Cairn Energy swings to loss amid asset write downs, but expects to ramp up production in 2019
Source - SMW
Cairn Energy swung to an annual loss Tuesday as asset write downs at its Kraken operations and its investments in India weighed down performance.
For the 12 months ended 31 December, Cairn reported pre-tax losses of $1.26bn compared with a profit of $272.8m.
The company recorded a wider operating loss of US$182m from $105.2 a year earlier, which it blamed on the impairment of Kraken following downward revision in reserves.
Cairn produced 17,500 barrels of oil equivalent for the year.
Oil and gas sales revenue were $396m at an average realised price of US$68 per boe and average production cost was US$20.5 per boe for the year ended December 2018.
Capital expenditure for the year was $252m, below the $335m seen a year earlier.
For 2019, the company estimated net production of 19,000 to 22,000 bopd; average production cost US$20/bbl and capital expenditure of about US$300m.
'Cairn plans a material exploration programme in 2019 targeting a billion barrels of gross resources, supported by cash flow from our production base,' the company said. 'With active development projects within the portfolio, we look forward to additional sustained production and cash flow generation over the long term.'
At 8:53am: (LON:CNE) Cairn Energy PLC share price was -3.85p at 170.85p