12 Mar 2019
Full Year Results 2018
Simon Thomson, Chief Executive Officer, Cairn Energy PLC said:
Cairn plans a material exploration programme in 2019 targeting a billion barrels of gross resources, supported by cash flow from our production base. With active development projects within the portfolio, we look forward to additional sustained production and cash flow generation over the long term.
Cairn offers shareholders multiple catalysts for value creation. Our financial flexibility and continued focus on capital discipline ensure that the company remains strongly positioned to deliver an active programme.
- Combined net production averaged ~17,500* boepd
- Oil and gas sales revenue US$396m, average realised price US$68 boe**; average production cost US$20.5 per mmboe
- Net cash inflow from oil and gas production US$229m
- Capital expenditure: cash outflow of US$252m***, remaining cash outflows post year end US$30m
- Year end Group cash US$66m; US$85m drawn under US$575m RBL facility
- Operating loss US$182m from the impairment of Kraken following downward revision in reserves; net loss after tax US$1.1bn resulting principally from write down of Cairn’s investments in India
- Estimated net production of 19,000 to 22,000 bopd*; average production cost US$20/bbl
- Forecast capital expenditure US$300m***
- Senegal – SNE field development first phase on schedule. Targeting first oil 2022, gross production 100,000 bopd
- Norway – Nova field development on schedule. Targeting first oil 2021, peak gross production 50,000 bopd
- UK and Norway – up to four exploration wells (three Cairn operated) planned, targeting ~500 mmboe. The first well in the programme, Presto, spudded on March 1
- Mexico – three exploration wells (two Cairn operated) planned targeting ~500mmboe
- Hearings for Cairn’s arbitration claim against India concluded in 2018; drafting of the award by the Tribunal is ongoing
*Before FlowStream’s production entitlement of ~1,360 bopd in 2018; expected to be 1,350 to 1,575 bopd in 2019
**Before hedging costs of US$1.34 boe
***Net of Norwegian tax refund
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Linda Bain/Christian Goodbody, Corporate Affairs
Tel: 0131 475 3000
Patrick Handley, David Litterick, Brunswick Group LLP
Tel: 0207 404 5959
There will be a live audio webcast of the results presentation available to view on the website (www.cairnenergy.com) at 9am GMT. This can be viewed on PC, Mac, iPad, iPhone and Android mobile devices.
An 'on demand' version of the webcast will be available on the website as soon as possible after the event. This can be viewed on PC, Mac, iPad, iPhone and Android mobile devices.
The results presentation slides will be available on the website from 7:00am GMT.
You can listen to the results presentation by dialling in to a listen only conference call at 9am GMT using the below dial-in details.
UK, local: +44 (0)330 336 9125
A transcript of the results presentation will be available on the website as soon as possible after the event.