Tullow oil, says its revenue dropped by about 34 percent for the last six months ending June 2016.The oil and gas exploration and production group says its net debt at the end of June stood at $4.7bn.
Tullow chief executive Aidan Heavy in a trading statement said the revenue fell to $541 during the period from $820 million in the first half of 2015.
The reduction in revenue has partly been attributed to lower commodity prices and reduced production in its Jubilee oil field in Ghana.
Tullow has suffered amid low oil prices, and is scrambling to shore up its balance sheet. The explorer recently announced a $300m bond auction.
Aidan Heavy says Tullow is still well placed to move forward with a restructured and more efficient business than can deliver growth from its portfolio of high quality, low cost producing, and development and exploration assets.
In April, April 2016, the President Museveni and his Kenyan counter part Uhuru Kenyata of agreed to pursue two separate crude oil export pipelines for the development of Kenya’s South Lokichar oil fields and Uganda’s Lake Albert oil fields.
The Uganda pipeline route will be through Tanzania from Hoima to the Tanzanian port of Tanga. The pipeline development is being led by Total and the Government of Uganda.
In Kenya, Tullow and its upstream partners Africa Oil and Maersk Oil, along with the Government of Kenya, are currently negotiating a Joint Development Agreement to implement the Kenya crude oil pipeline which will run from South Lokichar to the port of Lamu.
It is anticipated that for both the Kenya and Uganda pipelines, technical, environmental and social studies and tenders required will commence in the second half of 2016.
In a similar development, USE Chief Executive Officer Paul Bwiso says the stock market is snaking through tough economic times, averaging about one billion Shillings per trading day. He adds that many investors are now targeting the lucrative government bonds over equities hence the sluggish stock market.
There are 16 listed companies on the stock market, six of which are Ugandan. They are Stanbic Bank Uganda, New Vision Printing and Publishing Company Ltd, British American Tobacco Uganda, Bank of Baroda Uganda, Development Finance Company of Uganda, Uganda Clays Limited and National Insurance Corporation.
The other six companies cross-listed from Nairobi Stock Exchange are East African Breweries Limited, Jubilee Holdings Limited, Kenya Airways, Equity Bank Limited, Kenya Commercial Bank, Nation Media Group and Centum Investment Company Ltd.
To date the USE has a total turnover of 120 billion Shillings. But Bwiso says the start of the financial year usually dampens activities on the bourse.
Bwiso adds that most of the listed companies are performing rather poorly, with the usual counters- Umeme, Stanbic Bank and Development Finance Company of Uganda (DFCU) dominating the market.
Arthur Nsiku from brokerage firm African Alliance says the stock market is recovering well from the June fall