UK’s Tullow Oil swings to profit on lower impairments, asset revaluation gains.
West Africa-focused independent oil and gas explorer Tullow Oil swung to an annual profit on after-tax basis on Tuesday, largely helped by a reduction in impairments and asset revaluation gains.
Tullow has outperformed peers at a time when oil firms’ earnings declined in 2024, following record profits in the previous two years on a recovery in consumption after the pandemic, and energy price spikes in the aftermath of the war in Ukraine.
“There is strong momentum within the business with a return to drilling at (the) Jubilee (mine), commencement of production optimisation and reserves maturation activities in Ghana,” interim CEO Richard Miller said in a statement.
The company said over the next year, its main objectives would be to move forward with its refinancing plan, improve production efficiency at its flagship Jubilee field and TEN, and expand its reserve base.
The London-listed company reported profit after tax of $55 million for the year ended December 31, compared with a loss of $110 million in 2023.
Tullow announced on Monday that it had agreed to sell its entire working interests in Gabon to Gabon Oil Company for $300 million in cash, as part of efforts to reduce its debt.
Source: Globalbankingandfinance
