Cairn Share Price: H1 Pre-tax Loss Widens

on Aug 20, 2013
Listen

iNVEZZ.com Tuesday, August 20th: Cairn Energy PLC (LON:CNE) today reported a $219 million loss after tax attributable to equity holders of the parent for the first half of 2013, compared to a profit of $37 million for the same period last year. A total of $290 million of impairments have been recognised.

First-half loss per share was 36.70 cents, as compared with profit per share of 5.23 cents last year. This year’s first half pre-tax loss has widened to $372.6 million from $50 million last year.
The group’s oil and gas assets totalled $895 million at the end of June, compared to $917 million in December last year. The decline was attributed to $78 million of unsuccessful North Sea exploration costs and impairment, $56 million transfer of a North Sea development asset to held-for-sale and $63 million of foreign exchange differences.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

eToro
**Start Investing The Social Way! >>**
FTSE 100 Watch: Mining Shares Pressure Footsie FTSE 100 Watch: Footsie Stays Flat Despite Upbeat UK and U.S. Data

FOLLOW our top traders or BET against them.
http://nvz.bz/1cgV29L
Increased administrative costs of $25 million were incurred in the group’s Stavanger and London offices which operated for the full six months. The 2012 comparatives include only two months of the Stavanger

office.
The Groups’ residual shareholding in Cairn India Limited (CIL) is around 10 percent and was valued at $1 billion as of June 30.
Simon Thomson, Cairn’s Chief Executive, said that the group would be entering “a 12 month multi-well high impact frontier exploration programme in September that will offer shareholders sustained exposure to material growth potential.”

The group is targeting its programme during the rest of 2013 and the first half of 2014 at two operated exploration wells offshore Morocco, one west of Ireland, two proposed operated exploration wells offshore Senegal and possibly a joint-venture in Greenland. The Pitu prospect, west of Greenland, could have 3.15 million BOE, the group said. A final decision whether Cairn will be partnering with Norway’s

Statoil on the project is expected by the end of the year.
Before that the group is expected to focus on its assets in the Atlantic margin, which were acquired at the beginning of this month. Through the deals Cairn has diversified its wells portfolio, which was previously focused only on India and Greenland.
!m[Edinburgh-based Energy Group Looking at Greenland ](/uploads/story/4938/thumbs/pic1_inline.jpg)
The company has identified two major risks for its future activities, especially after the start of its Morocco and Senegal drilling programmes. These are the legal uncertainties in the new counties of operation and sustainable management of risks to people and the environment.
Cairn’s management expressed confidence in the good positions of the group, estimating financial and operating risk as relevant. As of June 30 the group’s net cash plus investments in CIL totalled $2.4 billion.
**Cairn Energy’s share price was at 275.70p as of 20.08.2013, 08.34 BST.**

eToro
**Start Investing The Social Way! >>**
FTSE 100 Watch: Mining Shares Pressure Footsie FTSE 100 Watch: Footsie Stays Flat Despite Upbeat UK and U.S. Data

FOLLOW our top traders or BET against them.
http://nvz.bz/1cgV29L

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Energy & Power Stock Market