07 Sep 2021
Half-yearly Results 2021
Simon Thomson, Chief Executive, Cairn Energy PLC said:
“Our significant acquisition in Egypt, which we expect to complete shortly, adds material gas-weighted production, low-cost, near-term growth and attractive exploration potential, in a region with strong demand trends. We intend to use our differentiated financial flexibility to add further scale to our production base and look forward to the next phase of strategic delivery.
Progress in resolving our Indian tax issue and active portfolio management leave Cairn well-positioned to deliver growth from a sustainable business, focused on generating further value and returns for shareholders.”
H1 2021 Strategic and Operational highlights
- Near term India resolution will enable further shareholder returns and acceleration of strategy: up to US$700m to be returned to shareholders via special dividend and buyback, subject to approval, with remainder retained to further enhance the producing asset base
- Securing long-term sustainable production, significant exploration potential and supporting cashflow growth: Egypt acquisition advancing to completion with transition planning underway
- Effective operational delivery: further oil find in Block 10 offshore Mexico
- Energy Transition: Net Zero roadmap developed with key senior appointments to deliver Cairn’s energy transition strategy
- Balance sheet strength and financial flexibility: Group cash at 30 June 2021 US$341m and no debt drawn following special dividend in January 2021 of US$257m
- Proposed divestment of UK North Sea producing assets: progressing towards Q4 2021 completion
- Cash outflows on capital expenditure of US$25m during first half of 2021
- Proposed capital return of up to US$700m following India resolution
- Egypt completion expected Q3 2021
- UK North Sea disposal expected Q4 2021
- Full year forecast net capital expenditure US$125m*; Exploration & Appraisal US$85m, Development & Production US$40m
- Expect to end 2021 net cash positive excluding India proceeds
*Includes US$20m for Kraken and Catcher which is refundable on sale completion
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Jonathan Milne, Linda Bain, Corporate Affairs
Tel: 0131 475 3000
Patrick Handley, David Litterick, Brunswick Group LLP
Tel: 0207 404 5959
The results presentation slides will be available on the website from 7am BST.
You can listen to the results presentation by dialling in to a conference call at 9am BST using the below dial-in details. Investors and analysts who wish to ask a question should use the conference call facility.
United Kingdom (Local): +44 (0)330 336 9126
Access code: 2150329
There will be a live audio webcast of the results presentation available to view on the website (www.cairnenergy.com) at 9am BST. This can be accessed on PC, Mac, iPad, iPhone and Android mobile devices.
An 'on demand' version of the webcast will be available on the website as soon as possible after the event. This can be accessed on PC, Mac, iPad, iPhone and Android mobile devices.
A transcript of the presentation will be available on the website as soon as possible after the event.