Tullow Oil Plc. (TUWLF)

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$TUWLF Tullow oil reports 1H net profit and dividend payout; lowers FY production guidance

Tullow oil (OTCPK:TUWLF) posted doubled post-tax profit to $103M from $55M for 1H, and a payout of interim dividend of 2.35 cents per share; the group had suspended payouts in 2015.

Revenues declined to $872M, with gross profit of $527M and free cash flow of $181M for the period.

After having flagged delays for its East African onshore oil projects, Tullow said it now targets a final investment decision for its Kenyan onshore oilfields in 2H 2020.

In Uganda, a tax dispute has delayed the payment of more than $200M to Tullow after it sold part of a project to Total.
Tullow reiterated that it was “considering all options in pursuing the sale of its interests in Uganda”.

The company reduced oil production output outlook citing problems at its “TEN” group of fields off the coast of Ghana; forecasts output of 90,000-94,000 boed; in April, Tullow had cut its guidance to 90,000-98,000 from 93,000-101,000 barrels per day.

Hence for the year, full-year free cash flow is expected to be ~$400M, $50M below a previous forecast.

Reduced net debt and gearing to $2.9B and 1.8x