Cairn Energy returns to profit

LONDON: Cairn Energy, the UK oil explorer that sold shares in India's second-largest initial public offering, returned to profit in the first half of the year because of proceeds from the share sale.

Net income was $1.52 billion, or $10.66 a share, compared with a loss of $5.8 million, or 3.68 cents, a year earlier, Edinburgh, Scotland-based Cairn said in a statement on Tuesday.

Cairn rose the most in a month in London trading on September 7 when it announced the purchase of two smaller rivals with interests in Tunisia for a combined 36 million pounds ($72.7 million) as it switches back to exploration.

Cairn shares rose as much as 3.1 per cent today and traded up 2.9 per cent at 1,838 pence as of 0806 hours in London. The stock is 1.7 per cent this year, giving the company a market value of 2.4 billion pounds ($4.9 billion).

Last year, Cairn raised $1.98 billion from the public offering of shares in Cairn India Ltd to partly finance the development of its largest fields in Rajasthan.

Average net production in the six months was 22,486 barrels of oil equivalent a day, down 18 per cent from last year. Production from the Mangala, Bhagyam and Aishwariya fields in Rajasthan is expected to be 150,000 barrels of oil a day.

The company said its Capricorn unit made two bids in the Disko West licensing round in offshore Greenland, with the results due to be announced early next year.

Cairn's Capricorn subsidiary said last week it would buy Plectrum Petroleum Plc for 23.4 million pounds in cash.