debt/EBITDAX; liquidity headroom and free cash of $0.5 billion.

Strong operational performance in Ghana; both FPSOs delivering in excess of 95 percent uptime.

Approval from shareholders for sale of Ugandan assets for $500 million in cash on completion and $75 million in cash at FID.

As of 9 September 2020, Dorothy Thompson returns to non-Executive Chair and Mitchell Ingram appointed as new Non-executive Director of Tullow.

The Chief Executive Officer of Tullow Oil plc, Rahul Dhir, who was appointed as of 1 July 2020, said: “Despite the very tough conditions in the first half of this year, we have successfully delivered reliable production and major, sustainable reductions to our cost base”.

“We are also close to completing the important sale of our interests in Uganda.

“The quality of Tullow’s assets remains robust. Since my arrival as CEO, we have been developing new plans for our business, with the support of our Joint Venture Partners and expert advisors.

“These plans will deliver enhanced value from our assets to benefit all our stakeholders including our host countries and investors.

“We will host a Capital Markets Day towards the end of 2020 at which we will update the market on these plans to deliver on Tullow’s true potential”, Mr Dhir added.