UK's Tullow Oil half-year net loss widens on one-off refinancing fees

Tullow Oil

28/09/2026 07:11

Overview
UK oil and gas producer's half-year revenue rose yr/yr; net loss impacted by refinancing fees
Free cash flow turned positive, supported by higher production and oil prices
Reserves replacement ratio reached about 380%, reflecting material reserves growth

Outlook
Tullow Oil expects 2026 production at high end of 34-42 kboepd guidance range
Company maintains 2026 capex guidance at c.$200 mln
Full year free cash flow guidance upgraded to $170-250 mln at $70-100/bbl oil price

Result Drivers
PRODUCTION OPTIMISATION - Increased production supported by new wells, high FPSO uptime, and optimisation activities reduced decline rates
HIGHER OIL PRICES - Realised oil price before hedging of $95/bbl, significantly above prior year, contributed to improved free cash flow
RESERVES GROWTH - Material reserves increase driven by licence extension, development drilling, and positive well performance

Company press release: ID:nRSb5304Wa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Miss
$496.3 mln
$537 mln (1 Analyst)
H1 Net Loss
 
$100.6 mln
 
H1 Gross Profit
 
$276.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Tullow Oil PLC is GBp15.00, about 30.4% below its September 25 closing price of GBp21.55
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 2 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)