LOW-COST oil exploration company Tullow yesterday warned it will cut over a third of its workforce as it reported a pre-tax loss for 2019 and warned of "material uncertainty" over its future.

Tullow Oil unveiled a $1.7bn (£1.35bn) pre-tax loss in 2019, down from an $85m profit in 2018.

Volatility in the global oil markets meant Tullow Oil's free cash flow fell 13 per cent to $355m in 2019 from $411m in 2018.

Tullow Oil said cash flow may only reach $50m to $75m this year based on an oil price of $50 per barrel.

Its dire set of results prompted its share price to tank 31.3 per cent to just 12.46p yesterday.

"This has been an intense period for Tullow as we have worked hard on a thorough review of the business which has led to clear conclusions and decisive actions," said executive chair Dorothy Thompson.

Total revenue dropped from $1.8bn to $1.6bn over the same period, a fall of 9.5 per cent. Net debt also dropped from $3bn to $2.8bn but the $100m dividend was suspended.

Production for 2019 averaged an equivalent of 86,800 barrels of oil per day, a 3.6 per cent fall on the previous year. Tullow put the loss down to write-offs and impairments from oil exploration.

(c) 2020 City A.M., source Newspaper