Tullow Oil is back in profit as founder stands down

TULLOW Oil’s founder will leave the group on a high after the Africa‑ focused explorer swung back into profit on the wave of a West African cash flow surge. Aidan Heavey stepped down as chairman of Tullow late last week, 32 years after founding the com‑ pany that is now heading towards growth after suffering a difficult debt‑ fuelled period in the wake of the oil market crash.

Its latest results reveal that Tullow’s cash flows almost doubled in the first six months of the year, compared to the same months last year, to just over $400m (£304m).

A revenue surge from projects off the coast of Ghana lifted the group to a pre‑tax profit for the first half of $55m from a $348m loss last year.

The extra cash allowed the group to cut its net debt to just over $3bn from $3.83bn, and shift its focus back towards growth. The group’s cash boom was driven by West African pro‑ duction, which climbed to an average of 88,200 barrels in the first six months of the year from an average of 81,400 barrels a day in the first half of last year.

The better than expected oil produc‑ tion rate has bolstered its estimates for 2018 as a whole to between 86,000 and 92,000 barrels a day, from its earlier target of 82,000 to 90,000 barrels.

Paul Mcdade, the chief executive, said the results are “further evidence of the progress that Tullow has made in the first half of 2018”, which provide a “firm financial foundation” for growth across three core businesses.

Mr Mcdade, who replaced Mr Heavey as chief executive in April last year, described his predecessor as a “mentor” and a “pioneer” in Africa’s oil industry. Mr Heavey was replaced as chairman by Dorothy Thompson, the former CEO of Drax Group.