6th Aug 2025 13:40
(Alliance News) - Tullow Oil PLC shares slumped on Wednesday as it swung to a pretax loss in the first half of the year as revenue dropped amid a reduced oil price and lower output.
The oil and gas producer in Ghana and Ivory Coast said total revenue fell 38% to USD410.6 million in the six months to the end of June from USD666.5 million a year ago.
It swung to a pretax loss of USD49.9 million from a USD254.3 million profit the year before.
Shares in Tullow Oil were down 17% to 11.86 pence in London on Wednesday afternoon.
Cost of sales were down 10% to USD249.6 million from USD278.4 million. The firm faced an impairment of property, plant and equipment worth USD39.1 million, swung from an impairment reversal of USD1.7 million a year ago.
Tullow Oil also benefited from a USD39.4 million provisions reversal in the prior year, against none in the first half of 2025.
Working interest oil and gas production in the first half slipped 22% to 50,000 barrels of oil equivalent per day from 63,700 boepd, while the realised oil price after hedging was USD69.00 per barrel, down 11% from USD77.70 a year earlier.
The company did not declare an interim dividend, unchanged from last year.
"Our 2025 strategic priorities remain clear: refinancing our capital structure, optimising production, increasing reserves, and completing the sale of our Kenyan assets, having already realised USD300 million proceeds from the sale of our portfolio of assets in Gabon," said Chief Financial Officer and Interim Chief Executive Officer Richard Miller.
Looking ahead, Tullow Oil said working interest production is expected to average between 40,000 and 45,0000 boepd, including 6,000 boepd of gas, after the sale of the Gabonese assets effective from the start of the year.
It left year-end net debt guidance unchanged at USD1.1 billion.
Miller added: "In the second half of the year we are focussed on refinancing our capital structure, production optimisation activities and continuing to optimise our cost base, which combined with the progress in the first half of the year will help unlock Tullow's intrinsic value."
By Michael Hennessey, Alliance News reporter
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