Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- Tullow Oil PLC (LON:TLW) shares plunged 17.4% on Wednesday after the independent oil and gas producer reported a first-half loss and lowered its free cash flow guidance, highlighting ongoing production challenges at its flagship Jubilee field in Ghana.
The company posted a loss of $61 million for the first half of 2025, missing analyst expectations of a $76 million profit. Revenue fell to $524 million, 13% below forecasts of $604 million, as production issues and asset sales impacted performance.
First-half production averaged 50,000 barrels of oil equivalent per day (boepd), including 7,100 boepd of gas, down from 63,700 boepd in the same period last year.
The company narrowed its full-year production guidance to the lower end of 40,000-45,000 boepd, reflecting the recent sale of its Gabonese assets.
"Our 2025 strategic priorities remain clear: refinancing our capital structure, optimizing production, increasing reserves, and completing the sale of our Kenyan assets, having already realized $300 million proceeds from the sale of our portfolio of assets in Gabon," said Richard Miller, Chief Financial Officer and Interim Chief Executive Officer.
Tullow’s flagship Jubilee field in Ghana has underperformed, with gross oil production averaging 60,900 barrels per day in the first half, down 30% from 87,000 barrels per day in fiscal 2024.
The company cited "higher than expected water cut from certain wells" that impacted riser stability on the eastern side of the field.
On a positive note, Tullow has brought its first 2025 Jubilee well online with "better than expected net pay" and plans to drill a second production well by year-end, followed by four more wells in 2026.
The company also signed a memorandum of understanding with Ghana to extend its production licenses for both Jubilee and TEN fields to 2040.
Tullow reduced its 2025 free cash flow guidance to $300 million from $400 million previously, though it maintained its year-end net debt target of approximately $1.1 billion. First-half net debt rose to $1.64 billion from $1.45 billion at the end of 2024.
"In Ghana we have already taken actions to address the recent underperformance at Jubilee, with further optimization potential identified," Miller added. "We have recommenced drilling and have successfully completed and brought onstream the first of two planned 2025 production wells at Jubilee."
The company completed the sale of its Gabonese assets for $307 million in July and signed an agreement to sell its Kenyan assets for at least $120 million, as it focuses on deleveraging its balance sheet ahead of refinancing its capital structure.