Tullow Oil sees impairment of up to $1.7 bln on lower price outlook
London. Tullow Oil said on Wednesday it was set to book $1.4-1.7 billion in impairments before tax in its half-year results, due on Sept. 9, as it follows larger rivals in lowering its oil price forecasts.
Tullow, which had a market capitalisation of $508 million on Tuesday and net debt of $3 billion as of June, added in a trading statement its 2020 cash flow was forecast to break even at current prices.
It has hedged 60% of its sales this year at a floor price of $57 a barrel and 44% of next year’s at a floor of $51 a barrel, told Reuters.