Cairn Energy swings to FY operating loss in 2020

Exploration and development firm Cairn Energy said on Tuesday that it had swung to a full-year operating loss in 2020.

Cairn reported an operating loss of $67.0m, a marked turnaround from the prior year's operating profit of $155.0m, while losses after tax swung to $394.0m from a profit of $94.0m recorded a year earlier.

Oil and gas revenues slipped to $324.0m from $504.0m and production costs increase to $75.9m from the $68.1m recorded in 2019.

Chief executive Simon Thomson said: "As we continue to live and work with the consequences of the global pandemic, we have focused on keeping our people safe while maintaining momentum on business priorities and returning value to shareholders."

Elsewhere, Cairn agreed to offload its interests in the North Sea's Catcher and Kraken oil fields to Waldorf Production for $460.0m in cash, with both assets now entering into a natural decline phase.

Thomson added: "The divestment of our UK producing assets as they move into decline phase, will further strengthen our ability to pursue Cairn’s strategic goals and position the company robustly for the decade ahead"

Cairn also moved to acquire Shell's Western Desert assets in Egypt in a $323.0m deal.

As of 0900 GMT, Cairn Energy shares were down 5.28% at 188.20p.