10th Mar 2020 09:29
(Alliance News) - Cairn Energy PLC on Tuesday said oil production increased in 2019, helping it to swing to profit.
The oil & gas exploration and development company said it was in pretax profit by USD119.5 million, versus a USD1.21 billion loss in 2018, as revenue rose to USD533.4 million from USD410.3 million.
In 2018, Cairn reported a USD713.1 million loss on de-recognition of financial assets and a USD352.2 million loss on financial assets, versus just USD1.8 million in such impacts in 2019.
The FTSE 250-listed company said net oil production averaged 23,000 barrels of oil a day in 2019, at the upper end of guidance, and ahead of 2018's 17,500 barrels of oil daily. The average realised oil price in 2019 was USD65.70 a barrel.
Brent oil was trading at USD36.12 a barrel on Tuesday, having dropped 20% over the weekend as Saudi Arabia threatened to ramp-up production, amid a dispute with Russia.
Looking ahead, Cairn said it expects net production of 19,000 to 23,000 barrels of oil daily in 2020.
"Cairn's strong operational performance in 2019 was delivered through production and cash flow generation at the top end of guidance and the group ended the year with an increased net cash position and undrawn debt facilities," said Chief Executive Simon Thomson.
In addition, Cairn said it appointed Erik Daugbjerg as an independent non-executive director with effect from May 14. Following this appointment, Todd Hunt will retire as a Cairn non-executive director.
The company said Daugbjerg has over 20 years' experience in both midstream and upstream oil and gas sectors in the US. In 2006, he co-founded Pecos Operating Co and in 2010 co-founded RSP Permian Inc.
"Erik's many years of experience in the oil and gas industry, together with a strong background in business development and corporate transactions will be an important asset to the board," said Chair Ian Tyler.
Cairn shares were trading up 1.9% in London on Tuesday at 87.00 pence each.
By Evelina Grecenko; [email protected]
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