Cairn Energy shares dip as it swings into loss

Cairn Energy (LON: CNE) has posted a $324m (£251.8m) loss for the first six months of the financial year.

After being hit with $240m worth of fines, the Edinburgh-based company swung into a loss despite producing the top-end of its full-year guidance.

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

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

The FTSE 250 company posted revenues of $172m (£133.64m) for the six months ended 30 June. Average oil prices fell from $67.84 a year earlier to $40.21 per barrel.

Cairn Energy shares (LON: CNE) are trading -2.04% at 137,63 (1003GMT).

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.