Weak oil prices eat into Tullow revenue

Oil and gas producer Tullow Oil continued operating at a loss in the first half of the year as weak oil prices ate into its revenue.

The Africa-focused oil company, which reported its first pretax loss in 15 years in February and scrapped its dividend, reported a pretax loss of $10 million for the first six months of the year and a 35 per cent fall in revenue.

Despite technical issues which have restricted production at Tullow’s Jubilee field in Ghana, the company decided to maintain its full-year output target, surprising analysts who had expected a revision.

Oil prices have halved over the past year, requiring oil companies to tighten their belts.

Tullow Oil promised yesterday to start delivering on its $500 million three-year cost-saving programme in the second half of the year after making “significant” staff reductions. — Reuters

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