Tullow Oil expects full-year production at the top end of its guidance after a strong first half in Ghana, although refinancing costs pushed it deeper into the red.
The Ghana-focused oil producer pumped an average of 43,700 barrels of oil equivalent a day in the six months to June, up from 40,600 a year earlier.
That keeps it on course for the high end of its 34,000 to 42,000 range, as flagged in a June trading update.
Revenue rose to $496 million from $411 million, helped by a realised oil price of $95 a barrel before hedging, against $71.40 a year earlier.
Hedging, which locks in prices to protect against falls, cut revenue by $47 million.
Tullow made a $27 million pre-tax profit, but a $127 million tax charge left it with a $101 million loss after tax, compared with $80 million a year earlier.
One-off refinancing fees also weighed on the bottom line.
Cash turns positive
Free cash flow, the cash left after costs and investment, came in at $4 million against an outflow of $188 million a year earlier.
That was after $64 million of interest payments and $70 million of one-off costs linked to the refinancing completed in April.
Net debt fell to $1.4 billion from $1.6 billion a year earlier.
Tullow has also recovered all the historic gas payments owed by the Government of Ghana, including $73 million in the first half.
It reiterated full-year free cash flow guidance of $170 million to $250 million, assuming oil at $70 to $100 a barrel.
Reserves up
Proven and probable reserves rose to 121.7 million barrels of oil equivalent from 100.2 million at the end of 2025.
That means Tullow replaced about 380% of what it produced, helped by the extension of its Ghanaian licences to 2040.
It has signed a rig contract for up to 10 wells in a 2027 to 2028 drilling campaign in Ghana.
Chief executive Ian Perks said the company was "increasingly confident" in its ability to unlock the full value of its assets.
Tullow will not pay an interim dividend.
