Cairn Energy in $1.2bn loss amid India tax dispute

Edinburgh-based oil and gas company Cairn Energy on Tuesday reported a $1.2 billion pre-tax loss on continuing operations amid non-cash writedowns connected to a long-running tax dispute with the Indian government.

Cairn had warned on Monday that a judgment on the case is now not likely until late 2019.

Cairn also said it posted an operating loss of $182 million from the “impairment” of the Kraken field in the North Sea following Cairn’s “downward revision in reserves” for the field.

Cairn’s shares have fallen about 10% in the last 48 hours.

Cairn’s 2018 revenue, however, surged to $410.3 million from $33.3 million in 2017.

On the 2018 results, Cairn CEO Simon Thomson said: “Cairn plans a material exploration programme in 2019 targeting a billion barrels of gross resources, supported by cash flow from our production base.

“With active development projects within the portfolio, we look forward to additional sustained production and cash flow generation over the long term.

“Cairn offers shareholders multiple catalysts for value creation.

“Our financial flexibility and continued focus on capital discipline ensure that the company remains strongly positioned to deliver an active programme.”