We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Capricorn Energy Plc | LSE:CNE | London | Ordinary Share | GB00BRJ7R218 | ORD 735/143P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.40 | 0.83% | 169.80 | 169.60 | 170.20 | 170.80 | 166.80 | 166.80 | 70,643 | 15:47:54 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 228.9M | -51M | -0.5383 | -3.17 | 161.82M |
From Apr 2019 to Apr 2024
TIDMCNE
RNS Number : 0144U
Cairn Energy PLC
30 March 2021
30 March 2021
CAIRN ENERGY PLC ("Cairn" or "the Company")
Report and Accounts and Notice of Annual General Meeting
The Company's annual report and accounts for the year ended 31 December 2020 (the "Report and Accounts") and a notice of annual general meeting (the "Notice") were posted to shareholders today. The Notice convenes the 2021 Annual General Meeting (the "AGM"). The AGM will be held at the Cairn Energy PLC Head Office at 50 Lothian Road, Edinburgh EH3 9BY at 12.00 noon on Tuesday 11 May 2021.
A copy of the Report and Accounts and Notice have also been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism . The Report and Accounts and Notice are also available on the Company's website at www.cairnenergy.com .
Defined terms used in this announcement shall, unless otherwise specifically defined herein, have the same meanings as in the Report and Accounts .
COVID-19
In light of the ongoing COVID-19 pandemic and the UK and Scottish legislation and government guidance currently in force as a consequence, there are significant restrictions on public gatherings and non-essential travel that are expected to affect the arrangements for, and attendance at, the AGM. In light of these restrictions, together with the uncertainty as to any additional and/or alternative restrictions or measures that may be introduced by the UK or Scottish governments, and in order to protect the health and wellbeing of our Shareholders, employees, advisers and of the general public, we are proposing to hold the AGM with the minimum attendance required to form a quorum. Shareholders will not be permitted to attend the AGM in person, but can be represented by the chair of the meeting acting as their proxy.
Two Shareholders in attendance shall constitute a quorum for the AGM, as set out in the Company's Articles of Association. The Company shall ensure that a quorum is present and that the two Shareholders will be the only persons in attendance, therefore abiding with the laws in place and allowing the business contained in the 2021 Notice of AGM to be conducted. As was the case last year, the AGM will be held purely to conduct the required formal business, however a presentation will be made available on the Company's website at www.cairnenergy.com/investors/shareholder-information/agm/ following the closure of the meeting. The voting results on the resolutions put to the AGM shall be announced to the market and uploaded onto the Company's website following the closure of the AGM.
The Company will continue to monitor the situation and, in particular, any changes to the applicable law or guidance in force as a consequence of the COVID-19 pandemic. In the unlikely event of a material change in circumstances that results in the lifting or relaxation of measures or restrictions relating to travel and public gatherings before the date of the AGM, the Company will consider if it is appropriate, safe and legally permissible to open up the AGM for attendance by Shareholders. If this is the case, an update will be given on the Company's website AGM page at www.cairnenergy.com/investors/shareholder-information/agm/ and by separate announcement through the regulatory news service of the London Stock Exchange.
Given the expectation that Shareholders will not be able to attend the meeting in person, Shareholders are strongly encouraged to ensure that their votes are counted at the AGM by appointing the chair of the AGM as their proxy and submitting their completed Form of Proxy as soon as possible and, in any event, so as to arrive at the offices of the Company's registrars, Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA, not later than 12.00 noon (BST) on Friday, 7 May 2021.
Shareholders may register their proxy appointment or voting directions electronically via the www.sharevote.co.uk website not later than 12.00 noon (BST) on Friday, 7 May 2021 (further information regarding the use of this facility is set out in the notes to the Notice). For Shareholders who hold their Ordinary Shares in CREST, they may appoint a proxy by completing and transmitting a CREST Proxy Instruction so as to be received by the Company's registrars, Equiniti, not later than 12.00 noon (BST) on Friday, 7 May 2021. We encourage Shareholders to submit their vote electronically were possible. If you do require a copy of the Form of Proxy, this can be downloaded on the Company website at www.cairnenergy.com/investors/shareholder-information/agm/, where you will also find instructions for completion of that Form. Further instructions on voting by proxy are set out in the Notice.
The Board remains committed to allowing Shareholders the opportunity to engage with the Board. If Shareholders have any questions for the Board in advance of the AGM, these can be sent by e-mail to IR.Mailbox@cairnenergy.com. The Board will endeavour to answer key themes of these questions on the Company's website as soon as practical.
