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Cairn Energy swings to annual loss on pandemic-led disruptions; to acquire Shell's Egypt portfolio

By BFN News | 08:25 AM | Tuesday 09 March, 2021

Cairn Energy swung to an annual loss for the year as the pandemic impact dented operations. The company also said it had agreed to acquire Shell's Western desert assets in Egypt, and sell its UK North Sea producing assets for US$323 million. Both transactions were expected to be completed in 2021. For 2020, pre-tax losses from continuing operations were $117.4 million compared with a profit of $119.5 million year-on-year as revenue fell to $394.7 million from £533.4 million. Net oil production averaged just over 21,000 bopd, in line with guidance, but below the 23,000 bopd in 2019. 'Drilling of the Catcher North and Laverda development wells, originally planned for the year, have been delayed due to COVID-19,' the company said. Oil and gas sales revenue fell to US$324 million from US$504 million and average realised oil price of US$42.56/bbl. During the year Cairn sold its Norwegian subsidiary and its interests in Senegal. Together the transactions resulted in a combined loss of U$276.3 million. Looking ahead, the company said forecast Cairn WI 2021 production of 33,000 to 38,000 boepd. At 8:25am: (LON:CNE) Cairn Energy PLC share price was 0p at 143.1p Story provided by

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