Final Results - Year Ended 31 December 1999 - Pt 2

Cairn Energy PLC
8 March 2000


PART 2

CAIRN ENERGY PLC

PRELIMINARY RESULTS ANNOUNCEMENT


Consolidated Profit and Loss Account
For the year ended 31 December 1999

                                 Continuing
                                 operations           Total
                     Continuing  exceptional Total     1998
                     operations     items     1999 (Restated)
                          £'000     £'000    £'000    £'000
                                                                 
Turnover                                                         
Producing                74,611       -     74,611   41,040
Rig                       2,210       -      2,210       -
                      -------------------------------------
                         76,821       -     76,821   41,040
Cost of sales                                                    
Production costs        (24,435)      -    (24,435) (17,138)
Rig operating costs      (2,861       -     (2,861)     -
Depletion               (14,317)      -    (14,317) (12,212)
Decommissioning charge     (304)      -       (304)    (207)
Depreciation of rig      (3,139)      -     (3,139)     -
                      --------------------------------------                   
      

Gross profit             31,765       -     31,765   11,483
Write-down of oil
 and gas assets              -    (1,246)   (1,246) (47,529)
Write-down of rig            -    (2,291)   (2,291) (11,729)
Administrative expenses  (7,081)  (1,594)   (8,675) (10,633)
                      -------------------------------------

Operating profit/(loss)  24,684   (5,131)   19,553  (58,408)

Gain on disposal of
 listed investment           -     2,128     2,128      -
Provision against listed             
        investment           -      -        -      (11,651)  
                      --------------------------------------                   
                       
Profit/(loss) on
 ordinary activities     24,684   (3,003)   21,681  (70,059)
 before interest        
            
Interest receivable            
and similar income        1,932       -      1,932      823
                      
Interest payable and                
similar charges            (669)      -       (669)  (1,987)                   
                         
                      -------------------------------------                    
                        
Profit/(loss) on
ordinary         
activities before
taxation                 25,947   (3,003)   22,944  (71,223)          
                                                                 
Taxation on profit                                           
 on ordinary
 activities               
 - current              (2,532)       -     (2,532)  (1,388)          
 - deferred             (4,160)       -     (4,160)  (2,215)
                     ---------------------------------------   
                        (6,692)       -     (6,692)  (3,603)
  
Profit/(loss)
 for the year           19,255    (3,003)   16,252  (74,826)
                      --------------------------------------
Earnings/(loss) per                          9.66p  (44.00p)
ordinary share - basic                                         
                                                           
Earnings/(loss) per                                        
ordinary share - diluted                     9.63p  (44.00p) 
                        ------------------------------------
The  prior  year comparatives have been restated to reflect  the
changes  in  accounting policy arising out of the implementation
of  FRS12:  'Provisions, Contingent Liabilities  and  Contingent
Assets',    which   changes   the   accounting   treatment    of
decommissioning costs.

Group Statement of Total Recognised Gains and Losses
For the year ended 31 December 1999

                                                     1998
                                        1999   (Restated)
                                       £'000       £'000
                                                                 
Profit/(loss) for the year            16,252     (74,826)
                                                                 
Unrealised foreign exchange
 differences                           1,779      (2,682)
                                     --------------------                      
      
Total recognised gains and losses       
for the year                          18,031     (77,508)                      
                                
                                     -------------------

Prior year adjustment                  1,254            
                                    -------------------                        
     
Total gains and losses recognised                  
since last annual report              19,285   
                                    -------------------

Reconciliation of Movements in Shareholders' Funds
For the year ended 31 December 1999

                                                    1998
                                        1999  (Restated)
                                       £'000       £'000
                                                                 
Total recognised gains and losses     18,031     (77,508)
for the year
                                                                 
New shares issued in respect of        
employee share options                    84         253                       
                      
New shares issued in respect of the              
conversion of HSSH Warrants and            
Debentures                                -          510
Repurchase of shares                 (26,656)          -
                                     -------------------
Net deductions to shareholders'
   funds                              (8,541)    (76,745)
                                                                 
Opening shareholders' funds (after    
prior year adjustment)               257,559     334,304
                                     -------------------                       
      
Closing shareholders' funds          249,018     257,559
                                     -------------------

The  prior  year  adjustment reflects the change in accounting
policy  arising from the implementation of FRS12.  The  opening
shareholders' funds at 1 January 1999, prior to the adjustment,
were £256,305,000 (1998:  £333,544,000).

Balance Sheets
As at 31 December 1999
                                                        Company
                             Group       1998  Company     1998
                              1999  (Restated)   1999  (Restated)   
                             £'000    £'000     £'000     £'000   

Fixed assets                                                       
Exploration assets         130,041  112,922    59,028    26,642
Development/producing 
      assets               110,706  118,773    19,608    27,539
Other fixed assets          17,813   20,795     1,343     1,756
Investments                    685      -     126,857   145,059
                           ------------------------------------                
                          
                           259,245  252,490   206,836   200,996
Current assets                                                     
Debtors                     38,342   95,617    64,468   101,885
Investments                     -     1,729       -        -
Cash at bank                 8,517    5,073     7,337       627
                           ------------------------------------
                            46,859  102,419    71,805   102,512
                                             
Creditors:                                                         
amounts falling due within  42,247   80,705    41,672    72,031
one year                   ------------------------------------

Net current assets           4,612   21,714    30,133    30,481
                           ------------------------------------
Total assets less current          
liabilities                263,857  274,204   236,969   231,477                
             
