Cairn Energy cuts loss by a third after rationalisation

Oil explorer Cairn Energy cited rationalisation of its business as the driving factor behind a reduction in its full year losses.

The Edinburgh-based firm said its full year loss fell by almost a third to $381.1m (£252.7m), as loss per share narrowed by more than a quarter to 66.51 cents.

Loss before taxation from continuing operation narrowed 49.1% to $559.1m, while operating loss fell 57,6% to $372.3m

The FTSE 250 group said that it had undertaken "a fundamental rationalisation of the business" that means it can "operate effectively in the current low oil price environment".

Along with its sector peers, Cairn has been hit by the decline in oil prices, which has seen the price of Brent crude falling 46% over the last 12 months, but it added that it started the new current financial year in a strong position.

The oil explorer said it remained hopeful its Senegal discovery would prove a “a world class asset”.

Cairn Energy shares were down 3.08% to 192.00p at 08:31 on Tuesday.