Report and Accounts - Information required by Disclosure and Transparency Rule 6.3.5
The information set out below, which is extracted from the Report and Accounts, is included in this announcement for the sole purpose of complying with Disclosure and Transparency Rule 6.3.5 and the requirements it imposes on issuers as to how to make annual financial reports public. It should be read in conjunction with the Company's preliminary results announcement, released on 9 March 2021 (the "Preliminary Results Announcement"). This material is not a substitute for reading the full 2020 annual report and accounts. Page numbers and cross-references in the extracted information below refer to page numbers and cross-references in the Report and Accounts
Directors' responsibility statement
The following statement is extracted from page 124 of the Report and Accounts. This statement is repeated here solely for the purposes of complying with Disclosure and Transparency Rule 6.3.5. This statement relates to and is extracted from the Annual Report and Accounts. It is not connected to the extracted information presented in this announcement or in the Preliminary Results Announcement.
'Directors' Responsibility Statement
The Directors are responsible for preparing the Annual Report and Accounts, the Directors' Remuneration Report and the Financial Statements in accordance with applicable laws and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have prepared the Group and parent Company Financial Statements in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. Additionally, the Financial Conduct Authority's Disclosure Guidance and Transparency Rules require the Directors to prepare its Group Financial Statements in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union. Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group and Company for that period. In preparing these Financial Statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently; -- make judgements and accounting estimates that are reasonable and prudent;
-- state whether for the Group and Company, international accounting standards in conformity with the requirements of the Companies Act 2006 and, for the Group, international financial reporting standards adopted pursuant to Regulation (EC) No.1606/2002 as it applies in the European Union have been followed, subject to any material departures disclosed and explained in the Financial Statements; and
-- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the Financial Statements and the Directors' Remuneration Report comply with the Companies Act 2006 and, as regards the Group Financial Statements, Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Company and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the Company's website (www.cairnenergy.com). Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Following careful review and consideration of the Cairn Energy PLC Annual Report and Accounts 2020 (the 'Accounts'), the Directors consider that the Accounts, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's performance, business model and strategy.
Directors' Statement Pursuant to the Disclosure and Transparency Rules
Each of the directors, whose names and functions are listed in the Board of Directors section on pages 72 and 73, confirm that, to the best of their knowledge:
-- the Group Financial Statements, which have been prepared in accordance with IFRS as adopted by the EU, give a true and fair view of the assets, liabilities, financial position, and loss of the Group and loss of the Company; and
-- the Strategic Report section on pages 2 to 69 of this document includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.'
The names of the directors who have given this responsibility statement are:
Nicoletta Giadrossi (Non-Executive Chair)
Keith Lough (Non-Executive Director)
Peter Kallos (Non-Executive Director)
Alison Wood (Non-Executive Director)
Catherine Krajicek (Non-Executive Director)
Erik B. Daugbjerg (Non-Executive Director)
Simon Thomson (Chief Executive)
James Smith (Chief Financial Officer)
Principal risks and uncertainties
The following description of the principal risks and uncertainties is extracted from pages 46-51 of the Report and Accounts.
"Principal risks & uncertainties
The following pages provide a summary overview of the principal risks to t he G r o up at t he e nd of 2 0 2 0, t he p o t e n t i al i m p a c t s, t he m i t i g a t i on m e a s u r e s, t he r i sk a pp e t i te a nd t he K P Is or st r a t e g ic o b j e c t i v es t he r i s ks m ay i m p a c t .
EMERGING RISKS
W i t h i n t h e G r o u p ' s r i s k a s s e s s m e n t f r a m e w o r k , e m e r g i n g r i s k s a r e c o n s i d e r e d a s p a r t o f t h e i d e n t i f i c a t i o n p h a s e . These are risks that cannot yet be fully assessed, risks that are known but are not likely to have an impact for several years, or risks which are unknown but could have implications for the business going forward.
COVID-19 is an example of an emerging risk which was identified in Q4 2019 as a known potential risk which was challenging to fully a s s e ss. T he s c a le of t he g l o b al r e s p o n se to COVID-19 and the implications this has had on t he i n d u s t ry w as d iffi c u lt to p r e d i ct. In r e s p o n se to t he p a n d e m i c, t he Gr o up h as taken many steps throughout 2020 to ensure the safety of our staff and the continued d e l i v e ry of o ur b u s i n e s s-c r i t i c al a c t i v i t i es.
