Don't be confused by the heavy losses and absence of revenues in the table below. For the last five years, Cairn Energy 's (CNE) business model has been exclusively about building the asset base, which in 2015 focused on its Sangomar block on Senegal's Atlantic margin.
There have been big improvements since the half year. After incorporating its SNE-2 well results, Cairn now believes it has an even chance of recovering 385m barrels of contingent (2C) oil resources from Sangomar. Furthermore, that 20 per cent upgrade excludes successful results from SNE-3, which will be reported following completion of data analysis and could be further boosted by a fourth exploration well which commenced this month.
There were upgrades elsewhere. Post-period, Cairn acquired an additional 4.5 per cent holding in the Kraken field, following the liquidation of North Sea peer FirstOil. That deal takes Cairn's working interest in the asset to 29.5 per cent and brings with it an extra 6.1m barrels of 2P (proven and probable) reserves.
Prior to these results, JPMorgan was forecasting an adjusted net loss of £96m this year, giving a loss per share of 17¢, against losses of $103m and 18¢ in 2015.
CAIRN ENERGY (CNE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 190p | MARKET VALUE: | £1.09bn | |
| TOUCH: | 189.8-190.2p | 12-MONTH HIGH: | 206p | LOW: 125p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 364¢* | NET CASH: | $603m | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | nil | -1.20 | -96.0 | nil |
| 2012 | nil | -0.20 | 11.0 | nil |
| 2013 | nil | -1.10 | -93.2 | nil |
| 2014 | nil | -0.56 | -66.5 | nil |
| 2015 | nil | -0.50 | -90.3 | nil |
| % change | - | - | - | - |
*Includes intangible assets of $559m, or 97¢ a share £1=$1.42 | ||||
