Correction to Preliminary Results

RNS Number : 0127A

Cairn Energy PLC

23 March 2012

 



For Immediate Release                                                                                               23 March 2012

CAIRN ENERGY PLC ("Cairn")

CAIRN ENERGY PLC PRELIMINARY RESULTS: CORRECTION TO EARNINGS PER SHARE ('EPS') DISCLOSURES

Cairn announced its preliminary results for the year ended 31 December 2011 on 20 March 2012.  EPS calculations for 2011 and 2010 were performed after retrospectively adjusting the weighted average number of shares in issue for the full share consolidation in February 2012.

It has subsequently been identified that the extent of the retrospective adjustment should be limited to the change in the number of ordinary shares outstanding without a corresponding change in resources of the business.  Where a share consolidation takes place in conjunction with a return of cash to shareholders, there is a reduction in resources and this should be excluded from any adjustment made.

The impact of this correction on the EPS figures included in the preliminary results statement is set out below.

Income statement

	Announced			Corrected
	2011	2010 (restated)		2011	2010 (restated)
Earnings per ordinary share - basic (cents)	742.64	144.72		330.93	64.41
Earnings per ordinary share - diluted (cents)	740.86	143.72		330.58	64.10
Loss per ordinary share - basic from continuing operations (cents)	(215.39)	(55.26)		(95.98)	(24.59)
Loss per ordinary share - diluted from continuing operations (cents)	(215.39)	(55.26)		(95.98)	(24.59)

Discontinued operations note

	2011	2010 (restated)		2011	2010 (restated)
Earnings per share - basic (cents)	958.03	199.98		426.91	89.00
Earnings per share - diluted (cents)	955.73	198.76		426.45	88.65

Earnings per Ordinary Share note

	2011	2010 (restated)		2011	2010 (restated)
Weighted average number of shares	553,061	551,027		1,240,092	1,235,533
Less weighted average shares held by ESOP and SIP Trusts	(829)	(2,127)		(829)	(2,127)
Basic weighted average number of shares	552,232	548,900		1,239,263	1,233,406
Dilutive potential ordinary shares:
Employee share options	1,329	2,151		1,329	2,151
Diluted weighted average number of shares	553,561	551,051		1,240,592	1,235,557

Enquiries:

Analysts/Investors Douglas Taylor, Deputy Finance Director David Nisbet, Corporate Affairs	Tel: [phone]
Media Patrick Handley, David Litterick Brunswick Group LLP	Tel: [phone]

NOTES TO EDITORS

All references to the share capital of Cairn India in this announcement are calculated on a fully diluted basis.

Cairn Energy PLC

Ø Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange. Following the IPO of Cairn India in January 2007, there are two separate arms to the business:

o  Cairn India limited ("Cairn India") is listed on the Bombay Stock Exchange and the National Stock 
Exchange of India and has interests in a total of 10 acreage blocks in India and Sri Lanka. Cairn currently retains approximately 22% interest in Cairn India (on an un-diluted basis).

o  Capricorn Oil Limited ("Capricorn"), a 100% subsidiary of Cairn, is focused on exploration. Capricorn 
has assets in Nepal, Greenland, Albania and Spain.

Ø "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India and Capricorn), as appropriate.

Ø "Cairn India" where referred to in the release means Cairn India Limited and/or its subsidiaries, as appropriate.

Ø Cairn historically focused its activities on the geographic region of South Asia, which has already resulted in a significant number of oil and gas discoveries.  In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn has now made more than 20 discoveries in Rajasthan block RJ-ON-90/1. Production from Rajasthan started in August 2009 and is expected to reach the approved plateau of 175,000 bopd in 2012.

Ø Cairn Energy PLC (including Capricorn) is run from Edinburgh with operational offices in Kathmandu, Nuuk and Spain.

Cairn in Greenland

Ø Cairn through its subsidiary, Capricorn, operates 11 blocks offshore Greenland.

Ø Cairn carried out extensive Environmental and Social Impact Assessments to identify how potential environmental and social impacts of its drilling programme can be avoided or mitigated.

Ø A total of 14 exploration wells have been drilled offshore Greenland to date, five of which were drilled in the 1970s, one in 2000, three in 2010 by Cairn Energy and five by Cairn Energy in 2011.

For further information on Cairn please see: www.cairnenergy.com

 

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