Half-yearly Report Announcement for the six months ended 30 June 2012
28 August, 2012
“Re-balancing the business to deliver exploration-led growth”
The first half has seen Cairn return ~US$3.5 billion (bn) of cash to shareholders, agree a farm-out with Statoil in the Pitu exploration block in Greenland and move to re-balance the portfolio by acquiring the private Agora Oil & Gas AS (Agora) and, in August, the AIM listed Nautical Petroleum plc (Nautical) bringing near-term exploration, appraisal and development activity. The Company has also been working on new basin initiatives and is to farm-in as Operator (50%) to Foum Draa blocks 1-3 offshore Morocco.
At the half-year, the Company’s net cash position was US$927 million (m) and, following that date, it received US$371m net proceeds from the sale of a 3.5% Cairn India Limited (CIL) stake in July and it completed the Nautical acquisition in August for a net ~US$560m consideration. At year end 2012, the cash position is currently expected to be >US$500m and the Company’s residual 18.3% shareholding in CIL has a current market value of ~US$2.2 bn on the Indian Stock Exchanges.
- Return of ~US$3.5 bn cash from the completion of sale of 40% shareholding in CIL, taking total returns to shareholder to ~US$4.5 bn over five years
- Further on-market sale of 3.5% shareholding in CIL for a net cash consideration of US$371m
- Agreement to farm-down a 30.625% interest in the Pitu block in Greenland to Statoil ASA
- Acquired net 2C resources totalling ~106 mmbbls (excluding Skarjfell) from North Sea transactions
- 20% interest in Skarfjell oil discovery offshore Norway (gross 2C resource estimate 60 – 160 mmbbls)
- Post period end, frontier exploration position built in Morocco (10,000 km2) operated interest – exploration well targeted 2013
- Interpretation of 3D seismic on the Pitu Baffin Bay block and southern Greenland is well advanced
- Key frontier exploration blocks target > 4 billion barrels of Yet to Find potential
- Active North Sea exploration programme in next 16 months
Simon Thomson, Chief Executive, Cairn Energy PLC said:
“Cairn is actively re-balancing its portfolio to deliver exploration led growth.
With a strong balance sheet and the foundations for sustainable revenue generation in the coming years principally set, management attention and operational effort is focused on building a series of material exploration positions in prospective and fiscally attractive areas in order to offer investors exposure to capital growth potential through future transformational exploration. Current efforts are focused across three areas: the North Sea and Norwegian continental shelf; the Atlantic margin; and the Mediterranean.
Cairn has the financial flexibility and strong operational capability in place to support our technical, new business and commercial teams in the search for capital growth.”
|Simon Thomson||Chief Executive||0131 475 3000|
|Jann Brown||Managing Director & CFO||0131 475 3000|
|Mike Watts||Deputy Chief Executive||0131 475 3000|
|David Nisbet||Corporate Affairs||0131 475 3000|
|Patrick Handley||Brunswick Group LLP||0207 404 5959|
|David Litterick||Brunswick Group LLP||0207 404 5959|
There will be an audio webcast of the results presentation at 9am.
This can be viewed streaming on PC and Mac and also on most smart devices such as: iPhone/iPad, Blackberry and Android. Alternatively a conference call number is available.
The webcast can be accessed on the day from the Cairn Energy website homepage www.cairnenergy.com
An 'on demand' version of the webcast will be available later in the day.
The results presentation slides will be available on the website from 8:45am.
You can now listen to an ‘on-demand’ recording of the presentation by dialling +44 (0) 1452 550 000 and entering the Encore reservation number 23434118 followed by #. This will be available until 6th September 2012.
A transcript of the presentation will be available on the website as soon as possible after the event.
|Half-yearly Report Announcement||DownloadHalf-yearly Report Announcement (Half-yearly Report Announcement for the six months ended 30 June 2012) PDF 0.56MB|
|Interim Results Presentation August 2012||DownloadInterim Results Presentation August 2012 (Half-yearly Report Announcement for the six months ended 30 June 2012) PDF 4.29MB|