Half Year 2024 Tullow Oil PLC Earnings Call Transcript
Key Points
- Tullow Oil PLC (XGHA:TLW) reported a 180% increase in profit after tax to $196 million, driven by higher production and realized oil prices.
- The company has reduced net debt compared to June 2023, despite negative free cash flow in the first half of the year.
- Operational performance at the Jubilee field has been strong, with around 99% uptime at the FPSO and record highs in water injection rates.
- TEN field production has exceeded expectations, averaging about 19,000 barrels of oil per day in the first half of the year.
- Tullow Oil PLC (XGHA:TLW) has made significant progress towards its net zero by 2030 goal, including a nature-based carbon offset program in Ghana.
- The J69 well at the Jubilee field has underperformed, producing significantly less than expected and impacting overall production and reserves.
- The company expects to be at the lower end of its production guidance for 2024 due to the performance of the J69 well.
- There were two losses of primary containment resulting in oil spills to the sea, although these were managed without major impacts.
- The Simba field in Gabon has been shut in due to a serious incident, impacting production until investigations and remediations are completed.
- A planned maintenance shutdown at the Jubilee field in 2025 will result in a temporary halt in production, affecting output during that period.
Good morning, all, and thank you very much for dialing into our Half Yearly Results today. We've got a very focused update with the year progressing well too, as we're delivering on our operational and financial targets, and importantly, today, you'll hear us we'll reiterate our 2024 cash flow guidance.
But before we kind of get into the results, I just wanted to take a minute and remind ourselves of our vision to build a truly unique Pan African platform that's delivering material benefits and value for our host nations and communities.
I think all of you know the scale of resources in Africa is lost, and there's a huge potential for Africa to play a very important and a growing role in the energy mix, and it's now widely acknowledged that African nations, they have the right to benefit from their natural resources.
Within this context, as you know, we have a track record of improving operations, and we've built up a pretty unique offshore operator skill set, and that's really very relevant to the opportunity
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