                                                          
Provisions for liabilities             
and charges                  6,212    6,460       577      540                 
                 
Deferred taxation            8,627   10,185        -        -
                           -----------------------------------                 
                        
Net assets                 249,018  257,559   236,392  230,937
                           -----------------------------------
Capital and reserves-equity                                        
interests                             
Called-up share capital     15,060  17,054     15,060   17,054          
Share premium              182,439 182,366    182,439  182,366
Capital reserves - non              
distributable               50,120  48,115     26,658   24,653
Capital reserves -                    
distributable               41,537  68,193     41,537   68,193
Profit and loss account    (40,138)(58,169)   (29,302) (61,329)
                           ------------------------------------                
                        
Shareholders' funds        249,018 257,559    236,392  230,937
                           ------------------------------------              

N Lessels, Chairman
W B B Gammell, Chief Executive

7 March 2000

Group Statement of Cash Flows
For the year ended 31 December 1999

                                        1999        1998
                                       £'000       £'000
                                                                  
Net cash inflow from operating
  activities                          36,624       9,349
                                      ------------------                      
Returns on investments and servicing                            
of finance
Interest received                        925         916
Interest paid                           (250)     (1,303)
                                      -------------------
                                         675        (387)

Taxation                             (14,053)     (1,004)

Capital expenditure and financial                                  
investment
Purchase of exploration assets       (25,282)    (45,874)
Purchase of development/producing 
 assets                               (1,309)    (33,167)
Purchase of other fixed assets        (3,758)    (27,438)
(including Energy Explorer IV)
Purchase of own shares                  (802)         -
Sale of exploration assets               -         5,449
Sale of development/producing assets     -        12,046
Sale of other fixed assets               226         304
Sale of current asset investments      3,857           -
Cash receipts from Shell         (1)  52,763           -
                                     -------------------
                                      25,695     (88,680)
Equity dividends paid                    -            -
                                     -------------------                       
        
Net cash inflow/(outflow) before                           
use of liquid resources                               
and financing                         48,941     (80,722)                      
   

Management of liquid resources*                                    
Cash on short term deposit               -        28,568

Financing
Issue of shares                           84         763
Repurchase of shares                 (26,656)         -
Debt drawdowns                        18,070      36,915
Repayment of debt                    (36,995)       (521)
                                     --------------------
                                     (45,497)     37,157

Increase/(decrease) in cash
  in the year                          3,444     (14,007)
                                     -------------------

*  Short term deposits of less than one year are disclosed as 
   liquid resources

(1) During 1998, the Group sold part of its interests in
    Bangladesh to Shell for consideration of $65m, plus
    recovery of back costs. The proceeds were included
    within debtors at 31 December 1998.

Reconciliation of Operating Profit/(Loss) to Operating Cash
Flows

For the year ended 31 December 1999
                                               1999         1998
                                                      (Restated)
                                              £'000        £'000
                                                                   
Operating profit/(loss)                      19,553     (58,408)
                                                                   
Depletion and depreciation                   18,558      13,470
Decommissioning charge                          304         207
Amortisation of long term incentive plan        178           -
Exceptional write-down of oil and gas         1,246      47,529
assets
Exceptional write-down of rig                 2,291      11,729
Loss on sale of other fixed assets                -         196
Exceptional administrative expenses           1,594       1,933
Debtors movement                             (3,180)     (8,544)
Creditors movement                           (1,407)      1,709
Other provisions                               (547)        790
Gain on sale of other fixed assets             (137)          -
Foreign exchange differences                     30        (136)
                                           ---------------------
                                             38,483      10,475

Cash outflow on closure of Sydney office       (870)     (1,126)
Cash outflow on transfer of operatorship       (989)          -
and the Group restructuring                ----------------------

Net cash inflow from operating activities    36,624        9,349
                                           ----------------------
NOTES:

1.   No dividend has been declared (1998:  nil).
   
2.   The earnings per ordinary share is calculated on a profit
     of  £16,252,000 (1998:  loss of £74,826,000) on  a  weighted
     average of 168,273,016 (1998:  170,066,371) ordinary shares.
   
    The  diluted earnings per ordinary share is calculated on  a
    profit of £16,252,000 on 168,714,913 ordinary shares,  being
    the  basic  weighted average of 168,273,016 ordinary  shares
    and  the  dilutive  potential  ordinary  shares  of  441,897
    ordinary  shares  relating to share options.   There  is  no
    dilutive effect in 1998.
   
3.  The  above  financial  information  does  not  constitute
    statutory accounts as defined in Section 240 of the Companies
    Act 1985.  The comparative financial information is based on
    the  statutory accounts for the year ended 31 December  1998
    restated  for  FRS12.   Those accounts,  upon  which 
    the auditors issued  an  unqualified opinion,  have been 
    delivered to the Registrar of Companies. The statutory
    accounts for the financial year ended 31 December 1999
    will be delivered to the Registrar.
   
4.  The  Group's  external auditors, Ernst  and  Young,  have
    confirmed that they have reviewed this Preliminary
    Announcement and  that it is consistent with the
    audited accounts for the Group for the year ended
    31 December 1999.  The report of the auditors on
    those accounts was unqualified.
   
5.  Full accounts are due to be posted to shareholders on  30
    March 2000 and will be available at the Company's registered
    office, 50 Lothian Road, Edinburgh, EH3 9BY, from that date.
   
6.  The  Annual  General Meeting is due to  be  held  at  the
    Company's registered office on Tuesday, 2 May 2000, at 12 
    noon.