Business Irish

Monday 20 November 2017

Tullow Oil makes first loss in 15 years, scraps dividend

Workers are seen at an oil exploration site in Bulisa district approximately 244km (152 miles) North-West of Kampala
Workers are seen at an oil exploration site in Bulisa district approximately 244km (152 miles) North-West of Kampala

Africa-focused oil and gas explorer Tullow Oil has reported a $2bn pre-tax loss, its first in 15 years, and has scrapped a dividend payment as it deals with the consequences of fallen oil prices.

The London-listed FTSE 100 company will also cut operating and administrative costs on top of a slimmed down investment budget, aiming to save $500m over three years, it said.

Oil companies across the globe have been hit by a 50pc drop in crude prices in eight months, putting them under pressure to make new cost cuts.

Tullow scrapped its final dividend payment, resulting in a full-year 2014 payout to shareholders of 4 pence per share versus the 12 pence paid in each of the past three years.

Reuters

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