Capricorn Energy swings to profit, sees shareholder returns in Q2

Capricorn Energy swung to an annual profit, boosted by the resolution of its tax dispute with the Indian government and said it hoped to return the refund to shareholders in the second quarter.

The UK-listed company, formerly known as Cairn Energy, posted a pre-tax profit of $873.7m compared with a loss of $157.2m a year earlier. It received $1.06bn from India.

Revenue rose to $57.1m from $0.4m the year before. The company reported an operating loss of $131m from continuing operations compared with a $130m los in 2020.

Capricorn said it expected to return $500m to shareholders in the second quarter via a tender offer alongside an ongoing share repurchase programme of up to US$200m, both subject to shareholder approval.

Chief executive Simon Thomson said the company’s newly-acquired Egypt assets were already delivering production growth and emission reductions.

“We also retain the balance sheet capacity to further expand the production base through value-accretive acquisitions,” he said.

“We look forward to continuing to deliver our strategic aims in 2022 with a strong commitment to safety, social responsibility and our pathway to net zero carbon emissions by 2040.”