Tullow Oil plc (“Tullow”), the independent oil and gas exploration and production group (“Group”), announces its Half Year Results for the six months ended 30 June 2025.
Details of a management presentation and webcast that will be held at 9:00 BST today are available below or visit the Group’s website: www.tullowoil.com
Richard Miller, Chief Financial Officer and Interim Chief Executive Officer, Tullow Oil plc, commented:
“Our 2025 strategic priorities remain clear: refinancing our capital structure, optimising production, increasing reserves, and completing the sale of our Kenyan assets, having already realised $300 million proceeds from the sale of our portfolio of assets in Gabon.
“In Ghana we have already taken actions to address the recent underperformance at Jubilee, with further optimisation potential identified. We have recommenced drilling and have successfully completed and brought onstream the first of two planned 2025 production wells at Jubilee, with better than expected net pay during drilling. The high quality 4D seismic data acquired at the start of the year is now being used to generate improved models that will directly inform the well-planning process and will be further supported with the capture of an Ocean Bottom Node (OBN) seismic survey in the fourth quarter this year.
“We achieved a key milestone by signing a MoU in Ghana to extend our production licences for both Jubilee and TEN to 2040, which is expected to increase reserves and unlock significant value from these fields.
“In the second half of the year we are focussed on refinancing our capital structure, production optimisation activities and continuing to optimise our cost base, which combined with the progress in the first half of the year will help unlock Tullow’s intrinsic value.”
2025 FIRST HALF RESULTS
- First half Group working interest oil and gas production 50.0 kboepd (1H24: 63.7 kboepd). Excluding Gabon, 40.6 kboepd (1H24: 53.5 kboepd).
- Revenue of $524 million (1H24: $759 million); realised oil price of $69.0/bbl after hedging (1H24: $77.7/bbl), gross profit of $218 million (1H24: $460 million); loss after tax of $(61) million (1H24: profit after tax of $196 million). Excluding Gabon, revenue of $411 million (1H24: $666 million); realised oil price of $69.7/bbl after hedging (1H24: $77.0/bbl), gross profit of $165 million (1H2024: $387 million); loss after tax of $(80) million (1H24: profit after tax of $106 million).
- Net G&A of $23 million (1H24: $31 million).
- Capital expenditure of $103 million (1H24: $157 million) and decommissioning spend of $13 million (1H24: $9 million). Excluding Gabon of $78 million (1H 2024: $130 million)
- Free cash flow1 of $(188) million in 1H25 (1H24: $(126) million), in line with expectations based on timing of tax payments, lifting schedule and costs associated with Jubilee maintenance in 1H25.
- Net debt1 at 30 June 2025 of $1.6 billion (30 June 2024: $1.7 billion); cash gearing of 1.9x net debt/EBITDAX1 (30 June 2024: 1.4x); liquidity headroom of $0.2 billion (30 June 2024: $0.7 billion). Excluding Gabon, cash gearing of 2.1x net debt/EBITDAX (30 June 2024: 1.6x).
STRATEGIC PRIORITIES
- The first half of 2025 has seen significant progress towards delivery of our strategic priorities for the year to realise Tullow’s potential, including:
- On 29 July, Tullow completed the sale of Tullow Oil Gabon SA for a total cash consideration of $300 million net of tax.
- On 21 July, Tullow entered into a sale and purchase agreement for the sale of Tullow Kenya BV for a cash consideration of at least $120 million. Completion and receipt of the first two milestone payments, totalling $80 million, are expected during 2025.
- On 4 June, Tullow and its JV partners announced a Memorandum of Understanding (MoU) with the Government of Ghana to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences to 2040; the MoU includes a commitment to work to increase gas supply to c.130 mmscf/d and a guaranteed reimbursement mechanism for gas sales. As a result of the licence extensions the JV partners expect to realise a material increase in gross 2P reserves.
- In January the International Chamber of Commerce Tribunal determined that Branch Profit Remittance Tax (BPRT) in Ghana is not appliable to Tullow Ghana and therefore it is not liable to pay the $320 million assessment.
2025 FULL YEAR OUTLOOK
- 2025 Group working interest production guidance is expected to average 40-45 kboepd, including c.6 kboepd of gas, reflecting the sale of the Gabonese assets effective from the start of the year.
- Full year capex and decommissioning guidance, both updated to reflect the Gabonese sale, of c.$185 million and c.$20 million, respectively.
- Ghana drilling campaign recommenced with the J72-P well, the first of two Jubilee production wells in 2025, which was brought onstream at the end of July having encountered better than expected net pay during drilling operations.
- Interpretation of the 4D seismic data acquired in the first quarter continues, with a further four firm Jubilee wells planned for 2026.
- Cost base optimisation savings of c.$10 million expected to reduce 2025 annual net G&A to $40 million, with Group targeted savings of c.$50 million over the next three years compared to 2024.
- Full year free cash flow guidance is adjusted to $300 million at $65/bbl, reflecting 1H25 Jubilee production performance resulting in one lifting moving into 2026. Guidance is inclusive of $380 million of disposal proceeds, $35 million of 2024 Gabonese cash taxes paid in 1H25 which are not reimbursed through the transaction and c.$50 million of overdue gas payments in Ghana.
- Year-end net debt guidance is unchanged at c.$1.1 billion with gearing of c.1.3x (net debt/EBITDAX1).
- Following completion of the sale of Tullow Oil Gabon SA, Tullow applied part of the proceeds to repay in full and simultaneously cancel the $150 million Revolving Credit Facility (RCF).
- Tullow remains focused on further deleveraging and reaching net debt of less than $1 billion and cash gearing of less than 1x in the near term.
1 Alternative performance measures are reconciled on pages 38 to 40
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