Former non-exec director Dorothy Thompson has been appointed new chairman of Tullow Oil as the driller reported interim profits of $55 million.

Formerly chief executive of Drax Energy, the bio-mass energy generator, Thompson succeeds Aidan Heavey  who has retired and has stepped down from the board.

Commenting on the half-yearly results from Tullow Oil, David Barclay, Head of Brewin Dolphin Aberdeen, said:
“Tullow’s share price has risen by nearly 50% over the last twelve months, much of which can be put down to the rising tide of the oil price lifting all boats.

“At the same time, Tullow has de-risked its balance sheet, raising capital in early 2017 to reduce debt and boosting cash flow from increased production on the TEN fields.

“The market will be looking closely at these figures in terms of guidance on production and earnings – there was good news on both fronts, with guidance increased to 86-92,000 bopd and a post-tax profit of $55 million.

“Tullow also wants to put the events of the last few years behind it and to look to the future; although, last week’s ruling against Tullow on the Seadrill rig dispute requiring provision for an additional $50 million was a nasty sting in the tail.”

Key results from Tullow Oil in half year to 25 Jul 2018

• Revenue of $905 million; gross profit of $521 million; post tax profit of $55 million; free cash flow of $401 million
• Net debt and gearing reduced to $3.1 billion and 2.0x; debt maturities extended with issue of $800 million of senior notes; facility headroom and free cash now $1.2 billion
• Three-year cost reduction programme delivers $708 million of savings versus original target of $500 million • West Africa first half 2018 working interest oil production averaged 88,200 bopd2 ; 2018 full year oil production guidance upgraded from 82-90,000 bopd to 86-92,000 bopd
• First incremental production from Ghana drilling programme expected in August; second rig due to start drilling October 2018
• Kenya Early Oil Pilot Scheme and oil trucking started June 2018; phased development project on track for sanction late 2019
• Uganda deal completion expected in coming months; Upstream and pipeline FEED and upstream ESIAs have been completed; contract awards under evaluation and overall project sanction expected around the end of 2018
• High-impact exploration campaign starts with Cormorant well in Namibia in September 2018; investing up to $150 million per year in exploration and drilling three to five high impact frontier wells annually
• 2018 capex forecast remains $460 million, includes second rig in Ghana
• Unsuccessful litigation in the English Commercial Court vs Seadrill and in arbitration with Kosmos re: West Leo rig 

Source: Scottish Energy News