Business
2016 Half Year Results
2016 Half Year Results.
About this update from Tullow Oil Plc
[{"type":"text","content":"\n \nRNS Number : 3212F Tullow Oil PLC 27 July 2016 \n\nTullow Oil plc - 2016 Half Year Results\n \nFirst half 2016 profit after tax of $30 million and pre-tax operating cash flow of $256 million \nTEN Project remains on budget and is on schedule for first oil in early August \nKenya exploration and appraisal campaign to re-commence in the fourth quarter of 2016 \n \n27 July 2016 - Tullow Oil plc (Tullow), the independent oil and gas exploration and production group, announces its half year results for the six months ended 30 June 2016. Details of a presentation in London, webcast and conference calls are available on page 23 of this report or visit the Group's website www.tullowoil.com.\n \n \nCOMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE, SAID:\n\"The start of production from the TEN field in early August will be transformational for the Group allowing us to significantly increase our net production and begin the process of deleveraging our balance sheet. This project has remained on schedule and on budget since the day the Plan of Development was signed and demonstrates our ability to deliver complex projects of this nature. The benefits of last year's cost-cutting programme are evident in the financial results, the significant TEN capital expenditure is largely behind us and we have also made good progress on the Jubilee Turret Project. Tullow is therefore well placed to move forward with a restructured and more efficient business that can deliver growth from its portfolio of high quality, low cost producing, development and exploration assets.\" \n2016 Half YEAR RESULTS HIGHLIGHTS \n· 1H profit after tax of $30 million. Lower revenues on prior year as a result of lower commodity prices and reduced Jubilee production, which is the subject of an insurance claim, were partially offset by significantly lower costs and write-offs.\n· Net debt at 30 June 2016 of $4.7 billion with facility headroom and free cash of $1.0 billion. Additional headroom of $300m added through a successful Convertible Bond issue on 6 July, further diversifying sources of debt. \n· Mark-to-market value of oil hedges of over $300 million at 30 June 2016; 38,500 bopd of second half 2016 oil production hedged at average floor price of $74/barrel.\n· TEN ...