- First half revenue of $759 million, gross profit of $460 million and profit after tax of $196 million
- Ghana drilling programme completed safely and ahead of schedule
- 2024 guidance reiterated
Tullow Oil, the independent oil and gas exploration and production group, has announced its Half Year Results for the six months ended 30 June 2024.
Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:
'During the first half of 2024, Tullow has continued to deliver strong operational and financial performance. We are pleased to report improved results across key financial metrics compared to the first half of 2023; with higher production and oil price realisations combined with lower expenditure. The Ghana drilling programme was also completed safely, and ahead of schedule.
'We were delighted to reach a major milestone by taking final investment decision (FID) of our nature-based carbon offset initiative, in partnership with the Ghana Forestry Commission. The project will deliver certified carbon offsets in line with Tullow’s 2030 Net Zero target, while bringing broader positive impacts to the local community.
'We now progress into a period of lower capex in the second half of the year and beyond. We will continue to reduce debt through sustainable free cash flow generation, strengthening our balance sheet and providing optionality for investment, growth and future returns.'
2024 First Half Results
- First half Group working interest oil and gas production 63.7 kboepd (1H23: 60.8 kboepd).
- Revenue of $759 million (1H23: $777 million); realised oil price of $77.7/bbl after hedging (1H23: $73.3/bbl), gross profit of $460 million (1H23: $351 million); profit after tax of $196 million (1H23: $70 million).
- Capital expenditure of $157 million (1H23: $187 million) and decommissioning spend of $9 million (1H23: $44 million).
- Free cash flow1 of $(126) million (1H23: $(142) million), in line with expectations based on timing of tax payments and capital expenditure weighted toward the first half of the year.
- Net debt1 at 30 June 2024 of $1.7 billion (30 June 2023: $1.9 billion); cash gearing of 1.4x net debt/EBITDAX1 (30 June 2023: 1.7x); liquidity headroom of $0.7 billion (30 June 2023: $0.7 billion).
2024 Full Year Outlook
- 2024 Group working interest production is expected to be at the lower end of the Group’s 62-68 kboepd range, as previously guided; driven primarily by underperformance of a single Jubilee well, which came onstream in February 2024.
- Full year capex and decommissioning guidance of c.$230 million and c.$70 million, respectively. This represents a c.$20 million capex decrease (versus previous guidance of c.$250 million) in both Ghana and Gabon.
- A significant free cash flow uplift is expected in the second half of 2024. Full year free cash flow guidance remains unchanged at $200-300 million at $80/bbl.
- Increased access to oil price upside as legacy hedges fully rolled off in May 2024; 2H 2024 average floor of $60/bbl and capped upside of $112/bbl.
- Year-end net debt guidance is unchanged at less than $1.4 billion with gearing of c.1x (net debt/EBITDAX1).
- Tullow has no uncovered debt maturities until May 2026 and continues to consider options to manage its debt maturities and optimise its capital structure.
- Outcome of arbitration in respect of Ghana Branch Profits Remittance Tax expected in the second half of 2024.
- Tullow remains focused on deleveraging and reaching net debt of less than $1 billion and cash gearing of less than 1x in the near term.
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Source: Tullow Oil
