Tullow Oil Narrows Full-Year Production Guidance

Tullow Oil, an Africa-focused oil producer, has adjusted its full-year production guidance following a significant decrease in pretax profit during the first half of the year, mainly attributed to lower realized oil prices.

Revised Production Expectations

In a statement on Wednesday, the company announced that it now anticipates a daily production range of 58,000-60,000 oil-equivalent barrels for the year. This revision is primarily a result of the Jubilee field's performance falling slightly below expectations in the first six months and the delayed start-up of Jubilee South East. The previous production guidance for 2023 was between 58,000-64,000 boe/d.

Decline in Pretax Profit and Revenue

Tullow Oil's pretax profit for the first half of the year declined to $217.2 million, compared to a restated figure of $560.5 million during the same period last year. Revenue also decreased from $858.6 million to $776.9 million, attributed to a drop in realized oil prices from $86.5 to $73.3 per barrel.

Group Production and Outlook

Average group production during this period was approximately 53,500 oil-equivalent barrels per day, as previously reported. Despite the challenges faced in the first half of the year, Tullow Oil maintained its full-year guidance for capital expenditure, free cash flow, and net debt.

These restated figures are a result of a change in accounting policy.