Share Name Share Symbol Market Type Share ISIN Share Description
Cairn Energy Plc LSE:CNE London Ordinary Share GB00BN0SMB92 ORD 21/13P
  Price Change % Change Share Price Shares Traded Last Trade
  0.40 0.22% 179.20 563,106 12:54:04
Bid Price Offer Price High Price Low Price Open Price
179.10 179.30 181.60 177.70 180.20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 288.69 -85.87 -49.43 894
Last Trade Time Trade Type Trade Size Trade Price Currency
12:54:02 AT 331 179.20 GBX

Cairn Energy (CNE) Latest News (8)

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Date Time Title Posts
24/9/202109:04CAIRN - 2010 & BEYOND, GREENLAND, INDIA, etc5,689
18/8/202109:12CAIRN ENERGY981
06/5/202121:21Indian government makes a move to protect overseas assets-
11/4/201717:48L2 - Observations, comments and screenshots2
11/6/201510:32Cairn / West Africa Partner2

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Cairn Energy Daily Update: Cairn Energy Plc is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker CNE. The last closing price for Cairn Energy was 178.80p.
Cairn Energy Plc has a 4 week average price of 168.10p and a 12 week average price of 122p.
The 1 year high share price is 240p while the 1 year low share price is currently 122p.
There are currently 499,106,690 shares in issue and the average daily traded volume is 3,413,019 shares. The market capitalisation of Cairn Energy Plc is £896,894,721.93.
ashkv: Barclays 315p 12 month Target Price on Cairn - as of 6 August 2021 Update Carn Cash Holdings equates to 67.3p, Egyptian Assets 47.6p And Cairn is Zero Debt At 177.6p Market Cap is GBP 848.26 Million Market Cap GBP 848.26*1.39 = US$ 1179 million (GBPUSD = 1.39) Therefore not accounting for all other licenses, upside from sale of UK Offshore Assets- Mexico, Suriname etc if were to analyze only for litigation 177.6p - 67.3p Cash - 47.6p Egyptian Asset = 62.7p Remaining Component of Share Price Given Current Market Cap GBP 848.26*1.39 = US$ 1179 million (GBPUSD = 1.39) is equal to amount India has offered to settle for therefore approximately the Share Price in a sane market (big if!! :) ) should go up by at least 115p More likely share price should be higher as Cairn has gone backwards in price while Energy markets have been rallying :)
charggg: Frazboy - So you valued CNE at just 90p per share or there abouts without the award? 40p off 130p before the news? 90p is £450mn - CNE has cash of $400 mn and EGY assets valued at 60p, ignore the Mexico discovery, $100mn contingent from Senegal first oil etc. That's the strangest, simple sum of parts I've ever seen. Market obviously is not going to price the share price to full value - for the full value you will have to hold for the dividend. Even the yield a day before Senegal ex dividend date was 15% at cne obviously consolidation caused all non sense confusion.
charggg: Not the smartest cookie in the jar eh? If CNE chooses to take the Indian offer, the $1bn should be with CNE pretty much immediately because the new law amendment says the refund will take place on undertaking of litigation withdrawal. I.e. CNE just needs to promise it will withdraw the cases and money should be with CNE. Guessing that CNE will withdraw cases once the money is in the account although CNE needs to confirm if the amount is $1bn at current currency exchange rates or $1.2bn when they seized the holding. Tricky and good situation for cne - should we take $1bn now or try our luck for $1.5bn + via asset seizing in months years to come?All IMO dyor
charggg: Frazboy - I think it was the air India mid July filing deadline. With the current share price pressure it might play into hands of goi for a settlement. CNE can use cash or borrow £100mn and can easily buy back at least 50 million shares. Then pay it back from the award proceeds. Cne has no creditors to worry about so they should be aggressive in shareholder returns. Rdsb and bp took on debt to pay dividends why can't CNE take on miniscule debt to buy back shares at a low sp?
