Tullow Oil profits rise amid higher crude prices

Rahul Dhir, Tullow Oil chief executive, said the “strong” financial performance was also fuelled by lower expenditure and its Ghana drilling programme completed ahead of schedule.

Irish-founded oil exploration firm Tullow Oil’s half year profits increased on higher crude prices.

The company, which focuses its operations in West Africa, posted gross profit of $460m (€421m) for the first six months, compared to $351m a year earlier and its profit after tax rose from $70m last year to $196m so far in 2024.

Rahul Dhir, Tullow Oil chief executive, said the “strong” financial performance was also fuelled by lower expenditure and its Ghana drilling programme completed ahead of schedule.

In a statement, the company said that its working interest production is expected to be at the lower end of its guidance due to the underperformance of a single well which came onstream in February.

Crude prices have edged higher in the first six months of the year, getting a boost from an OPEC+ production cut extension, supply worries from escalating tensions in the Middle East and expectations of interest rate cuts from the US Federal Reserve.

West Texas Intermediate (WTI) crude oil benchmark contracts rose to around $73.6 per barrel on Wednesday, erasing earlier losses and rising for the second straight session, underpinned by persistent supply-side concerns while Brent futures rose to around $76.9 per barrel.

Additionally, there are lingering fears about a potential recession in the US and weak demand from China which could create volatility for oil prices, according to analysts from Trading Economics.

Changes in Brent eventually trickle down to impact Irish consumers at forecourt pumps.

- Additional reporting by Reuters