Energy analysts are calling on international oil companies to enhance operational efficiency and ramp up production in the face of declining profitability, following Tullow Oil Plc’s announcement of a $61 million post-tax loss for the first half of 2025.

The sharp downturn marks a significant reversal from the $196 million profit the company posted during the same period in 2024. The loss has been attributed to falling oil prices, reduced production volumes, and rising maintenance costs.

Speaking to Citi Business News, Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy, urged oil firms—particularly Tullow—to intensify efforts to boost output and streamline operations.

“Both national and international oil companies must focus on operational efficiency and increasing production if they want to stay profitable. With oil prices unlikely to rise significantly in the near term, flat production will lead to shrinking revenues. Continued losses could eventually push some firms into liquidation,” he cautioned.

Tullow’s interim financials as of June 30, 2025, show net debt at $1.6 billion, a slight improvement from $1.7 billion a year ago. However, the company’s liquidity headroom has narrowed to just $0.2 billion, down from $0.7 billion in mid-2024. Cash gearing stood at 1.9 times net debt to EBITDAX—2.1 times when excluding operations in Gabon—down from 2.3 times at the end of last year.

Despite the challenges, Tullow’s Chief Financial Officer and Interim CEO, Richard Miller, reiterated the company’s commitment to its strategic objectives. “We remain focused on refinancing our capital structure, optimising production, growing reserves, and managing costs,” Miller said.