Tullow Oil shares plummeted on Monday by more than half after the commodity giant cut production targets and suspended chief executive officer, Paul McDade dividends and quit with immediate effect.
Weak performance at Tullow’s flagship Ghana oil sites has seen a record low share price on Monday and production will be hit over the next year. In early morning trading share fell 57.2% to 60.4p
Tullow are expecting to produce between 70,000 and 80,000 barrels per day which is lower than the expected 87,000 for 2019.
Dorothy Thompson has been appointed as executive chair of the business, she said, “I would like to thank Paul and Angus for all their hard work and dedication to Tullow over many years.
“The board has, however, been disappointed by the performance of Tullow’s business and now needs time to complete its thorough review of operations.
“Despite today’s announcement, the board strongly believes that Tullow has good assets and excellent people capable of delivering value for shareholders.”
Russ Mould, investment director at AJ Bell said, “The fall from grace at oil firm Tullow is about as heady as the ascent which once saw the company reach the ranks of the FTSE 100.
“You know an update is bad when it is accompanied by the immediate departure of senior management and this production downgrade is a real disaster.”