As the Group has moved to remote w o r k i ng in r e s p o n se to t he p a n d e m i c, new and evolving cyber threats was identified as an emerging risk to the Gr o u p. T he Gr o u p 's IT t e am c o n t i n ue to monitor the cyber security environment and implement mitigations as threats a re i d e n t ifi e d.
Hot Features
Premium
Maintain licence to operate
Principal risk: Lack of adherence to health, safety, environment and
security policies
Owner: Chief Executive
------------------------------------------------------------------------------------------------------
Risk appetite Low - The Group continuously strives to reduce risks that
could lead to an HSSE incident to as low as reasonably practicable.
----------------- -----------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
----------------- ----------------------------- -------------------------- ------------------------
Serious injury E ffectively managing This risk remained Achieve a number of
or death health, safety, security static in 2020. specified leading
Environmental and environmental risk The Group's lost indicators that support
impacts exposure is the priority time injury frequency Company policies and
Reputational for the Board, Executive (LTIF) for operated standards in relation
damage Committee and Management activity in 2020 to governance, people
Regulatory Team. was 0 per million and society.
penalties and HSE training is included hours worked. Our Achieve lagging HSSE
clean-up costs as part of all staff total recordable indicators derived
Physical impacts and contractor inductions. injury rate (TRIR) from IOGP targets.
of climate Detailed training on for 2020 was 0 per
change the Group's Corporate million hours worked.
Responsibility Management There were no recordable
System (CRMS) has been spills to the environment
provided to key stakeholders over the IOGP lowest
to ensure processes spill benchmark.
and procedures are embedded With ongoing operations
throughout the organisation in several countries
and all operations. in 2021, the Group
Process in place for will continue to
assessing an operator's work responsibly
overall operating and as part of our strategy
HSE capabilities, including to deliver value
undertaking audits to for all stakeholders.
determine the level
of oversight required.
Effective application
of CRMS in projects.
Crisis and emergency
response procedures
and equipment are maintained
and regularly tested
to ensure the Group
can respond to an emergency
quickly, safely and
effectively.
Third-party specialists
in place to assist with
security arrangements
and travel risk assessments.
Leading and lagging
indicators and targets
developed in line with
industry guidelines
and benchmarks.
Findings from 'Lessons
learned' reviews are
implemented from other
projects.
============================= ========================== ========================
Maintain licence to operate continued
--------------------------------------------------------------------------------------------------------------
Principal risk: Fraud, bribery and corruption
Owner: Chief Executive
--------------------------------------------------------------------------------------------------------------
Risk appetite Low - Cairn is committed to maintaining integrity and high
ethical standards in all the Group's business dealings. The
Group has no tolerance for conduct which may compromise its
reputation for integrity.
--------------------- ---------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
--------------------- ------------------------------- ---------------------------- ------------------------
Fines Business Code of Ethics This risk remained Achieve a number of
Criminal prosecution and bribery and corruption static in 2020. specified leading
Reputational policies and procedures. There were no reportable indicators that support
damage Due diligence process instances of fraud, Company policies and
and questionnaire developed bribery or corruption. standards in relation
for assessing potential The Group operates to governance, people
third parties. in countries deemed and society.
Annual training programme high risk for bribery
for all employees, contractors and corruption. A
and selected service compliance programme
providers. will be implemented
Financial procedures for each area of operation.
in place to mitigate
fraud.
=============================== ============================ ========================
Principal risk: Climate change policy and its impacts on energy transition
Owner: Chief Executive
------------------------------------------------------------------------------------------------------------------
Risk appetite Medium - The Group recognises global commitments to achieve
a transition to lower carbon sources of energy. In the near-term,
global demand for hydrocarbons continues to grow with hydrocarbons
expected to remain the principal source of energy for decades
to come. In the longer term, Cairn will take investment decisions
that ensures its assets remain competitive in an environment
where demand for oil may be lower than today.
Cairn's strategy is to play a responsible and competitive role
in the production of oil and gas within this transition. Cairn
acknowledges the contribution its activities have on carbon emissions,
and the Group continues to develop short, medium and long-term
actions to minimise and mitigate this contribution and address
global climate change policies and regulations.
