25th Jul 2018 09:22
LONDON (Alliance News) - Tullow Oil PLC on Wednesday reported a swing to pretax profit for the first half of 2018 due to the absence of a large impairment charge taken a year earlier and increased revenue generation.
For the six months to June-end, the oil producer recorded pretax profit of USD150.5 million, compared with a pretax loss of USD557.9 million a year before, on a revenue of GBP905.1 million and GBP787.5 million, respectively. Impairment costs relating to property, plant and equipment for the period totalled USD8 million versus USD642 million a year ago.
First-half working interest production averaged 79,100 barrels of oil equivalent per day, down from 82,400 boepd recorded a year previously. The drop was primarily attributed to shut downs at Jubilee operations in the recent period.
"Over the next two years, we will increase production from our current assets in West Africa, progress two large onshore developments in East Africa, and step up our search for material new oil fields in Africa and South America through a multi-year exploration campaign which will initially focus on Namibia and Guyana," said Chief Executive Paul Mcdade.
Tullow has maintained its 2018 capital expenditure estimates of USD460 million. It has upgraded annual production guidance range for its West African operations to 86,000 to 92,000 barrels of oil per day from 86,000 to 92,000 bopd.
The oil company has not paid a dividend for the period to conserve cash to pay down debt and invest in assets. No dividend was declared in the first half of 2017.
Shares in Tullow Oil were trading 2.6% higher at 226.10 pence each on Wednesday morning.
Related Shares:
Tullow Oil