Tullow Oil lowers FCF guidance on payment delays

Tullow Oil said free cash flow was now expected to be between $150.0m and $200.0m, down from previous expectations of $200.0m and $300.0m.

The London-listed group stated the reduction was principally a result of payment timing, most notably delayed incremental payments from Jubilee now expected in early January 2025 and overdue gas payments from the Government of Ghana.

Tullow added that year-to-date production had average 62,000 barrels of oil equivalent per day, including 6,500 barrels of gas per day, in line with guidance. It also kept its FY production forecast unchanged at roughly 62,000 barrels per day.

Chief executive Rahul Dhir said: "Our cash generative business enables us to continue our deleveraging progress. This has been achieved despite underperformance at the Jubilee field, which has been offset in part by strong performance at TEN, lower capital intensity and a continued focus on cost management.

"We are well positioned to optimise our capital structure and look forward to progressing plans to address our remaining debt maturities."

As of 0940 GMT, Tullow shares were down 10.66% at 20.37p.

Reporting by Iain Gilbert at Sharecast.com