28th Sep 2026 12:43
(Alliance News) - Tullow Oil PLC on Monday said the longer-term outlook for the business remains "healthy" as it reported sharply higher revenue on the back of increased oil prices.
The London-based oil and gas company swung to a pretax profit from continuing operations of USD26.8 million in the six months ended June 30 from a USD49.9 million loss the year prior.
The prior-year period included a USD39.1 million impairment charge, compared to a USD800,000 gain this time around.
Revenue increased 21% to USD496.3 million from USD410.6 million, reflecting a higher oil price of USD95.0 per barrel before hedging, versus USD71.4 per barrel the year prior.
First-half group working interest oil and gas production rose to 43,700 barrels of oil equivalent per day from 40,600 boepd.
Tullow Oil said strong first-half production was supported by good performance from new wells and enabled by thorough "operational rigour" following the successful 2025 Jubilee scheduled shutdown, which improved the reliability of key equipment.
Free cash flow was USD4 million compared to outflows of USD188 million a year ago. Net debt at June 30 declined to USD1.4 billion from USD1.6 billion.
For 2026, Tullow expects group working interest production to be at the high end of the guidance range of 34,000 to 42,000 boepd.
Full-year capital expenditure guidance remains around USD200 million. In the first half of 2026, capex totalled USD134 million, up from USD103 million.
Free cash flow guidance remains USD170 to USD250 million, after the company raised it in August.
Chief Executive Ian Perks said: "The successful completion of our 2025-26 drilling campaign marks an important milestone for Tullow with higher-than-expected production from new wells, further supporting production performance and improving the outlook for the long-term potential of our Ghanaian portfolio."
Perks said further reserves growth is possible before year-end and the longer-term outlook for the business remains "healthy".
No interim dividend was declared, unchanged year-on-year.
Shares in Tullow Oil were down 0.2% at 21.50 pence each in London on Monday afternoon.
By Jeremy Cutler, Alliance News reporter
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