Tullow: Strong momentum despite loss

Net profits down 12 percent year-on-year.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   July 30, 2014 at 9:59 AM

LONDON, July 30 (UPI) -- Tullow Oil said Wednesday it was in a good position to end 2014 on a high note because of strong production gains in Africa despite poor financial results.

Tullow Chief Executive Officer Aidan Heavey said in a statement his company made good progress in African basins, particularly in Kenya and offshore Ghana.

"With strong revenues and cash-flow from our existing production and a well funded and diverse balance sheet, Tullow is well placed for the remainder of this year and into 2015," he said in a statement.

The company said second quarter net profits of $673 million were 12 percent lower year-on-year. The company attributed the sharp drop to write-offs of exploration costs.

In early July, the London-based oil and gas producer said it was expecting a $415 million write-off for exploration expenses in European and frontier African basins.

Despite the loss, the company boasted of its success in West African basins, where it produced an average 63,900 barrels of oil equivalent per day. For the year, it expects on average 66,000 boepd.

For its giant Jubilee field off the coast of Ghana, the company said it expects full year production of 100,000 barrels per day.

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