Tullow Oil expects profits to halve in first half year of 2015 after falling oil prices

Fuel producer Tullow Oil felt the burn of the falling oil prices and said it expects its profit over the first six months of 2015 to fall by 57.14%.

The company announced on 1 July that it expects profit to fall to $300m (€270m ,£191m) and said revenue is likely to fall by 38.45% to $800m.

In the second half of its 2014 financial year, the company announced a string of high one-off costs, which resulted in an operating loss of $1.97bn.

The company is now reporting high expenses again, such as a $250m payment to settle a dispute with the Ugandan government. It did, however, announce that its production levels in West Africa would increase from up to 68,000 barrels per day to up to 70,000 bpd.

The oil price suffered a decline because of high production levels and the company reported that the realised post-hedge oil price in the first half year of 2015 was down by 33% to $71.4 compared to the first half year of 2014.