Capricorn Energy swings to profit, sees shareholder returns in Q2

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.”