----------------- -----------------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
----------------- ------------------------------- ------------------------------- -----------------------------
Providers Measuring and reporting This risk remained Complete Phase 1 of CCUS
of capital our GHG emissions in static in 2020. (carbon capture, utilisation,
limit exposure line with the Task Force There was continued and storage) application
to fossil on Climate-related Financial and increased attention and evaluation.
fuel projects Disclosures (TCFD). to climate change Further develop the
Increasing Promotion of efficient from a range of stakeholders framework,
costs energy use in activities in 2020. This attention in line with the UN SDGs,
Climate-related with business partners has led, and we expect for the social investment
policy and service providers. it to continue to plans across the Group,
changes Consideration of climate lead, to additional including quantifying
Reduced change in investment regulations designed the overall impact of
demand decisions. to reduce greenhouse the programme(s).
for oil Portfolio resilience gas (GHG) emissions. Communicate our climate
Stranded modelling based on the The Group is focused change performance and
assets International Energy on driving down emissions our processes for governance,
Reputational Agency Sustainable Development in our production, risk management and target
damage Scenario. in our other activities setting using the CDP,
Retaining Endorsement of Global and throughout our SASB and TCFD frameworks.
and attracting Gas Flare Reduction supply chain.
talent Partnership. Cairn has endorsed
Improved alignment with the World Bank global
UN SDGs. initiative to Zero
Active participation Routine Flaring by
in industry initiatives. 2030 as part of our
Participation in EU energy transition
Emissions Trading System. strategy in support
Implementation of mangrove of the UK Government
rehabilitation in Suriname and our own commitment
for coastline and community to net zero carbon
protection. emissions by 2050.
The Group invested
in the NECCUS (carbon
capture, utilisation
and storage) project
aiming to reduce carbon
emissions from industrial
sources in Scotland.
The Group conducted
a scenario analysis
to assess the viability
of Cairn's portfolio
under different scenarios
of future demand impacted
by action on climate
change. The results
indicated that existing
production and development
assets remain NPV
positive.
=============================== =============================== =============================
Deliver a sustainable business
------------------------------------------------------------------------------------------------------------------
Principal risk: Diminished access to debt markets
Owner: Chief Financial Officer
------------------------------------------------------------------------------------------------------------------
Risk appetite Low - The Group seeks to develop and implement a funding strategy
that allows a value generative plan to be executed and ensures
a minimum headroom cushion from existing sources of funding is
maintained.
----------------- -----------------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
----------------- ------------------------------- ------------------------------- -----------------------------
Work programme Disciplined allocation This risk decreased Demonstrate balance sheet
restricted of capital across portfolio. in 2020. strength reflected in
by reduced Continue to assess other The disposals of the three categories: meeting
capital forms of financing and Group's business in financial tests in line
availability pursue claim for restoration Norway, completed with funding strategy;
Loss of of value for Indian in February, and of portfolio management;
value investment. the Senegal assets, and recovery of Indian
Hedging programme to completed in December arbitration proceeds.
reduce exposure to commodity 2020, the near-term
price volatility. committed capital
programme is significantly
reduced.
Several financial
institutions and investors
have recently made
policy decisions to
exit oil and gas sector
investment. To date,
this has not affected
Cairn but if this
trend accelerates
there could be a future
impact.
=============================== =============================== =============================
Principal risk: Political and fiscal uncertainties
Owner: Chief Financial Officer
----------------------------------------------------------------------------------------------------------------------
Risk appetite Medium - The Group faces an uncertain economic and regulatory
environment in some countries of operation. The Group is willing
to invest in countries where political and/or fiscal risks
may occur provided such risks can be adequately managed to
minimise the impact where possible.
--------------------------- -----------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
--------------------------- ------------------------------ ------------------------------ -------------------------
Loss of value Operate to the highest This risk remained Demonstrate balance
Uncertain financial industry standards with static in 2020. sheet strength reflected
outcomes regulators and monitor Cairn continues to in three categories:
compliance with the source new opportunities meeting financial tests
Group's licence, Production globally and this in line with funding
Sharing Contract and can be in jurisdictions strategy; portfolio
taxation requirements. deemed at higher risk management; and recovery
External specialist of political or fiscal of Indian arbitration
advice sought on legal uncertainty. proceeds.
and tax issues as required. In 2020, the Group
Maintain positive acquired new operated
relationships licences in countries
with governments and with an increased
key stakeholders. risk profile. The
Ongoing monitoring of Group will strive
the political and regulatory for full compliance
environments in which with licence, Production
we operate. Sharing Contract and
Working responsibly taxation requirements
is an important factor across all assets.
in maintaining our access The Group has also
to funding. considered the potential
impacts from Brexit
and concluded that
Cairn will not be
materially affected.
