Scottish operator Cairn Energy has continued its drive for profit with positive full year results for 2019.
The Edinburgh-headquartered firm reported a pre-tax profit increase last year, hitting £91 million, which is up from a £928m loss over the same period in 2018.
It also saw a revenue increase of £95m, from £314m in 2018 to £409m in 2019.
Cairn announced that its North Sea wildcat well Chimera had come up dry in October.
However, the firm said reserve additions were made in both Senegal and the North Sea and the Company encountered exploration success alongside Eni in Mexico.
Simon Thomson, chief executive of Cairn Energy said: “Cairn’s strong operational performance in 2019 was delivered through production and cash flow generation at the top end of guidance and the Group ended the year with an increased net cash position and undrawn debt facilities.
“A significant milestone was achieved in Senegal with a Final Investment Decision taken for the Sangomar development. Reserve additions were made in both Senegal and the North Sea and the Company encountered exploration success alongside Eni in Mexico.
“The sale of Cairn’s Norwegian business, combined with exits from exploration positions in Ireland and Nicaragua, demonstrate continued focus on capital allocation as the company seeks to generate further value for shareholders on a sustainable basis.”
Cairn confirmed that its 100,000 bpd Sangomar field, in Senegal, was on track for first oil in 2023.
The company said its plan for funding its share of costs were “well progressed” and that it expected to be able to meet its obligations without diluting its equity holding. Cairn said it was working on an expanded senior debt facility for the project.
In addition to the Phase 1 oil works, there are also discussions around the exploitation of gas in the field, which would go to meeting Senegal’s domestic needs.
Further West African plans are under way in Mauritania, where Cairn has exercised an option to take a stake in Total’s C7 licence. A possible well is planned for the second half of 2021.