Tullow Oil has reported a loss after tax of $61 million for the first half of 2025, a sharp reversal from the $196 million profit recorded in the same period last year. The downturn was attributed to lower oil prices, reduced production volumes, and higher maintenance costs.
Revenue for the period dropped to $524 million, down from $759 million in the first half of 2024. The decline reflects a fall in average realised oil prices to $69.0 per barrel, compared to $77.7 per barrel in the prior year, coupled with a decrease in production volumes.
Working interest production for the half year averaged 50,000 barrels of oil equivalent per day (kboepd), down from 63.7 kboepd a year earlier.
Excluding the company’s operations in Gabon, revenue stood at $411 million, with production averaging 40.6 kboepd.
Gross profit fell significantly to $218 million, from $460 million in the previous year. Free cash flow was negative $188 million, driven largely by the timing of tax payments and maintenance-related expenditures at the Jubilee field. Capital expenditure dropped to $103 million from $157 million, while decommissioning spend rose slightly to $13 million.
As of June 30, 2025, Tullow’s net debt stood at $1.6 billion, a modest improvement from $1.7 billion a year earlier. Cash gearing was 1.9 times net debt to EBITDAX, or 2.1 times excluding Gabon, down from 2.3 times at the end of 2024. Liquidity headroom narrowed to $0.2 billion, compared to $0.7 billion in the same period last year.
Miller also highlighted progress in portfolio rationalisation, stating that the company has already realised $300 million from asset sales, including the completion of its divestment in Kenya.
Looking ahead, Tullow expects performance in the second half of the year to improve, driven by tighter cost control, asset optimisation, and continued progress toward refinancing its balance sheet.
Source: radiotamaleonline.com
