'Slimmed down and more efficient' Tullow attracts €418m
Irish-Listed oil and gas explorer Tullow Oil raised almost €420m under its existing credit facilities, and has now become "slimmed down and more efficent", the company said yesterday.
Tullow recently posted a disastrous set of full-year results which saw it make a pre-tax loss of €1.7bn.
It was the company's first loss in 15 years and compared to a profit of €313m in 2013.
The company has struggled with the dramatic fall in the price of oil and is expected to lay off up to 50 of its Dublin staff to cut back on costs.
However, shares in the firm rose by more than 4pc yesterday as the company announced that it has secured €418m in funds from existing creditors.
Tullow spokesman George Cazenove said that the firm was now more efficent, adding: "Tullow has now cleaned up the its balance sheet and has plenty of funding for future projects."
Analysts were cautious despite the funding boost.
A research note from Goobody Stockbrokers said that the company's debt profile "is unlikely to be reversed" until projects in Ghana come onstream in the middle of next year.
Mr Cazenove said that 2015 is about "getting the finances in good shape", adding that "the big change will come next year once the projects in Africa come online".