StockMarketWire.com - Cairn Energy swung to a half-yearly profit and lifted its guidance on oil output following a surge in revenue thanks to oil and gas production that topped expectations.

Full year oil production guidance was upgraded to a range of 21,000 to 23,000 barrels of oil per day (bopd) from 19,000 to 22,000 bopd, with average production cost reduced to US$18 per barrel from US$20.

For the six months to 30 June, the company reported a pre-tax profit of $43.4m, compared with a loss of $602.9m a year earlier as revenue increased 48% to $270.3m.

Combined net oil and gas production was ahead of 2019 guidance at about 23,700 barrels of oil equivalent per day (boepd), the company said.

Oil and gas sales revenue was $257m at an average realised price $68 per barrel and at an average production cost $17 per barrel.

Full year forecasts for capital expenditure was US$295m, exploration & appraisal us$165m and development & production $130m.

'Production performance from our North Sea assets is ahead of expectations, delivering significant cash flow to reinvest in the portfolio. The SNE development in Senegal, where FID is expected in H2, remains on schedule for first oil in 2022,' the company said.

'Our drilling programme is about to commence offshore Mexico, where Cairn has built a material footprint in one of the world's most prolific basins.'


At 8:40am: [LON:CNE] Cairn Energy PLC share price was +13p at 190.3p



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