Tullow Reports $1.3Billion Half Year Loss, Talks Up Ghanaian Asset

London listed Tullow Oil has reported a post-tax loss of $1.3Billion in the Half Year, between January 1 and June 30, 2020.

The company’s revenue was $731Million during the period, with gross profit of $164Million.

Tullow said that the loss after tax was driven by exploration write-offs and impairments totalling $1.4Billion pre-tax. Net debt as of June 30 2020 was $3illion; Gearing of 3.0x net debt/EBITDAX; liquidity headroom and free cash of $0.5Billion.

The best performing asset in Tullow’s portfolio remains Ghana’s Jubilee field and TEN cluster of fields. Tullow talks of “strong operational performance”, of those assets in 1H 2020, with “both FPSOs delivering in excess of 95 per cent uptime.”

The Ntomme-09 production well came on stream in August and is incrementally adding c.5,000BOPD gross to TEN oil production.

Tullow’s report talks of maximizing gas offtake nominations from both Jubilee and TEN, in order to “focus on continuous improvement to maintain FPSO uptime in excess of 95%”.

The company has been working on restructuring its business since the sharp plunge in its stock rice in December 2019 led to significant leadership changes.

The current CEO, Rahul Dhir who took charge in July 2020, has commissioned a comprehensive review of Tullow’s portfolio, growth prospects and capital structure. “Once this review is complete, and its conclusions have been fully validated, the Group will hold a Capital Markets Day (CMD) before the end of the year. At this CMD, Rahul Dhir and other senior leaders will lay out their plans for Tullow’s business and assets and demonstrate how they will unlock material value from the portfolio”.

 

 

 



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