35% Tullow’s workers to lose jobs
Adnan Adams Mohammed
Tullow Oil Plc’s 2019 Audited Financial Report posted a combined loss. The Company’s loss after tax alone stood at US$1.6 billion for the group in 2019. Revenue was US$1.68 billion while gross profit was US$759 million.
The loss in the business has triggered the suspension of dividends while the year 2020 capex has been lowered to US$350 million.
According to the report, the group is being restructured to create an effective and efficient organization.
“As such, there will be a 35% headcount reduction”, Dorothy Thompson, Executive Chair, Tullow Oil plc, said in the financial report. Adding that, “This has been an intense period for Tullow as we have worked hard on a thorough review of the business which has led to clear conclusions and decisive actions.
“We are focused on delivering reliable production, lowering our cost base and managing our portfolio to reduce our debt and strengthen our balance sheet. Even with recent events in oil markets, Tullow’s assets remain robust: we are a low-cost African oil producer, with a strong hedging position, substantial reserves that underpin our business and a high potential exploration portfolio.”
The Group’s areas of potential investment to maintain long-term production and reserve recovery have been identified at both Jubilee and TEN.
On the outlook, the oil giant said the 2020 free cash flow forecast of $50-$75 million is at $50 per barrel.
However, 60% of 2020 sales revenue has been hedged with a floor price of $57 per barrel.
It concluded saying Jubilee Oil in Ghana is performing well after gas processing facility upgraded, increased gas offtake agreed, and sea-water injection capacity-optimized.