The Group continues
to monitor the situation
closely.
============================== ============================== =========================
Deliver a sustainable business continued
Principal risk: Volatile oil and gas prices
Owner: Chief Financial Officer
--------------------------------------------------------------------------------------------------------------
Risk appetite Medium - Exposure to commodity prices is fundamental to
the Group's activities; however, the Group manages its investment
programme to ensure that a threshold economic return is delivered
and the business model is funded even in sustained downside
price scenarios.
-------------------- ----------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
-------------------- ------------------------------- ---------------------------- -------------------------
Reduction in Sensitivity analysis This risk increased Demonstrate balance
future cash conducted to assess in 2020. sheet strength reflected
flow robustness of Group The oil price fell in three categories:
Value impairment financial forecasts sharply in Q1 and meeting financial
of development for funding plan. Q2 2020 as a result tests in line with
projects Operators' cost initiatives of the OPEC price funding strategy;
JV partner delivering material war and suppressed portfolio management;
capital constraints cost reductions on development demand from the coronavirus and recovery of Indian
projects. pandemic, recovering arbitration proceeds.
Exploration projects somewhat over the
are ranked based on balance of 2020. Volatility
the probability of commercial is expected to continue
hydrocarbons and success as the coronavirus
case break-even oil pandemic continues
price. to develop.
Hedging programme commenced.
=============================== ============================ =========================
Principal risk: Failure to secure prompt and/or full payment of India
arbitration award
Owner: Chief Financial Officer
---------------------------------------------------------------------------------------------------------
Risk appetite Medium - The Group faces an uncertain macroeconomic and
regulatory environment in some countries of operation. The
Group is willing to invest in countries where political and/or
fiscal risks may occur provided such risks can be adequately
managed to minimise the impact where possible.
-------------- -----------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
-------------- ------------------------------- ----------------------------- -------------------------
Loss of value Arbitration proceedings This risk remained Demonstrate balance
under the UK-India Bilateral static in 2020. sheet strength reflected
Investment Treaty were Cairn announced on in three categories:
largely concluded in 23 December that the meeting financial
2018. The tribunal ruled tribunal established tests in line with
unanimously in Cairn's to rule on its claim funding strategy;
favour in December 2020. against the Government portfolio management;
Continued engagement of India has found and recovery of Indian
with the Indian Government. in Cairn's favour. arbitration proceeds.
Committed work programme Cairn's claim was
is fully funded from brought under the
existing sources of terms of the UK-India
funding, excluding proceeds Bilateral Investment
from the India claim, Treaty, the legal
principally Group cash seat of the tribunal
and committed debt facilities. was the Netherlands
and the proceedings
were under the registry
of the Permanent Court
of Arbitration.
The tribunal ruled
unanimously that India
had breached its obligations
to Cairn under the
UK-India Bilateral
Investment Treaty
and has awarded to
Cairn damages of US$1.2
billion plus interest
and costs, which now
becomes payable.
=============================== ============================= =========================
Deliver exploration success
Principal risk: Lack of exploration success
Owner: Director of Exploration
---------------------------------------------------------------------------------------------------------------
Risk appetite High - Exposure to exploration and appraisal failure is
inherent in accessing the significant upside potential of
exploration projects and this has been, and remains, a core
value driver for Cairn. The Group invests in data and exploits
the strong experience of Cairn's technical teams to mitigate
this risk.
------------------- ------------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
------------------- --------------------------------- --------------------------- --------------------------
Limited or Active programme for This risk decreased Mature prospects achieving
no value creation high-grading new areas in 2020. commercial thresholds
Failure of through licence rounds, In Q1 2020, an oil that can be considered
the balanced farm-ins and other transactions. discovery was confirmed for future exploration
portfolio business Portfolio of prospects on the non-operated drilling.
model and leads that offer Saasken-1 exploration Add new commercial
Negative market opportunities with a well (15% WI) in resources to replace
reaction balance of geological Block 10 in the Sureste reserves and grow
and technical risks. Basin. Preliminary value.
