Cairn Energy confirms first half production at top end of guidance

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Cairn Energy PLC (LON:ENQ) announced an average first half production rate of 22,400 barrels oil per day, marked at the top end of its range for full year guidance.


The North Sea firm maintains this guidance at 21,000 to 23,000 bopd, and, noted that its targeted average production cost is pitched at US$18 per barrel.


It generated US$171mln of oil and gas sales revenue, with a realised average oil price of US$40.21 per barrel.


READ: Cairn to sell Sangomar assets to Woodside


Cairn reported a US$292.1mln operating loss for the half, and a US$323.5mln loss attributable to equity holders. It included a US$240mln impairment charge – comprising US$207mln against assets in Senegal and US$33mln against producing assets in the UK.


The company ended the six-month period with US$84mln of cash and had no drawn debt.


“We have successfully managed the business through a challenging external environment, always ensuring that the safety of our people is paramount,” said Simon Thomson, chief executive.


“We took early action with significant reductions and deferrals to the capital programme. Alongside the sale of interests in both Norway and Senegal, we have realigned the portfolio and demonstrated Cairn’s continued commitment to shareholder returns.”


Thomson added: “With a strong net cash position and limited capital commitments, Cairn is well-positioned to deliver further value for shareholders.”

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