Tullow Oil has ruled out any significant impact of the mid-year loss after tax on its Ghana operations.
The oil company maintains that its strategy will keep it above the challenges by the end of the year.
Tullow in its first half results posted a loss after tax of about 300 million dollars.
Consequently, the oil giant recorded a loss after tax of about 600 million dollars at the end of 2016.
This is partly attributed to the declining global oil prices.
But addressing the media, the General Manager of Tullow, Charles Darku said although the outfit has been affected by the dip, its end of year production targets will least be affected.
“Well with our dividends as you know we are seeing dividend payments around reports that we had. But clearly, the industry has suffered. With the huge price waive, it affected a lot of companies in the industry and we are probably not the only ones in this position”, he said.
Mr. Darku added, “Certainly it’s a matter of concern to us because we need to fulfill the aspirations of our shareholders and as soon as we fulfill that we will be in a better situation.”
Tullow defers payment of dividends to shareholders
Tullow has not paid its shareholders dividends for quite some time now.
According to Tullow, the decision follows current financial constraints it is facing.
Tullow which is listed on three stock exchanges including the Ghana Stock Exchange, in its 2016 financial report recorded a drop in its profits as compared to the previous year 2015.
Tullow’s profits declined by eight percent between 2015 and 2016.
The figure dropped from 591 million dollars to 546 million dollars between the one year period.
By: Jessica Ayorkor Aryee/Anita Arthur/citibusinessnews .com/Ghana