Tullow Oil records profit after tax of $ 96m in half year

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Tullow Oil, a multinational oil and gas exploration company, has recorded a profit after tax of $96 million in the first half of this year.

The feat is deemed an indication of strong performance as the company posted a loss of $1.3 billion in the same period last year.

This was contained in the Tullow’s 2021 Half Year results for the six months ended June 30, which was published Wednesday.

Per the results, the company recorded a gross profit of $321 million as against $164 million last year.

Although Tullow accrued sales revenue of $727 million in the first half of 2021, it represented a slight dip compared with the $731million revenue raked in the same period last year.

Underlying operating cash flow of $218 million was achieved alongside the free cash flow of $86 million, according to the company.

The Chief Executive Officer of Tullow Oil plc, Rahul Dhir, commenting on the results said “Strong operational performance in the first half of the year and a transformational debt refinancing have put Tullow on a firm footing to deliver our Business Plan,”

“Our West Africa production assets have performed well, and we are narrowing production guidance for 2021 to the upper end of the range.”

In Kenya, Mr. Dhir said, the revised development plan created a robust project that had the potential to deliver material value to the government of Kenya and other stakeholders.

“Through our operations, Tullow continues to deliver Shared Prosperity and to be an engine for economic and social change in the developing economies in which we work. Furthermore, by targeting Net Zero by 2030 and an emphasis on responsible operations, we are ensuring that the oil and gas resources of our host countries are developed efficiently and safely, whilst minimising our environmental impact”, he said.

The first half results summary indicates that the group working interest production for the first half averaged 61,230 boepd (barrels of oil equivalent per day), in line with expectations.

It recorded a good operational progress in Ghana where floating production storage and offloading (FPSOs) were delivering over 98 per cent uptime while there was a sustained increased water injection and gas off take rates.

In the same country, the document said the first new well in drilling programme, J56 producer, came on stream delivering production rates ahead of expectations.

According to the company, progress had been made on the delivery of Business Plan set out in November 2020, including target to become Net Zero by 2030.

It also mentioned “Capital investment of $101 million; decommissioning costs of $37 million. The 2021 half year operating costs averaged $12.9/bbl, a year-on-year increase primarily due to lower production and increased costs related to extended COVID-19 operating procedures.”

Tullow said it had completed a comprehensive debt refinancing with $1.8 billion of five-year Senior Secured Notes issued and a new $500 million revolving credit facility while the period saw a completion of Equatorial Guinea and Dussafu Marin permit sales in March and June respectively, receiving $133 million.

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