18th Mar 2014 08:47
LONDON (Alliance News) - Oil and gas exploration company Cairn Energy PLC Wednesday said it swung to a loss in 2013 as it booked a big impairment for the Catcher fields in the North Sea, and it warned that its outlook depends heavily on its exploration programme this year and the timing of the resolution of its tax dispute in India.
The company, which currently doesn't earn any revenues, booked a loss of USD555.9 million for the year, compared with a profit of USD72.6 million in 2012, as unsuccessful exploration costs rose, it booked a big impairment for the Catcher field as resource estimates were downgraded and cost assumptions rise, as well as goodwill impairments for previous acquisitions, partly offset by tax credits.
Cairn in January said that it had become the latest international company to be contacted by Indian tax authorities, which wanted to discuss its income tax assessments for its financial year to end-March 2007. It has pledged to defend itself, saying the claim was the result of a law brought in after the year affected by the claim.
"The results of this year's exploration programme and the timing of the resolution of the Indian tax situation will inevitably shape the group beyond 2014," the company with exploration assets in the North Sea, the Atlantic Margin and the Mediterranean said in a statement.
Cairn Energy shares were down 6.4% at 183.98 pence early Tuesday, the second-biggest decline on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Capricorn Energy PLC