Tullow Oil plc said it was preparing to reap from its investments as its six-month profits halved and full-year guidance narrowed.
FINANCES
The group posted revenue of $777m (H1 2022: $859m) from falling oil prices despite an increase in sale to 56,900 boepd (53,500 boepd).
Pre-tax profit from continuing activities decreased to $217m ($561m)
The decrease from 50-64kbopd to 58-60 kbopd follows the Jubilee field in Ghana performing “slightly below expectations” due to reduced water injection and the timing of the Jubilee South East start up in H2 2023.
GROWTH
Chief executive officer Rahul Dhir said that Tullow was at an “important inflection point” in the evolution of its business plan.
“For the last two and a half years we have relentlessly focused on capital discipline, operational performance and appropriate investment in our assets.
“This has resulted in a much-improved business, material debt reduction and most recently, the delivery of Jubilee South East which has substantially increased production.
“We now switch to harvesting mode as our business is set to generate c.$800 million of free cash flow between 2023 and 2025, whilst we will continue to run our business with the same discipline.
“This will enable us to further reduce our debt, put in place a sustainable capital structure and grow our business to create value for our investors, host nations and employees.”