Tullow Oil has seen its revenue after tax land at $70 million within the first half of 2023, nicely beneath the determine of $264 million posted within the first six months of 2022.
Manufacturing within the first half averaged 53.5 kboepd, with the corporate deciding to slender its full yr oil manufacturing steerage to 58-60 kbopd from the earlier steerage of 58 to 64 kbopd.
The discount was pushed by Jubilee first half efficiency being barely beneath expectations and the timing of the Jubilee South East begin up within the second half of the yr, Tullow famous. Full yr gasoline manufacturing in Ghana is anticipated to common c.7 kboepd.
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“We’re at an necessary inflection level within the evolution of our marketing strategy,” Rahul Dhir, Tullow Chief Government Officer, commented.
“For the final two and a half years we’ve relentlessly centered on capital self-discipline, operational efficiency and acceptable funding in our property. This has resulted in a much-improved enterprise, materials debt discount and most not too long ago, the supply of Jubilee South East which has considerably elevated manufacturing,” he added.
“We now change to harvesting mode as our enterprise is about to generate $800 million of free money circulation between 2023 and 2025, while we are going to proceed to run our enterprise with the identical self-discipline. This may allow us to additional scale back our debt, put in place a sustainable capital construction and develop our enterprise to create worth for our traders, host nations and staff,” Dhir continued.
Tullow mentioned its web debt for the primary six months is presently at $1.93 billion, down from $2.33 billion reported within the first half of 2022. The corporate expects to additional lower its web debt by the top of the yr to $1.7 billion.
The corporate added in its report that throughout the interval below evaluation, its web gross sales have been at 56,900 boepd, up from 53,500 boepd within the first half of 2022. The rise is principally attributable to an extra lifting within the first half of 2023 in Gabon in comparison with the primary six months of 2022 the place an incident on the Cap Lopez terminal had delayed a lifting, Tullow revealed.
The group’s realized oil value after hedging for the interval was $73.3/bbl and earlier than hedging $79.7/bbl, which compares to $86.3/bbl and $106.9/bbl within the first half of 2022, respectively. Decrease oil costs in comparison with the primary half of 2022 have resulted in a decrease hedge loss lowering complete income by $65.9 million within the first half of 2023, Tullow mentioned.
The corporate realized a income of $777 million, down from $859 million within the first half of 2022.
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