Tullow Oil revenue declines by almost $450m but losses narrow
Losses at Irish-listed oil explorer Tullow Oil fell by $27m (€24.4m) even as revenue declined by almost $450m in the first six months of the year.
According to the company's half year results sales at the firm dropped to $820m in the first half of the year, below analyst expectations of $848m and down from just under $1.27bn for the same period the year before.
However the group recorded a pre-tax loss of $10m, better than analyst expectations of a $58m hole.
The firm's after tax loss also narrowed to $68m (€61.5m) compared to $95m in 2014 after its hedging programme helped to offset some of the losses suffered due to low oil prices.
Tullow also lowered guidance on its key Jubilee field which is having unexpected problems with compressed gas. The oil field, located in the Atlantic Ocean, produced 105,000 barrels of oil per day in the first half of the year. However, this is expected to fall to 100,000 barrels in the second half of 2015.
Tullow oil chief executive Aidan Heavey said that the company’s results “reflect the re-setting of our business in response to the weaker oil price.
“Revenues are lower due to the fall in oil price and asset sales but our hedging programme offset some of the impact. Our underlying cash generation remains solid and the restructuring programme is nearing completion and will deliver cost savings of $500m over the next three years.
He added: “We are making good progress with our major development projects in West and East Africa. We also continue to build an inventory of exploration prospects to provide options for growth in the future.”
The company's share price has fallen 70.5pc in the last 12 months to a nine-year low.