Tullow Oil Swings to $61M Loss in H1 2025, Bets on Ghana’s Jubilee Comeback to Revive Fortunes

Tullow Oil Swings to $61M Loss in H1 2025, Bets on Ghana’s Jubilee Comeback to Revive Fortunes

Tullow Oil Plc has reported a $61 million loss after tax for the first half of 2025, a sharp reversal from the $196 million profit posted in the same period last year. The slump reflects a triple blow of lower oil prices, reduced output, and tighter liquidity, forcing the company to lean heavily on its Ghana operations for a turnaround.

Revenue tumbled 31% to $524 million from $759 million in H1 2024, with average realized prices dropping to $69.0 per barrel (after hedging) compared to $77.7 last year. Gross profit halved to $218 million, down from $460 million.

The numbers look even weaker after stripping out the now-sold Gabon assets:

• Revenue: $411 million (from $666 million)

• Gross profit: $165 million

• Loss after tax: $80 million (vs $106 million profit in 2024)

 Jubilee Struggles and Strategic Reset

Tullow’s flagship Jubilee field in Ghana bore the brunt of the production hit, with maintenance downtime and lower liftings adding to the pain.

“We have already taken actions to address the recent underperformance at Jubilee, with further optimisation potential identified,” said Richard Miller, Tullow’s CFO and interim CEO.

The company has restarted drilling and already brought the first of two planned 2025 production wells onstream, delivering better-than-expected net pay. Plans for Q4 include an Ocean Bottom Node seismic survey to improve reservoir mapping and recovery efficiency.

Cash Burn, Debt Pressures, and Refinancing Push

Free cash flow stayed deep in the red at $(188) million, wider than the $(126) million outflow last year. Capital expenditure fell to $103 million, but decommissioning costs rose slightly to $13 million.

Tullow’s net debt edged down to $1.6 billion (from $1.7 billion in June 2024), but cash gearing worsened to 1.9x net debt/EBITDAX—and 2.1x without Gabon proceeds. Liquidity headroom shrank to just $200 million, compared with $700 million last year, underscoring the urgency of debt refinancing.

🇬🇭 Ghana at the Core of Recovery Strategy

Despite the financial squeeze, Ghana remains Tullow’s growth anchor. In a notable win, the company signed an MoU with the Government of Ghana to extend production licences for both the Jubilee and TEN fields to 2040.

“This agreement is a significant milestone that increases recoverable reserves and unlocks additional value from our assets in Ghana,” Miller noted.

Outlook: Balancing Risk and Reward

The road ahead will test Tullow’s ability to juggle production recovery, debt refinancing, and cost discipline in a volatile oil market. Its $300 million Gabon sale has streamlined the portfolio, but execution in Ghana will decide if H2 2025 marks a rebound or deepens financial strain.

“In the second half of the year, we are focused on refinancing our capital structure, production optimisation, and streamlining our cost base,” Miller said.

Last Updated on August 7, 2025 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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