West Africa-focused Tullow Oil (TLW.L), opens new tab reported a sharp improvement in first-half free cash flow on Monday, driven by strong output from its Ghana fields, stronger-than-expected new-well performance and higher oil prices stemming from the Iran war.
Here are details:
- Tullow’s free cash flow swung to $4 million for the first half ended June 30 from negative $188 million a year earlier.
- London-listed producer posted revenue of $496 million, up from $411 million a year earlier, as realised oil price before hedging rose to $95.0 per barrel from $71.4 per barrel.
- Tullow reiterated that full-year production is expected at the top end of its guidance range of 34,000 to 42,000 barrels of oil equivalent per day, after working interest production averaged 43.7 kboepd in the first half.
- Peel Hunt analysts said Tullow’s Ghana assets outperformed their expectations, supported by successful drilling results and strong uptime.
- Tullow has spent the past year reshaping itself around Ghana, selling non-core assets in Gabon and Kenya, refinancing its debt and securing licence extensions for its flagship Jubilee and TEN fields until 2040.
source: Reuters