Tullow Oil Posts $61 Million Loss for H1 2025 on Lower Oil Prices, Reduced Output
Tullow Oil Plc has reported a loss after tax of $61 million for the first half of 2025, reversing a profit of $196 million recorded in the same period last year, amid declining revenues and lower realised oil prices.
Revenue for the period declined sharply to $524 million from $759 million in H1 2024, driven largely by a drop in the company’s realised oil price to $69.0 per barrel after hedging, compared to $77.7 per barrel in the corresponding period last year. Gross profit also fell by more than half to $218 million from $460 million in H1 2024.
Excluding its now-divested Gabonese assets, revenue stood at $411 million, down from $666 million a year earlier, while gross profit dropped to $165 million from $387 million. Loss after tax without Gabon contributions came in at $80 million, compared to a profit of $106 million in the same period in 2024.
The British oil and gas explorer attributed the performance to lower production volumes, the timing of liftings, and costs associated with maintenance works at its flagship Jubilee oil field in Ghana.
Free cash flow remained negative at $(188) million, broadly in line with expectations, and wider than the $(126) million deficit posted in H1 2024. Capital expenditure declined to $103 million from $157 million, while decommissioning expenditure increased slightly to $13 million.
At the end of June 2025, Tullow’s net debt stood at $1.6 billion, a marginal improvement from $1.7 billion in June 2024. However, cash gearing rose to 1.9x net debt/EBITDAX from 1.4x a year earlier. Excluding Gabon, gearing was higher at 2.1x, up from 1.6x in June 2024, indicating increased pressure on the group’s balance sheet. Liquidity headroom also narrowed significantly to $200 million from $700 million.
Strategic focus on Ghana, debt refinancing
Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow Oil, reaffirmed the company’s 2025 strategic priorities, including refinancing its capital structure, improving production efficiency, and completing the sale of its Kenyan assets.
“In Ghana, we have already taken actions to address the recent underperformance at Jubilee, with further optimisation potential identified. We have recommenced drilling and have successfully completed and brought onstream the first of two planned 2025 production wells at Jubilee, with better than expected net pay during drilling,” he stated.
He also highlighted the use of advanced 4D seismic data and the planned Ocean Bottom Node (OBN) seismic survey in Q4 2025 to enhance field development models.
A significant milestone achieved during the period, Mr Miller said, was the signing of a Memorandum of Understanding (MoU) with the Ghanaian government to extend production licences for both the Jubilee and TEN fields to 2040—an agreement expected to increase recoverable reserves and unlock further value from the assets.
“In the second half of the year, we are focused on refinancing our capital structure, production optimisation activities and continuing to streamline our cost base,” Mr Miller added.
Tullow’s strategic pivot follows its $300 million sale of Gabonese assets, which formed part of its portfolio rationalisation efforts aimed at strengthening its financial position and focusing resources on its West African core, particularly Ghana.
