Cairn Energy Back in Black in H1

UK-based upstream player Cairn Energy swung back to profit in the first half thanks to production gains.

Net oil and gas output averaged 23,714 boe/day in the six months ending June 30, up 65% yr/yr, Cairn said in a report published on the London stock exchange on September 10. Revenues grew by 48% to $257.1mn, as average prices were almost unchanged yr/yr at $67.84/boe.

Output costs also slumped, by 31% to $16.7/boe.

Cairn posted an operating income of $60.3mn for the six months, compared with a loss of $34.5mn a year earlier. Its overall income came in at $41mn, versus a $514.7mn loss in the first half of 2018.

“As a full cycle E&P business Cairn has seen good progress in the first half of 2019 with the opportunity to develop and deliver multiple catalysts for future growth,” company CEO Simon Thomson said. “Production performance from our North Sea assets is ahead of expectations, delivering significant cash flow to reinvest in the opportunity.”

Cairn said it was still on track to take a final investment decision (FID) at its SNE project in Senegal this year, with first oil anticipated in 2022. It is also about to launch a drilling campaign off Mexico.