Tullow shares crash after cutting forecasts and ousting boss

Marco Green
December 10, 2019

London-listed Tullow Oil (LON:TLW) saw its shares tank by more than 60 percent midday in Europe on Monday, after the Africa-focused oil explorer and producer slashed production guidance and suspended dividend amid poor production results and as its chief executive stepped down with immediate effect.

Shares in the company nearly halved in value in early trade as exploration director Angus McCross also resigned and the company cut its 2020 production forecast to 70,000 - 80,000 barrels of oil per day (bopd) on the back of continuing problems at its Ghana operations.

In Kenya, Tullow Oil also has to reach an FID on field production.

Tullow Oil, a British oil company, tanked on Monday morning after the company announced the resignation of its CEO and exploration director as well as cutting its production guidance.

Tullow reset its production outlook and is expected to produce 87,000 barrels of oil per day (bopd) this year, while lower production in 2020 of between 70,000 and 80,000 bopd, as it undertook a review of its production performance issues.

In a conference call, the company said it was open to receiving offers to acquire the company at the proper value.

Thompson said the board had been "disappointed" by Tullow's recent performance and would provide a full financial and operational update with the company's full year results on 12 February 2020.

Dorothy Thompson has been temporarily installed as executive chair as the hunt begins for replacements, Tullow said in a statement.

"Investors may well agree that a reset is the correct approach, although that is unlikely to prevent another huge sell-off today", the financial services company said in a note.

Other reports by Click Lancashire

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