Energy Analysts Urge Operational Efficiency as Tullow Oil Swings to $61m Loss in H1 2025
Energy analysts are calling on international oil companies (IOCs) to prioritise operational efficiency to restore profitability, following a downturn in earnings across parts of the sector.
The call comes on the back of Tullow Oil Plc’s announcement of a post-tax loss of $61 million for the first half of 2025, compared to a $196 million profit in the same period last year.
Speaking in an interview, Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy, advised Tullow and other IOCs to step up production as part of their recovery strategy.
“National and international oil companies must improve operations and increase output to remain profitable, especially since oil prices are unlikely to rise much higher than current levels. If prices stay flat and production remains constant, revenues will decline. Continued losses could eventually force some companies into liquidation,” he cautioned.
As of June 30, 2025, Tullow’s net debt stood at $1.6 billion, down slightly from $1.7 billion a year earlier. Cash gearing was 1.9 times net debt to EBITDAX, or 2.1 times excluding Gabon, compared to 2.3 times at the end of 2024. Liquidity headroom narrowed to $0.2 billion from $0.7 billion in the same period last year.
Commenting on the results, Richard Miller, Chief Financial Officer and Interim CEO, said the company’s focus remains on strategic priorities such as refinancing its capital structure, optimising production, expanding reserves, and controlling costs.
