Tullow Oil‘s losses widened in the first half of the year as costs relating to a major debt refinancing and a higher tax charge outweighed a revenues boost from soaring oil prices as a result of conflict in the Middle East.
The Irish-founded oil and gas explorer, which is now focused on oilfields off the coast of Ghana following years of restructuring and asset sales, said on Monday its net loss from continuing operations increased by 26.3 per cent to $101 million (€88.7 million).
Its net financing costs rose 65 per cent to $230 million, driven by $86 million of arrangement fees relating to its both its previous and new group financing deals.
The refinancing, agreed in April, saw $1.3 billion of bonds that was due in May replaced by bonds and loans that start to mature from 2028. The deal was accepted by 99 per cent of bondholders and Glencore, a commodities trading firm that is a lender to the company.
Tullow’s tax charge increased to $127 million from $30 million a year earlier, mainly relating to its production activities in west Africa.
Total revenues rose by 21 per cent to $496 million as the average price it achieved for oil rose to $86.30 a barrel – after hedging arrangements were factored in – from $69.70 as a result of the Middle East crisis, triggered by the US and Israel attacking Iran in late February.
[ Tullow secures record $130 a barrel for Ghana oil amid crisisOpens in new window ]
Tullow expects output for 2026 to be “at the higher end” of its forecast of 34,000 to 42,000 barrels of oil equivalent a day.
The heavily-indebted company is now focused entirely on its Jubilee and TEN oilfields off the Ghana coast after selling its assets in Gabon (raising $300 million) and Kenya in a deal worth up to $120 million last year.
Tullow raised its full-year free cash flow guidance in August 2026 from between $70 million and $175 million to between $170 million and $250 million, fuelled by higher oil prices.
“The successful completion of our 2025-2026 drilling campaign marks an important milestone for Tullow with higher-than-expected production from new wells, further supporting production performance and improving the outlook for the long-term potential of our Ghanaian portfolio,” said chief executive Ian Perks.
“We are building on this momentum as we seek to create further value through our next drilling campaign in 2027-2028 and delivery of other near-term opportunities.”
While Tullow shares were down 4.4 per cent in early trading in London, they are still up 220 per cent so far this year on the back of the crucial debt refinancing and higher oil prices. It currently has a market value of £312 million.
The company was founded by Irishman Aidan Heavey in 1985 in Tullow, Co Carlow. It moved its domicile to the UK more than two decades ago, closed its Dublin office in 2020 and delisted from the Dublin stock market in 2022.