Shares in Tullow oil take a drop despite cut losses
Shares in Tullow Oil fell more than 5% at one stage yesterday even as outgoing chief executive Aidan Heavey said the company had "turned a corner" as it cut full-year losses.
The oil producer and explorer posted a $754.7m (£603m) operating loss for 2016, compared to a $1.09bn (£0.9bn) loss in 2015. But last year's loss was still more than the $639.4m (£511m) loss that had been expected by analysts. Tullow wrote off $723m (£578m) of exploration costs last year, bringing total write-downs to $4bn (£3.2bn) since 2014.
Excluding last year's write-off, as well as the impairment of goodwill, property and plant, the company would have turned a profit.
Mr Heavey insisted the company has now stabilised, having been hit hard by the slump in oil prices from 2014. It restructured and has its capital expenditure outlay has been slashed, partly as its huge TEN oil and gas field off Ghana came on-stream last year.
Tullow's biggest assets are located on and offshore Africa.
Mr Heavey also predicted that rising shale oil output in the US won't have any meaningful negative impact on the price of crude oil.