Cairn Energy (CNE) reported a full-year operating loss of $372m (£248m) - less than half the 2013 figure. The company also made a highly promising offshore discovery during the year in Senegal's Atlantic margin, in which Edinburgh-based Cairn holds a 40 per cent interest. But the most noteworthy event last year was the introduction of retrospective tax legislation by Indian authorities, which has restricted the group from selling its 10 per cent residual shareholding in Cairn India.
Cairn doesn't appear any closer to clarifying whether there are any further liabilities on income tax assessments filed in 2007 - the year in which the oil group floated its Indian division. In any case, the fair value of the residual holding has been reduced by a third as oil prices have slumped during the enforced delay to the sale.
On a more positive note, the Senegal discoveries identified substantial oil-bearing zones with a midpoint gross estimate of 1.28bn barrels. Cairn and its partners in Senegal, including ConocoPhillips and local player Petrosen, will submit an evaluation plan to authorities in May. This is likely to propose that three firm and three optional wells are launched in 2015.
| CAIRN ENERGY (CNE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 192p | MARKET VALUE: | £1.1bn | |
| TOUCH: | 191-192p | 12M HIGH / LOW: | 211p | 141p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 462¢* | NET CASH: | $869m | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | nil | -0.3 | -55.0 | nil |
| 2011 | nil | -1.2 | -96.0 | nil |
| 2012 | nil | -0.2 | 11.0 | nil |
| 2013 | nil | -1.1 | -93.2 | nil |
| 2014 | nil | -0.6 | -66.5 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of $562m, or 98¢ a share. £1=$1.50 | ||||
