26th Jun 2019 08:48
(Alliance News) - Tullow Oil PLC on Wednesday said it expects its earnings to decline in the first half of 2019 despite improved production.
The oil & gas exploration company said its working interest production for the six months to the end of June is expected to average around 89,000 barrels of oil a day, including production-equivalent insurance payments. In the first half of 2018, oil output was 88,200 barrels daily.
Tullow said it is currently producing around 95,000 barrels of oil per day net and its net oil production is expected to rise towards 100,000 barrels of oil daily in the second half of 2019 as further wells are brought on stream in Ghana.
The FTSE 250-listed company said it expects to report revenue of around USD900 million and gross profit of around USD500 million in the first half. Last year, revenue was reported at USD905.1 million and gross profit totalled USD520.8 million.
Tullow maintained its annual production forecast unchanged at between 90,000 and 98,000 barrels of oil per day. This forecast includes production-equivalent insurance payments of 1,300 barrels of oil daily.
"Tullow has made steady progress overall across the business in the first half of the year. Our balance sheet remains strong and we expect another year of solid free cash flow generation," said Chief Executive Paul McDade.
Tullow will release its half-year results on July 24.
The stock was trading 0.4% higher on Wednesday at 208.50 pence a share in London.
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