rationaleee: Past few weeks CNE share price has been dropping the most among mid caps even exceeding highly leveraged plays like enq Tlw. Does seems like there is a seller who wants out. And today the meeting results on the vote for the EGY acquisition is due. Let's hope the seller is flushed out today with the vote.All IMO
rationaleee: Agree xxn. But market refuses to price in CNE any positives from EGY acquisition. Surprisingly neither is the award priced in - apart from for the award rns day when share price was +45% on the day. There is +100% return sitting within the award itself which is a big margin of safety. Just hard to understand why market is so focused on EGY and discounting the award value so much. Unless there is a big seller - from the latest holdings RNS it's clear who the seller is. It's just maybe flushing them out before share price can recover? Hopefully the EGY acquisition vote meeting turns the share price in the right direction I.e Up. Re award - it might help market when it sees CNE finally recognizing the award on the balance sheet
ohisay: Not a bad summary from Gary Newman ..(FiveFreeShareTips.com) Cairn Energy (CNE) is a company that I have followed for many years, almost for as long as its ongoing saga relating to compensation from the Indian government but it is starting to look more likely that will actually finally be settled. This all dates back to 2007 when Cairn restructured and floated its Indian subsidiary whilst retaining 10% of the shares, which it was restricted from selling. Subsequently, Cairn India merged with Vedanta, and Cairn Energy received a 5% equity stake in Vedanta but in April 2017 the Indian Income Tax Department forced the sale of that and seized the £455 million proceeds from it, citing outstanding tax due from the deal in 2007 – although the tax law that it was trying to apply was only actually introduced in 2012! After several years of legal battles, an international tribunal in The Hague unanimously ruled last December in favour of Cairn, under the UK-India Bilateral Treaty, and awarded the company $1.2 billion in damages as well as interest and costs, which became payable at that time. Subsequently the Indian government appealed against the decision in March and that appeal is yet to be heard, but the consensus seems to be that the original ruling is unlikely to be overturned, although when it comes to court decisions you can never bank on anything. Since the ruling, Cairn has been looking into other ways to recover the money due under the arbitration award, after the refusal by India to pay up, or at the very least to make enough of a nuisance of itself that the government changes its mind and honours the award. The company had already filed a lawsuit in the US demanding that the federal court there forces Air India - controlled by the Indian government - to pay $1.26 billion, and the airline has until the middle of this month to challenge that or risk having its assets seized. This is all part of a strategy by Cairn to recover the money via India’s overseas assets, of which it has already identified around $70 billion worth that could potentially be offset against the $1.72 billion owed (the award plus interests and penalties). Things further escalated last week when a French court ordered the seizure of property in Paris, owned by the Indian government and valued at around €20 million, and Cairn is looking to force the sale and receive the proceeds from that. I suspect that this is all part of a ploy to force India into settling the dispute - possibly even with some sort of offer to honour the original award but maybe with reduced interest and penalty payments - rather than a strategy by Cairn to actually recoup the full amount in this way. Basically, showing India that it has the courts on its side and can potentially cause it a lot of problems – if Air India planes were to be seized for instance. India may try to ride this out until its appeal is heard, but given that it took part in the arbitration process for four years it seems unlikely that the award will be overturned just because India doesn’t like the outcome. So, I now see a better chance than ever before that Cairn will finally see this money and the whole saga will come to an end soon. Given that Cairn is currently valued at around £754 million, with a share price of 151p, receiving the compensation claim in full - or even doing a deal with India for a good proportion of it - would be highly significant for the company, and offers plenty of potential upside. Quite possibly it would result in a special dividend, similar to the one announced in December for 32p per share, and totalling around $250 million, from the sale of its assets in Senegal for $525 million (with a further $100 million possible dependent on production and prevailing oil prices). Since exiting India the company had been focused on the North Sea, where it has had success with its interests in the Catcher and Kracken fields, but in March it announced a change of direction, with the sale of both stakes and the purchase of producing fields in Egypt. The sale of both raised $460 million and was back-dated to January 1 2020, and given the uncapped contingent consideration that was