Tullow remains in the red as weak oil prices eats into revenue

Tullow Oil PLC’s stock is down -54.95% over the past 200 days. The stock’s 50-day moving average is GBX 4.12 and its 200-day moving average is GBX 3.06.

“In the company’s 1H 2015 results, Heavey also stated that the underlying cash generation of Tullow “remains solid” and claimed that Tullow’s restructuring program, which has seen a significant workforce reduction, will deliver cost savings of “$500 million over the next three years”. The company has a market cap of 2.16B GBP and a P/E ratio of 0.

LON:TLW is now trading -0.76% lower at GBX 235.40 as of 10:50 London time. Barclays set a GBX 550 ($8.54) price target on Tullow Oil plc in a report on Monday.

The stock rating of Tullow Oil PLC (LON:TLW) was maintained by equity analysts at Cantor Fitzgerald. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and eleven have issued a buy rating to the company.

In related news, insider McDade, Paul acquired 316 shares of the company’s stock in a transaction dated Thursday, July 9th. The shares were bought at an average price of GBX 284 ($4.41) per share, with a total value of £897.44 ($1,392.89).

Tullow Oil plc is an independent oil and gas exploration and production company. The Company is focused on finding and monetizing oil in Africa and the Atlantic Margins. The Company has established a joint venture with Geo Estratos S.A.de C.V.to jointly evaluate, explore, develop, and produce hydrocarbons in Mexico to the private sector. It also had lower production in Europe because of divestments.

While oil prices have posted a modest recovery in the past six months up from a trough at the end of last year, they are still less than half what they were in the first half of 2015, hitting the exploration and production sector hard.

Tullow Oil has also set aside Sh23 billion for construction Kenya-Uganda pipeline, whose appraisal is nearly complete.