Tullow reports surprise first half profit to beat expectations

Africa-focused oil explorer and producer Tullow beat the oil market blues with an unexpected first-half profit of $24m, beating expectations and lifting the shares 3% in early Wednesday trade.

The result came despite a 34% plunge in revenues to $541m, although this was also lower than expected.

Chief executive Aidan Heavey said the start of production next month from Tullow's TEN field in Ghana would be “transformational” for the group allowing it to “significantly increase our net production and begin the process of deleveraging our balance sheet”.

TEN will increase Tullow's group net production by around 60% when it reaches facility capacity around the end of 2016, the company said.

“Tullow is well placed to move forward with a restructured and more efficient business that can deliver growth from its portfolio of high quality, low cost producing, development and exploration assets,” he said.

Tullow shares were up 3.13% to 205.2p at 1005 BST.