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Tullow Oil warns of up to $1.7bn first-half impairment charge

By BFN News | 09:24 AM | Wednesday 29 July, 2020

Oil producer Tullow Oil warned that it expected to post a first-half impairment charge of up to $1.7bn to reflect a reduction in its oil-price forecasts. The company also narrowed its full-year output guidance to between 71k and 78k barrels of oil per day after it produced 77.7k bopd in the first half, in line with expectations. Tullow cut its long-term oil price assumption to $60 a barrel, down from $65. It cited that a lower near-term price forecasts, for guiding for impairment and exploration write-offs in the range of $1.4bn-to-$1.7bn, before tax. Revenue for the first half was expected to be about $0.7bn, with net debt at the end of June expected at around $3.0bn. Tullow Oil said its liquidity headroom and free cash were expected to be about $0.5 billion, with full-year free cash flow forecast to break even at the current forward curve. 'Despite the challenging external environment in the first half of the year, Tullow has performed well; delivering production in line with forecast, agreeing the sale of the Ugandan assets and re-shaping the group's structure and cost base,' chief executive Rahul Dhir said. 'In the second half of 2020 our focus will remain on continuing to deliver safe and reliable production from West Africa, reducing debt and building a cost effective and efficient organisation that can compete in a low oil price environment.' At 9:24am: (LON:TLW) Tullow Oil PLC share price was -1.33p at 26.64p Story provided by

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