part of that agreement up until 2025 - $75 million at $60 Brent, $125 million at $65/barrel - there should be significant amounts of cash to come from that in the future. At the same time, Cairn announced that it had entered into a joint venture with Cheiron to purchase the Shell Egypt onshore Western Desert portfolio of assets, for $646 million in total ($323 million net to Cairn), but also with additional considerations (costing Cairn up to $140 million), and this also has an effective economic date of January 1 2020. Those assets gave Cairn 113mmboe of 2P reserves and net production of 33,000-38,000boepd for 2021, with roughly two-thirds of that being gas. There is also significant further upside via the development of around 49mmboe of 2C resources, net to Cairn, and as at the end of 2020. The production sharing mechanism for these Egyptian assets is complicated and varies from block to block, including cost recovery mechanisms, as well as depending on production levels and prices, but it is at least in line with what you typically see in Egypt. It remains to be seen how well this change of focus works out for Cairn, but looking at the projections for production over the coming years, and the Capex required for these licence areas and to potentially exploit the 2C resources, there is enough to interest me from that alone and believe that the market is currently undervaluing Cairn. The current share price and seeming weakness compared to many of its peers could also potentially be due to Aegon Asset Management continuing to sell off its stake, as on June 1 there was a TR1 announcing that it had dropped from 3.89% to 2.93%, and so may well be reducing to zero (there is no requirement for any further disclosures now that it is below 3%). Given the producing assets that the company has, as well as upside potential from its exploration licences in various countries – including in Mexico (15% WI) where an exploration drill at Sayulita-1 and an appraisal of last years discovery at Saasken are planned, and operator ENI recently announced that it had received final approval for this drill to go ahead, targeting potentially 650 million barrels of oil in place. Elsewhere, in Suriname, it has 100% of Block 61 and will be carrying out 3D seismics later this year with a view to drilling in the future, given the other discoveries in the surrounding area and that previous seismics have identified multiple targets of interest on this licence area. On the basis of all of this - the production and potential exploration success, plus the likelihood of a successful defence of the arbitration award (if it even gets that far without India offering to do a deal) and finally recovering the money owed to the company - I have recently been buying shares, as I believe that it is too cheap at the current share price. There is of course some risk of the India award being reversed, and that would have a seriously detrimental impact on the share price (I have a guaranteed stop loss in place to limit my losses in that scenario), but I see that outcome as highly unlikely.
rationaleee: Hopefully CNE retains full 100% exposure to Suriname drill. CNE can fund easily and potential savings from the farm out might not be as much as giving up on the upside if the drill comes in.CNE seems to be looking to replicate Senegal discoveries in Suriname and Kosmos success in Mauritania... Although no CNE has not shared any CoS of these prospects apart from mentioning that these two are potentially transformational for CNE. CNE is an explorer at heart, don't think Egy production is something that might have attracted them solely. Oil exploration and discoveries has defined CNE. Maybe Suriname drill next year? CNE should get back on the exploration horse hopefully after closing another transaction and recovering award from IN in short rtm
rationaleee: Looks like it's $1-1.2bn that gov recovered. So if they choose to pay $1bn CNE will have counter offer. Don't think cne will accept $1bn although it's a massive boost with £1 per share (c.$700mn) return looking very possible for shareholders. CNE should choose to take the principal and get a deferred asset from India for the remaining amount. It won't be fair to CNE if they choose to pay after losing the case and then only the amount seized. The opportunity cost of that amount is big and I don't think CNE would let it slide. Big share price dislocation for CNE currently given a reasonable possibility of cash return of $1bn in the next 6-12 months? Imo
rationaleee: That uncertainty around timing of the award has been since the day of the award right? That's the reason why the share price hit 240p and fell back since the award. It seems the downgrade is more to justify the terrible share price performance since oil prices have rallied $10+ in the past few months while cne share price is down, since the terrible Egypt acquisition rns. Curious how many shareholders would vote in favor at next months gm. At least they should make some uk oil asset acquisition too. Market would have been fine if they kept C and K in NS imo along with this new entry.
Cairn Energy share price data is direct from the London Stock Exchange
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