10 Mar 2020
Full Year Results 2019
Simon Thomson, Chief Executive Officer, Cairn Energy PLC said:
"Cairn’s strong operational performance in 2019 was delivered through production and cash flow generation at the top end of guidance and the Group ended the year with an increased net cash position and undrawn debt facilities.
A significant milestone was achieved in Senegal with a Final Investment Decision taken for the Sangomar development. Reserve additions were made in both Senegal and the North Sea and the Company encountered exploration success alongside Eni in Mexico.
The sale of Cairn’s Norwegian business, combined with exits from exploration positions in Ireland and Nicaragua, demonstrate continued focus on capital allocation as the company seeks to generate further value for shareholders on a sustainable basis."
- Net oil production averaged ~23,000 bopd, at upper end of guidance (2018: 17,500 bopd)
- Oil and gas sales revenue US$504m (2018: US$396m), average realised oil price US$65.70/bbl; average production cost US$17.4/boe
- Net cash inflow from oil and gas production US$390m
- Capital expenditure was US$242m*
- Year end Group cash US$147m, excludes proceeds from sale of Capricorn Norge of ~US$108m, completed in February 2020
- Operating profit US$155m (2018: Operating loss US$129m)
- Net impairment reversal of US$68m (2018: charge of US$166m): Reversal of US$147m Kraken impairment, offset by US$79m goodwill impairment
- Increase 2P reserves by 150% to 142 mmboe
- Estimated net production of 19,000 to 23,000 bopd; targeting average production cost <US$20/boe
- Forecast capital expenditure ~US$615m
- Senegal – Sangomar field development targeting first oil 2023, gross production 100,000 bopd
- Mexico – two further non-operated exploration wells planned
- India Arbitration - Tribunal indicated it expects to be in a position to issue the Award in summer 2020; Cairn continues to have a high level of confidence in merits of its claims
*Net of US$27m tax refund and US$21m Nova working capital reimbursement
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Linda Bain, 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.