Highly competent team estimates by Operator,
applying a thorough Eni, indicate the
review process to prospects discovery may contain
and development opportunities, 200 to 300 million
and a team of geoscientists barrels of oil in
with a track record place.
of delivering exploration On Block 9, Cairn
success. completed its second
Exploration Leadership operated well in
Team in place to undertake Mexico in Q1 2020.
peer reviews and assurance. The exploration objectives
of the Bitol-1 (50%WI)
were found to be
dry and the well
was permanently plugged
and abandoned.
On Block 7 (30% WI)
the Ehecatl-1 well,
operated by Eni,
completed operations.
The well did not
find reservoired
hydrocarbons and
was permanently plugged
and abandoned.
The risk decreased
because of the reduction
in the near-term
committed drilling
programme.
================================= =========================== ==========================
Production performance
Principal risk: Underperformance on Kraken and Catcher assets
Owner: Chief Operating Officer
---------------------------------------------------------------------------------------------------------------
Risk appetite Low - Delivering operational excellence in all the Group's
activities is a strategic objective for the Group and the
Group works closely with all JV partners to mitigate the
risk and impact of any operational delay or underperformance.
Therefore, the Group has a low appetite for risks which may
impact on operating cash flow.
---------------------- ---------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
---------------------- ------------------------------ ---------------------------- -------------------------
Delay or reduction Work closely with operators This risk remained Convert Resources
in cash flow to deliver risk mitigation static in 2020. to Reserves.
Increased operational plans and project solutions Combined net oil Deliver net production
costs during ongoing commissioning. production averaged and operating costs
HSE incident Positive and regular 21,350 bopd. within guidance targets.
Reputational engagement with operators Kraken production
damage and partners to share outperformed original
knowledge, offer support expectations but
and exert influence. there were operational
issues on Catcher
which resulted in
periods of downtime
which curtailed production.
============================== ============================ =========================
production performance and deliver exploration success
Principal risk: Misalignments with JV operators
Owner: Chief Operating Officer
------------------------------------------------------------------------------------------------------------
Risk appetite Medium - The Group seeks to operate assets which align with
the Group's core areas of expertise, but recognises that
a balanced portfolio will also include non-operated ventures.
The Group accepts that there are risks associated with a
non-operator role and will seek to mitigate these risks by
working with partners of high integrity and experience and
maintaining close working relationships with all JV partners.
--------------------- -------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
--------------------- ----------------------------- ----------------------- -----------------------------
Cost/schedule Actively engage with This risk reduced Convert Resources
overruns all JV partners early in 2020. to Reserves.
Poor performance to establish good working Oil price volatility Deliver net production
of assets relationships. continues to have and operating costs
HSE performance Actively participate a financial impact within guidance targets.
Delay in first in operational and technical across the industry Conduct our operated
oil from development meetings to challenge, and the risk remains and non-operated exploration
projects apply influence and/or that the Group's and appraisal activities
Negative impact support partners to JV partners may not successfully, on time
on asset value establish a cohesive be able to fund work and on budget.
Ability to JV view. programme expenditures
effect change Application of the Group and/or reprioritise
towards lowering risk management processes projects. The sale
carbon footprint and non-operated ventures of the Group's Senegal
procedure. asset has reduced
Active engagement with this exposure.
supply chain providers Catcher, Kraken and
to monitor performance, several exploration
and delivery. projects are operated
by joint venture
partners.
The Group continues
to work closely with
a number of other
partners in the UK,
West Africa and Latin
America regions.
============================= ======================= =============================
new ventures
Principal risk: Failure to secure new venture opportunities
Owner: Director of Exploration
-----------------------------------------------------------------------------------------------------------
Risk appetite Medium - Building and maintaining a balanced portfolio of
current and future exploration, development and production
assets is core to the Group's strategy. New opportunities
must first meet the Group's strict investment criteria and
successfully securing them will be dependent on the prevailing
competitive environment.
----------------- ----------------------------------------------------------------------------------------
Impact Mitigation 2020 movement 2021 KPI objectives
----------------- ----------------------------- ----------------------------- --------------------------
Failure to Geoscience, new ventures This risk remained Mature prospects achieving
replenish the and commercial teams static in 2020. commercial thresholds
portfolio work closely to review In March 2020, Cairn that can be considered
Inability to and identify new portfolio entered into an asset for future exploration
replace reserves opportunities. exchange agreement drilling.
and sustain Experience and knowledge with Shell UK Limited
production throughout the organisation in which Cairn transferred
levels in recognising prospective a 50% WI in P2379
opportunities. in exchange for 50%
Risk assessments and WI of P2380. Each
due diligence process licence, in the vicinity
undertaken on all potential of the Nelson platform,
new country entries. contains a firm commitment
Development of discretionary to drill an exploration
capital allocation and well, with both wells
opportunity ranking planned to be drilled
system. in the period from
Portfolio is continually H2 2021 to H1 2022.
reviewed and high-graded In July 2020, in Côte
to enhance quality. d'Ivoire, Tullow indicated
that they intended
to withdraw from six
out of seven blocks
and remain in licence
C1-520 only. Notices
of withdrawal were
submitted to the Joint
Venture in September.
