UK's Tullow Oil half-year net loss widens on one-off refinancing fees

By Reuters News


Overview

  • UK oil and gas producer's half-year revenue rose yr/yr; net loss impacted by refinancing fees

  • Free cash flow turned positive, supported by higher production and oil prices

  • Reserves replacement ratio reached about 380%, reflecting material reserves growth


Outlook

  • Tullow Oil expects 2026 production at high end of 34-42 kboepd guidance range

  • Company maintains 2026 capex guidance at c.$200 mln

  • Full year free cash flow guidance upgraded to $170-250 mln at $70-100/bbl oil price


Result Drivers

  • PRODUCTION OPTIMISATION - Increased production supported by new wells, high FPSO uptime, and optimisation activities reduced decline rates

  • HIGHER OIL PRICES - Realised oil price before hedging of $95/bbl, significantly above prior year, contributed to improved free cash flow

  • RESERVES GROWTH - Material reserves increase driven by licence extension, development drilling, and positive well performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

Miss

$496.3 mln

$537 mln (1 Analyst)

H1 Net Loss

$100.6 mln

H1 Gross Profit

$276.2 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

  • Wall Street's median 12-month price target for Tullow Oil PLC is GBp15.00, about 30.4% below its September 25 closing price of GBp21.55

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 2 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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