Tullow oil shares up as crude slumps

Shares in Tullow Oil were up by more than 12% in London for much of yesterday’s trading session, hitting a two- month high in the process, as the Irish-founded explorer issued an upbeat trading update and said it is financially protected against the continually weakening oil price environment.

Ahead of annual results next month, Tullow said its 2015 revenues amounted to $1.6bn, net debt was reduced to $4bn, gross profit amounted to $600m and it has ‘financial headroom’ of $1.9bn.

The company — which last year targeted $500m in cost savings over a three-year period — said its hedging position provides significant protection for future revenues and cash flows.