Cairn opened negotiations
with Tullow and subsequently
took operatorship
in blocks C1-301 and
C1-302.
============================= ============================= ==========================
Related party transactions
The following description of related party transactions is extracted from page 187 of the Report and Accounts:
"8.8 Related Party Transactions
The Company's subsidiaries are listed in note 8.2. The following table provides the Company's balances which are outstanding with subsidiary companies at the balance sheet date:
At At
31 December 31 December
2020 2019
US$m US$m
------------------------------------------------ ------------ ------------
Amounts payable to subsidiary undertakings (8.1) (86.9)
Amounts receivable from subsidiary undertakings - 1.8
================================================ ============ ============
(8.1) (85.1)
================================================ ============ ============
The amounts outstanding are unsecured, repayable on demand and will be settled in cash.
The following table provides the Company's transactions with subsidiary undertakings recorded in the loss for the year:
Year ended Year ended
31 December 31 December
2020 2019
US$m US$m
--------------------------------- ------------ ------------
Amounts invoiced to subsidiaries 13.7 10.4
Amounts invoiced by subsidiaries 56.8 10.6
================================= ============ ============
Directors' remuneration
The remuneration of the Directors of the Company is set out below. Further information about individual Directors' remuneration is provided in the audited section of the Directors' Remuneration Report on pages 94 to 121.
Year ended Year ended
31 December 31 December
2020 2019
US$m US$m
--------------------- ------------ ------------
Emoluments 3.4 3.3
Share-based payments 0.4 -
===================== ============ ============
3.8 3.3
===================== ============ ============
Pension contributions of US$0.2m (2019: US$0.2m) were made on behalf of Directors in 2020.
290,683 LTIP share awards to Directors vested during 2020 (2019: none). Share-based payments disclosed above represent the market value at the vesting date of these awards in that year.
Other transactions
During the year the Company did not make any purchases in the ordinary course of business from an entity under common control (2019: US$nil).
In December 2020 the Company received a dividend from its subsidiary, Capricorn Oil Limited, of US$484.6m, of which US$183.3m was settled in cash and US$301.3m by offset against previous borrowings.
The Company waived a loan of US$138.7m due from Capricorn Senegal (Holding) Limited in December 2020."
Directors' emoluments and remuneration of key management personnel
The following description of directors' emoluments and remuneration of key management personnel is extracted from page 166 of the Report and Accounts:
"(c) Directors' emoluments and remuneration of key management personnel
Details of each Director's remuneration, pension entitlements, share options and awards pursuant to the LTIP are set out in the Directors' Remuneration Report on pages 94 to 121. Directors' remuneration, their pension entitlements and any share awards vested during the year are provided in aggregate in note 8.8.
Remuneration of key management personnel
The remuneration of the Directors of the Company and of the members of the management and corporate teams who are the key management personnel of the Group is set out below in aggregate.
Year ended Year ended
31 December 31 December
2020 2019
US$m US$m
----------------------------- ------------ ------------
Short-term employee benefits 6.4 6.7
Termination benefits 0.2 -
Post-employment benefits 0.3 0.4
Share-based payments 2.9 3.2
============================= ============ ============
9.8 10.3
============================= ============ ============
In addition, employer's national insurance contributions for key management personnel in respect of short-term employee benefits were US$0.9m (2019: US$0.9m).
Share-based payments shown above represent the cost to the Group of key management personnel's participation in the Company's share schemes, measured under IFRS 2.
During 2020, 613,791 shares awarded to key management personnel vested under the LTIP (2019: none)."
Forward looking statements
This announcement contains or may contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn's expectations with regard thereto or any change in circumstances or events after the date hereof.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
ACSEALDEDSFFEFA
(END) Dow Jones Newswires
March 30, 2021 11:19 ET (15:19 GMT)
1 Year Capricorn Energy Chart |
1 Month Capricorn Energy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
