Tullow Oil plc has reported a loss after tax of US$61 million for the first half of 2025, compared to a US$196 million profit in the same period last year, as the independent oil and gas group faces lower production volumes and subdued oil prices following major asset divestitures.
According to its half-year results released on Tuesday, Tullow’s group revenue fell to US$524 million, down from US$759 million in H1 2024. The decline was primarily due to the sale of its Gabonese operations and a realised oil price of US$69 per barrel after hedging—down from US$77.7 per barrel a year earlier. When excluding Gabon, revenue stood at $411 million, with a loss after tax of US$80 million.
Gross profit across the Group also declined sharply to $218 million from $460 million in the same period in 2024, reflecting the impact of the Gabon exit and production downtimes, particularly at Ghana’s Jubilee field.
Tullow’s first-half oil and gas production averaged 50,000 barrels of oil equivalent per day (kboepd). Without Gabon, the figure was 40.6 kboepd, down from 53.5 kboepd in the prior year.
Free cash flow was negative $188 million, which the company attributed to the timing of tax payments, lower liftings, and costs associated with maintenance at Jubilee. Capital expenditure stood at $103 million, while net general and administrative (G&A) expenses were reduced to $23 million—down from $31 million in the same period in 2024—as part of ongoing cost-cutting efforts.
Despite the losses, Tullow says it has made “significant strategic progress” toward its financial restructuring. The company realised $300 million in proceeds from the completed sale of its Gabonese assets and expects to receive an additional $120 million from the planned sale of its Kenyan business. Proceeds from these divestitures have already been applied to repay and cancel a $150 million revolving credit facility, with further deleveraging efforts underway.
At the end of June, net debt stood at $1.6 billion, slightly lower than the $1.7 billion recorded a year earlier. However, cash gearing increased to 1.9x net debt/EBITDAX, up from 1.4x in 2024. Liquidity headroom fell to $200 million.
The company maintained its full-year net debt target of $1.1 billion, with year-end gearing expected to be around 1.3x. Free cash flow guidance for the year was revised to $300 million at an average oil price of $65/bbl, reflecting the deferral of one Jubilee lifting into 2026.
Tullow’s Interim Chief Executive Officer and Chief Financial Officer Richard Miller emphasised that the company remains committed to delivering its financial priorities.“We’ve made real progress in reshaping our portfolio and reducing our debt burden. The next six months will focus on refinancing our capital structure, unlocking further value from our Ghana operations, and optimising costs,” he stated.
