Tullow Oil H1 gross profits surge as sales revenues grow

Exploration and production firm Tullow Oil said on Wednesday that sales revenues and gross profits had grown in the six months ended 30 June as the group's turnaround gained momentum throughout the period.

Tullow Oil said interim sales revenues had risen from $727.0m to $846.0m, with a realised oil price of $87.0 per barrel, while gross profits almost doubled from $321.0m to $620.0m, and pre-tax profits shot up from $93.0m to $264.0m.

Free cash flow fell to -$205.0m from $86.0m, principally due to a $76.0m outflow stemming from an arbitration payment and a Ghana pre-emption consideration of $126.0m.

Net debt expanded from $2.29bn to $2.36bn and Tallow's gearing shrunk from 2.6x to 1.9x.

Chief executive Rahul Dhir said: "The turnaround of Tullow has gained momentum in the first half of 2022, with solid production from our West African portfolio driving stronger financial performance.

"We have a high quality, opportunity rich portfolio, a clear and disciplined growth strategy and an improving balance sheet. The board looks to the future with confidence."

Reporting by Iain Gilbert at Sharecast.com