Tullow Oil reported a $61 million loss after tax for the first half of 2025, a sharp reversal from the $196 million profit recorded in the same period last year. The downturn was attributed to lower oil prices, reduced production volumes, and higher maintenance costs.
Revenue for the period dropped to $524 million, down from $759 million in the first half of 2024. The decline reflects a fall in average realized oil prices to $69.0 per barrel, compared to $77.7 per barrel in the prior year, coupled with a decrease in production volumes.
Working interest production for the half year averaged 50,000 barrels of oil equivalent per day (kboepd), down from 63.7 kboepd a year earlier. Excluding the company’s operations in Gabon, revenue stood at $411 million, with production averaging 40.6 kboepd.
Gross profit fell significantly to $218 million, from $460 million in the previous year. Free cash flow was negative $188 million, driven largely by the timing of tax payments and maintenance-related expenditures. Capital expenditure dropped to $103 million from $157 million, while decommissioning spend rose slightly to $13 million. Net debt stood at $1.6 billion, a modest improvement from $1.7 billion a year earlier.
Richard Miller, Chief Financial Officer and Interim CEO, said the company remains focused on its strategic priorities, including refinancing its capital structure, optimizing production, growing reserves, and managing costs. He expects performance in the second half of the year to improve, driven by tighter cost control, asset optimization, and continued progress toward refinancing its balance sheet.
Tullow has already realized $300 million from asset sales, including the completion of its divestment in Kenya. The company is also expecting additional upside from a fourth-quarter Ocean Bottom Node (OBN) seismic survey.
