Tullow Oil H1 gross profits surge as sales revenues grow

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