Tullow Oil plc announced a $55 million profit for 2024, marking a turnaround from its $110 million loss the previous year, as the company advanced debt reduction efforts and resolved a major tax dispute in Ghana.

The independent energy firm, focused on African oil and gas operations, also revealed plans to sell its Gabonese assets for $300 million to accelerate deleveraging.

Group revenue dipped slightly to $1.54 billion (2023: $1.63 billion), driven by lower oil prices and reduced sales volumes. However, cost discipline and operational efficiencies boosted free cash flow to $156 million, enabling net debt to fall by 10% to $1.45 billion. Adjusted EBITDAX held steady at $1.15 billion, supported by a $320 million arbitration win against Ghana’s tax authority over disputed branch profit remittance claims.

Production averaged 61,200 barrels of oil equivalent per day (boepd), down from 62,700 boepd in 2023, due to operational challenges at Ghana’s Jubilee field. Tullow plans to drill two new wells there by late 2025 to curb decline rates.

The company signed a binding agreement to sell its Gabon portfolio to state-owned Gabon Oil Company, expected to close mid-2025 pending approvals. Proceeds will further cut debt, which remains a priority as Tullow eyes refinancing its $1.3 billion senior notes due in 2026. Liquidity headroom stands at $715 million, bolstered by a $250 million revolving credit facility extension.

“We are focused on unlocking value through disciplined capital allocation and strategic partnerships,” said Interim CEO Richard Miller, who took the helm in February 2025. He emphasized Ghana’s role as a core asset, contributing 72% of 2024 production.

Audited 2P reserves dropped to 164.5 million barrels of oil equivalent (mmboe), down 23% year-on-year, reflecting Jubilee field revisions and natural declines. However, TEN field reserves rose due to cost-saving measures.

Tullow reaffirmed its net-zero emissions target for 2030, highlighting a partnership with Ghana’s Forestry Commission to generate one million tonnes of annual carbon offsets. Routine flaring at its Ghana facilities is slated to end by December 2025.

Kenya’s oil project faces delays as Tullow seeks government approval for its field development plan and a strategic partner. The asset’s carrying value fell by $145 million amid uncertainty over final investment decisions.

The company also navigates two ongoing tax disputes in Ghana, with hearings set for 2025. Meanwhile, its credit ratings remain speculative-grade (B-/Caa1), reflecting leverage concerns.

Tullow forecasts 2025 production of 50,000–55,000 boepd, factoring in a two-week Jubilee maintenance shutdown. Capital expenditure will focus on Ghana ($160 million) and West African non-operated assets ($70 million). Analysts note execution risks around debt refinancing and oil price volatility, with Brent assumptions set at $70–$80 per barrel.

Shares in Tullow, listed in London and Accra, closed flat ahead of the results. The full report and webcast replay are available on the company’s investor portal.