Cairn Energy swings to FY profit on improved revenues

Exploration and development firm Cairn Energy swung to a profit in 2019, partly thanks to improved revenues.

Cairn Energy reported a pre-tax profit of $155m on Tuesday, a marked turnaround from the $129m loss posted in 2018, while sales increased 30% to $533.4m.

Earnings per share were 16.08 cents, also a drastic improvement on the 195.59 cent loss per share recorded a year earlier.

Net oil production of 23,000 barrels of oil per day was at the upper end of guidance and ahead of the 17,500 bopd recorded at the same time a year earlier.

While Cairn said Chimera, its North Sea wildcat well, had come up dry in October, the FTSE 250-listed firm stated that reserve additions had been made in both Senegal and the North Sea and that it had also encountered exploration success alongside Eni in Mexico.

A lack of significant impairment charges in 2019 also helped the group stay in the green.

Chief executive Simon Thomson said: "Cairn's strong operational performance in 2019 was delivered through production and cash flow generation at the top end of guidance and the group ended the year with an increased net cash position and undrawn debt facilities."

As of 0830 GMT, Cairn Energy shares were up 2.80% at 87.74p.