29 Sep 2020
Half-yearly Results 2020
Simon Thomson, Chief Executive, Cairn Energy PLC said:
“We have successfully managed the business through a challenging external environment, always ensuring that the safety of our people is paramount.
We took early action with significant reductions and deferrals to the capital programme. Alongside the sale of interests in both Norway and Senegal, we have realigned the portfolio and demonstrated Cairn’s continued commitment to shareholder returns.
With a strong net cash position and limited capital commitments, Cairn is well-positioned to deliver further value for shareholders.”
H1 2020 Summary
- The impact of COVID-19 has been managed safely across the business
- Net oil production averaged ~22,400 bopd, at top end of full year guidance
- Oil and gas sales revenue US$172m, average realised oil price US$40.21/bbl plus US$7.91/bbl hedging gains; average production cost US$16.3/boe
- Net cash inflow from oil and gas production US$132m
- Capital expenditure: cash outflow US$121m excluding Norway and Senegal, of which US$30m relates to activity undertaken in 2019
- Group cash at 30 June 2020 US$84m; no drawn debt
- Impairment charge of ~US$240m, with US$207m against Senegal assets and US$33m against UK producing assets, included in loss for period of US$324m
- Full year oil production guidance: 21,000 - 23,000 bopd net; targeting average production cost ~US$18/boe
- Full year forecast capital expenditure US$135m; Exploration & Appraisal US$95m, Development & Production US$40m (excluding Senegal)
- Proposed sale of Senegal interests and planned special dividend of US$250m
- Arbitration Tribunal expects to issue ruling on India tax case after the end of summer 2020
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 BST. This can be viewed on PC, Mac, iPad, iPhone and Android mobile devices. Participants on the webcast may ask a question following the presentation.
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 7am BST.
You can listen to the results presentation by dialling in to a listen only conference call at 9am BST using the below dial-in details.
United Kingdom (Local): +44 (0)330 336 9125
Access code: 1297170
A transcript of the presentation will be available on the website as soon as possible after the event.