Tullow Oil : 2021 Half Year Results

Tullow Oil (Tullow) announces its Half Year results for the six months ended 30 June 2021.

Details of the presentation (virtual) and conference call are available here.

Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:
'Strong operational performance in the first half of the year and a transformational debt refinancing have put Tullow on a firm footing to deliver our Business Plan. Our West Africa production assets have performed well, and we are narrowing production guidance for 2021 to the upper 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. Through our operations, Tullow continues to deliver Shared Prosperity and to be an engine for economic and social change in the developing economies in which we work. Furthermore, by targeting Net Zero by 2030 and an emphasis on responsible operations, we are ensuring that the oil and gas resources of our host countries are developed efficiently and safely, whilst minimising our environmental impact.'

READ THE FULL STATEMENT HERE.

2021 FIRST HALF RESULTS SUMMARY

• Group working interest production for the first half of 2021 averaged 61,230 boepd, in line with expectations.
• Good operational progress in Ghana; FPSOs delivering over 98% uptime; sustained increased water injection and gas offtake rates; first new well in drilling programme, J56 producer, came on stream delivering production rates ahead of expectations.
• Progress made on the delivery of Business Plan set out in November 2020, including target to become Net Zero by 2030.
• Revenue of $727 million; gross profit of $321 million; profit after tax of $93 million; underlying operating cash flow of $218 million and free cash flow of $86 million.
• Continued focus on costs results in reduced administrative expenses of $23 million in 1H21, down c.50% year-on-year.
• Capital investment of $101 million; decommissioning costs of $37 million. 1H21 operating costs averaged $12.9/bbl, a year-on-year increase primarily due to lower production and increased costs related to extended COVID-19 operating procedures.
• Net debt at 30 June 2021 of c.$2.3 billion; Gearing of 2.6x net debt/EBITDAX; liquidity headroom and free cash of $0.7 billion.
• Completion of comprehensive debt refinancing with $1.8 billion of five-year Senior Secured Notes issued and a new $500 million revolving credit facility.
• Completion of Equatorial Guinea and Dussafu Marin permit sales in March and June respectively, receiving $133 million.

KEY FINANCIAL RESULTS

	1H 2021	1H 2020
Sales revenue ($m)	727	731
Gross profit ($m)	321	164
Underlying cash operating cost per barrel ($/bbl)	12.9	11.0
Profit / (loss) after tax ($m)	93	(1,327)
Free cash flow ($m)	86	(213)
Net debt ($m)	2,290	3,019
Gearing (times)	2.6	3.0