London-listed Tullow Oil doubles first-half profits to £232m and begins hunt for new CFO
- Irish company grossed £232 million ($321 million) in the six months to June 30
- This compares to £118 million ($164 million) over the same period in 2020
- It said the gains were driven by some cost-cutting measures
Irish firm Tullow Oil doubled its profit for the first half of the year at the same time last year, a trade update shows.
The London-listed company grossed £232 million ($321 million) in the six months to June 30, compared to £118 million ($164 million) in the same period in 2020.
It said the gains were driven by a number of cost-cutting measures, including reductions in non-payroll administration costs, including outsourcing, information systems costs and office rent.
Irish company Tullow Oil doubled its profit for the first half of the year at the same time last year, a trade update shows
The London-listed company, which has been operating in Africa since 1986, said its after-tax profit for the six months to June 30 was $93 million, from a loss of $1.33 billion last year due to impairments.
Looking ahead, it has raised the lower bound of its 2021 production target to reflect the increased output from its Simba field in Central Africa, while postponing the planned maintenance shutdown of the Jubilee plant in Ghana until 2022.
It now expects production of between 58,000-61,000 barrels of oil equivalent per day (boepd) for 2021 compared to the earlier forecast of 55,000-61,000 boepd.
Commenting on the results, Chief Executive Officer Rahul Dhir said: “Strong operating performance in the first half of the year and transformational debt refinancing have given Tullow a solid foundation to deliver on our business plan.
“Our manufacturing assets in West Africa have performed well and we are limiting the production outlook for 2021 to the high end of the range.
“In Kenya, the revised development plan creates a robust project that has the potential to deliver material value to the government of Kenya and other stakeholders.”
Dhir added that the company is committed to being Net Zero by 2030 with “an emphasis on responsible business practices” to minimize environmental impact.
Along with the results, Tullow Oil announced on Wednesday that financial chief Les Wood will step down at the end of March.
The company, which focuses on Africa and South America, said the search process to find a new Chief Financial Officer is expected to be completed in the first quarter of 2022.